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Volume 535, June 1 – June 2, 1942
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Volume 535, June 1 – June 2, 1942
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Henry Morgenthau, Jr. Papers
Diaries of Henry Morgenthau, Jr.
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DIARY
Book 535
June 1 and 2, 1942
- A -
Book Page
Aircraft War Production Council, Incorporated
Purpose and functions explained - 6/2/42
535
260
(See also Book 537, page 279)
Became issuing agent for War Bonds as result of
Abbot Mills' efforts (see also Book 542, page 300) -
6/25/42: See Book 542, page 315
a) Mills-HMJr conversation: Book 542, page 316
Alaska
See Deferments, Military
Allison Engineering Company - Indianapolis, Indiana
See Financing, Government: war Savings Bonds
Appointments and Resignations
Odegard, Peter H.: Appointed at $22.22 per day - 6/2/42.
138
Welch, Roy D.:
Appointment discussed at 9:30 meeting - 6/2/42
122
Appointment - 6/2/42
134
- B -
Business Conditions
Haas memorandum on situation, week ending May 30, 1942 -
6/1/42
78
- C -
China
Economic report by Adler from Chungking - - 6/1/42
112
- D -
Deferments, Military
Discussion at 9:30 meeting - 6/2/42
126
a) White considers HMJr's policy incorrect
1) White memorandum - 6/2/42
140
b) See HMJr-Gaston-Thompson conversation after
conference with White - 6/25/42: Book 543, page 3
1) Due, Parks, and Melcher discussed
2) Alaska: Minaker, Gatz, and Overman discussed
c) McCarty, Milburn, Jr. (War Savings Staff): See
Book 544, page 8
1) "Washington News" article, No. 1: Book 544, page 24
2) HMJr-McCarty conversation: "Thompson sent draft
deferment blank to Board": Book 544, page 64
3) Conference; present: HMJr, Graves, Kuhn, Gaston,
Thompson, Schwarz, McCarty, Mrs. Klotz, Miss Cullen,
and Miss Austin: Book 544, page 66
a) Strayer, Martha ("News")-HMJr conversation:
Book 544, page 85
b) Strayer article - 6/30/42: Book 544, page 282
4) Summary of case - 7/1/42: Book 545, pages 1 and 9
5) Letter to Local Board, No. 14, New York City: Book 545, P. 7
6) Gaston-McCarty conversation: Book 545, page 16
7) McCarty's letter to Draft Board: Book 545, page 34
8) McCarty's note of appreciation to HMJr - 7/3/42:
Book 546, page 87
Regraded Unclassified
- D - (Continued)
Book Page
Deferments, Military (Continued)
Secretary announces he alone will pass on cases in
future; no Acting Secretary to act in his absence;
list attached - 6/30/42: See Book 544, page 284
Due, John F.
See Deferments, Military
- È -
Ecuador
See Latin America
Exports
To Russia, Free China, Burma, and other blocked
countries, during 10-day period ending May 20, 1942 -
6/2/42
535
305
- 7 -
Financing, Government
Bankers ask Treasury for outline on future financing
80 that they may be as helpful as possible -
6/2/42
159
Sproul transmits report of special subcommittee on
financing program - 6/2/42
164
War Savings Bonds:
See also Aircraft War Production Council, Incorporated
See
If
United Kingdom
Likert-Ruml (see also Book 523) study on bond-buying
habits of country since price ceilings went into
effect discussed by HMJr and MacLeish - 6/1/42
17,20
a) Actual report - Office of Facts and Figures -
6/2/42
222
1) Haas summary
219
b) Office of Facts and Figures report on
preliminary results of poll concerning War
Savings Stamps and their redeemability:
Book 536, page 109; Book 538, page 170
c) Macy, R. H., reports on current customer
activity. - 6/3/42: Book 536, page 140
d) Conference; present: HMJr, Haas, Kuhn, Stewart,
Currie, Ruml, Likert, and Hackman - 6/4/42:
Book 536, page 226
e) Conference; present: HMJr, Likert, Bell, Kuhn,
Heas, Odegard, Stewart, Warren, Murphy, Daggit,
MacLeod, and Chapman - 6/18/42: Book 540, page 193
1) Proposals for study of purchasing power in
a community: Book 540, page 208
Allison Engineering Company - Indianapolis, Indiana:
Delay in awarding Treasury flag because of union
election discussed in Kuhn memorandum - 6/1/42.
34
Regraded Unclassified
- F - - (Continued)
Book Page
Financing, Government (Continued)
War Savings Bonds (Continued):
Payroll Savings Plan:
Reimbursement of cost-plus-a-fixed-fee contracts
for expenses incident to purchase by employees of
bonds - War Department directive - 6/1/42
535
36
Operation in shipbuilding, aircraft, and railroad
industries - 6/1/42
67
a) HMJr considers very poor showing
Music: Welch (Roy D.) memorandum - "Suggested Projects
for Using Music in Treasury Program" - 6/1/42
44
(See also Book 538, page 134)
High Schools (Junior and Senior): Gaer memorandum on
messages from Government and military leaders to -
6/1/42
47
"The Minute Man" news letter - - 6/1/42.
56
Progress report - 6/1/42
57
Sales, May 1942 - 6/1/42
72
a) Copies sent to FDR, Wallace, etc. - 6/2/42
243
(For responses see Book 536, pages 105 and 319)
Foreign Funds Control
Switzerland: New York agencies of Swiss Bank Corporation,
Swiss American Corporation, and Credit Suisse -
examination of - Foley memorandum - 6/2/42
301
- G -
Gaer, Joseph
See Financing, Government: War Savings Bonds
Gatz, Peter
See Deferments, Military: Alaska
Gold
Purchase Agreements - White report - 6/2/42
312
- I -
Inflation
See also Speeches by HMJr
For Likert-Ruml studies on spending habits since price
ceilings were established, see Financing, Government:
War Savings Bonds
- J -
Japan
See Treasury Employees
- L -
Book Page
Latin America
Ecuador: Revaluation of currency - 5/2/42
535
341
Lend-Lease
Operating report, week ending May 30, 1942 - Mack
memorandum - 6/2/42
313
United Kingdom: Vesting order sales - 6/2/42
316-321
Likert, Dr.
See Financing, Government: War Savings Bonds
- M -
Mack, Clifton E. (Director of Procurement)
See Procurement Division
McCarty, Milburn, Jr.
See Deferments, Military
Melcher, Daniel
See Deferments, Military
Military Reports
British operations - 6/1-2/42
114,344
Kamarck summaries June 1-2, 1942
116,346
Mills, Abbot, Jr.
See Aircraft War Production Council, Incorporated
See also Book 542, page 300
Minaker, Cecil
See Deferments, Military: Alaska
"Minute Man, The"
See Financing, Government: War Savings Bonds
Molotov, Foreign Minister
See U.S.S.R.
Music
See Financing, Government: War Savings Bonds
- 0 -
Odegard, Peter H.
See Appointments and Resignations
Office of Facts and Figures
See Financing, Government: War Savings Bonds
Overman, Wesley
See Deferments, Military: Alaska
- P -
Parks, David A.
See Deferments, Military
Philippine Islands
See Treasury Employees
Procurement Division
Mack told to insist upon appointment with HMJr in
emergency - 6/2/42
118
- R -
Book Page
Radio (Frequency Modulated) Network
See Secret Service
Revenue Revision
See Speeches by HMJrt Inflation
$25,000 Salary Limitation: FDR's plan talked over by
9:30 group - 6/2/42
535
130
(See also Book 538, page 88)
Charitable organization engaged in business: HMJr
and Paul discuss Treasury point of view on - 6/2/42..
170
Roosevelt, Franklin D.
See Secret Service
Ruml, Beardsley
See Financing, Government: War Savings Bonds
- S -
Schools, Junior and Senior High
See Financing, Government: War Savings Bonds
Scotland
See United Kingdom
Secret Service
Frequency Modulated Radio network - establishment
of reported - 6/1/42
73
FDR - protection of at Hyde Park estate - Secret
Service memorandum - 6/1/42
76
Sproul, Allan
See Financing, Government
Stabilization Agreements
Status of - White report - 6/2/42
312
Switzerland
See Foreign Funds Control
- T -
Tanks, American
See U.S.S.R.
Taxation
See Speeches by HMJr: Inflation
Treasury Employees
Japan and Philippine Islands: Exchange of official
personnel discussed in Thompson memorandum - 6/1/42..
94
$25,000 Salary Limitation
See Revenue Revision
- U - -
U.S.S.R.
American tanks - Russian comments on: Kamarck memorandum -
6/1/42
110
Molotov, Foreign Minister: Litvinoff asks HMJr to lunch
to meet - 6/2/42
145
- U -
Book Page
United Kingdom
See also Book 523
British Voluntary Savings Campaign - Casaday report -
6/1/42
535
95
Scotch Voluntary Savings Campaign - Casaday report -
6/2/42
326
a) Report . - 6/5/42 (discontinued thereafter):
See Book 537, page 191
- W -
War Savings Bonds
See Financing, Government
Welch, Roy D.
See Appointments and Resignations
If Financing, Government: War Savings Bonds
1st Draft 6/1/12
DRAFT OF SECRETARY MORGENTHAU'S BROADCAST, WEDNESDAY JUNE 3.
This is the first of 8. series of nationwide broadcasts
by leaders of the Government to follow up the President's
seven-point economic program of April 27th.
Five weeks have gone by since President Roosevelt
outlined a national economic policy for fighting the
rising cost of living. You will remember that he called
for heavier taxation, for fixing prices and rents, for
stabilizing wages and farm prices, for putting more
billions into War Bonds, for rationing scarce commodities,
and finally, for checking instalment buying and paying
off debts and mortgages. Those were the President's
marching orders for the battle against inflation, the
battle on the home front which is part and parcel of the
great war in which we are engaged.
The President warned us that this battle would
involve rigid self-denial for all of us. I should like
- 2 -
2
to repeat tonight just a few words of what he said. "We
cannot fight this war," he said, "we cannot exert our
maximum effort on a spend-as-usual basis. All of us are
used to spending money for things we want but which are
not absolutely essential. We will all have to forego
that spending. We cannot have all we want if our soldiers
and sailors are to have all they need."
In the weeks since then the American people have
shown a truly wonderful willingness to carry out the
President's program. I doubt whether & finer response
would have come from the American people of Washington's
time, or Lincoln's, or in any of the heroic periods of
our history. There has come into every agency of the
Government a flood of letters, resolutions and practical
expressions of support, all pledging the people's readiness
-A
- 3 -
-3 -
to do whatever might be needed. But I wonder whether
we know, even now, that the rising cost of living is an
enemy just as insidious and just as cruel as the enemies
we are fighting abroad. And I wonder whether we know,
even now, just what each of us must do individually to
keep the cost of living down.
Price-fixing and rationing have been begun by
Executive Order, but they can do only a part of the job.
This, after all, is a Government that operates by consent
and cooperation. The President's program requires more
than & mere acceptance on the part of the people. It
can be carried through to success only if there is active
and constant cooperation from each and every one of us.
Boiled down to its essentials, the President's
program is a call for self-restraint -- not just by a
A
- 4 -
4
few of us, but by all of us; not just occasionally,
but every day as long as the war may last. Our war
industries need all the materials and all the labor they
can get. Our fighting men and our allies in all parts
of the world need those materials to win the war. If
we spend our money extravagantly, foolishly or even
normally to satisfy our own wants, we handicap our war
production program, and at the same time we push the
cost of living upward, with ruinous consequences to our
war effort and to our economic future.
The
I sometimes wish that there could be & patriotic
ny American should extend into
conscience ^ inside every American pocket or wallet or
handbag. If that conscience could speak it would ask
you these questions every time you were about to spend
your money. It would ask you "Do you really need what
A
Regraded Unclassified
5
- 5 -
you are going to buy? Can't you do without it? Why not
wait with buying it until after the war? Why not put
your money at your country's service now?"
I am in dead earnest when I say that any man or
woman who chooses this time to go on a buying spree is
committing an act of sabotage against our war effort.
Any man or woman who flaunts new possessions or new
elothes or new gadgets at this time is doing & greedy
and unpatriotic thing. The patriotic thing to do, and
the smart thing as well, is to make old clothes last
longer, to eat simpler meals, to patch up old household
appliances instead of buying new ones, and to do every-
thing else that is possible to cut down on personal
spending. If there is any one place where the battle
A
6
- 6 -
against the rising cost of living can be won, it is
right in your pocket, your wallet or your handbag.
We at the Treasury have a rather special interest
in the American pocket, as you all know. It is our job
to finance this greatest and costliest of all wars, a
war that is already costing 130 million dollars every
day. It is also our job to finance the war in such a
way that it will not bring skyrocketing prices and all
the other evils of inflation in its train. To accomplish
these purposes we have two chief instruments at our
disposal: the first, taxation, and the second, the sale
of War Bonds and Stamps. Each of them is a vitally
important part of the President's seven-point program,
and unless each of them is successful the seven-point
program as a whole cannot possibly succeed.
A
7
- 7 -
The Treasury has already recommended to Congress
new taxes that will yield eight billion seven hundred
million dollars of additional revenue in the fiscal
year that ends in June of 1943. That is a colossal sum;
yet, as I told the Ways and Means Committee of the House
of Representatives, which is charged with the duty of
writing the new tax bill, this amount is the very least
that we can afford to ask of the American people at this
critical time.
In order to have taxes paid in accordance with the
ability to pay, we have recommended sharply increased
rates on corporations and on individuals in the higher
income levels. In order to spread the privilege of
taxpaying as widely as possible, we have recommended
- 8 -
8
the taxation of
million individuals with smaller
incomes who have never paid direct taxes before. In
order to make this huge program as fair as possible, we
have urged Congress to abolish a number of special
privileges by which a comparatively few wealthy tax-
payers have been able in past years to escape their
just share of the burden.
In order to be sure that we are taking the profit
out of war, we have recommended a tax rate of 94 cents
on every dollar of excess profit beyond a reasonable
rate of return. It is a loathesome thing to enrich
onesself at a time of national sacrifice and danger,
and the American people are determined that there shall
be none of it in this war. In addition to recommending
higher excess profits taxes, I served notice upon
American corporations only the other day that we would
D-A
Regraded Unclassified
9
- 9 -
permit no trickery and chicanery to distort tax returns
80 as to reduce a company's profits and thus to reduce
its tax liability.
I have been shocked, to put it mildly, at evidence
that companies profiting from war contracts are distributing
extravagant amounts in salaries, bonuses and other corporate
expenses so that they might escape paying full and fair
taxes on those profits to the Government. One company,
which makes an important airplane part, is owned by one
man who hired himself as its sales representative and
paid himself $1,656,000 in 1941. Another company, which
makes a device important to aviation, has its patent
protected by the United States Government, yet it boosted
its royalty rate on that patent from ten to fifteen percent
while our country was preparing for war. As & result, the
Regraded Unclassified
- 10 -
10
royalties paid to the company jumped from $87,000 in
1939 to $1,179,000 in 1941, and the two heads of the
corporation were able to increase their salaries from
twelve and fifteen thousand dollars in 1939 to seventy-
two and ninety thousand dollars in 1941. I mention these
cases to you tonight to show you that We are watching
the tax returns of every company engaged in war production,
that we are in a position to expose and prevent any
cheating on tax returns, and that we are determined to
make such companies pay what they really owe.
The Ways and Means Committee is now hard at work
writing a new tax bill. It is not for me to comment on
the details of what they are about to recommend. I should
like to say only this: that whoever seeks to whittle
down the amount of the new taxes is utterly mistaking
11
- 11 -
the temper of the American people. Let it not be said
of the new tax program that it was too little and too
late. The people of this country have shown in a thousand
ways that they are not in 8. mood for half measures, either
financial or military. They will be disappointed in their
leaders only if those leaders fail to ask them for the
very maximum that can be achieved, in the field of taxation
as in every other phase of the war effort.
The same willingness has been shown by millions of
Americans in the past year, and especially in the past
few months, in the buying of War Bonds and Stamps. As
the President said, we are relying on this kind of voluntary
investment to cover & large part of the cost of the war
and to play & vitally important role in the fight to keep
the cost of living down.
12
- 12 -
I am very happy that the national quota of $600,000,000
for the month of May was exceeded and that our total sales
for the month reached $
This was a fine
accomplishment, made possible by the efforts of an army
of devoted volunteer workers throughout the country and
by millions of patriotic men, women and children who put
their dollars to work for victory in this way. Even more
encouraging than the total amount sold was the fact that
more than two-thirds of the total sales came from the "little
bonds," the Series E Bonds which are bought to a large
extent out of current earnings.
But we shall have to do much better in June and in
the following months. The quota for June has been fixed
at $800 million, and in July and every month thereafter
we expect a billion dollars. I am not fond of prophesying,
- 13 -
13
but I know that we can reach a billion a month, and
that we will reach it, if everyone pute into War Bonds
the money that would otherwise be spent for non essential
things.
Every day I get encouraging reports of the progress
of payroll savings plans under which our workers are
setting aside a part of their pay every pay day to help
win the war. This month the Government workers in Washington
and throughout the country will make a special drive to set
aside at least ten percent of their pay regularly, and thus
to set an example for the country as a whole. If everyone
who gets a regular income will cut down on personal spending
and put at least ten percent of his earnings into War Bonds.
It will be a big step toward financing the war and it will
be a decisive victory in our fight against the rising cost
of living.
A
14
- 14 -
It will mean much more than that. It will mean
that we are building the kind of future we want for
ourselves and our children. A great deal has been
said and written in recent weeks about the kind of political
and economic system we want after this terrible war is over.
But let me remind you that no Government or group of
governments can decide the shape of the post-war world
by writing a constitution or waving a magic wand.
We can do a great deal to shape our future now.
Our actions now will to some extent determine the kind
of world we shall have after the war. Whatever we do
now to assure economic stability in the post-war years
will be worth all the speeches, all the resolutions, all
the ambitious paper plans in which the post-war world is
being outlined for us.
D-A
15
- 15 -
I feel strongly that every War Bond bought today is
a brick in the foundation of the free and democratic world
order that we are fighting to achieve. Millions in this
country today are quietly establishing a reserve of spending
power for themselves in the years after the war, and in
that way they are guarding against the terrors of unemploy-
ment and want and fear.
There is nothing dramatic in saving your money, bit
by bit, to buy War Bonds; there is nothing dramatic, for
that matter, in any of the President's seven-point program.
There are no medals in this war for self-denial, no matter
how much courage or sacrifice it may involve. Yet it will
be & tremendously dramatic thing if the common sense and
patriotism of the American people can bring them through
this war without the horrors of inflation. It will be an
inspiring thing if the patriotic effort of the people them-
A
16
- 16 -
selves can finance the people's victory. We have a
great opportunity, right now. We are going to rise
to that opportunity. In the President's words, "We can,
we will, we must."
D-A
17
June 1, 1942
3:20 p.m.
HMJr:
Hello.
Operator: Mr. MacLeish.
HMJr:
Hello.
Archibald
MacLeish:
Hello, Henry.
HMJr:
How are you?
M:
Fine, thank you.
HMJr:
Archie, you most likely know that your Dr. Likert
1s doing some work for us.
M:
Yeah.
HMJr:
And I just don't know what the exact set-up 18,
but I've been asking him to do two things. One,
to get the reaction of why people do or do not
buy bonds
M:
Uh huh.
HMJr:
and then more recently to find out what their
spending habits are.
M:
Uh huh.
HMJr:
Now, I'm very anxious that he go ahead with that,
because I've also got Beardsley Ruml working on
it, you see.
M:
Uh huh.
HMJr:
Hello.
M:
Yes.
HMJr:
And Ruml has found for me that - I don't want to
advertise this thing yet until I get a picture
from the whole country - but since the price
ceilings went in, there's been a sharp drop in
buying, you see.
18
- 2 -
M:
Yeah.
HMJr:
Now, I asked last week for Likert to do this
thing and to get it to me by the middle of the
week, and I wondered, because if - and I've
mentioned it to the President and he's tre-
mendously interested - because everybody's
taken it perfectly for granted that with the
so-called gap of seventeen billion dollars,
people are going to spend it, you see. Hello.
M:
Yes.
HMJr:
And if they're not going to spend it, the quicker
we know it the better. And I've got Ruml coming
down for lunch at one, and I've asked Likert
M:
Yeah.
HMJr:
and I wondered if you agreed that it was
important enough to find out what they are, whether
you could simply say, well, you're glad that he's
doing this work and to give me a little priority
over something else that he might be doing.
M:
Yeah. Well, let me talk to his boss and find out
what the schedules are and 80 forth, and we'll do
anything we possibly can, Henry; and I'll call you
back as soon as I know anything, or leave word
with your secretary.
HMJr:
No, I'd like to talk to you myself, because I'm
really quite excited about it; because everything
we're doing is - depends upon learning the middle
of one week what the people's buying habits were
the previous week
M:
Yeah.
HMJr:
and not waiting for Frances Perkins to get
out a report six months old.
M:
Yeah. All right. Well, I'll get word back to
you personally then just as soon as I can talk
to Keith.
Regraded Unclassified
19
- 3 -
HMJr:
And if I should not work directly with Likert,
would you let me know? I've been working directly
with him.
M:
Uh huh. I'll work the whole thing out, Henry, and
call you back.
HMJr:
And I would appreciate it.
M:
Fine. Thank you.
CC - Dr. Haas
Mr. Kuhn
20
June 1, 1942
4:42 p.m.
HMJr:
Hello.
Operator: Mr. MacLeish.
HMJr:
All right.
Operator: Go ahead.
HMJr:
Hello.
Archibald
MacLeish:
Hello, Henry.
HMJr:
Yes, Archie.
M:
On the subject of our conversation
HMJr:
Please.
M:
I think we can assure you that we can get
done through Likert and by other means the things
that you want done.
HMJr:
Good.
M:
We would be a little happier if the requests could
come around through headquarters here, 80 that
we could dispose of our various facilities much
more usefully, and thus be more helpful to you,
too.
HMJr:
You mean to you?
M:
Yes. If they'd come to me, or I will see that
they're routed properly if they come to me.
HMJr:
Well, we cleared Likert in the first place, I
think.
M:
Yeah. Yeah, that was all done, but Keith Kane,
who is the director of that bureau, thinks that
it would facilitate his work if the general
21
- 2 -
requests could come directly to his bureau, and
if they come to my office, I'll see that they
go to the right place.
HMJr:
Well, I was delighted, because I - that's one
of the - that's why I called you.
M:
Yeah. Well, that's fine, Henry; and also, I want
to add one other word.
HMJr:
Yeah.
M:
We will have prepared tomorrow a plan for a
continual reporting on the whole broad economic
front, which we think 1s going to be extremely
useful to you and to other people on your front
in the Government.
HMJr:
Good.
M:
All right, Henry.
HMJr:
I'm making that talk for you Wednesday night.
M:
Yes. You're very kind. I appreciate that a lot.
I think that's terribly important to get done.
HMJr:
Well, I hope it will be good.
M:
Well, I'm sure it will.
HMJr:
All right.
M:
Thank you, Henry.
HMJr:
Thank you.
22
June 1, 1942
4:53 p.m.
HMJr:
Hello.
Operator:
Colonel Harrison.
HMJr:
Hello. Hello.
Colonel
Harrison:
Mr. Secretary, this is Colonel Harrison.
HMJr:
Colonel, I'm calling up to say thank you to you
for getting us Joe Louis.
H:
Oh, well, that's all right, sir. I'm glad we
could do it.
HMJr:
Well, it was just - there were about twenty
thousand people, of which ninety-seven per cent
were Negroes, and he just brought the place down.
H:
Well, I'm glad to hear that.
HMJr:
And it was a great, great success, and I wanted
to let you know how much I appreciate all the
trouble you went to.
H:
Well, thank you 80 much, sir.
HMJr:
Thank you.
H:
Good-bye, sir.
HMJr:
Good-bye.
23
Supreme Court of the United States
Washington, D.C.
CHAMBERS OF
June 1, 1942
TICE FELIX FRANKFURTER
Dear Henry:
Isn't it about time you and I saw one another
again? So let's lunch together either Thursday or
Friday of this week, either here or there, whichever
place, in your opinion, affords the better grub. I
have had enough of high thinking and low living.
Ever yours,
Hon. Henry Morgenthau, Jr.
24
June 1, 1942.
Dear Merrison:
Thank you very much for sending - the picture
from the Deaver paper. I as glad to have the elipping
and appreciate year thought.
Needless to say, I also approciate what you my
of both the boys. Irea allowing for a father's proja-
dise, I too think they are "pretty evell. sille west
dewn to Key Yest recently to spend a few days with Dob.
Beary west off very cheerfully and se far, - to be
enjoying Army life.
with best wishes to all of you from both of w,
Sincerely,
(Signed) Henry
File n.m.c.
Mr. Nerrisen Shaffeth,
Cin mail
Equitable Building,
Dearer, Colorado.
GRF/dee
Regraded Unclassified
25
1's
MORRISON SHAFROTH
EQUITABLE BUILDING
DENVER, COLORADO
May 25 42
Dear Henry -
that you would
be interested in the
inclosed form yesterday
news. D am sur
Ellie well
I think it is fine
any enlisting as a
mwate. I think
Bob S pretty swell too.
11sh Le were with Jacks
Heet. Best to all the
family
mmore
ecretary Morgenthau
JOHN LEWIS FACES
ids His Son Good-by
QUIZ BY UNION
OVER ROCHE LOAN
By EDWIN A. LAHEY
Chicago Daily News Labor Writer
Special Dispatch to Tie Rocky Mountain News
WASHINGTON, May 23.-Whatever else John L.
Lewis does Monday when he calls the executive board of
the United Mine Workers into session here he is expected
to give the members his side of the debt controversy with
the CIO. Lewis claims the (10 awes the miners $1,675,000.
Since he made the claim some months ago he has been
withholding the per capita tax of the miners to the C10.
There was speculation in labor circles here today,
whether any of the few members of the miners' executive
board who are still friendly with Philip Murray, in defiance
of Lewis, will demand of
the miners' chief an ac-
counting of union funds
tallying between $500.000
and $600,000 which have
been poured into the Rocky
Mountain Fuel Co. of Den-
ver, of which Miss Joseph-
ine Roche, well-known lib-
eral industrialist, is presi-
dent.
From official records ant
other sources it was learned
here that the miners
money (for which member
of the executive board any
legally liable) was siphoned
into the distressed coal cor-
poration of Miss Roche be
means of a dummy corpora-
Miss Josephine Roche
GOES IN AS PRIVATE-Henry Morgenthau III. son of the secretary of the treasury,
tion called Lewmurken. Inc.
says "so long" to his dad as he leaves New York for induction into the army as a
Lewmurken, Inc., was incorporated a few years ago
private, Secretary Morgenthau experienced the same emotions as thousands of
fathers when they see their sons off to the war. -Rocky Mountain News-Acme Telephoto.
(Continued on Page 6)
Don't Let Your War Hopes Run Wild!
-Story on Page 2
Regraded Unclassified
nume
wis Faces Union Questioning
Miss Roche 27
$500,000 Roche Loan
Silent on
Lewis Loan
(Continued from Page 1)
Miss Josephine Roche, president
John L. Lewis' idea for getting passes into the stock-
of the Rocky Mountain Fuel Co.,
ders' meetings of the great corporations where labor
declined in Denver last night to
ders could attack the labor policies of the corporations
comment on dispatches from
Washington concerning funds as-
ore a public sounding board.
sertedly advanced to her company
The name of the dummy corporation was taken from
by the United Mine Workers of
first syllables of the last names of John L. Lewis,
America.
lip Murray and Thomas Kennedy, secretary-treasurer
Miss Roche, long prominent in
he UMW.
political, industrial and labor at-
fairs both of Colorado and the
The UMW publishes a report of receipts and dis-
natiton for many years, returned
ements for its members. But does not publish a bal-
some time ago to Denver from
sheet of assets and liabilities, and money advanced to
Washington to devote most of her
time to administration of the coal
Roche's coal corporation is covered up as far as mem-
company, which she has headed,
of the Miners Union are concerned, under unexplained
except for a three-year Interval,
arsements to Lewmurken, Inc.
since 1929.
Lewmurken, Inc., then advanced the money to the
She had served as an assistant
y Mountain Fuel Co. where it was used for working
to Secretary Morgenthau for sev-
eral years. She also served as
al, the purchase of new machinery and to pay the
president of the National Consum-
interest of the corporation and prevent foreclosure
ers League, as director of the For-
be bondholders,
eign Language Information Service
The original advance to the coal corporation by Lewis
and has held numerous other posts
for $100,000. A few years ago, the corporation sought
in national organizations.
In 1934 Miss Roche sought nom-
in from the RFC to pay off Lewis and refinance its
ination as candidate for the gov-
led indebtedness of three million dollars and was
ernorship of Colorado but was de-
ed down.
feated by Edwin C, Johnson in the
This caused a one-day publicity scandal. Since that
Democratic primary.
Lewis has continued to siphon funds of the miners
the coal corporation through Lewmurken, Inc. The
Deputy D. A. Shoots
now exceeds $500,000.
Self Instead of Target
Observers here pointed out that the membership of
Robert Kingsley, deputy district
union is entitled to demand of Lewis an accounting
attorney, suffered a gunshot wound
e money he has furnished the coal corporation, to de-
in his left wrist yesterday while
target shooting near Parker, Colo.
an estimate from him on their chances of getting the
Mr. Kingsley was steadying the
by back and to demand further information about the
barret of a .22-caliber pistol on
rity upon which the loans were secured.
his wrist and the gun slipped as
There apparently is no record, either in conventions or
he fired. The wound was not re-
leetings of the executive board, of authorization to
garded as serious. Mr. Kingsley
* for these transactions.
was treated at Presbyterian Hos-
pital.
Regraded Unclassified
Farm
28
OFFICE OF CIVILIAN DEFENSE
JUN 1 1942
WASHINGTON, D. C
MAY 28 1942
MA
Honorable Henry Morgenthau, Jr.
Secretary of the Treasury
The Treasury Department
Washington, D. C.
Dear Mr. Secretary:
At a discussion meeting held on Induction ceremonies, Rallies, Special
Days, and Town Meetings, we asked the Assistant Regional Directors in
charge of Civilian Mobilization to report on what their local communities
were doing.
I reported the Beacon incident as an example of lack of community organi-
zation and cooperation. Mrs. Oswald Lord of Region II was deeply disturbed
at this report, in view of the activity which is taking place throughout
New York State.
Two members of the field staff of Mrs. Pennock, Director of Civilian
Mobilization of the New York State War Council, have been working with
the General Staff at the Selective Service Board of New York State as
to where and when groups of men are leaving (after their 14 days leave).
This field staff has been helping and guiding local defense councils in
planning induction ceremonies.
From a telephone conversation Mrs. Lord had with Albany, she had learned
that Beacon was included in plans which were going forward. Apparently
there was some confusion about the date of the departure of the boys from
Beacon--and which day of departure to celebrate. As you know, Beacon is
not an induction center. Of the 128 selectees who left on May 21 for
camp or for their examination, 18 of them were rejected and sent back.
There was some feeling in the community, I am told, that it might have
been embarrassing to the boys to hold a celebration on their departure
in view of the fact that some of them would inevitably return with a
sense of anti-climex. A good many communities have been concerned about
this. The new 14-day provision will make it possible to conduct a program
after the boys have been examined. Up to this time, it has been difficult
to do anything outside the induction centers where the boys were actually
on their way to camp.
In your own state of New York, however, & good deal has been done to pay
proper respect to departing boys. Before long I believe the recurrence of
such a scene as you witnessed in Beacon will be unusual anywhere in the
state,
Regraded Unclassified
29
Honorable Henry Morgenthau, Jr.
- 2 -
I have written to General Hershey asking if it would be possible for
the Selective Service System to give notice of the time of departure of
boys to the State Defense Councils, or better still, to have local
boards give this information to local defense councils.
The idea of the town meetings for war--or cracker barrel sessions on
the war as they seem to be termed in some sections--seems to be
catching on. They take a variety of forms as wide as the variety of
possibilities in patriotic community expression. I am enclosing a
report from the New York State Council on such meetings in Up-State
New York in which I knew you would be interested.
Sincerely yours,
Jonathan Daniels, Dains Assistant
Director
In Charge of Civilian Mobilization
Enclosure
Regraded Unclassified
COPY
30
SECTION FOR CITIZEN MORALE
99 Washington Avenue
Albany, New York
May 27, 1942
PROGRAM FOR THE DEPARTURE OF THE SOLDIERS FROM INDUCTION CENTERS
(The following report is prepared by Mr. Herring in
Mrs. Hurlburt's absence. On Mrs. Hurlburt's return
from a state meeting of the heads of the induction units,
she will furnish a more complete report of the organization
of the program.)
Mrs. Edward G. Hurlburt of our staff conferred at
length with the head of the Special Services of the Army for the
Second Corps area on Governor's Island concerning the development of
programs in induction centers in upstate New York in connection with
the departure of the selectees for camp. The Second Corps Area officials
were very much concerned about the absence of any ceremonial on these
occasions. Representatives were sent from Governor's Island to
confer with the local army heads in charge of induction centers.
Mrs. Hurlburt undertook to present the need to officials of War
Councils in these induction centers, including Albany, Syracuse,
Utica, Rochester, Buffalo, and Binghamton.
The first attempt was made in Albany and proved to be
successful. Mrs. Hurlburt conferred with the Mayor and other interested
officials. The Mayor referred the matter to Mrs. Fitzgerald, Chairman
of Volunteer Participation. Mrs. Hurlburt then communicated with 8.
representative of the American Legion. The final upshot of the matter
was that a number of public citizens threw themselves wholeheartedly into
the work, and departure programs were put on in Albany from the 13th to
the 16th of May inclusive.
WOKO offered the hospitality of the station auditorium. The
services of bands were donated. The program included some very
spirited singing and a combination of ceremonial and entertainment
features at the radio station. An address was delivered by the chief
of the induction unit. The boys marched to the depot with music and
departed in excellent spirits. The human item was that the boys leaned out
of the car windows shouting "So long, Maj" and were otherwise heard
to say that Albany was the best town they had struck on route. The
serious element in the program was not overlooked. It may be that
experience will suggest a greater emphasis on one or another aspect of
these occasions. There was no doubt about the ceremony filling 8. real
need. The towns folk were generous with cigarettes and cigars and & great
deal of spontaneity attended the program.
Prior to this effort, the only observance of any sort in the
state had been developed by the induction unit at Syracuse as a result of
the feeling of the officer in charge that the boys were given a very
bleak farewell. This Syracuse attempt was carried out successfully and
Regraded Unclassified
COPY
30
SECTION FOR CITIZEN MORALE
99 Washington Avenue
Albany, New York
May 27, 1942
PROGRAM FOR THE DEPARTURE OF THE SOLDIERS FROM INDUCTION CENTERS
(The following report is prepared by Mr. Herring in
Mrs. Hurlburt's absence. On Mrs. Hurlburt's return
from a state meeting of the heads of the induction units,
she will furnish a more complete report of the organization
of the program.)
Mrs. Edward G. Hurlburt of our staff conferred at
length with the head of the Special Services of the Army for the
Second Corps area on Governor's Island concerning the development of
programs in induction centers in upstate New York in connection with
the departure of the selectees for camp. The Second Corps Area officials
were very much concerned about the absence of any ceremonial on these
occasions. Representatives were sent from Governor's Island to
confer with the local army heads in charge of induction centers.
Mrs. Hurlburt undertook to present the need to officials of War
Councils in these induction centers, including Albany, Syracuse,
Utica, Rochester, Buffalo, and Binghamton.
The first attempt was made in Albany and proved to be
successful. Mrs. Hurlburt conferred with the Mayor and other interested
officials. The Mayor referred the matter to Mrs. Fitzgerald, Chairman
of Volunteer Participation. Mrs. Hurlburt then communicated with a
representative of the American Legion. The final upshot of the matter
was that a number of public citizens threw themselves wholeheartedly into
the work, and departure programs were put on in Albany from the 13th to
the 16th of May inclusive.
WOKO offered the hospitality of the station auditorium. The
services of bands were donated. The program included some very
spirited singing and a combination of ceremonial and entertainment
features at the radio station. An address was delivered by the chief
of the induction unit. The boys marched to the depot with music and
departed in excellent spirits. The human item was that the boys leaned out
of the car windows shouting "So long, Maj" and were otherwise heard
to say that Albany was the best town they had struck on route. The
serious element in the program was not overlooked. It may be that
experience will suggest a greater emphasis on one or another aspect of
these occasions. There was no doubt about the ceremony filling a real
need. The towns folk were generous with cigarettes and cigars and a great
deal of spontaneity attended the program.
Prior to this effort, the only observance of any sort in the
state had been developed by the induction unit at Syracuse as a result of
the feeling of the officer in charge that the boys were given a very
bleak farewell. This Syracuse attempt was carried out successfully and
Regraded Unclassified
COPY
31
- 2 -
probably was responsible for a part of the army's keen interest in
seeing that the idea was further developed. Mrs. Hurlburt had
subsequently been in touch with the War Council and induction heads
of the other induction centers and it now seems certain that we
shall have a complete up-state coverage.
So far as the interest of the Section for Citizen
Morale is concerned, this is one phase of our whole attempt to
maintain close relationship between the communities and the
men in the armed services. a task which we believe to be very
important in the building of morale both in the community and at
the front. One of the projects we are promoting is the sending
of letters, news clippings and information about various home
interests, war production, and the like, to men at the front. Community
groups such as service clubs, nationality societies, etc., are
encouraged to develop this as a group project. Not only will the
departure ceremonials and the sending of letters and news clippings
maintain the closeness of ties with the home community but it
affords an opportunity for the exchange of ideas, thereby assisting
both the men in the armed services and the people at home to gain
a more complete understanding of the war.
The Section for Citizen Morale undertook to assist in this
work partly because there seemed to be no other agency that had
undertaken the task. The Section has not attempted to function
directly in any of these programs but has served rather as an agent
for stimulating the communities to develop their own activities.
The new fourteen day provision by which men will have
an opportunity to return to their communities after final
acceptance will make it possible to develop programs in a larger
number of communities. Up to this time, it has been unwise to
arrange any farewells in the communities which are not induction
centers because some thirty odd per dent of the men are subsequently
rejected and feel embarrassment in returning to their communities
after departure eeremonies have been held.
77118A
MA YAM SAQI
Regraded Unclassified
32
5
WE 25 119 GR COLLEOT NT
Y
1942 JUN 1 AM 9 05
TOWD BEACON NY MAY 30 42
E
HEROLD GRAVES DELIVER MONDAY JUNE 1 OFFICE SECY TREASURY
(MRS KLOTZ)
I AM DISAPPOINTED TO LEARN THAT MR HOFLICH'S REPORT ON CANADA
HAS NOT BEEN CIRCULATED GENERALLY AMONGST THE HEADS OF THE
VARIOUS DIVISIONS OF YOUR STAFF I WANT TO DRAW YOUR particular
ATTENTION TO THE INTERVIEW WITH MR TURNBULL OF THE MONTREAL
VICTORY LOAN CAMPAIGN WHO SAYS QUOTE HE POINTED OUT THAT THE
GOAL OF ALL PUBLICITY IS TO CLOSE THE SALE AT THE TIME IN THE
RI
MINDS OF THE SPECTATORS THE ONE IMPORTANT QUESTION WITH RESPECT
E
TO ALLPUBLICITY IS DOES IT SELL BONDS UNQUOTE
WITH THIS IN MIND I DEFINITELY WANT A SHORT SPEECH TO SELL
S
BONDS AT EACH MEETING OF ENGLISH AVIATORS COPY OF THIS TELEGRAM
TO PETER ODEGARD FERDINAND KUHN AND MRS KLOTZ
HENRY MORGENTHAU JR
823A
E
Regraded Unclassified
33
TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION
DATE
TO
Secretary Morgenthau
Attention Mrs. Klots
FROM
Robert W. Coyne
June 1, 1942
In accordance with our conversation of yesterday, Major
Benjamin Name has been invited to a conference with you tomorrow
morning.
34
TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION
DATE June 1, 1942.
TO
Secretary's files
FROM Ferdinand Kuhn, Jr.
Mr. Reuther of the C.I.O. telephoned the Secretary
on the evening of May 29th to ask that we postpone the
awarding of the Treasury flag to the Allison Engineer
Company of Indianapolis. Mr. Reuther explained that
there would be an election among the employees between
the C.I.O. union and the company union on June second,
and said that our awarding of the flag on May 30th
probably would tilt the scales in favor of the company
union.
The Secretary asked me to investigate, and said
that he would be glad to have the flag coremony post-
poned if it could be done without making the postponement
too obvious or conspicuous. I asked Mr. Coyne of our
War Savings Staff to call Mr. Pulliam, our State Administrator
for Indiana, but not to tell him the reason for our inquiry.
Mr. Coyne later reported to me that arrangements for
a public ceremony had been made, that advertising had
appeared in the newspapers and that a radio hookup had been
arranged for the morning of May 30th. Accordingly, he did
not ask Mr. Pulliam for a postponement. I then reported
this to the Secretary, who agreed that it was better to let
the flag ceremony take place as arranged.
7.k.
Regraded Unclassified
TO:
Mrs. Klotz 35
D
The Sery. wanted
This HarDipt. directive
for his files.
DwB
b/4
Office of the Under Secretary
6/1/436
supplement I
Subject: Reimbursement of cost-plus-a-fixed-fee
contractors for expenses incident to the
purchase by employees of War Savings Bonds
under pay-roll allotment plan.
1. In furtherance of the campaign of the Government to obtain a
widespread distribution of War Savings Bonds cost-plus-a-fixed-
fee contractors are arranging in accordance with the written
authorization of their employees to make pay-roll allotments
to be applied to the purchase of War Savings Bonds and to deliver
bonds to employees when subscriptions are fully paid. In this
connection the Comptroller General in B-23888, April 23, 1942,
has approved the procedure outlined in the memorandum of the
Fiscal Division released on April 24, 1942 as meeting the re-
quirements of his office.
2. Incident to the completion of the employee's subscription it
may be found desirable in the interest of the war effort to ar-
range with such contractors to inscribe the bonds and to make
delivery directly to the individual employee. In such cases
the contractor, subject to the approval of the contracting of-
ficer, may make the arrangements necessary to accomplish the
inscription and delivery of the bonds in the most practicable
manner.
3. Cost-plus-a-fixed-fee contractors will be reimbursed for the
necessary expense involved in carrying out the procedures out-
lined in the memorandum of the Fiscal Division dated April 24th
and in the foregoing to the extent that they are connected with
the performance of the contract.
By command of Lieutenant General Somervell:
(Sgd)
Brig. General A. H. Carter
Director, Fiscal Division
37
TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION
DATE June 1, 1942
TO
Secretary Morgenthau
FROM
Ferdinand Kuhn, Jr.
Here are the names of the men the British are
sending for our tour.
Squadron Leader John S. Nettleton, V.C.
Sergeant Huntly, D.F.M., wireless operator and air gunner.
Both these men took part in the raid on the Diesel
engine factory at Augsburg.
Pilot officer Taylor, D.F.C.
Flight Sergeant Riddell, D.F.M., wireless operator and
air gunner.
These men took part in the raids on Lubeck and Rostock.
Wing Commander Louden, D.F.C.
Flight Lieutenant McColpin, D.F.C.
These men are fighter pilots.
Lieutenant Boyd of the Royal Naval Volunteer Reserve.
Chief Engine Room Artificer Howard.
These men fought in the big Commando raid on St. Nazaire.
Lieutenant Hall of the Lancashire Fusiliers.
Sergeant Herbert of the Commando forces.
These men fought in the Commando raid on Vaagso, Norway.
It is planned to have this group arrive in Montreal
June 6th, bringing photographs and career stories which can
be given to the press on the morning of their arrival in
New York June 8th. The British do not want the names
announced until then.
J.K.
Squarem Leader Treature v.c.7
agenting
segt. Huntly, A.7.m.
univer operate air gunner -
Pirt officer Taylor. D.F.C. - Lutick-Rostick
Hight Sugt. Riddell. D.F.M- Rostock
uniless of - air Gunner
uring Comm Louden D.F.C.
Hight Lieu mcColpin, D.F.C.
Fighter pilot.
Lieut. Bo yet. R.N.V.R.- -
Chief Enginerium Howard
}
St nazaire commando nail
Luit Hall -
hancastine Fusiness
Vaaqo Raid on naway
Sergt - Herbert- - conamando
Bunging photos - career stories.
39
June 1, 1942.
The Secretary of the Treasury announces that a
small group of officers of the Royal Air Force, Commando
units and other British forces will come to this country
shortly at the invitation of the Treasury Department,
and will visit a number of American cities together with
& similar group from our own Army, Navy and Coast Guard.
The tour has been made possible by the cooperation
of the British Air Ministry, the United States Army Air
Corps and the Navy Department.
Each of the men assigned to take part in this tour
has distinguished himself in actual combat with the
enemy. It is intended to have the combined group appear
at patriotic rallies at which the men can tell briefly
of their own experiences. The rallies will also promote
the sale of War Bonds and Stamps.
Mr. Spyros Skouras, president of Twentieth Century
Fox, Inc., is arranging the meetings throughout the
country at the request of Secretary Morgenthau. He will
be assisted by civic officials and will have the coopera-
tion of War Bond leaders in the various cities.
The names of those making the tour and the list of
cities which they will visit will be announced later.
-o0o-
39
June 1, 1942.
The Secretary of the Treasury announces that a
small group of officers of the Royal Air Force, Commando
units and other British forces will come to this country
shortly at the invitation of the Treasury Department,
and will visit a number of American cities together with
a similar group from our own Army, Navy and Coast Guard.
The tour has been made possible by the cooperation
of the British Air Ministry, the United States Army Air
Corps and the Navy Department.
Each of the men assigned to take part in this tour
has distinguished himself in actual combat with the
enemy. It is intended to have the combined group appear
at patriotic rallies at which the men can tell briefly
of their own experiences. The rallies will also promote
the sale of War Bonds and Stamps.
Mr. Spyros Skouras, president of Twentieth Century
Fox, Inc., is arranging the meetings throughout the
country at the request of Secretary Morgenthau. He will
be assisted by civic officials and will have the coopera-
tion of War Bond leaders in the various cities.
The names of those making the tour and the list of
cities which they will visit will be announced later.
-o0o-
Regraded Unclassified
40
June 1, 1942.
Dear Frank:
You got us all in hot water last week by printing and
releasing circulars announcing that Joe Louis would appear
in Sunday's War Bond Rally in Detroit, before you had any
assurance that Louis could or would appear. It caused us all
considerable embarrassment.
I was obliged to appeal personally to the War Department
to arrange special permission for Louis's appearance. In
addition, a good deal of extra time was put in by the staff
here that would not have been necessary had - had proper
notice.
Let's avoid this kind of situation in the future. Your
idea was fine, but NO cannot handle even good ideas on such
a basis.
With all good wishes.
Sincerely yours,
(Signed) 1. Morgenthaw. not
Mr. Frank N. Isbey, Chairman,
War Savings Staff,
354 Buhl Building,
Detroit, Michigan.
PHO/epw
cc.n.m.c.
Copies to Thompson
41
TREASURY DEPARTMENT
Rec Duffus of mens 5/29
INTER OFFICE COMMUNICATION
DATE June 1, 1942.
TO
Secretary Morgenthau
FROM Mr. Kuhn
if
Here are the leaflets which were scattered from
the balcony at the Chicago Negro Rally.
7.1C.
42
Wake Up Negro America!
"Winning Democracy For the Negro Is Winning the
War For Democracy"
Stand Upon Your Feet and Mobilize! Organize!
and Fight for
EQUAL RIGHTS
EQUAL OPPORTUNITY
IN OUR COUNTRY
We Demand The Right To
FIGHT
SERVE AND
IN ALL BRANCHES AND DEPARTMENTS
WORK
of the Army - Navy - Air Corps - U.S. Marines - Government - Defense Industry - as:
Officers In All Ranks - Technicians In All Ranks - Skilled - Semi-Skilled and Unskilled
Workers In All Ranks.
We demand equal opportunity for training to become officers and skilled workers.
We demand representation on all policy-making committees, boards and
commissions of the government.
50,000 Negroes March
STORM THE COLISEUM
1513 South Wabash Avenue
FRIDAY EVENING JUNE 26
TO CONDEMN AND DENOUNCE
1. Mobbing, Shooting, and Killing of Our Negro Boys in Uncle Sam's Uniform.
2. Detroit Housing Riot Against Negroes.
3. Jim-Crow Policy of the Navy - Army - Air Corps - U.S. Marine.
4. Insult of the Red Cross in Segregating Negro Blood.
5. Lynching at Sikeston, Mo.
Back and Support the Fair Employment Practice Committee with Unified-Informed
and Militant Public Opinion.
Fight For The Right To Live-Work and Be Free
SPONSORED BY
CITY - WIDE COMMITTEE
INITIATED BY
MARCH ON WASHINGTON COMMITTEE
Headquarters: Y.W.C.A., 4559 South Parkway. Telephone Atlantic 1434.
Regraded Unclassified
15
AKE UP, NEGRO AMERICA!!
Winning Democracy for the Negro Is Winning the
War for Democracy" CH1, DEFENDER
n'd Upon Your Feet and Mobilize! Organize! and Fight in an All-Out and
Demonstration of Power, Courage, Will, Pride of Race and Patriotism for
UAL RIGHTS--EQUAL OPPORTUNITY--RACIAL EQUALITY
IN OUR COUNTRY
We Demand the Right to
50,000 NEGROES
GHT, SERVE and WORK
All Branches and Departments
MARCH
the Army - Navy - Air Corps - U.S.
arines - Government - Defense Industry
Storm the Coliseum
as: Officers In All Ranks - Technicians
All Ranks - Skilled - Semi-Skilled and
Friday Evening, June 26
Unskilled Workers in All Ranks
TO CONDEMN AND DENOUNCE
e Demand Equal Opportunity for Training to Become
1. Mobbing, Shooting, and Killing of Our Negro Boys
ficers and Skilled Workers. We Demand Represen-
In Uncle Sam's Uniform.
tation on all Policy-Making Committees, Boards and
2. Jim-Crow Policy of the Navy - Army - Air Corps
Commissions of the Covernment
-U. S. Marine.
3. Insult of the Red Cross in Segregating Negro Blood.
groes Demand the Right to Make the Supreme
4. Lynching at Sikeston. Missouri.
crifice for Democracy in the War Against Hitler -
rohito - and Mussolini, but as Equals In Arms,
5. Denying Negro Soldiers the Right to Eat in Dining
Cars with White Soldiers while Traveling to and from
Defense Industries and All Departments
of the Government.
Training Camps in the South.
IN IN THE GREATEST. BIGGEST AND MOST
BACK AND SUPPORT THE FAIR EM-
UPENDOUS AND TREMENDOUS GATHERING OF
PLOYMENT PRACTICES COMMITTEE
EGRO PEOPLE FOR JUSTICE - DEMOCRACY -
WITH UNIFIED, INFORMED AND
FREEDOM AND MANHOOD RIGHTS IN THE
HISTORY OF THE WORLD.
MILITANT PUBLIC OPINION
IT'S NOW OR NEVER
Fight for the Right to Live, Work and Be Free
Sponsored by the CITY-WIDE COMMITTEE--Initiated by the MARCH ON WASHINGTON COMMITTEE
eadquarters: Y.W.C.A., 4559 So. Parkway
Phone Atl. 1434
Regraded Unclassified
capy to to
TREASURY DEPARTMENT
Draves 6/3/y2- 44
INTER OFFICE COMMUNICATION
DATE June 1, 1942
TO
SECRETARY MORGENTHAU
FROM
R. D. WELCH
SUBJECT:
Suggested projects for using music in the Treasury
program.
Dear Secretary Morgenthau:
My thought on the problem of using music in the
Treasury program has been directed rather to increasing
the number of participants in this program than to
increasing the number of radio programs. I do not, however,
believe the radio programs should be discontinued; in some
cases I think they should be altered. But I feel that the
more people and the more sections of the country that can
be enlisted in the effort, the more responsibility and
pride in the undertaking will be developed. With these
major premises in mind, I have the following suggestions to
make.
I. That the summer orchestral programs given by
orchestras in many parts of the country (Philadelphia,
Washington, Boston, Kansas City, Minneapolis, Seattle, etc.,
etc.) be asked to cooperate in dedicating at least one
program every two weeks to the Treasury. This program should
be of light classics such as attract summer crowds. On each
program one soldier or sailor soloist to appear in uniform.
The Army and the Navy have drafted, as you know, large
numbers of young artists who would be entirely competent,
with a few days practice, to give first class performances.
I would suggest that these programs be open to all service
men in uniform and that others in the audience pay the usual
admission fee which, if possible, should be returned in the
form of Savings Stamps.
I am aware that there is a problem here with regard to
the musicians' union. If it cannot be cleared up, I am
inclined to think that the advertising value of dedicating
this program to the Treasury and of having a service man as
soloist might compensate the orchestra for loss of paid
Regraded Unclassified
45
2
admissions by men in uniform. I believe also that this
would stimulate local interest and enlist the cooperation
of Boards of Directors and others concerned with the
management and welfare of these orchestras.
I should like to see at least one of these concerts
broadcast each week. And I believe that participation
in singing by the entire audience should be made & feature
of the program.
II. I am convinced that the "Community Sing" idea
should be fully explored, especially in small communities.
This would enlist the cooperation of a relatively large
number in the communities, would draw in churches and
schools, and give some distinction to local singers or
instrumentalists. On such programs, I believe one or more
short addresses should be given, preferably by local
celebrities. And again I feel that if soldier or sailor
directors or soloists will appear, interest would be
immensely stimulated.
III. In every state there is a well-organized
Federation of Music Clubs. These are commonly headed by
persons of some social influence in the state, and they are
generally known to be interested in patriotic enterprises.
These organizations ramify to the smallest communities and
their membership includes many of that very large number
of musicians in this country who have been asking in the
pages of musical journals and through their spokesmen at
state meetings, "What can I do to help the war effort -
does the Government have any use for musicians in this
crisis?" I believe it worthwhile to canvass some of the
presidents and local town officers of these Federated Clubs,
at least to explore their attitude and possible usefulness
in organizing local concerts, local sings, local festivals
of one sort or another, for it is my experience that such
persons are eager to be of service and wholly sincere in
their efforts to cooperate with appropriate public enterprises.
IV. As for radio programs -
A. Though they do not reach the largest potential
radio audiences, I believe that the programs of the higher
class of music should, if possible, be maintained. It is not
Regraded Unclassified
3.
46
only a matter of prestige, it is also B. matter of morale
and of encouraging the best talent, creative and executant,
to have a part in the Treasury program. I believe, however,
that we should explore the possibility of encouraging
dignified American-tinged compositions of the sort represented
by "Ballad for Americans", and to use at least one such on
each of the major programs. The works of Gershwin, Kern,
Victor Herbert, etc., have, I understand, been employed. I
should believe that they were worth re-hearing or that other
works by the same men might be used. I feel strongly that
American folk songs, including those by Stephen Foster, and
the national music of those countries which are represented
by large numbers of our population, should continue to be
worked into these programs.
B. I have no opinion about "The Treasury Star
Parade". It would seem to me wise for it to be continued
if there is evidence of its being listened to. As I can
see, it is entirely expert of its kind.
In accordance with the suggestion made last week,
I have asked Archibald Crossley, Director of the C.A.B. Program
Report, for ratings on the Treasury programs. He informed me
that there is little in his possession at the moment that
would be of use to us, but he offered the full resources of
his organization for the use of the Treasury at any time. I
believe it would be of value to have him give us some opinion
on the listening audience for "The Treasury Star Parade".
Finally, in my interviews with three young musicians
whom I had invited to my office last week, I have unearthed
evidence which leads me to believe it worthwhile to continue
our search for new talent. I shall shortly go further in my
efforts to find composers and writers who can build dramatic
programs around music, who can employ the ideas prevalent
in the common thought of the country as subjects for humorous
or sentimental verses and songs, and I shall look further for
someone who can catch the idea of the "Ballad for Americans".
Respectfully yours,
Regraded Unclassified
47
TO: Mrs. Klotz
DATE: June 1, 1942
FROM: Joseph Gaer
Here is a copy of a memorandum sent to Mr. Poland,
and a draft of one of a proposed series of letters.
It would seem to me that if the idea is approved,
(a) the Secretary should select the signatories to these
letters and determine their order, (b) the President's
message or letter should be the first in the series, and
(c) the Secretary should arrange with the President and
the others to obtain the messages or the approval of
messages, if they are to be prepared for them.
Regraded Unclassified
COPI
48
TO:
Mr. Poland
DATE: May 19, 1942
FROM: Joseph Gaer
TOPIC: Messages from Government and Military Leaders to Junior
and Senior High Schools
The value of the published materials in education journals.
n.s. outlined in my memorandum of May 9th, might be greatly in-
creased if coordinated with planned classroom discussions cor-
responding with the published topics. The journals would thus
lead the discussions, as it were, and supply basic facts to
teachers and pupils in the classrooms.
To keep the classes constantly interested, it might be
advisable to stimulate the discussions with occasional or
regular messages presented in the form of letters from Govern-
ment and military leaders. These messages to our youth might
be from: the President of the United States; the Vice-President
of the United States; the Secretary of the Treasury; the Secretary
of the Army: an Admirel: a war hero, etc. The messages should
be limited to five or six minutes reading time and allow for
class discussion.
These messages should be sent out to all junior and senior
high schools through our own State Directors, with each copy
addressed to a specific school so that in the reading the
students would have a feeling of being personally addressed.
I am attaching an example of such a message. It would
seem to me advisable to line up at least six people in whose
names messages could be sent and to plan these to go out every
month during the school year. But in view of the rapid changes
that are taking place on the war front, only one or two such
messages should be prepared now and the others should be written
not more than six weeks prior to their use in the schools. But
although the messages would be prepared in accord with changing
circumstances they should have a continuity of educational pur-
pose. The message attached takes up the question of what men
fight for and reaches the conclusion that they fight for freedom.
The next talk, therefore, should be devoted to the meaning of
freedom in A democracy.
If this idea meets with your approval. the first message
(or two messages) can be prepared early enough to be in the hands
of principals when the schools open in the autumn.
Regraded Unclassified
COPI
49
Example of & Message
Entitled
"What is Dearer than Life Itself"
Addressed to
Junior and Senior High School Students
.
From
The Secretary of the Treasury
The name of each school should be inserted at the begin-
ning of the talk.
50
- 2 -
I wish I could speak to you instead of writing to you,
for I cannot think of anything that would give me greater
strength than to look into your faces, the faces of young
America to whom belongs that great future for which we are
now fighting 80 grimly.
Some of you may still be too young to grasp the full
meaning of this war. That is nothing to be ashamed of.
There are many grownups who do not clearly understand why
we are fighting--what we are fighting against, and what we
are fighting for.
You all know that we are engaged in a war in which
thousands and millions of men have lost their lives, and
more thousands and millions of men will lose their lives
before it is over. We do not live to kill or to be killed.
We are a peace-loving people. The world over, men do not like
to go to war; men do not like to be crippled; men do not like
to die young.
51
- 3 -
Yet these men fight because they believe in something
which they hold dearer than their lives. Men always fought
to defend something held dearer than life.
The thing that men held dearer than life was not always
the same. In very early days, when people still lived in
caves and depended on hunting for their livelihood, they
fought for the protection of their hunting grounds. Later,
when the hunter turned shepherd many wars were fought for
grazing grounds. And when people began to till the soil and no
longer roamed from grassland to grassland, people fought for
their farm land against invading hordes.
With the rise of civilization, some six or eight thousand
years ago, men found that they could settle their disputes about
hunting grounds and grazing grounds and land rights peacefully
and in courts. But other things arose which civilized man held
even dearer than his source of livelihood. Men began to fight
for, and were ready to die for,-freedom.
52
- 4 -
Civilized people want many kinds of freedoms; and the
more civilized they become, the more freedoms they demand.
There is the physical freedom that makes the difference be-
tween slaves and free men. There is the freedom to express
ourselves--whether in words or in writing--the freedom of
speech and press. We also want religious freedom-the freedom
to worship according to the dictates of our conscience. And
we seek freedom from fear and want. Civilized man demands
spiritual freedom as well as physical freedom. He does not
want to be a slave in spirit or in body. For these freedoms
of the spirit as well as the body civilized men will fight and,
if necessary, die.
In the war we are now fighting side by side with our great
allies against Hitler and his Axis partners, this great issue is
to be decided: whether when you grow up you will be allowed
to live as free men and free women-continuing to enjoy freedom
of speech and freedom of religion, freedom of fear and the
Regraded Unclassified
53
- 5 -
opportunity to work out for yourselves freedom from want; or
whether we will lose all our rights and become slaves to a.
group of ruthless men, and that when you grow up you will
really be nothing more than slaves. This great issue is being
decided not only for us in America, but for all the people in
the world. This is a war which concerns every human being on
the face of the earth. What is decided in this war will be
decided not only for you and me, but for the entire of mankind.
We are fighting against tyranny and for democracy; against
barbarism and for civilization; against slavery and for freedom.
We know that we are fighting on the right side of the
battle for human freedom because: (1) We believe in truth
and the enemy believes in lies. (2) We believe in equality
and the enemy believes in enslaving all other nations. (3)
We believe in reason and understanding and the enemy believes
in blind obedience. (4) We believe in justice and the enemy
scorns it.
54
- 6 -
And since the enemy's cause is founded on injustice. it
cannot and it shall not endure.
To win this war--and we must win this war-all of us are
called upon to make sacrifices. No, I do not like the word
sacrifice. I do not consider it a sacrifice when you and I
understand what we must do, and are eager to do, to help our
nation win this war. All of us can help in our own way. All
of us old enough to talk and strong enough to walk can help
toward winning this war. It is not for me to tell you what you
and you and you can do. Your parents and your teachers and your
newspapers have already explained to you and will continue to
explain to you what part you can take.
Sometimes you will be asked to do things that you think
have nothing to do with the war. For instance, you may be
asked to eat certain foods you do not particularly like and to
finish all the food you are served, and you will wonder what
that has to do with your helping to win the war. But if it is
Regraded Unclassified
55
- 7 -
explained to you that to eat well is to keep well, and if you
are well your doctor can be spared to help where he is needed
in the army, then you will realize that you must not waste food,
and that you must keep well. There are many other things you
will be asked to do which you may not understand how they help
us defend our freedoms. Do not hesitate to ask questions. Take
nothing for granted. That, too, can be an important part that
you can play in helping win this war; the better you understand
the reasons for certain demands being made upon you, the better
you understand why you are asked to do one thing instead of
another, why you are asked to conserve one thing or another,
why you are asked to buy savings stamps and war bonds, the more
help you can be to us and the more help we can be to you.
Yours for victory,
HENRY MORGENTHAU, JR.
Secretary of the Treasury
Regraded Unclassified
The
June 1, 1942
Vol. II, No. 3
56
Minute Man
The crew of a destroyer just in from sea duty
lines up to buy the bonds which buy the weap.
ons they know just how and where to use.
NEW
News Letter OF
THE WAR SAVINGS STAFF
Minute Man
Quota Challenge Accepted Eagerly
q State and local WSS committees pitch in to bring
War Bond sales for Nation to the $1,000,000,000
monthly rate by July.
JUNE 1, 1942
VOL II, NO.
GOVERNORS of the States and Ter-
enough out of my war bond money
ritories, informed by Secretary Mor-
to live on.' That is what we have all
News Letter
genthau that their citizens had been
got to do.
of
the
War
given definite quotas in the drive
"We're going to be spending more
to boost sales of War Savings Bonds
per month on the war effort than
Savings Staff, Treasury Department
to $600,000,000 during the month
the total sale for bonds and stamps
of May, $800,000,000 in June and
in the whole past year. We have
Contents
$1,000,000,000 in July and each
got to step up our war bond pur-
Page
month thereafter, replied by tele-
chases in like ratio.
QUOTA CHALLENGE ACCEPTED EAGERLY
3
gram and letter expressing their
"To those citizens of New York
approval of the quota system and
and of the country at large who are
WAR BOND QUOTAS FOR MAY
5
pledging their complete cooperation.
living from day to day 'as usual,'
MILLIONS PLEDGE To Buy BONDS
On April 30 or May 1, Governors
9
I say, snap out of it. We civilians
of most of the States made radio
are in the war, just as deeply as
No DULL MOMENTS AT L. A. VICTORY House
12
broadcasts on War Savings and the
any man on any battle front. The
SPECIAL EVENTS
May quotas. Governor Lehman's
14
sooner all of us make up our minds
address over a State-wide radio net-
to this fact the sooner the war is
WHAT WAR SAVINGS BUY
18
ork on May 1 was typical.
going to end."
WITH THE FIELD FORCE
"You have read in your news-
First reaction of State adminis-
20
papers the war bond quota that the
trators and State chairmen to the
How To MAKE A WAR BOND SALES TALK
24
Government has set up for your
quotas announced for their States
PAY ROLL SAVINGS
county and your State," said the
and counties was, almost unani-
34
governor. "Let each one of us in
mously, that they were fair and that
WOMEN
40
New York's 62 counties see that our
they would be exceeded in most
EDUCATION
quotas are not merely filled, but
counties. Iowa asked to have its
42
exceeded. To do this, we've all
quota raised by 1 million dollars
BANKING AND FINANCE
44
got to put our homes on a wartime
and this was done. Indiana also
basis for the duration.
THE FALL OF FRANCE
petitioned for an increase in its
46
"We are faced today with the
quota but too late to have the official
FIGHTING MAD
48
necessity of changing our habits of
quota figures readjusted. However,
spending. We have got to rebudget
Indiana got full permission to exceed
our lives. On the radio the other
its May quota by any amount!
night I heard one man ask another
Iowa, Indiana, and several other
Issued by the Field Division. The Minute Man seeks to create
if he was saving enough out of his
States asked to have the quotas of
and maintain sales activities on behalf of United States Savings Bonds and
living expenses for war bonds. The
some of their counties raised and
Stamps by supplying information, ideas, inspiration, and instruction to men-
other man replied: 'I am saving
of other counties lowered. This was
bers of the War Savings Staff throughout the United States, its Territories
and Possessions. Printing approved by the Bureau of the Budget.
The Minute Man 3
Regraded Unclassified
done in numerous instances and in
taneously in Chattanooga and Nash.
all cases such requests from State
ville, at breakfast meetings attende
WSS headquarters have been given
by 3,000 and 1,500, respectively!
War Bond Quotas For May
careful consideration in the prepara-
In the District of Columbia and
tion of June quotas.
in Colorado, Oregon, New Mexico,
1940
In many States the announce-
May quota
Per
Ratio to
and several other States, State and
State
Rank
Population
(issue price)
capita
Rank
national
Rank
ment that specific dollar quotas had
quota
local WSS committee members met
quota
been established for May bond
to plan ways and means of inten-
sales came while pledge campaigns
sifying their sales efforts to meet
Pricent
Alabama,
2,832,961
17
$3,787,400
$1.34
49
6312
32
were underway and proved to be a
their quotas.
Arizona
499,261
45
1,357,800
2.72
33
2263
43
great stimulus to this effort to com-
Arkansas
1,949,387
24
2,682,200
1.38
48
4470
In Ohio, the quotas were co
37
California
6,907,387
5
40,011,100
5.79
9
6685
4
mit every income receiver to pur-
thusiastically received at the bis
Colorado
1,123,296
34
4,086,300
3.64
24
6811
31
chase war bonds regularly.
Connecticut
1,709,242
32
13,228,400
7.74
3
2047
11
war bond rallies in Toledo and
Delaware
266,505
49
1,860,900
6.98
5
3102
40
In Indiana, where the pledge
Cleveland, which marked the begin-
Dist. of Columbia
663,091
38
6,178,900
9.32
1
0298
19
campaign was launched on April
Florida
1,897,414
27
5,794,200
3.05
29
9657
21
ning of pledge campaign canvasses
Georgia
3,123,723 3,
14
5,365,100
1.72
46
8942
25
27, four counties had secured pledges
In Minneapolis, 40 busines
Idaho
524,873
44
1,450,700
2.76
31
2418
41
totaling more than their May quotas
Illinois
7,897,241
3
49,300,200
6.24
8
2167
3
leaders met on May 1 and agreed
Indiana
3,427,796
12
10,925,800
3.19
28
1.8210
14
by April 30. One of these counties
to push this threefold program 00
Iowa
2,538,268
20
9,000,000
3.55
25
1.5000
16
1,801,028
30
4,617,100
2.56
was St. Joseph of which industrial
Kansas
34
.7695
29
raise Minnesota's quota: First, to
Kentucky
2,845,627
16
5,557,700
1.95
43
9263
23
South Bend is the county seat. The
sign up all executives to buy bonds
Louisiana
2,363,880
21
4,943,500
2.09
41
8239
28
county's May quota was $779,600
Maine
847,226
36
3,295,400
3.89
21
5492
33
with at least 10% of their incomes
Maryland
1,821,244
29
9,078,500
4,98
13
1.5131
15
but pledges and pay-roll allotment
second, to resolicit all workers to
Massachusetts
4,316,721
8
28,770,500
6.66
6
7951
6
Michigan
5,256,106
7
21,646,500
4.12
19
authorizations indicated bond pur-
3,6078
8
get them to raise their pay-roll
Minnesota
2,792,300
18
11,657,400
4.17
18
1.9429
13
chases in excess of 1 million dollars.
savings to 10% of earnings; and third
Mississippi
2,183,796
23
2,905,200
1.33
50
4842
35
Missouri
3,784,664
10
17,075,100
4.51
16
In addition to having 29,478 of the
2.8459
10
to solicit the purchase of Series F
Montana
559,456
41
2,785,200
4.98
14
4642
36
county's 31,000 industrial workers
and G Bonds by corporations, trusts,
Nebraska
1,315,834
33
3,286,200
2.50
35
5477
34
Nevada
110,247
51
580,600
5.27
11
.0968
50
signed up in pay-roll savings plans,
and other large investors. This
New Hampshire
491,524
46
1,895,400
3.86
22
3159
39
the St. Joseph County committee
same program is being developed
New Jersey
4,160,165
9
26,727,100
6.42
7
4545
7
ew Mexico
531,818
43
1,054,500
1.98
42
1758
47
had secured 6,682 individual pledges
St. Paul and in many Minneso
New York
13,479,142
1
125,000,000
9.27
2
20.8333
1
for May purchases by April 30.
North Carolina
counties where WSS committeemen
3,571,623
11
5,888,500
1.65
47
9814
20
North Dakota
641,935
40
1,392,600
2.17
39
2321
42
Newton, Whitley, and Jefferson
have held regional meetings since
Ohio
6,907,612
4
31,768,700
4.60
15
5,2948
5
were the other Indiana counties to
Oklahoma
the quotas were announced.
2,336,434
21
5,388,900
2.31
37
8982
24
Oregon
1,089,684
35
5,610,500
5.15
12
9351
22
report pledges in excess of their May
From nearly every State and from
Pennsylvania
9,900,180
2
53,814,500
5.44
10
8.9691
2
quota actually in hand by April
Rhode Island
hundreds of counties the War Sav-
713,346
37
5,352,100
7.50
4
8920
26
South Carolina
1,899,804
26
30. By May 7, the citizens of
2,453,400
1.29
51
4089
38
ings Staff has received word that
South Dakota
642,961
39
1,238,600
1.93
44
2064
44
Indiana had pledged themselves to
Tennessee
2,915,841
15
5,141,000
1.76
45
8568
27
bond quotas have been well received
Texas
6,414,824
6
18,594,500
2.90
30
.0991
9
exceed their May bond quota by
by the press and by people gener-
Utah
550,310
42
1,201,000
2.18
38
2002
46
more than $2,000,000!
Vermont
359,231
1,205,300
3.36
26
2009
45
ally. From coast to coast the
48
Virginia
2,677,773
19
In Tennessee, the quotas were a
8,965,200
3.35
27
1. 4942
17
reaction has been: Now the know
Washington
1,736,191
31
7,581,100
4.37
17
1, 2635
18
great stimulus to the pay-roll savings
West Virginia
just what is expected of us; (IV can de
1,901,974
25
4,106,400
2.16
40
6844
30
Wisconsin
3,157,587
13
23
1. 9962
drives launched on May 6, simul-
11,977,200
3.79
12
this job,
Wymning
250,742
50
1,002,500
4.00
20
1671
48
Máska
72,524
52
198,400
2.74
32
0331
52
Hawaii
423,330
47
992,200
2.34
36
1654
49
Virgin Islands
24,889
53
8,800
.35
52
0015
53
Puerio Rico
1,869,255
28
213,700
11
53
0356
51
Total
A great country can have no such thing as a little war.
134,059,273
600,000,000
3.98
100, 00
-DUKE OF WELLINGTON.
4 The Minute Man
The Minute Man 5
Regraded Unclassified
County quotas-for all counties with populations of 150,000 or more
County quotas-Continued
State, county, and principal city
1940 popula-
May quota
Per
Ratio to
tion
(issue price)
national
State, county, and principal city
1940 popula-
May quota
Per
Ratio to
capita
tion
(issue price)
capita
national
quota
quota
quota
quota
ALABAMA: Jefferson (Birmingham)
459,930
Perces
MISSISOTA
Percent
$1,583,300
$3.44
Hennepin (Minneapolis)
568,899
$4,477,200
$7.87
ARIZONA: Maricopa (Phoenix)
0.2638
0. 7462
186,193
643,100
ARRANSAS: Pulaski (Little Rock)
3.45
Ramsey (St. Paul)
309,935
3,032,200
9.78
5053
156,085
710,400
1071
CALIFORNIA:
4.55
St. Louis (Duluth)
206,917
1,032,700
4,99
1721
1184
Alameda (Oakland)
MISOURI:
513,011
2,915,700
5.68
Jackson (Kansas City)
477,828
3,391,000 3,
7.10
5651
Fresno (Fresno)
178,565
676,500
4859
Los Angeles (Los Angeles)
3.79
1127
St. Louis and St. Louis City (St.
2,785,643
15,782,100
5.67
Louis)
1,090,278
10,232,700
9.38
1. 7054
Sacramento (Sacramento)
170,333
942,400
2.6303
San Bernardino (San Bernardino)
5.53
NEBRASKA: Douglas (Omaha)
247,562
1,471,100
5.94
2451
161,108
375,600
-1570
NEW JERSEY:
San Diego (San Diego)
2.33
289,348
1,594,300
.0626
5.51
Bergen (Hackensack)
409,646
2,131,700
5.20
3552
San Francisco (San Francisco)
634,536
2657
10,475,800
16.51
1.7459
Camden (Camden)
255,727
1,722,700
6.74
2871
Santa Clara (San Jose)
174,949
755,000
4.32
Essex (Newark)
837,340
7,720,100
9.22
1. 2866
COLORADO: Denver (Denver)
322,412
1258
2,354,200
7.30
Hudson (Jersey City)
652,040
3,943,000
6.05
6571
CONNECTICUT:
3923
Mercer (Trenton)
197,318
1,795,400
9.10
2992
Fairfield (Bridgeport)
418,384
3,118,900
7.45
Middlesex (New Brunswick)
217,077
973,100
4.48
1621
Hartford (Hartford)
5191
450,189
4,327,700
Monmouth (Asbury Park)
161,238
732,400
4.54
1220
New Haven (New Haven)
9.61
.7212
484,316
4,188,800
8.65
Passaic (Paterson)
309,353
2,259,600
7.30
3766
DELAWARE: New Castle (Wilming-
.6981
Union (Elizabeth)
328,344
2,445,200
7.45
4075
ton)
179,562
DISTRICT OF COLUMBIA: The District
1,632,800
9.09
NEW YORK:
.2721
Albany (Albany)
221,315
1,871,300
8,46
3118
(Washington)
663,091
6,178,900
9.32
Broome (Binghamton)
165,749
882,800
5,33
1471
FLORIDA:
1,0298
Erie (Buffalo)
798,377
4,326,200
5,42
7210
Dade (Miami)
267,739
1,302,500
4.86
Monroe (Rochester)
438,230
3,300,000
7.53
5500
Duval (Jacksonville)
2170
210,143
998,900
4.75
Nassau (Long Island)
406,748
1,792,800
4.41
2988
Hillsborough (Tampa)
1664
180,148
GEORGIA: Fulton (Atlanta)
449,200
2.49
New York, Bronx, Kings, Queens,
0748
ILLINOIS:
392,886
2,146,400
5.46
and Richmond (New York)
7,454,995
95,493,000
12.81
15. 9155
3577
Niagra (Niagara Falls)
160,110
599,500
3.74
0999
Cook (Chicago)
4,063,342
Peoria (Peoria)
38,136,600
9.30
Oneida (Utica)
203,636
1,139,200
5.59
1898
6.3501
153,374
752,900
Onondaga (Syracuse)
295,108
1,421,800
4.82
2369
St. Clair (East St. Louis)
4,91
1254
166,899
556,300
Suffolk (Long Island)
197,355
553,700
2.81
0922
INDIANA:
3,33
0927
Westchester (Yonkers)
573,558 573, 558
3,706,900
6.46
6178
Allen (Fort Wayne)
155,084
(RTH CAROLINA:
Lake (Gary)
644,100
.15
107
293,195
Suilford (Greensboro)
153,916
478,300
3.11
0797
Marion (Indianapolis)
983,200
3.35
1638
St. Joseph (South Bend)
460,926
2,597,300
Mecklenburg (Charlotte)
151,826
698,400
4.60
1164
5.64
4328
Oinn:
IOWA: Polk (Des Moines)
161,823
650,600
4.02
1084
195,835
Cuyahoga (Cleveland)
1,217,250
10,143,900
8,33
1. 6906
KANSAS: Sedgwick (Wichita)
653,200
3.34
1088
143,311
Franklin (Columbus)
388,712
1,803,000
4.64
3005
LOUISIANA: KENTUCKY: Jefferson (Louisville)
745,900
5.20
1243
385,392
Hamilton (Cincinnati)
621,987
5,439,700
8.75
9066
2,856,000
7.41
4760
Lucas (Toledo)
344,333
2,273,200
6.60
3788
Caddo (Shreveport)
150,203
Mahoning (Youngstown)
240,251
907,300
3.78
1512
Orleans (New Orleans)
589,100
3.92
0981
MARYLAND: Baltimore & Baltimore
494,537
2,443,700
4.94
4072
Montgomery (Dayton)
295,480
1,264,500
4,28
2107
Stark (Canton)
234,887
1,048,100
4.46
1746
City (Baltimore)
1,014,925
Summit (Akron)
1.2292
339,405
1,084,300
3.19
1807
MASSACHUSETTS:
7,375,900
7.26
ORLATIOMA:
Bristol (Fall River)
364,637
Oklahoma (Oklahoma City)
244,159
1,045,100
4.28
1741
Essex (Lynn)
1,536,700
4.21
2561
Tulsa (Tulsa)
496,313
2966
193,363
1,280,500
6,62
2134
Hampden (Springfield)
1,780,000
3.59
OREGON:
Middlesex (Cambridge)
332,107
2,049,400
6.17
3413
971,390
5095
PENNSYLVANIA: Multnomah (Portland)
355,099
3,132,600
8,82
5221
Norfolk (Quincy)
3,057,400
3.15
Plymouth (Brockton)
325,180
1,303,200
4.01
2172
Allegheny (Pittsburgh)
Suffolk (Boston)
168,824
1,411,539
10,286,100
7,29
1. 7143
695,200
4.12
1158
Berks (Reading)
241,884
961,200
3,97
1602
MICHIGAN: Worcester (Worcester)
863,248
13,926,700
16.13
2. 3211
Cambria (Johnstown)
504,470
213,459
394,200
1.85
0657
3,000,500
5,95
5000
Dauphin (Harrisburg)
177,410
949,400
5,35
1582
Genesee (Flint)
Delaware (Chester)
227,944
1536
310,756
1,086,800
3,50
1811
Kent (Grand Rapids)
921,700
4,04
Erie (Erie)
180,889
873,400
4,83
1455
Oakland (Pontiac)
246,338
1,427,200
5.79
2378
Fayeite (Uniontown)
311,000
1.55
0518
Wayne (Detroit)
254,068
1097
200,999
658,600
2.59
Lar kawanna (Scranton)
2,015,623
2. 0495
301,243
1,390,500
4.62
2317
12,297,000
6.10
Lameaster (Lancaster)
212,504
704,200
3.31
1173
6 . The Minute Man
The Minute Man 7
Regraded Unclassified
County quotas-Continued
Millions Pledged to Save for Victory
State, county, and principal city
1940 popula-
May quotas
Per
Ratio to
tion
(issue price)
capita
national
quota
quota
q First systematic War Bond and Stamp sales canvass
PENNSYLVANIA-Continued
nears completion in most States.
Lehigh (Allentown)
177,533
$664,300
$3.74
Prom
Luzerne (Wilkes-Barre)
441,518
1,590,000
0. 1107
Montgomery (Norristown)
3.60
289,247
1,226,300
2650
Northampton (Easton)
4.24
1,179,300
2043
CAMPAIGNS to secure signed pledges
Here are a few generalizations and
168,959
Philadelphia (Philadeplhia)
6.98
1,931,334
23,011,100
1965
from as large as possible a number of
highlights based on reports from
Schuylkill (Pottsville)
11. 91
228,331
618,600
3.8351
2. 71
income receivers in the United States
Washington (Washington)
State administrators and newspaper
210,852
538,400
1031
Westmoreland (Greensburg)
2.55
303, 411
752,000
.0897
to buy war bonds regularly had been
accounts:
York (York)
2,48
178,022
666,000
1253
RHODE ISLAND Providence (Provi-
3.74
1111
completed or were well underway in
The American Legion and Legion
dence)
550,298
4,763,800
40 States by May 31. Similar pledge
Auxiliary undertook a major share of
TENNESSEE:
8.66
.7939
campaigns are scheduled in most of
the responsibility for the canvass in
Davidson (Nashville)
257,267
1,000,200
Hamilton (Chattanooga)
3.89
180,478
-1667
the remaining States for the month of
many States.
Knox (Knoxville)
618,600
3.43
178,468
-1031
334,800
Shelby (Memphis)
1.88
358,250
.0558
June.
State and county war boards of the
TEXAS:
1,407,400
3.93
.2345
It is not possible to present a statis-
Department of Agriculture have been
Bexar (San Antonio)
338,176
Dallas (Dallas)
1,249,600
3.69
2083
tical summary of these pledge cam-
most helpful in organizing and super-
398,564
Harris (Houston)
3,602,700
9.04
.6004
528,961
paigns. However, many counties and
vising the pledge campaign in rural
Tarrant (Fort Worth)
2,652,500
5.01
4420
225,521
UTAH: Salt Lake (Salt Lake City)
1,117,200
4.95
.1862
cities report that pledges have been
areas in almost all of the States.
211,623
VIRGINIA: Henrico and Richmond
764,200
3.61
1273
secured from nearly every home and
Ceremonies before the Liberty Bell in Independ
City (Richmond)
WASHINGTON:
235,002
3,323,000
14.14
.5534
most of these places also report sharp
ence Hall, Philadelphia, signalized the beginning
increases in bond sales.
of Pennsylvania's pledge campaign. The gentle-
King (Seattle)
504,980
Pierce (Tacoma)
3,567,500
7.06
man in civilian clothes is State Administrator
5945
Spokane (Spokane)
182,081
816,000
Benjamin Ludlow.
4.48
.1360
WEST VIRGINIA: Kanawha (Charles-
164,652
836,600
5.08
1394
ton)
195,619
Wesconsin: Milwaukee (Milwaukee)
756,500
3.87
1260
766,885
4,930,300
6.43
8217
Total
58,309,625
436,780,800
7,49
72.
situations where persons live in one county but buy their bonds in another.
NOTE-As the quotas are based on official records of past sales they take into account the
Although N/C cannot, by the best concerted plans, absolutely
command success, although the race is not always to the swift
nor the battle to the strong, yet, without presumptuously wait-
humble confidence in its smiles on our future operations, to make
ble duty, with the deepest gratitude to Heaven for the past, and
ing for miracles to be wrought in our favor, it is our indíspensa-
use of all means in our power for our defence and security.
-GEORGE WASHINGTON.
through which arms may be made of service.
War is a matter not 50 much of arms as of expenditure,
-THUCYDIDES
Being ready, hope for the battle.
-VIRGIL.
8 The Minute Man
The Minute Man 9
Regraded Unclassified
Vermont made effective use
All radio stations in Washington
long be remembered by those who
special movie trailers to publicize
areied the pledge campaign broad-
were privileged to attend.
pledge campaign.
cast, The Knock at the Door, Sunday
James Madden, vice president of
Katherine Hepburn made a radio
evening, May 3, many of them can-
the Manufacturer's Trust Co., has
broadcast from Philadelphia in Con-
celing regular network features to
been loaned by his bank to direct the
nection with the launching of Penn-
do so. Previously, all school chil-
pledge campaign in Greater New
sylvania's pledge campaign.
dren had taken to their homes a
York. This campaign begins June 14.
Dramatic clubs of the University
special message from Governor Lang-
of North Carolina dramatized the
lie
urging
everyone
listen
to
this
radio play, The Knock at the Door,
broadcast.
Three thousand Minute Men filled
2,500 Citizens League block chairmen conducted
developed in Oregon and adapted
the "Victory Pledge Canvass" in Richmond, Va.
for use in all other States during the
an Omaha theater to overflowing
Miss Evelyn Gooch (left) executive secretary of
pledge campaign. The broadcas
on the eve of the Nebraska pledge
the Richmond WSS committee thanks one of
them, Mrs. James Blades.
of this play over a four-station, State-
campaign. Last-minute instructions
wide network launched "War Bond
were given them on how to conduct
Week" in North Carolina and tran-
the canvass and a series of patriotic
scriptions of this performance were
addresses were made by Governor
used by other radio stations in the
Dwight Griswold; Mayor Dan But-
Mrs. Colgate W. Darden, Jr., wife of the Governor
State,
ler; Henry Monsky, international
of Virginia, places the "We Are Buying" pledge
president of B'nai B'rith; State
campaign sticker in a window of the historic
Chairman J. Francis McDermott and
executive mansion in Richmond.
W.D. Hosford, Jr., chairman of the
Newspapers and radio stations have
VICTORY.
PI
cooperated to the fullest possible
Sign Your
Omaha and Douglas County WSS
VICTORY
committee, and others. A high-
extent in publicizing the campaign.
Outdoor bulletin boards, car cards
PLEDGE
for
school choir, the Union Pacific Rail-
road band, a male quartette and
and other types of publicity have been
community singing all combined to
used to good advantage in several
ring patriotism to a high pitch and
States, notably North Carolina, Geor-
This card appeared in street cars and bein
throughout Pennsylvania during the pleder
to make the evening one which will
gia, and Pennsylvania. In Virginia,
campaign.
pledge copy was added to the Treas-
ury flag posters on display throughout
the State.
Parades, sounding of air raid sirens,
band concerts, addresses by Gover-
nors and other State leaders were
Vacie Sam will knock MAY ION all MAY Your Done
On the road abead there lies hard work-ahead there lies
some of the events planned to signal-
ize the beginning of pledge cam-
PLEDGE CARD
sacrifice for all of us. But it is not correct to use that word.
DNDS the for name
The United States does not consider it a sacrifice to do all one
can, to give one's best to our Nation, when the Nation is fight-
paigns.
ing for its existence and its future life.
"Investment for Happiness," was
brock at your doot
It is not a sacrifice for the industrialist or the wage earner, the
the title of the original one-act play
in
your
country
farmer or the shopkeeper, the trainman or the doctor to pay more
widely produced in Virginia during
FOR YOUR
BOND
taxes, to buy more bonds, to forego extra profits, to work longer
Pledge Week. "A Quota For Free-
DEFENSE
or harder at the task for which he is best fitted-rather it is a
Pledge
MAY
10st
dom," was the name of the War
privilege.
It is not a sacrifice to do without many things to which we are
Savings play written and produced
accustomed if the National Defense calls for doing without it.
by students of the University of West
Poster designs used throughout Georgia to pub
-PRESIDENT ROOSEVELT.
Virginia.
licize the pledge campaign.
The Minute Man 11
10 - The Minute Man
Regraded Unclassified
hands: high-school orches-
Never a Dull Moment!
Meh-school glee clubs.
entertainment.-Sheriff's
9
Varied program of entertainment offered at Victory
pistol team: lodge drill teams; circus
acts everything from high wire per-
House in Los Angeles.
formers to elephants and peanuts,
knife throwers, etc.; fire department
IN PERSHING SQUARE, in the heart of
sible for arranging similar programs in
exhibitions; dance teams and acts
downtown Los Angeles, Victory
their own communities:
from theaters and cabarets; exhibi-
House is completing its sixth month
Musical entertainment.-Elks band:
(jon of army dogs; exhibition of
as a center of War Savings Bond and
Elks quartette; name bands from
Army. Navy, and Coast Guard
Stamp sales promotion in southern
theaters; dance bands provided by
equipment: sale of bonds from Brinks
California. In view of its outstand-
Musicians Union; college orchestras:
amounted truck: mock auctions,
ing success, its sponsor, the Standard
college glee club; church choirs;
return of "purchase price" to highest
Oil Co., of California, has agreed to
accordion band; National Guard
hidder in stamps or bonds; children's
continue it for the duration of the
bands; soloists, vocal and instru-
dance groups from various dance
mental; military academy bands:
war.
studios: State guard demonstrations:
"Never a dull moment" is the
American Legion bands; Shrine band
civilian defense demonstrations-
Sportsmen's Day at Victory House.
promise of the Victory House man-
and chanters; song writers and com-
incendiary bomb extinguishment,
reenactments of various historical
agement and a review of the program
posers; scotch bagpipe band; western
first aid, etc.; magicians; American
events and great patriotic speeches
arranged during a recent 90-day
singers and instrumentalists; opera
Indian dancers; fashion shows; dem-
by school children and others.
period proves that this promise has
stars-presenting famous arias and
onstrations by amateur and profes-
Sponsoring organizations.-Kiwanis;
been kept.
ballads; WPA symphony orchestra;
sional athletic champions-boxing,
Optomist; Lions; Soroptomist; Vet-
The following list of the kinds of
WPA dance bands, Negro choru
wrestling, tumbling, fencing, etc.;
erans of Foreign Wars; VFW Auxil-
entertainment and special features at
and other musical groups: high-
cowboy and rodeo stars.
iary; American Legion; Legion Aux-
Victory House should be helpful to
Appearances of personalities and celeb-
iliary; Women's Ambulance & De-
WSS committee chairmen who are respon-
Massed colors of Los Angeles county posts of the
rities.-Movie stars; radio stars;
fense Corps; Jewish War Veterans:
American Legion in Pershing Square.
abaret, theater, and vaudeville stars.
Elks; Knights Templar: Union
These personalities entertain, sing,
Label League Auxiliary; Southern
and make brief talks. They sell bonds
Pacific Railroad; Santa Fe Rail-
and stamps, autographing albums
road; McGuffy Memorial Associa-
for stamp purchasers, and giving
tion; Carpenters' Council: Musi-
autographed photographs to bond
cians Union; Shrine; Spanish War
purchasers.
Veterans; Serbian Benevolent So-
Ceremonies.-Flag lowering (each
ciety; L. A. Athletic Club: Cali-
day): singing of the National An-
fornia State Federation of Labor:
them: celebration of special days,
Native Sons & Daughters of the
e.g. Hawaiian Day, Mexican Day,
Golden West; Ancient Order of Hi-
Newspaper Carrier Boy Day (honor
bernians. Each organization takes
awards presented with ceremony),
charge of some part of a day's
Lincoln's Birthday, Washington's
program. Some provide a full pro-
Birthday; purchases of large blocks
gram of entertainment; others stage
of bonds by associations and groups
one or two stunts, present talks,
of various kinds; patriotic talks by
purchase large blocks of bonds, or
winners of high school oratorical
originate some other interesting and
contests: tableaux, pageants and
newsworthy activity.
The Minute Man
13
12
The Minute Man
Regraded Unclassified
Talk on local aspects of the War Savings
A Program for
campaign.
Community Sing
More songs, concluding with
The Star Spangled Banner.
SPECIAL EVENTS
COMMUNITY sings of the type now
The standard patriotic songs and
being conducted by Miss Lucy Mon-
other popular old favorites are sung
roe and WSS committees through-
at these festivals. For example,
out the country have programs
Lucy Monroe leads her varied audi-
WSS Sponsors
August 14, Rochester, N. Y.: Au-
about as follows:
ences in singing such songs as the
gust 18, Buffalo, N. Y.; August 21,
Community Sings
The Oath of Allegiance to the Flag-by
following:
Hershey, Pa.; August 25, Trenton,
the entire audience.
PATRIOTIC song festivals at which
N. J.; August 28, Camden, N. J.;
God Bless America: Hail, Hail, the
Group singing.
Lucy Monroe, the "Star Spangled
September 7, Minneapolis-St. Paul,
Talk on War Savings.
Gang's All Here: Carry Me Back to
Banner Girl," is the featured at-
Minn.; September 10, Madison,
More mngs.
Old Virginny; Any Bonds Today?
traction have proved to be one of the
Wis.; September 17, Chicago, III,
Induction of local men into the Army,
Take Me Out to the Ball Game:
September 22, Springfield or Joliet,
Navy and Marine Corps. These cere-
most successful promotional events
America the Beautiful; Smiles; Long,
monies include the taking of the oath of
sponsored by the War Savings Staff.
Ill.; September 25, Davenport, Iowa,
Long Trail; Dixie; My Wild Irish
allegiance.
Miss Monroe's tour which is
and Rock Island and Moline, III.;
More songs.
Rose; Pack Up Your Troubles;
sponsored jointly by the Treasury
September 29, Des Moines, Iowa,
Maryland! My Maryland !; The
Department and RCA Victor, began
October 2, Sioux City, Iowa; Oc.
with a community sing in Washing-
tober 12, Columbus, Ohio; October
ton, D. C. She then went to
15, Detroit, Mich.; October 20,
Over 12,000 people-old folks, young folks, and
Florida where crowds of record-
Toledo, Ohio; October 23, Akron,
in-berweens-sang together with Lucy Monroe in
breaking size turned out to hear her
Ohio; October 29, Pittsburgh, Pa.;
Williams Park. St. Petersburg, Fla. Lucy Monroe
accepts bouquer from Burwell Neale, president
and to participate in the varied
October 30, Cincinnati, Ohio:
of the Chamber of Commerce, St. Petersburg
programs which were arranged in
November 5, Indianapolis, Indina;
On the platform are members of the St. Peters
burg High School Band
Jacksonville, Miami, and a number
November 16, Dallas, Tex.: Novem-
of other cities.
ber 19, Fort Worth, Tex.; November
There followed enthusiastically
24, Houston, Tex.; November 27
received song concerts in Mobile,
San Antonio, Tex.; December 1,
Ala.; Jackson, Miss.; New Orleans,
Galveston, Tex.; December 8, Beau-
La.; Birmingham, Ala.; Atlanta,
mont, Tex.; December 15, Oklahoma
Ga.: Charleston, S. C.; and Charlotte
City, Okla.: December 18, Memphis,
N. C.
Tenn.: December 24, Bethlehem, Pa.
Miss Monroe's tentative itinerary
Note to local WSS chairmen: If
for the rest of this year is as follows:
your city is not on this list, and if you
June 4, Milwaukee, Wis.; June 16,
would like to have a community sing
Kansas City, Mo.; June 23, St.
with Miss Monroe as the featured at-
Louis, Mo.; June 30, Omaha, Nebr.;
traction, get in touch with your State
July 4, Cleveland, Ohio; July 14,
administrator who will relay your
Portland, Maine; July 17, Boston,
request to those in charge of her
Mass.; July 21, Providence, R. I.;
itinerary.
July 24, Hartford, Conn.; July 28,
You should also consider staging a
Springfield, Mass.; July 30, New
community patriotic song festival
Haven, Conn.: August 4, Albany,
using local talent. Call on WSS
N. Y.; August 7, Schenectady, N.
headquarters if you need help in
Y.; August 11, Syracuse, N. Y.;
planning such an affair.
14 The Minute Man
The Minute Man 15
Regraded Unclassified
Man on the Flying Trapeze; Way
Film Stars Tour
Down Upon the Swanee River;
To Sell Bonds, Stamps
Yankee Doodle; Let Me Call You
Sweetheart; For He's a Jolly Good
Two STARLETS of the MGM picture,
Ship Ahoy-Jitsy Parker and Doro.
Fellow!; Sweet Adeline; Put on
thy Schoemer-are making a Nation-
Your Old Gray Bonnet.
wide tour, appearing at rallies and
My Old Kentucky Home; In the
meetings of all kinds to help promote
Shade of the Old Apple Tree; In the
the sale of War Savings Bonds and
Good Old Summertime; Columbia,
Stamps.
the Gem of the Ocean; Caissons
The appearances of these two star-
Song: After the Ball Is Over: When
lets are arranged by an advance
Irish Eyes Are Smiling: Hinky
representative of the War Savings
Dinky Parley-Voo; My Buddy; Till
Staff working in cooperation with
We Meet Again: Keep the Home
State WSS administrators and local
Fires Burning; From the Halls of
WSS committee chairmen. The
Montezuma; Anchors Aweigh;
"Minute Girls" help sell stamps at
Good-Night Ladies; Home, Sweet
special War Savings booths in de-
Home; Auld Lang Syne: Onward,
partment stores; appear at meetings
Christian Soldiers; America; The
of luncheon clubs; speak at rallies of
Star-Spangled Banner.
store, office and factory employees;
sell stamps in theater lobbies; take
Another view of the Los Angeles Victory House.
part in radio programs over local sta-
Ship Ahoy! Two of these girls are now making
the tour described above.
tions; and help promote bond sales.
Public Address Systems Needed
successful unless there are enough
WAR BRINGS many occasions for the
loud speakers to let everybody follow
use of public address systems. How-
the proceedings. The leather-lunged
orator of days gone by has yielded to
ever, Times Square in New York,
modern sound amplification.
and Pershing Square in Los Angeles,
e among the very few large outdoor
meeting places in this country which
are so equipped.
Public address systems in the down-
The Cover
town business sections where large
THE PICTURE on the cover of this
numbers of people regularly congre-
issue was taken at the San Diego
gate are needed now, as never before,
naval base. The man at the right is
to broadcast patriotic music, ad-
Isidor Q. Reyes who said that he
dresses and ceremonies, to broadcast
had "offensive" reasons for buying
civilian defense instructions, air raid
War Savings Bonds. He is a native
warnings, etc., and for many other
of the Philippines.
purposes. Radio listening which is
On the day this picture was taken
done in the privacy of homes and
every officer and enlisted man on
offices, and meetings, even those in
four destroyers bought War Bonds or
big auditoriums and stadiums, do not
Stamps for a total investment of
provide a satisfying substitute for the
$7,100. In War Savings as well as
out-of-door parade, mass meeting and
in other ways our fighting men are
rally. However, except in very small
setting splendid examples for us
towns, affairs of this kind will not be
civilians.
16
The Minute Man
The Minute Man 17
Regraded Unclassified
What War Savings Buy
$1,000 to $10,000-Continued
adlo communication
trick (without equip-
From Official Army and Navy Sources
$3,955.00
ment)
5,000.00
Scout ear
5,000.00
Sound locator
Use this list of approximate costs of some of the
II
things needed to bring Victory to our armed forces
to select appropriate goals for War Savings drives in
I
$10,000 to $100,000
schools, clubs, unions, plants, offices, communities etc.
Barrage balloon
10,000.00
Personnel carrier
11,000.00
$0.10 to $7
$10 to $100-Continued
75-mm. annon
12,000.00
Primary training plane
5 cartridges, .45 caliber
$0.10
Bombardier kit
$52.00
(Army)
15,000.00
Insignia, one set
.10
Pistol, .45 automatic
65.00
Pontoon bridge
15,000.00
Soldier's mess kit
.25
Shot line
75.00
75-mm. gun, self-propelled.
15,000.00
Dozen bandages
.25
Field range (complete)
75.00
Primary training plane
Message bag
.30
Garand rifle
85.00
(Navy)
18,000.00
Fuel oil to run a destroyer 1
Binoculars, one pair
85.00
155-mm. howitzer
20,000.00
Clothing for the average en-
Light tank (13 tons)
25,000.00
mile
.50
Navy bean pot
.50
listed man (Army)
90.35
Light tank (14 tons)
28,000.00
Barbed wire, 12 yards
.50
Antiaircraft searchlight
30,000.00
$100 to $1,000
90-mm. antiaircraft gun
40,000.00
$1 to $10
Scout observation plane
When this picture was taken, Dale Gulick was a
Submachine gun (Army)
150.00
(Navy)
41,000.00
23-year-old farmer living between Vinton and
Parachute
150.00
Advanced training plane
LaPorte City, Iowa. Then be sold his farm, in-
Arm splint
1.00
Horse
165.00
(Navy)
46,000.00
vested the proceeds of about $10,000 in War
Entrenching shovel
1.00
Submachine gun (Marine
155-mm. gun
50,000.00
Bonds, and joined the Navy "to free the world."
First-aid kit
1.50
Corps)
184.00
Pair of flying gloves
1.50
Amphibian tractor
50,000.00
Life float for 10 people
185.00
Medium tank
56,000.00
Blanket
2.00
5 fragmentation bombs
185.00
Steel Helmet with liner)
2.75
Depth bombs
187.50
$100,000 to $1,000,000
1 round for a 37-mm anti-tank
Mule
190.00
gun
3.50
Fighter plane (Army)
100,000.00
Lyle gun (Coast Guard)
226
5.00
eavy tank (60 tons)
120,000.00
2 leg splints
1,000 rounds of .50 antiaircraft
Pursuit plane (Army)
137,000.00
First-aid kit (Air Corps)
5.00
fire
240.00
Scout bombing plane
Navy raincoat
5.00
Calculator (Navy)
243.50
(Navy)
143,000.00
Life ring (Navy)
5.00
Pilot flying clothing and
Fighter plane (Navy)
165,000.00
Antitank shell
6.00
equipment
260.00
Light bombardment plane
Steel projectile
6,31
17 surgical beds
370.00
(Army)
175,000.00
Gas mask
9.25
Propeller for Navy training
Torpedo bomber plane
plane
375.00
(Navy)
188,000.00
$10 to $100
Diving outfit
375.00
Medium bombardment
Motorcycle
400.00
plane (Army)
200,000.00
Tent (Army)
10.00
60-mm. mortar
500.00
Transport plane (Navy)
250,000.00
Winter flying jacket
18.75
Motor trailer
500.00
Heavy bombardment plane
Field telephone
18.75
30 machine gun
600.00
(Army)
350,000.00
Principal items of a chemical
Bantam car (Jeep)
900.00
Patrol bomber (Navy)
735,000.00
Get in Line!
warfare protection outfit
(Navy)
18.75
$1,000 to $10,000
$1,000,000 and Up
BUY BONDS
81-mm. trench mortar shell
19.36
16-inch mast gun
1,000.00
2,000,000.00
Breeches buoy
30.00
Reconnaisance car
Subchaser (1,200 tons)
Wall tent Complete (Ma-
.50 machine gun
1,500.00
2,400,000.00
FOR DEFENSE**
Destroyer (1,800 tons)
37.50
81-mm. mortar
1,800.00
3,600,000.00
rine Corps)
Submarine (1,500 tons)
37.50
21/-ton truck
2,000.00
3,000,000.00
This poster painted by Fletcher Martin of the
Marine barometer
Cruiser (10,000 tons)
Kansas City Art Institute was a feature of the In-
40,00
Aerial camera
3,400.00
20,000,000.00
Battleship (35,000 tons)
stitute's Beaux Arts Ball which this year was
Cannister (Coast Guard)
70,000,000.00
dedicated to War Savings.
18 The Minute Man
The Minute Man 19
Regraded Unclassified
With the FIELD FORCE
New York Committee
atmosphere was provided by red
Represented in Army Day Parade
tablecloths covering long tables sup-
Two of the most attractive features
ported by wooden trestles.
of New York's big Army Day parade
Among the speakers at the dinner
were the units entered by the War
were: Honorary State Chairman
Gov. Herbert H. Lehman; former
Savings committee:
Two hundred uniformed girls-
Postmaster General James A. Farley;
members of the Retailers Volunteer
State Administrator Nevil Ford;
the Rev. Dr. Norman Vincent
Corps-sold War Savings Stamps to
Peale; Executive Committee Chair-
the spectators at the curb all along
man Bayard C. Pope; State Vice-
the line of march.
Chairman Helen H. Hull; Edward
The Minute Man float-pictured
on another page-was one of the
H. Letchworth, representing upstate
most beautiful floats in the parade
New York; Lewis E. Pierson, rep-
resenting downstate New York;
and was greeted with spontaneous
Thomas J. Lyons, representing the
applause as it passed by.
AFL; Gustave Strebel, representing
the CIO; Walter S. Gifford, rep-
Three of the many beautiful
New York WSS Leaders
resenting management; and National
War Savings floats which have
taken part in Army Day and
Hold Successful Conference
Field Director Robert W. Sparks
other patriotic parades. Above
MORE than 1,200 members of State
State Chairman Col. Richard 01
-Uncle Sam is at the helm of
the Ship of State in this Boat of
and local WSS committees from all
Patterson, Jr., was toastmaster for
the New York War Savings
parts of the State crowded the first
the occasion. G. Lynn Sumner,
Staff. Left-Treasury flag post-
ers were used on this Bost
State convention of the New York
chairman of the dinner committee,
made by|the General Outdoor
was master of ceremonies for an
Advertising Co., in Denver,
WSS. The first day was devoted to a
Colo. Below-The float which
series of instructional conferences and
entertainment program that included
led the Cincinnati Army Day
to a truly notable dinner meeting.
appearances of such celebrities as
parade.
Next day, the State headquarters
Tyrone Power, Cornelia Otis Skinner,
held "open house," where those
Janet Gaynor, Stylist Adrian, Lucy
attending from outside New York
Monroe, Mary Small, and B. A.
City had an opportunity to talk over
Rolfe with his "Daughters of Uncle
particular or individual problems
Sam" orchestra.
with State leaders.
Another interesting feature was
"You're in the Army Now", was
the appearance of the three well-
the feeling shared by WSS workers
known cartoonists, Otto Soglow,
when mess call was sounded for
Jolly Bill Steinke, and Billy DeBeck,
dinner at the Hotel Waldorf-Astoria.
who vied with each other in drawing
The menu was limited strictly to
heroic cartoons against the Axis in
Army and Navy rations. Mess hall
full view of the audience.
The Minute Man
21
20 . The Minute Man
Regraded Unclassified
Many Patriotic Rallies
May 13 Dorothy Lamour, Patsy
Garrett, the Ship-Ahoy girls, and a
Richmond
group of entertainers from Camp
THE RICHMOND, VA., War Savings
Lee staged a big show on behalf of
committee has had a full program of
War Savings at the Mosque Audi-
special events during recent weeks.
torium. Dr. Francis Pendleton
Parades and rallies were held to
Gaines, president of Washington and
launch the pledge campaign early
Lee and chairman, of the Virginia
in April.
War Savings committee, was the
On April 26 the Negro Division
principal speaker.
of the Richmond committee held an
During her visit to Richmond,
enthusiastic parade and rally.
Miss Lamour also spoke to a com-
On Navy Day the Richmond
bined luncheon meeting of all the
committee joined with the local
city's service clubs, made appear-
naval recruiting station in sponsoring
Bond parade in Lafayette, La.
ances and talks on War Savings at a
This mile-long patriotic demon-
a large meeting at which Helen
large number of factories, stores, and
stration was organized by the
Jepson, Metropolitan Opera star,
Women's Division of the local
schools; and led a patriotic rally on
WSS committee, Mrs. Helen M.
was the principal attraction. Ad-
the steps of the State capitol.
Moulton Landell, chairman.
mission to the highly successful
affair was free to all who purchased
In Spokane, Wash., 5-year-old
$1 worth of War Savings Stamps.
Virginia WSS
Rhoads, large Richmond department
Donald Claymen earns money to
Has News Letter
store, has converted one of its most
buy bonds by selling sand to be used
VIRGINIA has joined the large
conspicious show windows into a
in event of air raids to extinguish
This antractive bond and stamp booth in the
bond and stamp sales booth with a
window of the Miller & Rhoads store in Rich-
incendiary bombs.
group of States which issue regular
War Savings news letters to keep
door and steps heading down into the
mond, Va., may be entered from sidewalk.
members of their local committee
street. Governor Darden made the
informed of State policies and plans
first purchase.
A rooster donat-
and of progress being made in other
ed to a War Savings rally at Red Top
communities of the State.
was auctioned off, bidders getting
News of local activities is present-
their money back in War Savings
ed in a department called "Action
stamps. Originally bringing a dollars
Notes From the Field." Purpose of
he was sold several times, for a total
this department is explained as
of $112.59
Kiwanis Clubs in
follows: "These notes of things
NOT
Roanoke and Ashland each loaned
UNITED STATES
being reported here may stimulate
$200 to the school board to use as a
amst EMPS
HIM
your imagination to get out and do
revolving fund for the purchase of
likewise, or even better. Try to put
stamps for resale in the schools. The
some of these ideas to use in your own
Ashland Club estimates that the
community. Show this material to
local fund will be turned over 90
members of your committee."
times during the school year.
Here are a few of these action notes:
The Kiwanians in Fredericksburg
Members of the Fredericksburg Ki-
purchased a stamp for each child in
wanis Club have distributed 1,720
the public schools, made an elaborate
War Savings albums, each contain-
presentation, and promised to buy
ing one 10-cent stamp, to the students
the last stamp toward the purchase
in the public schools.
Miller &
of the first bond.
22
The Minute Man
The Minute Man 23
Regraded Unclassified
Six experts tell bow to
War Bond Sales talk
q Talking with people is much more effec.
speeches, but in fifteen years as a radio executive
tive than talking at them. 9 The audience
isten to thousands of them. Few men practice public
may be bankers or factory workers, busi-
the speech, as earnestly as they practice golf. It
nessmen or employees, parents or children;
lessons. It pays to rehearse a speech thoroughly,
I have had them all, and I always try to be
three or four times aloud before you deliver it.
simple and direct in my speech. 9 Look
alk on the radio, remember you are not talking to a
your best, relax, and give your message
at to two or three people in their homes. Talk as
from your heart. q This war is serious.
their sitting rooms. Avoid long words and long
Women, even better than men, know that
member that if you bore your listeners, or shout at
Women do not need elementary explana.
instantly dial you out. q If you can't take lessons,
tions of the "need" of money in wartime.
odel yourself on the best radio speakers. Those who
Women appreciate simple, matter-of-fact
people are President Roosevelt, Winston Churchill,
Practic
Talk with them"
plans for saving money on housekeeping
15, Ilka Chase, and others who have studied and prac-
Vincent Callabate
Dorothy Lamour
and other expenses. Budgets appeal to
jusly. The style used by Adolph Hitler is too ora-
Director, Press
Parament Film Star
everybody. Thrift is the most popular sub-
American radio audience. Talk to radio listeners as
Radio, WSS
ject in every American home today.
nfidentially as if you were in their homes with them,
q We hear hundreds of speeches these days. We remember
q The first essential is earnestness. If you have not
few of them. Why? Because their subject matter is all very
first sold yourself, you cannot sell others. Let your
much the same. People want new information, new chings
audience realize that you have bought the service or the
to think about, new courses of action to take to help win this
securities which you are selling. g In any human
war. g U.S. Savings Bonds have been on the market for a
dealings, warmth is more effective than coldness, a
year. Thousands of speeches have been made, millions of
sincere smile is better than a frown. Present yourself,
pamphlets, posters, and advertisements have been published,
on the platform, as a man whom every person in the
the movies have been full of the subject. Millions of men
audience would like to have as a friend, remembering,
and women have been spurred to buy bonds. But millions
of course, that to make a friend, you must be a friend.
more remain to be sold. What a chance for a great speaker!
q Do not read your speech unless absolutely necessary.
q When a great speaker on the subject of war investments
Know your subject so well that you need scarcely ever
rises in America, he will be interesting, so interesting that we
will hang on every word he says. He may discuss anything
Be earnest"
refer to the manuscript. Allow a pause after each
Be intere
that is pertinent to the subject, from the "fifth column" and
Richard
Gale F. Johnston,
sentence, so that the thought may sink in. You are
Vice Pres., Metropolitan
there to convince people. Talk in their own language,
the "sixth column" to improved methods of selling on the pay-
Chairma
New Yenk
Life Insurance Co.
and be sure that they feel that you are on their side-that
roll savings plan, but he will always be interesting.
you are taking an interest in their welfare, their problems.
q The best speaker can do little with poor material
speeches are at least ten minutes too long. If you are
Spend at least one hour in careful preparation for ead
to fill 20 minutes or 30 minutes, you must do so, but to
ten minutes you are asked to talk. Every word coust
four hearers' attention so long, you will need every
Every idea must be carefully weighed before you plan
of the trade. g What are the tricks? Well, Henry
it in peoples' minds. q If you wish to use a
Beecher did not hesitate to "sell" an actual girl from
story or an anecdote, be sure it is fresh and new to
boklyn pulpit when he was preaching for emancipation.
audience. Then they laugh with you, not at you. q
held up a bunch of ripe figs before the Roman Senate
in talking about War Savings Bonds and Stamps,
sid: "These were growing at Carthage yesterday, so
have one of the most serious subjects ever offered
the enemy to our walls!" q A lot of words, read
an American audience. The subject is twofold:
from a typewritten manuscript, are not worthy of an
and investment. Joking about either of these things
gent audience that wants action. Try for action on the
usually out of place. A few minutes of earnest, conviso
m. Give your audience something to look at, if possi-
"End soon"
Prepare'
ing exposition is far better than a whole hour of comes
Don't be afraid of pausing. Invite questions. Hold your-
Robert F. Sparks, Field
naturally as if you were conversing with your hearers,
Harford Powel, Consult-
q The better people understand the true nature of
ing Expert, WSS
Director, WSS
securities we are issuing, the more bonds and stamp
a time. As the old verse says: "Begin low, talk slow;
will they buy.
fire; rise higher; Wax warm, sit down in a storm."
Regraded Unclassified
Town Honors Own Hero
Chanbers, county WSS committee
Mid-West Town Blacks Our
Of Bataan
bairman. "The day proved," he
To Launch Bond Drive
"Aid Andy Week" was the slogan
rites, "that a great majority of the
A 5-MINUTE black-out heralded the
of Burlington, Wis., five-and-a-half-
people are hungering to do something
start of a period of intense effort
day bond and stamp drive. "Andy"
helpful for their nation, and don't
by the WSS committee in Waterloo,
is Sgt. Leroy Anderson, a Burlington
care whether the assignment is large
Iowa. Mayor Slippy, proclaiming
soldier who won fame for his heroism
or small."
the black-out declared:
in Bataan Peninsula. As a result of
Sally Payne, who plays feature roles
This country is at war. It is the first
his bravery under fire, he became
in western pictures, was the hit of the
time since the signing of the Declarations
This spectacular bond display dominates Capital
day, Her husband is an air-line
of Independence that this country has been
the first selectee to be awarded the
Distinguished Service Cross.
Square, Montgomery, Als.
official who formerly lived in Cut
threatened with invasion. It is a war in
Bank and she was flown in from
defense of principles upon which the
"Aid Andy Week" was proclaimed
American way of life is based, The out-
by Mayor Runkel to boost sales of
California especially for the day's
come of this war will decide whether the
bonds and stamps to new highs. It
events. Visitors were also delighted
government of the people, for the people,
with the attendance of a delegation
and by the people shall exist or shall perish
did. Inspired by the example of
their Number 1 hero, Burlington
of Blackfeet Indians and a group of
from the earth.
eight Canadian aviators who had
As citizens, we will be called upon for
citizens bought $173,116 during the
sacrifices to an extent that we never have
week. Record, to date, for a city of
been (ouring Canada for the Cana-
been before. The Government is calling
dian Victory Loan drive. The prin-
on every patriotic citizen to invest as large
4,411.
"Shoulder to the Wheel" is the message of this
cipal speech of the day was délivered
an amount of his income as he possibly can
poster panel designed for outdoor display.
Kiwanis International had 20,000 produced and
by E. G. Toomey, Helena attorney
in War Savings Bonds.
Record Sale of War Bonds
through its 2,000 local clubs is asking members
Our coastal cities are making prepara-
and chairman of the Lewis and Clark
On Army Day
and firms represented by members to provide
tions in earnest for protection against in-
showings.
County WSS Committee.
vasion and bombing by declaring official
As a feature of the Army Day parade
"We are going to urge every Mon-
black-outs. We in the middle west are not
in Pittsburgh, Pa., 25 large barrels
tana community to put on a similar
yet in a situation where this has become
Bond-Bardment Day
appropriately marked and decorated
celebration," writes Administrator
necessary. But, in order to impress upon
In Cut Bank
our citizens the necessity of doing every-
were placed at strategic points in
Bartley.
thing that we can for the defense of our
downtown Pittsburgh and these
CUT BANK, a thriving Montana oil
Nation, I hereby fix the time from 8 to
served as sales counters for War
town of 2,500 population, set the pace
Cally Payne arrives in Cut Bank for Bond-bard-
8:05 p. m. central war time, Tuesday,
ment Day and is greeted by Reuben Black Boy,
Savings Bonds. "Cash on the barrel
for the rest of Montana's War Sav-
Mrs. Buffalo Robe, and Chief Bull.
head The orders were solicited by
ings activities with its spectacular
Pittsburgh investment bankers who
"Bond-bardment Day," according to
reported that their sales on Army
Montana's WSS Administrator Wm.
Day totaled $3,500,000.
H. Bartley.
The Pittsburgh War Savings com-
Besides selling $30,300 in bonds and
mittee entered a large float in the
stamps, the day's events made the
Army Day parade and participated
occasion one that "excited more
in the demonstration and rally
interest and attracted more news-
which was held in front of the city-
paper, radio, and other forms of
county building. A feature of this
publicity than anything this town
meeting was the report made by a
ever did before," according to Dan
Pittsburgh school child that in 16
Whetstone, editor of the Cut Bank
weeks, War Savings Bond and Stamp
Pioneer Press and member of the
sales in Pittsburgh schools had
Glacier County WSS committee.
amounted to the magnificent total of
Mr. Whetstone developed the pro-
$1,000,000.
gram of the day with Mrs. G. E.
26
The Minute Man
The Minute Man 27
Regraded Unclassified
March 3, 1942, as the time for a patriotic
Reading Parades to Celebrate
black-out.
sales will be handled by the treas-
How To Sell Farmers
It is my suggestion that these 5 minutes
Opening of Victory House
and assistant treasurers of the
The Creamery Check Plan
of the black-out be spent in silent medita-
THE biggest Reading parade crowd
arious Federal Credit Unions in the
tion and prayer: Prayer that our armed
forces will have victory: that those who have
since the sesquicentennial celebration
community who have formed a
Up in Steele County, Minn., L. R.
Humes, county WSS committee
gone to the defense of our country may
in 1923, and the "whoopinger,
special committee for this purpose
cheeringest throng since the days of
and will rotate the responsibility.
chairman has found a way to sell
return strong in mind and unbroken in
the First World War" turned out to
They will be on duty each day
farmers on the idea of saving regu-
body; that those who are called upon to
pay the supreme sacrifice or suffer injury
between 6:30 and 8 p. m. and on
larly out of their monthly cream
checks to buy War Bonds. His plan:
may have the blessing of God; and that an
see the mounted and mechanized
everlasting peace will be the fruit of our
cavalry regiment from Indiantows
Saturdays during the afternoon as
sell the idea to members of the boards
endeavors.
Gap march with thousands of Beris
well.
Country citizens to celebrate the
The women's division, under Mrs.
of the creameries and get them to
sell the idea to their members. That
opening of Victory House and Bond
Lee Erdman, will recruit other vol-
Hawaiian Life Underwriters
unteer attendants. Defense prod-
the idea works is proved by these
Help Sell Pay-Roll Savings
Day in Reading, Penn.
The parade was a big affair,
ucts made in Reading will be on
facts: (1) all of the 20 creameries in
this county (population 20,000) have
DEPUTY Administrator John Snell re-
Hundreds of military vehicles of all
display and other attractions are
put the plan into operation; (2) 17
ports that the Life Underwriters'
kinds were in the line of march-
planned.
General chairman of the Berks'
creameries report 91 percent of their
Association of Hawaii has been very
horse vans, mobile field kitchens,
members-about 1,400 farmers-are
helpful in promoting the sale of War
County committee is Harold G.
repair shops, ambulances, trucks
signed up to buy War Bonds through
Savings Bonds in the Territory and
Evans.
bearing machine gun squads; SCOUL
creamery check allotments; (3) all
that in the month of March, sales of
cars, "jeeps," "peeps," motorcycle
creameries have pledged that they
$130,000 were directly attributed to
and many other types. As the Var-
will not be satisfied until they get
their efforts.
ious units passed the reviewing stand
100 percent enrollment; (4) creamer-
Hawaii life underwriters have been
an Army officer speaking over an
War Savings booth at the annual Hobby Show
ies have agreed to submit monthly
responsible for the installation of pay-
sponsored by the Flint, Mich., Junior Chamber of
amplifying system explained their
Commerce. Posters on the back drop are from
reports to Chairman Humes.
roll savings plans in two of the five
various functions.
the Oldsmobile Division of General Motors.
large sugar plantation agencies in the
Ray Bolger, movie comedian was
Territory-American Factors, Ltd.,
AWAY
guest of the city for the occasion
and Theo. H. Davies & Co., Ltd.,
He sang and danced, and spoke
and in many smaller business con-
the crowds to urge wholehearted
cerns.
support of the War Savings program.
War Savings booth at the Southwestern Stock
At least 35 local organization
Show, Fort Worth, Tex. Both bonds and stamps
participated in the parade. Some
were sold here by the Junior Women's Club.
entered floats, others delegations of
marchers. Boy Scouts carried plac-
ards bearing the names of local
business concerns whose employees
had earned the right to display the
Treasury's Minute Man flag.
Reading's Victory House is an
appropriately marked and decorated
store space on Penn Street. It is to
be the headquarters for all bond and
stamp sales promotional activity for
BUY
the duration, and both bonds and
stamps will be on sale there. Bond
28
The Minute Man
The Minute Man 29
Regraded Unclassified
Volunteers Help
A South Dakota County
With Chicago's
Publishes News Letter
Publicity Program
THE "Brown County Victory Her.
THE Chicago staff reports that a
ald" is the name of the news letter
large and able group of volunteers
published by the WSS committee in
are helping prepare press releases,
Aberdeen, S. Dak. It is "dedicated
house magazine articles, radio scripts,
to the loyal committeemen who an
and other publicity material. These
doing more than their share in the
men and women are from Chicago
promotion of the sale of war saving
banks, investment houses, insurance
stamps and bonds in Brown County."
companies, and other business or-
From this excellent little publica
ganizations. They work after office
tion-one of the best issued by any
hours in the evenings on a regular
city or county WSS committee-
schedule and their services have
learn that two townships in Brown
proved indispensable.
County are 100 percent-every lam-
Among the companies who are
ily is buying bonds
"Buy as
making a substantial contribution to
Extra Bond Week" is scheduled
the War Savings program in Illi-
80 of the 108 rural schools in the
nois are those which are providing
county are selling stamps.
full-time or part-time office help
on what they refer to in Chicago as
a "lend-lease" basis. Included in
Veteran Gives Away
the list of companies which are
10,000 Stamps
helping in this way are Swift, Ar-
Effective Publicity Boosts Sales
Chicago honors 10,000ch man to enlist in the
Navy! A view of the noonday ceremonies at the
IN BALTIMORE, LeRoy Lipman,
In Huntington, W. Va.
busy loop intersection of State and Madison when
mour, Illinois Bell Telephone, Peo-
the 10,000th man was publicly inducted into the
ples' Gas, Continental Illniois Bank,
World War veteran, has completed
THE Huntington, W. Va., WSS com-
Navy. Army and Navy officials and members of
a 'strange mission-giving away
the Illinois and Chicago WSS committees par-
First National Bank, and Hart
mittee reports these special events
ticipated. The WSS retail division stimulated re-
Schaffner & Marx.
10,000 25-cent War Savings Stamp
and publicity features in connection
tailers to create special window displays for this
The job was not hard, but it did
day and in other ways call sttention to this event.
with its recent efforts to boost stamp
take a lot of time, as when Mr.
and bond sales:
Catholic Groups Active
Lipman gave stamps he also ex-
Association Buys Stamps
Special flag awarded to the school
In Chicago
plained how to save stamps to buy
For Members
having the best sales record; weekly
STAMP and bond sales by Catholic
bonds and exacted promises that
goal of $100,000 established for sale
Instead of Bonds for Itself
parishes and clubs amount to nearly
those to whom he gave them would
of stamps; full page newspaper ad-
MANY organizations are investing
half a million dollars, according to
fill their albums and exchange them
vertisements for War Savings spon-
their reserve funds in War Savings
reports received and compiled by the
for bonds.
sored by local merchants; many
Bonds, and this is, of course, a famil-
Catholic committee of the Chicago
"I was a machine gunner in the
special newspaper features such as a
iar idea. Down in Giddings, Tex.,
WSS, which is headed by Homer J.
last war," says Mr. Lipman. "I
picture of the mother of a Hunting-
however, officers of the Germania
Buckley and Mrs. Leo P. Cummings.
figured this idea of giving away
ton boy who was lost on the U. S. S.
Mutual Aid Association decided
War Savings Bond committees
stamps to people in all walks of life-
Houston taking her change in War
there was another way in which to
have been established in all of the
salesmen, doctors, barbers, taxi
Savings Stamps at her grocery store;
help the War Savings program. At
councils of the Knights of Columbus
drivers, elevator men, etc., would
arrangements made for outlying com-
the suggestion of County Chairman
in the Archdiocese of Chicago, and a
help a lot. If all who accept albums
munities to compete for War Savings
Paul Nerger, they voted to use asso-
regular method by which purchases
from me live up to their promises,
Stamp purchase honors; a special
ciation funds to give every member
of members are reported to district
$187,500 will have been poured
"Aying squadron" organized to keep
four 25-cent savings stamps in an
and national leaders put into effect.
into Uncle Sam's war chest."
merchants well stocked with stamps.
album with a specially printed jacket.
30
The Minute Man
The Minute Man 31
Regraded Unclassified
Pie suppers revived. Jeff Woods, a
road locomotive bell in the lobby of
"Bonds Buy Torpedoes," is the slogan
professional auctioneer who has
be hotel where the dinner was held-
adopted by the War Savings com-
HIGH LIGHTS
banged his hammer on a halfs)
danged every time a sale hit the
mittee of Alexandria, Va. The local
million head of livestock during the
$100 mark-rang almost continu-
naval torpedo station is cooperating
past 30 years is helping the Poplar
ously Jack Dempsey and the two
with the War Savings drive by put-
Bluff, Mo., American Legion Por
MGM starlets, Jetsy Parker and
ting a torpedo on exhibition in the
Military equipment displayed. The
sell bonds to buy bombers. He
Dorothy Schoemer, who are now
business center of the city.
Business Men's Club in Portland,
auctions off pies, the high bidder
making War Savings tours, attended
Oreg., in cooperation with the local
being the one who will agree to
the dinner and helped boost bond
A dance which was arranged by the
War Savings committee and Army
buy the most War Savings Bonds or
junior chamber of commerce has
and stamp sales.
and Navy officials arranged a display
Stamps. "There is not much differ.
raised a small fund for incidental ex-
of military equipment. The display
ence," Woods reports, "in selling
Two hig "On to Victory" War Bond
penses for the Spokane WSS com-
was held on a Saturday afternoon in
cattle than pies, you use the same
rallies were held recently in Hartford,
mittee. Admission was 50 cents with
the Grant High School Bowl with
technique. As a matter of fact,
Conn. Edna Ferber, Raymond Mas-
tickets exchangeable for 25-cent War
thousands in attendance. The costs
I believe it is easier to sell bonds
sey, Walter O'Keefe, Clem Mc-
Savings Stamps.
of all items on display were translated
for this bomber than pigs for pork.
Carthy, Barry Wood, Mike Jacobs,
and Hoot Gibson were among the
The special cast of the Northern
into terms of $25 denomination War
Anyway it is a lot of fun. The
Savings Bonds.
people of the Ozarks, in the little
celebrities who participated. The
States Power Co., which is produc-
towns, and even those way back
Retail Trade Board cooperated with
ing the War Savings play, Mother
Parade. More than 5,000 persons
the Hartford WSS committee in
Buys a Bond, played to a large and
in the woods are anxious to help
witnessed the Victory Day parade
appreciative audience at Stillwater,
in any way they can to win this
arranging the program.
arranged by the War Savings com-
Minn., the other day-the inmates
war." At a recent pie supper in
mittee in Merryville, Tenn.
Gene Autry who appeared recently
at the State prison. The prisoners
Oak Grove, Mo., sales of War
in Cleveland, Ohio, with his rodeo
there have invested $25,000 in war
Bond cavalcade. Rutherford County,
Savings Bonds and Stamps totaled
was drafted by Percy W. Brown,
bonds.
Tenn., paid tribute to its famous
$1,382.35. One man paid $1,000
cochairman of the Cleveland War
daughter, Mrs. Douglas MacArthur,
for a pie baked by a woman who has
Savings committee to make a series
Community parties where various
with a "Mrs. MacArthur Bond
one son fighting in the Philippines
of appearances on behalf of War
games are played and war bonds and
Cavalcade" which has completed a
and another with the Pacific Fleet
Savings during the week in which he
stamps are given as prizes are being
3-day tour of middle Tennessee. The
Sgt. Alvin York, Dinah Shore, the
appeared there.
held regularly in Wilbur, Wash.
cavalcade began at Murfreesboro,
Vanderbilt University a capella
First, Harold Brown sponsored a
former home of Jean Faircloth Mac-
choir, a 25-piece orchestra, and a
The "Victory Day" bond rally in
cribbage tournament with a $25
Arthur and visited Chattanooga and
group of local radio stars appeared
Anamosa, Iowa, included displays
bond as the first prize. Aksel Peter-
Nashville as well as dozens of smaller
on the program of the "War Bond
of an Army parachute manufac-
son following suit with another crib-
towns. A band and a company of
Victory Rally" in Nashville, Tenn.
tured locally, an Army jeep from the
bage tournament. Ted Watts then
infantry accompanied the cavalcade
Free tickets to the big affair were
proving ground at Savanna, III., and
staged a billiard tournament. Other
which included several buses and
given to anyone who purchased
other pieces of military equipment
such affairs are planned for bridge,
many private cars.
$1 worth of War Savings Stamps
Taking part in the parade were Red
pinochle, golf, and horseshoe pitching,
at one of the leading retail stores
Cross nurses, Boy Scouts, Cub Scouts,
and there is talk of an old-fashioned
Colin Kelly Day. Captain Kelly's
in the city which helped finance the
school bands, etc. Retailers set up
spelling bee.
home town, Madison, Fla., named a
event.
special stamp booths near the display
day in his honor recently as part of
of military weapons, and members of
Service clubs in Wabash, Ind., are
the campaign to increase purchases
At the "Victory Scoop" dinner of
local women's clubs provided volun-
helping to promote the newspaper
of War Savings Bonds and Stamps.
Twin Cities Newspaper Guild in
teers to staff these booths. Persons
carrier-boy plan. Each week one of
Schools were dismissed early and a
St. Paul, Minn., more than $55,750
purchasing bonds or stamps during
these clubs has the week's star carrier-
big patriotic rally was held in Court-
worth of War Savings Bonds and
the day received small feathers to
boy stamp salesman as the honor
house Square.
Stamps were purchased. A rail-
weat in their coat lapels.
guest at its luncheon.
32 The Minute Man
The Minute Man 33
Regraded Unclassified
Since then
PAY-ROLL SAVINGS
events HAVE CHANGED!
AN
our shores have been attacked.
Urgent
our island possessions invaded.
our citizens killed.
our future threatened.
General Motors
soon as 100 percent of all worken
Launches Bond Drive
had signed up
Quota boards
APPEAL
Twelve noon, April 16 was "zero
were displayed in plants and of.
fices
hour" in the 93 factories, plants and
Red, white, and blue
in
offices of General Motors Corpora-
lapel buttons, auto windshield stick.
ers, posters and mailing pieces puls
OUR NATION'S
tion. At that time, rallies, mass
licized the "Save and Serve for
meetings and other special events
Victory" slogan of the drive
FIGHT
marked the beginning of an all-out
Fay Wray, screen star, spoke at the
company-wide drive to enroll every
bond rally of the GM plant in Tren-
FOR LIFE
America has changed from
GM worker in the pay-roll savings
A NATION AT PEACE TO
ton
The Governor of Indiana
plan.
A NATION AT WAR!
addressed the opening bond rally at
"Save and Serve for Victory," was
GM plants in Indianapolis
C
the slogan of the General Motors'
E. Wilson, president of General
war bond drive. For several days
Motors; Frank Isbey, chairman of
before the April 16 "zero hour" the
the Michigan War Savings commit-
TODAY
and
letters SSV on plant bulletin boards,
tee; and J. M. Jerpe, director of the
The cost of the nation's
special posters and banners, and
GM bond drive addressed three
VictoryArmament Building Program
General Motors and
other likely and unlikely places
large rallies in the GM building in
is reaching
aroused great interest. Within a
General Motors employes
Detroit on the opening day of the
STAGGERING PROPORTIONS
short time everyone was asking,
drive.
will
"What do the letters mean?" This
In 2 days, 65 percent of the entire
From Dawn til Dawn
advance "teaser campaign" was a
every 24 Hourt
GM organization numbering more
OUR NATIONAL
great publicity build-up for the
than 230,000 had signed up and 9
WAR EXPENDITURES
drive.
CURRENTLY
of the company's 93 plants and
SAVE
AND
Other highlights: The unveiling of
Approximate
offices were 100 percent! By April
ONE HUNDRED SIXTY-SIX
honor rolls listing former employees
26, 10 days after the campaign began,
serve
MILLION DOLLARS
now in the armed services was a
97 percent of all employees had
Think ofit!ALMOST
VICTORY
FOR
feature of the opening of the bond
enrolled, 54 plants and units were
drive at many plants
To ac-
100 percent and all of the 39 other
$7,000,000
PER
complish the objective of 100 percent
plants and units had percentages of
HOUR
employee participation, division com-
participation of more than 90 per-
and the cost is steadily rising!
peted against division, plant against
cent.
plant, office against office, depart-
Hats off to General Motors' em-
Four of the series of fifty large charts used to present purposes and procedures of
ment against department and shift
ployees and to the members of the
General Motors bond campaign to drive chairmen and canvassers.
against shift
Special red, white
War Savings committees in the
and blue banners were awarded to
plants and offices who conducted this
each unit, department or office as
successful sales drive!
34
The Minute Man
The Minute Man 35
Regraded Unclassified
To help achieve this new goal, I am send-
General Electric
ing you herewith the story of one successful
Grassic
BOND
DRIVE
Drive Described
method for accomplishing this. This is the
General Motors Start
Exces business firm in the United
first of a series of "case histories" which we
hope to send to you from time to time.
Bond Drive with
States employing as many as 100
This campaign conducted by the General
Mass Meeting
persons has received from the Secre-
Electric Co. has not succeeded in reaching
tary of the Treasury a copy of the
our new goal, but it seems to me that it is
Enthusiastic rallies like these launched
pamphlet issued by the War Savings
along lines such as here outlined that we
can most quickly and simply succeed.
war bond drive in plants and officers
General Motors. At the left, Chevrole
Staff to describe the pay-roll savings
bond campaign of the General
Here are a few highlights from the
bond committeemen in General Ma
tors' Philadelphia zone get inform
GE pamphlet: Each employee was
tion on the bonds preparation .
Electric Co.
signing up fellow workers: below,
During the first weeks of the war
solicited individually to make sure
Diesel Engine Division, Clevelest
employees of this company launched
that he understood the bonds, the
employee rally at the plant of de
Ohio. Workers in foreground am
a well-thought-out campaign to en-
pay-roll savings purchase plan and
the reasons for buying bonds regu-
the "Remember Pearl Harbor" poste
roll every worker as a regular pur-
of the UAW.: one of a series of this
chaser of war bonds. By December
larly
The solicitor organiza-
meetings in the auditorium of the
General Motors Building, Detroic
31, 83 percent of the firm's 121,270
tion was set up by "drive chairmen"
employees were making regular pay
appointed in each factory or office
CTORY
BUID DRIVE
allotments to buy bonds and had
by the local manager. Drive chair-
TORY
men selected "captains" for each de-
pledged themselves to invest more
than $130 apiece during 1942.
partment; captains selected "lieuten-
In the firm's largest plant-the
ants" and lieutenants selected solici-
Schenectady works-more than 93
tors.
Each solicitor was asked
percent of all employees signed up.
to call on about 20 fellow employ-
How these results were achieved
Ges.
The GE publicity de-
is told in detail in the pamphlet
partment prepared special material
which has been distributed by Secre-
for employee publications, posters, a
tary Morgenthau to business and
booklet of instructions for solicitors
idustrial executives, Government
and other materials.
Train-
executives, Congressmen, and many
ing of the solicitor organization began
others. In an accompanying letter
with the chairmen instructing their
the Secretary said:
captains, who in turn instructed their
The most effective, single method for
lieutenants, who in turn instructed
promoting the systematic purchase of
their solicitors
Before the can-
United States Savings Bonds is through the
pay-roll savings plan. I am writing to you,
vassing began all solicitors in the
not only to thank you for your helpful
factory or office were brought to-
cooperation up to date, but to ask for your
gether for final instructions and a
increased effort in the future.
"pep talk."
Each solicitor was
Time is short. The ever-increasing
demands of our war machine create an
given a definite list of persons to see
urgency that we cannot escape or evade.
and for each of these persons a pay-
To raise the billions which we now need
roll allotment authorization card on
to win the war, and to do all in our power
which the employee's name and loca-
to check inflation, we must raise our sights.
1 am suggesting, therefore, as a total or
tion had previously been filled in by
for those administering the pay-roll
company paymasters.
Day-
savings plan, that of least 10 percent of
by-day progress of the drive was re-
gross pay roll be set aside by the employees
ported and the entire campaign com-
for the purchase of United States Savings
Bonds
pleted in about one week.
36
The Minute Man
The Minute Man 37
Regraded Unclassified
Estimate 45% Enrolled
TOCY
ARC
DOING
Many Firms Advertise
the duty of making arrangements
PART
which will enable all civilian officers
in Pay-Roll Plans
beir Bond Records
and employees of the Government
During April, among the nearly
Employers and employees alike are
to purchase bonds through pay-roll
50,000 firms having a pay-roll sav-
proud when they have established an
savings.
ings plan, an estimated 45 percent
outstanding record of participation
Chairman and chief executive of
of all employees were saving to buy
in pay-roll savings plans. A great
bonds. This estimate was contained
LET'S
the Interdepartmental Committee is
BUY
DO
MORE
many business and industrial con-
Rear Admiral Conard, U. S. N.,
in Secretary Morgenthau's letter of
OURS
BONDS
rerns are publicizing the bond pur-
retired, who organized the efficient
April 25 to heads of firms employing
chase records of their employees in
and successful pay-roll savings plans
100 or more. "Considering the dif-
large newspaper advertisements. Ads
now in operation throughout the
ficulties involved in the initial in-
MONICO
I
u
Class
it
ABEJ5A
BIVER LC
of this kind give a boost to employee
REVES
11
United States Fleet and all naval
stallation of pay-roll savings plans,"
ORIEN
WATNEY S.M.
TRANTER
5
WASD
à
morale and also serve to stimulate
INSURSET 47
WHESLER
NA
LL
IA
shore establishments.
the Secretary wrote, "this is a good
KOLLAS KE
TESKE
11
WILCHS
WENT
4J
other groups to organize their own
The War, Navy, and Treasury
record. But we must go forward
bond selling campaigns.
An effective poster displayed throughout de
Departments have made pay-roll
now on two fronts: First, we must
offices and plant of the Chicago Distribution
To help promote this type of
savings possible for all of their em-
increase the percentage of employees
House of Western Electric Manufacturing Co.
advertising the War Savings Staff
ployees. Some other Federal depart-
participating in pay-roll savings
has prepared and sent to State WSS
ments and agencies have plans in
plans from approximately 45 percent
Participation Reports
headquarters a number of suggested
partial operation and some inde-
to at least 90 percent of the total
Being Compiled
lay-outs together with accompanying
pendent establishments have set up
number. Second, encourage all par-
copy and photoprints. With this
All companies employing as many
plans. However, in the near future,
ticipating employees to increase their
material, each State headquarters
as 10 persons and operating a pay.
every person on any Federal pay roll will
average monthly allotments from
can develop an advertising program
about $7.50 per capita to an average
roll savings plan are being asked to
be able to buy war bonds in the
to publicize outstanding War Savings
of nearly $20 per capita."
report at regular intervals direct to
convenient pay-roll savings way.
records.
the Treasury Department in Wash-
Suggestion to local chairmen: Has
A fish bowl was used to select the first concern
Advertisement prepared by War Savings Staff
in the Pintsburgh district eligible to By the Minute
which has been published by many trade papers
ington, the extent to which their em-
some firm in your town established a
Man Flag. The Peters Packing Co. is the name
a nd magazines.
ployees are participating in these
fine War Savings record? If so, sug-
Mayer Scully is drawing from the bowl contain-
ing the names of 105 other 90-100 percent con-
plans and the amounts which the
gest that it publicize this record in its
cerns. M. H. Weidner, life underwriter chairman
are saving regularly to buy war bonds
newspaper advertising. If the firm
of the pay-roll savings division of the Allegheny
County WSS committee. holds the bowl.
State WSS administrators receive
would like to use copy and lay-out
copies of the reports submitted by
prepared for just this purpose by the
concerns in their respective States,
Treasury Department, secure this
and from these can follow the prog-
material from your State adminis-
ress of the pay-roll savings plan
trator.
The reports show in which com-
panies follow-up work is needed and
New No the Stare and Stripes
in which companies workers and
Pay-Roll Savings
AS PROUD A FLAG AS INDUSTRY CAN FLY
management deserve congratulations
For All Federal Employees
for their war savings achievements
These reports are the basis for the
AN EXECUTIVE ORDER, signed by
general summary reports on pay-roll
President Roosevelt April 16, estab-
savings, for the country and for
lished in the Federal Government
particular industries, which are pre-
the "Interdepartmental Committee
pared at intervals by the Division of
for the Voluntary Pay-roll Savings
Research and Statistics of the Treas-
Plan for the Purchase of War Sav-
imgs Bonds." This committee has
ury Department.
The Minute Man 39
38 The Minute Man
Regraded Unclassified
Women Can Win Award of Merit
New York State. Mrs. Gibbons is
training the girls, giving them their
emphasize the need for buying
WOMEN
assignments and has been instru-
bonds and stamps systematically, a
handsome award of merit signed by
mental in securing the colorful
patriotic pinafores.
Secretary Morgenthau will be pre-
In another part of New York City,
sented to any club or organization
which can show that 90 percent of its
in the Borough of Queens, two thou-
New York Women Develop
sand Victory aides are bringing War
members are buying bonds or stamps
Strong Organization Set-up
regularly. Groups should submit
Stamps within the reach of the man
on the street. Wearing conspicuous
WHEN Mrs. Lytle Hull was appointed
such proof, which may consist of
buttons reading "I Sell Defense
vice chairman of the New York State
signed pledges by the membership,
to the local War Savings committee.
Stamps," these Victory aides are
Defense-now War-Savings com-
mittee by Secretary Morgenthau and
The District of Columbia has its
doing a brisk business selling stamps
on subway stations, busses, street
put in charge of organizing the
own 100 percent pledge signing cam-
corners and wherever they go.
women in the State of New York, a
paign underway. In Washington,
complex organizational problem con-
D. C. an honor poster, designed by
fronted her.
Jean Wallace, daughter of the Vice
Miss Helen Iannicelli, an active member of New
With 7 million people concentrated
President, will be awarded to any
York's Retail Volunteer Corps, is shown here in
in New York City and another 7
women's organization showing 100
her RVC pinafore uniform. Sturdy pockets across
the (ront hold four denominations of war stamps.
percent participation.
The center one with button holds change securely.
million spread throughout the entire
State, she realized that an organize-
tional set-up would be necessary
Women Volunteers
which would successfully correlate
the activities of the two groups.
Join War Corps
One of her first moves was to ap-
To Sell Stamps
point Marion Miller, an able ad-
FUN-LOVING New Yorkers, seeking
ministrator, as executive head of the
"ief from the summer's heat at ball
organization. Their consideration of
helds, beaches, parks, and nearby
the difficulties involved led to Mrs.
Marian Miller, the executive head of the Women's
Division of the New York State WSS.
resorts will find that a spritely new
Hull's appointing two divisional
type of salesperson, hawking a vastly
vice chairmen. Mrs. Courtlandt D.
different product, has invaded the
Barnes was chosen to supervise New
siderable size, outside of New York
domain of the peanut and popcorn
York City and Mrs. Oscar Solbert
City itself, has a women's committee.
vendor.
was given charge of the up-State
Periodically local committees sub-
An army of retail store saleswomen,
area.
mit reports of their activities to their
wearing red, white, and blue striped
It was found practical to divide
county committees. County chair-
pinafores, and armed with War Sav-
this up-State area into eight districts
men submit these reports together
ings Stamps in all denominations is
which conform generally to the
with a report of their own activities
being assigned to cover all public
Federal Reserve districts, with a
to their district chairmen, and this
activities during the summer.
woman chairman for each of the
same pattern is followed through in
These salesgirls from New York
districts. These districts were then
all district and city committees. As
department stores have banded to-
subdivided into their constituent
a result at frequent intervals a com-
gether under the leadership of Mrs.
counties, 62 in all, each with a
plete picture of the activities of every
Douglas Gibbons, who is in charge
women's War Savings committee.
group in the State is placed before
of War Savings Stamp booth volun-
In addition, each city of any con-
the State executive committee.
leer- for the women's committee of
40 The Minute Man
The Minute Man 41
Regraded Unclassified
smally
incepting
the
children's
there is more to the War Savings pro-
their forces.
gram than war finance.
EDUCATION
children whose fathers are in the
The request was made in "A Pro-
med virvices could be asked to
gram for Colleges," prepared by the
the "first pledges" in each
Education Division, War Savings
Staff, in consultation with college
hool (If town.
Interviews could be arranged
presidents, leading educational or-
tween children and soldiers with
ganizations and the Office of Educa-
School Children Get Chance
Morale building is the chief pu-
hildren telling how they plan to
tion. Five copies of the plan were
To Sign Own War Savings Pledge
pose of this pledge. It is an answer
im the money to fulfill their
mailed direct from Washington to
to the schools' problem of how
A SPECIAL War Savings school pledge
ledges. Or reporters could simply
every college president in the country
(see illustration) is giving America's
keep their War Savings program
sterview selected children on this
with a letter signed by Secretary
school children a chance this month
active among students throughout
Radio possibilities here.
Morgenthau. Additional copies were
the summer vacation; and, because
sent to all State administrators for
to sign their own declarations of war
The school pledge should not be
it calls for no fixed amount of Sti-
onfused with the regular pledge
distribution to the local committees
against the Axis. Through WSS
administrators, the pledges have
ings, it offers to every child an equal
ampaign. It is quite different in
in the college and university towns
been distributed to all schools for
opportunity to "join up" publich
at the school pledge does not
within their States.
with his nation's war effort.
signing before the summer vacation
quire a promise to save a fixed
To make their War Savings pro-
begins. Each signer will be en-
Several suggestions for planning
mount, and that there are no
grams mean more to faculty and
the school pledge campaign were
uplicates, or other bookkeeping
students than just another drive, col-
couraged to take his pledge home as
made to State administrators in
etails. It should be made perfectly
lege presidents are asked to appoint
a visual reminder of the obligation
field memorandum last month. The
he has assumed toward his country's
ear to each community that a
separate faculty and student com-
included:
fight for victory.
chool pledge may supplement a
mittees that are fully representative of
egular pledge but does not take its
all segments of campus life.
Millions of school children are signing this
1. Arrange special pledge-signine
lace.
The faculty committees are asked
pledge.
ceremonies, possibly on a State-wide
to incorporate War Savings as a
"School Pledge Day (or week)
subject for study in economics, sociol-
These ceremonies should be simp
ogy, politics, and history classes: as
and dignified, accompanied by pain
ulleges Asked To Broaden
an activity project in speech and
ID
as
otic music and a pledge of allegiance
Their War Savings Programs
drama; as a recurring topic for dis-
(Is
to flag and country.
LEGE presidents throughout the
cussion in forums, round-tables, radio
TO EVERY SOLDIER SAILOR
Nation have been asked by the
programs and meetings both on
AND MARINE was is FIGHTING
2. Publicity, including regular
NSS to make their institutions
campus and in the college town.
FOR MY COUNTRY
newspaper releases on plans for the
raining centers for faculty and
They are asked to train corps of
you there can as NO MIL
school pledge campaign in the State
tudent leaders who can explain the
faculty and student speakers who can
The ime there should de NO
vacation from the part y ran
and its progress. The dramatic po-
resent-day and post-war aim of the
address meetings at college and assist
play to help min the war. y
sibilities inherent in making the
Nar Savings program both on the
the local WSS committees to cover
therefore solemnly promite 16
continue to Any United Pata
pledge to members of the armee
timpus and in the college com-
all meetings in the surrounding com-
Mar Savings Stamps and Hends
forces, suggested several ideas for
munity.
munity. A major activity of the
" the limit of my ability, -
throughout my summer continue
publicity. For example:
More than half the colleges are
faculty committee will be to stimu-
and until our Victory a ww.
Groups of children could sign their
Mready selling stamps and the others
late participation in pay-roll savings
pledges in the presence of actual
report willingness to begin, but the
among all of the college employees.
soldiers, sailors, or marines. Or mis
WSS Willis them to do more than
Many colleges are already operating
pledge-signing ceremonies could M
devote their educational re-
pay-roll savings plans successfully;
arranged for the "last day of school
ources and influence to the task of
others use the pledge or group-agent
with Army, Navy, or Marine officers
helping everyone understand that
system.
42 The Minute Man
The Minute Man 43
Regraded Unclassified
STATES
SAVINGS
BANKING and FINANCE
All Louisville Banks
Honor Roll for
Operate Bank Draft Plan
Savings & Loan Associations
THE PLAN for purchasing War
AN HONOR ROLL has been established
Savings Bonds regularly by simply
for savings and loan association
authorizing periodic bank drafts on
cooperative banks, and homester
checking accounts has been installed
associations taking a significant per
in all Louisville banks. A standard
in the sale of war honds.
bank draft authorization form was
The Federal Home Loan Bank
prepared and printed by the Louis-
Review in May published a list of
ville Clearing House and distributed
member associations of the Federal
to all checking account customers
Home Loan Bank System which
along with the regular monthly
have sold an amount of War Saving
statements. In addition, the Louis-
Bonds equal to 5 percent of the
These Minute Men helped the Peoples Bank &
ville War Savings committee is mak-
assets. The Review will print à
Trust Co., of Vestfield, N.J., publicize its Victory
Club plan of buying War Savings Bonds. Mayor
ing a special effort to sell the plan
honor roll in each monthly issue
FINANCE
Fell at the window had the honor of being the
to all lawyers, doctors, and dentists.
placing a star after the name
first to enroll in the club.
Speakers have appeared before prac-
associations for each additional
rically all service and luncheon clubs
percent in sales.
HIGH LIGHTS
Sale of 30 million dollars worth of
war bonds in 1942 is the goal the
in the city to explain War Savings
The presidents of the 12 district
Ohio Credit Union League has set
in general and the bank depositors'
Federal Home Loan Banks will kg
for its members.
draft plan for buying bonds regularly
the Review posted on the us
The Fidelity Union Trust Co. of
All the banks in Cottonwood,
in particular. Several hundred busi-
records of their associations. The
Newark, N.J., has sold 32,000 U.S.
Minn., stayed open on a recent bank
ness and professional men have
also will enable the Review to pub
Savings Bonds during the past 12
holiday in order to sell War Savings
adopted the plan and its popularity
lish a citation list of association
nonths-approximately $13,000,000
Bonds.
is reported to be steadily increasing.
which have inaugurated comment-
worth The company has recently
First business firm in Richmond,
able war bond programs and provided
added 10 people to its staff to handle
Bank Sponsors
ideas for other associations. This in
Va., to sign up 100 percent for pay-
the growing volume of War Savings
roll savings was the First & Merchants
Essay Contest
will serve to honor some of the larget
Bonds sales.
National Bank.
associations which may have dife
PRIZES totaling $240 in War Savings
The Farmers & Mechanics Bank
Stamps were offered to school chil-
culty in obtaining the 5 percent
in Minneapolis has opened 18,000
Huge Minute Men panels and a war service Bag
ratio in the near future because of
dren by the First National Bank of
individual accounts for the purchase
dominate the lobby of the State-Planters Bank &
Trust Co., Richmond, Va.
their size.
Shreveport, La., for the best essays
of Savings Bonds. Sales of Series E
A recent issue of the Review CIT-
on the subject, Why We Should
Bonds by this bank amounted to
Buy War Bonds. The contest was
ried a story on one of the most com
$2,714,000 in the 10 months follow-
prehensive pay-roll savings plan
limited to students in Shreveport
ing Mar I, 1941.
developed by a savings and los
high schools and prizes were given
Even Federal Savings & Loan
association-that of the Harvey Fed
for the two best essays in each of the
Association in Florida has qualified
eral Savings and Loan Association
grades in each school,
agent for Series E Bonds.
in Harvey, III.
The Minute Man 45
44 The Minute Man
Regraded Unclassified
The Fall of France
back of their Maginot Line,
and national unity in France did
that they had no security;
not have the time to assert itself.
By KARL M. RICHARDS
were panie stricken. Millions
In just 37 days the French country-
(Them left their homes in the cities,
side was completely overrun by the
The Deputy WSS Administrator for Vashington per-
and farms of northern
German panzer units. France was
II
sonally witnessed the French military debacle in
1940. Here is bis story of this catastrophe as be has
told it to many War Savings meetings in bis State
I
France, poured out onto the roads,
forced to capitulate to avoid un-
blocking the military, fighting to
necessary slaughter.
each safety toward the south. As
If I were to tell you that 5 months
the German blitzkreig swung down
after the declaration of war in
I WAS a witness to the fall of France
to divide France and her
the Somme Valley, these civilians
France, less than 20 percent of the
and I believe that we in America
England, and appealing to &
can learn many lessons for which the
were caught in the path, and thou-
French people were buying Govern-
French prejudice against war. The
French have paid a horrible price.
ands of innocent women, children,
ment bonds to support the war
knew that the prevailing feeling
Many people feel that France fell
and noncombatants were slaughtered
effort, you would say "No wonder
France was peace at any price.
with their soldiers. 1 was caught in
France fell." Unfortunately, how-
because she was a decadent nation;
The most effective attack on Frend
this hlitzkreig and was an eye witness
ever, this statement does not apply
because the French people have many
national unity, however, was a im
these horrible killings. 1 can
to France but to my own United
weaknesses. In my opinion this is
clever campaign launched to full
issure you that no man, woman, or
States of America. Less than 10
a most unfortunate approach to the
French into a feeling of false MI)
hild is spared in modern total
million Americans have purchased
problem. I believe that France fell
rity just as we felt about June
warfare
bonds and at least 50 million are
because she suffered from the in-
before Pearl Harbor. The Germa
The second point which I wish to
financially able to do so. This is
herent weaknesses of any democracy
strengthened the belief, by mas
emphasize is this: when the French
an alarming picture. Something
at war. I am alarmed to find that
little tricks, that France was ne
realized the danger they moved to-
must be done about it.
here in America we are making many
back of the Maginot Line and the
ward the strength of which democra-
Please do not misunderstand me;
of the same mistakes which the
Germany could be starved out with
ties are capable when aroused in
I have every confidence in the
French made; we are suffering from
an economic boycott. The sam
line. They replaced General Gam-
American people. If they see the
the same weaknesses inherent to a
tactics Japan used against us.
inwith General Weygand, the strong
picture, if they know what they must
democracy because democracies are
Feeling that they were secure bad
man of the army. Paul Reynaud
do and what is expected of them
not primarily designed for war which
of the Maginot Line, the Frem)
neted reorganizing and strength-
and the reasons why this must be
they hate and try to avoid.
people indulged in all the luxuries
ning his Government. Labor and
done, there is no question as to their
Let me emphasize one or two points
a peacetime democracy. Frest
capital forgot their selfish fight
response.
with respect to the fall of France.
labor campaigned for higher was
and the entire French nation con-
First, when war was declared on
French capital for greater profis,
centrated on national security. It
This "duo-motion" illuminated, painted bulletin
September 3, 1939, the French
board, 55 feet in length, is one of the most dra-
and French politicians used the
was (00 latel General Weygand did
matic War Savings advertisements to be seen any
nation for the first time in years
emergency to further their own per
nor have time to build the thousands
where in the country. It is located on the most
moved toward unity as all democra-
heavily traveled thoroughfare in Louisville, Ky.,
schemes. France was very much
of tanks and planes that he required.
and is a contribution of the Oertel Brewing Co.
cies do when outside danger is ap-
divided and confused when Hide
parent. The Germans, however, did
struck on the 10th day of May 1940
not attack as was expected. Ger-
In 4 days the German hordes hat
many had faced a united France in
DON'T LET THIS HAPPEN
overrun Holland, they had broker
1914-18 and did not relish a
through the fortifications of Belgium
HERE
repetition of this experience. She
and in 12 days, to the surprise of the
therefore launched a psychological
world and the dismay of the French
war to undermine French national
they cracked the little Maginot Line
unity, German planes flew over
at Sedan. As the German panzer
France and instead of dropping bombs
units poured into northern France,
they dropped propaganda designed
the French people, who had felt
46 The Minute Man
The Minute Man 47
Regraded Unclassified
Fighting Mad!
Condensed from Printers' Ink
I'm TALKING as an average citizen.
I'm saying, not what I'd like to tell
the country, but what I'd like to be
told.
OFFICIAL BUSINESS
WASHINGTON, D. C.
WAR SAVINGS STAFF
, Sure, I'm buying bonds. I'm pay-
TREASURY DEPARTMENT
ing taxes. I'm doing with less sugar.
But deep down inside, down where it
really matters, I'm all a welter of con-
fusion. It keeps me mopping my
brow when I ought to be clenching
my fists.
You understand? It's like this. I
want to be told-not to buy Defense
Bonds or Stamps. I want to be told
to buy War Bonds.
I want to be told-not to remem-
ber Pearl Harbor. I want to be told
to take Tokio, to bomb Berlin.
I want a positive program instead
of a passive one. I want to be told
something to fight for. I'm sick and
tired of having only something to
fight against. I want something to
do-not just to wait for.
I'm fed up with singing plaintive
songs. I want to sing battle songs.
Don't tell me there'll be bluebirds
over the white cliffs of Dover. Tell
me there'll be vultures and a deathly
silence over Berchtesgaden.
I want to sail against Germany,
against Italy, against Japan. If they
can sail against us and our allies, why
can't we sail against them?
I'm bored with keeping a stiff
upper lip-1 want to develop a stiff
uppercut. I'm tired of being made
00078 . , GOVERNMENT PRINTING OFFICE-1942
to feel sad. I want the experience of
being made to feel mad. Fighting
PAYMENT OF POSTAGE, -
mad.
PENALTY FOR PRIVATE USE TO AVOID
You get me?
-WALTER WEIR
48 The Minute Man
Regraded Unclassified
57
June 1, 1942
AAT
TO:
HAROLD N. GRAVES
SUBJECT:
PROGRESS REPORT FROM WAR SAVINGS STAFF
PAYROLL SAVINGS
The payroll War Savings Plan has now been installed
by 86,232 concerns throughout the nation. A total of 21,745,246
employees, or 62 per cent of the 34,800,000 employees of private
industry, federal, state and local governments now have the plan
available to them.
SERIES E BONDS
A tabulation, analysis and maps of Series E bond sales
in March is attached.
Two outstanding facts emerge from this analysis:
(1) New York is losing ground in relation to the other states;
(2) Iowa did an outstanding job in March. This latter obser-
vation may reflect the fact that there were several War Savings
rallies staged in Iowa in March by the Motion Picture & Special
Events Section of our staff.
RETAILERS
Four leaflets and bulletins explaining the activities
of the Retail Advisory Committee are attached. They are:
p
6/1/42
- 2 -
58
RETAILERS (Continued)
(1) The organizational set-up of the Victory
Display Committee for Washington, D. C. and vicinity.
(2) Copy of the latest issue of "Retailers for
Victory".
(3) Outline of the July promotional campaign among
retailers aimed at the selling of $1,000,000,000 in War Bonds
and Stamps during the month.
(4) A report to the "Commandos of Main Street"
which is & digest of the Retailers meeting at the Sherman
Hotel in Chicago on the 4th of May.
NEWSPAPER CARRIER SALES
Sale of ten-cent War Savings Stamps by the newspaper
carrier boys of 883 daily papers now totals 307,737,972.
This represents an increase of 13,203,909 ten-cent stamps sold
by the carrier boys since May 21.
A tabulation showing the total sales by carrier boys
over a seven week period is attached.
RALLIES
Adrienne Ames, screen star and radio columnist,
led War Savings rally for Ithaca, N. Y., May 22. Committee
reports her appearance materially aided quota drive.
Vera Zorina and Gloria Stewart, stage and screen
stars, sold $75,000 in War Bonds at Princeton, N. J., rally
April 29.
59
- 3 -
RALLIES (Continued)
Gloria Stewart and Wythe Williams, stage and screen
star and noted commentator, respectively, appeared at Bond
rally at Wilmington Advertising Club at duPont Hotel, Wilming-
ton, Delaware, May 8.
Vera Zorina and Allen Jones, stage and screen stars,
participated in War Savings rallies in Providence and Newport,
R. I. May 11.
Southernaires, one of the best known male quartettes,
covering Chicago, Cleveland, Pittsburgh, Hanover, Pa., Wheeling,
W. Va., Aliquippa, Pa., and Jamestown, N. Y. sold $31,000 in
Bonds and Stamps.
Three inter-racial rallies, Chicago, May 27; Detroit,
May 31, and New York City, June 3, with predominant negro
participation all doing great job for public morale and War
Savings. Olivia de Haviland, Marian Anderson, Paul Robeson
and Richard Crooks (in Chicago only) are the top personalities
in these events. Negro press reaction very favorable. Average
of 15,000 attendance.
"United Nations Day" celebration, Soldier Field, Chica-
go Sunday, June 14, expected to attract 125,000. Assistant Secre-
tary John Sullivan to speak. Stage and screen personalities,
headed by Binnie Barnes, Shirley Ross, Mrs. Pat O'Brien, with
Bob Hope as master of ceremonies, will make appearances.
- 4 -
60
RALLIES (Continued)
Chicago Herald-American is sponsor, War Savings will be
only government agency represented.
Edith Fellows, Juvenile star, appeared at Los Angeles
Manual Arts High School rally to promote War Savings.
Patricia Morison, screen star, appeared at Naval Air
Base, San Francisco. Local Committee reports big results.
Five hundred Hollywood autographed Stamp albums sent
to Portland, Oregon for War Savings promotion at rallies.
John Garfield and two other stars to appear at Portland
Rose Festival and participate in nation broadcast, June 10.
Judy Canova to make several appearances in Chicago
and Milwaukee for War Savings.
VICTORY WINDOWS -- Two stars a week now appearing at
I. Magnin Company store in Los Angeles. Grover Magnin has
invested $60,000 in Victory Windows for all stores in publicity
exploitation, uniforms for girls who deliver Bonds and Stamps
any place in the city and other expenses. He has set $5,000,000
as Victory Window quota for remainder of year.
VICTORY HOUSES Santa Monica, Cal., Victory House,
officially opened on May 23, Hollywood personalities in attendance.
Outstanding days at Los Angeles Victory House were
Victory Sunday Day, Will Rogers Day, L. A. Fire Department Day
and the appearances of Gypsy Smith, great evangelist.
Community Sing Through interviews, spot announce-
ments and broadcasts of the Lucy Monroe Song Fest, the following
Regraded Unclassified
61
- 5 -
RALLIES (Continued)
radio stations aided in promoting attendance at Lucy Monroe's
appearances throughout the South:
Stations WQAM, and WIOD of Miami, Fla.
Stations WSUN and WTSP of St. Petersburg, Fla.
Stations WMBR, WJAX, WJHP of Jacksonville, Fla.
Stations WMOB and WALA of Mobile, Ala.
Stations WJDX and WSLI of Jackson, Miss.
Stations WJBO of Baton Rouge, La.
Stations KRLD, KGKO and WRR of Dallas, Texas.
Stations KWKH and KTBS of Shreveport, La.
Stations WREC, WMPS and WMC of Memphis, Tenn.
Stations WAPI, WSGN and WBRC of Birmingham, Ala.
Station WIS of Columbia, S. C.
NEWSREELS All five newsreels now carry War Savings
message on release sheets to distributors like -- "Patriotic
Theatres Sell War Savings Stamps."
Payroll Savings Picture, now being filmed in Inter-
national Harvester Plants, soon to be completed. Prints will
be supplied all state offices.
CURRENT RELEASE Fox-Movietone News carries three
subjects dealing with War Savings. The end frame on this news-
reel now states "Back your fighting men -- buy War Bonds now!"
- 6 -
62
RALLIES (Continued)
MINUTE MAIDS . The M-G-M "Ship Ahoy" Girls are now
completing their tour of the nation. They have exceeded their
quota of $3,500,000 to buy a destroyer for the Navy.
PRESS
The amount of newspaper space devoted to the War
Savings program during May was the greatest yet achieved in
any one month. Pledge campaigns in a majority of the states
and the national quota campaign contributed in large measure
to the amount of publicity obtained. Copies of several news-
papers devoting entire issues to the War Bond Pledge Campaign
are attached.
The color comic "Small Fry", contribution of Al Capp,
noted cartoonist, to the War Savings Program, was published for
the first time Sunday, May 31 in approximately 85 of the nations
leading newspapers. It is estimated that the amount of space
which will be given this cartoon in the course of a year's time
will amount to approximately $500,000. This estimate is based
on circulation figures published by "Standard Rate and Data."
More papers are daily being added to the list publishing "Small
Fry."
Among the larger papers using this feature are: N. Y.
Journal American, Washington Star, Cleveland Plain Dealer,
Columbus Citizen, Deseret News (Salt Lake), New Haven Register,
Boston Globe, Detroit Free-Press, Akron Beacon-Journal, Chicago
Times, St. Louis Post-Dispatch, Dallas News, Fort Worth Star-
Regraded Unclassified
- 7 -
63
PRESS (Continued)
Telegram, Los Angeles Times, Seattle Times, San Francisco
Chronicle and Portland Oregonian.
Attached are Jumbo telegram blanks and a poster being
issued by the Postal Telegraph Company in behalf of the War
Savings Program.
Also attached is a copy of the Bridgeport, Connecticut,
Sunday Herald which in addition to carrying the full page pictures
on the War Bond Campaign also carried other material extensively
throughout the publication.
Attached is a copy of the current issue of the Satur-
day Evening Post which reproduces the citation award of the
Curtis Publishing Company by the Treasury Department. Also
attached is a list of 71 magazines, 62 of which have definitely
reported that they will use War Savings emblems on their July
covers.
LABOR PRESS
Attached are copies of the special labor news and
feature material sent to all New York newspapers in connection
with the New York State Pledge Campaign. Also attached is 8. copy
of the current issue of the Guild Reporter which tells of the
activities of Guild members in the War Savings Program.
FOREIGN LANGUAGE PRESS
A special story on the new $100,000 annual limitation
on series F and series G bonds was sent to 22 Foreign Language
newspapers.
A test distribution of copy is being made to determine
if editors prefer to make their own translations of our English
Regraded Unclassified
64
- 8 -
FOREIGN LANGUAGE PRESS (Continued)
copy, or if they prefer to have the articles sent them in their
own language.
RELIGIOUS PRESS
The current issue of "America", National Catholic
weekly devoted its whole back cover to reproduction of the
Minute Man and an appeal for War Bond sales. The entire back
cover of Catholic Digest, a religious publication similar in
format to the Readers Digest was given over to a War Bond ed-
itorial in the June issue.
An article entitled "How your church may profit
through War Bonds", was carried in the June issue of Church
Management. Other leading religious publications carrying
Bond appeals include the Christian Herald, The American He-
brew and The Criterion.
RADIO
New copy is being sent to all radio stations, spon-
sors, advertising agencies, and directors of women's, farm and
foreign language programs, on the 10% sticker and button cam-
paign. These announcements are scheduled for mailing on June
5th along with samples of the 10% sticker and a mimeographed
fact sheet explaining the promotion. Copies of these are at-
tached.
Arrangements have been made for special promotion on
the 10% club and button idea to be carried by the following radio
programs:
65
- 9 -
RADIO (Continued)
Lowell Thomas Sunoco News,
The Pepsi Cola War Bond Jingle contest,
Esso News,
Bulova Time Signal,
The BC Headache Powder
The Quiz Kids
A special Women's round table interview on the 10%
idea will be released to all stations.
A total of 783 radio stations out of the Nations 868
are now broadcasting "The Treasury Star Parade" series of pro-
grams three times weekly.
FARM PUBLICATIONS
We have been notified by 27 farm publications, with a
total circulation of 9,756,300 farm readers, that they are using
our advertising release in an early issue. An analysis of this
response is attached, showing circulation, the size ad to be used,
and the date of issue.
Also attached is a tear sheet from the June issue of
the Country Gentleman showing their reproduction of our citation
and their editorial comments on it.
BUSINESS PUBLICATIONS
Returns to date indicate that 366 publications with a
total circulation of 3,302,512 are running our current advertising
release. Returns are still being received daily.
66
- 10 -
COMPANY PUBLICATIONS
Primary returns indicate that 366 company publications
are using several of our prepared pieces for War Bond promotion
in their next issues.
67
TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION
DATE
JUN 1 1942
TO
Secretary Morgenthau
FROM
Mr. Haes M
Subject: Operation of the payroll savings plan in the ship-
building, aircraft, and railroad industries.
I am transmitting herewith tables covering the
operations of the payroll savings plan in large com-
panies in the shipbuilding, aircraft, and railroad
industries. These industries are three of the 1m-
portant ones in the country in which the average sal-
ary per employee is above the national average for
employees in companies with payroll savings plans.
The tables cover companies employing 40 percent of
the persons working in commercial shipyards, 50 per-
cent of the persons working in aircraft plants, and
80 percent of the persons working for the railroads.
These samples, it is believed, are sufficiently large
to permit generalizations to be made for these indus-
tries as a whole. The figures are not as current 2.8
we would like them to be -- May figures will not be
available for two weeks or 80 -- but they are entirely
adequate to bring out two important conclusions:
(1) Until the first of May, at least, the per-
centage of employees participating in pay-
roll savings plans in companies in the
shipbuilding, aircraft, and railroad indus-
tries was smaller than the national average
for all companies with payroll savings plans.
(2) The percentage of wages deducted for the pur-
chase of savings bonds was smaller than the
national average for the railroads; was about
the same 28 the national average in aircraft
companies; and was larger than average in
shipbuilding companies.
Summary figures covering the foregoing conclusions ap-
pear below:
# Ted this is what a
hoor can be done about HA it ???
Regraded Unclassified
68
Secretary Morgenthau - 2
Operation of Payroll Savings Plans
18 Ship-
17
National
building
Aircraft
39
Average
Companies
Railroads
Companies
Mar.
Apr.
Apr.
Mar.-Apr.
Mar.-Apr.
Percent of em-
52%
56%
46%
43%
35%
ployees partic-
ipating
Percent of pay
4.9%
4.9%
5.9%
5.0%
4.0%
of past employ-
ees deducted
Average monthly
$170.00
$170.00
$221.00
$207.00
$189.00
wage
Average monthly
$ 8.08
$ 8.31
$ 13.12
$ 10.33
$ 7.66
deduction
The companies listed in the table above have undoubt-
edly made some progress in extending their payroll savings
plans since the date of our last report from them. Their
progress would have had to have been rather considerable,
however, to have brought the industries, 28 2. whole, up to
the national average 2.8 it now stands.
Regraded
69
Operation of Payroll Savings Plans in
Large Shipbuilding Companies Reporting to the Treasury
April, 1942
:
:
Number
:
Percentage
:
Percentage of
:
Average
Number
:
:
of
:
of
:
Pay Deducted
:
Deduction
Name of Company
of
:
:
Employees
:
Employees
:
Per Employee
:
Per Employee
:
Employees
:
Participating
:
Participating
=
Participating
=
Participating
California Shipbuilding Corp
30,666
18,033
59
5.7
$ 16.48
Newport News Shipbuilding & Drydock
Company
26,745
16,848
63
7.1
13.02
New York Shipbuilding Corp
22,131
14,125
64
3.7
9.02
Sun Shipbuilding & Dry Dock Co
19,610
9,900
50
4.3
10.10
Seattle-Tacoma Shipbuilding Corp
13,445
782
6
6.7
14.30
Seattle-Tacoma Ship Yard
11,307
979
9
10.6
20.62
Todd-Bath Iron Shipbuilding Corp
11,000
2,000
18
5.2
8.50
Consolidated Steel Corp., Shipbuilding
Division
9,782
8,084
83
8.9
17.24
Gulf Shipbuilding Co
9,518
2,539
27
9.4
18.60
Delta Shipbuilding Co., Inc
9,000
8,000
89
6.2
13.75
Cramp Shipbuilding Co
7,468
4,197
56
7.4
14.37
Bath Iron Works Corp
7,010
3,476
50
5.3
11.89
South Portland Shipyard
7,000
450
6
2.7
4.67
Tampa Shipbuilding Co
6,532
1,688
26
5.7
11.78
Los Angeles Shipbuilding & Drydock
6,053
3,700
61
5.4
12.16
Alabama Dry Docks, Emergency Dept
6,000
150
5.5
10.00
Alabama Dry Docks, Repair Dept
6,000
500
8
5.1
16.00
Maryland Dry Dock Co
5,711
2,909
51
4.0
8.16
Total - 18 Companies Reporting
214,978
98,360
46
5.9
$ 13.12
Office of the Secretary of the Treasury, Division of Research and Statistics.
May 29, 1942.
Regraded Unclassified
70
Operation of Payroll Savings Plans in
Large Aircraft Companies Reporting to the Treasury
March - April, 1942
: Month
:
:
Number
:
Percentage
:
Percentage of
:
Average
:
of
:
Number
:
of
:
of
:
Pay Deducted
:
Deduction
Name of Company
: Latest :
of
:
Employees
:
Employees
:
Per Employee
:
Per Employee
: Report
:
Employees
:
Participating
:
Participating
:
Participating
:
Participating
Consolidated Aircraft Corp
Apr.
40,706
7,630
19
5.3
$ 9.17
Glen L. Martin Company
Apr.
40,000
9,062
23
4.7
10.66
United Aircraft Corp
Mar.
37,675
25,210
67
5.2
13.68
Lockheed Aircraft Corp
Apr.
33,814
10,921
32
3.9
7.92
Boeing Aircraft Co
Apr.
28,500
16,150
57
6.5
12.01
Curtiss-Wright (Buffalo)
Apr.
23,000
10,240
45
4.0
9.12
Vega Aircraft Corp
Apr.
19,295
4,470
23
4.0
8.05
North American Aviation, Inc
Apr.
18,425
14,148
77
4.2
7.32
Wright Aeronautical Corporation
(Lockland)
Apr.
13,545
13,017
96
2.8
5.15
Allison Engineering Division
Mar.
13,485
4,173
31
10.0
21.49
Bell Aircraft Corp
Apr.
12,000
4,800
10
4.9
9.38
Brewster Aeronautical Corp
Mar.
11,374
5,437
48
5.1
10.11
Curtiss-Wright (Caldwell)
Apr.
10,333
4,396
43
4.1
10.94
Curtiss-Wright (St. Louis)
Apr.
9,012
2,413
27
9.2
15.48
Curtiss-Wright (Columbus)
Apr.
8,391
2,591
31
5.1
10.93
Northrup Aircraft Mfg. Co
Apr.
7,742
4,492
58
5.2
9.35
Vultee Aircraft, Inc
Mar.
5,804
4,822
83
5.0
10.42
Total - 17 Companies Reporting
333,101
143,972
43
5.0
$ 10.33
Office of the Secretary of the Treasury, Division of Research and Statistics.
May 29, 1942.
Regraded Unclassified
71
Operation of Payroll Savings Plans in
Large Railroad Companies Reporting to the Treasury
March - April, 1942
: Month
:
:
Number
:
Percentage
: Percentage of
:
Number
Average
:
of
:
:
of
:
of
:
Pay Deducted
:
Deduction
Name of Company
: Latest :
of
:
Employees
:
Employees
:
Per Employee
: Per Employee
: Report
:
Employees
:
Participating
:
Participating
:
Participating
: Participating
Pennsylvania Railroad Co
Apr.
148,110
68,575
46
4.3
$ 8.60
New York Central System
Mar.
119,090
18,524
16
3.5
7.02
Southern Pacific Company
Mar.
58,994
8,896
15
3.8
7.54
The Baltimore & Ohio Railroad Co.,
Apr.
57.783
31,889
55
3.9
7.14
Atchison, Topeka & Santa Fe
Railway
Apr.
55,255
13,447
24
5.9
10.42
Union Pacific Railroad Co
Apr.
52,000
34,387
66
4.4
8.65
Illinois Central System
Apr.
37,807
24,000
63
3.3
6.01
Missouri Pacific Lines
Apr.
32,000
7,178
#
22
2.6
5.24
Louisville & Nashville Railroad
Company
Apr.
30,500
19,229
63
5.0
8.44
Chicago, Milwaukee, St. Paul &
Pacific Railroad
Apr.
30,301
16,825
56
4.0
7.75
Chesapeake & Ohio Railroad Co
Mar.
28,355
2,772
10
5.1
9.12
Chicago & Northwestern Railway Co.
Apr.
27,000
5,449
20
3.7
6.94
New York, New Haven & Hartford
Railroad Co
Apr.
26,624
2,843
11
1.7
3.10
Chicago, Burlington & Quincy Rail-
road Company
Apr.
25,894
11,270
44
5.3
9.73
Norfolk & Western Railway Co
Apr.
21,589
5,901
27
3.5
6.19
Rook Island Lines
Mar.
21,500
4,050
19
2,9
5.68
Northern Pacific Railway Co
Apr.
21,271
2,122
10
2.9
5.39
18
5.70
Reading Company
Apr.
19,000
3,382
3.0
Seaboard Airline Railway Co
Mar.
17,322
2,699
16
3.2
6.18
Atlantic Coast Line Railroad Co
Apr.
17,191
94
5
7.5
12.70
Texas & New Orleans Railway Co
Apr.
16,503
5,623
34
4.5
7.72
St. Louis-San Francisco Railway
Company
Apr.
15,892
5,194
33
4.8
8.83
Boston & Maine Railroad
Apr.
14,920
12,764
86
4.3
7.77
Delaware, Lackawanna & Western
5.80
Railroad
Apr.
14,820
7,300
49
3.4
New York, Chicago & St. Louis
Railway
Mar.
12,023
2,055
17
4.2
8.38
Central Railroad Co. of New Jersey
Apr.
11,500
4,700
41
1.5
2.99
Wabash Railroad Co
Apr.
11,372
3,349
29
2.5
4.70
Lehigh Valley Railroad Co
Apr.
11,270
3,074
27
3.9
6.88
Canadian National Railways
Apr.
10,814
2,981
28
4.0
7.00
7.68
Delaware & Hudson Railroad Corp
Apr.
9,084
2,104
23
4.3
Texas and Pacific Railway Co
Apr.
8,565
2,103
25
5.3
9.58
Denver & Rio Grande Western
Railroad Co
Apr.
8,350
4,700
56
5.6
11.06
(
Minneapolis, St. Paul & Sault
Apr.
7,539
6,135
81
3.2
6.57
Ste. Marie Railway Co
St. Louis, Southwestern Railway
Lines
Apr.
7,504
1,205
16
4.8
8.25
Nashville, Chattanooga & St.
662
10
2.9
5.29
Louis Railway Co
Apr.
6,600
Pere Marquette Railway Co
Mar.
6,330
960
15
4.9
9.57
Elgin, Joliet & Eastern Railway
Company
Apr.
6,100
3,160
52
4.4
8.57
Apr.
5,831
3,495
60
1.8
3.50
Alton Railway Company
Central of Georgia Railway Co
Apr.
5,470
2,565
47
1.7
2.99
Total - 39 Companies
Reporting
1,038,073
358,511
35
4.0
$ 7.66
Office of the Secretary of the Treasury, Division of Research and Statistics.
May 29, 1942.
Regraded Unclassified
Sales of United States Savings Bonds72
From May 1 through May 30, 1942
CONFIDENTIAL
Compared with Sales Quota for Same Period
(At issue price in millions of dollars)
Series E
:
Series 7 and G
:
Total
:
Actual Sales
:
Quota,
:
Sales
:
Actual Sales
:
Quota,
:
Sales
:
Actual Sales
:
Quota,
:
Sales
:
May 1
:
May 1
: to Date
:
:
May 1
:
May 1
: to Date
:
:
May 1
:
May 1
:
to Date
:
Daily
:
to
:
to
: as % of
:
Daily
:
to
:
to
: as 06 of
:
Daily
:
to
:
to
:
as % of
:
:
Date
:
Date
:
Quota
:
:
Date
:
Date*
:
Quota
:
Date
:
Date
:
Quota
1
$ 12.7
$ 12.7
$ 14.0
90.7%
$ 7.3
$ 7.3
$ 9.0
81.1$
$ 20.0
$ 20.0
$ 23.0
87.0%
2
11.6
24.3
25.7
94.6
7.9
15.2
16.0
95.0
19.4
39.4
41.7
94.5
4
22.3
46.5
47.8
97.3
10.3
25.5
29.5
86.4
32.6
72.0
77.3
93.1
5
8.9
55.5
57.8
96.0
7.6
33.1
37.1
89.2
16.6
88.6
94.9
93.4
6
18.4
73.8
70.5
104.7
15.6
48.8
49.8
98.0
34.0
122.6
120.3
101.9
7
23.2
97.0
84.0
115.5
12.1
60.8
60.3
100.8
35.3
157.9
144.3
109.4
8
17.2
114.2
98.0
116.5
6.4
67.2
69.3
97.0
23.6
181.4
167.3
108.4
9
14.5
128.7
109.7
117.3
5.6
72.8
76.3
95.4
20.0
201.5
186.0
108.3
11
23.3
152.0
131.8
115.3
8.1
80.8
89.8
90.0
31.3
232.8
221.6
105.1
12
9.4
161.3
141.8
113.8
4.6
85.4
97.4
57.7
14.0
246.8
239.2
103.2
13
15.8
177.1
154.5
114.6
9.0
94.4
110.1
85.7
24.8
271.5
264.6
102.6
14
16.9
194.0
168.0
115.5
7.7
102.1
120.6
84.7
24.6
296.2
288.6
102.6
15
14.9
208.9
182.0
114.8
6.8
108.9
129.6
84.0
21.7
317.9
311.6
102.0
16
14.3
223.2
193.7
115.2
5.2
114.1
136.6
83.5
19.5
337.4
330.3
102.1
18
24.3
247.5
215.8
114.7
9.4
123.5
150.1
82.3
33.7
371.1
365.9
101.4
19
9.8
257.4
225.8
114.0
4.2
127.7
157.7
81.0
14.0
385.1
383.5
100.4
20
13.7
271.1
238.5
113.7
11,2
138.9
170.3
81.6
24.9
410.0
408.8
100.3
21
19.4
290.5
252.0
115.3
10.6
149.5
180.8
82.7
30.0
440.0
432.8
101.7
22
19.1
309.6
266.0
116.4
7.1
156.6
189.8
82.5
26.2
466.2
455.8
102.3
23
14,1
323.7
277.7
116.6
4.8
161.4
196.8
82.0
18.9
485.1
474.5
102,2
25
23.8
347.5
299.8
115.9
9.9
171.3
210.3
81.5
33.7
518.8
510.1
101.7
26
13.1
360.6
309.8
116.4
7.9
179.2
217.9
82.2
20.9
539.8
527.7
102.3
27
15.1
375.7
322.5
116.5
10.1
189.3
230.5
82.1
25.2
565.0
553.0
102.2
28
16.9
392.6
336.0
116.8
6.9
196.2
241.0
81.4
23.8
588.8
577.0
102.0
29
15.8
408.4
350.0
116.7
10.7
206.9
250.0
82.8
26.5
615.3
600.0
102.6
30
13.4
421.8
350.0
120.5
5.7
212.5
250.0
85.0
19.1
634.4
600.0
105.7
fice of the Secretary of the Treasury, Division of Research and Statistics.
June 1, 1942.
Surce: Actual sales figures are deposits with the Treasurer of the United States on account of proceeds of sales of
United States savings bonds. Figures have been rounded and will not necessarily add to totals.
Takes into account daily trend within the week, but does not take into account the trend by weeks during the month.
COPY
Refer to File No. 103-A
73
TREASURY DEPARTMENT
Washington, D. C.
June 1, 1942
Office of the Chief
U. S. Secret Service
RE: Radio
38.180 Megacycles FM
Two-Way
Mr. Frank J. Wilson
Chief, U. S. Secret Service
Treasury Department
Washington, D. C.
Sir:
A Frequency Modulated Radio network is now being established
under the direction of yourself and Supervising Agent M. F. Reilly.
The installation and maintenance is handled by a Signal Corps
Detachment from the U. S. Army, under the lead of Lieutenant Colonel
W. A. Beasley.
The net began in Washington, D. C., and now comprises twenty-
five field cars, including the White House cars and the armored
cars used by the President, equipped with 35 and 50 watt mobile
gets. The fixed stations of 250 watts power are on the Reno water
tower and the State Department building. A receiver has also been
installed on the Post Office building. The main operating console
is located in the White House and is being installed in the basement
of the new East wing. Other consoles are in the Field Office of the
Secret Service, the office of M. F. Reilly, and the Bureau.
A device now in preparation will allow anyone to go on the air
through any telephone through voice-operated relay controls.
A 250 watt set has been installed at Hyde Park and will probably
be moved to the Vanderbilt estate or to some isolated building in
the immediate vicinity. This shift is caused by poor operating
location at the President's estate. It is necessary to establish
reliable two-way communication between the estate and New York City,
and this was not possible due principally to the lack of height at
the estate and commercial interference in New York. This condition
is being corrected. The 50 watt survey set installed in New York
City will be replaced with 8 250 watt set which will maintain con-
stant communication to Hyde Park and to all mobile equipment coming
within its range.
Regraded Unclassified
- 2 -
74
This mobile equipment includes two field cars in use by the
New York Office and the 50 watt set installed on the President's
train which communicates with New York when in that area. Another
mobile unit has just been installed on B. speedboat operated by the
U. S. Coast Guard out of New York and operating up to Hyde Park. The
New York installation is temporarily in the McGraw-Hill building at
42nd Street between Eighth and Ninth Avenues, and it is intended to
secure that site permanently. The set will then be remotely controlled
from the New York Office. It is possible that due to the high noise
level in the city it may be necessary to install one or more receivers
In strategic spots around the city in order to maintain constant com-
munication between the fixed station and mobile units.
Plans are now under way to install additional fixed stations of
250 watts in Philadelphia and possibly Baltimore in order that a chain
of communication may be operated from Washington D. C., to Hyde Park.
It will probably be necessary to train guards and agents in the opera-
tion of the stations.
An additional mobile unit is on order and is to be installed in
the car of Secretary Henry Morgenthau for his use when travelling be-
tween New York City and Fishkill and while at Fishkill. It is possible
that he may also communicate with other Secret Service cars which are
squipped while they are in the vicinity of Hyde Park.
A survey has been made and installation ordered for 8 permanent
station at Thurmont, Maryland, where the President plans to spend some
time this summer. A 250 watt unit will be installed at the camp and
two-way communication will be possible from mobile units to Catoctin
or Washington at any time. A switchboard similar to that at Hyde Park
will connect all the sentry booths which will be manned by Marines.
Included in the network in the Washington area are fixed stations
at the Tenth Precinct Police Station, Office of Civilian Defense, Fort
Meyer, Virginia, Army Engineers, and National Airport, Anti-aircraft.
Direct telephone lines paralleling fixed radio circuits feed into the
Signal Corps switchboard in addition to circuits from Army and Civilian
Coastal Defense and information centers from Norfolk, Virginia, to
Baltimore and Philadelphia. A line seizing device at this board will
also permit immediate warning of Secretary Morgenthau, Chief Wilson,
and others as soon as an emergency is flashed to the board. A 24-hour
watch is maintained at all fixed stations in the Washington area. All
fixed stations are independent of power failures, having been provided
with emergency power units.
No details have been overlooked in making the incoming warnings
and the outgoing notification the most accurate and fastest obtainable.
Within a few minutes of an actual warning, additional police and
Military Police will be at the White House or on the way, fire apparatus
Regraded Unclassified
75
- 3 -
will be in position, and a large and well-equipped force of Army
engineers will be on the way from Fort Meyer to clear away any
damaged areas and provide emergency facilities.
Low frequency amplitude modulated units of 50 watts are also
in operation at Hyde Park on the State Police frequency and on the
Army portable set frequency. A portable set frequency is likewise
in operation at Washington to maintain communication with the
Military Police Patrol around the White House.
Very truly yours,
/S/ George J. McNally
George J. McNally
Agent
COPY
Refer to File No. 103-A
76
TREASURY DEPARTMENT
Washington, D. C.
June 1, 1942
RE: Protection of the President
at his Hyde Park estate
Mr. Frank J. Wilson
Chief, U. S. Secret Service
Treasury Department
Washington, D. C.
Sir:
At the direction of Supervising Agent M. F. Reilly, I
proceeded to Hyde Park and supervised the details in connection
with personnel and the installation of apparatus used for pro-
tection. The principal piece of apparatus is an electric "eye"
system installed by the American District Telegraph Company of
155 Sixth Avenue, New York City. This sytem is now in operation
and appears to be working well. The system completely surrounds
the estate from the cross road running from the Library rear to
the Swan Cottage, westward through the woods to the apple orchard
and north to the road fork, then up the hill back of Plog's house,
north again to the estate boundary and then east to the rear of
the Library.
The beams of the eye are of the infra-red type and not
visible except in a direct line with the beam. They are also
crossed vertically and horizontally, using double beams and
mirrors SO that it would be very difficult to miss breaking
them. At the same time they are not subject to breakage by
small animals, leaves, etc. The mirrors are heated to prevent
alarms from fog or sweating. It is believed, however, that a
heavy fog will break the beam. The light source in the trans-
mitters is double and will stand from 90 to 95 per cent cut-off
without alarm. A synchronized motor operating apertures prevents
anyone from operating the beam manually while passing through
and thus defeating the alarm system. The system as installed
is the most modern and practical of its kind. The amount of
maintenance, however, and the cost of operation are not yet
determined and may prove to be considerable, since the estate
is removed from the city and the apparatus is fairly complicated
requiring expert service.
Regraded Unclassified
- 2 -
77
Alarm recorders are installed in the Secret Service main booth
in front of the house to the north and according to a ground plan
nearby, the area where the beam has been broken is immediately iden-
tifiable within 8. hundred feet or so in either direction. Beams run
from about fifty feet to two hundred and fifty feet roughly. The
longer ones being in the clear and the short ones in wooded or uneven
areas. Sentry booths are located near most of the beams, and it is
easy for the agent on guard in the main booth to phone to the agent in
the booth nearest where the beam has been broken to investigate.
When the President is not in residence it is the duty of the
guards to investigate the breaks which occur. The guard force at the
estate has now been increased to eight men with Glenn Hanlin appointed
acting sergeant. The men work three eight-hour shifts from midnight
to eight a.m., from eight a.m. to four p.m., and from four p.m. to
midnight with & thirty-two hour swing. Three men are on the midnight
shift. Sergeant Hanlin has a roving commission and will be there dur-
ing the day ordinarily and at night when conditions warrant it. He is
also to guard the estate of Secretary Henry Mor genthau, Jr., when he
is in residence at Fishkill. The guard duty is from about ten or
eleven at night to seven the following morning.
All guards are taking courses from the local Red Cross in First
Aid, and all are appointed Deputy Sheriffs of Dutchess County. In the
event of Sergeant Hanlin's absence for any reason, George Carnahan
has been appointed next in command.
All personnel at the estate have had air-raid instruction and 8.
pair of loud air horns mounted on top of the main booth will warn
everyone in the event of trouble. Fire extinguishers, both soda-acid
and carbon tetrachloride, are scattered throughout the house and in the
room housing the electrical apparatus. In addition, a small soda-acid
fire engine loaned from the CCC camp is in the garage ready for imme-
diate use. All personnel have been provided with gas masks and the
roof of the main house is supplied with sand and shovels for use
against fire or incendiary bombs. There are also stirrup pumps with
pails in several bathrooms on the top floor for use against fires.
The guards are armed with pistols with which they have been
trained and in addition are provided in the main booth with gas billies
and riot guns. All guards live in Rughkeepsie in rooming and boarding
houses or with their families, and transportation is by means of one
Government car furnished by the New York Office. Sergeant Hanlin also
has an official car.
There is no agent stationed at the estate, and investigations will
be conducted from New York. It is now felt that there is sufficient
personnel at the estate to handle all emergency situations. Outside
assistance is quickly available from the New York State Troopers,
Dutchess County Sheriff's Office, and the Poughkeepsie Police. An
agent from New York is available within two hours.
Very truly yours,
/S/ George J. McNally, Agent.
Regraded Unclassified
78
TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION
CONFIDENTIAL
DATE June 1, 1942
TO
FROM
Mr. Haas BA.
Secretary Norgenthau
Subject: The Business Situation,
Week ending May 30, 1942.
Summary
(1) National income payments rose substantially in April
and attained a new record annual rate of $108.6 billions. This
is more than $2 billions higher than the previous record set in
March. Inasmuch as income payments rose more rapidly than
living costs, estimated purchasing power of national income
payments also advanced sharply to a new high.
(2) Factory employment rose more than seasonally in April,
while factory payrolls advanced contra-seasonally to a new
record high nearly 2 percent above the previous month. Esti-
mated average weekly earnings of factory workers continued to
gain, and in mid-April stood about 26 percent above year-
earlier levels. Civil non-agricultural employment showed an
increase of nearly 400,000 over the previous month and totaled
nearly 40,800,000 persons.
(3) The lull in retail trade continues. Department store
sales during the week ended May 23, the first week in which
retail price ceilings were in effect, dropped 2 percent below
the corresponding week in 1941. Preliminary reports indicate
that retail trade last week was also slightly below year-
earlier levels.
(4) Due to sharp increases in prices of certain uncon-
trolled farm products and foods, the general price level has
retraced its recent moderate declines. Thus, as a result of a
gain of 0.2 point in the week ended May 23, the BLS all-
commodity wholesale price index again stood at the recent high
of 98.7.
(5) Prices of farm products in mid-May averaged 100 per-
cent of parity for the first time since January. Prices paid
by farmers advanced over month-earlier levels, but prices
received by farmers rose more rapidly than prices paid.
Regraded Unclassified
79
- 2 -
Further expansion in national income
Further expansion in national income payments during April
carried the annual rate of payments to a new record high of
$108. billions. This is more than $2 billions higher than
the rate of payments attained in March. (See Chart 1.) More-
over, it contrasts with an annual rate of $92 billions for
the calendar year 1941.
Income payments rose more rapidly than living costs during
April, and, 88 a result, the purchasing power of income pay-
ments reversed the trend of recent months and turned upward
to a new record high. (Refer to Chart 1.)
Factory payrolls still rising
The long upward swing in factory payrolls, which began in
the summer of 1940, reached a new peak in April as the result
of a further rise of nearly 2 percent over the previous month.
(See Chart 2.) Factory employment also expanded moderately,
and rose slightly above the previous record high of last
October. The gain in employment during the month was larger
than the normal seasonal expansion, while the gain in payrolls
was in marked contrast to a customary decline from mid-March
to mid-April.
Inasmuch as payrolls continued to expand more sharply
than employment, a further rise to a new high occurred in the
estimated average weekly earnings of factory workers. (Refer
to Chart 2.) By mid-April these earnings stood nearly 26 per-
cent above year-earlier levels and 45 percent above the levels
prevailing in July 1940, just before the extended rise got
under way.
Total civil nonagricultural employment in April reached
& new record peak of nearly 40,800,000. This total was nearly
400,000 higher than in March, and more than 2,500,000 higher
than in April 1941.
Farm income gains but rural sales decline
In addition to the gains shown in factory workers' earn-
ings, national purchasing power has been further swelled by
substantial gains in farm income. Thus, on the basis of pre-
liminary and confidential data, farm income in April ran more
than 43 percent above year-earlier levels, as compared with
8 year-to-year gain of 41 percent in the previous month. (See
Chart 3.) These large gains, of course, have been due largely
Regraded Unclassified
- 3 -
80
to the substantial rise in the prices of farm products which
has occurred during the past year.
Despite the continued high levels of farm income, rural
sales of general merchandise declined in April, and the gain
over the corresponding month of 1941 narrowed to 16 percent.
(Refer to Chart 3.) On a seasonally-adjusted basis, rural sales
dropped nearly 10 percent from March to April.
Sales of Sears Roebuck and Company in April were only
1 percent above the corresponding month of 1941. In connection
with this slowing up in sales, the Chairman of the Board pointed
out near the end of April that wartime restrictions in effect
were wiping out 6 principal lines of business with an aggregate
prospective annual sales volume of $100,000,000. The lines
mentioned were tires, refrigerators, washing machines, stoves,
radios and electrical appliances.
Department store sales below year-earlier levels
On the basis of recent department store sales figures, the
lag in retail sales volume has continued in May. Thus during
the first week in which the retail price ceiling was in effect
(week ended May 23), department store sales dropped 2 percent
below year-earlier levels. With the exception of the week
after Easter, when sales comparisons were distorted by the
later Easter week last year, this was the first time in 1942
that weekly sales figures fell below the corresponding period
in 1941.
Preliminary reports for the past week indicate that the
lull in retail trade continued. Thus Dun and Bradstreet esti-
mated that retail trade last week fell from 3 to 5 percent
below the corresponding week a year ago. Moreover, it was
reported that the recently-imposed price ceilings had stimu-
lated relatively little new business, and that "scare buying"
was not a prominent factor in the sales volume.
Cellings control quoted prices but not costs to consumers
The magnitude of the problem of administering the general
maximum price regulation has become increasingly apparent in
the third week of its operation. Clarification of its pro-
visions is going on continuously through supplemental orders,
direct rulings in individual cases, and meetings of OPA of-
ficials with the various trade associations. Nevertheless,
the numerous methods of evasion being brought to light indi-
cate that actual costs to consumers may continue to rise,
even though price quotations are stabilized.
Regraded Unclassified
81
- 4 -
Evasion of the price ceilings may take the form of con-
cealed increases or outright violations difficult to police.
Hidden price increases are taking several forms, according to
various press reports. Manufacturers may simply discontinue
their lowest-priced items, or a new grade at a higher price
may be substituted. The quality of the article may be
cheapened, resulting in an increase in real cost to the con-
sumer. Another scheme is to make a slight change in speci-
fications and then mark up the price.
More outright evasions of the general maximum price re-
gulation by meat packers have been disclosed. It has been
charged that unrepresentative sales were made in the March
base period in an effort to eliminate customary price differ-
entials; that the "highest March price" for better grades of
the same out were charged for inferior grades; and that the
same price was charged for local deliveries as for deliveries
at greater distances. The OPA promptly threatened to establish
a system of fixed differentials, or to revise downward the level
of maximum prices in the meat industry "in order to correct the
price rise, which is the real effect of disregarding price
differentials which prevailed in the past".
OPA acts to prevent evasions
It is recognized by the OPA that evasions of this kind
may nullify the retail price control program, and measures are
being taken to forestall them. Although there is no authority
to prevent the manufacturer from establishing a new product of
a better grade, the OPA does have the power to fix the price
of the new article. In the case of discontinuance of the
lowest grade of a product, the OPA has ruled that a manufac-
turer must show cause for his action. The OPA has indicated
that manufacturers and distributors may not refuse to sell
established merchandise in order to operate under a higher
ceiling price for a non-standard product. While the OPA can-
not prosecute if the distributor merely refuses to sell the
standard product, it can take action under the price control
act 1f a slightly different product 1s offered.
Manufacturers forced to use substitute materials at costs
higher than the materials used in March may not mark up the
price of the finished product. They may drop the product if
unprofitable, or follow the formula specified in the general
maximum price regulation and await an investigation by the
OPA. To forestall evasions in connection with the order
issued last week setting the prices of women's fall clothing,
the OPA has prohibited the adding of a new price line higher
than the highest price line in the base period.
Regraded Unclassified
82
- 5 -
Wholesale commodity prices move slightly upward
At the close of the first fortnight of trade under the
general maximum price regulation, the BLS all-commodity index
of wholesale prices again stood at its war-time high of 98.7
percent of the 1926 average, and 31.6 percent above its pre-
war level of August 1939.
With a gain of 0.2 point in the latest week (ended May 23),
the all-commodity index has risen 1.3 percent above its highest
level during March 1942. Sharp increases in prices of some
foods and farm products not subject to control, including
fruits, vegetables, livestock, and poultry products, accounted
for the advance in the latest week. The component food price
index in that week averaged 3.3 percent above its highest
weekly level in March.
Controlled prices stable; uncontrolled prices decline
The BLS price index of OR uncontrolled basic commodities
declined moderately last week, while the index of 20 controlled
commodities held practically unchanged. (See Chart 4.)
We have prepared a fan chart to show the price changes for
each of the OR uncontrolled basic commodities from December 6
(the day before the Pearl Harbor attack) to May 9 (the last
market day before wholesale price ceilings were imposed on
other commodities), and to last Friday, May 29. (See Chart 5.)
It will be noted that hoge and flaxseed have shown the
sharpest price gains since the Pearl Harbor attack, and that
hog prices have continued to advance since the general whole-
sale price ceilings were imposed. All other commodities in
this group, except barley, have declined during the latter
period. It is possible that price squeezes on various pro-
cessed farm commodities that are under ceilings will tend
somewhat to bring down farm prices.
Higher prices paid farmers in May; prices at parity
Prices of farm products as of May 15 averaged 100 percent
of parity for the first time since January. The Department of
Agriculture's weighted average index of prices received rose
to another war-time high of 152, as compared with 150 in
April, and 146 in March. Prices paid by farmers for goods
bought rose less than prices received for farm products.
Estimates by the Department of Agriculture indicate that
the maximum price regulations are now indirectly affecting
about 60 percent of the farm products entering into the index
Regraded Unclassified
- 6 -
83
of prices received by farmers, and that ceilings have been
placed on prices of about 75 percent of the commodities in-
cluded in the index of prices paid, interest, and taxes. As
a result of the ceiling price regulation, the Department ex-
pects that the parity index will not advance as fast as in
previous months.
The price movements for farm products as a group, and for
important individual commodities, from January to May 1942,
and in the years 1940 and 1941, are shown in Chart 6. The
rise in mid-May reflected chiefly increases in prices for
poultry products, fruit, and dairy products, -- principally for
butterfat. Apple prices rose slightly more than seasonally,
with carlot shipments sharply lower and storage holdings
40 percent below those of the previous year.
Freight carloadings decline due to drop in LCL loadings
Despite the heavy pressure on domestic transportation
facilities, freight carloadings have been declining since the
latter part of April, and in the week ended May 23 they fell
28,000 cars below year-earlier levels. This decrease has been
due to a sharp drop in less-than-carload traffic, which in
the week mentioned ran 66,000 cars under the corresponding
week in 1941. The decline in LCL loadings is due in part to
an order imposed by the Office of Defense Transportation at
the beginning of the month fixing a 10-ton minimum on merchan-
dise loadings under certain conditions, and effecting other
economies in equipment use. Among other influences 16 the
fact that many companies which formerly shipped small lots to
many different customers are now shipping in heavy volume to
one customer -- the United States Government.
Coal traffic on Great Lakes cut to speed ore shipments
In a further move to step up the shipment of iron ore
down the Great Lakes during the current shipping season, the
Office of Defense Transportation last week issued an order
blacing certain restrictions on lake shipments of coal. As
a result of the new regulations, effective June 1, it 1s
estimated that additional shipping facilities for the movement
of 2,000,000 more tons of ore will be made available.
Iron ore consumption in the first 4 months of 1942 was
13 percent higher than in the corresponding period of 1941.
Shipments of ore down the Great Lakes by the end of April
were 24 percent ahead of year-earlier levels, while stocks
of ore on hand at furnaces and Lake Erie docks were 22 per-
cent higher and approximated 21,000,000 tons.
Regraded Unclassified
NATIONAL INCOME AND ITS EQUIVALENT PURCHASING POWER
1939
1940
1941
-1942
DOLLARS
DOLLARS
Billions
Billions
Monthly
115
115
110
110
105
105
100
National Income
100
95
95
90
90
85
85
Purchasing Power of
National Income * *
80
80
75
75
70
70
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 s o N D J F M A M J J A $ o N D
1939
1940
1941
1942
*Besed on cost of living Index of B.L.S. Aug. 1939=100
84
Office of the Secretary of the Treasury
Chart 1
Division of Research and -
C-415-A
Regraded Unclassifie
FACTORY EMPLOYMENT, PAYROLLS AND WAGES
FIRST 6 MONTHS OF 1939 = 100, UNADJUSTED
1939
1940
1941
PER
1942
CENT
PER
CENT
220
220
200
200
180
180
PAYROLLS)
160
160
/it
140
140
EMPLOYMENT
120
120
100
100
AVERAGE WEEKLY EARNINGS
OF FACTORY WORKERS
80
J
M
M
J
$
N
J
M
M
J
S
N
J
M
M
J
$
N
80
J
2
M
J
$
N
1939
1940
1941
1942
SOURCE: B.L.S.
85
Chart 2
Office of the Secretary of the Treasury
Division of Research and Statistics
C - 414
Regraded Unclassified
FARM INCOME AND RURAL SALES OF GENERAL MERCHANDISE
JAN
FEB
MAR
APR.
MAY
JUNE
JULY
AUG.
SEPT.
OCT.
NOV.
DEC.
DOLLARS
DOLLARS
MILLIONS
MILLIONS
Form Income
Incl. Rental and Benefit Payments
1600
1600
1400
1400
1200
1200
1941
Est
1000
1000
1942
1940
800
800
1939
a
600
600
400
400
200
200
o
0
JAN.
FEB.
MAR.
APR.
MAY
JUNE
JULY
AUG.
SEPT.
OCT
NOV.
DEC.
PERCENT
PERCENT
Rural Sales of
Generol Merchandise"
275
1929-31-100 Unodj.
275
250
250
225
225
200
200
1941
175
175
1942
150
150
1940
125
125
1939
100
100
75
75
FEB
MAR
APR.
MAY
JUNE
JULY
AUG
SEPT
OCT
NOV.
DEC
Chart
*Dept of Commerce index of dollar sales of general merchandise a sed forms god rural area
86
Regraded Unclassified
Office of the
Treasury
WHOLESALE PRICES OF c8 BASIC COMMODITIES
Controlled and Uncontrolled Components
1941
1942
PERCENT
PERCENT
August 1939-100
195
195
190
190
185
185
8 Uncontrolled Commodities
180
180
175
175
170
28 Commodities
170
165
165
160
160
20 Controlled Commodities
155
155
150
150
145
145
140
SEPT.
MAR.
140
NOV.
JAN.
MAY
JULY
SEPT.
NOV.
1941
1942
87
Chart 4
Office el the Secretary of the Treasury
Division of Basearch - Statistics
Regraded Unclassified
PRICES OF 8 UNCONTROLLED BASIC COMMODITIES
Percentage Change December 6. 1941 to May 9 and May 29, 1942
PERCENT
«Hogs +42.2%
+40
+35
Flaxseed +35.4%
+30
+25
+20
Barley +/9.5%
+15
Corn +14.9%
Cotton +/3./%
Steers +12.2%
+10
+5
Butter +5.1%
o
Wheat -2.6%
-5 -
Dec.6
May 9
May 29
1941
1942
1942
88
Chart 5
Office of the Secretary of the Treasury
Division of Research and Statistics
P-243
Regraded Unclassifi
AVERAGE PRICES RECEIVED BY FARMERS: GRAPHIC SUMMARY FOR THE UNITED STATES
INDEX NUMBERS ( AUG. 1909-JULY 1914=100) =
175
175
175
ALL FARM PRODUCTS
GRAIN
COTTON AND COTTONSEED
150
150
150
1941
125
1942
125
125
100
100
100
1940
PERCENT
75
PERCENT
75
PERCENT
75
175
MEAT
DAIRY PRODUCTS
CHICKENS AND EGGS
ANIMALS
150
150
150
125
125
125
100
*
100
100
75
75
J. F. M. A. M. J. J. A. S. o. N. D.
J. F. M. A. M. J. J. A. 8. o. N. D.
J.
F.
#.
A.
M.
de
J.
A.
5.
0.
ai
D
ACTUAL PRICES
90
140
180
CORN
WHEAT
RICE
CENTS PER BUSHEL
80
120
150
1942
1941
70
67.2
CENTS PER BUSHEL
100
88.4
60
CENTS PER BUSHEL
120
80
90
81.8
1940
50
60
60
20
COTTON
WOOL
BUTTERFAT
CENTS PER POUND
15
12.4
CENTS PER POUND
10
CENTS PER POUND
40
40
30
30
26.3
5
20
18.3
20
12
HOGS
12
BEEF CATTLE
LAMBS
10
10
10
CENTS PER POUND DOLLARS PER 100 POUNDS
8
DOLLARS PER 100 POUNDS
8
6
6
DOLLARS PER 100 POUNDS
8
7.22
6
5.21
6.87
4
4
4
CHICKENS
EGGS
APPLES
16
40
CENTS PER DOZEN
110
14
30
96.0
90
12
CENTS PER BUSHEL
21.5
11.4
20
10
70
J.
F
al
A.
M
J
J.
A.
5.
o
N.
D.
J.
F.
M
A.
N.
J.
J.
A.
5.
0.
N.
D
J. F. M A M. 1. J. A. 5. o N. D. 89
9 Chart
. 8-YEAR AVERAGE. AUGUST 1900-JULY 1914
Regraded Unclas sified
General- 90
TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION
DATE June 1, 1942
Secretary Morgenthau
TO FROM Mr. Haas
Employment under the Work Projects Administration decreased
from 796,000 persons to 775,000 employed during the week ended
May 19, 1942.
Attachments
Regraded Unclassified
91
WORK PROJECTS ADMINISTRATION
Number of Workers Employed - Monthly
United States
Number of Workers
1939
(In thousands)
July
2,200
August
1,842
=
September
1,790
October
1,902
November
2,024
December
2,152
1940
January
2,266
February
2,324
March
2,288
April
2,092
May
1,926
June
1,665
July
1,701
August
1,691
September
1,704
October
1,779
November
1,821
December
1,878
1941
January
1,895
February
1,867
March
1,708
April
1,560
May
1,464
June
1,368
July
1,036
August
1,045
September
1,033
October
1,047
November
1,060
December
1,041
1942
January
1,032
February
1,023
March
923
April
840
Source: Work Projects Administration.
Monthly figures are weekly figures for the latest week of
the month.
They include certified and noncertified workers.
Regraded Unclassified
92
WORK PROJECTS ADMINISTRATION
Number of Workers Employed - Weekly
United States
Week ending
Number of Workers
1941
(In thousands)
October 1
1,032
October 8
1,037
October 15
1,040
October 22
1,044
October 29
1,047
November 5
1,050
November 12
1,056
November 18
1,058
November 25
1,060
December 2
1,063
December 9
1,060
December 16
1,055
December 23
1,046
December 30
1,041
1942
January 6
1,017
January 13
1,020
January 20
1,025
January 27
1,032
February 3
1,032
February 10
1,032
February 17
1,028
February 24
1,023
March 3
1,007
March 10
984
March 17
961
March 24
943
March 31
923
April 7
893
April 14
878
April 21
857
April 28
840
May 5
818
May 12
796
May 19
775
Source: Work Projects Administration.
Regraded Unclassified
93
WORK PROJECTS ADMINISTRATION
Number of Workers Employed
United States
Monthly W.P.A. Employment
Weekly W.P.A. Employment
1935
1936
1937
1938
1939
1940
1941
1942
1941
1942
1943
MILLIONS
MILLIONS
WILLIONS
MILLIONS
OF
OF
OF
OF
WORKERS
WORKERS
WORKERS
WORKERS
2.0
2.0
3.2
3.2
1.8
1.8
2.8
2.8
1.6
1.6
2.4
2.4
1.4
1.4
2.0
2.0
1.2
1.2
1.0
1.0
1.6
1.6
.8
.8
1.2
1.2
,6
.6
.8
.8
4
.4
.4
.4
2
.2
o
0
o
1935
1936
1937
1938
1939
1940
1941
o J F M A M J A 5 o N D J F M A M J J A 5 o N D J 1943 F
3
1942
1941
1942
Source Mort Projects Administration
Office e The Seven of the Treasury
--
- al - END Internal
Regraded Unclassified
94
TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION
DATE June 1, 1942
TO
Secretary Morgenthau
FROM
Mr. Thompson
The exchange of official personnel of the United States and
of the Japanese Government will get under way on June 14, 1942, when
boats will sale from New York and a Japanese port for the exchange
of this personnel at Lourenco Marques, in Portuguese East Africa.
So far as the Treasury is concerned, our people in Hong Kong, Kobe,
and Shanghai will be returned to the States, but the Philippine
personnel is not included in the exchange. The State Department has
advised us that the Japanese Government is unwilling to discuss the
exchange of Philippine personnel at this time.
Am
Regraded Unclassified
95
TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION
DATE June 1, 1942
TO
Mr. White
FROM
Mr. Hoflich
Subject: Report from Mr. Casaday on the British Voluntary Savings Campaign.
The appended cable from Mr. Casaday describes the voluntary savings
campaign in the West Midlands region, of which the regional headquarters
are at Birmingham, the important industrial city with an estimated popula-
tion of a million. Three-quarters of the population are said to be war in-
dustries workers and their dependents.
The following highlights are of particular interest:
1. Administration is being decentralized as rapidly as possible. The
West Midlands region is being divided into three districts, each in charge
of a district commissioner. In Birmingham, where administration has been
highly centralized, permanent sub-committees have been established to han-
dle (a) war bonds (large investors), (b) industries (to organize savings
groups in large industrial establishments), (c) schools, (d) street groups,
and (e) publicity.
It is emphasized that decentralization should be striven for at the
outset. If delayed it becomes increasingly difficult, as those in respon-
sible positions are apt to resist change which may diminish their authority
and prestige.
2. Great emphasis is being placed on the organizing of street groups,
the ward committees being allowed considerable latitude as to publicity, sel-
ling methods, etc.
3. Birmingham's Warships Week was featured by daily parades with a
different motif each day. The week began with Navy Day, which was followed
by City Day, Army Day, Merchant Navy Day, R. A. F. Day, Civil Defense Day,
Allies Day and Workers Day, each with appropriate exercises. It is admitted
people. that the parades, requiring much time and effort, probably reached very few
4. Some of those interviewed believe that in large cities intensive
city-wide drives are of limited utility. Consequently there is a growing
tendency to supplement such efforts by encouraging ward committees, factory
savings groups and other small units to hold special weeks of their own
when renewal of efforts 18 needed.
Regraded Unclassified
96
Division of Monetary
- 2 -
Research
5. Special campaigns by local ward committees feature neighborhood
parades, large indicators representing thermometers and speedometers, en-
tertainments and contests.
6. Individual factories, under the auspices of the industrial sub-
committee, have also staged special weeks of their own, using interdepart-
mental competition, bonus certificates offered by employers, appeals over
the plant loudspeaker system by fellow-workmen--preceded by popular music--
just before the lunch hour and quitting time. In one plant savings group
membership was raised from 25% to 75% of the employees, during such a spe-
cial week.
7. During the special weeks a better response is obtained when the
target is stated in terms of a specific object such as a bren gun or a
navigation instrument.
8. "Ready-made audiences" (such as department store and theatre
crowds) in Birmingham have not responded well to savings appeals.
9. Appeals to patriotism alone have not been very effective. More
successful is the appeal to personal security, although here (as in
Gloucester) some workers' groups resent this as an attempt to indoctrinate
them with the virtues of the capitalist system.
Workers have been found very responsive to the argument which stresses
the basic facts that (a) the war must be won, (b) to accomplish this end,
productive power must be diverted from consumption goods to war industries,
and (c) saving on an unprecedented scale is essential to both of these
premises.
Regraded Unclassified
97
WWM
PLAIN
London
Dated May 27, 1942
Rec'd 12:10 a.m.; 30th
SECRETARY of State,
Washington.
3001, Twenty-seventh
FOR SECRET.RY OF TRE.SURY FROM CASADAY.
Department's 1730, April 22 and Embassy's 2281
..pril 30 and 2391, May 5.
i. visit was made to Birmingham, Midland industrial
city of Estimated one million pupulation three quarters
of which are said to bE var industries workers and
their dependents. Birmingham is the regional head-
quarters of the WEST Midlands region comprising
Shropshire, Worwickshire, Hereford, Worcestershire
and Straffordshirs. Total population of this region
is Estimated at more than four million.
ThE process of decentralization referred to in
my telegram 2391 of May 5 is likewise being developed
as rapidly as possible in Birmingham and throughout
the West Midlands region. Originally the work in
this region was administered by n regional commissioner
and from three
⑉2⑉ #3001, May 27, 1942 from London
98
and from three to five deputy regional commissioners
to cover the five counties named above, Graduglly
it was found necessary to give the deputy commission-
Ero more and more help in the form of assistant
commissioners. The work is now being reorganized
in the following manner. The region has been divided
into three districts Each in the charge of a district
commissioner responsible to the regional commissioner.
The headquarters of these districts are: Birmingham
(district office to bE entirely separate from regional
office loonted in same city) Wolverhampton, Stoke,
Each district commissioner will have an appropriate
number of assistant commissioners and Each of the
latter will bE made responsible for a specified
portion of the district in which he works.
The considerations used in delineating the
districts and in assigning the portions thereof to
the assistant commissioners are: the number of towns
and localities to bE covered, the total population,
the density of the population, the number of savings
groups now in EXISTENCE. According to the plan now
going into operation the Birmingham district will have
nine assistant commissioners four of whom will cover
specified portions of the city of Birmingham. The
remaining five
99
-3-
#3001, May 27, 1942, from London
remaining five will cover specified outlying areas
Embracing from four to ten towns and containing 1941
populations varying from approximately 190,000 to 260,000.
Wolverhampton district will have five assistant
commissioners each responsible for six to nine towns
and total population varying from 54,000 to 278,000.
Stoke will have four assistant commissioners whose
assignments vary within roughly similar limits. The
objectives are to define the responsibility of each
paid worker and insofar as possible to give to all
of them tasks of roughly comparable over-all diffi-
culty. ..11 of the workers referred to above are of
course full time paid civil servents.
The preliminary tabular form illustrating the
above described organization will bE forwarded by
air pouch.
The same process of decentralization is now
being applied to the organization of the volunteer
work in Birmingham and other cities in this region,
but these efforts have been only recently undertaken.
It was pointed out that in any large city there SEEMS
to bE a "natural tendency" toward centralization
rather than toward a more Efficient and all-Embracing
organization
Regraded Unclassified
100
-4- $3001, May 27, 1942 from London
organization.
In Birmingham, for Example, the local committee
is said to "include Everybody in town". It meets only
two or three times per year and is said to bE of
limited utility owing to its Size and composition,
Consequently from the beginning of the present war
the burden of volunteer organizing fEll upon a few
individuals notably Sir Ernest R. Canning, Chairman
of the local committee and described as a person of
enormous Energy and ZEAL. The Chairman gathered
around him a more compact group known as the EXECUTIVE
committee which seems to function much as a local
committee would in a smaller locality. The Chair-
man also has developed a still smaller group of dependable
and able volunteer workers who function as a panel
of speakers and who aid him in organization and propa-
ganda work.
Recently, however, several new deportures have
been made. Five permanent sub-committees have been
Established responsible to the EXECUTIVE committee
and dealing respectively with war bonds (large
investors) industries (to organize savings groups
in factories and other large industrial establishments)
schools, street
101
⑉5⑉ #3001, May 27, 1942 from London
schools, street groups and publicity. Great Emphasis
is surrently being placed on the street groups sub-
committee. Under its nuspices ward committees are
being organized througout the city whose function is
to organize street and social groups. Infact the
street groups sub-committee consists principally of
the various ward organizers. Each ward committee is
allowed considerable latitude as to publicity, selling
methods and similar matters but is Encouraged to
confer with the street groups sub-committee, the
publicity sub-committee, the Birmingham local EXECUTIVE
committee or the regional office before Embarking on
new ventures. Also the ward committees are definitely
limited to the organizing of street and social groups
and do not work in the schools, industrial Establish-
ments or other fields EVEN though opportunity for
good work in these spheres may present itself. Such
work must bE referred to the local EXECUTIVE committee
or to one of the appropriate sub-committees.
The Birmingham loonl committee (really the local
EXECUTIVE committee) is alloted #2000 per year
(#2 per 1000 of population) for publicity and propaganda
work and administrative costs. Some of this may bE
made available
102
⑉5⑉ #3001, May 27, 1942 from London
schools, street groups and publicity. Great Emphasis
is surrently being placed on the street groups sub-
committee. Under its nuspices ward committees are
being organized througout the city whose function is
to organize street and social groups. Inf not the
street groups sub-committee consists principally of
the various ward organizers. Each ward committee is
allowed considerable latitude as to publicity, selling
methods and similar matters but is Encouraged to
confer with the street groups sub-committes, the
publicity sub-committee, the Birmingham local EXECUTIVE
committee or the regional office before Embarking on
new ventures. Also the ward committees are definitely
limited to the organizing of street and social groups
and do not work in the schools, industrial establish-
ments or other fields EVEN though opportunity for
good work in these spheres may present itself. Such
work must bE referred to the local EXECUTIVE committee
or to one of the appropriate sub-committees.
The Birmingham local committee (really the local
EXECUTIVE committee) is alloted #2000 per year
(#2 per 1000 of population) for publicity and propaganda
work and administrative costs. Some of this may bE
made available
103
⑉6⑉ #3001, May 27, 1942 from London
made available to the ward committee. is large propor-
tion of the literature, posters, Et cetera, are developed
and printed locally but there is available at all times
here and throughout the country a great variety of
attractive posters, leaflets and other literature
supplied by the national committee with space pro-
vided for over-printing by the local committees. This
latter device makes for cheaper printing costs,
maintains a high level of artistic and literary merit
and yet gives SCOPE for local ingenuity and makes
possible the USE of any specially Effective local
appeals. Samples of both types of posters and pub-
lications as used in Birmingham have bEEn promised and
will bE forwarded when available.
In response to questions it was brought out that
the decentralization movement in both national and
local organizations is being developed only after
2-1/2 years of war not because the need for it has
only recently arisen nor because the need is only
now being recognized but rather because the present
organization "just growed". By all means, it was
stated, decentralization should bE striven for at the
outset. The longer it is put off the more difficult
it becomes
104
⑉7⑉ #3001, May 27, 1942 from London
it becomes as persons who early assume responsibility
for a given area later resist change and resent any
real or fancied diminution of their authority and
prestige. During special weeks a special allotment
of ten shillings per 1000 of population is made. It
was Emphasized that many of the devices used in
smaller towns both for generating Enthusiasm and for
raising money for campaign EXPENSES are likely to bE
comparatively ineffective in & large city like
Birmingham if attempted on a city-wide basis. Con-
sequently the ward committees are given some of the
available funds and Encouraged to hold local or
nighborhood Entertainments, contents, socials and
the like and industrial establishments may also
have their own special notivities during the WEEK.
Descriptive literature pertaining to Birmingham's
city-wide Warships WEEK notivities is being sent by
air pouch. For the arousing of interest the chief
feature of these activities was n daily parade with
a different motif and to some Extent a different
sponsorship Each day. The WEEK began with Navy Day
and was followed by City Day, Army Day, Merchant Navy
Day, Royal Air Force Day, Givil DEfEncE Day, Allies
Day and
105
⑉8⑉ #300). May 27, 1942 from London
Day and Workers Day. On Each occasion there were
speeches, saluting ceremonies, demonstrations and
other activities accompanied by loud speaker commentary.
It was admitted that these parades may have been
somewhat overdone in that great Effort and much time
on the part of many people were required and that
probably "only a handful" of Birmingham's one million
people was renched, Owing to traffic difficulties
the parade route (which was almost identionl day
after day) was very restricted in relation to the
city area. In confirmation of this point I talked
with a considerable number of people who seemed to
have only the vaguest notion of the activities Engaged
in during Birmingham's Warships WEEK.
For the raising of money the Birmingham local
EXECUTIVE committee relied principally upon street
sales of flags, buttons and the like since Enter-
tainment and sociál activities could not bE utilized
Effectively on n city-wide basis.
The foregoing considerations have led some of
those interviewed to the conclusion that in large
cities city-wide special WEEKS while undoubtedly
worth participating in as a part of the national
program are of limited utility in producing concrete
results in terms of new savings and EVEN in terms of
new savings
106
⑉9⑉ #3001, May 27, 1942 from London
new savings and Even in terms of interest and
enthusiasm. Consequently there is a growing tendency
to supplement such efforts by Encouraging individual
ward committees, factory savings groups and other
small units to hold special WEEKS of their own
whenever the need for renewal of Effort is SEEN or
whenever the time seems appropriate. This is now
being made possible by the decentralized organization
described above.
Ward committees sometimes singly and sometimes
in competition with one or more nisghboring wards
have held special campaigns. Neighborhood parades
including local bands, school children clubs are used.
Indicators representing thermometers, speedometers,
Et cetera, are placed in neighborhood shopping centers
or at the principal street intersection in the area.
Local social activities, entertainments and contests
can bE used Effectively here. Individual factories
under the auspices of the industrial sub-committee
have also held special WEEKS of their own from time to
time. Interdepartmental competition bonus certificates
offered by Employers and other devies already reported
on are used. In one plant Effective USE was made of
the plant
107
-10- #3001, May 27, 1942 from London
the plant loudspeaker system. Just before lunch
hour and quitting time Enoh day for a WEEK the
loudspeaker system suddenly began braodcasting
popular music. This was followed by a very brief
appeal preferably by a workman or a well-liked shop
foreman, a different speaker being chosen on each
occasion. The special WEEK in this plant raised group
membership from 25% to 75% of the employees.
It was Emphasized that the task of holding group
membership is more difficult than organizing new
groups hence while it is well to stimulate competition
among campaign workers both paid and voluntary no
great premium should bE placed merely on the number of
groups organized. The percentage of the unit Enrolled
in the group and the consistency with which a given
level is maintained or improved should also bE taken
into account. The maintenanoe of group membership is
greatly facilitated by the decentralized organization
and by the holding of special WEEKS from time to time
by Each group whether the unit bE a school, a club,
a ward, a parish, a street or a factory.
In any of these sepcial WEEKS much better response
is obtained when the target is a specific object such
as a bren gun
Regraded Unclassified
108
-11- #3001, May 27, 1942 from London
na a bren gun, a navigation instrument or the number
of bombs that fEll on the area concerned during the
last blitz.
Two miscellaneous observations 18 reported by
persons interviewed and not covered in the foregoing
may bE of interest.
(1) "Ready-made nudiences" in Birmingham have
not responded WELL to savings appeals. Booths were
set up in large department stores in cinema foyers and
from time to time at special Exhibitions or other
gatherings. During my recent visit to Birmingham the
regional office was conducting a savings booth at a
large food Exhibition then in progress in the city.
None of these it was said sold Enough certificates or
provoked Enough interest to justify the attendant's
time.
(2) Appeals to patriotism alone have not been
very Effective (this was also reported in Gloucester).
More successful is the appeal to personal security after
the war although, again as in Bloucester, some workers'
groups resent this as an attempt to indoctrinate them
and give them a "stake in the country" so they will bE
content with the present capitalist system after the
war. Workers
Regraded Unclassified
109
-12- #3001, May 27, 1942 from London
war. Workers have been found very responsive to the
so-called "common-sense" or "Economics" argument
which stresses the basic facts that the war must
bE won; that to accomplish this End production
power must bE diverted from consumption goods to war
industries; and that saving on an unprecedented soale
is Essential to both these premises. Workers are
reported to show greater aptitude in understanding the
Economics of the argument, the necessity for prevent-
ing competition for consumer goods and the basic
nature of money as a mere symbol of the country's
productive resources than many middle-class and
upper-class groups.
For a time the appeals of fear, horror and EVEN
hate were tried but this provoked great opposition
throughout the community (and throughout the country
as will bE shown in later reports) and the effort
was dropped.
WINANT
EMB
TREASURY DEPARTMENT
110
INTER OFFICE COMMUNICATION
DATE June 1, 1942
TO
Secretary Morgenthau
Mr. Kamarck
FROM
Subject: Of Possible Interest: Russian Comments on American Tanks
(If you have not already seen the attached New York Times
item, you might find it of interest).
1. Two or three American tanks are already at the front receiving
battle tests.
2. One brigade (about 200 tanks) will be ready for the front lines
in a week. Several more brigades are being formed. The tank
drivers assigned are veteran drivers and take less than three
weeks to learn to use the American tank.
3. "To eyes accustomed to Soviet and British tanks, the American
machines looked surprisingly high
#
4. The tanks have gone through training tests extremely well.
5. One tank driver liked his American tank better than the Russian
machines.
6. Another thought the rubber tracks would be useful in winter
because they would not freeze overnight but would be too
tender for hard use.
7. One gunner was concerned about the narrow traverse of the
largest gun (300, compared to 360° of our new M4 tank).
8. The tanks possess good riding-qualities.
Regraded Unclassified
N. Y. Times - May 31,1942
111
tusian Unit of U.S. Tanks
seay-riding quality
American medium tanks had its
best testimonial in the fact that
Ready to Battle Germans
correspondents who insisted on
having B ride emerged unbruised
and in the good humor of kids fin-
ishing a trip on an elephant.
By RALPH PARKER
The Red Army's well-disciplined
and polite tankists kept straight
Wirston to THE New York Tuess.
faces with difficulty as the repre-
AT A RED ARMY TANK BASE, Ruasia, May 30-A brigade
sentatives of the American press
American medium and light tanks has been completed and it
clambered into blue overalls and
donned handsome ribbed crash hel-
be ready to go into line with Soviet and British tanks at the
mets.
within a week. Several other brigades are in process of
Henry Shapiro of The United
stom Two or three Ameri-
Prese and Henry C. Cassidy of The
tanks are already at the front,
Associated Press looked as much
lergoing real battle tests. This
like tankists as any journalist
sammander, Colonel Rodion
could. Leland Stowa of The
has not yet had news of them.
Shabalin, wearing the Red Banner
cago Daily News, Larry L
group of foreign newspaper
medal and Red Army twentieth
of the Columbia Broad
accompanied by Brig. Gen.
jubilee decoration, stepped forward
Service Robert Magidoff of
R. Faymonville, head of the
to greet his colleagues. Trained
Die National Broadcasting Com-
ed States supply mission, and
as a cavalryman and & participant
pany wore their uniforms with
cell James Hugo, heading the
In the civil war, Colonel Shabalin
dignity. But Walter Kerr of The
section of Lieut. Gen. F. N.
has handled tanks for twelve years
New York Herald Tribune, dia-
MO MacPariane's British mill-
and has fought against the Japa-
playing the legs of 8 ballet dancer;
mission, are on a visit to the
James E. Brown of The Interna-
nase, Poles and Firms since 1939.
bing ground where British and
tional News Service and your cor-
erican tanks, arriving from So-
Tanks High but Tough
respondent, wearing overalls much
perts. are put through their
To eyes accustomed to Soviet
too tight, caused ribald laughter
and Briltsh tanks, the American
when they took their places within
visitors were conducted by
machines looked surprisingly high,
or on the roofe of tanks, which
Gen. Ivan Lebedeff of the
presenting brond, tall faces studded
net off on a lurching furlong
with riveta. One was soon relieved,
Army engineers, a tall, spare
steeplechase over sandhills and
however, to find these big targets
who has been handling British
made of toughened steel and that
across various obstacles, finally
a since early last Fall and
the tanks' beavy armament La
smashing down 8 hetty pine tree.
Prican ones for the last few
capable of keeping the enemy at
Earlier In the day we had vis-
is It, was emphasized that
a considerable distance.
Ited a brigade of British Matilda
are sufficient American
Colonel Shabalin was guarded in
and Valentine tanks, both types
de remarks about the American
here to form several bri-
well known on several Russian
lanks, saying the enly real test
and that the delay caused
was that of battle, bet he said they
fronts. The appearance of these
were to train Soviet tankmen
lanks is much more like that at
had gone through raining tests
the Russian types, though the Ma-
NW types amounts to less
extremely well.
sked if -he
Inda's encased tracks give It 8 car-
Date weeks.
thought them superior to the Brit-
thin distinction. This brigade was
use American Infantry tanks
ish matériel. he said be would
on the point of moving up to the
won be in operation with the
answer that when he had destroyed
battle line.
Ageiy infantry against th
a couple of thousand Germana.
In conversations we learned that
fillows, More than half th
But members of the crews went
more than half of the crewn had
short, wiry men of many
further. A 22-year-old dark, wind-
been in battle against the Ger-
Malities, their wind-burned
burned little Biberian tank driver,
mans. Some had been wounded;
reflecting their bouyant,
who had handled his machine for
others had been captured and had
bilive spirit-have already
twenty days, said he liked It better
escaped. Many nationalities were
in action against the Ger
than the Russian tanks, Others
and most of the rest have
represented Russian, Ukrainian,
had detailed criticism. One thought
leng tank training.
Georgian, Uzbek, Tartar and Ka-
the rubber tracks would be useful
reded by a light German
in Winter because they would not
sak. Most of the men had seen
freeze overnight as the sharp steel
at least four years' tank service.
naissance car captured dur-
the Winter, our convoy of
tracks do, but would be too tender
Yesterday as we drove along
for hard usage. A gunner was
wide dusty roads past trim lumber
Mines turned off the highway
concerned about the narrow trav-
cottages in whose gardens lilaca
bumped tiver 8. sandy track
erse of the largest gun.
were in full bloom, Allied aid to
ugh healthy country of hillocks
Bussians Able Critics
Russia seemed ubiquitous. Land
thin undergrowth Boon Wh
onvoys of Ford, Dodge and More
our ebjective-the brigade of
But If these criticisms were
iss trucks passed us. British and
Fican tanks marshaled dia
ven freely, they did not mean B.
American tanks lay concealed un
Lick of appreciation of quality and
under spruce and birch
der trees. Ubiquitous, too, were
quantity. Correspondents never
thugh, efficient-looking. keenly die
talk with Red Army men about
foreign equipment without hearing
ciptined Red Army men, ready to
careful, bulanced criticism. Most
u/a this equipment and whatever
of these tankmen have worked in
more comes.
facturies and understand their ma-
chines well. They understand what
in good and what could be better.
Regraded Unclassified
112
TRB
Chungking
This tElEgram must bE
paraphrased before bEing
Dated June 1, 1942
communicated to anyone
other than a Governmental
Rec'd 11:26 A.M.
agency. (DR)
Secretary of State,
Washington.
635, June 1, 9 8.m.
FOR THE TREASURY DEPARTMENT FROM FOX.
TF41. WEEKLY Economic by Adler.
OnE. Chungking wholesale prices April (Institute
of Wartime Economics, January-June 1937 equals 100);
general 4,360 food 3,050 or increases of roughly 5%
each on March and of over 25 and 35% respectively on
January.
Two. Sales of saving certificates to May 27
CN dollars 57 million.
Three. Fapi in Shanghai fell recently to two per
Central RESERVE Bank dollar and nine per military yen.
Four. In TF39 of May 21, section two, paragraph
one, third sentence substitute "after" for "before".
GAUSS
EDA
Regraded Unclassified
113
AS
PLAIN
Lisbon
Dated June 1, 1942
Rec'd 3:13 p.m.
Secretary of State,
Washington.
626, first.
FOR TREASURY.
Dyar leaving Lisbon June 2, arrives Bern about
June 6.
FISH
EDA
Regraded Unclassified
114
13
COPY NO.
BRITISH MOST SECRET
U.S. SECRET
OPTEL No. 183
Information received up to 7 A.M., 1st June, 1942,
1. MILITARY
LIBYA. By the evening of the 31st the enemy appeared
to have formed bridgeheads covering the gaps in the minefields to the
west of EL HARMAT. Our artillery has again taken toll of his forces
attempting to pass through.
2. AIR OPERATIONS
WESTERN FRONT. 30th/31st May. COLOGNE was bombed
:rom 12.55 A.M. to 2.25 A.M. by 868 aircraft which dropped 530 tons
of H.E. (including 86 4,000 pounds) and 929 tons of incendiaries
amounting to more than 470,000. One of our bombers yesterday reported
missing has since returned safely. Five Mosquitos carried out visual
reconnaissances the following day and reported the city enveloped in
smoke up to 15,000 feet. 3 of them dropped some bombs. One Mosquito
is missing. 31st. About 18 Squadrons of Spitfires carried out 4
offensive operations, 2 Minesweepers which were attacked subsequently
ran aground near WALCHEREN and an armed Trawler was sunk. 4 enemy
fighters were destroyed and 5 damaged. 8 Spitfires are missing.
31st May/lst June, Two Wellingtons bombed COLOGNE. About 50 enemy
aircraft operated against this country of which 20 carried out a
sharp attack on CANTERBURY between 1,15 A.M. and 2 A.M. 1 was des-
troyed and another probably destroyed over this country and 2 more
were destroyed over Dutch aerodromes.
LIBY. 29th/30th. Our aircraft bombed MARTUBA landing
ground and EL TMIMI and on the following night started large fires
at DERNa landing ground. On the 30th two enemy aircraft were des-
troyed over the battle area, one probably destroyed and two damaged.
We lost 11 fighters.
MALTA. Between three P.M. 30th and 11.50 A.M. 31st
during small air attacks two enemy aircraft were destroyed and three
damaged, One Spitfire was lost but pilot is safe.
Regraded Unclassified
115
- 2 -
3. HOME SECURITY
31st/lst. CANTERBURY. Preliminary reports, About 20
large fires were reported near the Cathedral mostly in large commer-
cial buildings. The fire situation is well in hand. It is believed
that the Cathedral suffered some damage from blast but was not hit and
that casualties were not heavy.
The 23 Japanese Divisions in MANCHUKUO are reported to
have been reinforced by one Division from CHINA.
Regraded Unclassified
116
TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION
DATE June 1, 1942
TO
Secretary Morgenthau
Mr. Kamarck
FROM
Subject: Summary of Military Reports
Raid on Cologne
1,040 bombers were used in the raid on Cologne.
Included were 340 heavy bombers made up as follows: 131
Halifax, 88 Sterling, 73 Lancaster and 48 Manchester.
At the same time, 48 bombers and 38 fighters were sent
to attack sirdromes in Germany, France and Holland. The
total number of planes sent out was, therefore, 1,126.
(The newspaper reports have covered most of the unusual
features of this raid. It was, of course, several times
larger than anything the British have done to date, and
probably all the first-line aircraft of the Bomber Command
participated. The number of heavy bombers taking part,
340, 18 more than the usual nightly number of all bombers
sent out.)
(U.K. Operations Report, May 31, 1942)
New R.A.F. Plane
The British report that a German bomber, operating
against shipping during the night of May 28-29, was damaged
by a "Mosquito". (This 18 the first mention that has been
made of this plane. It 18 described as being a twin-engined,
two-seater, high-speed fighter-bomber.)
(U.K. Operations Report, May 29, 1942)
Russian Supply Route
(In the last week, the Germans have been claiming a
series of constant successful attacks on a convoy proceed-
ing to Russia. According to the Germans, they destroyed
most of the convoy. As usual, the German claims are
exaggerated.) The convoy to Russia arrived in the morning
Regraded Unclassified
- 2 -
117
of May 30. Out of 34 ships, 7 were sunk; six by airplane
and one by a submarine. The total tonnage lost was about
40,000 tons. Five of the ships sunk were American. (This
represents probably B. loss of around 100 tanks.)
(U.K. Operations Report, May 31,1942)
German Air Force
Two groups of Ju-88 bombers (60 planes) which were with-
drawn from Sicily to France about three weeks ago, have now
been moved to south Norway. (This may be for defense against
the coming Allied invasion, or to attack the Russian supply
route.)
(U.K. Operations Report, May 31, 1942)
Regraded Unclassified
118
June 2, 1942
9:24 a.m.
HMJr:
Clif.
Clifton
-
Mack:
Good morning, sir.
HMJr:
Slif, how are you?
M:
Fine, thank you.
HMJr:
Clif, let's have an understanding between each
other, and that is this. I don't know who you
look to 8.8 your boss these days besides me
M:
Yes.
HMJr:
but if something goes wrong, please get it
to me; or if you're in any hot water or need any
advice, let me know 80 that I can see you.
M:
Very good.
HMJr:
And don't wait for me to send for you.
M:
All right.
HMJr:
But if you've got anything important that's
bothering you or isn't going right or you're
getting into trouble, you come and see me.
%:
All right, I'll do that.
HMJr:
But the burden 18 on you, you see?
M:
That's fine. I do have something that I'm working
on now that I would like to see you about as soon
88 I have it in shape. Probably a couple of days.
HXJr:
Well, whenever you're ready, tell Stephens. In
other words, 1f there's some problem over there
that's out of the ordinary, you take the initiative
and you ask to see me, and I'll see you.
M:
Well, very good. I'm trying not to bother you
because I know that you're up to your neck.
HMJr:
I am.
Regraded Unclassified
119
- 2 -
M:
But I'll save it until I know that I really
need your help and then I'll get in touch with
you.
HMJr:
Okay.
M:
Fine.
HMJr:
Thank you.
M:
Thank you, sir.
120
June 2, 1942
9:35 a.m.
GROUP
Present:
Mr. Gaston
Mr. Sullivan
Mr. Bell
Mr. Graves
Mr. Buffington
Mr. Paul
Mr. Schwarz
Mr. Thompson
Mr. Blough
Mr. White
Mr. Foley
Mr. Haas
Mrs. Klotz
H.M.JR: Harold, are you on deck?
MR. GRAVES: Briefly.
H.M.JR: How long are you going to be here today?
MR. GRAVES: Just a couple of hours.
H.M.JR: Can you be here that much?
MR. GRAVES: I think I ought to. I think we have
got some big business this morning.
H.M.JR: You have?
MR. GRAVES: With Dan.
H.M.JR: Well, I am not going to be able to do it
at ten o'clock on account of the air raid, so we will
just have to postpone that. I mean, I have got to go to
the White House.
Regraded Unclassified
121
- 2 -
This Franklin Lamb thing will take how long, at
ten-thirty?
MR. BELL: It is not mine.
H.M.JR: Anybody in that?
MR. GRAVES: Probably take a half an hour.
H.M.JR: I am going to allow an hour. I am going
to put you, Bell, to be in at eleven-thirty. Have you
got anything then?
MR. BELL: I don't know, but I will break it. I
don't think SO.
H.M.JR: There is no use starting this other
meeting; in fact, I have got to leave here at five
minutes of ten.
MR. BELL: I would like to have about ten minutes
on some other stuff.
H.M.JR: Well, if I get through--
MR. BELL: After that meeting?
H.M.JR: Or before. If the Franklin Lamb meeting
doesn't last an hour I will let you know.
Are you going to be here when Major Namm is here?
MR. GRAVES: Yes.
H.M.JR: Who else?
MR. GRAVES: Mr. Coyne and Mr. Pulte.
H.M.JR: I hope that Coyne has explained my attitude
on this thing. Have you seen Coyne since I have seen
Coyne?
Regraded Unclassified
122
- 3 -
Mr. GRAVES: No.
H.M.JR: will you have a talk with him before ten-
thirty? I don't know how well you are, whether you can
stay until eleven-thirty or not.
MI.. GRAVES: I will.
H.M.JR: All right, but please talk to Coyne before
ten-thirty.
MR. THOMPSON: They say the drill is supposed to be
for half an hour, but they have told us that we can end
it, so far as the Treasury Department is concerned, in
ten or fifteen minutes, so I think we might do that.
H.M.JR: I should think five minutes would be enough,
I mean, to et the people down there.
MR. SULLIVAN: And find the proper station.
R. ThomPSON: Eddie Bartelt is going to give a
little talk over the loud speaker system on War Bonds.
MRS. KLOT2: That is wonderful.
H.M.JR. As soon as addie is through, tell them to
be at ease.
MR. THOMPSON: I will take care of the Professor
welch case. Peter Odegard is getting fifty-two hundred
dollars now. He was getting eight thousand part time,
but he switched back to the fifty-two hundred basis full
time, which was equivalent to the higher rate on the
time he put in.
H.V.JR: I don't know what Welch - it should be on
the same basis.
MR. THOMPSON: Odegard's per diem basis was $22.22.
H.M.JR: Why not make it $20.00?
Regraded Unclassified
- 4 -
123
MR. THOMPSON: he could not do that. The per diem
basis is at the rate of $22.22, or the next lower rate
of $18.05.
H.M.JR: I think the $22.22 would be best.
MR. THOMPSON: Mr. Kuhn said we could go ahead with
the sign.
H.M.JR: That is right.
MR. THOMPSON: That is all I have.
H.M.JR: I decided entirely on my own that if the
Carnegie Library in New York was to have one of these
signs in front of it, after all, the Treasury could have
one, too.
A. THOMPSON: That is all.
H.M.JR: Mr. Bell?
MR. BELL: nere is a letter that just came to me this
morning for your signature, acknowledging the donation. I
assume Senator Pepper gave it to you, (Letter addressed
to Mr. Fayette Holland, Secretary-Treasurer, International
Association of Machinists, Jacksonville, Florida.)
H.M.JR: Is that the Florida Canal?
MR. BELL: That is probably the first installment.
H.M.JR: Incidentally, just so that you people know
it, I am trying to write a speech - it isn't written yet -
for tomorrow night, to sort of summarize what has happened
since the President made his seven-point program. I
am trying to show what has been done and how the public
is responding because of all that the Treasury is putting
un to the public, particularly no ceiling on wages and
forced savings, and so forth and so on, and to make a
favorable report based on facts, prices, and so forth,
what has happened to prices.
I am leading off, SO if anybody has any approach -
there have been a lot of good things happening, and I
am going to say so to the public, that the public responded
Regraded Unclassified
- 5 -
124
as they always do when the President appeals to them.
So if anybody has any bright ideas please send them in
to Kuhn between now and two o'clock. He is supposed
to be locked up in his room.
MR. SULLIVAN: Over the transom?
R.M.JR: That is right, so if anybody has any ideas
please get them to him.
MR. BELL: That is all.
H.M.JR: Professor white?
MR. WHITE: We have examined a little more of the
information with respect to the tax on the moving picture
company earnings in England. It still looks as though
a further investigation might reveal some information;
it might show that taxes should have been paid. Before
John goes any further with the investigation, which might
involve auditing the books, we want your idea on it.
H.M.JR: In England?
MR. WHITE: No, no, here; that is, their taxes on
revenue in England.
H.M.JR: You want to do what?
Mr. WHITE: Just want to make sure that it is all
right with you before he goes ahead because they probably
will know that their books are being audited.
MR. SULLIVAN: I think they ought to. Somebody is
lying, Harry.
MR. WHITE: I just want to make sure you know what
is going to happen.
H.M.JR: A question of auditing '41 books?
MR. WHITE: '41, mayhe '40.
H.M.JR: Well, why not?
Regraded Unclassified
125
- 6 -
MR. SULLIVAN: I don't know why not, but Harry
wanted to clear with you before we went ahead.
H.M.JR: Is that added to the seven hundred?
MR. SULLIVAN: We added them yesterday afternoon.
Harry wanted to clear with you.
H.M.JR: It is all right.
MR. WHITE: Germany is trying to get rid of dollars,
and because of the Treasury ruling which Foley put out
on currency the discount on dollars is increased so that
they are trying to sell them in Switzerland and Spain
for twenty-three cents, dollar currency, because of the
difficulties of getting it in the United States.
H.M.JR: What did you buy the last time?
MR. WHITE: No, no, I am talking about Germany having
actual U. S. currency for which they are trying to get
Swiss francs. They want to buy - as a matter of fact,
they are trying to buy silver in Spain and other things
in Spain, but the difficulties of getting the dollar into
this country legally have been so increased by the order,
the risk is so much greater, that the discount on the
dollar has increased greatly and it is now selling for
around the equivalent of twenty-five cents.
MR. FOLEY: We extended the license that applied to
the importation of securities to include U.S. dollars,
and anybody bringing in more than two hundred and fifty
dollars has to account for the origin of the dollars.
H.M.JR: You mean the dollar in Switzerland is
selling on a twenty-five cent basis?
MR. WHITE: Germany is trying to sell on a twenty-
five cent basis, dollar currency. It just shows the in-
creasing effectiveness of the control.
MR. BELL: There is also a great discount in Turkey.
Regraded Unclassified
126
- 7 -
MR. WHITE: Yes. It has increased everywhere, but
the discount is particularly high where the difficulty
of getting money in is the greatest.
I am much disturbed by the number of men we have
lost and are going to lose, and I would like to suggest
if you would appoint a committee to reexamine the question
of deferments very quickly - I think the Treasury is out
of line with other departments. I think your policy is
an incorrect one. I should like to present my view before
an appointed committee and have their conclusion brought
to you.
H.M.JR: Well, Harry, do you mind, instead of say-
ing my policy is incorrect, saying that you disagree
with me.
MR. WHITE: I said I believe.
H.K.JR: No, you said my policy is an incorrect
one,
MR. WHITE: I disagree with your policy. I said
that I believe it is incorrect, which is another way
01 saying that I differ.
H.M.JR: I mean - well, you may say you differ, but
that doesn't mean because you differ that it is in-
correct.
MR. WHITE: No, of course not, but unless I had
some grounds for believing that my difference had
supporting arguments and weight, which others in other
departments of the Government feel, I wouldn't have
said that. Let me withdraw it. I will make it as
politic as I can. I would like to have some opportunity
to present-
H.M.JR: There is no use having a committee. The
only person to talk to is myself.
MR. WHITE: Fine. All right, as long as I get an
opportunity.
Regraded Unclassified
127
- 8 -
H.M.JR: Why camouflage the thing?
MR. WHITE: Because I thought you had appointed
a committee sometime in the past.
H.M.JR: No committee that 1 know of, is there,
Norman?
MR. THOMPSON: No, I take up with Mr. Gaston what
relates to his office, with Sullivan what relates to
his office. We do check around.
H.M.JR: You can see Norman, Gaston, and me.
MR. WHITE: Fine. 1 am going to lose three men very
soon.
H.M.JR: You had better put it in writing. Put
your case in writing so that it doesn't get too personal.
I mean, state your case in writing.
MR. WHITE: I will be glad to. I can make it more
effective orally.
H.M.JR: That is just why I want it in writing.
MR. WHITE: I don't quite understand. Are you
afraid you will be convinced?
H.M.JR: I don't want to get it on a personal basis.
I mean, I don't want any more statements like the way you
introduced your remarks, so put it in writing.
MR. WHITE: Hershey said - when he put in Selective
Service he said, "There are two policies which can harm
the Selective Service, those which defer everybody
and those which defer nobody." I think that the policy
needs reexamination. I will be glad to put it in writing.
I should think you would prefer to have it orally. It
is all right with me.
H.M. JR: I am asking you to put it in writing, and
you can back it up - you can present it personally,
Regraded Unclassified
128
- 9 -
and say anything you want to, but I would like to have
it in writing. Whenever it is ready let me know. How
long will it take you?
MR. WHITE: I will do it this morning.
H.M.JR: When you are ready let Norman know and
Gaston know and I will see you.
Have three copies made. Is it all based on three
people?
MR. WHITE: I am going to lose three more right
away, possibly eight or ten more a little later; but
I don't think I am looking at it purely from my own
division, though I am interested, particularly, in one
or two men, and particularly interested in Southard
and one other. Dut unless my position can be substantiated
from the point of view of how it effects the entire
Treasury, how the policy affects the entire Treasury, then
it doesn't stand; but the reason why I had wanted to present
it to a committee was because I feel that it is a ques-
tion of a Treasury policy rather than putting it on
the basis of one or two particular men that I might
want to try to hold on to.
H.M.JR: Put it any way you think most effective
and let Norman know and Gaston, and I will talk to you.
MR. WHITE: and these men are not seeking deferment
at all that I am mentioning. It is I who don't want
to lose them. They are perfectly willing to go along.
H.M.JR: O.K. What else?
MR. WHITE: That is all.
H.M.JR: Chick?
IR. SCHWARZ: Nothing.
MR. HAAS: I don't know if you have noticed or not,
but several panels, State by State charts, are already
in the room--
Regraded Unclassified
129
- 10 -
H.M.JR: I have been in the room, but I was so
floored by the overwhelming picture of Lucy Monroe that
I didn't have a chance to look at yours.
MR. HAAS: That overshadows ours?
H.M.JR: Completely - it so overshadowed everything
that I couldn't see yours, but I expect to look at yours.
1R. HAAS: I know you haven't seen this for some
time.
(Mr. Haas handed chart to the Secretary.)
H.M.JR: Still seven hundred seventy-five thousand
peonle in WPA - that surprises me.
MR. PAUL: How many?
H.M.JR: Seven hundred seventy-five thousand.
Harold?
R. GRAVES: Nothing.
H.M.JR: I just want to - 1 have to leave in five
minutes; so if I am getting the worst of an argument
I am not walking out on anybody.
Roy?
MR. BLOUGH: Nothing.
M. PAUL: I think that you and Dan Bell and Roy and
I, and perhaps some others, should have a talk on the
twenty-five thousand limitation, because after you told
us to take it up with Dan, we did that. Dan generally
feels that we shouldn't =0 through with the whole idea
before executive committee--
H.M.JR: Dan? I am out of tune; I don't know
what you are talking about.
Regraded Unclassified
130
- 11 -
MR. PAUL: Twenty-five thousand dollar limitation
on - the President's twenty-five thousand dollar--
H.M.JR: Where does Dan Bell come in?
106. PAUL: He can speak for himself, but as I
understand it, he thinks we ought to lay off the thing.
MR. BLOUGH: You asked us to clear it with him.
H.M.JR: I asked you to?
MR. BLOUGH: Some items in it with reference to
bonds.
H.M.JR: Oh, with reference to bonds.
MR. BELL: They had one or two items they brought
in to me to clear. I questioned whether you ought to
take it up or not. Apparently the President made the
statement half-heartedly, and you are roins to be voted
down unanimously. I don't see much use in sticking
your neck out on the thing; You are going to get beat
again. Just let the thing die. It is dead, anyhow.
H.M.JR: If you don't mind my differing with you,
my instructions definitely hold true. I want it to TO
through just the way the thing was written. I mean if
there is something technical, that has nothing to do
about the twenty-five thousand.
MR. PAUL: We can clear the technical part.
H.M.JR: I definitely want you to go through.
MR. PAUL: All right.
R.M.JR: May I just say this, I won't mention -
some agency came to me the other day - they had to see
me - the head of an agency. For half an hour he told
me how he was trying to fight an executive order that
the President asked to carry out, and wouldn't I help
him. Of course I wouldn't.
Regraded Unclassified
131
- 12 -
Let's say the President is wrong on this thing,
which I don't say that he is, but that is what he said,
and now it is up to me to carry it out a hundred percent.
There is just too much in this town - the President says
something and then nine times - not nine times, but in
many, many cases nothing happens. And that is - I don't
want to be in that school. lle said this thing. I want to
go through with it. He hasn't told me he has changed.
R. PAUL: I agree with you, but I wanted to put
Dan's point of view--
H.M.JR: It isn't - for the benefit of everybody
on my staff, this is what the President wants; all
right. Now, I want to go through with it.
MR. BELL: I heard there was a certain back round on
that. lle made that statement for a particular situation,
and that situation has passed over.
H.M.JR: Well, I--
MR. SULLIVAN: I heard that, too, ..r. Secretary,
what Dan just said.
H.M.JR: But he hasn't communicated it with me, and
my phone still works. I take it you are referring--
MR. BELL: That question raises the question as to
whether you shouldn't communicate with him before you
no ahead with it,
H.M.JR: No, I am not going to nut myself in the
position of the President saying, "What is the matter
with you, Henry, can't you read or understand English?
I said this thing; what makes you think I have changed?"
What situation are you referring to?
MR. SULLIVAN: What Dan said, about its being used
for one particular purpose.
H.M.JR: What is that?
Regraded Unclassified
132
- 13 -
MR. BELL: Well, I don't know just what it was.
It was something in Detroit where the labor unions
were up in the air about industry getting so much out
of the war effort that he came out with that statement,
and I understood that the statement he made clarified
the whole situation as far as labor was concerned in
the Detroit area.
H.M.JR: The purpose of our meetings is to bring
un for discussion mutual worries, and also gives me a
chance to say, if I want to, what I want done.
MR. BELL: Sure, I am not trying to--
H.M.JR: No, no, but I just, having heard the thing -
you have raised a question. My answer to Faul is, please
20 through with it.
MR. PAUL: That is what I was going to do, but I
thought I ought to bring Dan's view to your attention.
H.M.JR: lie has had his day in court, and he is
ruled out.
MR. SULLIVAN: Well, Mr. Secretary, do you realize
that you are conferring on Federal securities an ad-
vantage that State municipalities and other securities
don't have if you do it this way?
H.M.JR: No, no.
MR. BELL: I think that has got to come out.
II.M.JR: That has nothing to do--
MR. SULLIVAN: I beg your pardon, I thought you
said to do it as it is written.
H.M.JR: No, I said if there is something about
the bonds that Danny Bell doesn't like, that is his
responsibility, see, if he doesn't like it, take it
out; but there should be the limitation on the twenty-five
133
- 14 -
thousand. That is the President's policy, and I want
to go through with it. Is that fair?
MR. BELL: Yes, I am only raising the question.
H.M.JR: But you take care of the bond thing,
will you, and I will take care of the White House.
Glad to have seen you all.
MR. SULLIVAN: Do we get a chance later on?
H.M.JR: Possibly.
Regraded Unclassified
TREASURY DEPARTMENT
134
INTER OFFICE COMMUNICATION
DATE June 2, 1942
TO
Secretary Morgenthau
FROM
Mr. Thompson
Professor Welch left for Princeton this morning so that I have
not had an opportunity to talk to him. However, Mr. Callahan tells
me that he discussed the arrangements for his association with the
Treasury on the basis of the usual $22.22 per day. The attached
letter of appointment has been prepared on that basis and, in addition,
Professor Welch will be given his traveling expenses plus $6.00 for
subsistence on the occasion of each trip to Washington. I will talk
to Professor Welch when he returns and will also arrange for a room
for him in the Treasury Building.
Am
Regraded Unclassified
135
COPY
June 2, 1942
Mr. Roy Dickinson Welch,
Princeton, New Jersey.
Sir:
You are hereby appointed a Consulting Expert, CAF-15,
in the War Savings Staff, with compensation at the rate of
$22.22 per diem when actually employed, payable from the
appropriation "Expenses of Loans, Act of September 24, 1917,
as Amended and Extended." This appointment is effective
today.
Very truly yours,
/S/ H. Morgenthau, Jr.
Secretary of the Treasury.
Regraded Unclassified
136
June 2, 1942.
Harold Graves and Norman Thompson
Secretary Morgenthau
I would like Professor Roy Welch fixed up with
an office in the Main Treasury Building. I'd like to
have it explained to him that he is on the same level
as Kuhn and Odegard and that he is working for me. If
this is not clear, both of you please come in and see
me about it. I want to compensate him for his work on
some basis similar to Peter Odegard. I don't know what
we pay Peter Odegard, and I don't know whether we should
pay Roy Welch the same.- I doubt if we should at the
beginning, but at least he should be paid. I'd like that
straightened out today without fail.
Letter appointing Helch signed 6/2/42-
Follow up for room 6/9/42-
6/9/42- Thompson reported
Welch has been fixed
of with room.
Regraded Unclassified
137
May 25, 1942.
Vincent Callahan
Secretary Morgenthau
Professor Roy Welch, head of the Music Department of
Princeton University, is going to have supper with me
Monday night. I would like you to come also. Please
bring with you a list of One musical programs that we
have done for the last three months, who the artists
were and what they sang. He would like to have that
so he can study it. After you get this memo, inasmuch
as I am going to try to interest Professor Welch to
advise us on the musical programs, is there anybody
else that I should invite for the evening? If you
would get the message to Mrs. Klotz direct, she will
give it to me. Thank you.
Callahan tark and
5/25-
Regraded Unclassified
138
June 2, 1942
Mr. Peter H. Odegard,
Amherst, Massachusetts.
Sir:
You are hereby appointed a Consulting Export, CAF-15,
on the War Savings Staff, with compensation at the rate
of $22.22 per diem when actually employed, payable from
the appropriation, "Expenses of Loans, Act of September 24,
1917, as Amended and Extended." This appointment is
effective today.
Very truly yours,
(Signed) 1. Morgenthaw. Jr.
Secretary of the Treasury.
n.m.c
file to Mr. Thompson
-
6-2-42
Treasury Department
Division of Monetary Research 139
June 2
Date
19 42
To:
Miss Chauncey
From:
Mr. White
Please call to the Secretary's
attention. Copies have been sent to
Mr. Gaston and Mr. Thompson.
H.D.W
140
TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION
DATE June 2, 1942
TO
Secretary Morgenthau
FROM
Mr. White
Subject: Deferment Policy
I believe that the Treasury policy with respect to defer-
ment should permit the permanent deferment of some special
cases. It is my understanding that at present deferment beyond
six months will be asked for only those persons who are regarded
as "indispensable" and that the term "indispensable" is inter-
preted in such & way as to make it virtually impossible to
give any employee assurance that permanent deferment will be
requested by the Department.
It is my opinion that there are men in each division or
bureau who can make a greater contribution toward total warfare
in their present jobs than they could as officers holding down
desk Jobs of the character offered to them. The mere wearing
of B. uniform does not indicate a greater contribution to the
war effort. It was, I believe, in recognition of this fact that
the Selective Service made provision for deferment beyond six
months.
Take Southard for example. He has had many years of
specialized training for the work he is doing here. His know-
ledge of the subject and his special qualifications make him
a valuable man for this division and an extremely difficult one
to replace for many reasons. He is about to receive a commission
in the Navy and 1a expected to do work for which he has no
special training and work which, so far as I can determine, will
be less useful to the total war effort than the work he could
do for the Treasury. In his case it does not help to obtain a
six-months' deferment because were he to accept a temporary
deferment he would lose his opportunity to obtain a commission
and would later be inducted into service as & private. I
can't believe that there aren't millions of men in the country
better qualified for active service than men of his age and
experience. Yet I can't say that Southard is indispensable,
because I don't believe that anybody is indispensable. H The
department, the bureau, the division has to be regarded as an
integral part of the government, and if the particular bureau
or division 1s performing tasks which are essential to the
functioning of a department, then it seems to me reasonable to
assume that there are some men in each of such divisions who
Regraded Unclassified
141
Division of Monetary
Research
- 2 -
are essential to its best functioning. I would even go 80 far
as to say that if any bureau or division can within six months
replace without loss of effectiveness its best men, then the
head of the division or bureau has been doing a poor job. He
has not been obtaining the best men available and keeping them
long enough so that they become exceptionally valuable.
If men like Southard, and several others on my staff, are
not eligible for deferment beyond six months, then I can't
understand the purpose of providing for any deferment longer
than six months. The letter circulated in the Treasury of
February 13, giving the basis for request for deferment, cites
three conditions which must be fulfilled when deferment is
requested beyond the initial six-month period. If strictly
interpreted these conditions would provide for no permanent
deferment; if reasonably interpreted, they would, I believe,
provide for several deferments in each division.
If Treasury policy is to be no deferment in fact beyond
six months, then I am convinced that the quality of Treasury
personnel and work will be seriously harmed.
Regraded Unclassified
142
June 2, 1942.
Harold Graves' Office
Secretary Morgenthau
Please let me know what so-called Community Sings
Lucy Monroe is scheduled for for the Treasury. Please
not only give me a copy of this list, but also give one
to Mr. Roy Welch. Before the Treasury agrees to put Lucy
Monroe on any more Community Sings, I want to be personally
consulted.
See Draves'meme of 1/2-
Regraded Unclassified
143
June 2, 1942.
Ferdinand Kuhn
Secretary Morgenthau
I wish that that part of my speech that has to do
with prices - in fact you might as well show the whole speech
to someone in Leon Henderson's office. I should think Gilbert
would be as good a person as anybody. If possible, show it
to him before two o'clock when you see me. Also, Mr. Kuhn,
I will excuse you from the Staff Meeting today. I really
would like you to devote your entire morning, if necessary,
to my speech. Please cancel all other appointments that you
have so that the speech will be ready by eicher two or two-
thirty for me. At the end of the speech, I wish you would
think this over, that I have a little formula that people
should try and follow in their spending habits. Work out a
little formula which should come right at the end - my recom-
mendation as to what they should do with their money.
Then or of-
Regraded Unclassified
144
June 2, 1942
TO:
MR. MILLS
FROM:
THE SECRETARY
Last week I was to have had an answer as to
whether the members of the Aircraft War Production Council
were to become issuing agents or not. I have not heard.
decement due 6/2/42
Regraded Unclassified
145
June 2, 1942
10:50 a.m.
HMJr:
Hello.
Ambassador
Litvinoff:
Mr. Secretary.
HMJr:
Yes, Mr. Ambassador.
L:
Good morning.
HMJr:
How are you?
L:
Thank you. You know there was here a visitor
off-the-record
HMJr:
Yes.
L:
Mr. Molotov.
HMJr:
Yes.
L:
He would like very much to meet you.
HMJr:
I would like very much to meet him.
L:
And I know you don't like going out to lunches,
but 18 there any possibility to have somewhere
8. lunch?
HMJr:
What day 18 that?
L:
Tomorrow 18 Wednesday.
HMJr:
And you'd like to have me when?
L:
At one o'clock. Could you come to the Embassy?
HMJr:
Wednesday or Thursday?
L:
Wednesday.
HMJr:
Wednesday?
L:
Tomorrow, yes.
HMJr:
Tomorrow, Wednesday, at one o'clock.
Regraded Unclassified
146
- 2 -
L:
Yes.
HMJr:
I'll be there.
L:
Yes. Very kind of you.
HMJr:
No, I'd like - one o'clock Wednesday.
L:
Wednesday. Thank you.
HMJr:
Is that Wednesday or Thursday?
L:
Wednesday, tomorrow.
HMJr:
Tomorrow.
L:
Tomorrow, yes.
HMJr:
I'll be there.
L:
Thank you very much.
HMJr:
Thank you.
147
June 2, 1942
11:45 a.m.
WAR BONDS
Present: Mr. Accles
Mr. Buffington
Mr. Graves
Mr. Edwards
Mr. Bryce
Mr. Odegard
H.M.JR: Well, what I wanted is this, Marriner. I
am glad you are here, very glad. We have got to sell a
lot more F and G Bonds than we have been doing, and the
other day, for better or for worse, I made a decision,
which is not irrevocable, inasmuch as I am still on the
face of the earth, but for better or worse I made a
decision that we would do this thing through Graves'
War Bonds orgánization.
I don't know whether I gave you the reason why or not,
but I felt that they were a year or fifteen months further
along on organization than the other people, and then - oh,
there are a lot of reasons. Then I felt that this other
roup have something to do once a month, and I didn't want
to wear out my welcome. Well, anyway, I still haven't
gotten it through my head; and as long as Graves is here,
he had better tell us how Graves is going to go ahead and
sell the F and G Bonds, and it is necessary to sell them
to fill our quota for this month, next month, and the
month after. I think it is up to Graves to tell us. He
asked for the responsibility, and I gave it to him.
MR. GRAVES: Well, I don't know that that is exactly
right.
Regraded Unclassified
148
- 2 -
H.M.JR: Isn't it?
MR. GRAVES: No.
H.M.JR: Didn't you ask for it?
MR. GRAVES: I have felt that the responsibility
was imposed on the War Savings organization the minute
ouotas were set up on that organization effective the
first of May. The quotas that were announced for May
and June and July have included prospective sales of
F and G Bonds. It isn't a question of my asking for
the responsibility at all. The fact that the Department
imposed these quotas by States and counties, including
prospective sales of F and G Bonds, settled the matter
of responsibility that was put on the War Savings
organization by the very announcement of quotas that
include F and G Bond sales.
Now, as to what happened subsequently to that, I
did object to any move which would appear to put the
responsibility for F and G Bond sales elsewhere than
on the War Savings organization. It seemed to me that
you could not give the War Savings organization quotas,
including F and G Bond sales, and at the same time say
to them, "You can turn your back on F and G Bonds;
somebody else is going to look after F and G Bond sales.
You can concentrate on E Bonds." That view, I think,
was agreed to by everybody, and the plan was worked out,
certainly with my approval, that the primary responsibility
for F and G Bond sales would he left as originally intended
with the War Savings organization, but that the Victory
Fund Committee would come in and cooperate with the War
Savings organization, certainly to the fullest extent
possible, so far as I am concerned, always having it in
mind that there would in each State, in each county, be
worked out some basis for that kind of cooperation between
the Victory Fund Committee and the Nar Savings organization.
I was not the person in the end who said that that
arrangement is impractical and won't work. I prepared a
Regraded Unclassified
149
- 3 -
bulletin to go out to the War Savings organization, making
that announcement, that the primary responsibility for
the sale of F and G Bonds would remain on the War Savings
organization, but that the Victory Fund Committees would
be available to help to work out cooperative arrangements
agreeable to both organizations, and that we would find
that the Victory Fund Committee would perform a very
valuable supplementary service to the work which the War
Bond organization was to do.
Now, I think it was Mr. Buffington who in the end
told me that he thought that was wrong, that either the
job had to be turned over to the War Savings organization
and the Victory Fund Committee kept off of it, or that
the job had to be turned over to the Victory Fund organiza-
tion and the War Savings organization kept off of it. That
was not my idea, and that suggestion was given to you, and
you made the decision that the War Savings Bond organiza-
tion would be given the responsibility, and the Victory Fund
Committee as an organization would be kept out of the F
and G Bond project, but that they would be encouraged to
participate as individuals although not as an organization.
That was not my view. I thought, and still think, that
while the primary responsibility must be given to the War
Bond organization, there is plenty of room for help to
be given by the Victory Fund Committees, so long as they
don't make the assumption that their responsibility is
exclusive and that the War Bond people are to stay away
from F and G Bond sales.
I think that the bulletin that we were on the verge
of sending out some days ago was correct in principle
and in the practical effect of the thing. So I don't
think I ever asked for this responsibility. The re-
sponsibility is given.
H.M.JR: That is a detail, anyway. You have got it
whether you asked for it or not.
MR. GRAVES: That is right, and I don't think you
can take it away, unless you do this quota thing all
over again.
Regraded Unclassified
150
- 4 -
H.M.JR: I mean, if I said I want to take it away,
you would ask me not to do so.
MR. GRAVES: That is correct.
H.M.JR: Well, I mean, we are quibbling. I mean,
the fact is you want to keep it today. If I said at the
end of this meeting I am going to give it all to the
Buffington crowd--
MR. GRAVES: I think that would be very bad.
II.M.JR: So, I mean - as to how we put it or whether
you ask for it or not, but anyway, you have got it, and
the answer is, how can you, with the help of your friends
here in the room, and all of us, what can we do to put it
across. That was what the meeting called for, not who
asked for it or who got it, but you got it, and how can
all of us who are in this thing up to our neck - how can
we put it across - that is what I want to know.
MR. BELL: I don't think we can say, Mr. Secretary,
at this time, certainly, that the decision you made the
other day to put the responsibility on the War Savings
Staff for the sale or meeting the quota of the F and G
Bond was wrong, but I think possibly where it may have
been wrong was that you put it in their hands exclusively.
I think the last sentence in the telegram might have been
very well left out and left room for the cooperation or
coordination between the Victory Fund Committee and the
War Savings Staff, and that I think is what has to be
amended now to - we discussed it, and I think that we can
wire to the State administrators to get in touch with
the chairmen of the Victory Fund Committee to work out a
scheme of cooperation and coordination so that the War
Savings Staff can use these committees to further the
sale of F and G Savings Bonds.
H.M.JR: Could I make a suggestion? It may not be
worth a damn if you have been thinking about it a lot.
Somewhere here in the Treasury - the person, I think,
ought to be under Graves - there should be an F and G
Regraded Unclassified
151
- 5 -
man whose ambition it is to sell F and G Bonds and sell
them until the COWS come home, somebody that is going
to sleep, dream, and live F and G Bonds; and then he
would have a counterpart in each State under the State
administrator, and it would be his job to get people to
help them, no matter who they are or what committee they
are on or where they are. I mean, in some States, South
Carolina or Florida - it couldn't be South Carolina,
because they are always good, but Florida may have a
lousy Victory Fund Committee, but there might be some
very good people down there who could sell F and G Bonds.
I am just using Florida as an example, but if there was
an F and G Bond man here in Washington and an F and G
Bond man in each State office whose job it was to go and
see the Victory Fund man and sit down and talk with him,
in whatever capacity - I am just throwing that out.
MR. BELL: Haven't you got an F and G man in each
one of your State organizations?
MR. GRAVES: We have attempted, Dan--
H.M.JR: Haven't in Washington--
MR. GRAVES:
to set up such an organization in
each State, and I think we have it now in all of the
States where that is an important problem.
H.M.JR: But we don't have anybody here in Washington.
MR. GRAVES: We don't have anybody here in Washington,
and the suggestion that we send for Mr. Edwards was to
help us work out that very thing as far as Washington is
concerned, because you are quite right, we ought to have
somebody here in the War Bond organization who will look
after this F and G program. We perhaps ought to have
more than one. There is probably room for several people.
H.M.JR: What do you think, Marriner?
MR. ECCLES: I will go back to the quota, if I may.
H.M.JR: Please.
Regraded Unclassified
152
- 6 -
MR. ECCLES: Inasmuch as you said that you are on a
twenty-four hour basis during these days, as long as you
are on this side of the earth--
H.M.JR: I have never gotten off it. You remember -
the criticism when that economist left us and I said
the sun will rise and the birds will sing just the same
who was that?
MR. BELL: I don't know.
H.M.JR: Do you remember the fellow?
MR. ECCLES: You have had so many economists, I can't
remember.
I have always felt that there is a great distinction
between the Defense Savings Bonds and the F and G Bonds;
that the Defense Savings are sold to a group of people,
largely, we hope, to what we call the smaller people;
that it was desirable to get as much of current income
through pay-roll deduction plans to go into the Defense
Savings Bonds as an anti-inflationary effort; and that you,
therefore, have, it seems to me, a very different sort
of a job in that regard than you do in the sale of the
F and G Bonds or in this last tap issue that was put out.
Those issues go largely to the group of people and
institutions that are what we may term investors, funds
that are saved out of existing savings or out of funds
that would be saved in any case. They don't go to in-
stitutions and individuals with the effort of inducing
them to save.
The type of an organization that you had in the
field to sell F and G Bonds, it seems to me, requires
the investment banking and banking groups that have
the contacts that would enable them to know who the
people are, who the institutions are, who have the large
funds that may be lying idle, and induce them to invest
those funds in the F and G Bonds: whereas, in the case
of the Defense Savings Bonds, you are trying to get funds
in through pay-roll deductions or you are trying to per-
suade people to put money in bonds rather than spend their
Regraded Unclassified
153
- 7 -
funds for consumers' goods.
H.M.JR: May I interrupt you & minute?
MR. ECCLES: Yes.
H.M.JR: The place where I differ from some of the
people about selling these F and G's is that, it seems
to me, when you get down to it, the man who is going
to know which of his customers who have got the money
is the president of the bank.
MR. ECCLES: The investment bankers know pretty
well, too. They have been selling; they have got a
list of clients that they are working on all the time.
H.M.JR: When you get down to the fellow who has
got "scared" money and it is lying in the bank and he
thinks the country is going to go to hell, he isn't
going to buy anything. There are those people, aren't
there?
MR. EDWARDS: Yes, sir.
H.M.JR: And you, as president of a bank, know
who those fellows are. This is where I differ &
little bit. I think a man like B.M. Edwards, who is
president of his bank, certainly would know and, if
he were so inclined to, could talk with these people
better than somebody else - maybe I am all wrong -
and simply say, "Look, Bill, I am sure the country is
going to go to hell if we are going to lose the war,
but we have got to win it, and the way to win it is
to get the money to pay for the guns, ships, and
planes. Now, Uncle Sam needs your dollars and you
have got a hundred thousand dollars lying in my bank.
It isn't doing you any good and isn't doing me any good.
You have got to come across and buy fifty thousand
dollars worth of F and G Bonds."
Now, the question is, who can tell them that better
than the president of & bank. I would like, if you
don't mind - now, B. M. Edwards getting right down
Regraded Unclassified
154
- 8 -
to his community, or some salesman who is in the bond
business - who can tell it to them better right in
your community?
MR. EDWARDS: Mr. Secretary, the banker, of course,
knows where the money is and he can't divulge any in-
formation to an outsider. I mean, the security man
can't come in and get that information. We are not
permitted to give it out. F and G Bonds are not hard
to sell. I have sold a good many of them, myself,
personally, and they can be sold if proper effort is
put behind them.
H.M.JR: Well, to answer my question, though, in
your own community or the places where you have your
banks, you pick your people who have got this "scared"
money. I don't know; you know; it must have flashed
through your mind, the people who have got it. Who is the
best man in that community to go down and talk rough
to this fellow about putting his money in these F and
G Bonds?
MR. EDWARDS: Well, in my opinion, the banker is.
H.M.JR: That is what I thought and that is why
I threw my weight with Harold Graves.
MR. PRYCE: I don't agree with that, but I mean
probably--
H.M.JR: Well, it is the question that has to be
decided. Somebody has got to talk rough to these
fellows and it is a question of who can do it, the
men that you represent or the president of the bank.
MR. ECCLES: Yes, but these bankers, as well as
the investment bankers, make up these regional committees.
The committees were made up largely of, almost entirely
of those two groups, that is, the investment banker and
the commercial banker.
H.M.JR: But this committee, when you get below
the top committee from the sales manager down, is
supposed to be investment bankers.
Regraded Unclassified
- 9 -
155
MR. ECCLES: No, no, almost entirely regional -
regional bankers. You take in every one of these
regional committees the majority on these committees are
the bankers. There isn't an important banker in any
one of these areas that isn't represented on those
committees and you have--
H.M.JR: Well, Marriner, you evidently think -
have you thought the thing through?
MR. ECCLES: I sure have. I have been talking to
Sproul. I have been talking to--
H.M.JR: How would you do it if you had to do it?
MR. ECCLES: Here is what I would do. I would
separate the quotas first, because I think merely the
aggregate doesn't tell the story, that what you want
is the very maximum amount of E Bonds.
H.M.JR: Well, to bear out what you say, I have
just written a letter to the President and the Cabinet,
This is what we have done in May, but I particularly
want to draw attention to what we have done in E Bonds,
ninety-five million ahead, May over April."
MR. ECCLES: Here is a quota for E Bonds and here
is a quota for F and G Bonds, because you have got
two different types or groups of investors. It
seems to me that merely to say we are going to get
eight hundred million or we are going to get a billion,
it is important, it seems to me, that the maximum amount
of that quota comes from the pay-roll deductions and
from the - if it is going to have an anti-inflationary
effect, then it has got to come out of the people who
otherwise would be spending their money and you are
going to induce them not to spend their money, as &
patriotic duty, to put it into E Bonds.
H.M.JR: That is the E Bonds?
MR. ECCLES: That is right, and therefore you want
to get the very maximum in that quota. That doesn't
mean you don't want to sell all the F and G's, likewise,
Regraded Unclassified
156
- 10 -
that you can possibly sell that have this money; that is,
likewise, we want to get this money in.
H.M.JR: I call it "scared" money.
MR. ECCLES: That money isn't inflationary money,
at the moment, because it is lying there. It is the
type of money that can go into an investment and not
likely into consumer goods. It wouldn't have the
same inflationary effect, and therefore that is in,
it seems to me, a separate category, and it needs a
different type of committee than the committees that
are going to ring doorbells and work up a patriotic
fervor in a community so that you get everybody in
the plant signed up to take some E Bonds. The other
type you don't get by doorbell ringing. It is & case,
as you say, of the banker in the community doing what-
ever he can to get the money in the bank that isn't
being used to go into those bonds.
H.M.JR: That is the idea. Let me ask you this,
I haven't allowed enough time to do this thing right.
Have you had this discussion with the boys yesterday?
MR. ECCLES: No.
MR. BELL: I talked to him a little this morning.
H.M.JR: As long as you are here - Harold doesn't
know it, but when he gets through with this meeting I
am going to send him home until he gets well. There
is no use of his being here half well, so why don't you -
I haven't allowed enough time to do this properly, so
could you continue this discussion a little bit in
Bell's office, because by one o'clock I am going to
send Harold home. See? And then this is terribly
important.
MR. ECCLES: Awfully important. I don't want to
see the thing - this is fundamental; we are laying a
foundation here that seems to me ought to carry all the
way through.
H.M.JR: The E thing is just beginning to roll
Regraded Unclassified
157
- 11 -
now; it is coming - I mean the ninety-five million. We
got that through hard work, and the plants - it is be-
ginning to come, but this other thing, do you mind
adjourning into Bell's office, and then--
MR. BELL: Not at all.
H.M.JR: Then I will sit down for an hour or two
in a day or two. I would like to settle this. I would
like to settle it this week.
MR. ECCLES: Why don't we do this--
H.M.JR: I have got to settle it this week.
MR. ECCLES: Sproul and Williams are coming down
here tomorrow. We are going to meet - we arranged two
weeks ago to have a meeting every two weeks to dis-
cuss the situation with reference to the whole financial
picture. Stewart is coming down and we expected to have
& couple of hours' meeting in the morning. Now, why
wouldn't it be a good thing while Sproul and Williams
are here to get a meeting with you tomorrow afternoon?
H.M.JR: It is all right if that damned speech of
mine is finished. God, how I hate these speeches.
MR. ECCLES: Radio?
H.M.JR: I am opening up a new series for OFF. I
expect you are going on it.
MR. ECCLES: I agreed to. They asked me to and I
agreed, but I have got a month so I don't have to start
thinking of mine now.
H.M.JR: If I get this out of my system - I kept
all day tomorrow free, so if the thing is finished
tomorrow morning I am free in the afternoon, but it
is in terrible shape right now, the speech is, and
so this will be the first appointment, if I make one, Dan.
Regraded Unclassified
- 12 -
158
MR. BELL: 0. K.
H.M.JR: Put it down tentatively for three o'clock.
MR. ECOLES: You are opening up this series?
H.M.JR: Yes, tomorrow night.
MR. ECCLES: I am on the tail end, July first.
H.M.JR: So tell them tentatively three o'clock.
Could we stop now.
159
JUN 2 1942
Dear Mr. Gifferds
I have your wire of May 26, 1942, signed on behalf of
Messre. J. P. Francel, 25., President,
Merchants National Bank,
Indianspolis, Indiana
Tance s. Alexander,
President,
Union Planters National
Bank and Trust Company,
Memphis, Termossee
Paul M. Davis,
President,
American National Bank,
Nashville, Tennessee
Frank N. Farris,
Precident,
Third National Bank,
Nashville, Termossee
in which you suggest that the Treasury pet before the country's
15,000 banks - tentative outline of the Treasury's financing
program 90 that all bankers can understand what is expected of
them and make their plane BO as to be able to absorb offerings
of bonds with a sisims of confusion and difficulty.
The banks of the country have been of great aid to the
Treasury in the financing of this mr. They have purchased
securities for their our account, for the account of their
customers, and have nate every effort to sell war savings securi-
ties. No appreciate this very much.
As to a program of financing this var, I - sure you applie-
clate that the Treasury could not lay down a program which would
be at all definite. last Junuary the President's Budget Mossage
contemplated a deficit is Government expenditures, including the
financial requirements of Governmental corporations and credit
agencies, of $39,000,000,000. This was increased to $53,000,000,000
in April. lay program made is Junuary certainly would have had
to be drastically changed in April. In financing the huge war
expenditures, the President has announced that he wants as much
Regraded Unclassified
160
- 2 .
of the expenditures M possible to come from taxes. " have also
announced that every attempt will be made to berrow as such of
the reasining funds required as it is possible to berrew from
non-inflationary everoos. In this counsetion, we have amounced
& definite program of raising not less than one billion dollars
& month, beginning July 1, through the sale of war savings securi-
ties. It is quite obview that the balance of the financing will
have to come from insurance companies, savings banks and sther
permanent investment funds, and to the extent that these funds are
not sufficient, the balance will have to come from the banks. "
have no my of telling at this time how much the banks will be
called upon to take. I believe you can rest assured that 11 will
be a substantial amount.
In the financing program which n have adopted over the
past few months, ve have undertaken to issue securities which
would meet every investment desire. We have increased the supply
of Mills, Treasury notes, and added certificates of indebiedness,
in order not only to give the banks & security which they destre
and to eupply fluidity to the money market, but to provide a
security for corporate and other funds seeking short-town invest-
ments. Ve have also issued intermediate bends, again largely for
the banking community. A long-term security was also available to
any person OF firm, except commercial banks accepting demand deposits.
Ve expect to have other securities of this and other types which
will meet the investment requirements of all classes of investors.
I do not believe that I can outline a program in more detail
at this time. I an ours you will appreciate my position under
the circumstances.
I appreciate the trouble you have taken to wire no and want
to thank you for your comments and suggestions.
Very truly yours,
(Signed) a. Morgenthou. Jr.
Secretary of the Treasury
Mr. Ralph c. Differd,
President,
First National Bank,
Louisville, Kentucky.
photo file n.m.c
the to Hompen
DEBICE 6-2-42
Regraded Unclassified
46 301 DL 48 EXTPA
LOUISVILLE KY 26 127P
HON HENRY MORGENTHAU JR
SECRETARY OF THE TREASURY ASHDC
AS BANKERS WHO ARE KENXKKEENLY CONSCIOUS OF THE MAGNITUDE OF
THE PROBLEM OF FINANCING THE WAR AND THE PART WHICH THE
5
BANKS MUT PLAY, WE SHOULD LIKE TO URGE THE EXTREME
IMPORTANCE OF PUTTING BEFORE THECOUNTRY,S FIFTEEN THOUSAND
BANKS SOME TENTATIVE OUTLINE OF THE TREASURY FINANCING
PROGRAM so THAT ALL BANKERS CAN UNDERSTAND WHAT IS EXPECTED
OF THEM ANDMAKE THEIR PLANS so AS TO BE ABLE TO ABSORB
OFFERINGS OF BONDS WITH A MINIMUM OFCONFUSION AND
DIFFICULTY STOP.
CREALIZE THAT PLE **FLEXIBILITY MUST BE MAINTAINED AND THAT
NO ABSOLUTELY DEFINITE PROGRAM IS POSSIBLE BUT FEEL THAT
SOME UNDERSTANDING OF GENERAL PRINCIPLES WOULD BE VALUABLE
STOP
WE WANT TO DO EVERYTHING POSIBLE TO HELP AND SUGEST
THAT IF A TENTATIVE PROGRAM CAN BE OUTLINED, WE SHOULD BE
GLAD 11 TO TAKE THE LAWLEADERSHIP IN HAVING THE BANKS OF OUR
Regraded Unclassified
2/140
RESPECTIVE CTIVE CITIES SPONSOR MEETINGS OF BANKERS FROM THE
SMALLER TOWNS IN OUR REPESTIVE TLERITOR is _AY THE
PROBLEM AND PROGRAM BEFORE THEM AND REPORT COMMENTS FPOM
THE MEETINGS STOP
NATURALLY WE SHOULD LIKE TO SEE THAT PART OF
GOVERNMENT FINANCING WHICH BANKS ARE EXPECTED T.ABSORB
CONSIST OF MARKETABLE OBLIGATIONS WITH A MATURITY SCHEDLE
REASONABLY ADAPTED TO THE CAP CAPITAL FUNDS POSITION OF THE
BANKING SYSTEM.
BUT REGARDLESS OF WHAT PROGRAM YOU MAY
PROJECT, ICT, WE DEEM IT OF THE GREATEST IMPORTANCE THAT BANKERS
UNDERSTAND STAND IT AND BE PREPARED TO FULFILL THEIR RESPLONSIBILITY
STOP
-
IF THE SUGGESTION OFSPONSORING MEETINGSSEMS
TRUCTIVE AND DESIRABLE, PLEASE CALL ON US EACH OF US
IXIOUS TO HELP.
P. FRENZEL JR PRESIDENT MERCHANTS NATIONAL BANK
DIANAPOLIS RACPH C GIFFORD, PRESIDENT FIRST
DNAL BANK LOUISVILLE VANCE J ALEXANDER PRESIDENT
GREEDN. PLANTERS NATIONAL BK AND TR CO MEMPHIS PAUL M DAVIS
SIDENT AMERICAN.
Regraded Unclassified
1942 MAY 26 PM 5 00
WE46 3/21
NATIONAL BANK NASHVILLE FRANK M FARRIS PRESIDENT THIRD
NATIONAL BANK NASHVILLE BY RALPH C GIFORD FIRST NATIONAL
BANK LOUISVILLE LOUISVILLE KENTUCY.
459PM.
N/
Regraded Unclassified
164
June 2, 1942.
Dear Mr. SprouT:
Thank you for your letter of
May 26, with its enclosure.
I appreciate your writing no
about the meetings of the committee
and am looking forward to going
through the material you sent with
careful attention to the different
points it covers. I also have noted
the list of those who attended the
meeting at which the report vas
approved.
Sincerely,
(Signed) 1. Morgenthaw, Jr.
Mr. Allen Sproul,
President,
Federal Reserve Bank of New York,
New York, New York.
GEF:dma
n.m.c.
Embsure sent to house
Regraded Unclassified
has been 165
acked
FEDERAL RESERVE BANK
OF NEW YORK
May 29, 1942.
Honorable Henry Morgenthau, Jr.,
Secretary of the Treasury,
Treasury Department,
Washington, D. C.
Dear Secretary Morgenthau:
On April 7, 1942, I presented to you a communication, dated April
3, 1942, from the principal member banks in New York City, in which they
gave expression to their desire to assist, wherever they could be helpful,
in meeting the immediate problems of government financing.
Subsequently, Mr. William C. Potter, Chairman of the General Com-
mittee of the New York Money Market, appointed a committee from among the
group to study these problems. This subcommittee held several meetings,
solicited and received suggestions of all of the members of the group, and
prepared a report on a program of Treasury financing. This report was pre-
sented to and discussed in detail by the whole group this morning. After
making certain changes, the group requested me to transmit a copy of the
report to you as an unanimous expression of opinion from the banks repre-
sented. I am enclosing a copy, therefore, and I respectfully ask your
consideration of it. There is also enclosed, for your information, a list
of those who attended the meeting this morning at which this report was
unanimously approved.
Yours faithfully
Allan Sproul,
Encs.
President.
Regraded Unclassified
166
REPORT OF SPECIAL SUBCOMMITTEE
ON
PROGRAM OF TREASURY FINANCING
In recent weeks the Treasury has made important steps in
working out a plan of financing to meet the requirements of sound policy
and enable buyers of securities to plan their own financial programs.
As further steps in this direction the following suggestions are made.
Sales Outside the Banks
To avoid inflationary extension of bank credit, increased
emphasis is necessary on sales outside the banks. Toward that end we
suggest
(1) Strengthening the sales organizations both for market
issues and for savings bonds. This is already under way.
(2) An increase in the limits on purchases of F and G bonds
from $50,000 to $100,000 a year. It is recognized that the redeemability
of these bonds is a potential danger, but for the present, this being the
program adopted, it should be given maximum effectiveness. (This step has
now been taken.) These bonds might be somewhat more attractive and the
danger of redemption demands on the Treasury in the future might be reduced
if the bonds were made assignable for bank loans. This is not a sugges-
tion for a program of "borrow and buy." In fact, if that were regarded as
a danger the power to assign could become effective only after the lapse of
some period such as 6 months or a year from date of purchase.
(3) Long term issues of the general type of the recent long term
2 1/2 per cent bonds might well be sold at periodic intervals of from two
Regraded Unclassified
167
2
to four months. These issues could be made more attractive to individual
investors of large means if they were acceptable at par in payment of
inheritance taxes.
(4) Tax anticipation notes should be made more attractive by
raising the limit on A notes to $10,000 and raising the rates on the B
notes to perhaps three-quarters of one per cent.
Issues for Banks
The following suggestions are made with respect to types of
securities which might be desirable for banks as well as attractive for
other holders.
(1) There should be a further increase in the amount of short
term issues such as bills and certificates both to aid in reserve adjust-
ments and to provide a further medium for corporate and other short term
investment.
(2) For banks the general practice should be adopted of selling
securities maturing within a ten-year period.
(3) Issues should be staggered in such a way as to enable banks
to acquire well distributed maturities up to ten years. This can be done
in several ways; one is by serial issues and the other by offering a
choice of issues at each financing such as a two year and a seven year, or
one year and a six year. For the present it would seem simpler to follow
the traditional practice and offer a choice between two issues.
Bank Reserves
The huge surplus reserves of recent years are not necessary for
the smooth operation of Treasury financing but are, in fact, a hindrance
as they tend to keep short term money rates at unattractive levels and
Regraded Unclassified
168
3
encourage over-expansion of bank credit. Over a period of months it will
be necessary to provide additional reserves to the banks, but this should
be done slowly and only as they are really needed. In the process the
uneven distribution of reserves from time to time will require careful
review.
Government Deposits
To add to the attractiveness of the government financing opera-
tion, it is recommended that legislation be requested removing the Federal
Deposit Insurance assessment on government deposits. Considering the
special type of these deposits, and the fact that they are secured, the
assessment is neither necessary nor logical, and offers an impediment to
financing.
Law on the gaintenance OI Reserves
Banks will use their reserves more fully and effectively if
legislation is passed clarifying the liability of directors with respect
to possible deficiencies in reserve at the time loans or investments are
made or dividends declared. A recent legal decision has raised a question
on this point which should be cleared up promptly.
W. RANDOLPH BURGESS,
LEON FRASER,
HERBERT P. HOWELL,
J. C. TRAPHAGEN,
WINTHROP W. ALDRICH, Chairman
WILLIAM C. POTTER, ex officio,
May 29, 1942.
Regraded Unclassified
ISC. 140A 75M-12-41
169
FEDERAL RESERVE BANK OF NEW YORK
MEETING HELD MAY 29, 1942, 12:00 NOON.
Mr. J. Stewart Baker, Bank of the Manhattan Company
Mr. J. C. Traphagen, Bank of New York
Mr. B. A. Tompkins, Bankers Trust Company
Mr. Wm. 8. Gray, Jr., Central Hanover Bank and Trust Co.
Mr. Winthrop W. Aldrich, Chase National Bank
Mr. N. Baxter Jackson, Chemical Bank and Trust Co.
Mr. Herbert P. Howell, Commercial National Bank and Trust Co.
Mr. Ralph Peters, Jr., Corn Exchange Bank Trust Company
Mr. L. F. Hooper, First National Bank
Mr. W. C. Potter, Guaranty Trust Company
Mr. Harry E. Ward, Irving Trust Company
Mr. George Whitney, N. P. Morgan & Co., Inc.
Mr. James G. Blaine, Marine Midland Trust Co.
Mr. Ernest Stauffer, Jr., Manufacturers Trust Company
Mr. Gordon S. Rentschler, National City Bank
Mr. W. Randolph Burgess, National City Bank
Mr. John E. Bierwirth, New York Trust Company
Mr. E. Chester Gersten, Public National Bank and Trust Co.
Regraded Unclassified
170
June 2, 1942
2:10 p.m.
HMJr:
Hello.
Operator:
Mr. Paul.
HMJr:
Hello.
Operator:
Go ahead.
HMJr:
Hello.
Randolph
Paul:
Hello.
HMJr:
Hello, Randolph.
P:
I called you because we're getting - we're
shooting down a little faster and getting &
little bit caught, and we're going to come
this afternoon to that item that we discussed
in connection with the Capper letter.
HMJr:
oh, yes.
P:
It's the first point. We were perfectly clear
on the second point - the one about limiting
the estate tax deduction, but we left it a
little in the air about the first point, that
is, in the taxation of charitable organizations
engaged in business. You remember?
HMJr:
Well, my feeling then was - and I haven't
changed - I thought I'd let the thing - that
first part slide. I think we've taken on
enough enemies
P:
Well, the difficulty 1s that Stam is for it,
and the committee 18 undoubtedly going to take
it.
HMJr:
Well
P:
We may be asked whether we withdraw that
recommendation. Wouldn't it be all right if
we modified it to say that beginning two years
from now, or something of that sort?
Regraded Unclassified
171
- 2 -
HMJr:
Well
P:
Or that we exempt five thousand - we exempt up
to five thousand.
HMJr:
Make it three years.
P:
Three years.
HMJr:
Give them time. You can't sell any businesses
now.
P:
Yeah. Well, suppose I say that we think that
it's only fair to let that take effect three
years from now and that'll take most of the
curse off our
HMJr:
That's all right.
P:
All right.
HMJr:
Now, wait a minute. On the other thing, on
the - what you can leave - hello.
P:
Yeah.
HMJr:
Fifty per cent?
P:
Well, that was our idea, fifty per cent; but
have it not apply to small estates, that is,
uo to a hundred thousand.
HMJr:
That's all right. Are we together?
Pt
Yeah, entirely.
HMJr:
Good.
P:
I think that both those are going to be adopted.
Stam is for them, and the committee will probably
take them.
HMJr:
Well
P:
They've taken quite a number this morning.
They've passed on five or six.
HMJr:
All I - I see. All I got - somebody's out on
Regraded Unclassified
172
- 3 -
my desk tonight's Washington News, "All of
F. D.'s tax ideas kicked out."
P:
Yeah. Well, that's, of course, as a result
of your press conference yesterday.
HMJr:
I see.
P:
That's more or less a follow-up on that.
HMJr:
Well, did that help or hurt you?
P:
Well, it helps in B. way, but the spirit of
that statement 1s kind of nasty.
HMJr:
Whose statement? Mine?
P:
The spirit of the newspaper.
HMJr:
Oh, yes. I didn't think mine was nasty.
P:
It sounds 8.8 if it's kind of delighted that
you are upset, you see.
HMJr:
Oh, well, I'm sure they are.
P:
Yeah. Well, that's the only objection I have
to it. It probably will help us a little bit.
HMJr:
Yeah. But I - my statement was meant to be
heloful.
P:
Yeah. Oh, yes, your statement helped, but I
mean this - even this article will; in spite
of the fact that their spirit 1s somewhat
vindictive, it will probably help us a little
bit.
HMJr:
Okay. Good luck.
P:
All right. Thanks.
Regraded Unclassified
173
June 2, 1942
2:34 p.m.
Operator:
Mr. Henderson is in & War Production meeting
until five or five-thirty. I have his secretary.
HXJr:
His secretary?
Operator:
Yes.
HMJr:
Yeah, let me talk to her.
Operator:
All right. Miss Madden.
HMJr:
Hello.
Miss
Madden:
Yes, sir.
HMJr:
Miss Madden, this is Mr. Morgenthau.
M:
Yes, Mr. Morgenthau.
HMJr:
I'm making the first speech tomorrow night
on this - over the radio - I think Mr. Henderson
follows me within the next day or two.
M:
Yes. I think he's on Thursday, uh huh.
HMJr:
I'd like either Mr. Henderson or somebody else
to take a look at it this afternoon. They say
he's at a war - who would Mr. Henderson, do you
think, like to have look at it for him?
X:
Well, probably one of our legal boye. I'll
check around and see.
HMJr:
How about Gilbert?
M:
Oh, Gilbert would be very good, yes. Dick
Gilbert would be good.
HMJr:
Would that be satisfactory?
M:
I'm sure it would be, absolutely.
HMJr:
Well, then, do you mind - I don't need any -
I've got plenty of legal boys myself.
Regraded Unclassified
174
- 2 -
M:
(Laughs) All right. Would you like me to
call Gilbert?
HMJr:
Yeah. And tell him that Mr. Kuhn will be
calling him shortly.
M:
All right.
HMJr:
K-u-h-n.
M:
All right, swell.
HMJr:
Thank you.
M:
Righto.
Regraded Unclassified
175
June 2, 1942
3:15 p.m.
HMJr:
How are you?
Dean
Acheson:
Very well, sir.
HMJr:
Merle Cochran is here with me, and I'd like
to make the suggestion, and it's agreeable
to him, that his instructions be included
that he can go over to Montevideo.
A:
That's fine.
HMJr:
Because I think he can pick up some good tips
there as to what's going on.
A:
Absolutely. That's thoroughly agreeable, and
we'll do it.
HMJr:
And the other thing that I asked him was, that
if and when these instructions are signed that
he's taking down, I'd appreciate it if I could
have a copy of them.
A:
I will send you one. I think that they either
have been signed or are being signed today.
HMJr:
Well, when - after they're signed.
A:
I beg pardon?
HMJr:
After they're signed.
A:
Fine. You have - over there in the Treasury
I think you have a copy of it, but I'll send
you another one.
HMJr:
Well, I have seen it - I read it very - just
glanced at it, and it looked to me - it looks
very good to me.
A:
We tried to make it very thorough and suggestive
80 that those fellows will know the whole scope.
HMJr:
Don't you think it would be - he might pick up
Regraded Unclassified
176
- 2 -
something worthwhile in Montevideo?
A:
I think he might very well.
HMJr:
Yesh.
A:
We'll be glad to do that, Henry.
HMJr:
Thank you. Thank you.
Regraded Inclassified
177
Conference in Secretary Morgenthau's Office
June 2, 1942
3:20 P.M.
Present: Secretary Morgenthau
Dr. Soong
Mr. White
Dr. Soong called on Secretary Morgenthau at 3:20, June 2,
at the Secretary's request.
Secretary Morgenthau told Dr. Soong that Sir Federick
Phillips had been in and had raised two questions. The Secretary
asked Mr. White to state them, which Mr. White did. The ques-
tions are in the appended memorandum.
The Secretary told Dr. Soong that his reply to the first
question was that the terms of the loan was a matter wholly
between the Chinese Government and the British Government.
Dr. Soong expressed his gratitude at the answer which the Secre-
tary had given the British.
With respect to the second question, Dr. Soong replied
that in his opinion, his Government would naturally prefer to
obtain the sterling from the forthcoming British loan but that
if the British would not supply it from that source, his Govern-
ment would like to have the necessary sterling purchased with
the dollars in the Stabilization Fund. He added, however, that
he would communicate with his Government to see whether his view
was that of his Governments.
Regraded Unclassified
178
May 19, 1942
Secretary Morgeathau
Mr. White
1. Sir Frederick Phillips and Mr. Bewley called on me yesterday
at their request to discuss mtters relating to China. Sir
Frederick raised the following two questions:
(a) Regarding the British Agreement with China granting
*50 million, do you have any objection to the
Agreement being limited to approved" purchases of
goods from the sterling area during the war only,
with an expressed prohibition against use of the
funds to meet any previous sterling commitments?
(b) What is your attitude on the Stabilisation Board
of China and its Fund now that the sterling assets
of the Fund total only about 12 million while the
current sterling liabilities of the Fund total
nearly ₺6 million?
2. Sir Frederick said that he would call on you this week to
discuss these matters with you.
3. At & meeting of Treasury people to discuss the above matters,
it was unanImously concluded that:
(a) with reference to the first query, an appropriate
answer might be that this was a matter on which the
Secretary would rather not comment since it concerns
only Great Britain and China, and
(b) with reference to the question regarding the Stabill-
zation Board, the Treasury has already Instructed the
Board that it was prepared to see the dollar assets
of the Fund used for the purchase of sterling after
the present sterling fund has been exhausted. (In this
connection you will be interested to know that the
British object to the use of the proposed 150 million
for such purpose.)
INF/efs
5/19/42
Regraded Unclassified
179
dake
June 2, 1942
4:00 p.m.
HMJr:
Hello.
Operator:
Mr. Perkins.
HMJr:
Hello.
Milo
Perkins:
Hello, there.
HMJr:
I thought I'd call you. I'm trying to do a
speech for tomorrow night. I'm opening this
new series.
P:
Oh my gosh!
HMJr:
And I'm not very successful at it.
P:
Well, Mr. Secretary, I tell you. I want to
talk to you about a very confidential matter
that T. V. Soong talked to the President about.
HMJr:
Oh, yeah. I know about it.
P:
You know what it is?
HMJr:
Yeah, he just left here.
P:
Oh, well. (Laughs) Well, now, maybe I could
talk to somebody else over there.
HMJr:
No.
P:
I thought - at least he indicated, the Boss said,
I ought to talk to you personally.
HMJr:
Well, I tell you who you can talk to about it.
You can talk to Harry White about it.
P:
Uh huh.
HMJr:
See?
P:
Do you have a reaction on it?
HMJr:
Yeah.
Regraded Unclassified
180
- 2 -
P:
Favorable or unfavorable?
HMJr:
Well, it's the kind of thing I don't like, but
I think we'll have to do it.
P:
Yeah. Well, that's the way I feel.
HMJr:
See.
P:
Well, then
HMJr:
And I think the less - if you don't mind my
saying 80 - I think - and I told it to Soong -
I think the less people in it, the better.
P:
Well, that's exactly the way I feel, and that's
why I just hadn't indicated to anybody.
HMJr:
So - I mean, I think it's something, unless you
people want to get in on it, I think you'd better
by-pase it and let us handle it.
P:
That would be grand with me.
HMJr:
What?
2:
That would be grand with me. I've got the only
copies available of what you want.
HMJr:
Well, he's going to get that.
P:
From me?
HMJr:
Yeah.
P:
Well
HMJr:
I mean, if you want - look, I don't want any
competition. You can have the whole thing,
you see? Hello.
P:
Yeah.
HMJr:
If you'd like to handle the whole matter, God
bless you; but I think one or the other ought
to handle it, but not both.
P:
Good.
Regraded Unclassified
181
- 3 -
HMJr:
And if you'd like to handle it
P:
No, I think you've got to on account of your
Bureau of Engraving and Printing.
HMJr:
Well, if we're going to handle it, Milo, then
if you don't mind, I'd like to handle it alone;
because it's too tricky - too delicate.
P:
Right. Well, now, do you know what I've got
locked up in my
HMJr:
Yeah. Yeah.
P:
Shall I get those to Harry?
HMJr:
No, get them - give them back to Soong.
P:
Give them back to him.
HMJr:
Yeah.
P:
And he'll handle it with you.
HMJr:
That's right.
P:
That'll be grand with me.
HMJr:
But if you have any feeling about it
P:
None whatever. Goodness, no. I
HMJr:
All right.
P:
We've done some work on weights involved
HMJr:
Some what?
P:
for the transport of the physical stuff.
HMJr:
Yeah.
P:
If you fellows feel you can get any help from
us on that, then you can have them get in touch
with my office and I'll get them in touch with
the right people.
Regraded Unclassified
182
- 4 -
HMJr:
To do what?
P:
Well, I mean, you've got a lot of mechanical
problems of arranging with the Army to get it
flown and weights involved and that.
HMJr:
Oh.
P:
Maybe you can do all that yourself.
HMJr:
No, no. I'm only - the only question I'm
talking about is the production; and the thing
18, when Soong gets it, then I'm going to forget
about it; and how he gets it over there, he'll
have to sweat now.
P:
Well, now, that's something that I want - if
you handle the production end, then that just
begine another very long process with the Army
on cargo planes.
HMJr:
Well, then I'll tell - let's divide the
responsibility. If we can get the stuff
made, then we'll tell Soong, "Here it is,
and you go up and see Mr. Perkins and he'll
find a way to get it over there."
P:
Good. Well, that's all - and then on that
front, I can be useful to him. Now, what
about the money of doing it. You can arrange
that with Soong?
HMJr:
Well, they've got enough money.
P:
Did he mention that to you?
HMJr:
No, he did not.
P:
Well, you assume that he can arrange that.
HMJr:
Yeah.
P:
Well, then let's split it that way.
HMJr:
Is that fair?
P:
Sure. Sure. You bet.
Regraded Unclassified
183
- 5 -
HMJr:
And if after sleeping on it, if you don't like
it, call me back.
P:
No, I think the thing is - I think the thing
can be very effective. We've had two people
doing a lot of work on it.
HMJr:
Right.
P:
I think it can be very effective.
HMJr:
Okay.
P:
Good.
HMJr:
Thank you.
Regraded Unclassified
CO - Mr. Foley: Please speak to the Secretary after reading this.
184
June 2, 1942
4:25 p.m.
HMJr:
Hello.
Operator:
Mr. Pehle.
John
Pehle:
Yes, Mr. Secretary.
HMJr:
Pehle
P:
Yes, sir.
HMJr:
Look, I'm very much disappointed that you
didn't come through with what I asked for
on Sunday.
P:
Well, can I explain to you what happened?
HMJr:
No, I don't want any explanation. You've got
the information, and I want what you've got.
P:
Well, we discussed it Monday morning in
Mr. Foley's office.
HMJr:
Well, Foley hasn't told me anything about it.
P:
He intended to speak to you, and I called him
immediately again, and he said he hadn't had
a chance to telk to you about it and ask you
for an extension of time.
HMJr:
Well, what 18 the explanation?
P:
What?
HMJr:
What is the explanation?
P:
Well, the explanation 16 that at the present
time what we have to report 1sn't very sig-
nificant, but we have several things that we're
investigating now, which we think in a week's
time we'll have something which ought to be
worthwhile; but right now the report that we
gave you wouldn't orove
HMJr:
Well, let me have a report as to what you've got,
please. Hello.
Regraded Unclassified
185
- 2 -
P:
Yes, sir.
HMJr:
And I want it in my hands tomorrow morning at
nine o'clock.
P:
Yes, sir.
HMJr:
What you have.
P:
All right.
HMJr:
And then if you want to, give me a report later
on; but this thing of asking, then having to
follow people up two or three times - I haven't
got time to do that.
P:
Well, you shouldn't have to.
HMJr:
Well, I know I shouldn't, but I do. Now, please
let me have what you've got. I've got a very
good reason for wanting it. I want it actually
out into my - Lieutenant Stephens' hands at nine
o'clock tomorrow morning.
P:
Yes, sir.
HMJr:
And then if you need another week - it most
likely will be another month. This thing has
been going on for God knows how long. Either
by this time you either have something, or you
haven't, Pehle.
P:
Well, I wasn't working on it, Mr. Secretary.
HMJr:
Well, who 18?
P:
Well, Mr. Quint and Mr. Foley's office is
working on it.
HMJr:
Who?
P:
I wasn't.
HMJr:
Oh, you're not working on it.
P:
I wasn't working on it until you called me.
I had never seen the memorandum that was
Regraded Unclassified
186
- 3 -
sent before.
HMJr:
Well, who is doing it?
P:
What?
HMJr:
Who is doing it?
P:
It was being worked on, principally, in the
Legal Division, but we had some people working
on another phase of the thing that had nothing
to do with the report for you.
HMJr:
Well, I thought this was Foreign Funds.
P:
Well, it is Foreign Funds, but it was being
worked on in the Legal Division.
HMJr:
Well, I - what's the difference between
P:
Well, there isn't any difference, but I'll see
that the report
HMJr:
But I mean, when a thing is Foreign Funds, why
does the Legal Division work on it instead of
you? I don't understand it.
P:
Well, they have lawyers working on these matters,
too. Now, some of these matters
HMJr:
Well, I couldn't get Foley so I called you. I
tried to get Foley and he was out of town.
P:
That's right. And you also tried to get Bernstein.
HMJr:
Yeah.
P:
And Bernstein and I discussed it shortly after
you talked to me, and we immediately got to
work on it.
HMJr:
Pehle.
P:
Yes, sir.
HMJr:
In the future, when I ask you to do something,
see, come through with it. Give me what I ask,
Regraded Unclassified
187
- 4 -
and then if you say, "I'll give you something
else a week later," do it that way; but please
don't make me follow you up, will you?
P:
That's right.
HMJr:
Because you're too good a man, and I'm too busy.
P:
Well, you shouldn't have to. I assumed that
Mr. Foley would explain to you
HMJr:
No, he didn't.
P:
that we were asking for an extension of
time, and he didn't in time; but I'll take
care of it myself.
HMJr:
Well, he spoke to me about another matter a
little while ago, and he did not mention it.
P:
Well, he forgot about it; but I'll take care
of it myself.
HMJr:
All right.
Regraded Unclassified
2d 2 braft June 2, 19 188
Five weeks have gone by since President Roosevelt outlined
S national economic policy for fighting the war on the home
front, the war against the rising cost of living. You
will remember that he called for heavier taxation, for
fixin prices and rents, for stabilizing wages and farm
prices, for putting more billions into War Bonds, for
rationing scarce commodities, and finally, for checking
instalment buying and paying off debts and mortgages.
Those were America's marching orders from the
Commander-In-Chief. They were hard and stern, and they
called for effort and sacrifice without precedent in our
country's history. Yet in the weeks since thenPresident's
Regraded Unclassified
189
- 2 -
speech, the American people have shown a truly wonderful
willingness to make any effort and any sacrifice that
may be needed. Their record of accomplishment, even in
these earliest stages of the program, is a matter for
satisfaction and for pride. They have proved that the
President was right in trusting the people to put their
country's interest above their own. They have proved
once more that you cannot carry out a great economic
program on a nationwide scale merely by saying "pass a
law", or "write an Executive Order".
The results of the past five weeks have been made
possible only by willing and constant cooperation from
everyone, and the success of the President's program
will depend in the same way upon the continuing cooperation
of each and every one of us.
to
Regraded Unclassified
190
- 3 -
Let's look briefly at the record of the five
weeks since the President spoke.
The rising cost of living has been checked for the
first time in many months and is now
percent below
the figure for April.
A The price fixing system of immense complexity has
been applied to a vast range of everyday civilian goods,
with the patriotic help of 1,800,000 retailers in all parts
of the country.
Retail sales have fallen off for the first time
in a year -- and they must continue to fall off because
We civilians cannot go on buying the goods that take
away materials and labor from our war industries.
Labor has accepted voluntarily a whole series of
self-denying restrictions in order to help carry out
B
Regraded Unclassified
- 4 -
191
the President's program. The three great labor
organizations, working together as one, have given up
double pay on Sundays, and for the duration of the war
they have given up the right to strike, the strongest
weapon in labor's armory.
The taxpayers have responded to this emergency
with 8 patriotism that is beyond all praise. Up to
the first of May, 24,947,000 Americans have filed
income tax returns this year, by far the greatest
number in history. This, too, is a proof that the
spirit of the American people is sound and is ready for
whatever sacrifices may lie ahead.
The Treasury has slready recommended new taxes
that will yield $8,700,000,000 of additional revenue.
Regraded Unclassified
192
- 5 -
That is a colossal sum; yet as I told the Ways and Means
Committee of the House of Representatives, which is charged
with the duty of writing the new tax bill, that amount
is the very least that we can afford to ask of the American
people at this critical time. We have based our tax
recommendations upon one great principle which lies at
the root of ir Federal tax system -- the principle that
heavier taxes should be borne proportionately by those
best able to bear them. We call this the principle of
ability to pay.
In line with this elementary truth we have proposed
sharply increased taxes on corporations and higher individual
incomes. In the same way we have urged Congress to abolish
8 number of special privileges by which 8 comparatively
- 6 -
193
few wealthy taxpayers have been able in past years to
escape their fair share of the burden. We have also
recommended taxation of millions with small income
who have never had to pay direct taxes before, but we
recommended this upon the assumption that Congress would
tax the higher incomes more heavily and at the same time
close the loopholes in the law.
In order to be sure that we are taking the
profit out of war, we have recommended 8 basic tax rate
of 90 cents on every dollar of excess profit beyond a
reasonable rate of return, And this would be supplemented
by E tax of 100 cents on every dollar for extraordinary
and unreasonable excess profits. It is a loathsome thing
to enrich onesself at a time of national sacrifice and
194
- 7 -
danger, and the American people are determined that it there
shall be none of it in this war.
In addition to recommending higher excess profits
taxes, I served notice upon American business only the
other day that we would permit no trickery or chicanery
to distort tax returns SO as to reduce a company's
declared profits and thus to reduce its tax liability.
I have been shocked, to put it mildly, at evidence that
companies profiting from war contracts are distributing
extravagant amounts in salaries, bonuses and other corporate
expenses, so that they might escape paying full and fair taxes on
profits to the Government. We are watching the tax returns
of every company engaged in war production. We are in a
position to expose and prevent any cheating on those tax
Regraded Unclassified
- 8 -
195
returns. We are determined to make such companies pay
what they really owe.
The Ways and Means Committee is now hard at work
writing a new tax bill. It is not for me to discuss
the deteils of what they are about to recommend. I should
like to make only this comment: let it not be aid of
the new tax program that it was too little and too late.
The people of this country have shown in A. thousand
ways that they are not in a mood for half measures, either
financial or military. They will be disappointed in their
leaders only if those leaders fail to ask them for the
very maximum that can be achieved, in the field of taxation
as in every other phase of the war effort.
The same willingness has been shown by millions of
Americans in the past year, especially in the past few
Regraded Unclassified
- 9 -
196
months, in the buying of War Bonds and Stamps. I am
very happy that we were went over our nationalggota for the
month of May and that our total sales for the month
reached $634,000,000. But we shall have to do much
better in June and in the following months. The quota
for June has been fixed at $800,000,000, and in July
and every month thereafter we expect a billion dollars.
If we are to reach those quotas and carry out a vital
part of the President's program, everyone who gets a
regular income will have to cut down on personal spending
and put at least ten percent of his current earnings
into War Londs.
Boiled down to its essentials, the President's program
is of call for restraint -- not just by a few of us, but
by all of us; not just occasionally, but every day as long
Regraded Unclassified
- 10 -
197
as the war may last. Our war industries need all the
materials and all the labor they can get. Our fightin g
men and our Allies in all parts of the world need those
materials to win the war. If we spend our money extrava-
gantly, foolishly, or even to satisfy what would have
been our normal wants in normal times, We handicap our
war production program, and at the same time we create
8 pressure on price ceiling which might have r uinous
consequences to our war effort and our economic future.
The patriotic conscience of every American should
extend into every American pocket or wallet or handbag.
If that conscience could speak it would ask you these
questions every time you were about to spend your money.
It would ask you "Do you really need what you are going
to buy? Can't you do without it? Why not weit with
D-B
- 11 -
198
buying it until after the war? Why not build up a nest
850 for your family in the future, and put your money
at your country's service now?"
I am in dead earnest when I say that any man or
woman who chooses this time to 6° on a buying spree is
committing an act of sabotage against our war effort.
The petriotic thing to do, and the smart thing as well,
is to make old clothes last longer, to eat simpler meals,
to patch up old household appliances instead of buying
new ones, and to do everything else that is possible to
cut down on personal spending. If there is any one
place where the fight on the home front can be won and
where the success of the President's program can be assured,
it is right in your pocket, your wallet or your handbag.
Regraded Unclassified
199
- 12 -
Let me repeat & few words of what the President
said five weeks ago. "We cannot fight this war," he
said, "we cannot exert our maximum effort on a spend-as-
usual basis. All of us are used to spending money for
things we want but which are not absolutely essential.
We will all have to forego that spending. We cannot
have all we want if our soldiers and sailors are to have
all they need. "HIf If we answer the President's call and
all 4 11.4 put at host 10% of our carnings
put our savings into War Bonds, it will be & big step
A
much more Than a bigstep
toward financing the war. and it will be a decisive victory
A
in the trouble on the home front. It will mean much
more than that. It will mean that we are building the
kind of future we want for ourselves and our children.
A great deal has been said and written in recent weeks
Regraded Unclassified
200
- 13 -
about the kind of political and economic system we
want after this terrible war is over. But let me
remind you that no Government or group of govern-
ments can decide the shape of the post-war world by
writing e constitution or waving & magic wand.
We can do a great deal to shape our future now.
Our actions now will to some extent determine the kind
of world we shall have after the war. Whatever we do
now to assure economic stability in the post-war years
will be worth all the speeches, all the resolutions, all
the ambitious paper plans in which the post-war world is
being outlined for us.
I feel strongly that every War Bond bought today is
a brick in the foundation of the free and democratic
world in order that we are fighting to achieve. Millions
Regraded Unclassified
201
- 14 -
in this country today are quietly establishing a reserve
of spending power for themselves in the years after the
war, and in that way they are guarding against the terrors
of unemployment and want and fear.
There is nothing dramatic in saving your money, bit
b, bit, to buy War Bonds; there is nothing dramatic, for
that matter, in any of the President's seven-point program.
There are no medals in this war for self-denial, no matter
how much courage or sacrifice it may involve. Yet it will
be a tremendously dramatic thing if the patriotic effort
of the people themselves can finance the people's victory.
We have a great opportunity, right now. We are going to
rise to that opportunity. In the President's words, "We
can, we will, we must." "
B
Regraded Unclassified
3d draft
6/2/42
202
DRAFT OF SECRETARY MORGENTHAU'S BROADCAST, WEDNESDAY JUNE 3. 230
This is the first of a series of nationwide broadcasts
by leaders of the Government to follow up the President's
seven-point economic program of April 27th.
Five weeks have gone by since President Roosevelt
outlined a national economic policy for fighting the
war on the home front, the war against the rising cost
of living. You will remember that he called for heavier
taxation, for fixing prices and rents, for stabilizing
wages and farm prices, for putting more billions into
War Donds, for rationing scarce commodities, and finally,
for checking instalment buying and paying off debts and
mortgages.
Those were America's marching orders from the
Commander-In-Chief. They were hard and stern, and they
called for effort and sacrifice without precedent in our
82
Regraded Unclassified
203
- 2 -
country's history. I should like to repeat tonight just
8. few words of what he said. "We cannot fight this war,"
he said, "we cannot exert our maximum effort on B. spend-
as-usual basis. All of us are used to spending money
for things we want but which are not absolutely essential.
We will all have to forego that spending. We cannot have
all WA want if our soldiers and sailors are to have all
they need."
In the weeks since then the American people have
shown their willingness to make any effort and any
sacrifice that may be needed. It has been immensely
encouraging to us in Washington to S ee the voluntary
cooperation that has come from all parts of the country
and from all sections of the people, especially in the
82
Regraded Unclassified
204
- 3 -
fields of price fixing, rationing and saving. That
voluntary cooperation will be more and more necessary
in the months ahead. You cannot carry out any great
national economic policy merely by saying "pass a law"
or "write an Executive Order". The President's program
can be carried through to success only if there is
active and constant cooperation from each and every
one of us.
Boiled down to its essentials, this program is 8
call for self-restraint -- not just by a few of us, but
by all of us; not just occasionally, but every day as
long as the war may last. Our war industries need all
the materials and all the labor they can get. Our
fighting men and our allies in all parts of the world
22
Regraded Unclassified
- 4 -
205
need those materials to win the war. If we spend our
money extravagantly, carelessly, or even to satisfy
what would have been our normal wants in normal times,
we handicap our war production program, and at the same
time we create pressure on the existing price ceiling,
with ruinous consequences to our war effort and to our
economic future.
The patriotic conscience of every American should
extend into every American pocket or wallet or handbag.
If that conscience could speak it would ask you these
questions every time you were about to spend your money.
It would ask you "Do you really need what you are going
to buy? Can'you do without it? Why not wait with buying
it until after the war? Why not build up a nest egg for
2
Regraded Unclassified
- 5 -
206
your family in the future, and put your money at your
country's service now?"
I am in dead earnest when I say that any man or
woman who chooses this time to go on a buying spree is
committing an act of sabotage against our war effort.
The patriotic thing to do, and the smart thing BS well,
is to make old clothes last longer, to eat simpler meals,
to patch up old household appliances instead of buying
new ones, end to do everything else that is possible
to cut down on personal spending. If there is any one
place where the fight on the home front can be won and
where the success of the President's program can be
assured, it is right in your pocket, your wallet or your
handbag.
2
Regraded Unclassified
- 6 -
207
We at the Treasury have a rather special interest
in the American pocket, as you all know. It is our job
to finance this greatest and costliest of all wars, a
war that is already costing 130 million dollars every
GBY. It is also our job to finance the war in such a
way that it will not bring uncontrolled pressure on
prices and all the other evils of inflation in its train.
the Succeing
To accomplish these purposes we / have two chief instruments
at our disposal: the first, which is compulsory, is
taxation; and the second, which depends upon voluntary
effort, is the sale of War Bonds and S+amps. Each of
them is 8 vitally important part of the President's
seven-point program, and unless each of them is successful
the seven-point program as a whole cannot possibly succeed.
0-82
Regraded Unclassified
- 7 -
208
The Treasury has already recommended new taxes
that will yield $8,700,000,000 of additional revenue.
informed
That is a colossal sum; yet as I told the Ways end Means
Committee of the House of Representatives, which is
charged with the duty of writing the new tax bill, that
emount is the very least that we can afford to ask of
the American people at this critical time. We have
based our tax recommendations upon one great principle
which lies at the root of our Federal tax system -- the
principle that heavier taxes should be borne proportionately
by those best able to bear them. We call this the principle
of ability to pay.
In line with this elementary truth we have proposed
sharply increased taxes on corporations and higher individual
incomes. In the same way we have urged Congress to abolish
-32
Regraded Unclassified
- 8 -
209
a number of special privileges by which a comparatively
few wealthy taxpayers have been able in past years to
escape their fair share of the burden. We have also
recommended the taxation of millions with small incomes
who have never had to pay direct taxes before, but we
recommended this upon the assumption that Congress would
tax the higher incomes more heavily and al the same time
close the loopholes in the law.
To be certain that we are taking the profit out
of war, we have recommended 8. basic tax rate of 90
cents on every dollar of excess profit beyond a
reasonable rate of return, and this would be supple-
mented by a tax of 100 cents on every dollar for extra-
ordinary and unreasonable excess profits. It is a loathesome
0-12
210
- 9 -
thing to enrich one's self at a time of national sacrifice
and danger, and the American people are determined that
there shall be none of it in this war.
I also served notice upon American business only
the other day that we would permit no trickery or chicanery
to distort tax returns so 2.8 to reduce a company's declared
profits and thus to reduce its tax liability. I have been
shocked, to put it mildly, at evidence that companies
profiting from war contracts are distributing extravagant
amounts in salaries, bonuses and other corporate expenses,
SO that they might escape paying full and fair taxes on
profits to the Government. We are watching the tax returns
of every company engaged in war production. We are in a
position to expose and prevent any cheating on those tax
0-02
Regraded Unclassified
211
- 10 -
returns. We are determined to make such companies pay
what they really owe.
The Ways and Means Committee is now hard at work
writing a new tax bill. It is not for me to discuss
the details of what they are about to recommend. I
should like to make only this comment: let it not be
said of the new tax program that it was too little and
too late. The people of this country have shown in &
thousand ways that they are not in a moo for half measures,
either financial or military. They will be disappointed
in their leaders only if those leaders fail to ask them
for the very maximum that can be achieved, in the field
of taxation as in every other phase of the war effort.
The same willingness has been shown by millions of
Americans in the past year, especially in the past few
D-12
Regraded Unclassified
- 11 -
212
months, in the buying of War Bonds and Stamps. I am
very happy that we went over our national quota for
the month of May and that our total sales for the month
reached $634,000,000. But we shall have to do much
better in June and in the following months. The quota
for June has been fixed at $800,000,000, and in July
and every month therafter we expect a billion dollars.
If we are to reach those quotas and carry out 8 vital
part of the President's program, everyone who sets a
regular income will have to cut down on personal spending
and put at least ten percent of his current earnings
into War Bonds.
If all of us put at least ten percent of our earnings
into War Bonds, it will be much more than a big step
toward financing the war. It will mean that we are
Regraded Unclassified
213
- 12 -
building the kind of future we want for ourselves and
our children. A great deal has been said and written
in recent weeks about the kind of political and economic
system we want after this terrible war is over. But
let me remind you that no Government or group of govern-
ments can decide the shape of the post-war world by
writing 8 constitution or waving 8 magic wand.
We can do a great deal to shape our future -- now.
Our actions -- now -- will to some extent determine the
kind of world we shall have after the war. Whatever we
do now to assure economic stability in the post-war
years will be worth all the speeches, all the resolutions,
all the ambitious paper plans in which the post-war world
is being outlined for us.
0-12
Regraded Unclassified
- 13 -
214
I feel strongly that every War Bond bought today
is a brick in the foundation of the free and democratic
world order that We are fighting to achieve. Millions
in this country today are quietly establishing & reserve
of spending power for themselves in the years after the
war, and in that way they are guarding against the terrors
of unemployment and want and fear.
There is nothing dramatic in saving your money,
bit by bit, to buy War Bonds; there is nothing dramatic,
for that matter, in any of the President's seven-point
program. There are no medals in this war for self-denial,
no matter how much courage or sacrifice it may involve.
Yet it will be a tremendously dramatic thing if the petriotic
effort of the people themselves can finance the people's
victory. We have & great opportunity, right now. We are
-82
Regraded Unclassified
215
- 14 -
going to rise to that opportunity. In the President's
words, "We can, we will, we must. If
D-B2
Regraded Unclassified
DHN EDGAR HOOVER
DIRECTOR
216
Frderal Bureau of Investigation
United States Department of Justice
ashington, B. C.
JUN 2 1942
PERSONAL AND CONFIDENTIAL
BY SPECIAL MESSENGER
Honorable Henry Morgenthau, Jr.
The Secretary of the Treasury
Washington, D. C.
My dear Mr. Secretary:
Reference is made to your recent telephone call concerning
a letter received by you from your niece, Mrs. Henry Fox, relative to
the situation at the Coonamessett Inn near Camp Edwards, Massachusetts.
I wish to advise you that Mrs. Fox was interviewed by a
Special Agent of this Bureau and informed that she began residing at
the Coonamessett Inn, with her mother and her husband, Captain Fox,
five weeks prior to the time of the interview. Captain Fox has since
been transferred from Camp Edwards. On the evening of May 23, 1942,
Mrs. Fox and her mother, Mrs. Berien, visited the cocktail lounge at the
Inn and noted that a new pianist, upon request, was playing numerous
German songs. Mrs. Berien on the following morning observed that
several employees were playing cards and talking with an apparent German
accent. These instances, together with the general atmosphere at the
Inn, aroused the suspicions of Mrs. Fox. The Coonamessett Inn and
Coonamessett Club are occupied entirely at the present time by Army
officer personnel and their families.
For your confidential information, an investigation had
previously been instituted and is being continued regarding the above
matter.
Your courtesy in furnishing this Bureau the information re-
ceived from your niece is deeply appreciated.
Sincerely,
Moover
C
Regraded Unclassified
V
TO:
217
0 Secretary Morgesthan
Dear Menrya
This note pertains to our
conversation. Maybe by continuing
the suggestion - can get some result.
Jub
June 2, 1942
2
MR. FORRESTAL
1
10-18880
0
218
2 June 1942
TO JUDGE PATTERSO
What do you think of the Secretary of Mar and
Secretary of the Navy witing to the Office of
Civilian Defense suggesting that an effort be
made to give selectees & someshat more enthusi-
astic send-off than is now accorded them in
their various commities?
From all reports that I have had, the going
away of these boys is about as dismal as it could
possibly be - a marked contrast to the last war.
James Forrestal
CC: Secretary of the Treasury
Regraded Unclassified
219
TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION
DATE
JUN 2 1942
TO
FROM
Mr. Hase
Secretary AM Morgenthau
Subject: Progress report concerning surveys by the Office of
Facts and Figures
At your request, the Office of Facts and Figures 1s
working on several surveys, which for convenience may be
classified in four groups. This memorandum will review
briefly the present status of the work under each of these
groups.
I. The Economic Problem 88 8 Whole
The Office of Facts and Figures 18 now compiling 8
summary of its findings to date on the economic problem as
a whole. This will include the results not only of
Dr. Likert's work but of various polls, analyses and other
information, This material will be made available to you
just 88 soon as the compilation 18 completed,
II. Gasoline Rationing
Prior to your request for information concerning the
effects of gasoline rationing, the Office of Facts and
Figures had already arranged to have three questions on
this same subject inserted in the next Gallop poll. Your
request was received in time, however, for another question
to be added.
III. The Inflation Problem
The Office of Facts and Figures has worked out 8 plan
to follow on a fairly continuous basis the public's atti-
tude and understanding in relation to the inflation problem.
The results of one study are expected on June 16 and those
of another on July 6. In view of your request and similar
requests coming from OPA and others, however, the schedule
is being shifted and it 18 now planned to conduct a weekly
survey in about 20 cities with enough interviews BO that
three-week moving averages will be reliable for trends and
Regraded Unclassified
220
Secretary Morgenthau - 2
one-week figures will be at least indicative. A memo-
randum on this project is now being prepared by the Office
of Facts and Figures, and it is expected that this will be
available in a few days.
IV. War Savings Stamps and their Redeemability
Last week Mr. Du Bois and Mr. Wilson of the Office
of Facts and Figures called us regarding the wording of
questions which were proposed for use to determine the
public reaction to the idea of making war savings stamps
redeemable only for war savings bonds but not in cash.
Mr. Du Bois said that they had made a test survey of
about 50 people concerning this cuestion and found that
one-third were opposed to the 1dea, He thought that the
opposition would be reduced considerably if the questions
were reworded to make it very clear that the stamps would
still be cashable after the war, and that there would be
no effect on the redeemability of bonds from this proposed
change.
On Friday afternoon it was finally agreed with
Mr. Wilson, after checking with Mr. Kuhn, that there would
be three questions with the wording approximately as fol-
lows:
1. Have you ever bought any war savings stampe?
2. If yes, have you turned any in for cash?
3. Would you favor or oppose the 1dea of having
war savings stamps which could be used for
buying war savings bonds, but could not be
turned in for cash until after the war --
provided that war savings bonds could be
turned in at any time as they may be now.
Mr. Wilson explained that since this was a short question-
naire, they were going to be very careful to explain the
situation to the people being interviewed rather than to
rely solely on the questions themselves.
The sample contemplated for use in the survey 16 about
500 people spread over the country in about 30 places.
Regraded Unclassified
221
Secretary Morgenthau - 3
In addition to the three questions concerning war sav-
ings stamps, the following factual information will be
obtained.
1. Sex
2. Age group: 21-34
35-49
50 and over
3. Economic level: Wealthy
Upper middle-class
Average
Poor
4. Education: Some grade school
Grade school graduate
Some high school
High school graduate
Some college
College greduate
Mr. Wilson said that he hoped that the results of
the survey would be available about the middle of this
week.
Regraded Unclassified
7ar222
OFFICE OF FACTS AND FIGURES
Bureau of Intelligence
13
THE BUYING OF WAR BONDS AND STAMPS
For Administrative Use Only
CONFIDENTIAL
Division of Surveys
Special Report Number 12
June 2, 1942
223
SUMMARY
Interviews in nine citios were conducted during the period of May
7 to May 19 in order to find out how people felt about bond and
stamp sales. Interviewing was done chiefly in industrial plants
and business firms. Plants using and not using payroll deduction
methods for increasing bond sales were included.
I. WHO ARE THE PEOPLE BUYING BONDS?
Bond sales appear to be going better in defense plants than in
non-defense plants. Where plans similar to the one proposed by
the Treasury are in use, increases are found both in the pro-
portion of employees participating and in the size of individual
purchases.
II. WHY DO PEOPLE BUY OR NOT BUY BONDS?
People buy to aid the country in its war effort and because bonds
are good investments. They do not buy because of the desire to
prevent inflation. While laok of money is the chief reason as-
signed for not buying, neglect and failure to understand the
seriousness of the situation are mentioned often enough to sug-
rest that there are still many not buying who could and would
purchase if they were properly annroached.
III. WHAT IS THE EFFECT OF THE PAYROLL PLANS ON THE BUYING OF BONDS?
In spite of the many appeals for purchase made outside industrial
and business establishments, the amount of purchasing varies so
directly with the plan in use at the place of employment that
there is no doubt of the significance of such plans. Wanagement
initiative is Recepted, provided the appealis transmitted in B.
personal way.
IV. SHOULD THE BUYING BE VOLUNTARY OR COMPULSORY?
There is a paramount desire to keep buying on a voluntary busis,
if quotas can be reached. Many feel that it is too early to
know how far voluntary buying can 8,0 if it is more vigorously
pushed. If the voluntary plan does not succeed, the compulsory
plan will be acceptable na meeting an emergency. Assurance is
wanted, however, that B. compulsory plan, if adopted, will make
allowances for those of very low income and for those with de-
pendents.
224
THE BUYING OF WAR RONDS AND STAMPS
Introduction
Who are the people buying bonds? Why do they buy or not
buy? What appeals are most effective in getting people
to buy? How are the payroll deduction plans working?
What would be the reaction to a compulsory savings plan?
The problems suggested by these questions were looked in-
to by seven field interviewers who talked with workers and
representatives of management in nine cities: Pall River,
Hartford, New York, Cleveland, Pittsburgh, St. Louis, Mem-
phis, New Orleans, and San Francisco. They reported 453
interviews, of which 205 were with labor, 161 with white
collar workers, and 81 with representatives of management
(six of those interviewed were not classifiable). The
observations in San Francisco were based on too few in-
terviews to be treated in the tables, but they contributed
to the background of the report. Interviews earlier se-
cured in Baltimore are not included.*
Interviewers adapted their methods to the particular local
situation, rather than following a rigidly prescribed in-
terview schedule. As a consequence, a good deal of qual-
itative material was secured not readily subjected to stat-
istical treatment. The whole study should be viewed as
FLD exploratory survey rather than B.S a rigidly controlled
investigation.
Plants with and without payroll deduction plans were in-
cluded, covering all sizes from those employing less than
100 employes to those employing several thousand workers.
Effective Appeals in the Buying of War Bonds: Prelim-
inary Data from Baltimore, Division of Surveys, Special
Report Number 9, May 14, 1942.
Regraded Unclassified
225
1
I. WHO ARE THE PEOPLE BUYING BONDS?
A. Dofense workers in greater proportions than non-
defense workers are buying bonds to the extent of
at least 5% of their wages (Table 1*). They feel
that the Government has made their jobs possible;
they are close to the war effort; and purchase of
bonds seems to them a natural way to share in the
cost of the war effort. Their increased wages are,
of course, an important factor. Many non-defense
workers have not shared in the general wage in-
crease of the past year.
B. Those in plants with some sort of purchase plan
participate to 8. greater extent than those with-
out such a plan (Table 2).
1. The payroll deduction plan of the Treasury se-
cured participation to some extent from 90%
of those interviewed for whom information was
available. The plan whereby stamps are placed
in the pay envelope in lieu of cash secured a
correspondingly large amount of participation.
2. When it is possible to purchase bonds or
stamps only at the time of being paid, a large
fraction of the employees do buy, but the num-
ber who purchase up to at lenst 5% of their
wage is much smaller than under the Treasury
or cash-stamp plans.
3. Where there is no plan, one-third of those who
were asked admitted that they were buying no
bonds. It is evident that a systematic plan
is important for the encouragement of full
participation.
C. The number investing enough to come anywhere near
the goal of 10% of the income received, while vary-
ing from city to city, is nowhere above half of
those interviewed (Table 3). If these figures are
representative, far more promotion will be needed
All Tables are in the Appendix.
Regraded Unclassified
226
2
3
to reach the Treasury goals. The overall average
The straight thrift notif is much more fami-
is 26% who claim to invest 5% or more of the money
liar than the theoretical concepts, such
earned; half as many (13%) state that they are
the prevention of inflation. The anti-infle-
making no purchases.
tion principle was mentioned by only 2% of
those giving reasons for buying. It was re-
The differences from city to city are not ES
cognized more often by management than by
striking as they appear from Table 3, because
either white collar workers or industrial
of the fluctuations to be expected with the
workers, but only one in twenty of the DAS-
small number of interviews per city.
agerial group thought it Will an important
reason why en individual would buy bonds.
II. MY DO PEOPLE BUY OR NOT BUY BONDS?
C. Against buying, the main consideration is lack of
money (Table 5). Beyond the fiscal considerations,
other suggestions as to why people do not buy are
that they do not realize the seriousness of the
A. To help the country win the war is stated over and
over again as the main reason for investing in bonds
war, or they have not had the bonds brought
and stamps. It is cited by 70% of those giving
strongly enough to their attention.
reasons for buying (Table 4).
1. Monetary considerations are surgested as a
reason by management more often than by la-
"My Government wants me to buy them and that's the
bor for the lack of bond purchases by em-
least I can do. I can't go out and fight and I
ployees. White collar workers, especially,
can't work in R. mill because I'm too old, 80 that
have not shared in the increases in income
is the least I can do
At the same time it's
over the last year. For them, as for many
a saving." Thus a worman who is the assistant
others, rises in living costs have more than
treasurer of a bank note company describes her mo-
counterbalanced any wage increases.
tives.
The president of a St. Louis department storm
To win the war through the purchase of military
makes the case for his employees:
equipment, to help the boys in the army, to help
particular boys (relatives in the service) -
"Salaries are fixed, and living posts are
each of these vivid direct uses for the money
rising, henoe it is difficult to buy bonds
placed in the bonds makes its appeal to some of
and stamps. It is not due to lack of on-
the people who talked with interviewers.
thusiasm on the part of the employees.
After all ours is a low-salaried business.
"My husband left Saturday for the army. I feel
Our people don't make ao much as those
like buying more now. When it hits home I guess
who do war work. Our sales and profits
it gets you." This young wife manages a hosiery
are relatively stationary. Our people
shop in Pittsburgh.
have mde some money, but they know they
will make less next year because of the
B. As an investment and a place for savings is the
ourtailment of our business."
provident reason assigned next in £ requency to
aid for the war effort.
"It's a good saving for me. Otherwise I would spend
it - and I know the men out there need the money.
Regraded Unclassified
227
5
2. Lack of realization of the seriousness of the
war 0.5 a reason for not buying is nearly always
with ideas to offer, include the raising of wages,
If charge against the other fellow. Similar
more interest by management, stress upon the sav-
charges are those of lack of patriotiam, of
ings angle.
being "slackers". Dissatisfaction with govern-
mental policies and expenditures WAS pointed
1. Those recommending publicity aften specified
out AS a reason for others not buying and also
not only more publicity, but also suggested
RS grounds for personal reluctance in buying.
a change in kind: more spectacular demonstra-
tions, with parades, speakers, group singing - -
A messenger in a defense plant in Pitts-
"more like the Liberty Bond campaigns of the
last war."
burgh says: "I don't have the money.
Other people don't buy because they can't
afford it and because they figure the money
2. Those who cited compulsion felt it was the only
is wasted in Washington. It's not going
way to guarantee sales at a. high level, with
toward defense."
all participating. One-fourth of the manager-
ial group offered suggestions; less of the
3.* Lack of information and mere neglect are oited
white collar group; and a still maller percen-
sufficiently often 8.8 reasons for not buying
tage of the laboring group proposed compulsion
that the suggestion is strong that further sales
as the best way to increase sales.
promotion is desirable. Nearly at tenth of
those giving reasons for people not buying
3. To specify the things for which money is boing
felt that there was lack of needed enlighten-
spent appears to many as the ideal way of oon-
vinoing people that they should buy bonds. The
ment about bonds and stamps. A corresponding
guns, planes and ships are visible symbols of
group felt that many of those who would buy if
what a war costs.
urged were failing to buy simply out of neglect.
A department store clerk in New Orleans
says: "The problem hasn't been put before
them in the right way and they don't know
the value of buying bonds."
The foreman of a drafting-materials firm
in New York: "The reason is they are just
too lazy to go out and buy them. They al-
ways feel, 'I'll do it tomorrow' or 'I can
always go in'; then they just let it slide.
I've never yet seen anybody who was opposed
to buying bonds."
D. Suggestions for increasing sales were offered spon-
taneously by many of those interviewed (Table 6).
The order of suggestions from the total offering
them is n.a follows: increase the effectiveness of
publicity (23%); approach the individual through
personal contact (15%); relate the purchase of
bonds to the procuring of war materials (14%); ex-
tend payroll deduction plans (8%). Other sugges-
tione, given by less than one in twenty of those
Regraded Unclassified
228
6
7
III. WHAT IS THE EFFECT OF PAYROLL PLANS ON THE BUYING OF
2. The general importance of punhing bond sales
BONDS?
at the place of employment is very evident
in all the comparisons.
Three types of plans for stimulating the sale of bonde
and stamps are referred to in the report. These are:
People are appealed to over the radio, in
retail stores, by posters. In spite of all
1. The Treasury Plan. The employee authorizes the
of these appeals, the amount of bonds bought
firm to deduct a specified amount from his pay
by individuals interviewed was an almost
check. This is kept in a separate account until
direct reflection of the extent to which
an amount equal to the purchase price of a bond
there had been a determined effort to sell
is reached. The bond is then bought and delivered
bonds at their place of employment.
to the employee. The plan is entirely voluntary,
and does not necessarily specify the amount each
B. Plans appear to have progressed somewhat better in
worker who participates must set aside each week.
defense plants than in non-defense plants (Table 8).
This is part and parcel of the wage situation in
2. The Stamps-for-Cash Plan. A much less systematic
defense industries, the sense of participation in
the war effort, and the easy appeal to help the
plan consists in an arrangement whereby the worker
pledges to receive a certain amount of his pay in
Government which gives you your job.
stampa instead of cash.
C. Reasons for approving regular payroll deductions
3. Pay-Period Purchase Plan. The plant usually
plans emphasize savings, "painlessness," and
distributes pledge cards, but the actual buying
justice ("it reaches everybody") (Table 9).
1a ordinarily left to the incivioual. A window
Baker in a Pittsburgh defense plant cafeteria:
is provided where purchases can be made. There
"I like the deduction plan. You don't miss
are local variations in practice.
the money when it is taxen out like Social
Security and hospitalization."
Most of the following discussion is based on the first
of these, although the others are reflected in the
New Orleans department store employee:
tables (ef. Table 2).
"This way you save and you don't realize it
at all - don't feel it at all."
A. In plants in which a payroll dequetion plan is
working well, more employees buy bonds, but that
Further analysis (not shown in Table 9) re-
is not all: more of them buy more bonds. That
vealed that the reasons for favoring plans
is, a larger percentage invest upwards of 5% of
were given in similar proportions by those now
their pay checks in bonds in those plants in
having plans and by those without plans.
which a plan works well (Table 7). Nearly two-
The widespread approval of the idea of a
fifths of those in plants with a satisfactory
payroll deduction plan shows that much
plan invest this much; only one-fifth invest a
remains to be done in inaugurating the plan
corresponding amount in plants with a plan which
where it does not now exist.
is working poorly.
D. How should plans be started? Comments have been
The good plan not only facilitates participa-
received no to (1) how present plans actually got
tion, but it stimulates interest in the
under way, and (2) how people think plans ought to
ultimate goal, which is volume of investment
be initiated.
as well as proportion of people having A
share.
1. Management is looked upon as the logical group is
to initiate payroll deduction plans. This
1. The poor plan does better than no plan at all
as true of those who reported on the history
in encouraging buying. Twice as many report
of their own plan as it was of those who
purchases amounting to 5% of their incomes
suggested what ought to be done.
when there is a plan - although one not
working very well - than those whose employ-
ment establishment has no plan at all.
Regraded Unclassified
229
B.
9
Other managerial representatives
A St. Louis factory worker: "From the
top. They should just call the men
see their own promotion of the plan
as a possible basis for requested
together and explain the thing to them
wage increases, and for that reason
in a friendly way. After all, these
wish to avoid promotional responsi-
things generally come from the executives,
bility.
and that's where it should be."
2. The approach to the employee made by management
a. Four-fifths of those interviewed in plants
is important. From the results in plants with
with payroll deduction plans stated that
successful and unsuccessful plans, it is
the first approaches were made by nanage-
evident that the approach should be through a
ment (Table 10). The proportion was some-
personal appeal by management. The plan set up
what higher in those plants where the plans
within managerial routine, without the personal
were working well than in those plants in
appeal, has much less chance of success (Table
which the plans were working poorly.
10).
b. Management is also mentioned when people
a. Plans at present successful began by per-
state their preferences as to who should
sonal appeals to employees through manage-
start plans (Table 11). Management is
ment, according to 716 of those inter-
selected by both managerial and laboring
viewed in such plants. Such personal
groups, and especially by white collar
approaches were reported by only half as
workers.
many (34%) in plants in which the plan
was judged not to be working as well.
The suggestion that the unions should
start it comes from a larger propor-
3. What excuses are given by management in those
tion of the managerial group than
plants in which payroll deduction plana have
from the labor group. Why should
not been started?
this be?
Managerial representatives in each of ten
There are, of course, different
plants produced this picture: four of them
reasons depending upon different
said they had not been approached by Treasury
circumstances. Some fear that
representatives; three said their employees
management's initiation of the plan
received such low wages that the plan would
might be interpreted as coercion,
not be feasible; one each complained about
and might therefore defeat the pur-
the amount of accounting which would be
pose of the plan, whereas a plan
necessary, the imoracticality of the plan
started by the union would not be
because of high labor turnover, and the
under suspicion.
avoidance of the plan because of the fear
that the unions might demand a check-off
A Bartford laboratory assistant:
system.
"I think it would be nice if the
shop committee would start it.
What do the managers think of the cooperation
The men wouldn't feel that some-
of unions? Interpretable opinions were
thing was being put over on them.
secured in & few plants only. In plants
If the superintendent or someone
with plans working well, five say unions are the
like that came over, they'd monder
cooperating fully and only one says that
what he was getting out of it."
union was not fully cooperating. In plants
where the plans wore not going so well,
opinion said to be cooperating, in four others
was divided - in four the unions they were
were not.
Regraded Unclassified
230
10
11
4. The implication appears quite clear. Payroll
problems involve bookkeeping arrangements
IV, SHOULD BUYING BE VOLUNTARY OR COMPULSORY
requiring the full cooperation of management,
so that management tends to be assigned the
major responsibility in setting up payroll
The issue of promoting bond sales on a voluntary basis,
deduction plans. when this is done 1m-
or requiring their purchase as part of the financial program
personally, however, there may be resentment;
necessitated by the war, hits deep at the interpretation of
success is more likely if management presents
the role of the individual in relation to his government.
the appeal personally before the workers as
Few doubt that it would be desirable to have the full and
an opportunity for their individual participa-
free participation of the people in & democracy with a
tion in the winning of the war.
minimum of coercion and regimentation: yet the urgency of
the situation means financing the var by all means avail-
able, and in the interests of equality of sacrifice there
are those who argue that bond sales should be made com-
pulsory. How do the people of the country see the issue?
A. There 19 little doubt of a primary preference for the
voluntary plan. About half of those expressing them-
selves (46%) come out flatly and wholeheartedly for the
voluntary basis, as against the one-fourth (24%) who
are equally sure that the compulsory plan 1s the only
one (Table 12).
1. The voluntary plan is favored somewhat more frequently
by those who are participating less in present pur-
chases than by those who are participating more (Table
12).
Those who are buying little or none at present
are the ones whose economic position will be
most altered if a compulsory plan is adopted.
Those already purchasing bonds in amounts such
as would be required under B. compulsory plan
have DO anxiety about the effect upon them of
a compulsory plan.
2. The voluntary plan is also favored more frequently
by those who believe present sales are going satis-
factorily (Table 13). This again is natural - only
& person who thinks the voluntary plan is not suc-
ceeding is likely to be much impressed by the neo-
essity for compulsion.
Regraded Unclassified
231
12
13
V. CONCLUSIONS AND IMPLICATIONS
a. This squares with those who give qualified approval
to compulsion - a sizeable group who, preferring the
voluntary plan, are prepared to accept compulsion if
The foregoing leads to a few interpretative comments and
it 10 necessary, provided it has safeguards for those
suggestions:
of low income (Table 12 and 13).
1. The appeals which strike home in the sale of bonds are
b. "If according to ability to pay" is the qualifica-
those which stress aid to the Government in the var
tion given by one in six of those commenting on the
effort, and those which appeal directly to thrift. The
voluntary or compulsory plans before they are ready
theoretical relationship of bond buying to inflation
to accept compulsion. The income tax practice of
does not reach the average individual, who seldom
excluding the lowest incomes and making some pro-
thinks of himself as having excessive buying power.
vision for dependents seems to them to be essential.
People seen to wish more dramatic, more highly
An accounting clerk in St. Louis: "Making it
emotionalized appeals in the posters, in the radio
compulsory would hit some people hard. Every-
announcements and other publicity.
body just can't afford it. A graduated scale
would work better than just one set amount or
They respond also to the specific: things the
percentage."
money will buy in the way of uniforms, anti-aircraft
guns, tanks and airplanes. Many mention things for
A secretary in New York: "No, it should be made
the boys in the army and navy.
voluntary. Not everyone can afford to buy
bonds. If it was a small percentage maybe it
2. That payroll deduction plans are important is evident in
would be all right. But the average person
the increased number of those purchasing when their place
making $25.00 a week couldn't afford it, could
of employment has a plan, and in the increased amount of
he? Perhaps 5% for people making that much
purchase by those under such a plan. Since many firms
and everything over that voluntary."
do not have plans, such remains to be done.
Management and the worker alike agree that such of
the initiative must come from management, but the way
in which management promotes the plan is very in-
portant.
Routine appeals through impersonal channels tend to
be resented. The approach suggested 18 a more
personal one, involving individual contact with the
employee through his co-workers or direct superiors.
Where there is a strong union, the appeal can often
be made best through a union-management committee.
Some managerial representatives feel that the Treasury
Department has been somewhat lax in direct approaches
to management, some not having been reached at all.
Regraded Unclassified
232
14
3. People still favor voluntary purchasing over a com-
pulsory plan, but many are ready to accept a compul-
sory plan as an extreme measure.
The conditions for acceptance of a compulsory plan
are: (1) the failure of the voluntary plan to produce
sufficient purchases after it has been given a
vigorous trial: (2) the guarantee that some provision
will be made to produce equality of sacrifice. Allow-
ance must be made for those of marginal income, and
for those with dependents.
Many feel that the voluntary plan has not yet had a
sufficient trial to demonstrate its adequacy or in-
APPENDIX A.
adequacy. They suggest the need for an intensified
promotional program as suggested above.
Many report that the voluntary plan took a
distinct surge forward when quotas were an-
Tables
nounced. The quota system has not yet had
time to be fully tested.
People prefer to keep their full sense of initiative
in carrying responsibility for the war. But winning
of the war comes first, and they are ready to make
what sacrifices are necessary.
Regraded Unclassified
233
Table 1. Bond and Stamp Purchases by Defense and Non-
Defense Workers
Participation in Bond
Type of Plant
or Stamp Purchasing by
Non-
Total
Person Interviewed
Defense
Defense
Much (invests over 5%
of income)
33%
24%
27%
Participating (amount
indeterminate)
46
48
48
Some (under 5% of income)
11
14
13
None
10
14
12
100%
100%
100%
N=130
N=243
N=373
Table 2. Types of Plans Used for Payment of Bonds and Stamps
Participation in Bond
Types of Plans in Use
or Stamp Purchasing by
Stamps-
Pay-
Person Interviewed
No
Total
Treasury
for-Cash
Period
Plan
Plan
Purchase Plan
Euch (invests over 5%
30%
49%
9%
9%
27%
of income)
Participating (amount
indeterminate)
46
31
71
46
48
10
11
12
13
Some (under 5% of income)
14
10
9
33
12
None
10
100%
100%
100%
100%
100%
N=39
N=45
N=43
N=364
N=238
Regraded Unclassified
234
Table 4. Reasons Given for People Buying Bonds
Group Giving Reason
White
Manage-
Labor
Collar
ment
Total
To help the Country
Table 3. Degree of Participation Claimed by Those Interviewed
win the war
67%
72%
77%
70%
in the Different Cities
Good investment
20
31
19
24
Good sevings
22
23
31
24
hount of
Pitts-
Cleve-
New
Hart-
Fall
L'em-
St.
New
Buy war materials
6
7
6
6
trchase
burgh
land
York
ford
River
phis
Louis
Orleans
Total
Help boys in armed
forces
8
5
3
6
ch *
16%
15%
43%
49%
39%
20%
42%
25%
26%
Ilelprelatives in
armed forces
1
5
8
3
Our duty, should buy
5
7
2
5
rticipating H 64
71
30
17
25
44
32
40
48
Coercion and social
2
5
3
3
me ***
5
3
21
23
14
25
16
15
13
pressure
Insurance against post-
ne
15
6
war depression
3
3
5
3
11
11
22
11
10
20
13
1
2
5
2
100%
Prevent inflation
100%
100%
100%
100%
100%
100%
100%
100%
--
2
2
Better than taxes
3
N=76
N=90
N=34
№19
N=20
N=358
If war not won, every-
N=47
N=28
N=45
2
2
2
--
thing will be lost
vests over 5%
N=151
N=192
N=64
N=407
mount indeterminate
Under 5% of income
Regraded Unclassified
235
Table 6. Suggestions for Increasing Sales
Groups Making Suggestions
Management
White Collar
Labor
Total
More publicity
36%
19%
Table 5. Reasons Given for People Not Buying Bonds
23%
23%
Compulsion
25
20
15
19
Personal contact
24
16
14
15
Relate to war materials and aims 16
14
13
14
Group Giving Roason
"Everything is being done"
5
17
8
11
White
Manage-
Extend payroll deduction plans
5
6
10
8
Labor
Collar
ment
Total
Raise wages
2
3
7
5
Management should take more in-
Can't afford to,
terest
4
4
4
4
not enough money
44%
50%
57%
48%
"Leave it to the people"
2
3
4
3
Wages haven't increased
Stress the savings angle
9
2
1
3
with cost of living
2
4
13
Does not know
7
14
19
16
4
Desire to keep funds
2
6
N=55
N=132
N=170
N=357
liquid
4
4
Bonds may not be re-
decmed
10
8
7
9
Fear of compulsion later
1
2
7
2
Uncortainty as to per-
sonal future
3
1
4
2
Don't realize seriousness
of war, or purpose of
bonds
14
16
17
15
Table 7. How well the Plan is Thought to be Working and the
Unpatriotic, slackers,
Extent of Individual Bond Purchasing
not good citizens
15
10
6
12
Dissatisfied with Gov't
Plan
Plan
policios and/or expend-
Working
Working
No
itures
3
4
7
4
Nell
Poorly
Plan,
Lack of information
12
7
4
9
"Aren't people buying
bonds and stamps?"
7
6
4
6
Much (invests over 5%
of income
38%
18%
%
Neglect
7
8
9
8
Participating (amount
52
53
N=142
N=185
N=54
N=382
indeterminate
40
15
13
14
Some (invests under 5%)
7
17
24
None
100%
100%
100%
N=167
N=116
N=57
Regraded Unclassified
236
Table 10. Success of Plan and ay in which Employees were Approached
Table 8. The Treasury Plan in Defense
and Non-Defense Plants
Lay in which Employees
Success of Present Plan
Defense
Non-Defense
wore Approached
Plan
Plan
Plant
Plant
Working
Working
Well
Poorly
Plan working well
55%
115
By management; through personal appeal
72%
34%
By management; not through personal appeal
18
51
Plan working poorly
40
34
By coverkors
4
13
By the union
0
0
No plan
5
22
By a Government representative
1
1
100%
100%
Does not know
6
1
100%
100%
N=153
N=253
125
NE97
Table 9. Reasons for Approving a Payroll
Deduction or Similar Plan
Per Cent who
Reason
Gave Reason
Table 11. Suggestions as to Who Should Initiate
the Plan for Payroll Deduction
A good opportunity to save
26%
"You don't miss it when deducted"
21
Groups Making Suggestions
It reaches everybody - some who
White
wouldn't otherwise buy
9
Labor
Collar
Management
The plan is better than compulsion
7
It gives the sense of participation
2
The plan is better than increased taxes
2
Management
46%
66%
42%
Rank and file
26
20
7
The plan is a good idea (no specific
Union
5
0
15
reason)
32
Government
7
4
9
Don't know what to say
1
100%
Management and labor
13
5
12
in cooparation
5
15
N=163
"It depends"
3
100%
100%
100%
5-93
Y=80
N=33
Regraded Unclassified
Table 12.
Recommendation of Voluntary or Compulsory Purchase
as Related to Amount Being Purchased by the
Individual
"Should Bond or Stamp
Degree of Participation of Person Interviewed
Purchase Be Voluntary
Participating
or Compulsory
(Amount
Much
indeterminate)
Some
None
Total
Voluntary
44%
39%
67%
50%
46%
Compulsory
27
27
16
13
24
Compulsory, qualified
- if necessary
13
14
8
13
13
- if according to
ability to pay
16
19
9
21
17
- if it will work
0
1
0
2
1
100%
100%
100%
100%
100%
N=96
N=162
N=43
N=48
N=339
Table 13.
Recommendation of Voluntary or Compulsory Purchase as
Related to Estimate of Present Sales of Bonds
Should Purchase
How Bond Sales Are Thought To Be Going
Be Voluntary or
Very
Does Not
Compulsory
Well
Well
Fair
Poor
Know
Voluntary
51%
45%
34%
33%
51%
Compulsory
24
23
34
45
20
Compulsory, qualified
- if necessary
9
14
13
o
19
- if according to
ability to pay
16
16
19
22
10
- if it will work
0
2
0
o
o
100%
100%
100%
100%
100%
N=152
N=130
N=53
N=9
N=48
Regraded Unclassified
237
APPENDIX B
How Bond-Selling Works in Specific
Defense and Non-Defense Plants
(Based on summaries by interviewers)
Regraded Unclassified
-
I
-
Regraded Unclassified
238
DEFENSE PLANT WITH GOOD PARTICIPATION
Most of the departments in this Fall River defense plant
with 2400 employees are 100% subscribed under the Treasury
Plan. Management has made a conscientious attempt to sell
the idea to the workers, Here, 8.8 elsewhere, personal don-
tact has proven very effective.
Each employee was contacted by the foreman and handed a
booklet. A short sales talk was also given the worker.
In addition, posters, charts revealing inter-departmental
bond-buying differences were utilized. All of this was
associated with the vital role that the worker is playing
in bringing about final victory.
Though wages were comparatively high, none of the employees
mentioned their increased income as A reason for buying
bonds. All referred to the idea of "helping the country."
There was no evidence of strong social pressure or coercion.
"They call everybody in the office and give them a good
sales talk. No, they don't try to force you into it,
just give you a good line. Then, if you want to come
in, you can."
Here pressure has been exerted by means subtle enough not
to arouse resentment; the voluntary flavor is clearly main-
tained.
Regraded Unclassified
239
A DEFENSE PLANT WHERE TREASURY PLAN IS WORKING WELL
NON-DEFENSE PLANT WHERE THERE IS NO PLAN
In this Pittsburgh plant the initiative came from management.
This Pittsburgh plant with about 100 workers had a special
A personnel can was given charge of putting the Treasury plan
window at which the employees could purchase bonds and
across - one who was well-acquainted with high-pressure
stamps, but it had no systematic plan in operation.
salesmanship techniques.
Management claims that no deductions of my kind have over
All the salaried people were contacted first before approaching
been pormitted. They are very much opposed to the payroll
the factory workers. The foremen in the mill were then told to
check-off because of somo "internal trouble." They feel
talk up the fact that the "higher-ups" had already joined in.
that their method of buying at the window has been quite
A week went by, after which the foremen were called together,
successful and do not see the necessity of revising it.
given cards for the sen in their crow, as well 08 pamphlets
"Unless it's compulsory, we will not do it."
advertising and explaining the plan, and were made responsible
for contacting each man under their supervision. llo one had
The workers' participation has not been high according to
more than 25 workers to approach.
the individual selling these stumps and bonds. However,
the employees feel that they have been contributing as
Each worker was called upon, given a brief talk and the other
much AB they have been able.
material. A minimum of $3.75 per month was set for all
employees. The men were also informed that they would not be
"The reason they don't have a. voluntary plan here is
able to withdraw their pledge without first writing some sort
that wages are too low. Nobody would refuse to buy,
of a note to the personnel head. The savings feature was
but they really can't afford it."
emphasized. The men were told, "This is a systematic way of
Lack of B. well-functioning plan is often a symbol of what
saving. And for the company's sake, too, the want 100%."
here has been referred to as "internal trouble" - an atti-
The 25 or 30 workers out of the 1000 who did not at first
tude of distrust between workers and management.
subscribe to the plan were then personally contacted again,
but this time by the man in charge of the plan himself. He
made it quite clear to each of these men that they were not
doing their share, either for their country or for the plant.
within a three-neek period, the plant was able to boast 100%
participation. Shortly thereafter, the plant raised 8
Treasury Minute Man Flag. Each employee was presented with a
specially made button which indicated that he had subscribed
to the plan, and carried the name of the plant. Many of the
men wore these buttons on their caps, vests, lapels.
This is a non-union plant. It is one in which there have
been good employee-management relations for many years.
There appeared to be little resentment of 8 management
instigated plan which involved considerable social coercion.
Regraded Unclassified
240
NON-DEFENSE PLANT WHERE PLAN IS GOING POORLY
NON-DEFENSE PLANT WITH LOW PARTICIPATION
There is a voluntary payroll deduction plan in this Clove-
Only about one-third of the 650 employees in this New York
land bakery which employs about 400 people. The plan is not
City factory were participating under the Payroll Deduction
functioning well. Only about 40% of the employees have sign-
Plan, the average deduction boing around $2 por week.
ed pledge cards and those deductions that are being made fall
short of the goal of 10% of their income.
For quite some time there has been a hostile relationship
between management and labor, and the latter bitterly resent-
There is no systematic method of pushing the plan and stimu-
od the initiation. of any plan by management. They objected
lating enthusiasm in rogard to it. A few of the employees
to the posters that threatened later compulsion; they were
have learned of the plan by reading the bulletin board, but
antagonistic towards the contacts which the oremen tried
have neglected to do anything about it. Some workers are
to establish.
contacted personally by their superiors. Others are not
approached at all.
The most recent step that management had taken was to dis-
tribute letters to the employees stating, "The Treasury De-
Management is wary of urging the plan because of the terri-
partment has
asked us again to ask you to subscribe to
fio turnover of labor with which it has been confronted of
these bonds
and also advises us that unless the majority
late, They fear that another deduction, in e ddition to those
of our employees will subscribe
it will be compulsory,
already in effect - "roup insurance, hospitalisation, social
in which case the amount of your subscription would be de-
security, community fund - would only cause an increase in
termined by the government
If you do not intend sub-
the number of cirls who leave.
scribing, please give the reason for this at the bottom of
the letter as we have to make & report or. Monday, Way 11
"Once we get settled here with our employees," manage-
to the Treasury Department on each and every employee."
ment feels, "we'll all get behind the plan."
This move was especially resented and many of the workers
On the other hand, the workers indicated that their pur-
cited coercion of this ort AS B. reason for wanting to
chases, both in the plant and outside would pick up if there
buy outside of the plant.
were to be an increase in their wages.
"I don't think they did it right. Without this para-
"I just haven't been making enough. If I got a raise
graph (from the letter noted above), it would be O.K.,
of any kind, I would."
but B. lot of the boys around here got sore about that.
In my opinion, that's not the way to go about it at
The real failure appears to lie in a haphazard promotion
all."
by management, based upon their timidity in putting pres-
sure on an unstable working force.
While workers welcome management's prosecution of a plan,
if done properly, when done impersonally it may arouse la-
tent anti-management feelings. The experience in this
plant indicates the importance of personal appeals and
motives acceptable to the workers.
Regraded
Unclassified
241
APPENDIX C
Comments by Interviewers
Regraded Unclassified
242
Interviewers' Comments
The following comments are quoted from reports by the field
interviewers. They are interpretative statements or general
impressions based on interviews and conversations at the time
of the study.
San Francisco
"It seems to me the most effective appeal lies in presenting to
people a clear and simple but vivid cicture of how each person's
purchase may affect him in his own individual circumstances.
Not an individualistic approach, but rather an attempt to make
clear to the individual the connection between the importance
of his purchase and its place in the shorter period of the war
and the longer period of post-war adjustment. The meaning in
terms of values, functions and purposes of bond buying does
not seem to be understood. The connection between the person's
small circumstances and the total picture is missing. To con-
clude from the present campaign that bond buying won't work on
a voluntary basis is to do people a great injustice and will
but weaken morale."
Cleveland and Pittsburgh
"I would like to emphasize that in my opinion the voluntary
deduction plan has not been given a fair trial and if operated
in the correct manner it would probably go over the top. The
plants that had a good plan showed real organization. In most
cases it was not something that just happened. There were
people in charge of bond sales who were definitely interested
in seeing that their plant or factory or shop or store was
successfully getting full participation. In most cases the
person in charge had set up 8. system whereby every person in
the plant was personally contacted by somebody who had a
Treasury pledgo card already filled out with the employee's
name. Large committees were set up and specific responsi-
bilities were distributed among the persons on these
committees. There was a check-up of those persons who did
not enter the plan and personal call-backs were made. It
was not a case in any of these plants of putting on a big
'hullaballoo' for a week or two and then letting it go at
that."
"It is my opinion that labor unions up to the present have
not played as important a role as they could in making a
payroll deduction plan successful. I think the emphasis
Regraded Unclassified
has been on members buying bonds through their local and
national offices, but not of selling their members complete-
ly on the idea of seeing to it that the plan is established
in the respective plants. This attitude evidently is
changing to some extent as the Treasury make more appeals
for union help along this line. Poor labor and union
participation is probably the result of the fact that the
responsibility for the plan's success has too often been in
the hands of life insurance underwriters who do not under-
stand how to approach labor."
St. Louis
"Not infrequently do workers express the opinion that they do
not want people to know their business and for that reason will
not participate in the Treasury plan. They do not want manage-
ment to know anything about their financial affairs."
Hartford
"I find a parallel between the more liberal industrial firms
as to labor policy and a better record in bond selling or
the Treasury plan. These firms seem more efficient and
doing a better Job in war production. Where there is poor
participation in the plan I have also found poor working
conditions, inefficiency and waste."
New Orleans
"In some companies deductions already in force for Social
Security, insurance of various kinds, and employee benefit
organizations even now are cutting into the employees'
small earnings. These deductions loom large against
salaries of $14 to $18.00 a week."
Hartford
"People admit that all the radio talk, paper talk and what
they observe about them gives the impression the campaign
is going over big, but that these things (posters, alogans,
etc.) do not make them buy any bonds or even any more than
they are buying. What is needed is more direct personal
solicitation - somebody to call on them or appear before
them. Whatever it is it must be on a person-to-person
level."
Memphis
"A sure fire campaign needs the collaboration of all sectors
of the population. A striking example of the result of
choosing only prominent citizens ('big shots') was the
failure of the department to enlist a single representative
of labor or of the Negro population in its Memphis campaign."
Regraded Unclassified
243
June 2, 1942
Letters to the following, signed Henry, enclosing confidential
report on sales of War Bonds and Stamps, for month of May, 1942,
as compared with April, 1942. All delivered by Messenger Veach
at 12:55 p.m, except where indicated otherwise.
Delivered by
The President
#
(Signed Henry Morgenthau, Jr.
)
S.S.Agt. 12:00
Vice President Wallace,
Hon. Stephen Early,
Hon. Cordell Hull,
Hon. Henry L. Stimson,
Hon. Francis Bidôle
Hon. Frank Knox,
Hon. Harold L. Ickes,
Hon. Claude R. Wickard,
Hon. Jesse H. Jones,
Hon. Frances Perkins,
Hon. John W. McCormack,
Hon. Joseph W. Martin, Jr.
Hon. Alben W. Barkley,
Hon. Robert L. Doughton
Delivered
Col. Edwin A. Halsey, # (Signed H. Morgenthau, Jr.) By Sturgis 4:25 pm
Hon. Sam Rayburn,
Hon. Walter F. George,
Hon. Charles L. McNary. #*
Regraded Unclassified
243
June 2, 1942
Letters to the following, signed Henry, enclosing confidential
report on sales of War Bonds and Stamps, for month of May, 1942,
88 compared with April, 1942. All delivered by Messenger Veach
at 12:55 p.m, except where indicated otherwise.
Delivered by
The President #
(Signed Henry Morgenthau, Jr. ) S.S.Agt. 12:00
Vice President Wallace,
Hon. Stephen Early,
Hon. Cordell Hull,
Hon. Henry L. Stimson,
Hon. Francis Bidóle
Hon. Frank Knox,
Hon. Harold L. Ickes,
Hon. Claude R. Wickard,
Hon. Jesse H. Jones,
Hon. Frances Perkins,
Hon. John W. McCormack,
Hon. Joseph W. Martin, Jr.
Hon. Alben W. Barkley,
Hon. Robert L. Doughton
Delivered
Col. Edwin A. Halsey, # (Signed H. Morgenthau, Jr.) By Sturgis 4:25 pm
Hon. Sam Rayburn,
Hon. Walter F. George,
Hon. Charles L. McNary. **
Regraded Unclassified
244
June 2, 1942
My dear Mr. President:
I take pleasure in sending you
herewith a report of the sales of War Bonds
during the month of May. Please note par-
ticularly that we sold $95,000,000 more "E"
Bonds in May than we did in April.
Yours sincerely,
(Signed) Henry Morgenthau, Jr.
The President,
The White House.
S.S. Gent 12:00
Regraded Unclassified
245
June 2, 1942
Dear Henry:
I take pleasure in sending you
herewith a report of the sales of War
Bonds during the month of May. Please
note particularly that we sold $95,000,000
more E" Bonds in May than we did in April.
Yours sincerely,
(Signed) Henry
lion. Henry A. Wallace,
The Vice President.
By Messenger Vent 12:55
Regraded Unclassified
246
CONFIDENTIAL
UNITED STATES SAVINGS BONDS
Sales in May Compared with April, 1942
On Basis of Issue Price
(Amounts in thousands of dollars)
:
:
Increase in May
:
Sales
Item
:
Compared with April
:
:
:
:
May
April
Amount
Percent
:
:
:
:
Series I
$421,831
$326,660
$ 95,171
29.1$
Series 7
42,465
40,003
2,462
6.2
Series G
170,060
163,839
6,221
3.8
Total
$634,357
$530,502
$103,855
19.6%
Office of the Secretary of the Treasury,
June 1, 1942.
Division of Research and Statistics.
Source: All figures are deposits with the Treasurer of the
United States on account of proceeds of sales of United
Note: Figures have been rounded to nearest thousand and will
States savings bonds.
not necessarily add to totals.
Regraded Unclassified
247
CONFIDENTIAL
UNITED STATES SAVINGS BONDS
Sales in May Compared with April, 1942
On Basis of Issue Price
(Amounts in thousands of dollars)
:
:
Increase in May
:
Sales
Item
:
Compared with April
:
:
:
May
:
April
Amount
Percent
:
:
:
:
Series 2
$421,831
$326,660
$ 95,171
29.1$
Series 7
42,465
40,003
2,462
6.2
Series G
170,060
163,839
6,221
3.8
Total
$634,357
$530,502
$103,855
19.6%
Office of the Secretary of the Treasury,
June 1, 1942.
Division of Research and Statistics.
Source: All figures are deposits with the Treasurer of the
United States on account of proceeds of sales of United
States savings bonds.
Note: Figures have been rounded to nearest thousand and will
not necessarily add to totals.
248
CONFIDENTIAL
UNITED STATES SAVINGS BONDS
Sales in May Compared with April, 1942
On Basis of Issue Price
(Amounts in thousands of dollars)
2
:
Increase in May
:
Sales
Item
:
Compared with April
:
:
:
May
:
April
Amount
Percent
:
:
:
:
Series I
$421,831
$326,660
$ 95,171
29.1%
Series 7
42,465
40,003
2,462
6.2
Series G
170,060
163,839
6,221
3.8
Total
$634,357
$530,502
$103,855
19.6%
Office of the Secretary of the Treasury,
June 1, 1942.
Division of Research and Statistics.
Source: All figures are deposits with the Treasurer of the
United States on account of proceeds of sales of United
States savings bonds.
Note: Figures have been rounded to nearest thousand and will
not necessarily add to totals.
249
June 2, 1942.
Harold Graves
Secretary Morgenthau
Please see that Lawrence Houghteling gives me a
report by tonight on what success the 300 organizers of
AF of L are meeting with. I wish that I could get reports
on some of these things that I start. I start them and
then I haven't the slightest idea what happens to them
and nobody keeps me informed. I constantly have to
follow-up. I wish you would talk to me about how I can
be kept informed on the things that I have started and
am interested in.
See Granes memo of
6/2- Houghtching
mill report 6/3-
Steling
report came in 6/4/42 -
I raves talked t Say.
and said he would see
that reports are submitted
oftener.
250
TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION
DATE June 2, 1942.
To
Secretary Morgenthau
FROM
Harold Graves
With reference to your memorandum of this date request-
ing a report from Mr. Houghteling concerning the progress
being made by the A. F. of L. organizers:
Mr. Houghteling has advised me that he expects
reports tomorrow morning from a number of his field men,
upon the receipt of which he will send you directly a
report bringing you up to date in regard to this project.
copies to mrs. magenthqu X
Prof. Helch-
251
STANDARD FORM No.
MARCH 10, 1926
Welch's color mailed
TREASURY DEPARTMENT
APPROVED BY THE PRESIDENT
WASHINGTON
to Prinator 6/3/97
TELEGRAM
CHARGE TREASURY DEPARTMENT, APPROPRIATION FOR
OFFICIAL BUSINESS-GOVERNMENT RATES
Official
DAY LETTER
(The appropriation from which payable must be stated on above line)
JUNE 2 1942 PRINTING
-
1-14117
Miss Lucy Monroe
Hampshire House
liew York New York
Mrs Morgenthau has asked no to answer your telegram of June 1st.
Both of us appreciate very much the splendid work that you have
been doing throughout the country, and we wish to take this
opportunity to thank you most heartily. I have asked Professor
Roy Welch of Princeton to take charge of music in connection
with our War Bonds drive, and he will get in touch with you at
an early date.
Henry Morgenthau Jr
252
1942 JUN I
TW2 237 NL 3 EX
D NEWYORK NY MAY 31 1942
MRS HENRY MORGANTHAU JR
H/Will <<
talkto
you 8 36
US TREASURY DEPT WASHINGTON DC
DEAR MRS MORGANTHAU I HAVE JUST RETURNED TO NWYORK AFTER
WZ
COMPLETING THE SOUTHERN STATES PART OF MY COMMUNITY SING
TROU TRAVELLING 11 THOUSAND MILES AND I THOUGHT YOU WOULD
about
LIKE TO KNOW THAT IT WAS SUCCESSFUL BEYOND OUR FONDEST
Mis,
DREAMS. AT TWELVE SINGS WE HAVE TOTAL AUDIENCES OF NINETY
THOUSAND AND THROUGH SOME FORTY BROADCASTS AND FIFTY OTHER
PERSONAL APPEARANCES WE REACHED AT LEAST TWO MILLION
SOUTHERNERS WITH OUR WAR BOND AND STAMP MESSAGES. EVERYWHERE
ENTHUSIASM WAS HIGH AND NEWSPAPER COOPERATION WONDERFUL.
NE ARE NOW PREPARING FIVE SINGS HERE IN NEWYORK FOR
COLONEL PATTERSO THE FIRST WILL BE ON SUNDAY JUNE SEVENTH
AT THE MALL IN CENTRAL PARK WITH FOUR OTHERS TO FOLLOW IN
THE OTHER BOROUGHS ALL TIES IN WITH THE DOOR TO DOOR RKKY PLEDGE
COMAPAIGN WAR BOND PRINZES ARE BEING GIVEN FOR THE BEST
Regraded Unclassified
253
V2 PAGE 2
SINGERS IN THE CITY HIGH SCHOOLS. I THINK THESE THINGS
SHOULD BE DONE IN EVERY CITY TOWN AND AMLET IN AMERICA.
WITH YOUR PERSMISSION AND UNDER YOUR SUPERVISION I WOULD
LIKE TO SET UP FOR THE TREASURY DEPARTMENT A DIVISION TO
HELP EACH COMMUNITY WORK OUT THEIR OWN COMMUNITY SING
SERIES. THIS PLAN WOULD INVOLVE NO EXPENSE TO THE TREASURY
AND IF YOU THINK IT A WORTH WHILE IDEA I WOLD LIKE TO
EXPLAIN IN DETAIL WHEN YOU ARE NEXT IN NEWYORK OR SHOULD
YOU WISH I COULD OF COURSE COME TO WASHINGTON. WITH BEST
PERSONAL WISHES. SINCERELY
XXE LUCY MONROE HAMPSHIRE HOUSE NY.
8AM JUNE 1 1942.
Regraded Unclassified
253
V2 PAGE 2
SINGERS IN THE CITY HIGH SCHOOLS. I THINK THESE THINGS
SHOULD BE DONE IN EVERY CITY TOWN AND AMLET IN AMERICA.
WITH YOUR PERSMISSION AND UNDER YOUR SUPERVISION I WOULD
LIKE TO SET UP FOR THE TREASURY DEPARTMENT A DIVISION TO
HELP EACH COMMUNITY WORK OUT THEIR OWN COMMUNITY SING
SERIES. THIS PLAN WOULD INVOLVE NO EXPENSE TO THE TREASURY
AND IF YOU THINK IT A WORTH WHILE IDEA I WOLD LIKE TO
EXPLAIN IN DETAIL WHEN YOU ARE NEXT IN NEWYORK OR SHOULD
YOU WISH I COULD OF COURSE COME TO WASHINGTON. WITH BEST
PERSONAL WISHES. SINCERELY
XXE LUCY MONROE HAMPSHIRE HOUSE NY.
8AM JUNE 1 1942.
Regraded Unclassified
254
TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION
DATE June 2, 1942.
To
Secretary Morgenthau
Harold Graves
FROM
In accordance with your memorandum of this date,
I hand you herewith a list of the "Community Sings" with
Lucy Monroe scheduled to date. A copy of the list is being
sent to Mr. Roy Welch.
No further "Community Sings" with Miss Monroe
will be scheduled until after personal consultation with
you.
255
To: Mr. Graves
June 2, 1942
From: Mr. Duffus C.D.
1.9
The following Community Sings are set at present with
Lucy Monroe, the New York Symphony Orchestra of 80 pieces
and ex-mayor Jimmy Walker as master of ceremonies.
June 7
Central Park on the Mall, New York City
June 9
Silver Lake, Staten Island
June 14
Prospect Park, Brooklyn
June 20
Forest Park, Queens
June 21
Poe Park, Bronx.
These are all in connection with the New York Pledge
Campaign.
in Bronghton dan 256
JUN 2 1942
Dear Mr. French:
This will acknoviedge your letter of June 1, 1942.
In line with our recent conversation, I think you under-
stand that the Treasury needs come six billion dollars annually
to maintain civilien services of the Government which are NIM-
tial to the basic needs of human life, to conserve our natural
resources, and to keep in repair our national plant. The
Treasury would be villing to have the funds which you propose
to collect from your people invested in Treasury bills, Treasury
certificates of indebtedness, Treasury notes, and Treasury bonds
which the Treasury offere publicly to the people of the United
States from time to time, and which are not designated W their
terms as "war issues." I shall be glad to ... that you are
notified each time an offering of this kind is made.
It is our understanding that you will buy such securities
as are issued, in amounts in line with the financial resources
of your people, and them distribute certificates of participa-
tion in smaller demominations through a non-profit corporation
you are organizing. This plan 1s agreeable to us and will, we
believe, satisfy the American people that the groupe you repre-
sent are contributing to the support of the Government in ways
their consedences will permit.
To understand that the groups you represent are asking
contributions to the support of the Civilian Public Service
camps for conscientious objectore authorised by the Congress
and the Selective Service System which would otherwise have
been a charge on the Treasury of the United States.
To are all seeking the name objectives and are glad that
our democracy 19 able to recognise the conscientions
convictions of a misority of our citizens.
Sincerely yours,
Secretary of the Treasury
Mr. Paul Coaly French,
Executive Secretary,
National Service Board for
Religious Objectors,
Washington, D. C.
ky spec 21.00 10.15am.-6.3.42
DWB:ce 6-1-42
Regraded Unclassified
257
TREASURY DEPARTMENT
Washington
FOR IMMEDIATE RELEASE,
Press Service
Tuesday, June 9, 1942.
No. 31-97
Secretary Morgenthau today gave the Treasury's approval to
a proposal by which individuals who object conscientiously to war
will be able to invest in securities issued as general obligations
of the Government and not specifically designated as "war bonde"
or "defense bonds."
In & letter to Paul Comly French, executive secretary of the
National Service Board for Religious Objectors, the Secretary said
that Treasury bills, Treasury certificates of indebtedness, Treas-
ary notes and Treasury bonds would be available for subscription
by members of the organizations represented by the Board.
The members of these groups, Mr. French had explained, have
felt compelled to remain aloof from their community campaigne for
the sale of War Savings Bonds and yet are eager to demonstrate to
their neighbors that they are helping to finance the Government
in ways that their consciences permit.
In order to allow all conscientious objectors to take part
in the program in denominations to fit their individual purses,
such as are provided by War Savings Stamps and Bonds, the National
Service Board plans to set up a non-profit corporation to buy the
securities and distribute them to the members through certificates
of participation.
The texte of Mr. French's letter to Secretary Morgenthau and
the Secretary's reply are as follows:
June 1, 1942.
Mr. Henry Morgenthau, Jr.
Secretary of the Treasury
Washington, D. C.
Dear Mr. Morgenthau:
National Service Board for Religious Objectors who feel
fronting the members of the religious groups represented consoi- by the
This will confirm our conversations regarding the problem con-
entiously unable to purchase War Bonds. They understand that
there expenses for the regular functions of Would the
Government, it be totalling for us to purchase regular issues of Treasury bonds
are continuing some six billion dollars annually.
denominations notes and then through & non-profit corporation we are organizing?
and possible redistribute them to our people in smaller
Regraded Unclassified
- 2 -
258
Any rate of interest established by the Treasury is agreeable
to us, but we would prefer a rate lower than that paid on War
Bonds. We are willing to accept notes with any maturity date
which seems right to you. We would handle all subscriptions,
and the Treasury would not be required to assume any additional
clerical burden on our behalf.
If this plan 18 satisfactory to you, would it be possible
for us to explain to our neighbors that we are aiding in the
financing of the Government in ways that our consciences permit
and that the United States Treasury has approved our plan?
Cordially yours,
Paul Comly French (signed).
June 2, 1942.
Dear Mr. French:
This will acknowledge your letter of June 1, 1942.
In line with our recent conversation, I think you understand
that the Treasury needs some six billion dollars annually to main-
tain civilian services of the Government which are essential to
the basic needs of human life, to conserve our natural resources,
and to keep in repair our national plant. The Treasury would be
willing to have the funds which you propose to collect from your
people invested in Treasury bills, Treasury certificates of in-
debtedness, Treasury notes, and Treasury bonds which the Treas-
ury offers publicly to the people of the United States from time
to time, and which are not designated by their terms as "war
issues. I shall be glad to see that you are notified each time
an offering of this kind 18 made.
It is our understanding that you will buy such securities as
are issued, in amounts in line with the financial resources of
your people, and then distribute certificates of participation in
smaller denominations through a non-profit corporation you are
organizing. This plan is agreeable to us and will, we believe,
satisfy the American people that the groups you represent are
contributing to the support of the Government in ways their con-
sciences will permit.
We understand that the groups you represent are making con-
tributions to the support of the Civilian Public Service camps
Selective Service System which would otherwise have been a charge
for conscientious objectors authorized by the Congress and the
on the Treasury of the United States.
American democracy is able to recognize the conscientious convio+
We are all seeking the same objectives and are glad that our
tions of a minority of our citizens.
-000-
Regraded Unclassified
259
TREASURY DEPARTMENT
INTER-OFFICE COMMUNICATION
DATE June 2, 1942.
TO
Secretary Morgenthau
FROM
Abbot L. Mills, Jr.
x
Mr. John Lee, Manager of the Aircraft War Production Council, Inc., re-
turned to Washington yesterday from New York. He reports that he has all
the information necessary on which his principals can decide their program
as to becoming issuing agents. Judging from conversation with Mr. Lee, it
is reasonable to hope for & favorable decision, but in view of his absence
from Los Angeles and the necessity of carrying on his contacts at 80 long a
distance, it is doubtful that & final answer can be expected before the end
of this week.
Regraded Unclassified
260
JUN 2 1942
Dear Mr. Lee:
Thank you for your letter of May 28, 1942, and the
enclosures explaining the purposes and programs of the
Aircraft Yar Production Council, Inc. Your organization
appears to provide its members an effective means for
combining and concentrating their efforts on the many
phases of the aviation industry's war-time task of pro-
duction.
Var production and war financing march together and
it in a pleasure to take this occasion to thank the major
western aircraft corporations, through you. for promoting
the Treasury's payroll savings plans in their organiza-
tions. I hope that your members can complete satisfactory
arrangements in the near future that will insure the
prompt issuance of War Savings Bonds in support of their
payroll savings plans. and I an glad to know that this
problem is receiving careful study. Your cooperation 1e
appreciated.
Sincerely yours,
(Signed) 1. Morgenthas. 17.
Mr. John c. Lee, Manager,
Aircraft War Production Council, Inc.,
7046 Hollywood Boulevard,
Los Angeles, California.
file n.m.c
ALM,Jr./dwb
5/29/42
Copies to shompom
Regraded Unclassified
% 261
AIRCRAFT WAR PRODUCTION COUNCIL, INC.
CONSOLIDATED DOUGLAS LOCKHEED NORTHROP . NORTH AMERICAN RYAM VEGA . VULTEE
Washington, D.C.
May 28, 1942
My dear Mr. Secretary:
During our brief conversation on Tuesday last,
you were kind enough to let me make a little "speech"
about the A. W. P. C.
I am afraid my statement of the organization's
purpose and functions was inadequate and I am taking the
liberty of sending to you a folder summarizing the work
of the group in the interests of increased war production.
Mr. Bell and Mr. Mills have provided us with
information which will be very helpful in our effort to
work out with the major western aircraft companies the
problem of issuance of War Savings Bonds. You may be
sure that we will make every effort to ensure the speedy
handling of this matter.
Sincerely,
Jan John C. Lee. Clec
The Honorable
Henry Morgenthau Jr.,
Secretary of the Treasury,
Washington, D.C.
7046 HOLLYWOOD BOULEVARD, LOS ANGELES, CALIFORNIA . HILLSIDE 7211
Regraded Unclassified
262
ARTICLES OF INCORPORATION OF
AIRCRAFT WAR PRODUCTION COUNCIL, INC.
The undersigned three persons hereby associate together
for the purpose of forming a nonprofit corporation under the
California Civil Code (Division First, Part IV, Title XII),
as follows:
1. The name of the corporation is AIRCRAFT WAR PRODUC-
TION COUNCIL, INC.
2. It is a corporation which does not contemplate pecun-
iary gain or profit to the members thereof. The general object
and purpose for which the Aircraft War Production Council, Inc.
is formed is:
To coordinate the resources and energies of the aircraft
manufacturing companies and thereby to speed the United Nations
victory.
In carrying out this general object and purpose the Air-
craft War Production Council, Inc. shall:
(1) Serve as a research and information agency for mem-
bers of the corporation and for aircraft manufacturers in
general, in cooperation with the armed services and agencies
of national, state and local governments.
(2) Provide facilities for free and unrestricted inter-
change of information among the aircraft manufacturers, in the
interests of expanded and coordinated war production efforts.
(3) Encourage and expedite the pooling of facilities,
plans, practices and data contributing to increased manage-
ment and employe efficiency, and the maximum production of
military airplanes.
Regraded Unclassified
263
(4) Utilize the joint resources of the aircraft manu-
facturers, in cooperation with the armed services and govern-
mental agencies, in the interests of employe and public morale.
(5) Coordinate research and other activities with proper
governmental agencies in seeking solution of war industry pro-
blems such as transportation and housing of employes.
(6) Correlate aircraft manufacturer compliance and coop-
eration with rules and regulations governing assembly and re-
lease of public information promulgated by the War Production
Board, the Army, the Navy, the Marine Corps, and all agencies
of government concerned in the war effort.
(7) Exercise such powers as may be permitted by law.
3. The principal office for the transaction of the busi-
ness of the corporation is to be located in the County of Los
Angeles, State of California.
4. The names and addresses of three persons, who are to
act in the capacity of directors of the corporation until the
selection of their successors, are John C. Lee, Natalie Town-
send, and Mary Phipps, each of 7046 Hollywood Boulevard, Los
Angeles, California. The number of directors may be changed by
a by-law of the corporation but shall not exceed twice the num-
ber of members.
5. The authorized number and qualifications of the members
of the corporation, the property, voting, and other rights and
privileges of the members, and the liability of each to dues
or assessments and the method of collection thereof, shall be
set forth in the by-laws of the corporation.
-2-
Regraded Unclassified
264
6. The articles of incorporation may be amended or re-
pealed (in whole or in part) and by-laws adopted, amended or
repealed ( in whole or in part) only upon approval of at least
three-fourths (3/4) of the total number of members.
Executed by the undersigned persons, and each of them, on
April 3, 1942.
John C. Lee
Natalie Townsend
Mary Phipps
-3-
Regraded Unclassified
-
265
BOARD OF DIRECTORS
Aircraft War Production Council, Inc.
Committee Reports
May 6, 1942
INDEX
Page No.
Reports
Advisory Committee on Production
Summary Report
1
Advisory Committee on Materiel
Summary Report
4
Advisory Committee on Transportation
and Housing
Summary Report
7
Meeting Report
13
Advisory Committee on Engineering
and Standards
Summary Report
15
Meeting Report
20
Advisory Committee on Plant Defense
22
Summary Report
25
Meeting Report
Advisory Committee on Accounting
26
Summary Report
Advisory Committee on Industrial and
Public Relations
Industrial Section
28
Summary Report
Public Relations Section
32
Summary Report
Regraded
266
AIRCRAFT WAR PRODUCTION COUNCIL, INC.
1
LOS ANGELES, CALIFORNIA
SUMMARY REPORT
ADVISORY COMMITTEE ON
(To May 1, 1942)
PRODUCTION
THE COMMITTEE
R. B. Parkhurst
Consolidated - Chairman
Frederick W. Conant
Douglas
Chet Pearson (alt.)
"
R. A. Von Hake
Lockheed
Harold Raynor
North American
Paul Buckner
Northrop
Eddie Malloy
Ryan
B. T. Salmon (alt)
Ti
H. E. Ryker
Vega
R. A. Lawson
Vultee
J. E. I'Anson (alt.)
"
1. Production Problems Considered To Date,
a) Production facilities of a company may be partially
idle at a time when such facilities are badly needed
by another plant.
b) Individual production men have not been in a position
to coordinate activities because they previously
lacked the means for free exchange of production
information.
c) Cost rates on interchangeable production items need
standardization as far as practicable. This will be
done on a "no profit" basis.
d) Lack of central or uniform information on tooling
work and inadequate means of distribution of such
information often causes duplication of effort.
e) Company specialists have been unable to contact
directly and without delay similar specialists in
other companies.
f) Adequate record of past cooperative action has not
been kept.
7046 HOLLYWOOD BOULEVARD TELEPHONE HILLSIDE 7211
Regraded Unclassified
267
2
2.
2. Objectivos.
a) To minimize or oliminate production slow-downs from
so-called "bottle-necks" or from equipment failures;
to establish E free flow of production informetion
: betwoon compenies; to establish a means of exchanging
use of facilities; and to maintain 0 record of co-
operative effort by:
(1) Familiarizing production specialists with work
of men in similar capacities at other plants.
(2) Perfecting procedure for effective coordination
of production facilities.
(3) Maintain current and post record of accomplishod
cooperative projects.
3. Cooperative Mothods.
a) Committee met April 29, 1942, st request of Directors
of Council.
b) In order to meet objectives and solve major problems
of production, the Committee designated individual
members to study specific activities and to report
at next mooting, May 12, 1942.
The following assignments were made:
(1) R. A. Von Hake of Lockhood, to study mothods
of exchanging information regarding idle machinory,
and to schedule three tours for production mon
to the plants in the San Diogo, Southern Los
Angoles County and San Fornando Velloy eroas.
During these tours, production men will study
mothods st other plents, sook out idocs for con-
structive application to thoir own problems.
(2) J. E. I'Anson of Vultoo, to study and discuss
with tooling exports the bost moons of exchang-
ing information on this subject, and to outline
possible plans to coordinate present and future
developments in tooling.
(3) Poul Buckner of Northrop, to investigate general
inspection policies with a view toward standard-
ization.
(4) R. B. Parkhurst of Consolldated, to study plant
layouts with viow toward expoditing production
through simplification of handling equipment and
parts.
Regraded Unclassified
268
3.
3
(5) E. E. Ryker of Vega, to study moans of inter-
changing monufacturing records and typos of
recording equipment.
(E) Horold Raynor of North American, to study moans
of standardizing menufacturing procedure in
planning, materiol control, production control,
and methods of schoduling.
(7) Chet Poarson of Douglas, to propare outlines of
provious intor-company cooperative action in-
cluding exchange of information which made possi-
blo the development of long rango, medium end
attack bombers.
(Noto: All of thoso studios aro being mado by
direct contact with production spocialists in
each plant, so the study will be an over-all
picture of all eight compenies.)
c) Agroed that nogotistions for exchange of production
information may be conducted directly by mombors of
the Committee with one enother to facilitate handling.
d) Agreed to appoint altornetos for each mombor 30 that
one man fully acquainted with procedure will be evail-
sble at all timos.
c) Each company is compiling schodule of cost rates to
simplify procedure for utilizing available machine time.
f) Exchanged information ideas on current and possible
future problems with D viow toward sotting up major
problems as first objectives end clerifying procodure
to solve minor problems.
4. Future Activities.
a) Visit other plants regularly, koop in touch with cur-
ront advancements in production mothods and pool
observations on production mothods through regular
informal discussions at the scono of activity.
b) Maintain n running flow of information on current
production conditions, including up-to-dato listings
of available and desired fecilities.
c) Stimulate action to standardizo, as far 18 practicable,
inspection methods, both company and Fodoral.
d) Continue to study means to spood up flow of information
which will result in proper allocation of production
work to shop's bost schodules.
e) Study of all now developments in production methods
for adapt-bility.
Regraded Unclassified
269
AIRCRAFT WAR PRODUCTION COUNCIL, INC.
LOS ANGELES, CALIFORNIA
4
SUMMARY REPORT
ADVISORY COMMITTEE ON
(To May 1, 1942)
MATERIEL
THE COMMITTEE
G. R. Laughlin
Vultee - Chairman
Howard G. Golem
Consolidated
Victor E. Bertrandias
Douglas
Roger Lewis
Lockheed
Robert Monroe
North American
William Osborne
Northrop
Fred W. Ford
Ryan
B. W. deGuichard
Vega
1. Materiel Problems.
a) Critical materiel shortages may develop in a given plant
at a time when other plants in the area have actual
surpluses, or substantial stocks of the needed materiel.
b) A standard policy is needed on the charge to be made
for the sale or loan of materiel to meet acute shortages.
c) While materiel for fixed price contract work can be
transferred or loaned at the discretion of the manu-
facturer, materiel for cost-plus-fixed-fee contracts
cannot be transferred without a directive from the Army
or Navy.
d) Information regarding availability and productive
capacity of sub-contractors for outside production
work generally 1s inadequate for effective allocation
of work on short notice.
e) Extent and duplication of reports required by various
governmental agencies seriously complicates efforts to
obtain maximum efficiency in materiel matters.
f) Representation on materiel matters through the Aero-
nautical Chamber of Commerce of America is not effective.
The Committee feels that in materiel matters the Aero-
nautical Chamber of Commerce of America has attempted to
cover too wide a field on small problems, and has restric-
ted its activities to too narrow a field on major prob-
.lems.
7046 HOLLYWOOD BOULEVARD TELEPHONE HILLSIDE 7211
Regraded Unclassified
2,270
5
g) There is no uniform procedure for the inspection of
materiel by company inspectors, or Army and Navy in-
spectors.
h) In interests of maximum use of machines in entire area,
companies must develop procedure of listing available
machine time in both aircraft and outside production
plants.
2. Objectives.
To prevent production delays in any given plant by either
acute materiel or machine time shortages; to coordinate all
available information and facilities in the interests of max1-
mum production by:
a) Utilizing all available materiel at the point where it
is most needed.
b)
Interchange of available machine time both in the plants
of prime contractors and in outside plants.
c) Interchanging all materiel information through execu-
tives with authority to act.
3, Past Cooperation.
a)
Companies, acting on an informal basis, have inter-
changed materiel and data on materiel matters with con-
structive results.
4. Future Cooporative Activities.
n)
Procedure has been established for interchange of mater-
iel and machine time to meet critical shortages. A con-
tact man has been designated by each plant to be respon-
sible for facilitating loans of materiel, use of machine
time in the plant, and use of outside productive capa-
city.
(1) While arrangements on materiel, machine time, etc.
ordinarily can be made through the plant contact
man designated by the materiel executive, wherever
necessary the members of this committee will con-
sult directly with each other to obtain prompt
action.
(2) The Board of Directors of the Council is requested
to seek directives from the Army and Navy contract
officers regarding release of excess materiel under
cost-plus-fixed-fee contracts, to relieve critical
shortages.
271
3.
(3) Loans of materiel will oe made on the assurance
6
that the borrowing company's purchasing depart-
ment has similar materiel on order and will return
at no handling charge within 60 days.
(4) When materiel is obtained on an outright: purchase,
not to be replaced, the B oard of Directors is re-
quested to determine a standard handling charge.
(It has been agreed to eliminate handling charges.)
(5) Each company will create a list of surplus and
large stocks of materiel, and will forward in tri-
plicate to the purchasing departments of other com-
panies. These lists are to be kept up to date by
periodical reports.
(6) Each company will maintain a record of materiel
loans and other transactions to meet acute short-
ages, and will make a monthly report to the Commi-
tee, showing the name of the company, the date, the
type of materiel, and the classification as pur-
chase or loan.
(7) Each company will maintain E. record of available
machine time.
b) The Committee agreed that in the case of GFE shortages
within the individual company, contact will be made with
the appointed liaison men at other plants to request in-
formation regarding the amount of GFE items available.
This information then will be referred to the District
Air Corps Officer, with a request for authorization for
a loan or exchange.
c) Trade information, such as available facilities for out-
side production work, will be exchanged by the companies,
and will be available to any war production manufacturer,
regardless of membership in the Council.
d) On small quantity replacements of interchangeable items,
such as small parts, forgings and castings, each com-
pany will check with the other companies to see whether
these items are available on a purchase or exchange
basis, before placing such small replacement orders with
the mill.
e) Action regarding PD-25 under the Production Requirements
Plan is being held in abeyance pending further study by
the Committee.
f) The companies will interchange materiel information and
seek coordinated solution of problems through regular
monthly meetings on the second Thursday of each month
at 1:00 p.m. Meeting notices will be sent out by the
chairman or the Council Staff.
272 7
AIRCRAFT WAR PRODUCTION COUNCIL, INC.
LOS ANGELES, CALIFORNIA
SUMMARY REPORT
ADVISORY COMMITTEE ON
(To May 1, 1942)
TRANSPORTATION AND HOUSING
--
1. Transportation Problems:
a) Surveys of Lockheed and North
American indicated tire replace-
ments for employes of two plants
alone required average of 7,038
tires monthly.
b) Only 8589 tires allowed for Los
Angeles County in April.
c) Cars averaged 1,6 persons each for
trips to aircraft plants.
d) Methods of assigning tire certifi-
cates varied among tire rationing
boards, complicating attempts of
employes to obtain tires.
e) Lack of uniformity in procedure
wasted many hours of employe time
in obtaining certificates.
f) Unique geographic conditions
forced 91 per cent of aircraft
employes to travel to work by
automobile.
g) Mass transportation carriers were
reluctant to expand service be-
cause of financing problems and
because existing routes carrying
civilian workers were being ex-
panded to handle increased traffic
from tire shortage.
7046 HOLLYWOOD BOULEVARD TELEPHONE HILLSIDE 7211
Regraded Unclassified
273
8
2.
Objectives
-- To prevent or minimize loss
of employe working time
resulting from inadequate
transportation or housing
facilities; to establish a
record of meximum effort to
relieve the problems under
existing conditions, and to
provide proof of the need
for additional tire or trans-
portation allotments by:
s) Promoting rubber conserve-
tion.
b) Developing increased mass
transportation facilities.
c) Counteracting housing
shortages near the plants.
3. Methods used:
a) Committee formed at suggestion of com-
panies March 27, 1942.
b) Complete transportation surveys started
by all companies and State Railroad
Commission to show number of employes
traveling by each means of transporta-
tion, average distance traveled daily,
average passengers per car, availability
of mass transportation cerriers and all
other facts required.
c) Completion of surveys by Lockheed, North
American, Douglas, Vultee and the State
Railroad Commission (in the San Diego
area). The Railroad Commission expects
to complete its Los Angeles area survey
soon.
d) Establishment of a uniform rubber con-
servation program at all plants.
(1) To help employes reach minimum use of
of automobiles pending solution
the mass trensportation shortage.
-2-
Regraded Unclassified
274
9
(2) To eliminate waste of time by
employes in obtaining tires needed
to reach work.
(3) To assure full utilization of exist-
ing rubber supplies.
e) Mass transportation improvement sought.
(1) Lockheed established chartered bus
lines from rail heads, worked with
utility companies and Railroad Com-
mission to expond the service and
add necessary rail or bus lines.
(2) Douglas presented survey to Los
Angeles Railway in steps to work
out complete rail or bus service to
hendle majority of employes.
(3) Northrop and North American dis-
cussed plans for new common carrier
service to plants with L. A. Rail-
way and offered to submit surveys;
also would serve Douglas, El Segundo.
L. A. Railway promised to work out
engineering problems.
(4) Vultee and Douglas (Long Beach)
worked out extension of south-east
area mass transportation fecilities
to carry about one-sixth of
employes.
(5) Group met with Railroed Commission
to exchange ideas for future mass
transportation expansion. Close
lisison and additional meetings
planned.
(6) Exchanged ideas on individual com-
pany policy regarding liability
under rubber conservation programs.
-3-
275
10
f) Check on effectiveness of previous
sctivities.
(1) All companies in the Los Angeles
area erranged spot check of cars
in use between 6:00 and 9:00 a.m.
on May 5 and 12 to determine changes
in percentage of employes using
private automobiles. If found
effective, this check will become
routine.
(2) Lockheed reported 3% of its total
employes using buses as of April 28.
Number of cars in Lockheed parking
lots has gone down 8%, retiring 140
cars out of 650 employes.
(3) Vultee reported number of persons in
each car has advanced from 1.4 to 1.9.
E) Members exchanged informally information
on procedure for distribution and sale of
bicycles to employes.
4. Future Activities:
a) Stimulate action by common carrier com-
penies, Railroad Commission and Federal
agencies which will be asked to co-
operate in the early expansion of mass
transportation carrier lines either by
rail or bus to accommodate 8 majority
of sircraft workers.
b) Study of such possible developments as
staggering of shifts (but not within
shifts), which may be required to
enable full use of cerrier fecilities,
and coordinating any necessary changes
so that production efficiency will be
meintained. Committee does not agree
to stagger shifts within plants until
available fecilities are tested to the
utmost on present set-up.
-4-
Regraded
276
11
c) Reduce automobile use to a minimum
through conservation programs 80 that
maximum life of tires will result and
contribute to uninterrupted transporta-
tion of employes until completion of
mess transportation arrangements.
d) Stimulate development of housing faci-
lities near plants through cooperation
with private and governmental agencies
in order to further eliminate neod for
extensive travel to and from work by
employes. Committee to maintain closer
liaison with Colonel Branshaw.
5. Governmental Agencies:
e) State Reilroad Commission.
(1) Committee can aid in providing
mass transportation by supplying
survey information, working out
shift changes and providing con-
crete evidence for basis of new
services.
b) Office of Defense Transportation.
(1) Committee can aid Railroad Com-
mission (official 0. D. T.
agency) and others to provide
information showing necessity
for financial aid to carrier
companies 30 they may obtain
sufficient equipment to expand
service to plants.
c) Federal Housing Agencies.
(1) Committee can assist in determining
areas requiring approvel of finan-
cial assistence for home or hous-
ing project construction.
d) Los Angeles Housing Commission.
(1) Committee can aid in determining
areas requiring mass housing
units.
-5-
Regraded Unclassified
277
12
e) War Production Board.
(1) Committee can keep War Produc-
tion Board constantly informed
on transportation, which, in the
final analysis, is essential to
the production process.
f) Western Procurement Office, Materiel
Branch, Army Air Forces.
(1) Committee can aid through lisison
as in "G" above.
-6-
278
AIRCRAFT WAR PRODUCTION COUNCIL, INC.
13
LOS ANGELES, CALIFORNIA
MESTING REPORT
ADVISORY COMMITTEE ON
(April 28, 1942)
TRANSPORTATIONEAND HOUSING
Present were:
Robert C. Stor cut
Lockheed -- Chairmen
George Hunt
Douglas
J.J. Harty
North American
C. W. Schmidt
"
"
A. R. Fredericks
Northrop
Harris McIntosh
Vega
A.R. Baish
Vultee
1. Robert C. Storment, Chairman, advised members of the com-
mittee that 1200 bicycles have just been released to Lockheed,
advising members to contact Mr. Muller on requests for
bicycles. He also discussed briefly government requests
that the company retain title to the bicycles purchased,
pointing out that Lockheed is opposed to retaining title.
Lockheed has promised to build sheds for bicycles to on-
courage their use by employes.
2. Transportation conditions reported included:
a) Lockhoed has put 3% of total employes in buses. Lockheod
has started bus service from Santa Monica to the plant,
and original service of three buses has grown to 19.
b) Number of cars in Lockheed parking lots has gone down
8%; in one department, 140 cars have boon retired from
e group of 650 employes.
c) Mr. Hunt, of Dougles, reported on nogotiations with
the Los Angeles Railway. Douglas may have to BO into
a charter arrangement.
d) Mr. Beish reported on bus service to Vultee from Long
Beach, Pomona and Santa Ana. Vultoo has erected a bus
torminal which was to go in service May 4. Motor
vohicles are prohibited from stopping to load or unload
on highway by plant. Bus riders jumped more than 100
to April 27. Vultee seoks to make bus transportation
available and attractive,
279
14
2.
e) Vultoe showed avorage number of riders per car has
gone from 1.4 to 1.9 in six woeks. Several weeks ago
149 cars entered parking lots with ono passenger. On
last check, only 59 cars carried only one passonger.
f) Committee agreed to spot-check company parking lots
botween 6:00 and 9:00 a.m, on May 5 and May 12, in
order to establish E. proliminery record of progross
in the rider-driver policy. If this spot-chock shows
sufficient progross, regular chocks will be made in
the futuro.
8) Study of possible staggoring of shifts will continue,
but under a policy of arranging such staggering only
efter cll available facilities for mass transportation
are taxed to the limit.
h) Mr. Stormont offored to furnish committee members
with copios of the Lockhood agroement with the common
carrier companies.
1) The committee instructed the Council staff to maintain
close contact with Reilroad Commission on all mattors
regarding moss transportation, and constantly to press
immediato completion of Railroad Commission survey.
3. Housing.
n) Companics now post lists of rental proporties available
in vicinity of plants.
b) Now employes are told of available living quartors
within sroa.
c) Lockhood has made a survey of surrounding torrein suit-
able for barracks.
d) The committee will maintain closo contact with Colonol
Brenshaw's office on future housing dovelopments.
4. Rogular mooting date of the committee was sot for the
will second be Wednesday filed with the Council on or bofore the 10th day
of mach month. Reports of activities
of oach month.
Regraded Unclassified
280
AIRCRAFT WAR PRODUCTION COUNCIL, INC.
15
LOS ANGELES, CALIFORNIA
SUMMARY REPORT
ADVISORY COMMITTEE ON
(To May 1, 1942)
ENGINEERING AND STANDARDS
THE COMMITTEE
Mac Short
Vega - Chairman
R. G. Mayer
Consolidated
Arthur E. Raymond
Douglas
Hall L. Hibbard
Lockheed
Gordon Throne
North American
Arch Dutton
Northrop
Benjamin T. Salmon
Ryan
J. L. Fechter
Vultee
1. Engineering and Standards Problems.
a) Need for additional engineering personnel, adequately
qualified for aircraft engineering work, appeared to be
the major problem. Associated with this is the problem
of training engineering personnel.
b) Second in importance was the matter of material sub-
stitution -- if and as suggested, the substitution of
less strategic materials.
c) Need for adequate interchange of records and efforts
by aircraft companies to determine solution of common
problems.
d) Need for more uniformity in drafting room procedures,
methods of presenting data on drawings, and presenta-
tion of information to sub-contractors.
e) Failure occurring in parts or sections supplied the
aircraft manufacturers by vendors or sub-contractors.
f) Need of standardization or coordination of process and
finish specifications.
g) Elimination of waste or duplication of efforts in the
solution of research problems, and the coordination of
a research program.
7046 HOLLYWOOD BOULEVARD TELEPHONE HILLSIDE 7211
Regraded Unclassified
281
16
2.
2, Objectives.
More efficient use of engineering manpower for greater
production, through:
a) Speeding the training of engineers by interchanging
data on training procedures both within plants and on
the outside.
b) Coordinating engineering work among the companies to
gain the advantages of group study, and to avoid in-
efficient duplications of effort.
3. Cooperative Methods Used in the Past.
a) Efforts to meet the problem of engineering manpower
have included interchange by the engineering personnel
managers of data on training methods and personnel pro-
blems.
In some cases, there has been actual interchange of
personnel on a loan basis to meet an emergency need.
For example, Vultee made e, group of engineers avail-
able to Vega for a period of three months, and as a
result of this cooporation, Vega was able to moet a
schedule.
b) On the problem of substitution of materials, there
has been a degree of informal interchange of data
through normal channels, and as B. consequence, of
contact among the men dealing with this subject within
the industry. However, there has been no organized
procedure for a sustained flow of interchanged inform-
ation, on the substitute material problem. By the
very nature of the work, there has been some exchange
through the NASC.
c) In connection with the general problem of exchanging
engineering data and reports, there likewise has been
no formal and continuing procedure, but from the
report of Mr. Raymond (See Exhibit A) and other inform-
ation, it would appear that Douglas and other companies
have made data on design and many other reports
available to a large section of the aircraft manu-
facturing industry.
d) In the field of standards activities, thore has been
constructive accomplishment through the modium of the
NASC. The NASC was initiated by the manufacturers,
without the suggestion of any outsido agency, and has
achieved outstanding results, particularly in
standardizing small hardware.
Regraded Unclassified
282
17
3,
e) An approach to the problem of duplicated research
effort is indicated by the joint program in which
the Consolidated, North American, Douglas and
Lockheed companies are cooperating with the Call-
fornia Institute of Technology on a wind tunnel
project.
f) All of the member companies of the Council have
exchanged information on numerous engineering
problems, including those cnumerated in Section
No. 1, as well as other problems. This has been
done on an informal basis of direct contact between
two or more ongineers in separate companies who were
concerned with the same problem.
4. Methods of Further Cooperation.
a) The Committee has agreed to exchange training method
procedures among all of the member companies, and to
hold this information available for any non-member
company or any governmental agency. It was also
agreed that to meet emergency needs for engineers, it
will be possible to lend small groups of engineers
for limited periods.
b) The Committee agreed that each member will propare
a report on his company's work with substitute mater-
ials, following the general lines of the report sub-
mitted by Mr. Raymond of the Douglas Company. These
reports would be exchanged among the companies at the
next meeting of the Committee. It was agreed that in
the interest of greater officiency, the members
of the Committee would coordinate their action in
response to governmental diroctives on the question
of substitute material. It WCS further agreed that
the office of the Chairman would be the central point
for this coordinating work. In this manner any contra-
dictory directives from various governmental agencies
could be clarified before work is done on them by the
respective companies.
c) The Committee agreed that a bibliography of engineering
reports will be established in the following manner:
each company will list topically its more important
engineering reports and in the future will keep up-to-
date reports on such matters as flight tests, engine
block tests, tail surface research, etc. The biblio-
graphies will be maintained through uniform reference
cards in the libraries of each company, and in the
offices of the Council. The form for these reference
cards will bo worked out by the Douglas librarian. The
original bibliography will be collected on the basis
of reports to be presented by oach member at the next
meeting of the Committee.
Regraded Unclassified
283
18
4.
a) The Committee agreed to submit reports within a week
on problems encountered in the mal-functioning of GFE
and outside manufactured parts, together with recommenda-
tions for amelioration of this problem.
e) The Committee agreed to seek allocation of priorities
for material needed by companies for research projects.
Specifically, the Committee suggested action on the
Consolidated, Douglas, North American and Lockhoed wind
tunnol project now boing delayed by lack of material.
It was recommended that this matter be considered by
the Board of Directors, and appropriate action be taken.
The detail on this project will be provided by the
Douglas representative,
f) The Committee agreed on the following general approach
to coordinated action on problems of engineering and
standards:
Plant problems will bo present d at regular
monthly meotings for group discussion. At the
next mooting of the Committee, each member will
present a memorandum on major current problems
along the lines discussed at the first moeting.
(See North Amorican momorandum, Exhibit B).
By a process of seloction the most important
problems will be schoduled for intonsive
study, and an effort will be made to avoid
spreading the program over such n wide range
ns to become inoffectual on specific matters.
The criterion by which projects will be solocted
will be the importance of the problem in relation-
ship to wer production.
After discussion by the Committee, solected
problems will be givon dotailed study by
specialists within the plants in the various
fields of work. The activity of the specialists
on those problems will be arranged and coordinated
by the mombors of the Committee who are the hoads
of the engineering departments. Committee mombers
will arrange, whore desirable, for specialists in
each plant to work togethor on n problem. All
coordination and linison, however, must be carried
on through the company representative on the
Advisory Committeo on Engineering and Standards.
When & problem involves immediate action, membors
of this Committee will establish contact with ench
other and will coordinate their work through the
chairman and Council staff. Efforts will be made
to oliminate duplication of work on specific
engineering and research problems.
Regraded Unclassified
284
19
5.
In approaching many problems it will bc found
that the work of this Committee will affect the
work of other committees, such as Production
and Materiel. It was the consensus of the meeting
that coordination will be ostablishod through
meetings of committee chairmen.
5. Coordination with Governmental Agencies.
a) In the directive from the Board of Directors of the
Council, committees were requested to report on problems
which should be worked out with governmental agoncios.
It is suggested that this Committee will make definito
recommendations for coordination or liaison with
governmental agencies, in relationship to specific
problems, as the problems are analyzed and as conclusions
are reached.
Regraded Unclassified
AIRCRAFT WAR PRODUCTION COUNCIL, INC.
285
LOS ANGELES, CALIFORNIA
20
MEETING REPORT
ADVISORY COMMITTEE ON
(April 29, 1942
ENGINEERING AND STANDARDS
Present were:
Mac Short
Vega - Chairman
R. G. Mayer
Consolidated
Arthur E. Raymond
Douglas
Hall L. Hibbard
Lockheed
Gordon Throne
North American
Arch Dutton
Northrop
3enjamin T. Salmon
Ryan
J. L, Fechter
Vultee
Representatives from each associated aircraft plant of
Southern California met for the first meeting to receive
certain instructions from the Council, and to plan a program
on the basis of this directive.
The agenda presented by Mr. John C. Lee, staff representative
of the Council, included:
1. Discussion of formation and purposes of Aircraft
War Production Council.
2. Reference to resolutions adopted by the company
presidents (Board of Directors of Aircraft War
Production Council), concerning formation of
committees.
3. Request from president of Council that committees
meet and make reports within one week.
The Aircraft War Production Council, Inc. has been formed 88
B coordinating and research agency of major aircraft manu-
facturers. The Council provides facilities for free and un-
restricted inter-change of information among the aircraft
manufacturers and government agencies, in the interests of
expanded and coordinated war production. The Council will
encourage and expedite the pooling of facilities, plans,
practices and data contributing to increased efficiency.
The members of the Council are the Consolidated, Douglas,
Lockheed, North American, Northrop, Ryan, Vega and Vultee
companies. The presidents of these companies form the Board
Regraded Unclassified
286
2,
21
of Directors, as the actual policy-making and governing body
of the Council. Information compiled by the Council is avail-
able to any war industry, regardless of membership in the
Council, and, of course, to government agencies, Referring
to a resolution adopted by company presidents concerning forma-
tion of committees, the Advisory Committees are as follows:
Advisory Committee
Chairman
Accounting
R. A. Lambeth
Engineering and Standards
Mac Short
Industrial and Public Relations
A. M. Rochlen
Materiel
G. R. Laughlin
Plant Defense
Albert M. Gee
Production
R. B. Parkhurst
Transportation and Housing
Robert C. Storment
The attached Summary Report represents the Committee's findings
to date.
It WES agreed that the Advisory Committee on Engineering and
Standards will meet the second Thursday of each month, at 1:30
p.m., in the offices of the Aircraft War Production Council,
Regraded Unclassified
287
AIRCRAFT War PRODUCTION COUNCIL, INC.
22
LOS ANGELES, CALIFORNIA
SUMMARY REPORT
ADVISORY COMMITTEE ON
PLANT DEFENSE
THE COMMITTEE
Albert M. Gee
Ryan - Chairman
George Hunt
Douglas - Vice Chairman
W. F. Persons
Consolidated
John Hanson
Lockheed
A. R. Miller
North American
Edward Burke
Northrop
A. B. Leckie
Vega
Val C. Zimmer
Vultee
1. Plant Defense Problems.
a) Fulfillment of specifications set forth by United States
Engineers Office.
b) Determination of responsibility for financing passive
defense installations.
c) Routine for finger-printing requires standardization.
d) Admittance of Army and civilian personnel to aircraft
plants.
e) Clarification of Army Air Corps plant protection
authority.
f) Completion of installation of adequate passive defense
requisites.
g) Need for increasing fire-fighting equipment to assure
all plants of adequate coverage, in case city fire
departments are unable to attend fire within plants.
2. Objectives.
To coordinate efforts with individual plants in such a manner
as to assure maximum plant defense with least possible dupli-
cation in experiments, and to assure constant protection of
all plant facilities in the most efficient manner by:
a) Exchanging information on past, current, and future in-
stallations.
7046 HOLLYWOOD BOULEVARD TELEPHONE HILLSIDE 7211
Regraded Unclassified
288
23
2.
b) Maintaining standards set up by government agencies.
c) Standardizing requests made of government agencies.
d) Making available to all companies records of past ex-
periences.
3. Cooperative Methods.
a) Committee met April 30, 1942, at the request of the Board
of Directors of the Aircraft War Production Council, Inc.
Heretofore there has been informal cooperation and inter-
change of information among the plant protection depart-
ments.
b) Outlined informally for the benefit of each other, current
plant defense activities of individual companies.
c) Established procedure for interchange of information by:
(1) Frequent meetings (first and third Thursdays of each
month).
(2) Agreement to continue past procedure of telephoning
individual representatives on matters requiring
immediate attention.
(3) Arranging frequent tours of aircraft plants to inspect
new plant defense equipment.
d) Requested Council Staff to obtain ruling from the Army on
the exact line of authority on plant protection matters.
e) Agreement to work out standardization of methods for ad-
mitting both Army and civilian personnel to plants.
f) Agreement to make uniform recommendations to the United
States Engineers regarding installation of ventilating
equipment for use during black-outs.
g) Agreement to devote coordinated effort toward establishing
more than ample fire-fighting equipment within all plants.
h) Agreement to prepare more complete lists of problems the
Committee may attack.
4. Future Activities.
a) Committee will maintain a running record of accomplish-
ments through coordinated effort.
b) Suggestions for improvement of plant facilities will be
disseminated to committee members through frequent visits
Regraded Unclassified
289
24
3.
to other plants, starting with a meeting at Douglas,
Thursday, May 7, at 2:00 p. m.
c) Committee will contact government agencies to assist in
setting up standard requirements.
Regraded Unclassified
AIRCRAFT WAR PRODUCTION COUNCIL. INC.
290
LOS ANGELES, CALIFORNIA
25
MEETING REPORT
ADVISORY COMMITTEE ON
(April 30, 1942)
PLANT DEFENSE
Present were
Albert M. Gee
Ryan - Chairman
George Hunt
Douglas - Vice Chairman
W. F. Persons
Consolidated
John Hanson
Lockheed
A.R.Miller
North American
Edward Burke
Northrop
A. B. Leckie
Vega
Val C. Zimmer
Vultoe
1. The meeting of the Committee resulted in establishing a pre-
liminary list of major problems, and agreement to further
list problems for discussion at the next meeting to be held
on May 7, at 2:00 p.m., in the office of George Hunt, Douglas
Aircraft. (See attached report).
2. Mr. George S. Hunt of the Douglas Aircraft Company, read an
extensive report on passive defense installations at the three
Douglas Company coast plants. This report included such items
as:
a) Complete removal of all glass, including windows, sky-
lights, and office partitions.
b) Special vontilation systems caused by special black-out
requirements.
c) Installation of master switches for all exterior lights.
d) Complete system of splinter-proof bomb shelters for all
personnel, and carefully worked out plans for movement of
personnel to these shelters.
e) Auxiliary water supply for use in case of fire.
3. The Committee agreed to interchange information and views on
recommendations to the U.S. Engineers in order to present
standard requests.
4. Other matters which will be considered for coordinating effort
will include helmets for workers, requests for information on
decontamination, and rulings of the Army Air Corps regarding
action for black-outs inside the plants.
7046 HOLLYWOOD BOULEVARD TELEPHONE HILLSIDE 7211
Regraded Unclassified
291
AIRCRAFT WAR PRODUCTION COUNCIL, INC.
26
LOS ANGELES. CALIFORNIA
SUMMARY REPORT
ADVISORY COMMITTEE ON
(To May 1, 1942)
ACCOUNTING
THE COMMITTEE
R. A. Lambeth
North American - Chairman
W. M. Shanahan
Consolidated
Ralph Hunt
Douglas
Dudley E. Browne
Lockheed
Claude N. Monson
Northrop
T. G. Hawkins (alt.)
"
James C. Noakes
Ryan
J.J. Norton
Vega
L. K. Grant
Vultee
1. Accounting Problems.
a) The proposed Revenue Act of 1942 and its effect upon
the aircraft industry.
b) Government insurance responsibility on government-
furnished equipment located in all plants.
c) Personal property tax assessments by Los Angeles county.
d) Army and Navy auditing procedure.
e) Clarification of TD 5000.
f) Advances to subcontractors.
2. Objectives.
a) Since government regulations on accounting procedure
affect the operations of all departments in the aircraft
plants, production will be facilitated by a maximum
clarification and simplification of accounting practices.
The Accounting Committee will not concern itself with
any matters of contract price establishment.
3. Cooperative Methods.
a) Interchange of information and cooperative action has
been carried on through the Southern California Account-
int Committee of the Aeronautical Chamber of Commerce
since August, 1941. (The members of the Aeronautical
7046 HOLLYWOOD BOULEVARD TELEPHONE HILLSIDE 7211
Regraded Unclassified
292
27
2.
Chamber Committee and the Aircraft War Production
Council Accounting Committee are the same insofar as
the eight member companies of the Council are concerned.)
The Aeronautical Chamber Accounting Committee has met
on call of the chairman, Mr. Lambeth, has interchanged
views on subjects of major importance and has conveyed
its conclusions to the eastern Accounting Committee of
the Aoronautical Chamber, as well as to the Aeronautical
Chamber Washington staff for the purpose of representa-
tions to government officers.
#. Future Activities.
e) The Advisory Committee on Accounting will meet as a
committee of the Aircraft War Production Council and
will report primarily to the Board of Directors of the
Council. At the same time, on national matters, the
Council Advisory Committee on Accounting will report
its findings and recommendations to the Aeronautical
Chamber of Commerce and the eastern Accounting Committee
of the Aeronautical Chamber of Commerce.
b) In order to continue the constructive work of the
Aeronautical Chamber Accounting Committee and to avoid
duplication of effort, Mr. Lambeth was unanimously
elected to serve as chairman of the Council Accounting
Committee. He holds the same position on the Southern
California Accounting Committee of the Aeronautical
Chamber.
c) The Council staff will coordinate work with the Account-
ing Committee, provide secretarial assistance, etc.
d) The Committee recommended to the Board of Directors the
employment of the firm of Thompson, Cooper & Thompson
to advise in the setting up of books of the Aircraft
War Production Council and to make quarterly audits.
e) The Accounting Committee vill meet on the third Thursday
of each month at 1:00 p.m. on notice from the chairman.
Regraded Unclassified
293
AIRCRAFT WAR PRODUCTION COUNCIL, INC.
28
LOS ANGELES, CALIFORNIA
SUMMARY REPORT
ADVISORY COMMITTEE ON
(To May 5, 1942)
INDUSTRIAL AND PUBLIC RELATIONS
(INDUSTRIAL RELATIONS SECTION)
THE COMMITTEE
W. G. Tuttle
Vultee - Chairman
M.E. Beaman
North American - V. Chairman
A. M. Rochlen
Douglas
R. Randall Irwin
Lockheed
Walter Gage
Northrop
William Wagner
Ryan
H. G. Waterbury
Consolidated
Ralph B. Smith
Vega
OBSERVERS
Jack Anderson
Douglas
J. C. Jenkins
Lockheed
0. T. Phillips
Douglas
Gary. Adams
Ryan
1, Industrial Relations Problems.
a) Labor Supply and Recruitment
1) Cooperation with government agencies and more
effective utilization of the operation of central
Aircraft USES.
2) Full utilization of local labor supply before
recruiting in other areas.
3) Temporary exchange of personnel between companies
on the basis of critical needs.
b) Selective Service
1) Dsteblishmont of uniform policios and procedures
on requests for deferment.
2) Attempt to secure from Selective Service
Organization uniform policy on granting of
deferment.
7046 HOLLYWOOD BOULEVARD TELEPHONE HILLSIDE 7211
Regraded Unclassified
294
29
2.
c) Turn-Over
1) Investigate possible causes, such as:
Restlessness
Employe morale.
Lack of clear application of Selective
Service policy
Voluntary enlistments
Differentiation in wages and earnings
due to differences in over-time work
between Aircraft Companies and other
defense industries.
2) Suggest possible remedies.
d) Job Classification and Wages.
1) Continuation of work of standerdizing factory
jobs, titles, descriptions and evaluations.
2) Extend study to office, engineers, and groups
not covered under factory classifications.
3) Make available to proper government agencies
all information on wages and earnings.
4) Make available to proper government agencies
studies of periodic wage review and services.
e) Education and Training
f) Standardization of Employment Requirements-
1) Uniform citizenship procedure.
2) Standard physical requirements.
g) Special Problems Involving Employment of Women.
2. Objectives.
a) This Committee believes the war effort can be
furthered by:
1) Free interchange of information, suggestions and
experiences in the field of industrial relations.
2) Cooperative efforts to solve the above problems.
3) Conduct joint studies.
Regraded Unclassified
295
30
3.
3. Past Cooperation.
a) Cooperation in the establishment of Los Angeles
Central Office of United States Employment Service
for aircraft workers to simplify the procurement
of available labor,
b) Standardized job analysis, description, evaluation,
classification, and titles.
c) Periodic rate and wage review data exchanged
in cooperation with the government.
d) Exchanged under government auspices salaried rates
and classification data.
e) Exchanged under government auspices salary and factory
job descriptions.
f) Some inter-plant cooperation secured through the
Los Angeles Aircraft Advisory Committee regarding
educational problems of & pre-employment and
supplementary nature. Up until March of this yoar
monthly meotings were held covering the above
problems.
B) Some exchange of information on educational programs
of a work simplification nature for supervisory
personnel.
h) Safety Engineers of various companies have been
meeting for interchange of information.
4. Future Cooperation Activities.
a) Continuation of cooperative efforts on items in #3.
b) Development of uniform statement of policy on selective
service deforments - referred to R. Randall Irwin of
Lockheed, M. E. Beaman of North American, and O. T.
Philips of Douglas.
c) Classification of aircraft industrial jobs for use
for seloctive service boards - referred to Walter
Gage of Northrop and Gary Adams of Ryan to assign
to inter-company evaluation committees.
Regraded Unclassified
296
4.
d) To pledge full cooperation with War Manpower
Commission in its efforts to make the most
effective use of the nation's manpower.
e) Continue and further extend extensive cooperation
with public schools and colleges under the nation's
defense training program.
f) Continue and further extend extensive in-plant training
program under the program being advanced by Training
Within Industry Division of W.P.B.
g) A study of legislation regarding employment.
Regraded Unclassified
297
AIRCRAFT WAR PRODUCTION COUNCIL, INC.
32
LOS ANGELES, CALIFORNIA
SUMMARY REPORT
ADVISORY COMMITTEE ON
(To May 5, 1942)
INDUSTRIAL AND PUBLIC RELATIONS
(Public Relations Section)
THE COMMITTEE
A. M. Rochlen
Douglas - Chairman
E. N. Gott
Consolidated
Leonard K. Schwartz
Lockheed
Leland R. Taylor
North American
T. C. Coleman
Northrop
William Wagner
Ryan
John Canaday
Vega
T. C. Sullivan
Vultee
OBSERVERS
John Thompson
Consolidated
Jack Anderson
Douglas
1. Objectives.
It is the objective of the Public Relations Committee to con-
vey to the employes and to the public, all policies, measures
and acts of the Aircraft War Production Council.
The major part of this program involves interpretation of the
war effort 80 that each employe can understand the importance
of his job and better perform it. The Conmittee acts on the
assumption that a thorough understanding of war production
problems by the employes and a free interchange of ideas and
information by member companies will achieve that degree of
cooperation necessary to final victory.
Participation by the employes in this undertaking will aid in
developing public confidence and support.
2. Methods.
To this end, the Public Relations Committee will utilize the
following methods:
a) Employe information and education for morale building and
production stimulus.
(The Council Directors are familiar with individual activi-
ties of companies in the several phases of methodsenumer-
ated below. In the past there has been informal inter-
change of information and material on these subjects among
7046 HOLLYWOOD BOULEVARD TELEPHONE HILLSIDE 7211
Regraded Unclassified
298
2.
33
the member companies. The Committee has arranged procedure
for complete integration and exchange of data and reports on
individual activity. This will make available to member
companies, as well as other war industries and government
agencies, all information and experience acquired by any com-
pany.)
Procedures for interchange of information have been established
in the following categories.
(1) Shop Suggestions for Increased Production: All suggest-
1ons found practical by individual companies will be re-
ferred to other member companies of the Council, under
the procedure which will seek to protect the interests
of the employe originating the suggestions.
(2) Publications: Plant newspapers, house organs, magazines.
booklets, pamphlets, etc.
(3) Plant Broadcasts to Employes: Official announcements,
emergency information, reports on exploits of planes
built by company workers, messages by government and
other prominent visitors, general news summaries, enter-
tainment.
(4) Posters: Production, material conservation. safety,
morale, defense bond sales, plant security. general in-
formation.
(5) Bullotin Boards and Production Score Boards: The latter
boards seek to present in graphical form a report on pro-
duction increases without disclosing military information.
(6) Contests: Plane-naming, slogans, etc.
(7) Recreation: Cultural, hoalth, etc. Management partici-
pates in financing.
(8) War Drive and Charity Contributions by Employes: Defense
bonds -- Buy A Bond Club,' "Buck of the Month Club, etc.
b) Public Education and Information.
(This activity will interprot to the public, through all proper
channels of information, the war production accomplishments of
the Council and the aircraft industry. All such information
will comply with the letter and spirit of regulations control-
ling dissemination of military information. This public infor-
mation activity will rest upon the solid accomplishments of
the operating committees and the Council organization in such
matters as exchange of materiel, machine time, etc. to speed
airplane production.)
(1) The spirit of cooperation and sincerity which is demon-
strated by the Council is one of the most significant
developments in American industry today. and the Council
through its public relations efforts must convey this
inter-company cooperative spirit to the public.
Regraded Unclassified
299
3.
34
(2) The detailed workings of the Council's Committees --
how, through joint efforts, X Company, for instance,
now uses Y Company's tools, and how red tape has been
completely eliminated to accomplish immediate action
-- have been talked of before, but never before has
the necessary machinery been set up to do the job
quickly and without friction.
3. Recommendations.
a) The Committee recommends (in consultation with the Indust-
rial Relations Section) that the Board of Directors seek a
clarification of apparent conflict in policies of two bran-
ches of the War Department. While on the one hand the War
Department Public Relations Branch seeks to build morale by
emphasizing the importance of men in the "Army of Product-
1on," on the other hand the Selective Service Boards' poli-
cies tend to stigmatize men not in Army or Navy uniform.
This aggravates employes' uncertainty over their draft
status, since skilled and highly essential employes do not
know whether they may expect to be drafted for general Army
servico or whether they should bolieve that they are re-
garded as important to the war offort in their present pro-
ductive positions.
b) The Committee recommends (in consultation with the Indust-
rial Relations Section) that the Board of Directors. in
considering policy on Selective Service, review the ulti-
mate alternatives of a very high percentage (in excess of
50%) of women workers in the aircraft plants, or a lower
percentage of women workers plus & substantial percentage
of occupationally-deferred skilled and experienced men.
c) Upon clarification of the above policy questions, this
Committee will be in a position to inform both the public
and employes on the patriotic importance of maintaining
skilled and trained individuals and teams on the production
line.
Regraded Unclassified
300
Sales of United States Savings Bonds
CONFIDENTIAL
June 1, 1942
Compared with Sales Quota for Same Period
(At issue price in millions of dollars)
:
Series E
:
Series 7 and G
:
Total
:
Actual Sales
:
Quota,
:
Sales
:
Actual Sales
:
Quota,
:
Sales
:
Actual Sales
:
Quota,
:
Sales
Date
:
:
June 1
:
June 1
: to Date
:
:
June 1
:
June 1
:
to Date
:
:
June 1
:
June 1
:
to Date
:
Daily
:
to
:
to
: as % of
:
Daily
:
to
:
to
: as 10 of
:
Daily
:
to
:
to
: as & of
:
:
Date
:
Date
:
Quota
:
:
Date
:
Date*
: Quota
:
:
Date
:
Date
:
Quota
1
$19.8
$19.8
$ 21.7
91.2%
$ 9.7
$ 9.7
$ 12.1
80.2%
$ 29.5
$ 29.5
$ 33.8
87.3
2
32.0
19.7
51.7
3
46.4
31.9
78.3
11
63.6
42.4
106.0
own
5
79.6
51.0
130.6
6
93.7
57.6
151.3
04
120.0
69.6
189.6
9
132.4
77.3
209.7
10
149.6
89.5
239.1
11
170.0
100.0
270.0
12
189.0
108.6
297.6
13
205.6
115.1
320.7
15
236.5
127.2
363.7
16
251.1
134.8
385.9
17
271.3
147.1
418.4
18
295.2
157.6
452.8
19
317.4
166.2
483.6
20
336.9
172.7
509.6
22
373.0
184.8
557.8
23
390.0
192.4
582.4
24
413.5
204.6
618.1
25
441.1
215.2
656.3
26
466.8
223.7
690.5
27
489.2
230.3
719.5
29
530.6
242.4
773.0
30
550.0
250.0
800.0
Office of the Secretary of the Treasury, Division of Research and Statistics.
June 2, 1942.
Source: Actual sales figures are deposits with the Treasurer of the United States on account of proceeds of sales of
United States savings honds. Figures have been rounded and will not necessarily add to totals.
Takes into account daily trend within the week, but does not take into account the trend by weeks during the month.
TREASURY DE
NT
301
INTER OFFICE CO
DATE JUN 2-1942
TO
Secretary Morgenthau
FROM Mr. Foley
If you approve,
ce a group of
Treasury men in the Ney
iss Bank
Corporation, Swiss A
Suisse
for the purpose of
ords
of these agencie
Sind
these three Swis
ign
Funds Control lice
Icient
number of Treasury ri
ined on
the premises to check on
We have
occasionally checked the records im these offices in connection
with our investigations of a few concerns in this country with
German connections and have found much useful information in
these specific cases.
We now propose to send & staff of persons into the
three agencies for the purpose of going through all of the
files and records in order to obtain the information contained
therein concerning the background of companies in this country
Regraded Unclassified
TREASURY DEPARTMENT
301
INTER OFFICE COMMUNICATION
DATE JUN 2 - 1942
TO
Secretary Morgenthau
FROM Mr. Foley
If you approve, we propose to place a group of
Treasury men in the New York agencies of the Swiss Bank
Corporation, Swiss American Corporation, and Credit Suisse
for the purpose of examining all of the files and records
of these agencies.
Since June 14, 1941, the New York agencies of
these three Swiss banks have been operating under Foreign
Funds Control licenses. Throughout this time a sufficient
number of Treasury representatives has been maintained on
the premises to check on all current operations. We have
occasionally checked the records in these offices in connection
with our investigations of a few concerns in this country with
German connections and have found much useful information in
these specific cases.
We now propose to send a staff of persons into the
three agencies for the purpose of going through all of the
files and records in order to obtain the information contained
therein concerning the background of companies in this country
Regraded Unclassified
302
- 2 -
with European connections and other significant information
concerning transactions effected through these banks during
the past decade. We have reason to believe that negotiations
and transactions in connection with the transfer of ownership
from German and Italian firms to Swiss or American names were,
in many cases, conducted through the Swiss bank agencies. In
as much as these three banks have numerous branches and agencies
in Latin America, we may also find valuable information with
respect to similar transactions and negotiations in connection
with Latin American concerns.
While going through the records our men would, of
course, also be on the alert for any information relative to
the conduct of the Swiss banks themselves and of other Swies
institutions. Representatives of these banks participated
actively in the affairs of Swiss-German industrial concerns
in this country and in the management of Swiss firms which
we have reason to believe are still camouflaging for German
interests. Felix Iselin, who represents I. G. Farben in
Switzerland as chairman of I. G. Chemie, is on the board of
the Swiss Bank Corporation. Iselin, together with Gottfried
Keller who is on the board of Credit Suisse, was added to the
Regraded Unclassified
303
- 3 -
Proclaimed List in the supplement of May 22, 1942. A former
top executive of the Swiss Bank Corporation in Switzerland,
who now resides in New York, recently stated in a letter
written to a colleague that he had resigned because of the
fact that certain high officials of the Swiss Bank were allow-
ing themselves to be unduly influenced by Germany's apparent
success in establishing a new European order.
Our men would also attempt to ascertain the identities
of the owners of a large number of accounts identified only by
number and would take steps to open all sealed envelopes con-
taining secret instructions or other information concerning
assets held by these agencies.
If you are in agreement, please 80 indicate below.
I APPROVE:
9,17h.
Secretary of the Treasury.
Regraded Unclassified
Treasury Department 304
Division of Monetary Research
Date June 3
1942
To:
Secretary Morgenthau
From: Mr. White
Original of this report appended
to prepared letter to the President.
SECRET
305
June 2, 1942
Exports to Russia, Free China, Burma and other
blocked countries, as reported to the Treasury
department during the ten-day period ending
May 20, 1942
1. Exports to Russia
Exports to Russia as reported during the ten-day period
ending May 20, 1942 amounted to about $18,000,000 as compared
with approximately $67,000,000 during the similar period in
April. Motor trucks and dried 088 products were the principal
items. Military equipment exported included 9 medium bombers,
22 light tanks and 2 medium tanks. (See Appendix C.)
2. Exports to Free China and Burma
Exports to Free China during the ten-day period ending
May 20, 1942 amounted to about $1,900,000, of which military
equipment accounted for more than half. (See Appendix D.)
Exports to Burma amounted to $5,000. (See Appendix E.)
3. Exports to France
Exports to France during the period under review amounted
to $20,000.
4. Exports to other blocked countries
Exports to other blocked countries are given in Appendix A.
Most important were exports to Switzerland and Portugal amount-
ing to $112,000 and $124,000, respectively.
13P/efe
6/2/42
Regraded Unclassified
STRICTLY CONFIDENTIAL
SUMMARY OF UNITED STATES
DOMESTIC EXPORTS TO SELECTED COUNTRIES
AS REPORTED TO THE TREASURY DEPARTMENT
FROM EXPORT DECLARATIONS RECEIVED
DURING THE PERIOD INDICATED 1/
July 28, 1941 to vay 20, 1942.
(In thousands of dollars)
July 28
to
Period ended
Period ended
Total
April 30
May 10 6/
May 20
Donestic Exports
S. ". R.
$448,689
$28,652
$17,977
$495,318
ree China
73,693
296
1,872
75,861
urna 2/
12,196
-
5
12,201
rance 3/
36
-
20
56
pain
2,849
5/
2,849
witzerland
10,006
5/
112
10,118
eden
17,646
85
5/
17,731
ortugal
8,795
5/
124
8,919
rench North Africa w
6,283
-
-
6,293
reasury Department, Division of Nonetary Research
June 1, 1942.
Mary of the export declarations are received with a Ing of several days or more.
Therefore this compilation does not accurately represent the actual shiment of
a particular period. The longer the period covered, the closer will there figures
come to Department of Commerce revised figures.
From September 11, 1941 to date - it is presumed that a large percentage of
aterial listed here, consigned to Burma, 15 destined for Free China.
Includes both Docupied and Unoccupied France - no breakdown is obtainable from
Department of Comerce.
Includes Morocco, Algeria, and Tunisia,
Less than $500.
Due to changes in reporting procedure by the Department of Cornerce, this report
is incomplete for the period indicated.
Wirl 6/1/42
Regraded Unclassified
STCRET
APPENDIX B
Exports from the U. S. to Free China, Burma md
U. S. S. R. as reported to the Treasury Department
July 28, 1942 - May 20, 1942
(Thousands of Dollars)
Exports to
Exports to
Exports to
Free China
Burna 3/
V.S.S.R.
July 28 - Aug. 2
395
4,523
Aug. 4 - Aug. 9
-
551
Aug. 11 - Aug. 16
309
986
Aug. 18 - Aug. 23
2
2,735
Aug. 25 - Aug. 30
1
1,023
Sept. 2 - Sept. 6
204
4,280
Sept. 8 - Sept.13
2,281
5,217
Sept.15 - Sept.20
3,822
752
Sept. 22- Sept .27
110
449
2,333
Sept.29 - Oct. 4
1,225
684
323
Oct. 6 - Oct. 11
5,312
1,157
6,845
Oct. 13 - Oct. 18
5
35
1,924
Oct. 20 - Oct. 25
269
403
5,623
Oct. 27 - Nov. 1
4.772
58
4,484
Nov. 3 - Nov. 8
1,672
342
4,552
Nov. 10 - Nov. 15
2,851
88
2,677
Nov. 17 - Nov. 22
1,228
1,021
3,581
Nov. 24 - Nov. 29
3,239
1,364
2,436
Dec. 1 - Dec. 6
791
64
3,609
Dec. 8 - Dee. 13
2,337
18
12,040
Dec. 15 - Dec. 20
111
8
4,580
Dec. 22 - Des. 27
1
196
1,829
Dec. 29 - Jan. 3
35
2
3,993
Jan. 5 - Jan. 10
91
1,073
8,247
Jan. 12 - Jan. 17
1,695
447
5,874
Jan. 19 - Jm. 24
-
-
3,885
Jan. 26 - Jun. 31
6,938
923
9,608
Feb. 1 - Feb. 10
w
4,889
1,054
13,315
Feb. 10 - Feb. 20
4,853
583
26,174
Feb. 20 - Feb. 28 5/
2,921
-
28,119
Mar. 1 - Mar. 10
2,879
23
32,509
Mar. 10 - Mar. 20
8,058
3
28,556
Mar. 20 - Mar. 31 61
2
2
42,435
Apr. 1 - Apr. 10
4,836
447
51,698
Apr. 11 - Apr. 20
5,335
639
66,906
2,827
-
50,958
Apr. 21 - Apr. 30
May 1 - May 10 I/
296
-
28,652
May 11 - May 20
1,872
5
18,000
Total
$78,464
$11,088
$495,832
2. Figures for exports to Free China diring these weeks include
1. These figures are in part taken from copies of shipping manifests.
exports to Rangoon which are presumed to be destined for Free
China.
Regraded Unclassified
308 SECRET
Appendix B
Page 2
3. It is presumed that a large percentage of exports to Burma are
destined for Free China.
4. Beginning with February 1 figures will be given for 10-day period
instead of week exsept where otherwise indicated.
5. 8-day period.
6. 11-day period.
7. Due to changes in reporting procedure by the Department of
Commerce this report is incomplete for the period indicated.
Treasury Department, Division of Monetary Research
June 2, 1942
ISF/efs
6/2/42
Regraded Unclassified
SECRET
309
APPENDIX C
Principal Exports from U. S. to U. S. S. H.
as reported to the Treasury Department
during the ten-day period ending
May 20, 1942
Unit of
Quantity
Value
Quantity
(Thouse ds
of dollars)
TOTAL EXPORTS
$ 18,000
Principal Items:
Motor trucks
No.
2,306
3,530
Dried egg products
lb.
2,194,409
2,278
Landplanes
1,409
Medium bombers (2 engines)
No.
9
Observation plane parts for assembly
-
-
Ammunition
1,007
75 m. high explosives
No.
61,614
32 m. high explosives
No.
50,395
37 m. armor piercing
No.
34,000
75 m. armor pieroing
No.
8,590
30 caliber
No.
500,000
Sausage, canned
lb.
2,800,115
952
Pork, canned
lb.
2,199,952
715
Aircraft engine parts and accessories
-
-
688
Military tanks
684
Light tanks
No.
22
Medium tanks
No.
2
Lard
lb.
4,408,323
673
Treasury Department, Division of Monetary Research
June 2, 1942
ISF/efa
6/2/42
Regraded Unclassified
SECRET
310
APPENDIX D
Principal Exports from U. S. to Free China
as reported to the Treasury Department
during the ten-day period ending
May 20, 1942
(Thousands of Dollars)
TOTAL EXPORTS
$ 1,872
Principal Items:
Military equipment
1,069
Printed matter
623
Writing paper
37
Auto replacement parts
26
Radio transmitters, tubes and parts
17
Relief supplies
17
Lathes
16
Treasury Department, Division of Monetary Research
June 2, 1942
ISF/efs
6/2/42
Regraded Unclassified
SECRET
311
APPENDIX E
Principal Exports from U. S. to Burma
as reported to the Treasury Department
during the ten-day period ending
May 20, 1942
(Thousands of Dollars)
TOTAL EXPORTS
#5
Principal Items:
Relief supplies - drugs and biologies
Relief supplies - Surgical and hospital
me
Treasury Department, Division of Monetary Research
June 2, 1942
ISP/efe
6/2/42
Regraded Unclassified
312
TREASURY DEPARTMENT
INTER-OFFICE COMMUNICATION
DATE June 2, 1942
TO
Secretary Morgenthau
FROM Mr. White
Subject: Status of Stabilization and Gold Purchase Agreements.
1. Stabilization Agreements in Operation.
Amount
Country
Dated
Expires
Commitment
Outstanding
Collateral
Brazil
7/15/37
7/15/42
$60,000,000
None
None gold
China
7/14/37
6/30/42
50,000,000
$19,112,500
$19,379,000 gold
China
4/ 1/41
6/30/42
50,000,000
None
None required
2. Stabilization Agreements Concluded but
not yet effective
Argentina 1/1/41 6/30/41
$50,000,000
None
None required
Vexico
11/1/41
6/30/43
40,000,000
None
None required
Ecuador
3/1/42
6/30/43
5,000,000
None
None required
Iceland
5/1/42 6/30/43
2,000,000
None
None required
3. Gold Purchase Agreements
Delivery
Commitment
Gold still
Advance still
Country
Dated
by
to buy
undelivered
outstanding
Russia
1/3/42
7/2/42
$21,070,000
$14,358,450
$11,886,730
This agreement also provides for sale to Brazil of up to
$60,000,000 in gold, of which $34,453,300 has been sold.
Argentines informed agreement can be revived on ratification.
Regraded Unclassified
M
313
TREASURY DEPARTMENT
PROCUREMENT DIVISION
OFFICE OF THE DIRECTOR
WASHINGTON
June 2, 1942
MEMORANDUM TO THE SECRETARY:
There is submitted herewith the operating report
of Lend-Lease purchases for the week ended May 30, 1942.
The pooling of private warehouse facilities for
Lend-Lease purposes has been started and a contract has
been made with a group of private warehousemen at Phila-
delphia to provide storage space. Negotiations to lo-
cate space are now being carried on in the Chicago area
by Colonel Nicholson of the Office of Defense Transpor-
tation to provide a similar warehouse pool of private
space in and nearby that City. The plan will be extended
to other cities and our function is to handle the adminis-
trative matters connected with the plan for the government
agencies making Lend-Lease purchases.
Culfton that
Director of Procurement
VEVICTORY
BUY
UNITED
STATES
BONDS
AND
STAMPS
Regraded Unclassified
LEND-LEASE
TREASURY DEPARTMENT, PROCUREMENT DIVISION
STATEMENT OF ALLOCATIONS, OBLIGATIONS (PURCHASES) AND
DELIVERIES TO FOREIGN GOVERNMENTS AT U. S. PORTS
AS OF MAY 30, 1942
(In Millions of Dollars)
Administrative
Undistributed &
Total
U. K.
Russia
China
Allocations
Expenses
Miscellaneous
$1700.3
$ 711.6
$ 280.4
$ 58.2
$ 1.6
$ 648.5
(1700.3)
( 708.2)
( 271.6)
( 59.5)
Purchase Authoriza-
( 1.6)
( 659.4)
tions (Requisitions) $1012.8
$ 678.9
$ 282.0
$ 45.8
-
$ 6.1
(1000.3)
( 655.7)
( 292.2)
( 45.7)
-
Requisitions Cleared
( 6.7)
for Purchase
$ 945.6
$ 640.2
$ 255.2
$ 45.8
-
$ 4.4
( 926.2)
( 628.1)
( 247.4)
( 45.7)
-
Obligations (Pur-
( 5.0)
chases)
$ 912.5
$ 626.5
$ 243.0
$ 39.1
$ 1.1
$ 2.8
( 893.7)
( 610.8)
( 239.8)
( 39.1)
( 1.1)
*Deliveries to For-
( 2.9)
eign Governments
at U. S. Ports
$ 392.7
$ 312.4
$ 59.7
$ 19.1
-
( 300.9)
( 57.2)
( 19.1)
-
no
$
1.5
( 378.7)
1.5)
#Deliveries to foreign governments at U. S. Ports do not include the tonnage that is either in
storage, "in-transit" storage, or in the port area for which actual receipts have not been re-
ceived from the foreign governments.
Note: Figures in parentheses are those shown on report of May 23, 1942.
315
EXPLANATION OF CHANGES
The decline in Russian Purchase Authorizations
(Requisitions) is due to the cancellation of Russian
Requisition No. R-1858 for 95,000 gross tons of rail-
road steel rails. The estimated valuation of this
requisition was $10,073,250.00.
The decline in Chinese allocations is due to
the cancellation of parts of Requisitions Nos. C-130,
C-530 and C-678. Requisition C-130 was decreased by
4680 pieces of steel forgings, and a valuation of
$984,800.00. Requisitions Nos. C-530 and C-678 were
decreased only in value in the total of $255,993.44.
Regraded Unclassified
316
TREASURY DEPARTMENT
INTER-OFFICE COMMUNICATION
DATE June 2, 1942
TO
Secretary Morgenthau
YOU
FROM
Mr. Dietrich
Official sales of British-owned dollar securities under the various vest-
ing orders since February 19, 1940:
No. of Shares $ Proceeds of Nominal Value $ Proceeds of
Sold
Shares Sold
of Bonds Sold
Bonds Sold
May 11
-
-
-
-
12
-
-
-
-
13
-
-
-
-
14
-
-
-
-
15
-
-
-
-
16
-
-
-
-
-
-
-
-
Sales from
Feb.22,1940 to
May 9, 1942
9,847,610-1/6
281,858,763
45,648,016
37,474,216
Sales from
Feb.22,1940 to
May 16, 1942
9,847,610-1/6
281,858,763
45,648,016
37,474,216
D
Regraded Unclassified
317
TREASURY DEPARTMENT
INTER-OFFICE COMMUNICATION
TO
volages channosy
DATE June 2, 1942
Secretary Morgenthau
FROM
Mr. Dietrich
Official sales of British-owned dollar securities under the various vest-
ing orders since February 19, 1940:
$ Proceeds of
$ Proceeds of
Shares Sold
Bonds Sold
Total
May 11
-
-
-
12
-
-
-
13
-
-
-
14
-
-
-
15
-
-
-
16
-
-
-
-
-
-
Sales from
Feb,22,1940 to
May 9. 1942
281,858,763
37,474,216
319,332,979
Sales from
Feb,22,1940 to
May 16, 1942
281,858,763
37,474,216
319,332,979
319,332,979
$ proceeds of non-vested securities sold
May 4. 1942 - May 9. 1942
100,000
$ proceeds of non-vested securities sold
Sept. 1, 1939 - May 2, 1942
247,600,000
$ proceeds of non-vested securities sold
247,700,000
247,700,000
Sept. 1, 1939 - May 9. 1942
GRAND TOTAL
567,032,979
$
61
Jan. 7. 1942 - Cash Dividend on 156 Shares
125
Jan. 9. 1942 - Partial Liquidating Dividend
42
11 Shares Stock Dividend sold Aug. 18, 1941 - May 16, 1942 for
9 Units sold from Aug. 18, 1941 - May 16, 1942 for
123
56,007 Rights sold from July 24, 1941 - May 16, 1942 for
102,938
D
Regraded Unclassified
318
TREASURY DEPARTMENT
INTER-OFFICE COMMUNICATION
Chauncey
DATE June 2, 1942
TO
Secretary Morganthau
FOR
FROM
Mr. Dietrich
Official sales of British-owned dollar securities under the various vest-
ing orders since February 19, 1940:
No. of Shares $ Proceeds of Nominal Value $ Proceeds of
Sold
Shares Sold
of Bonds Sold
Bonds Sold
May 18
-
-
-
-
19
-
-
-
-
20
-
-
-
-
21
-
-
-
-
22
-
-
-
-
23
-
-
-
-
-
-
-
-
Sales from Feb.
22, 1940 to
May 16, 1942
9,847,610-1/6
281,858,763
45,648,016
37,474,216
Sales from
Feb,22,1940 to
May 23, 1942
9,847,610-1/6
281,858,763
45,648,016
37,474,216
D
Regraded Unclassified
TREASURY DEPARTMENT
319
INTER-OFFICE COMMUNICATION
Chauncey
DATE June 2, 1942
TO
Secretary Morghthau
FROM
Mr. Dietrich
Official sales of British-owned dollar securities under the various vest-
ing orders since February 19, 1940:
$ Proceeds of
$ Proceeds of
Shares Sold
Bonds Sold
Total
May 18
-
-
-
19
-
-
-
20
-
-
-
21
-
-
-
22
-
-
-
23
-
-
-
-
-
-
Sales from
Feb.22,1940 to
May 16, 1942
281,858,763
37,474,216
319,332,979
Sales from
Feb.22,1940 to
May 23, 1942
281,858,763
37,474,216
319,332,979
319,332,979
$ proceeds of non-vested securities sold
May 11, 1942 - May 16, 1942
400,000
$ proceeds of non-vested securities sold
Sept. 1, 1939 - May 9, 1942
247,700,000
$ proceeds of non-vested securities sold
248,100,000
248,100,000
Sept. 1, 1939 - May 16, 1942
GRAND TOTAL
567,432,979
$
61
Jan. 7. 1942 - Cash Dividend on 156 Shares
125
Jan. 9. 1942 - Partial Liquidating Dividend
42
11 9 Shares Stock Dividend sold Aug. 15, 1941 - May 23, 1942 for
Units sold from Aug. 18. 1941 - May 23, 1942 for
123
56,007 Rights sold from July 24, 1941 - May 23. 1942 for
102,938
A
Regraded Unclassified
320
TREASURY DEPARTMENT
INTER-OFFICE COMMUNICATION
DATE June 2, 1942
TO
Secretary
Morgenthau,Miss FOR Chauncey
FROM
Mr. Dietrich
Official sales of British-owned doller securities under the various vest-
ing orders since February 19, 1940:
No. of Shares $ Proceeds of Nominal Value $ Proceeds of
Sold
Shares Sold
of Bonds Sold
Bonds Sold
May 25
-
-
-
-
26
-
-
-
-
27
-
-
-
-
28
-
-
-
-
29
-
-
-
-
30
-
-
-
-
-
-
-
-
Sales from
Feb.22,1940 to
May 23, 1942
9,847,610-1/6
281,858,763
45,648,016
37,474,216
Sales from
Feb.22,1940 to
May 30, 1942
9,847,610-1/6
281,858,763
45,648,016
37,474,216
&
Regraded Unclassified
321
TREASURY department
INTER-OFFICE COMMUNICATION
Secretary Morgenthau FOR Miss Chaunces
DATE June 2, 1942
TO
FROM
Mr. Dietrich
Official sales of British-owned dollar securities under the various vest-
ing orders since February 19, 1940:
$ Proceeds of
$ Proceeds of
Shares Sold
Bonds Sold
Total
May 25
-
-
-
26
-
-
-
27
-
-
-
28
-
-
-
29
-
-
-
30
-
-
-
-
-
-
Sales from
Feb,22,1940 to
May 23, 1942
281,858,763
37,474,216
319,332,979
Sales from
Feb.22.1940 to
Kay 30. 1942
281,858,763
37,474,216
319,332,979
319,332,979
$ proceeds of non-vested securities sold
May 18, 1942- - May 23. 1942
400,000
$ proceeds of non-vested securities sold
Sept. 1, 1939 to May 16, 1942
248,100,000
248,500,000
I
GRAND TOTAL
567,832,979
$
61
Jan. 7. 1942 - Cash Dividend on 156 Shares
Jan. 9. 1942 - Partial Liquidating Dividend
125
9 Units sold from Aug. 18, 1941 - May 30, 1942 for
42
11 Shares Stock Dividend sold Aug. 18, 1941 - May 30, 1942 for
123
56,007 Rights sold from July 24, 1941 - May 30, 1942 for
102,938
X
Regraded Unclassified
322
June 2, 1942.
Dear Mr. Bowley:
Thank you for your letter of
May 29th, with further reference to the
U.S. held preference shares of the Itabira
Mine Company.
Sincerely yours,
(Signed) H. D. White
H. D. White,
Director of Monetary Research.
Mr. T. K. Bewley,
The British Supply Council in
North America,
Box 680 Benjamin Franklin Station,
Washington, D. C.
IS
6/2/42
Regraded Unclassified
323
THE BRITISH SUPPLY COUNCIL IN NORTH AMERICA
Box 680
TELEPHONE: REPUBLIC 7000
BENJAMIN FRANKLIN STATION
WASHINGTON, D. C.
29th May, 1942
Dear Dr. White,
I gave you a memorandum about a fortnight
or three weeks ago about the method of payment
of the U. S. held preference shares of the Itabira
Mine Company.
I have now heard that the London authorities
propose to reverse their previous attitude and to
authorize the transfer into dollars of the sums
payable to shareholders of Itabira resident in the
U. S. A.
Yours sincerely,
Dr. Harry D. White,
Director of Monetary Research,
U. S. Treasury,
Washington, D.C.
T.r.Sinday.
Regraded Unclassified
personal
324
BRITISH JOINT STAFF MISSION
OFFICES OF THE COMBINED CHIEFS OF STAFF
2/6/42
WASHINGTON
6/4/42
AIR STAFF
Dear m Y Morgenthan
with reference to your oriquing at
luncheon to day -
The four siggest Brited Bamber are the
Stating, Halifox, Lancaster and
marchester
of there only the first has air cooled
Engines
yours sincerely
t. maiN Forter
P.S. 1 take this opportunity of thanks funding
mis Mar Margenthan and you for your indeed
to my wife and myself- - we are
qrateful
Regraded Unclassified
Treasury Department
325
Division of Monetary Research
Date 6/3
19
To:
Miss Chauncey
From:
H. D. White
Please call to the Secretary's attention.
326
TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION
DATE June 2, 1942
TO
Mr. White
FROM
Mr. Hoflich
Subject: Report from Mr. Casaday on the Voluntary Savings Campaign in
Scotland.
The appended cable from Mr. Casaday is based on interviews with members
of local savings committees in the counties stretching from the Clyde to the
Forth, in which is concentrated three-fifths of Scotland's total population
of 4.8 million.
The following highlights are especially interesting:
l. The Scottish savings committee is a subdepartment of the Treasury.
A small executive committee decides on matters of broad policy. A paid full-
time staff of fifty civil servants is maintained. All others connected with
the Scottish savings movement are voluntary workers.
2. Voluntary local committees are found in the counties, boroughs, par-
ishes, wards, villages and hamlets, with lack of uniformity characterizing
the relationship of these committees to each other. In most cases one or two
persons on a local committee do the bulk of the work.
3. Scottish individualism is so strong that savings committees rely
heavily on the individual approach, and there are relatively fewer savings
groups than in England.
4. The dominant position in the field of savings in Scotland is held
by the old established trustee savings banks. The degree of cooperation be-
tween these banks and savings committees varies widely.
In an Edinburgh shipyard a savings bank furnishes full banking facili-
ties one day per week, promising complete secrecy regarding all employee de-
posits. It is said that workers' security purchases had been low due to the
traditional fear that the employer's knowledge of the worker's savings would
somehow affect his position after the war.
The Glasgow Savings Bank has opened a small selling center in a working
class area where banking facilities are not easily accessible, open on Satur-
days only.
Regraded Unclassified
327
Division of Monetary
- 2 -
Research
5. The street groups in Edinburgh are among the most successful in the
country. It is essentially a women's movement. The city (population 430,000)
is divided into 23 wards with a savings leader and secretary in each ward.
The ward leader chooses several savings group leaders who in turn enlist the
services of collectors on the basis of about 20 houses per collector, for the
sale of stamps. The women stress the necessity of regular weekly calls.
The plan is considered a highly successful method of securing regular
small savings from housewives. It is admitted that not all collections rep-
resent new savings. In some cities it is said to be difficult to secure
trustworthy collectors.
6. The Scottish savings committees' publicity is limited and local.
The appeals made are (a) to obtain funds to pay for the war, (b) to save
shipping space, and (c) to save money for post-war independence.
7. Warship and other special weeks are held in Scotland on a modest
scale as compared to those in England, but the activities are similar in
nature.
8. Employers do not allow savings publicity on company time, since it
is believed that production time lost in the heavy industries would outweigh
the benefits derived.
(Cable no. 3056, London, June 1, 1942)
Regraded Unclassified
328
ELP
PLAIN
London
Dated June 1,1942.
Rec'd 10:40 p.m.
Secretary of State,
Washington.
3056 First
FOR THE SECRETARY OF THE TREASURY FROM CASADAY
Department's 1730 April 22 and Embassy's 2281
April 30, 2391 May 5 and 3001 May 27.
A visit was made to Edinburgh and Glasgow. The
investigation was conducted and the following report
prepared by Eilsen Winton of the financial section's
staff.
Area organizes members of local savings committees
and street group leaders were contacted for the counties
stratching from the Clyde to the Forth in which 18
concentrated three fifths of Scotland's total popul-
ation of four point Eight million. For purposes of
comparison only Scotland may bE regarded as similar
to a regional area in England.
It is important to note however that the
Scottish savings committee is completely independent
of its English counterpart. Scottish local savings
organization and techniques differ from those found
in England
Regraded Unclassified
329
-2-#3056, June 1 from London.
in England in several respects. It would appear
that this is largely due to the dominent position
in the field of savings of the old Established
widely used trustee savings bank. Street groups
organization has been successfully developed in
certain areas of Scotland notably Edinburgh Kelso and
Lanarkshire, A street group in Scotland may embrace
a whole borough village or hamlet in contrast to
its narrower SCOPE in England as reported in a pre-
vious telegram.
The Scottish savings committee (which has been
in Existence since 1916) consisting of a president,
chairman and members who represent the important
interests in the country is a sub-department of the
Treasury. An EXECUTIVE committe composed of the most
active members of the Scottish savings committee
decide on matters of broad policy. It maintoins a
paid full-time staff of fifty civil servants which in-
clude the secretary, assistant secretary, industrial
organizer for the whole of Scotland, publicity
organizer, clarical staff at the Edinburgh head-
quarters and SEVEN area organizers who have two or
three assistants Each. All other persons connected
with the Scottish savings movement are voluntary
workers.
Voluntary
Regraded Unclassified
330
-3-#3056, June 1 from London.
Voluntary committees comprise thirty-three local
or county committees seventy-two borough committees
and a multilicity of parish, ward, village and hamlet
committees. The local committees do not contact the
public directly for sale purposes EXCEPT when the
active members make speeches or otherwise Endeavor
to stimulate interest in the savings movement. The
principle administrative function of the local committee
is to SEE that EVEry savings group in the area submits
an annual return to headquarters in Edinburgh. The
relationship of the committees listed above to each
other varies throughout Scotland in contrast to
England where the organization is at least on paper
more or less similar all over the country. The
Scottish Experience with sll voluntary savings committees
is that one or two persons do the real work and provide
the necessary Enthusiasm to extend the savings organ-
ization in their particular area. It is thought that
the voluntary committees are however of importance
since they are a talking body and provide a medium
in which the persons who do the work can act. it is
claimed that Scottish ind: adualism is so strong that
the Scotsman cooperates when le must unlike the
Englishman who cooperates when he can. The Scotsman
does not like group activity of any type and for this
reason
-4-#3056, June 1 from London.
331
reason the Scottish savings committee does not stress
the number of groups or committees but relies on a
more individual approach. As a result there are
only 13,000 savings groups in the whole country while
England has some 250,000 likewise Scotland has only
53 local committees while England and Wales have over
1,400.
Central control by the Scottish savings committee
in Scotland is Exerted on the voluntary local and
others in three ways: (1) By sending out area organ-
izers and their assistants who are civil servants
appointed by the secretary of the Scottish savings
committee. (2) By having local committees depend
on supplies from headquarters and requiring per-
mission for any unusual undertaking suggested.
(Complaints of too much control from Edinburgh were
heard from various sources). (3) Personal influence
of the members of the Scottish savings committee can
bE very powerful in suggesting chairmen to officer
county committees.
The traditional importance of the trustee savings
banks has conditioned the success met by the Scottish
savings committee in Extending organized group
savings. For Example in view of the sparse and
scattered population in the island and northern
counties
Regraded Unclassified
332
-5-#3056, June 1 from London.
counties Excluding Aberdeen which are already serviced
by trustee savings banks the Scottish savings committee
may decide that it 10 uneconomic to attempt group
organization.
The degree of cooperation between the trustee
savings banks and the Scottish savings committees
varies all over the country from complete cooperation
to the refusal on the If rt of one bank to EVEN cell
national savings certificates. An Example of
cooperation may hE found in Edinburgh there one EX-
periment is bEing tried to bring the bank to the
worker. A visit was made to a shipbuilding and re-
pairing yard in Edinbugh. Although there were various
savings groups schemes operating in the yard only a
small percentage of the MEN contributed regularly.
One reason which was given for this was the traditional
suspicion and fear that the employers' kno' ledge of
how much the worker had in the bank would in some way
affect his position after the war. The actuary of
the Edinburgh savings bank agreed to provide full
banking facilities to workers on the employers' premises
on pay day workers were Encouraged to open new accounts
and they were assured that complete secrecy would bE
maintained about all Employee deposits. A small room
in the yard was provided and EVERY Priday bank clerks
SOME
Regraded Unclassified
333
-6-#3056, June 1 from London.
some of them voluntary workers provided by the
Scottish savings committee and trained by the savings
bank carried on full banking facilities. To date
very few accounts have been opened although the
Employer himself as WEll as the bank advertised
the scheme by various nethods such as putting printed
slips in pay Envelopes addressing the men through loud
speakers and using cinema vans. It 18 too soon to
state whether it is a valuable method of increasing
industrial savings but it is a typical Example of the
Efforts made in Scotland to make savings as personal
and as casy as possible for the individual.
Another Example of the importance of the trustee
savings bank may bE found in Glasgow, which from the
point of VIEW of group organization and amount of
money saved is the most difficult and non-ocoperative
area in Scotland. Savings have increased in the last
six months principally because of the trustee savings
bank's efforts. The latest Experiment undertaken by
the manager of the Glasgow Savings Bank 18 the opening
of a small selling center in a working class area of
the city where banking facilities are not easily
accessable. It will bE only open on Saturdays. The
selling center has not been developed to any great
extent by the Scottish savings committee. There is
one in Aberdeen but it is not successful. If the
experiment
Regraded Unclassified
334
-7-#3056, June 1 from London.
Experiment of the Glasgow savings bank is success-
ful other centers will bE opened by the bank.
The street groups organizati on in Edinburgh,
population 430,000, is one of the most successful in
the country. After nine months of organization there
EXISTS almost a complete network of savings groups in
the city. This is essentially a women's novement
strongly supported by the vomens voluntary services
and the Scottish Rural Vomen's Institute. The appeal
is directed not only at housewives but also to re-
tired pers na and professional people who cannot
easily join & savings group. The city 1.8 organized
as follows: It is divided into 23 wards which in turn
are sub-divided into a warying number of districts.
Each ward has a savings leader and a savings secretary.
The word lender choses several savings groups leaders
who in turn Enlist the SERVICES of collectors on the
basis of about 20 houses per collector. The scheme
is basically simple and runs without much record
keeping or return making. Each group leader 1.8
supplied originally "ith a credit stock of six penny
and two shillings and six penny stamps which is
obtained from the post OFFICE by signing a form which
=lso requires the signature of one or two other people,
These
Regraded Unclassified
335
-8-3056, June 1 from London.
These are distributed by the group lender to her
collectors who in turn SELL them to the people in
their area. The stamps are pasted in a book and may
bE ultimately used to purchase a national savings
certificate, deposited in a trustee savings bank or
Encashed. All books and forms necessary for the
stamps and for keeping accounts (specimens being sent
forward) are supplied by the Scottish savings committee
When the collector's stamps are all used she replaces
them at the post office with the money she has
collected in her area and she must always bE able to
show on demand either stamps or money to the amount
which she originally received. Each WEEK the
collectors make a return to the group leaders. Once
monthly the group leaders meet and give their returns
to the ward leaders, finally the ward leaders send
in by postcard the total amount collected inther
ward to the city Chamberlain who acts as statistical
collector. The figures are then published in the
papers as well ns in shops and posters in the different
wards.
This type of organization can only bE successful
where as is the CASE in Edinburgh one or two members
of the local savings committee are active end
inthusinstic
Regraded Unclassified
336
-9-#3056, June 1 from London.
Enthusiastic and USE their knowledge of local people
to SEE that the right woman is chosen as ward leader.
She is usually a WEll-known and popular person whose
position in the community is well Established. To
keep up Enthusiasm socials and garden parties are
held by the women the function the ward groups. At
a meeting of group leaders in one Edinburgh ward
Eight women WERE interviewed. Most of them were also
collectors and they stated that one morning or after-
noon per WEEK was ample time to visit the houses
assigned to them. Some of them chose Monday morning
as it was washday end they would usually find their
people at home. They were an Enthusiestic body of
women and I was told that they were by ne means an
Exceptional group. The women stressed the importance
of tact sympathy and the utter necesity of calling
regularly as otherwise the sixpence or two shillings
and sixpence lost might not bE had the following WEEK.
Results of the street group movement in
Edinburgh: it 18 considered a highly successful
method of regularly securing small savings from the
housewife as no women wants to admit "that she cannot
SAVE at least sixpence per week". An official of a
trustee savings bank stated that in his opinion it
was an EXCELLENT scheme EVEN though he did not like it
from
Regraded Unclassified
337
-10-#3056, June 1 from London.
from a business point of view.
Possible limitations of street savings group
scheme:
(1) One critic of the scheme pointed out that
the money saved under the street savings scheme is
not always new savings. For Example a women who
formerly deposited one pound per month at the local
trustee savings bank censed to do so and instead
purchased one pounds worth of stamps from her collect-
or. At the End of the month she deposited a pounds
worth of stamps in the same bank with no gain in
savings and much loss of Energy involved. This EX-
ample however must not bE taken as being very typical.
(2) Where city conditions are pleasant as in
Edinburgh it is relatively Easy to secure the
cooperation of women to do the work of collection.
HOWEVER in a city like Glasgow with its mixed popul-
ation tenements and unpleasant winter climate the
scheme has not worked successfully. This may bE due
to other factors such as lack of cooperation on the
part of the local committee and area organizer but
there is a certain amount of volidity in the
criticism. In Edinburgh for example I was told that
tenement house women were on the whole not issued
with the large amounts of stamps necessary to operate
the scheme since they could not bE trusted.
The Scottish
Regraded Unclassified
338
-11-#3056, June 1 from London.
The Scottish savings committee's publicity is
limited and local. In the year Ended March 31, 1942
nly thirty th usand pounds was spent in advertizing.
Traders are not asked or Encouraged as in Egnland to
contribute space in newspapers EXCEPT during special
weeks. The committee publishes the "Scottish Yar
Savings Bulletin" monthly.
Films and radi publicity are the same ns in
England.
The trustee savings banks in Scotland do a
considerable amount of carefully planned advertising
if an Expensive nature such as printing slips to put
in pay Envelopes book covers stickers for wand VS
posters leaflets and newspaper advertising.
The appeal made in Scottish publicity is, first,
to BEt money t pay for the war, SEC nd, to SAVE
shipping space and, third, to have 0 me II ney after
the war as a source f independence. The Element
of fear which the national savings committee advert-
ising has used lately 19 not considered desirable
and the Scottish savings committee rejects it.
Warship and ther special WEEKS are held in
Scotland n a more modest scale as C mpared with England
but on the while similar activities as reported in
previous
Regraded Unclassified
339
-12-#3056, June 1 from London,
previous telegrams take place.
A few miscellaneous observations on the Scottish
savings Experience are: 226 Enployers do not allow
savings publicity on the company's time since pro-
duction time last in the heavy industries would nut-
weigh the benefits derived. Persons Either paid off
voluntary not suitable fr their posts are just side-
tracked and not given anything to do.
WINANT
Regraded Unclassified
340
Treasury Department
Division of Monetary Research
Date
19
To: Mass Channely
Deneral
this can go to
the secretary's files
without being shown
to him
JaSouthard
MR. WHITE
Branch 2058 - Room 214
C
341
0
P
Y
DEPARTMENT OF STATE
WASHINGTON
June 2, 1942.
In reply refer to
FD 822.515/89
The Secretary of State presents his compliments
to the Honorable the Secretary of the Treasury and
transmits herewith for his information copies of a
memorandum, obtained from a confidential source by
an agency within this Government, concerning the
recent revaluation of the Ecuadoran Sucre.
Enclosure:
Memorandum.
Regraded Unclassified
342
MEMORANDUM
Re: Revaluation of Ecuadorian Currency
By Presidential Decree dated April 28, 1942, Ecuador's unit of
monetary exchange, the Sucre, was modified in value with relation to
the United States dollar. The substance of the Decree is as follows:
The Banco Central del Ecuador will buy dollars at the rate of
13.70 Sucres, selling them for 14.10 Sucres. (The former rate was 14.80
to buy and 15.10 to sell).
The rate of exchange for the moneys of other countries will be
fixed by the Banco Central, taking as a base the quotation of the
verious moneys on the New York Market with relation to the dollar and
to the stendard heretofore set forth.
All of the Banco Central's gold reserve will be recalculated in
value, taking as a base the quotations of the various moneys on the
New York Market and the standard of fourteen Sucres to the dollar.
The difference resulting will be placed in the Stabilization Fund
approved by the Treasury.
All funds which the Banco Central maintains in foreign banks will
be recalculated in value at the rate of 13.80 Sucres per dollar or its
equivalent in other moneys, and the difference resulting will be placed
in the account of the Stabilization Fund.
The value in foreign money of goods which enter the country up
until June 30, 1942 will be converted into Sucres at the rate of 15.10
Sucres on each dollar. In the case of goods which have to be naid for
before their arrival from foreign countries and will not arrive until
efter June 30, 1942, the supervision thereof will be under "Le Direccion
del Control de Cambios".
The Minister of Agriculture through the Office of Exportation
Control will check the existence of all exportable products in the
hands of the exporting firms. These firms, within forty-eight hours
following promulgation of the Decree, will have to submit an inventory
of such products to said Minister. The Banco Central will thereafter
purchase all such goods from these exporters at the rate of 14.70 Sucres
on the dollar, the difference of one Sucre to be charged to the Stabilization
Fund.
The difference of 40 centavos which exists between the purchase price
and the sale price of dollars will be distributed as follows: Ten be centavos
for the purchase of dollars or their equivalent in other money to
credited to the debt owed by the Government to the Banco Central under
Government at the moment of any sale of dollars: and the remaining twenty
existing contract: ten centavos to be credited to the same debt of the
to be credited to the account of the Control of Exchange
centavos for the purpose of defraying the cost of this organization. Any to be funds
applied to the Government debt: thirty per cent for use of the Banco
remaining in this account will be distributed; sixty per cent
Central: and ten per cent to the Stabilization Fund in the Banco Central.
Regraded Unclassified
343
- 2 -
The difference of one Sucre which exists in the payment
for merchandise which arrives at Ecuadorian ports until June 30, 1942
will be charged to the Stabilization Fund in the Banco Central.
The impost of ten centavos on each Sucre bought or sold, which
was in effect before the promulgation of this Decree, is repealed.
Public Reaction
It is apparent that with most Ecuadorians residing in Quito it
is very satisfactory. Several have pointed out that it creates an
advantage for the importers and a disadvantage for the exporters at a
time when the country is trying to increase its exports.
It is further reported from reliable sources that prior to the
enactment of this Decree, the Banco Central had acquired eight million
dollars at 14.70 on the dollar; and that with the subsequent loss of
eight million Sucres as a result of the revaluation it was expected
to regain this loss from the Stabilization Fund which the Bank maintains
at twelve million Sucres.
(COPY :MLB)
bj:eh:copy
6-3-42
Regraded Unclassified
344
COPY NO.
13
BRITISH MOST SECRET
U.S. SECRET
OPTEL No. 184
Information received up tn 7 A.M., 2nd June, 1942.
1. NAVAL
One -of H.M. Submarines sank a laden southbound merchant
vessel of about 3,500 tons northwest of BRINDISI on the 19th.
2, MILITARY
LIBYA. 31st. The enemy strengthened the bridgehead
covering the TRIGH CAPUZZO GAP and cur armour was prevented from
closing the gap by a strong anti-tank screen. The armoured battle
continued in the area southwest and southwest of KNIGHTSBRIDGE, and
the enemy continued his attempt to withdraw his armour and mechanica
transport to the west of our minefields,
1st June. Our position south of the Gap was heavily
attacked from the north and northeast, but pressure was relieved
slightly by our armour, which counter attacked the onemy from the east.
The enemy armour was believed to be in 2 groups of approximately
equal strength one east of the Gap and the other in the CHERIMA area
west of the Gap. One of our armoured car regiments moved round our
southern flank to SPGNALI, which was found clear of enemy, and an in-
fantry brigade which had been holding the BIR HAKEIM position followed
it up. A motor brigade group moved south of BIR HAKEIM and attacked
enemy supply lines at the junction of TRIGH EL ABD and TRIGH CAPUZZO
immediately to the west of the Gap. This same point was also at-
tacked from the north by columns of infantry from our defended position
3. AIR OPERATIONS
WESTERN FRONT. 1st, 12 Bostons and16 Hurricane bombers,
escorted by a total of 33 squadrons of Spitfires, attacked objectives
at FLUSHING, BRUGES, and CALAIS, a further 21 squadrons of Spitfires
carried out sweeps, 2 enemy aircraft were destroyed and 6 damaged.
We lost 9 Spitfires, 1 pilot safe. 2 Mosquitos carrying bombs were
sent to reconnoitre COLOGNE. 1 is missing.
lst/2nd. 1,036 aircraft were sent out. ESSEN, 956, in-
cluding 310 Heavies, and aerodromes in GERMANY and occupied territory
80. 35 aircraft are missing and 2 crashed, About 40 enemy aircraf:
operated against this country, 13 of which came over KENT and EAST
ANGLIA. 1 was destroyed and 2 damaged.
Regraded Unclassified
345
- 2 -
LIBYA. 31st. Our aircraft attacked enemy ground forces
east and west of the Gap in our minefields.
On 31st/lst. Wellingtons bombed DERNA Landing Ground.
During these operations 6 enemy aircraft were destroyed, 5 probably
destroyed and 12 damaged. We lost 16 fighters, 2 pilots safe,
MADAGASCAR. 31st. Our aircraft attacked TANANARIVE
aerodrome setting fire to a hangar and 1 aircraft.
4. HOME SECURITY
CANTERBURY. 31st/lst. At the Cathedral some damage
occurred to the Library but otherwise was confined to windows by
blast. Fairly extensive damage to buildings. 26 persons reported
killed.
Regraded Unclassified
346
TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION
DATE June 2, 1942
TO
Secretary Morgenthau
FROM
Mr. Kamarck
Subject: Summary of Military Reports
Raid on Cologne
In the raid on Cologne, 530 tons of high explosive
and 929 tons of incendiaries were dropped. The total
tonnage, therefore, comes to 1,459 tons (or three times
the largest previous raid, the one on the Renault works
in Paris). Included in the high explosive were 86 two-
ton bombs. The incendiaries consisted of more than
470,000 separate bombs. (The public statements exag-
gerate the number of planes by 50 percent and the tonnage
of bombs dropped by 100 percent).
On May 31, five "Mosquitos" carried out visual
reconnaissance, but could see nothing because the city
was enveloped in smoke. Three of the "Mosquitos" dropped
bombs.
On the night of May 31/June 1, two Wellingtons bombed
Cologne again.
(It will take two days more before we receive the
complete details of last night's raid on the Krupp works
in Essen).
(U.K. Operations Report, June 1, 1942)
Japanese Preparations
The Japanese have added one more division to their 23
divisions concentrated in Manchuria. (The Japanese, there-
fore, have from 500,000 to 600,000 men now in Manchuria
In the last few months, they have added three or four
divisions to the large forces they already had there. The
indications are that the likelihood of an attack on Siberia
is increasing).
(U.K. Operations Report, June 1, 1942)
Regraded Unclassified