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Volume 679, November 22 – November 24, 1943
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Volume 679, November 22 – November 24, 1943
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Henry Morgenthau, Jr. Papers
Diaries of Henry Morgenthau, Jr.
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DIARY
Book 679
November 22-24, 1943
- B -
Book Page
Brasil
See Latin America
Budget, Bureau of
See Revenue Revision: 1943 Revenue Bill
Business Conditions
Haas memorandum on situation, week ending November 20,
1943 - 11/22/43
679
9
- C -
Clapper, Raymond
See Revenue Revision: 1943 Revenue Bill
Cuba
See Latin America
Currency Stabilization
See Post-War Planning
- 7 -
Financing, Government
7/8% Certificates of Indebtedness, Series G-1944,
offered in exchange for Certificates, Series E-1943,
maturing December 1, 1943 - 11/22/43
5
War Savings Bonds:
3rd War Loan Drive: White House contributions -
11/23/43
124
4th War Loan Drive: Announcement - 11/22/43
1
a) Slogan: "Let's All Back the Attack" - 11/30/43:
See Book 681, page 227
Merchant Seamen: Plans for sales of bonds discussed in
letter to Knox - 11/24/43
258
Foreign Funds Control
Lazard Freres: Completion of case reported by Paul;
Schubart (William H.), Bank of Manhattan, to be offered
partnership - 11/24/43
261
a) Resume for FDR - 12/2/43: See Book 682, page 158
France
See Occupied Territories
- G -
Gold
See Latin America: Brasil: Cuba
- L -
Latin America
Brasil: Stabilization Agreement - amendment to increase
amount of gold to be sold to a maximum of $300 million
reported by White - 11/22/43
262
Regraded Unclassified
- L - - (Continued)
Book Page
Latin America (Continued)
Cuba: Sale of gold discussed in correspondence between
Ambassador and Treasury - 11/24/43
679
266
Lawrence, David
See Revenue Revision: 1943 Revenue Bill
Lazard Freres
See Foreign Funds Control
Lend-Lease
U.S.S.R.: Fourth monthly report, ending October 31, 1943,
under Third Soviet Protocol - 11/22/43
31
United Kingdom: Aircraft despatched, weeks ending
November 9 and 16 - British Air Commission report -
11/22/43
45
Lindley, Ernest K.
See Revenue Revision: 1943 Revenue Bill
Lippmann, Walter
See Revenue Revision: 1943 Revenue Bill
- M -
Merchant Seamen
See Financing, Government: War Savings Bonds
- N -
Nathan, Robert
See Revenue Revision: 1943 Revenue Bill
Navy Department
See Revenue Revision: 1943 Revenue Bill
Nelson, Godfrey (New York Times)
See Revenue Revision: 1943 Revenue Bill
New York Times
See Revenue Revision: 1943 Revenue Bill (Godfrey Nelson
article)
- 0 -
Occupied Territories
French Operations: Type of currency to be used discussed
in letter to State Department - 11/24/43
268
a) Withdrawal of this letter suggested by
War Department - 11/27/43: See Book 680, page 276
b) Review of entire invasion currency situation by
White - 12/2/43: Book 682. page 160
1) "Four Freedoms" on currency for Germany
discussed by White - 12/13/43: Book 683,
page 116
Regraded Unclassified
- P -
Book Page
Post-War Planning
Currency Stabilisation: Press release giving tentative
proposal for United Nations Bank for Reconstruction
and development - 11/23/43
679
139
a) Copies to various Finance Ministers
157
1) Cuba reply - 12/15/43: See Book 684, page 201
2) Peru #
III
: Book 684, page 202
3) Venezuela reply - 12/16/43: Book 684, page 336
4) Canada reply - 12/16/43: Book 684, page 337
5) El Salvador reply - 12/21/43: Book 686, page 106
6) Union of South Africa reply - 12/28/43: Book 687,
- R -
page 68
Revenue Revision
1943 Revenue Bill
Conference of Treasury group on HMJr's second appearance
before House Ways and Means Committee - 11/23/43
52,96,200
a) Rebuttal of criticiem discussed; HMJr dissatisfied
with what has been done to date
b) War Department turn-back of $13 billion discussed
by HMJr and Patterson - 11/23/43
56
1) Conversation with Budget Bureau (Coy) reported
by Bell
83,109
2) Discussion of Budget's action by Treasury
group - 11/27/43: See Book 680, page 109
3) Actual Army and Navy budgetary positions -
11/29/43: Book 681, page 186
c) Forrestal's office and HMJr discuss similar
turn-back for Navy
63
d) Nathan (Robert) to be asked to help, if possible
69
1) White-Nathan conversation - 12/1/43:
Book 682, page 72
a) "Who's Who": Book 682, page 73
2) Nathan memorandum: War production program
and the economic outlook - 12/15/43: Book 684,
page 181
Haae chart on War Production Board Munitions
Production Index and war expenditures monthly.
July 1940 to date: Book 684, page 318
e) HMJr: "Trying to please too many people fault of
last tax bill; if aim is to please only myself,
this bill may be better"
74
f) Sales tax exemptions discussed
76
g) Luncheon conference with Democratic members of
Finance Committee planned; Vinson invited
116
1) Actual conference - 11/24/43
238,242
h) Lippmann, Lindley, Clapper, etc., consulted by
Gaston
121,245
1) Sales tax discussed
221
a) Chart
235
J) Congressional Record digest
248
k) David Lawrence discusses his idea of tax bill
with Gaston - 11/26/43: Book 680, page 6
1) Paul Wooton (McGraw-Hill publications, including
Business Week, representative) discusses tax bill
with Gaston - 11/26/43: Book 680, page 7
- R - (Continued)
Book 679
Revenue Revision (Continued)
1943 Revenue Bill (Continued)
New York Times article by Godfrey Nelson "United States
Taxation Goal Overtops British" explained in Blough
memorandum - 11/26/43: See Book 680, page 8
Conference of Treasury group - 11/27/43: Book 680,
page 109
a) Reduction in estimates of expenditures from the
August Budget summation discussed: Book 680, page 113
(See Budget release, 11/28/43 - page 150)
1) HMJr discusses how to present new budget figures
to Congress: Book 680, page 115
a) War taxes to be reiterated over and over
b) $41 billion in revenue on a $100 billion
budget means $9 billion in taxes - Gaston's
suggested approach
2) Haas memorandum based on budget revision:
"Revised Outlook on Excess Income of Individuals
for the Fiscal Year 1944" - 11/27/43: Book 680,
page 153
For statement by HMJr and discussion thereof see Book 680:
Statements by HMJr
- S -
Schubart, William H. (Bank of Manhattan)
See Foreign Funds Control: Lazard Freres
Seamen, Merchant
See Financing, Government: War Savings Bonds
- T -
Taxation
See Revenue Revision
- U -
U.S.S.R.
See Lend-Lease
- V -
War Department
See Revenue Revision: 1943 Revenue Bill
War Savings Bonds
See Financing, Government
White House
See Financing, Government: War Savings Bonds
(3rd War Loan Drive)
Wooton, Paul
See Revenue Revision: 1943 Revenue Bill
1
TREASURY DEPARTMENT
Weshington
FOR RELEASE, MORNING NEWSPAPERS,
Press Service
Monday, November 22, 1943.
No. 39-62
Secretary Morgenthau announced today that the Fourth "Yar Loan Drive
would start January 18, and would run until February 15, 1944.
The goal has been set at $14,000,000,000. Five and one-half billion
dollars of this amount is to be raised directly from individuals.
The State "ar Finance Committees will have the task of raising this
$14,000,000,000. These committees are being strengthened and expanded to
meet the necessity of increasing the number of people who are buying Var
Bonds. Millions of volunteer salesmen are now ready to carry this campaign
for funds to every individual investor in homes and in plants throughout the
nation.
The major emphasis throughout the entire period of the Drive - January 18
to February 15 - will be placed on the quota of $5,500,000,000 for individuals.
During the period from January 18 to February 1 only sales to individuals will
be reported by the Treasury. The reporting of sales to individuals will be
supplemented starting February 1 with reports of sales to other non-banking
investors - the quota for which is $8,500,000,000. This will not preclude
the acceptance of subscriptions from other non-banking investors at any time
during the Drive.
All subscriptions for Sevings Bonds and Savings Notes received at the
Federal Reserve Banke or at the Treasury of the United States between January 1
and February 29, 1944, will be credited to the Drive.
The goal and the type of securities to be offered were determined by the
Treasury after consultation with the chairmen of the State War Finance Commit-
tees, officials of the Federal Reserve System, the American Bankers Association
and other investment authorities.
The securities to be sold under the direction of the War Finance Commit-
tees will consist of:
Series E Savings Bonds
Series F and G Savings Bonds
Series C Savings Notes
2-1/2% Bonds of 1965-70
2-1/19 Bonds of 1956-59
7/8% Certificate of Indebtedness
In view of the fact that many commercial banks accept time deposits and
perform in their own communities the same functions as those performed by
other savings institutions, the Treasury will permit such commercial banks
Regraded Unclassified
2
- 2 -
to make a limited investment of their time deposits only in the 2-1/4% and
2-1/2% Bonds under a formula to be announced later,
The 2-1/2% Bond will be dated February 1, 1944, due March 15, 1970,
callable March 15, 1965, and will be issued in coupon or registered form at
the option of the buyers, in denominations from $500 to $1,000,000. Com-
mercial banks, which are defined for this purpose as banks accepting demand
deposits, will not be permitted to own these bonds until February 1, 1954,
except for the limited investment of time deposits.
The 2-1/4% Bond will be dated February 1, 1944, due Sept. 15, 1959,
callable Sept. 15, 1956, and will be issued in coupon or registered form at
the option of the buyers, in denominations of 3500 to $1,000,000. Commercial
banks, which are defined for this purpose as banks accepting demand deposits,
will not be permitted to own these bonds until September 15, 1946, except for
the limited investment of time deposits.
The 7/8% Certificate of Indebtedness will be dated February 1, 1944,
due February 1, 1945, and will be issued in denominations of $1,000 to
$1,000,000 and in coupon form only.
The Treasury will request that, until after February 15, 1944, com-
mercial banks not buy the 7/8% Certificates of Indebtedness offered, and
that the market not trade in any of the marketable securities fered in
the Drive.
To avoid unnecessary transfers of funds from one locality to another,
the Treasury requests that all subscriptions by corporations and firms be
entered and paid for through the banking institutions where funds are located.
This request is made to prevent disturbance to the money market and the bank-
ing situstion. The Treasury will undertake to see that statistical credit is
given to any locality for such subscriptions that the corporations and firms
may request; except subscriptions from insurance companies will be credited
to the State of the home office as in the past.
In order to help in achieving its objective of selling as many securi-
ties as possible outside of the banking system, the Treasury requests the
cooperation of all banking institutions in declining to make speculative
loans for the purchase of Government securities. The Treasury is in favor
of the banks making loans to facilitate permonent investment in Government
securities provided such loans are made in accord with the joint statement
issued by the National and State Bank Supervisory Authorities on
November 23, 1942.
Regraded Unclassified
3
Nevember 22, 1943.
Mr. Charles B. Dulean, Sr.
Vice President and General Manager
The Hecht Company
Washington, D. C.
Dear Mr. Dulean:
Your Christmas War Bond windows, dramatising as they do the
way our fighting RED will be spending their Christmas this year,
are & nost unusual and valuable contribution not only to the
people of Washington, but to all America.
These thres-dimensional window displays cannot help but bring
home to all who view them the true spirit of Christmas, 1943 - a
spirit of understanding and communion with our boys; a desire to
share their Christmas here on the home front.
From my - personal observation in the actual battle sones,
I can attest to the securacy of the heart-stirring scenes you
portray.
It 10 my hope that just as the Hecht Company helped load the
my with its inspiring presentation of the "Four Freedoms" display
which later empt the Nation, no this Christmas War Bond display
will serve as a model. to retailers all across the land. For I
believe, with you, that the best pedetable expression of the will
to share this Christmas with our boys lies in buying and giving
the one sift which will meet surely and speedily bring these boys
home - Mar Info.
Sincerely yours,
(Signed) Henry Morgenthau, Jr.
Regraded Unclassified
4
N
HEADQUARTERS SEVENTH ARMY
APO # 758
c/o Postmaster, N.Y.C.
22 November, 1943
My dear Mr. Secretary:
In consonance with your wishes we sent you 85 crates of
assorted property and a large number of guns, tanks, etc., totaling
in all some 20 vehicles.
Owing to conditions beyond our control this shipment did
not leave Sicily until about the 14th of November. I therefore fear
that it may be a case of "love's labor lost, but in any event we did
our best and trust that if you cannot use this stuff this time, it may
be of value for a subsequent drive.
With expressions of warm personal regards, I am,
Very respectfully,
G. S. PATTON, JR.,
Lieut. General, U. S. Army,
Commanding.
The Honorable Henry Morgenthau, Jr.
Secretary of the Treasury
Washington, D. C.
U. S. A.
Regraded Unclassified
UNITED STATES OF AMERICA
7/8 PERCENT TREASURY CERTIFICATES OF INDEBTEDNESS OF SERIES G-1944
Dated and bearing interest from December 1, 1943
Due December 1, 1944
1943
TREASURY DEPARTMENT,
Department Circular No. 727
Office of the Secretary,
Washington, November 22, 1943.
Fiscal Service
Bureau of the Public Debt
I. OFFERING OF CERTIFICATES
1. The Secretary of the Treasury, pursuant to the authority of the Second
Liberty Bond Act, as amended, invites subscriptions, at par, from the people of
the United States for certificates of indebtedness of the United States, desig-
nated 7/8 percent Treasury Certificates of Indebtedness of Series G-1944, in
exchange for Treasury Certificates of Indebtedness of Series E-1943, maturing
December 1, 1943.
II. DESCRIPTION OF CERTIFICATES
1. The certificates will be dated December 1, 1943, and will bear interest
from that date at the rate of 7/8 percent per annum, payable semianmually on
June 1 and December 1, 1944. They will mature December 1, 1944, and will not
be subject to call for redemption prior to maturity.
2. The income derived from the certificates shall be subject to all
Federal taxes, now or hereafter imposed. The certificates shall be subject
to estate, inheritance, gift or other excise taxes, whether Federal or State,
Jut shall be exampt from all taxation now or hereafter imposed on the principal
or interest thereof by any State, or any of the possessions of the United States,
er by any local taxing authority.
3. The certificates will be acceptable to secure deposits of public moneys.
will not be acceptable in payment of taxes.
Regraded Unclassified
- 2 -
4. Bearer certificates with interest coupons attached will be issued in
denominations of $1,000, $5,000, $10,000, $100,000 and $1,000,000. The certifi-
cates will not be issued in registered form.
5. The certificates will be subject to the general regulations of the
Treasury Department, now or hereafter prescribed, governing United States
certificates.
III. SUBSCRIPTION AND ALLOTMENT
1. Subscriptions will be received at the Federal Reserve Banks and Branches
and at the Treasury Department, Washington. Banking institutions generally may
submit subscriptions for account of customers, but only the Federal Reserve
Banks and the Treasury Department are authorized to act as official agencies.
Others than banking institutions will not be permitted to enter subscriptions
except for their own account.
2. The Secretary of the Treasury reserves the right to reject any sub-
scription, in whole or in part, to allot less than the amount of certificates
applied for, and to close the books as to any or all subscriptions at any time
without notice; and any action he may take in these respects shall be final.
Subject to these reservations, all subscriptions will be allotted in full.
Allotment notices will be sent out promptly upon allotment.
IV. PAYMENT
1. Payment at par for certificates allotted hereunder must be made on
or before December 1, 1943, or on later allotment, and may be made only in
Treasury Certificates of Indebtedness of Series E-1943, maturing December 1,
1943, which will be accepted at par, and should accompany the subscription.
Regraded Unclassified
- 3 -
V. GENERAL PROVISIONS
1. As fiscal agents of the United States, Federal Reserve Banks are
authorized and requested to receive subscriptions, to make allotments on the
basic and up to the amounts indicated by the Secretary of the Treasury to the
Federal Recerve Banks of the respective districts, to issue allotment notices,
to receive payment for certificates allotted, to make delivery of certificates
on full-paid subscriptions allotted, and they may issue interim receipts
pending delivery of the definitive certificates.
2. The Secretary of the Treasury may at any time, or from time to time,
prescribe supplemental or amendatory rules and regulations governing the
offering, which will be comminicated promptly to the Federal Reserve Banks.
Winttan HENRY MORGENTHAU, JR.,
Secretary of the Treasury.
Regraded Unclassified
8
UNITED STATES OF AMERICA
3/4 PERCENT TREASURY CERTIFICATES OF INDEBTEDNESS OF SERIES G-1944
Dated and bearing interest from December 1, 1943
Due December 1, 1944
1943
TREASURY DEPARTMENT,
Department Circular No. 727
OFFICE OF THE SECRETARY,
Fiscal Service
Boreau of the Public Debt
Washington, November 22, 1943.
I. OFFERING OF CERTIFICATES
1. The Secretary of the Treasury, pursuant to the authority of the Second Liberty Bond Act,
as amended, invites subscriptions, at par, from the people of the United States for certificates of
indebtedness of the United States, designated ⁷/₈ percent Treasury Certificates of Indebtedness of
Series G-1944, in exchange for Treasury Certificates of Indebtedness of Series E-1943, maturing
December 1, 1943.
IL DESCRIPTION OF CERTIFICATES
1. The certificates will be dated December 1, 1943, and will bear interest from that date at the
rate of ⁷/₈ percent per annum, payable semiannually on June 1 and December 1, 1944. They will
mature December 1, 1944, and will not be subject to call for redemption prior to maturity.
2. The income derived from the certificates shall be subject to all Federal taxes, now or here-
after imposed. The certificates shall be subject to estate, inheritance, gift or other excise taxes,
whether Federal or State, but shall be exempt from all taxation now or hereafter imposed on the
principal or interest thereof by any State, or any of the possessions of the United States, or by any
local taxing authority.
3. The certificates will be acceptable to secure deposits of public moneys. They will not be
acceptable in payment of taxes.
4. Bearer certificates with interest coupons attached will be issued in denominations of $1,000,
$5,000, $10,000, $100,000 and $1,000,000. The certificates will not be issued in registered form.
5. The certificates will be subject to the general regulations of the Treasury Department, now
or hereafter prescribed, governing United States certificates.
III. SUBSCRIPTION AND ALLOTMENT
1. Subscriptions will be received at the Federal Reserve Banks and Branches and at the Treas-
ury Department, Washington. Banking institutions generally may submit subscriptions for account
of customers, but only the Federal Reserve Banks and the Treasury Department are authorized to
act as official agencies. Others than banking institutions will not be permitted to enter subscriptions
except for their own account.
2. The Secretary of the Treasury reserves the right to reject any subscription, in whole or in
part, to allot less than the amount of certificates applied for, and to close the books as to any or all
subscriptions at any time without notice; and any action he may take in these respects shall be final.
Subject to these reservations, all subscriptions will be allotted in full. Allotment notices will be
sent out prompty upon allotment.
IV. PAYMENT
1. Payment at par for certificates allotted hereunder must be made on or before December 1,
1943, or on later allotment, and may be made only in Treasury Certificates of Indebtedness of
Series E-1943, maturing December 1, 1943, which will be accepted at par, and should accompany the
subscription.
Regraded Unclassified
V. GENERAL PROVISIONS
1. As fiscal agents of the United States, Federal Reserve Banks are authorized and requested
to receive subscriptions, to make allotments on the basis and up to the amounts indicated by the Sec-
retary of the Treasury to the Federal Reserve Banks of the respective districts, to issue allotment
notices, to receive payment for certificates allotted, to make delivery of certificates on full-paid sub-
scriptions allotted, and they may issue interim receipts pending delivery of the definitive certificates.
2. The Secretary of the Treasury may at any time, or from time to time, prescribe supplemental
or amendatory rules and regulations governing the offering, which will be communicated promptly
to the Federal Reserve Banks.
HENRY MORGENTHAU, JR.,
Secretary of the Treasury.
(Filed with the Division of the Federal Register, Nov. 23, 1943)
e. 1. GOVERNMENT PRINTING OFFICE 561225
9
TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION
CONFIDENTIAL
DATENOV. 22, 1943
TO
FROM
Mr. Haas
Secretary A Morgenthau
Subject:
The Business Situation,
Week ending November 20, 1943.
Summary
Commodity prices: In the face of substantial declines in stock
prices since the beginning of the month, commodity prices have
failed to show corresponding weakness. Featured by a rise in
wheat prices, the Dow-Jones index of commodity futures last
week rose to a new high since compilation of the index was
begun in 1933.
Wheat flour subsidy: A subsidy to wheat flour millers was
announced last week as a measure to relieve the squeeze on
millers resulting from the fixed ceilings on flour prices and
the rising prices of wheat. Hard wheat prices are approaching
parity and the OPA 18 expected to impose a price ceiling soon
at 100 percent of parity.
Heavy hog marketings: Steps were taken last week to prevent the
record-breaking spring pig crop from glutting hog markets and
further depressing prices. Official price supports were ex-
tended to all hog markets, the ration value of pork was
reduced, and the ban on farm sales of pork was lifted for
90 days.
Farm land boom: With the rise in farm land values averaging more
than 1 percent a month during the past year, the Secretary of
Agriculture warned last week that immediate curbs are necessary
to prevent the catastrophe which followed the land boom of the
first World War. He suggested that a resale capital gains tax
be instituted to check the inflation in land values.
Civilian goods: As a result of an easing in steel supplies the
Office of Civilian Requirements is projecting programs for the
production of electric irons, washing machines and refrigerators
for civilian use in 1944. The WPB has lifted all restrictions
on the use of wool for clothing, draperies and upholstery
fabrics,
Retail trade: Department store sales in the week ended November 13
rose to a new high for the year and were 14 percent above the
corresponding week in 1942. Total retail inventories (in
dollar value) rose steadily in the third quarter, but at the
end of September they were still 15 percent below year-earlier
levels.
Regraded Unclassified
10
- 2 -
Stock and commodity prices strengthen
After declining to a new recent low at mid-week, stock
prices strengthened noticeably near the end of last week, and
at the close on Saturday the Dow-Jones average of 65 stocks
was about 1 percent higher than a week earlier. Numerous
favorable year-end dividend actions, and the announcement
that $13 billions in Army appropriations probably would be
saved in the current fiscal year, were reported to be among
the factors causing prices to strengthen.
Industrial stock prices in London rallied noticeably last
week, thus reducing the net decline since the beginning of the
month to very moderate proportions, in contrast to the rather
sizable decline that has occurred in New York. (See Chart 1.)
This may be due in part to the fact that the New York market
has had to absorb some of the usual year-end tax selling,
whereas the London market has been free of this influence.
In connection with the weakness in stock prices at
New York in the first half of this month, it 1s interesting
to note that corresponding weakness failed to develop in
commodity prices, although brief sell-offs did occur in some
commodities, such as cotton. Aided by subsidy developments,
wheat prices have been strong, and largely as a result of
this factor the Dow-Jones index of commodity futures last
week rose to a new high since compilation of the index was
begun in 1933.
Basic commodity prices slightly higher
The BLS index of 28 basic commodities moved slightly higher
last week, but it continues below the peak level reached near the
end of September. (See Chart 2.) With hard wheat prices below
parity, the announcement of the wheat flour subsidy, together
with expectations of a price ceiling on all wheat at 100 per-
cent of parity, tended to buoy wheat prices, which rose 2% cents
in the week. While barley prices were fractionally higher,
fears that a price ceiling would be imposed now that the price
of barley has reached parity tended to check the advance.
Cotton prices, after declining for 6 consecutive weeks,
rose moderately last week. The rise wes attributed to the
continued heavy entries of cotton into Government loan stocks,
Congressional opposition to the subsidy program, and inflationary
implications in the prospect of a more general demand for wage
increases. In the week ended November 13, Government loans on
Regraded Unclassified
11
- 3 -
this year's cotton crop amounted to 1,523,235 bales, as
compared with 794,830 bales at the same time last year.
Lower prices for fruits, vegetables, and hoge caused
the BLS all-commodity index to decline slightly in the week
ended November 13, but it continues to move in the narrow
range of the past four months. The rise of the index during
the past year has been only 2.7 percent, The index now
stands at 102.8 percent of the 1926 average, which 1s 37.1 per-
cent above the pre-war level of August 1939.
Subsidy to wheat flour millers announced
Despite severe Congressional opposition to subsidies, a
subsidy to wheat flour millers was announced last week by
Stabilization Director Vinson. The subsidy payments will be
based on the bushels of wheat ground, and will amount to the
difference between the level of wheat prices reflected in the
wheat flour ceilings, and the market price of wheat but not
more than parity. The Defense Supplies Corporation will
administer the program, which is expected to cost around
$9 millions a month, or about to cent per loaf of bread.
This subsidy program was necessitated by the squeeze on
flour millers resulting from the fixed ceilings on flour and
the rising price of wheat. While the flour ceilings are based
on a wheat price at 89 percent of parity, wheat prices have
been rising during the past several months until they are now
only a few cents under parity. Moreover, it was impossible to
place a ceiling on wheat prices until they attained parity.
Consequently, the flour business, aside from some Government
buying, has approached a standstill in most markets. The
alternative to the subsidy was to revise flour ceilings upward
to reflect the higher wheat prices, and to permit a rise in
bread prices.
With hard wheat prices approaching parity, the OPA 1s
expected to impose a price ceiling soon at 100 percent of
parity. Such a ceiling was recently placed on soft wheat when
the price rose above parity.
Steps taken to cope with heavy hog marketings
With some hog markets beginning to be glutted, and prices
sagging under the heavy marketings of the record-breaking 74 m11-
lion spring pig crop ( see Chart 3), steps were taken last week
Regraded Unclassified
12
4
to support prices of hogs and to facilitate their marketing.
The measures taken were: (1) extension of support prices,
and plans for maintaining these prices, (2) reduction in
the ration cost of pork, (3) lifting of the ban on farm
sales of pork, (4) issuing of a daily report on hog marketing
conditions, and (5) continued deferment of farm workers
helping out in packing plants.
Official support prices were extended to all hog markets
other than Chicago, where a support price of $13.75 per hundred-
weight has already been in effect. Prior to November 29 the
support prices in the various markets will be the Chicago
price adjusted by the normal price differential. After that
date the support price in any market will be $1 per hundred-
weight below the ceilings which have already been fixed by the
OPA for the various markets.
Government to purchase surplus pork
The WFA indicated that the Government stands ready to
buy All federally-inspected pork and pork products that packers
produce in excess of the quantity needed for civilian rationing,
and at prices which will enable slaughterers to pay not less
than the support prices for the hoge they purchase for slaughter.
The WFA has asked the RFC to withhold meat subsidy payments
from slaughterers guilty of paying lower than the support price.
Government purchases have increased during the past few weeks
but they are still considerably below those of May, June, and
July of this year. (See Chart 3, lower section.)
The OPA reduced the ration point cost of pork and 100 per-
items point free, and will reduce the average point value of all
cent pork sausages by two points. This cut will make some pork
pork items by one-third. The reduction in the ration point value
is for a limited time only, and will probably be rescinded when
the heavy marketings of hogs cease.
As a means of relieving the strain on commercial packers,
the WFA lifted for 90 days (until February 17) all restrictions
on farm sales of pork and lard. Heretofore farmers have been
unable to sell more than 400 pounds of these products in one
year. Under the new arrangement it 18 expected that farmers
can supply many of the small towns direct, and thus take months. care
of some of the surplus animals during peak slaughter
Although persons who purchase meat from farmers are required
to surrender ration points for it, it is feared in some quarters of
that form sales are likely to lead to videspread violation
the rationing regulations. Moreover, the WFA only reluctantly
Regraded Unclassified
13
- 5 -
lifted the farm sale ban, since farm slaughter will result
in the waste of many valuable by-products that can be saved
at large slaughter houses.
Finally, Selective Service is reported to have agreed
not to reclassify farm help which normally moves to packing
plants to assist in slaughtering during the slack season on
farms. Many farmhands have been reluctant to change employ-
ment for fear of being drafted, while packers have been
handicapped by manpower shortages.
Farm land boom developing
The farm land boom 16 gaining such momentum that immediate
curbs are necessary to prevent the catastrophe which followed
the land boom of the first World War, Secretary of Agriculture
Wickard stated last week. Thus, the index of average value per
acre of farm real estate rose 3 percent in the four months
ended November 1, according to confidential data of the Bureau
of Agricultural Economics, and now stands 25 percent above the
pre-war level of March 1, 1939. Moreover, the average rate of
increase during the last 12 months has been over 1 percent &
month, the highest of record outside of the boom year 1919-20.
For the entire war period to date, however, the rise has been
somewhat less than during the comparable period of the first
World War. (See Chart 4.) Pacific Coast states have had the
largest increases in land value in recent months, although farm
land values in all sections have risen.
Secretary Wickard advocated the establishment of a "land
boom profits tax, or resale capital gains tax" to check the
inflation in land values. This special tax would be levied on
profits from the resale of property acquired during the national
emergency, and would decrease according to the length of time the
property was held. It 18 thought that such a curb would not
interfere with or penalize the bona fide farmer.
Other controls that have been suggested to check the rise
in farm land values are: (1) restriction of real estate credit,
(2) a heavy transfer tax, and (3) ceiling prices on land, with
permits required for purchasing.
Coal distribution regulated to safeguard supplies
After falling to the lowest level of the year during the
first week in November, soft coal production in the week ended
November 13 recovered sharply but was still about 5 percent
Regraded Unclassified
14
- 6 -
below the levels attained in the early part of October before
the work stoppages began. (See Chart 5.) Some further 1m-
provement in bituminous coal output probably occurred last
week, although actual production figures are not yet available.
As a result of the repeated work stoppages this year, cumulative
soft coal production since the beginning of 1943 has been
slightly less than in the corresponding period last year,
although the decline has been less than 1 percent.
During the past week an acute shortage of coal was
reported to exist in many communities, and in order to cope
with the situation more effectively the Solid Fuels Administration
tightened up on regulations governing distribution of supplies.
Control over the retail distribution of domestic sizes of
anthracite coal in the northeastern states was transferred from
the OPA to the Solid Fuels Administration. In addition, new
soft coal distribution regulations were issued with the
objective of diverting & larger part of production to domestic
heating purposes. This will be accomplished by cutting down on
deliveries to factories, railroads and utilities in cases where
inventories have risen above stipulated levels.
In the face of the tight supply situation in coal, some
encouragement can be derived from the continuing gradual
improvement in East Coast civilian oil supplies. The
Petroleum Administrator last week stated that there was
demands, and that the "B1g Inch" pipeline was rapidly reaching from
enough heating oil in the area to meet current rationed
capacity operation. Despite the substantial improvement the
the low point of last May, supplies are still much below week
1940-41 "normal". Thus, light fuel oil stocks in the
ended November 13 were slightly less than 60 percent of normal. normal
while gasoline supplies were less than 37 percent of
Wage drive may necessitate rise in steel prices
Due reportedly to labor troubles, shut-downs for repairs
and week were scheduled to decline fractionally to 97.8 per- the
lingering effects of the coal strike, steel operations
last of capacity, which 1s the lowest point touched since
cent week in August. However, some improvement in operations
second likely during the current week. Moreover, the slight
loss not prevent the industry from breaking previous the in
seems in production which occurred near the end of last records month
61d October, with total steel output for the month exceeding
previous record high by more than 100,000 tons.
Regraded Unclassified
15
- I 1
Production problems are apparently of less concern to
the steel industry at present than the prospect of further
increases in operating costs, which may necessitate an up-
ward revision of steel prices. The new wage agreement in
the coal mining industry has increased production costs,
and in this connection it 16 reported that Secretary Ickes
has protested to Stabilization Director Vinson over the in-
adequacy of coal price increases proposed by OPA. Moreover,
coal operators have threatened to hold up further disbursements
for mine operations unless assurance is given that the OPA
will grant an adequate increase in coal prices retroactive to
November 1. Along with the impending rise in coal prices, some
of the smaller steel producers are confronted with a further
increase in costs as a result of a recent OPA authorization of
a moderate rise in iron ore prices.
In addition, steel companies soon will be faced with
demands for increased wages, as the United Steel Workers Union
has already announced that it will formally open a drive for
higher wages around December 1. Trade circles contend that
higher wage rates superimposed upon other recent increases
in operating costs will necessitate an upward revision in
steel price ceilings.
Civilian goods production outlook brightens
Although steel requirements of the various claimant
agencies for the first quarter of 1944 are still in excess of
supply, trade reports indicate a rather definite easing in the
general steel supply situation. Concrete evidence of this
trend appeared during the past week when the Office of Civilian
Requirements revealed that programs for the production of
electric irons, washing machines and electric refrigerators
for civilian use were under way as a result of the easing in
steel supplies. A program for the production of 2 million
electric irons is expected to be the first to get under way,
as dealer stocks of irons are non-existent and the OCR places
irons at the head of the list of electric appliances most
needed by civilians. In addition to the anticipated partial
resumption of washing machine and refrigerator production later for.
in the year, aluminum kitchen ware is soon to be available
civilians while output of portable lamps 18 slated for an
increase.
The outlook for increased civilian supplies of soft goods
1s clouded by expected needs in connection with European
Regraded Unclassified
16
- 8 -
rehabilitation. However, an encouraging development in this
connection occurred near the end of last week when the WPB
lifted all restrictions on the use of wool for clothing,
draperies and upholstery fabrics.
Retail inventories increased in September quarter
Despite the heavy volume of sales and the restrictions
imposed on civilian goods production, total retail business
inventories (in dollar value) rose steadily in the third
quarter of this year, and at the end of the period stood at
the highest level since last December. Merchants have been
expecting earlier than usual Christmas shopping, and this
factor together with the relative availability of nondurable
goods resulted in the expansion of inventories during the
period. The value of total retail inventories at the end
of each quarter since the war-time peak W&B reached in the
second quarter of 1942 has fluctuated 8.8 follows:
June 30, 1942
$7,496,000,000
September 30, 1942
7,350,000,000
December 31, 1942
6,384,000,000
March 31, 1943
6,106,000,000
June 30, 1943
5,829,000,000
September 30, 1943
6,248,000,000
At recent levels retail inventories on the average represented
about one and one-half months' sales whereas in June 1942
inventories were equivalent to about two and one-half months'
sales.
Department store sales at new peak
Stimulated by earlier than usual Christmas shopping,
department store sales showed a further rise to a new high
for the year in the week ended November 13. The gain over
last year's levels widened to 14 percent, from 10 percent in
the week ended November 6. All districts shared in the year-
to-year gain, although the increase varied from only 1 per-
cent in the Boston district to 44 percent in the Dallas district.
Regraded Unclassified
INDUSTRIAL STOCK PRICES IN U.S. AND U.K.
AUGUST 1936 . 100
1941
1942
1943
PERCENT
PERCENT
Weekly (Average of Daily)
115
115
110
110
105
105
100
100
95
95
90
90
U.K. 56 Industrial
85
Stocks
85
80
80
75
75
U.S. 30 Industrial
70
Stocks (Dow-Jones)
70
65
65
60
60
55
55
Chart 1
50
OCT.
DEC.
FEB.
APR.
JUNE
AUG.
OCT.
DEC.
FEB.
50
APR.
JUNE
AUG.
OCT.
DEC.
1941
1942
1943
the of the Sentary of the Insury
- # - - -
Regraded Unclassified
MOVEMENT OF BASIC COMMODITY PRICES
1942
1943
1944
PERCENT
PERCENT
AUGUST 1939-100
220
220
210
210
200
200
9 Uncontrolled Commodities*
190
190
180
28 Commodities
180
1'
170
170
19 Controlled Commodities
160
1.60
OCT.
DEC.
FEB
APR.
JUNE
AUG.
OCT.
DEC.
FEB.
1942
1943
1944
PERCENTAGE CHANGE DEC. 6, 1941 TO NOV.12, AND NOV.19, 1943
PERCENT
PERCENT
19 Controlled
9 Uncontrolles
Commodities
Commodities
Barley 72,7%
+70
+70
Flaxseed 63.8 I
+ 60
+60
+50
+50
Com 44.6%
+40
+40
Wheat 398 x
Regin 3942
Hoge 358 I
18
+30
Lard 280X
+30
She/loc 123%
Lead IIJ X
Sugar 6.9%
Cottonseed Oil 6.3 I
+20
Print Cloth 4.9 I
+20
Butter 188 N
Burlep 26%
Staers 184%
Zine 32
Catton NJ I
0% Change
+10
Nideo, Salt,
+10
Tin, Rubber,
Coffee, Copper,
4a. Screptom,
o
a
Coose -8%
Wool Tops-1.2 %
Tollow 4.12
-10
-10
Dec. 6
Nov. 12
Nov. 19
Des. 6
Nex It
1941
1943
1943
1941
1943
1943
20 Controlled . Uncontrolled provious to Jane 26, 1942
Office of the Secretary of the Treasury
- d - - -
P-244-A
Regraded Unclas
HOG PRICES COMPARED WITH HOG SLAUGHTER
AND U.S.D.A. PURCHASES
1941
1942
1943
1944
DEG
FEB.
APR.
JUNE
AUG.
OCT.
DEG.
FEB.
APR.
JUNE
AUG.
OCT.
DEG
FEB
DOLLARS
DOLLARS
Per 100 Lbs.
Per 100 Lbs.
16
16
14
14
Price of Live Hogs*
12
12
10
10
THOUSANDS
MILLIONS
OF HOGS
OF LBS.
(Sloughter)
(U.S.D.A.
Purchases)
1400
1200
240
Sloughter
27 Centers
1000
200
800
160
600
120
400
U.S.D.A. Purchases
80
200
40
o
o
DEC.
FEB.
APR.
JUNE
AUG.
OCT.
DEG.
FEB
APR
JUNE
AUG
OCT.
DEG.
FEB.
1941
1942
1943
1944
. Chicago, good to choice, 180-200 pounds
Chart 3
Source: Department of Agriculture
Office of the Secretary of the Treasury
. and Statistics
P-248-A
Regraded Unclassified
FARM REAL ESTATE VALUES IN TWO WORLD WARS
World War I. 1914=100; World War II. 1939=100
PERCENT
PERCENT
165
165
1920
160
160
155
155
1921
150
150
1919
145
145
140
140
1922
135
135
1918
130
130
World War I
125
125
120
120
1917
1943
115
115
World War II
110
110
1916
1942
105
105
1915
1941
1914
100
100
1940
1939
95
Chart "
95
J
S
N
J
J
5
N
J
J
S
N
J
E
J
$
N
J
M
J
S
N
J
M
J
S
N
J
E
M
J
$
J
E
J
5
N
J
J
S
N
J
Office of the Secretary of the Truesury
Regraded Unclassified
Division and -
21
Chart 5
BITUMINOUS COAL PRODUCTION
SHORT TONS
MILLIONS
2.4
&
2.0
42
'41
1.6
1.2
39
.8
.4
Bit. Coal Comm.
o
III
JAN.
MAR.
MAY
JULY
SEPT.
NOV.
Office of the Secretary of the Treasury
C-484
Division of Research and Statistics
Regraded Unclassified
22
25
November 22, 1943.
Dear Anna:
It was fine to hear that you had just had a long
letter from John, and I hope that everything is going
well with him.
I an delighted to send you, at your request, a copy
of the letter which Colonel Hume wrote me in connection
with the German evacuation of Naples. The name is as
you remember it, and it is given in full at the end of
his letter.
Elinor has had & severe cold, but nothing like a
return of her difficulties of last spring and summer.
I suppose it will be quite awhile before her strength
is built up again, but she is trying to take good care
of herself, and 190 hope that she will soon be entirely
well again. She joins no in sending love and best wishes
to you.
Sincerely,
(Signed) Henry
Mrs. John Boettiger,
Associate Editor,
Seattle Post-Intelligencer,
Seattle, Washington.
Enclosure. copy of lts from Cal. Hume
air mail
Regraded Unclassified
23
20 October 1943
Hon. Henry Morgenthau,
Secretary of the Treasury,
Care of Lieut. General Mark W. Clark, U.B.A.,
Headquarters, Fifth Army.
NAPLES.
My dear Mr. Secretary:
In compliance with your request I give you herewith & brief
report of acts of German cruelty and wanton destruction committed in
Naples, chiefly during the three weeks before our capture of the city.
This period is called "The Reign of Terror" by Neapolitans. I am,
of course, not giving any instances of damage to the city or to indi-
viduale which took place 8.9 a result of acts of war (bombings. etc.).
The things that I list were unnecessary from any military point of view.
OFFENSES AGAINST THE CITY
AS A WHOLE
1. Water Supply: When the Fifth Army reached Naples we found
that there was an almost total failure of the water supply. People were
carrying water in pails, jugs. bottles and every type of container.
There was a small trickle of water from some of the hydrants but many
persons standing in line were unable to receive enough to quench thirst.
Naples had been famous for an abundant supply of pure water. The Germans
had blown up the main aqueduct in seven places and all of the reservoirs
save one had been drained. By chance an Italian had saved one reservoir
by cutting the fuse after it had been lighted by departing Germans.
Allied Military Government took charge of the remaining reservoirs and
by rationing made the supply go as far as possible. The hardship on
the people of Naples, particularly those unable to 50 for water was
great and there was much suffering, until the supply was rationed and
until we established water distribution points for water distilled from
the bay. The Germans were well aware that there was ample facility for
our bringing in water for the troops, as was done in the desert campaign,
so that this destruction of the city supply was an act of cruelty against
civilians, young and old. The enemy likewise destroyed the pumping plants,
thereby making it impossible to raise the water, had any been available,
to the higher parts of the city, The water mains in many parts of Naples
were deliberately cut.
Regraded Unclassified
24
- 2 -
2. Sewage System: The pumping facilities of the Bewage disposal
system of Naples were destroyed. Thus, even had there been enough water
to enable sewers to function, they would have been unable to do so because
much of the Neanolitan sewage disposal depends not on gravity but on
a series of pumps. The city is built on volcanic rock so that, even had
there been space available for them, it was all but impracticable to dig
latrines. The danger of epidemics of intestinal diseases, such as
typhoid fever and dysentery, was obviously very great particularly at
this season of the year.
3. Electric Light and Power Systems: Naples was in darkness when
we took over. The Germane had destroyed both the generators of the
current and likewise the transformers. The Italian metropolis depends
largely on hydro-electric power not only for lighting, but for the
water and sewage pumps, the mille for grinding wheat, the newspaper
presses, the heating of buildings, cooking, and indeed practically all
power machines. This was one of the most serious conditions we had to
meet. By hard work by our engineers the current is now restored, in
part, though we have had to follow B. certain priority in alloting it
at first.
4. Transportation System: The street car system was wholly out of
commission both because the electric current had been cut off (see above)
and because the Germans carried away or destroyed the greater part of the
rolling stock. Buses also were taken away. A large number of them were
found to the north of the city where the enemy, unable to carry them
further, had burned them. There are of course no taxicabs other than
& few old wrecks, and only a few horse-drawn vehicles in the city.
People who are not physically strong enough to walk from one locality
to another are practically prisoners. This has seriously affected the
earning capacity of many. The Germans carried away every automobile,
both passenger and truck, that they could find. In some instances they
took only the tires and destroyed or abandoned the bodies of the care.
Ambulances and fire-fighting vehicles were not spared.
54 Communication Systems: The telegraph lines were put out of
commission. The main telephone exchange was blown up. Fortunately the
Germans overlooked two emall subsidiary exchanges. By splicing the
lines we were able to give the military authorities a limited number of
lines within ten days. However business firms and private families are
still without telephones. The Post Office was looted and destroyed
(see below).
Regraded Unclassified
25
- 3 -
6. Demolition of Yotels: The group of magnificent hotels along the
Via Partenope, facing Vesuvius, used to be one of the outstanding groups
of such institutions in the world. Such names as the Excelsior, Vesuvio,
Santa Lucia, Royal, etc;, are known to travelers everywhere. These
buildings, without exception, were blown up and fire set to what remained.
They cannot be repaired. The only first-class hotel left was the Park Hotel
(Parker's Hotel), which was mined (see below).
7. Blocking of Tunnels: There are a number of tunnels in Naples
built to give ready access from one quarter to another at a saving of much
hill climbing. These were blown up.
8. Bombing of Public Buildings: Besides the bombing of various public
buildings for their immediate destruction, the Germans showed their usual
cunning in setting time bombs so as to explode after our arrival, thereby
both destroying property and causing human death and suffering. A few
instances will illustrate. On October 7, at 2:30 P.M., a violent explosion,
caused by a time bomb hidden in the corner of the Post Office, destroyed the
end of that building and tore an enormous hole in the street. There was
considerable loss of life, chiefly civilians. In all 30 people were killed,
84 were severely injured (hospitalized), and 25 were slightly injured.
I was in my office across the street when the explosion occurred. I went
to the scene at once and helped give first aid to the wounded. Many were
women and children. In the Via Partenope a time bomb in the street exploded
on October 3rd, at about dusk. Fortunately nobody was hurt though a few
minutes before a group of workmen had passed over the spot. On October 11th,
at 8:55 A.M., a time bomb set in the Italian Artillery Barracks, occupied by
our 307th and 36th Engineers, exploded. Some 24 of our men were killed and
47 wounded, This cannot be justified as an act against our armed forces,
for it was only by chance that we were using the barracks for soldiers.
It had been previously used by Italian families. Every effort has been
made to locate unexploded bombs and with much success. A time bomb and
about 1500 pounds of INT were removed from the basement of the Park Hotel on
October 2nd, before explosion occurred. On October 16th, an unexploded time
bomb and 1600 pounds of TNT were removed from the building housing a part
of the 82nd Airborne Division. Ordnance officers estimated that the bomb
had about 3 days and 17 hours more to run, on the timing device, before
explosion.
9. Opening of Prisons: Before their departure, the Germans released
all prisoners in the jails and prisons of Naples, of which there are about
a dozen, one of them the largest in Italy. While we have been able to re-
arrest many of the criminals, this act of the Germans has been productive
of danger and loss of morale to the civil population.
Regraded Unclassified
26
- 4
10. Demolition of Flour Mills: Naples, like most Italian cities,
grinds its wheat a little at a time, rather than converting a whole crop
to flour at once. Thus flour mills are an essential feature of the city's
oconomic and welfare system. All of the large mills were wrecked by the
Germans.
11. Destruction of the University of Naples and of its Famous
Libraries: The University of Naplos is one of the oldest and most famous in
existence. The library of the Royal Society of Naples, one of the great
learned sociotics of the world, was housed therein. It was put to the
torch on 12 September, a little more than a fortnight before we took the
city. Wo are collecting affidavits of the Rector and many faculty members
and students, They agree that at about 3:00 P.M., a party of some 600
Germans entered the University and announced that they were about to burn
it, in retaliation for the fighting of Neapolitans, including students,
against their troops, Cans of gasoline were brought in and the walls,
furniture and books covered with it, and the fire was started, The fire-
men arrived soon thereafter but the officer in charge refused to allow them
to enter, Two Carabinieri (military police) who tried to stop the destruction
were taken to the front entrance and shot. Many of the nearby houses were
robbed, not only those of professors but of others. Several witnesses agree
that the notorious Col. Scholl, Commander of German troops garrisoned in
Naples, arrived in person when the work was finished and read a proclamation
in German and Italian announcing that the university had been wrecked as
a punishment to Naples, When I first visited the ruined buildings the ashes
of the Iibrary of the Royal Society were still warm and the pool of blood
on the front steps, where the shooting of the Carabinieri was reported to
have occurred, was still evident,
12. Robbing of Hospitals: Directors of the several hospitals of
Naples agree that the Germans before departure, carried off all of the
hospital equipment and supplies that they could find. Some of these
institutions had practically no medicines or dressings when we arrived.
Even establishments of the Italian Red Cross were not spared.
OFFENSES AGAINST INDIVIDUALS
In a report of this kind, prepared on a few hours notice, it is not
possible to give a detailed account of offenses against individuals. That
must wait until our final report on German misdeeds in Naples is completed.
The following incidents are taken at random from a mass of documentary
evidence thus far gathered.
Regraded Unclassified
27
- 5 -
There is general agreement that Germans collectively and individually
robbed shops, homes and even people in the streets. This varied all the
way from ordinary highwayman's technique to burglary. Many individuals,
not excepting those in high position, were carried off as hostages. Among
such hostages were the Bishop of Cava dei Terreni and the Abbot of Badia
at Corpo di Cava. Many people were beaten to make them disclose the where-
abouts of supposed valuables. Women as well as men were subjected to such
treatment. There were many murders, some of a sadistic nature, with muti-
lation of dead bodies, particularly those of women. One deposition says
that the eye witness saw a man buried in a grave he had been forced to dig
himself, being bayonetted before being thrown in. Often the populace were
told to help themselves after the Germans had begun looting. Many of the
more intelligent witnesses state that the killing of Italian civilians was
not merely acts of individual German soldiers, but often in response to
direct orders of their officers, all as a part of a campaign to terrorize
the people. "Booby traps" were placed not only in places where they might
be set off by our troops, but where children and other civilians would
find them. Many such people have been mutilated or killed. There was
much wanton destruction of property, frequently associated with physical
harm to people. Furniture not desired was smashed or burned, live-stock
killed, supplies of food destroyed or fouled 50 that it could not be used.
Particularly cruel were the measures against those Italians between 18 and
35 who failed to respond to the German proclemation of September 22nd,
requiring them to report for forced labor with the German Army.
I wish that there were time to give you more details and to complete
the report of the first two weeks of the vork of the Allied ilitary
Government of this great city. I should like to give you further partic-
ulars beyond what I could tell you in a few minutes last night. I think
that I may say, however, that we have achieved our dual goal. First that
of keeping the burdens of governing this war torn city from the shoulders
of our military Commander, whose entire attention is needed for the leading
of a great army. Secondly, we have been able to keep the city running in
something like a normal fashion, despite the handicaps imposed by war and
by the German studied policy of destruction.
May I wish you a safe journey home and once more thank you for your
interest in what we are doing.
Respectfully yours,
(s) Edgar Erskine Hume
EDGAR ERSKINE HUME,
Colonel, General Staff Corps,
United States Army,
Chief of Military Government.
Regraded Unclassified
2 28
Seaffle Poste Intelligencer
ESTABLISHED 1845
ANNA ROOSEVELT BOETTIGER
November 16, 1943
ASSOCIATE EDITOR
45 'I.
Dear Henry:
I got a wonderful long letter from John
today in which he asked me to ask you to send
me a copy of the letter his commanding officer
gave you describing conditions in Naples. I
gather that his immediate commanding officer
is Colonel Hume. Is this correct? I would
certainly appreciate it if you could let me
read the letter.
Love to you and Elinor.
Affectionately,
= Ama
Honorable Henry Morgenthau, Jr.,
Secretary of the Treasury,
Washington, D. C.
P.S.- h le Her from Ina says Elmor
Phope she'll soon The over this trubte lung of trumble.
Jeeh miserable apain. I'm so very scipe sorry & do
Jeems to me there's in suph in other world
today without hairing personal from a bleo added!
Regraded Unclassified
29
TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION
As
DATE
TO
Secretary Morgenthau
November 22, 1943
FROM
Mr. O'Connell
This morning's Washington Post carries an
editorial on the census the Treasury Department
is taking of American investments in foreign
countries.
The editorial, a copy of which is attached,
is approving in tone. It recites some of the
advantages of such a census that the Department
has pointed out from time to time, and goes on
to suggest that "the wartime census of over-
seas holdings will be continued and kept up to
date when the war is over."
good
Attachment
Regraded Unclassified
30
WASHINGTON POST
November 22, 1943
Overseas Investments
Since last June the Treasury has been
acquiring information in regard to the in-
vestments of Americans and alien residents
in foreign countries. The returns tabulated
to date show holdings of approximately three
billion dollars, out the final total will prob-
ably amount to between 10 and 12 billions.
Of the investments so far reported 40 per
cent are Canadian, while assets held in Ger-
many rank second in value.
Obviously a large proportion of the securi-
ties and tangible possessions representing
claims on Axis-dominated countries will
eventually have to be written off as total
losses. Indeed, some of these holdings had
little or no value before war was declared.
Nevertheless, the assembled data will be
very valuable in future negotiations looking
toward restitution of property and the es-
tablishment of claims for losses suffered.
Furthermore, there are numerous ways in
which the data may prove useful to the
Gbvernment while the war is in progress.
The military and occupational authorities
may, for example, want to get in touch with
individuals who have knowledge of condi-
tions in occupied territories. In carrying
on discussions with neutral countries in re-
gard to wartime business, financial and eco-
nomie matters, it is also highly important
to know to what extent American investors
would be affected by any agreements that
might be made. The Army, too, might turn
American-owned property in occupied coun-
tries to good use in producing war materials,
buying war supplies, or developing sources
of raw material.
When the war is over, problems of ex-
change control, questions as to the amount
of private loans that can safely be made to
foreign countries, and related matters can
be handled much more intelligently if we
have advance knowledge of the volume and
value of amounts already due us on Invest-
ment account. We have always been handi-
capped by lack of precise knowledge of the
extent and character of foreign investments.
Hence, it is to be hoped that the wartime
census of overseas hoidings will be continued
and kept up to date when the war is over.
31
November 22, 1943.
Dear Nr. Payeer:
In the absence of the Secretary, I an
acknovledging year letter of November 18,
which encloses a copy of the fourth monthly
report of the progress under the Third Seviet
Protocol. I shall be glad to bring this to
the Secretary's attention and know that be
will particularly note the figures in regard
to the progress más during October, and dur-
ing the fear proceding months.
Sincerely yours,
Signed) H. S. Klotz
1. s. Nots,
Private Secretary.
Mr. 1. A. Peyser,
Director, Foreign Division,
Var Production Beard,
Vashingtes, D, e.
GEF/dbs
Regraded Unclassified
32
WAR PRODUCTION BOARD
WASHINGTON, D. C.
IN REPLY REFER TO
November 18, 1943
Mr. Henry Morgenthau
Room 280
Treasury Department
Washington, D. C.
Dear Mr. Morgenthau:
I am enclosing a copy of the fourth
monthly report of the progress under the Third
Soviet Protocol.
I wish to call your attention to the
tabulation showing the progress made during October
and during the four months ending October 31 towards
the fulfillment of the Third Protocol materials and
equipment production programs.
Sincerely yours,
E. A. Peyser
Director, Foreign Division
attachment
OPVICTORY
BUY
UNITED
STATES
WAR
BONDS
AND
STAMPS
Regraded Unclassified
33
SECRET
WAR PRODUCTION BOARD
WASHINGTON, D. C.
November 16, 1943
IN REPLY REFER TO:
My dear Mr. President:
Attached hereto is a tabulation showing the progress made
during October, and during the four months ending October 31, towards
fulfilment of Third Protocol materials and equipment production pro-
grame for the Union of Soviet Socialist Republics.
A noteworthy recent development has been increased, or ao-
celerated, shipments of certain critical raw materials. To meet re-
quirements resulting from expansion of Soviet alloy steel production,
appreciable quantities of ferrotungsten, ferrovanadium, and ferro-
molybdenum, which previously were not included in the Russian Aid Pro-
gram, have been authorised. For the same purpose, arrangements have
been made for advance shipment of 1120 short tons of metallic nickel.
Because nickel is still in short supply in the United States and
Canada, this shipment is being made from United Kingdom stocks. In
the case of aluminum, information has been received that production
of planes by the USSR can be increased in direct proportion to en
increase in supplies of aluminum from the United States. It has been
decided, therefore, to maintain through the first quarter of 1944
aluminum shipments at the rate of 6,720 short tone per month from
the United States and Canada jointly, despite the very large over-
shipmente authorised for the third and fourth quarters. 1943. By
the end of March, more than 75,000 short tons of fabricated and in-
got aluminum are scheduled to have been made available under the
Third Protocol. This compares with a United States-Canadian commit-
ment for that period of 40,320 S.T. In addition, 2,240 short tons
of secondary aluminum have been supplied from United Kingdom stocks.
With reference to industrial equipment, the War Production
Board is currently in process of attempting to schedule orders
authorised, but not yet placed under the Third Protocol. As pointed
out previously, in the case of a number of industrial equipment cate-
gories, the USSR delayed several months before presenting necessary
requisitions. This has resulted in difficulties in arranging for
completion of the orders in question before June 30, 1944. In some
instances, notably pumps and cranes, it seems that these difficulties
will be so great that it will not be possible to schedule production
of the full quantities offered under the Protocol. A portion of
PORVICTORY
several Third Protocol offers will consequently have to be cancelled
BUY
or taken up with substitute equipment.
UNITED
STATES
WAR
BONDS
ARB
STAMPS
Regraded Unclassified
34
The War Production Board is also currently engaged in sur-
veying production possibilities in regard to equipment programs which
the USSR has requested for completion after June 30, 1944, 1.e. dur-
ing the Fourth Protocol period. It is felt that advance planning in
the case of these programs is very important in that it makes possible
working the programs into production lines, and thus enables their
fulfilment without undue interference with urgent domestic programs.
Such advance planning also insures that there will be no interruption
in the flow of equipment to the USSR during the first part of the next
Protocol period.
The stocks situation continues to improve. On the basis of
Treasury and Ordnance data, stocks of both materials and industrial
equipment held in warehouses and depots on USSR account declined dur-
ing the past month. Particularly noteworthy is the fact that ware-
house stocks of steel dropped from 271,000 tone at the end of Septem-
ber to 241,000 tons at the end of October. I am attaching a brief
table showing in greater detail the stocks situation as of October 31.
Respectfully yours,
15/
Donald M. Nelson
The President
The White House
Washington, D. 0.
Attachments
SECRET
I
Explaines
Regraded Unclassified
35
SECRET
STOCKS HELD IN TREASURY AND ORDNANCE WAREHOUSES
AND DEPOTS ON USSR ACCOUNT
(Short Tons)
Item
As of June 30
As of Sept.30
As of Oct.31
I. Materials
Aluminum
274
377
601
Nickel
47
X
X
Molybdenum
0
o
744
Copper base alloys
17,588
9,490
8,599
Magnesium
154
154
o
Zinc
o
o
o
Copper Products
3,482
3,089
3,071
Ferro-Alloys
4,362
4,599
2,754
Steel
408,325
271,775
241,142
Copper Wire and Cable
43,323
58,241
58,767
Paper Products
2,471
3,439
2,910
Wire Cloth
81
107
71
Other Materials
6,522
6,032
4,488
Total Materials
(Excluding Chemicale)
486,629
357,263
323,147
II. Industrial Equipment
Machine Tools and Forging
26,960
58,581
55,686
e
Presses & Hammers
Power Equipment
9,773
18,804
20,107
Industrial Boilers
6,309
12,072
14,590
Misc. Electrical Equip.
4,183
6,558
7,331
Electric Furnaces
2,013
5,388
4,336
011 Refinery Equipment
12,259
1,798
4,348
Tire Manufacturing Plant
2,244
888
1,553
Aluminum Mill
331
442
950
Various Indust. Machinery,
28,784
55,445
38,194
n.e.s.
Bearings
99
333
457
Graphite Electrodes & Related
861
1,137
1,015
Products
2-32379
Regraded Unclassified
36
- 2 -
Item
As of June 30
As of Sept. 30
As of Oct.31
II. Industrial Equipment (Cont'd)
Abrasives
972
488
590
Instruments & Laboratory Equip.
701
1,799
869
Misc. (Incl. Treas. Procured
734
1,117
2,146
Machine Tools)
Total Indust. Equip.
96,223
164,850
152,172
Tires and Tubes
4,575
725
2,470
Grand Total Excl. Chemicals
587,427
522,838
477,789
X - Less than 1 S.T.
a/ Excludes materials and equipment in transit or at seaboard.
In transit
s/
Stocks as of June 20, 1943
₫/
Stocks as of Sept. 20, 1943
e/
Stocks as of Oct. 20, 1943
SECRET
2-33379
Regraded Unclassified
STATUS OF MATERIALS AND EQUIPMENT PRODUCTION PROGRAMS - THE THIRD RUSSIAN PROTOCOL AS OF SOVEMBER 1, 1943
SECRET
(OCTORER DELIVERY DATA SUBJECT TO ANVISION)
Pro-
Item
Dails
3rd
Hade Available
Made Available
Percent of
Ratio of
Balance to be
Comments
toral
Protocol
as Mill is U.S.A.
at Mill to U.S.A.
3rd Prot.
Actual
Produced
Item
Production
Des. 1, 1943 -
July 1, 1943 -
Progrem
Deliveries to
as of Nov. 1, 1943
No.
Program
Oct. 31, 1943
Det. 31, 1943
Completed
Prot.Sched.
to Complete
- of
(Prot,Sched,=100)
3rd Protecol
Nov. 1, 1963
Prod. Program
NON-7ERROUS METAIS
Alustom shipments to date consist
of 806 S.Y. rod; Was S.T. hard nb
3
Alualma (Inger and Pubricated)
5,7.
35.760
9.520
29,660
63
252
6,080
Ing: 8,08 S.T. hard sheet; 14,762
S.T. primary lagot; and 5,600 S.T.
secondary Ingot.
la
Nickal
A
Plg Fickel
S.T.
3,600
300
1,200
33
100
2,400
A total of 600 8.7. of sickal la
monel scrap valid offered, but -
3
Fickel is Nonel Scrap
1.7.
-
o
50
-
-
(50 Brown)
nept for 50 S.P. for experimen-
tal purposes, the U.S.S.B. has
art taken advantage of the offer.
Contained sickel deliveries to
date consist of 492 S.T. in steal:
c
Fickal in Steel and Other
S.T.
2,400
177
803
33
100
1,597
146 8.7. in sichrose wire and
Non-Parrous Products
strip: 145 8.9. is cupro-sickel
strip: and 20 1.7. is other sickel
products,
5
S.T.
4,000
512
1,517
38
115
2,483
Electrolytic copper figures refer
to copper contained in various -
terials requiring copper which are
being supplied the U.S.S.B. De-
6
Depper, Electrolytic
S.T.
(121,400)
(9,352)
(28,907)
(24)
(73)
(92,493)
liveries to date include 17,860
I.f. contained in copper base al-
loys: 3,685 8.9. contained is cop-
per goods and tabes; 95 8.7. coo-
tained la binetal; and 7,267 5.9.
contained in vire mill products.
SECRET
I I I
3
Regraded Unclassified
SECRET
2
I I I
m
Time
Unit
3rd
Made Available
Made Available
Parcent of
Batto of
balance to be
Commate
total
Protocol
at Mill in U.S.A.
at Mill is U.S.A.
3rd Prot.
Actual
Produced
Item
Production
Oct. 1, 1943 -
July 1, 1943 .
Program
Deliveries to
as of Nov. 1, 1943
No.
Program
Det. 31. 1943
Det. 31, 1943
Completed
Prot.Sched.
To Complete
as of
(Prot.Sched,=100)
3rd Protecol
Nov. 1, 1943
Prod. Program
METALS (Continued)
October production of repper hass
alleys etteeded the monthly rate
called for by the Protocol. Pro-
duction at about the October rate
7
Copper Inco Alleys
S.9.
107,580
9,634
25,863
24
73
41,657
is scheduled to continue until
the deficit socumlated Buring
the July-September pariod because
of the stocks situation is elimi-
nated,
6
Superies
S.T.
4,032
336
1,344
33
100
2,688
9
Star
1.7.
13,440
1,120
Mikeo
33
100
8,960
11
Copper Goods and Tubes
I.P.
15,000
1,1kg
3,676
25
76
11,324
The Third Protecol provides that
up to 269 S.?. of special -
ferrous vires my be ordered,
Until the present, however, saly
73 S.T. have been requisitioned.
The Third Protocol production
schedule is therefore limited to
R
Special Alloy
8.7.
73
15
42
56
176
31
this amount, Delivaries to date
Vires
include a S.f. of impiro allay
virs; .9 1.1. of constantes vira;
2 1.7. of testalse virs; 11.1
I.?. of slund and dross] vires
12,4 1.9. of monel, error et
baryllins bronse vire; 4,5 S.T.
of enselled mangania wire;
12.5 8.9. of anlybdama vire, and
.2 1.9. of round mangania vire.
30
Bichrome Wire
S.T.
538
14
183
34
103
355
The production program above is
for the first half of the Third
Protocal period: the ratio of se-
94
Cobalt
S.T.
80.5
40.5
80.5
100
152
o
toal deliveries to the Protocol
schedule has, therefore, been ad-
justed to take this late account.
The October shipment completed the
full Protecol offering.
Total Non-Parrous Metals
(Reluding Item 6,
1.9.
186,443.5
22,810.5
68,918.5
37
112
117,525
Copper. Electrolytic)
SECRET
3
-
I
graded
Unclassified
SECRET
-
I
-
Pro-
Item
Unit
3rd
Made Available
Made Available
Percent of
Ratio of
Balance to be
Comments
tocol
Protocol
at Mill in U.S.A.
at Mill in U.S.A.
3rd Prot,
Actual
Produced
Item
Production
Oct. 1, 1943 -
July 1, 1943 -
Program
Deliveries to
as of Nov, 1, 1943
No.
Program
Det. 31. 1943
Oct. 31, 1943
Completed
Prot.Sched,
To Complete
as of
(Prot,Sched,=100)
3rd Protocol
Nov. 1, 1943
Prod. Program
FERRO-ALLOTS
The U.S. has offered to supply 76%
S.P. of ferrosilism and 448 s.r.
of ferrochrose per month, but by
agreement this offer 1s to become
12
Ferrosilicon
8.9.
-
o
o
-
-
-
effective only when stocks held on
U.S.S.R. account are reduced to two
months' requirements. At present,
stocks total more than five months?
requirements and no liftings are
13
Ferrochrose
S.T.
-
o
o
-
-
-
currently taking place. In couse-
quance, BP allocation - made 1a
October and seas is planned for
the imediate future. Novever, at
the request of the U.S.S.R., supply
of 1,120 S.T. of ferrosolybdenna,
224 S.T. of ferrovanation, and 540
Total Ferro-Alloys
S.T.
-
o
o
-
#
.
5.7. of ferrotungsten has been
authorised as substitutions for
shipments of ferrosilicon and
ferrochrose.
4
ALLOT STEEL
16
Polished Drill Roda
3
High Speed
1.9.
96
9
42
lala
133
$
0
Other Alloy
S.T.
5
5
a
56
170
20
17
High Speed Tool Steel
S.T.
4,480
698
2,479
55
167
2,001
18
Tool Steel
1
Alloy X12
S.T.
672
73
292
43
130
380
C
Alloy X12%
S.T.
672
85
296
F
133
374
D
Other Alloys
S.T.
4,850
511
2,232
2,618
The revision is the Third Protocol
alloy production program nada -
19
Cold Finished here
S.T.
11,200
1,493
4,270
38
115
6,930
censury by changes in Seviet steel
requirements has been completed.
The DEV program 1a - 1s shown is
20
1.1. Alloy Bare and Billets
S.T.
67,267
6,945
21,363
32
97
45,904
column one.
23
Stainless Steel
1-3
Sheets and Strip
S.P.
3,007
523
1,361
45
136
1,6%
c
Bare
5.9.
756
95
212
25
65
5%
25
Steel Vire
A
Ball Vire
1.7.
1,344
145
762
57
173
582
3
Alloy 232
S.?.
1,344
$
346
%
79
998
c
Other Alley
5,7,
0
o
191
-
(191 Excess)
SECRET
3
- Main -
Regraded Unclassified
SECRET
I
- 4
1
Pro-
Item
Unit
3rd
Hade Available
Mnde Available
Percent of
Ratio of
Balance to be
Comments
tocol
Protocol
at Mill in U.S.A.
at Mill is U.S.A.
3rd Prot.
Actual
Produced
Item
Production
Oct. 1, 1943 -
July 1, 1943 -
Program
Deliveries to
as of Nov. 1, 1943
No.
Program
Oct. 31, 1943
Oct. 31, 1943
Completed
Prot.Sched.
To Complete
as of
(Prot,Sched,=100)
3rd Protocol
Nov. 1, 1943
Prod. Program
-
ALLOT STEEL (Continued)
27
Steel Alley Tubee
A
18% Cr. - 85 31.
S.T.
99%
39
391
39
118
603
3
-65 Chrone
S.T.
8,625
996
3,236
38
115
5,389
0-1
Carbon .5% Moly., Pine Sixes
S.T.
o
o
9
-
-
(9 Excess)
,
H.R. Ball Bearing Tubee
S.T.
5,376
668
1,381
26
79
3.995
26
Stainless Steel Wire
S.T.
1,747
138
641
37
112
1,106
See preceding page for comments,
29
Special Alloy Vire
S.T.
784
112
465
59
179
319
Total Alloy Steel
S.T.
113,259
12,606
39,996
35
106
73,263
CARBON STEEL
101-8 fails, Accessories and Other
S.T.
-
20,464
83,600
-
-
-
Railway Material
-
10
Coyour Clad Strip (Nimetal)
S.T.
-
o
o
-
-
.
The breakdown by shapes of the
16A
Plain Carbon feel Steel and
S.T.
-
732
2,848
-
-
-
Third Protocol production pro-
& 18A
Drill Red
(TM for carbos steel is being
adjusted from quarter to quar-
ter in accordance with change
190
Plais Carbon Pullet Core
S.T.
-
2,198
8,485
-
-
.
ing Seviet needs. The over-all
program realize 385.397 s.f.
less 40,000 S.T. of rails be
24
Timplate
S.T.
-
4,048
14,162
-
-
-
ing supplied by Canada on U.S.
account,
Other Carbon Steel
S.T.
-
3.712
18,607
-
-
-
Total Carbon Steel
S.T.
345.397
31,154
127.703
37
112
217,694
CHEMICALS
A total of 12,000 S.T. - of-
fored, but the offer vas con-
ditional upon stocks being -
duesd to a reasonable level.
Stocks have continued excess-
36
Phenol
8.7.
1,796
o
1,796
100
303
0
Ive and the offer la consider-
ed inoperative except insefar
as shipments have been
against requisitions carried
over from the Second Protocol
pariod.
SECRET
Regraded Unclassified
SECRET
- 5
I
I
My
him
M
Pro-
Item
Unit
3rd
Made Available
Made Available
Percent of
Ratio of
Balance to be
Comments
tocol
Protocol
at Mill in U.S.A.
at Mill in U.S.A.
3rd Prot.
Actual
Produced
Item
Production
Det. 1, 1943 -
July 1, 1943 -
Program
Deliveries to
as of Nov. 1, 1943
No.
Program
Oct. 31, 1943
Oct. 31, 1943
Completed
Prot.Sched.
To Complete
as of
(Prot.Sched,*100)
3rd Protocol
Nov. 1. 1943
Prod. Program
CHEMICALS (Continued)
A total of 3,360 S.T. vas offered,
but the offer vas conditional upon
stocks being reduced to a reason-
able level, Stocks have continued
38
Bibylane Glycal
S.P.
275
o
275
100
303
o
excessive and the offer is com-
sidered inoperative except tase-
far as shipments have been nade
against requisitions carried over
from the Second Protocol period.
A. total of 6,720 S.T. vas offered,
bet the offer vas conditional upon
stocks being reduced to a reason-
by
Methanel
S.T.
-
0
o
-
-
-
able level. Stocks have continu-
ed excessive and, the offer is -
sidered incperative.
A total of 6,720 S.T. vas offered,
bet the offer vas conditional upon
46
stocks being refund to a reason-
Urotropine
S.P.
-
o
o
-
-
able level, Stocks have continu-
ed excessive and the offer is coo-
sidared inoperative.
6141 Glycerine
S.T.
6,720
5,332
7.189
107
32%
}
the October shipment - made from
(469 Excess)
the U.K. on U.S. account.
61A3 Censtic Soda
1.9.
40,320
2,879
16,016
No
121
24,304
38A Bibyl Alcohol
S.T.
107,520
3,265
45,859
43
130
61,661
The production program has been
adjusted to take into account
the failure of Sevies representa-
tives to requisition acetone for
delivery during the first four
months of the Third Protocol
period, Except for the 657 1.9.
6145 Acetose
I.T.
5,137
o
657
13
39
4,480
delivered is July against as old
requisition, the obligation to
supply 2,240 S.T. between July 1
and October 31 is considered -
celled. During the reminder of
the Protocol period production is
scheduled to average 560 I.T. per
1
SECRET
£
egraded Unclassified
- 6
SECRET - - Istra
Tro-
Item
Unit
3rd
Made Avgilable
Made Available
Percent of
Ratio of
Balance to be
Comments
tocol
Protocol
at Mill in U.S.A.
at Mill in U.S.A.
3rd Prot.
Actual
Produced
Item
Production
Oct, 1, 1943 -
July 1, 1943 -
Program
Deliveries to
as of Nov. 1, 1943
No.
Program
Oct. 31, 1943
Oct. 31, 1943
Completed
Prot.Sched.
to Complete
as of
(Prot.Sched.=100)
3rd Protocol
Nov. 1, 1943
Prod. Program
CERVICALS (Continued)
61A
Other Chemicals
S.T.
12,096
813
1,690
14
No
10,406
Total Chestcals
S.P.
173,864
12,209
73,482
42
127
100,382
MARITE AND SUBMARINE CABLE
1
Marine Cable
IX,
1,200
14
167
14
be
1,033
2
Subserine Cable
D.
600
0
119
20
61
481
Total Marine and Dobearine
IX.
1,500
14
286
16
lus
1,514
Cable
POVER AND RELATED CANLE
7%
Invulated Cable and Vire
8,9.
-
1,132
6,728
-
-
-
(Copour Content)
Because of excessive stocks, the
Third Protocol production schedule
The
here Cable and Wire
s.r.
-
453
462
-
-
-
of power and related cable has
(Copper Content)
begs reduced from 41,516 S.T.
copper content to 21,000 S.T.
Total Pover and Related
S.P.
21,000
1,585
7,190
34
103
13,810
Cable
is
WISCELLANEOUS MATERIALS ITEMS
so
Sheet Fibor
S.T.
1,000
266
986
99
300
14
the date no requisitions have
83
Parchment Paper
S.T.
1,680
0
o
o
o
1,680
been submitted by Seviet repre-
sentatives.
Because of dalays in the nb-
mission of requisitions by Seviet
83A
Condenser Paper
S.T.
146
o
o
o
o
146
representative, production of
condensor paper cannot be sched-
aled to begin before Jamary 1,
1544.
638
Cigarette Paper
1.9.
336
to date as requisitions have
o
o
o
o
336
been submitted by Series repry-
sentatives,
35
Other Materiale and Their
# 5,000,000
-
.
-
-
-
Products
SECRET
Islan
tegraded Unclassified
SECRET
- - - Interne Md
Pro-
liem
Datt
3rd
Made Available
Made Available
Percent of
Ratio of
Relance to be
Comments
tocal
Protocol
at Mill in U.S.A.
at Mill in U.S.A.
3rd Prot.
Actual
Produced
Item
Production
Oct. 1, 1943 -
July 1, 1943 -
Program
Deliveries to
as of Nov. 1, 1943
No.
Program
Det. n. 1943
Det. 31, 1943
Completed
Prot.Sched.
To Complete
as of
(Prot.Sched.*100)
3rd Protocol
Nov. 1, 1943
Prod. Progres
INDUSTRIAL AND RELATED EQUIPMENT
154
Commited Carbide Tips and
#
3,000,000
3,267
746,744
10
76
2,253,256
or the several industrial equipment
Blacks
programs included is the Third Pro-
tocol Schedule, all production en
rengesents have been made in the
153
faall Outting Tools
$
15,000,000
862,821
3,438,838
23
70
11,561,162
case of Machine Tools, Forging Press-
" and Numero, Recemators, Mining
Equipment, Welding Equipment, Bear-
150
Measuring Tools
$
3,000,000
68,546
405,223
14
42
2,594,777
ings. Power Generating Equipment,
Block Signal Equipment, and Auxill-
any Industrial Equipment. In the
67B
Abrasive Products
$
4,000,000
572,370
1,796,902
45
136
2,203,098
case of Comented Carbide Tips and
Blanks, Small Outting Tools, Neasur-
Ing Tools, Control Instruments and
Testing Nachines, Electric Pursaces,
62
Machine Tools
$ 120,000,000
8,990.750
45,127,650
38
115
74,872,350
Compressors, Pumps, and Cranse, coo-
siderable progress has recently been
más in rounding out programs, but
63
Electric Purnaces
$
12,000,000
422.557
1,870,209
16
w
10,129,791
substantial portions of the new or
dars offered under the Third Proto-
cel still sensin to be placed. Be-
a
Holling Mille and Desipent
$ 16,000,000
129,248
541,417
3
9
15,458,583
cause of this delay in the submise-
Son of requisitions, 11 appeare that
in the chose of at least two of these
9a
Presses, Forges, Samers and
$ 30,000,000
1,897,800
8,130,300
27
62
21,869,700
Items - pumps and cranse - it will
not be possible to produce before
Related Squipment
June 30. 1944 the entire quantity
7
procised under the Third Protocol.
64c
Wire Draving Equipment
$
2,000,000
23.757
23.757
1
1,976,243
A part of the totals offered will
3
consequently probably have to be
cancelled or taken up with substi-
tate equipment. In the case of
65
Tarious Industrial Agaipment
$ 120,000,000
15,201,793
51,336,404
ky
130
68,663.536
Belling Mill Equipment, Wire Draw-
ing Equipment, Equipment for Blast,
Hearth, and Coke Purnaces, and Valves
66
Control Inst. and Testing
$
1,700,000
37.997
410,103
24
73
1,269,897
and Pittlage, Soriet representatives
Machines
have not as yes submitted programs
for inclusion is the Third Protocol
schedule. Since less than two-thirds
69-70
Anti-Priction Bearings
I
15,000,000
677.999
3,251,943
22
67
11,748,057
of the Third Protocol period reasins
for the production of these Items,
it can be assumed that full Third
Protocol offers casnot be fulfilled
111
Block Signal System
I
14,591,500
69,068
258,175
2
6
14,333,325
by June 30. and that a part of the
totals originally promised will have
to be cancelled or used for substi-
140
Power Equipment
#
75,000,000
6,314,783
23,949,611
32
97
51,050,349
tate equipment, It is planned to
include in the December report .
comprehensive statement of the for
Total Industrial and Related
# 431,291,500
35,312.756
141,287.336
33
100
290,004,164
tailed status of the several Into-
Bruipment
trial equipment program.
SECRET
- - Mr - M
Regraded Unclassified
SECRET
- - Mober Exploses M
Pro-
Item
Unit
3rd
Made Available
tocol
Made Available
Percent of
- Ratio of
Protocol
at Mill in U.S.A.
Balance to be
Item
AS Mill is U.S.A.
Comments
3rd Prot.
Actual
Production
Oct. 1, 1943 -
Produced
No.
July 1, 1943 -
Program
Deliveries to
Program
Oct. 31, 1943
as of Nov. 1, 1943
Oct, 11, 1943
Completed
Prot.Sched,
To Complete
as of
(Prot.Sched,4100)
3rd Protocol
Nov. 1, 1943
Prod. Program
MISCELLAWEOUS EQUIPMENT ITEMS
67A
Abrasive Grain
S.T.
4,000
189
1,663
42
127
2,337
68A
Oraphite Electrodes
S.T.
5.757
442
1,857
32
97
3,900
6m
Other Graphite Goods
S.T.
1,691
118
439
26
79
1,252
680
Granhite Powder
S.T.
1,120
241
697
62
188
423
76
Tires, Tubes, Other Rubber
S.T.
40,320
3,500
Products (ltaber Content)
12,905
32
97
27,415
82
Metallic Cloth and Screen
$ 1,000,000
14,847
164,010
16
&
835,990
The U.S. has offered to supply -
to $25,000,000 of leorgency Maly-
nest provided the Seviet Govern-
glu
ment certifies the need for parti-
Reergency Equipment
$ 25,000,000
-
cular Items totaling this anount,
and provided specifications are
acceptable to the V.P.I. So for
few requisitions have been placed
under this category, Because of
lead factors, no deliveries took
place against these is October,
Var Production Board
Foreign Division
Review and Analysis Branch
November 15, 1943
SECRET
- Policiente Rober - M
Regraded Unclassified
45
BRITISH air COMMISSION
1785 MASSACHUSETTS AVENUE
WASHINGTON, D. C.
TELEPHONE HOBART 9000
PLEASE QUOTE
REFERENCE NO
With the compliments of british Air Commission
who enclose Statements Nos. 111 and 112 - Air-
creft Despetched -- for the weeks ended November 9th
and November 16th respectively.
+he Honourable Henry Morgenthau, Jr.
Secretary of the Treasury
WASHINGTON, D.C.
November 22, 1943.
Regraded Unclassified
46
MOST SECRET
STATEMENT N0,111
Aircraft Despatched from the United States
Week Ended November 9, 1943
ASSEMBLY
BY
BY
FLIGHT DELIVERED
TIPE
DESTINATION
POINT
SEA
AIR
FOR USE IN CANAD
BOXING
Octaline IV
U.K.
U.K.
2
CONSOLIDATED
Liborator III
M.E.
E.B.
4
Liberator III
India
India
3
Liberator GR V
U.K.
U.K.
2
Liborator B VI
India
India
2
Liberator GR VI
U.K.
U.K.
3
DOUGLAS
Dakota III
U.K.
U.K.
1
kota III
India
India
2
Dakota III
U.E.
U.E.
1
GLEAR MARTIN
Beltimore V
U.E.
B.E.
5
Marauder II
U.E.
M.E.
1
Eariner GR I
U.K.
U.K.
2
VESA
Ventura GR V
S. Africa
S. Africa
1
Ventura GR V
II. East
E. East
4
No American
Nitchell II
U.X.
U.K.
20
Harvard
New Zealand
Wellington
1
Horverd
S. Africa
Capetown
6
listeng
U.K.
U.K.
13
RIRGHILD
Fairchild C 61
U.S.
Alexandria
15
Farichild C 61
N.W. Africa
Casablanca
9
GRUNDAN
Tarpon
U.K.
U.K.
4
Tarpon
S. Africa
Capetown
10
STINSON
lient
U.K.
U.X.
14
Regraded Unclassified
47
COST SECRET
STATEMENT NO.111
cont'd
ASSEMBLY
BY
BY
FLIGHT DELIVERED
TYPE
DESTINATION
POINT
SEA
AIR
FOR USE IN CANADA
CURTISS
Kittyhawk
Australia
Sydney
20
Mohawk
India
Bombay
8
NOORDUYN
Harverd
India
Bombay
5
VULTEE
Vengeance
Australia
Sydney
1
Total:
106
53
o
NOTE:
In Statement No. 109 of November 1st please note that 22 Baltimore V to M.E. should rest
21 Baltimore V and 1 Mitchell II to M.E.
Movements Division
British Air Commission
November 13, 1943.
mmh
Regraded Unclassified
48
MOST SECRET
STATEMENT NO.112
Aircraft Despatched from the United States
Wook Ended November 16th, 1943
ASSEMBLY
BY
BY
FLIGHT DELIVERED
DESTINATION
POINT
SEA
AIR
FOR USE IN CANADA
TIPE
CONSOLIDATED
Liberator III
M.E.
M.E.
1
Liberator B VI
U.K.
U.K.
1
Liberator B VI
India
India
2
DOUGLAS
Dakota III
N.E.
M.E.
2
Dakota III
India
India
4
GLENN MARTIN
Baltimore V
M.E.
M.E.
16
"ariner GR I
U.K.
U.K.
2
NORTH AMERICAN
Mitchell II
U.K.
U.K.
1
Harvard
8. Africa
Capetown
18
Harvard
India
Karachi
10
Mustang
U.K.
U.K.
18
VEGA
Ventura GR V
U.E.
U.K.
1
Ventura GR V
M.E.
M.E.
12
Ventura GR V
S. Africa
S. Africa
1
FAIRCHILD
Cornell
8. Rhodesia
Capetown
22
VULTEE
Vengeance
Australia
Sydney
3
CURTISS
:
Kittykawk
Australia
Sydney
2
Kittyhawk
N.W. Africa
Casablanca
50
"RUMMAN
Jpon
U.K.
U.K.
6
Tarpon
India
Mombasa
8
Tarpon
Ceylon
Colombo
6
Martlet
Ceylon
Colombo
14
$
STINSON
Reliant
U.K.
U.K.
6
Movements Division
British Air Commission
Total
153
43
0
November 19, 1943.
Regraded Unclassified
DEPARTMENT OF STATE
WASHINGTON
November 22. 1943
My dear Mr. Secretary:
I am in receipt of a communication from the
American Ambassador at Montevideo stating that your
message of condolence to President Amezaga on the
occasion of the death of the Uruguayan Finance Minister,
Ricardo Cosio, was delivered through the Uruguayan
Foreign Office.
In reply the Uruguayan Minister of Foreign Affairs
has requested Ambassador Dawson to transmit through
the Department an expression of President Amezaga's
appreciation of your thoughtful attention.
Sincerely yours,
The Honorable
Henry Morgenthau, Jr.,
Secretary of the Treasury.
U
Regraded Unclassified
50
TELEGRAM SENT
PLAIN
November 2, 1943
ANEMEASSY,
MONTEVIDEO.
538, Second
FROM SECRETARY MORGENTHAU FOR PRESIDENT
JUAN JOSE AMEZAGA OF URUGUAY.
QUOTE I have just been informed of the
untimely death of Finance Minister Ricardo Cosi:
and wish to EXPRESS to you and to your official
family my feeling of sympathy and condolence.
I am sensible of the loss suffered by the United
States as well as by the Republic of Uruguay.
UNQUOTE.
STETTINIUS
(Acting)
(FL)
FD: L:
Regraded Unclassified
51
NOT N BE 826-TRANSMITTED
J.D. SECRET
COPY Id
BRITISM JOST SECRE.
OPTEL No. 382
TREASURY DEPARTMENT
12
1943 NOV 23 PM 2
SECRETARY OF TREASURY
OFFICE
Information received up to 10 A-M. 22nd llovembo
1. JAVAN
Une of 4.2. Frightes escortin, homevacy convoy est (3) Bay of SISCAY
AV. " 000-1 The attack an - T-boat 20th/21st.
To medium rize. incredint ship. in thi, c-nvoy nave since been hit durin_
- ,lider bumb attach. 442 It 11/10 MAS Lost (miniser to E-pout) sunk its German
occorn off -nd arrived to un Allied poet on 19th,
- dialTARY
Itely To noon 21st. Continued heavy rein hindored operation. on extraise
right vioiont encountery between pati In more of 8th
Division prevented crumin, river y FLORE Jth/21st.
Burns 16th. noout IN J <ponose crossed che SAD IN into YU4RAN.
AAR OPERATIONS
Italy 19th. 9J 1,41 4.1 Fighter numbers intackna dommunications 120
termsport in and behind the nattle are,
19th/20th. dom.nitoes subsched the religy centros at PABLIA nd.
Damaging 5 uning.
and rych. 2c fighter boubern netacked tran port it
Stuil, METHOVIC and FIEE (South cst of
Regraded Unclassified
52
November 23, 1943
9:30 a.m.
TAXES
Present: Mr. Bell
Mr. Sullivan
Mr. Blough
Mr. White
Mr. Gaston
Mr. Haas
Mr. Smith
Mr. Tickton
Mr. Lindow
Mr. Surrey
Mr. Tietjens
Mrs. Klotz
H.M.JR: You know about Paul arranging to talk about
the tax bill. I asked him to arrange it Friday for a
group for Wednesday.
MR. BLOUGH: He told me yesterday that you asked to
have a group meet, but he didn't say anything about when
it was going to meet, and he suggested I get in touch
with you to find out.
H.M.JR: I asked him definitely please to have it.
I wasn't coming. I talked with him either Friday or
Saturday and asked him to do the thing.
MR. BLOUGH: I didn't check with his office this
morning, but yesterday I had the impression that he didn't
have a definite hour.
H.M.JR: I talked to him either Friday or Saturday
and asked him to do this thing.
MRS. KLOTZ: Maybe his secretary knows something
about it.
Regraded Unclassified
53
- 2 -
H.M.JR: Ask her to step in, will you, please? (Klotz)
I'm terribly disappointed at the staff's having done
something for me on my statement on the tax bill--I mean,
the stuff that I got is just terrible. Now this thing,
"Answers to Criticisms," I don't know who wrote it, but
my God, I'd be ashamed of it! It is the darndest thing
I ever saw. There are no answers. I don't know who
wrote it. The result is I am going to have to burn
myself out this week. You fellows are going to have to
work every night and everything else. It just isn't an
answer. I mean, there are four pages of nothing.
MR. BLOUGH: Did you talk to Mr. Smith?
MR. SMITH: Good morning, Roy!
H.M.JR: This isn't Smith, this is Henry Morgenthau, Jr.
I haven't even talked to Smith, 80 don't rope him in for
my remarks.
MR. BLOUGH: I beg your pardon; I didn't mean that.
I thought Smith and I had this thing fairly well talked
over.
MR. SMITH: I got your memos. Louis Shere brought
them down, but they are still sketchy.
MR. BLOUGH: I was under the impression you didn't
want to get started until today.
H.M.JR: I asked a couple of weeks ago for answers
to criticism, and I got the memo. (Refers to Memorandum
of November 8, "A Summary of Points in Rebuttal")
MR. WHITE: Is this to be a speech or 8. memo?
H.M.JR: A statement before the Tax Committee,
answering them on this business.
MR. WHITE: Well, I don't think this document was
intended for that. (Reads memorandum) It begins, "A
Summary of Points in Rebuttal."
H.M.JR: That is what I am talking about.
Regraded Unclassified
54
- 3 -
MR. WHITE: I gather from the form that it wasn't
intended -
H.M.JR: Just as a rebuttal. But as a rebuttal, I
say it is lousy--so that nobody can misunderstand me--
because the result is you fellows are just going to have
to work day and night, now, the rest of the week.
Get me Miss Chauncey in here, will you, please?
(Klotz)
Now, I called up Bell yesterday and Haas last night.
The first thing is to have an answer to this statement
about the War Department saving thirteen billion dollars,
and everybody can quit. Now, Haas got interested in it
yesterday, as I understand. I asked Bell, and I under-
stand that this question of inflationary gap is Haas'
responsibility.
MR. HAAS: We have been doing something on it.
H.M.JR: Now the statement has been out for 8. week
or ten days. It is too bad you didn't get the idea ten
days ago, but you got it yesterday. I give you credit
for that, but it has been kicking around town. Nobody
has answered it. I don't blame anybody. What I am
saying this morning - -
Good morning. (Miss Chauncey enters room) I'd like
Mr. Paul's memorandum - the rebuttal. (Miss Chauncey
leaves room with the Secretary's briefcase)
I don't blame anybody but me. Nobody has been
talking to me. Now, George, do you want me to call up
Mr. Patterson and find out who in the War Department can
give us this stuff?
MR. HAAS: I think the suggestion made to me over
the phone last night to write Stimson a letter - -
H.M.JR: It has taken weeks. I have got to have
this, George. I mean, this thing has been out for ten
days.
MR. HAAS: I'm afraid they'll just give us the run-
Regraded Unclassified
55
- 4 -
around. Stacy May said that he is making contact, and
I called up the Budget, Colm, about it. He is coming
over Wednesday. The thing is very confused in his mind.
I don't know--I'll try, anyway, but I'm afraid you won't
have something that you can use publicly.
(Miss Chauncey re-enters room and hands document to
the Secretary)
MR. BELL: It may be that my boys have something
on it, because the morning it came out in the paper, I
started and asked about it. I asked Stacy May if he had
anything on it. He said, "No, I'll have something Monday
for you.' He said he got the same impression that I
did, that it is a bookkeeping transaction.
I called the Budget, and they didn't have anything
definite on it. I have my boys starting to see if it
will affect expenditures in '44 and changing the financing
estimates accordingly. My impression is that it will
not change them one dollar.
H.M.JR: You did start it?
MR. BELL: Yes, the day it was in the paper.
H.M.JR: Do you want to get that? (Mr. Bell leaves
room)
(Over inter-phone) Get me the Under Secretary of
War, Mr. Patterson, please.
Does this come out of your shop? (Questions Mr. Blough
concerning undated rough draft of letter to the Secretary
of War, copy attached.)
MR. BLOUGH: Yes.
MR. HAAS: It seems to me, Mr. Secretary, if you
had this information from somebody in authority you
would have the answer.
H.M.JR: That is all right, if he insists on a
letter, but I haven't got time. And the thing I want,
Herbert, is this: I want the answer to the question of
Regraded Unclassified
56
November 23, 1943
9:39 a.m.
HMJr:
Hello.
Operator:
Mr. Patterson.
Robert
Patterson: Hello.
HMJr:
Hello. Bob?
P:
Henry.
HMJr:
Good morning. I need a little help from you.
P:
Yeah.
HMJr:
Sometime in the last ten days somebody in the
War Department said you were going to turn back
to the Treasury $13 billion.
P:
Uh
HMJr:
Now, could I just explain what I need?
P:
Yeah.
HMJr:
I've got to appear Monday on the Hill in connection
with the tax bill and, of course, since the -- that
statement has been accredited to the Army, if they
say, "Well, there's no danger and the inflationary
gap 18-- does reduce -- has been reduced" -- and all
the rest of that tripe. Now
P:
We never -- we never said we were returning it.
What we said, I believe, was this - I was up there.
HMJr:
Yeah.
P:
We said, "We are placing -- I think it came to
$13 billion, in a reserve which we will release
to the services of the War Department only on
permission and clearance from the Bureau of the
Budget."
HMJr:
Well, the point
P:
So that it is funds appropriated to us that we
will not use except on approval of the Bureau
of the Budget. Now, I think that's what we did.
Regraded Unclassified
57
- 2 -
HMJr:
Well, that 18 -- that helps, but he -- has the
Secretary of War or the General Staff got a
statistical section that could help us....
P:
Yes.
HMJr:
prepare an answer that we could get out
Friday?
P:
Yes.
HMJr:
I mean -- are there two separate statistical
sections, one for the Secretary of War and one
for the General Staff?
P:
No. The General Staff have a Budget Office
under General Richards.
HMJr:
Yes.
P:
Now, the Army Service Forces have most of the
fiscal matters. That Budget Office is a small
outfit.
HMJr:
Yeah.
P:
That's under General Carter. You know him.
HMJr:
Yeah. Well, now
P:
Who do you want to get in touch with there?
HMJr:
I want to get in touch with whoever has the
most intelligent fellow, who's got the most
authority. That's what I want.
P:
I think I'll send you both of them. Then you
are sure to have the right one. Uh -- who do
they get in touch with?
HMJr:
Well, I think -- well ,the man here who's handling
it is -- is Dan Bell.
P:
Bell? I'll have them get in touch with Bell
today.
HMJr:
Today?
P:
Yes, sir.
Regraded Unclassified
58
- 3 -
HMJr:
That is Carter?
P:
And Richards.
HMJr:
And Richards.
P:
I think Richards is the man but I'll get Richards
to call Bell up right away.
HMJr:
And what I may need is -- I may need when I get
through -- is a statement over the signature of
the Secretary of War.
P:
Yep.
HMJr:
See?
P:
Yep.
HMJr:
Because this thing, you see -- well, you've seen
the papers -- the use they've made of it.
P:
Yep.
HMJr:
It's just floored us.
P:
Yep.
HMJr:
Now, the Navy isn't doing anything along these
lines, are they?
P:
I understood that they were being pressed to and
were doing it, but -- uh -- haven't done it yet.
HMJr:
Well, that would be Jim over there? Jim....
P:
Jim Forrestal, I'd say.
HMJr:
Yeah.
P:
Yeah.
HMJr:
Well, you will tell General Carter and General
Richards to contact Bell?
P:
I will, right away.
HMJr:
And -- but I'm looking forward to getting a
statement out over the signature of the Secretary
of War.
Regraded Unclassified
59
- 4 -
P:
Yep.
HMJr:
Thank you 80 much.
P:
All right, Henry.
Regraded Unclassified
60
- 5 -
inflationary gap no longer being & danger. I want it
answered in the paper by Saturday morning, so that the
country can be prepared, and say, "Why didn't somebody
tell us this?" And 50 that I don't have to take it
myself, Monday. I can't handle it all.
But my thought was, if we could get this stuff--have
a press conference. I'll call up Fred Vinson and ask
him whether he wants to do it, 80 he can't--. If he
thinks it's his private baby, okay, he can have it. But
if he doesn't, we can have it in the Treasury and have
it in the paper Saturday morning.
(The Secretary held a telephone conversation with
the Under Secretary of War, Mr. Patterson)
(To Mr. Bell) He says this, that they never said
what the paper said they did; that they would simply put
in reserve thirteen billion dollars which they would
only use on the okay of the Bureau of the Budget.
MR. GASTON: That is what the New York Times story
said, precisely.
H.M.JR: Now, what I asked for was who was the man.
I asked, "Has the Secretary of War a separate office in
the General Staff?" He said, "That is General Richards."
I said, "I want the most intelligent man with the most
influence in the War Department. He said, "I don't
know; I'll send both." He asked whom to see. I said,
"Bell." George wanted you to have it, 30 you go ahead.
(To Mr. Blough) I wish you had come back with some
carnation pink cheeks, instead of looking the way you do!
MR. BLOUGH: There's only one trouble with me--I
haven't had any breakfast. That is all right. The train
was crowded. I had just gone out when you called me.
Don't worry about me.
H.M.JR: What do you eat for breakfast? Just coffee
and toast? Would that help?
MR. BLOUGH: Please don't bother.
H.M.JR: I do, because I want to jump on you! (Laughter)
Regraded Unclassified
61
- 6 -
(Secretary orders breakfast for Mr. Blough)
MR. HAAS: Now I'm sure you don't want any breakfast!
MR. GASTON: He needs ham and eggs and hot cakes, now!
MR. SULLIVAN: The condemned ate a hearty breakfast!
MR. BLOUGH: Go ahead and jump; I'll take anything
you can give me.
H.M.JR: Well, Dan, now let me get hold of Forrestal.
(The Secretary places call for Mr. Forrestal)
MR. BELL: He has five million in the picture.
MR. GASTON: I think we ought to have somebody from
the Budget in here when the Army man is in.
MR. WHITE: That is a very strange step. Don't
they ever spend money that isn't approved by the Budget
Bureau? And what do they mean by turning over this and
saying they won't spend it unless approved?
MR. BELL: The Budget Bureau has a regulation out--
and I might say I'm responsible for it--requiring the
Departments to place large sums of money in reserve which
they can't get released without prior approval of the
Budget. They can't obligate it. There is a lot of this
money, and it has been appropriated in just such a reserve.
MR. WHITE: Is that something that is done every year?
How much did they set aside last year?
MR. BELL: I don't know, but the last year that I
was in the Budget we saved millions of dollars by putting
it away in reserve and releasing it as and when emergency
came along.
MR. WHITE: Do they spend most of what they put in?
MR. BELL: This eleven billion dollars has been
informally approved by the Bureau of the Budget to go in
reserve, and there is B two billion dollar additional
item under discussion, which makes the thirteen billion
dollars. It affects the Air Corps and the pay of the
Regraded Unclassified
62
- 7 -
Army, the Signal Corps, the Medical Department, and the
Ordnance.
(The Secretary held a telephone conversation with
Charles F. Detmar, Jr., Office of the Secretary of the
Navy)
We also discussed with the Bureau of the Budget as
to what effect this might have on the expenditure program,
and Mr. Colm and Mr. Loeffler said that they had under
consideration revising their estimate of expenditures,
but that the figures that we had been using in our
financing program were just about what they were thinking.
They thought the war expenditures would run between
ninety and ninety-five billion. We have been using
ninety-two and a half.
This thing can't be so far off as far as the War
Department is concerned, because when they came into
the fiscal year they had fifty-four billion dollars of
unliquidated obligations; that is, the contract obli-
gations on the books on June 30 which had not been paid
for. And they had unobligated balances of fifteen
billion brought over, and they had new appropriations of
fifty-nine. So the thirteen billion comes out of the
new appropriation, in effect.
H.M.JR: Look, Dan, this is down your county. All
I can do is to be the spark plug and get everybody around
here excited. But if Gaston, Smith, and anybody else
agree with me or don't agree with me--if this thing could
be gotten out a couple of days in advance--which I
testify--. Get the country pregared for the thing,
see, and get the arguments in the paper. It isn't to
take the heat off me; it is a question of education.
MR. SULLIVAN: Preparing ground for you.
H.M.JR: That is right, and this is the kind of
thing. It isn't me; after all, the Bureau of the Budget
should take it.
MR. GASTON: Yes, that is what I was going to say.
It should be a quick new summation of the Bureau of the
Budget.
Regraded Unclassified
63
November 23, 1943
9:45 a.m.
HMJr:
Hello.
Operator:
Mr. Forrestal is out of the city until late this
evening.
HMJr:
Well, give me....
Operator:
His legal assistant 18 acting.
HMJr:
Who?
Operator:
His legal assistant, Mr. Detmar - D-e-t-m-a-r.
HMJr:
That's all right.
Operator:
I'll get him on.
HMJr:
Hello.
Operator:
Mr. Detmar.
HMJr:
Hello.
Operator:
Go ahead.
HMJr:
Mr. Detmar.
Charles F.
Detmar:
Good morning, sir.
HMJr:
Good morning. Morgenthau speaking.
D:
Yes, sir.
HMJr:
Look, Mr. Detmar, I want some help from the
Navy.
D:
All right, sir.
HMJr:
I'm getting it from the Army and if you'd be as
good as the Army, I'll be satisfied. (Laughs)
A little competition.
D:
All right.
HMJr:
As you know, the Army was quoted in the papers
as saying they were going to save $13 billion
Regraded Unclassified
64
- 2 -
D:
Right.
HMJr:
....with the result that the Congress said, "Well,
we just don't need a tax bill." And I've got to
go up on the Hill Monday and tell them why we do.
Now, if the Navy, through whoever your fiscal
officer 1s, 18 planning any cuts -- uh -- I'd like
to know who that person 1s. The Army is giving us
General Carter and General Richardson.
D:
Uh huh.
HMJr:
And whoever the corresponding people are in the
Navy, if they could work with Mr. Bell today, it
would be very helpful so that -- what I'm trying
to get is a statement from both the Secretary of
War and Navy, over their signatures, just exactly
what they are going to do.
D:
What the cuts are going to be?
HMJr:
Yeah.
D:
All right. I'll tell you -- I think Admiral Horn
would be the man.
HMJr:
He would?
D:
Let me check with him and I'll have whoever is
the proper person get in touch with
HMJr:
Danny Bell.
D:
Dan Bell?
HMJr:
Yeah. Looking forward to a statement over the
signature of the Secretary of the Navy which I
want, and this thing's got to be cleaned up by
Friday noon.
D:
Uh huh.
HMJr:
See?
D:
Yeah.
HMJr:
Can I count on you?
D:
You surely can.
65
- 3 -
HMJr:
Thank you 80 much.
D:
I'll do it right away.
HMJr:
Thank you.
D:
All right, sir.
66
- 8 -
MR. WHITE: I think it would be better coming from
the Bureau of the Budget. If it came from you it would
appear you were trying to justify your taxes; whereas, if
it came from them it is a matter of clearing up facts.
I think one of the most effective ways of demonstrating
the absurdity of that is showing how each of the previous
year's sums have been set aside and spent--if they had
done that in previous years. I gather from Dan that they
have.
MR. GASTON: There is practically never any appro-
priation fully spent in the year for which it is appro-
priated. There are always unexpended balances going
over from fiscal year to fiscal year.
MR. BELL: Where they made their mistake, I think,
is not revising their expenditure estimates in August
when they put out the summation. They thought at that
time they were not going to meet the program, but they
didn't want to revise the expenditure program, because
they thought it might have 8. bad psychological effect
on the country at large.
H.M.JR: Dan, I have got to go to this funeral,
and I want you to talk to Harold Smith before I go to
the funeral, because I want this in the paper Saturday
morning, see?
MR. BELL: Yes.
H.M.JR: To prepare the country. And somebody is
going to have to work like hell to get this thing started.
I want to talk on a few of the tax items. Would you
(Beil) mind going to your room and getting it started,
and then come back?
MR. BELL: I think you had better eliminate me from
the funeral, and I'll go on with this.
H.M.JR: The man died! All right.
MR. BELL: He won't be listening!
H.M.JR: Who else goes before Banking and Currency
here?
Regraded Unclassified
67
- 9 -
MR. WHITE: I have been, but he doesn't know me from
a hole in the wall. (Laughter)
H.M.JR: What a pal!
MR. WHITE: They just had him appointed Chairman of
that Committee on Friday.
MR. SULLIVAN: He was made Chairman of this Liaison
Committee Saturday morning. He was sick the night before.
H.M.JR: Come on, John, you keep me company.
MR. BELL: How about Delano, if he is around? He
was supposed to take this week off and rest, but he might
be a good one to go.
H.M.JR: (Over inter-phone) See if Mr. Preston
Delano is in his office, one; and, two, if he is going
to go to the funeral of Mr. Steagall, he might go with me.
Let me know, will you?
MR. FITZGERALD: (Over inter-phone) Yes, sir. He
was down at his farm yesterday when I told him. I don't
know whether he is back again.
H.M.JR: All right.
MR. BELL: He is away for the week, but I think he
might come in for that. (Mr. Bell leaves the room)
H.M.JR: Now, the thing that I am griping about is
this. If I am correct, they have been making a lot of
talks, approved by Mr. Gaston, about post war inflation.
I think the figure he is using is sixty billion dollars,
isn't it? It is piling up; some people use a hundred
million dollars.
MR. BLOUGH: Yes, in that neighborhood.
H.M.JR: On page 3 of this memo (Refers to a "Summary
of Points in Rebuttal") it reads: "4. Would the lowering
of the exemptions and the repeal of the earned income
credit unjustly burden the low-income groups?
Moreover, the Congress may, if it wishes, make a large
Regraded Unclassified
68
- 10 -
part of the tax on the low-income groups refundable
after the war."
If he is so worried about the present amount of
money in the hands of the people, and then you add to it
the amount which is going to be refundable, he is just
piling it on. You are just adding to that particular
worry.
MR. BLOUGH: Well, there are two things to be said
about that. In the first place, we don't need to answer
every point. For instance, if you feel that you would
rather forget about the refundable tax which didn't
catch on, anyway, in the House, we'd just drop that out
of the picture.
H.M.JR: No.
MR. BLOUGH: But in the second place it does fit
into this post-war problem to this extent, that you can
determine when the money would be paid back after the
war, and see that it did not get paid back at a time
when it would add fuel to the fire.
H.M.JR: There are two things: one is that point,
and two, I want to raise the question whether we want to
do the refundable tax which didn't catch on, anyway.
I am honest on this.
MR. BLOUGH: It is not a good memo. I agree to
that.
H.M.JR: Then I'll stop picking. The other thing is
that number one, Reduction of Federal Expenditures,
Substitute for Tax Program. In the light of what I
stated here, that is not an answer.
MR. BLOUGH: We have done a great deal more on that
since that memo was written.
H.M.JR: I'll say one thing more, and then I'll
quit. I mean, this is the eleventh, and the whole answer
of my thing is in paragraph one. That is the thing I am
griping about--the number one--that you should attempt
to answer in that number one, which is no answer.
Regraded Unclassified
69
- 11 -
MR. BLOUGH: May I say, Mr. Secretary, that was
based on 8. thirty-five page memorandum. We didn't
think you wanted to look at a big memo, and we made a
very short summary. Since that time We have done a lot
of work and we could give you by noon a better answer.
H.M.JR: That is what I took with me to the country
to read, and all week-end it has been boiling.
MR. BLOUGH: I am very sorry.
H.M.JR: You don't have to be.
MR. BLOUGH: It is much further along than that, I
assure you.
H.M.JR: It is that number one that got me off on
the wrong foot--I mean, how you handle that. I am con-
vinced there is a way to handle it. I am convinced
there is an answer, but it isn't there. All right, let's
finish.
MR. BLOUGH: Yes, sir.
H.M.JR: Now, this is a little thing--or maybe it
isn't. Who knows what Robert Nathan is doing?
MR. WHITE: He is in the hospital. He had very bad
back trouble. They set him to work digging trenches,
and he went into Walter Reed Hospital. He came out, and
is now back again. He may be improved. I haven't heard
for the last couple of weeks.
Regraded Unclassified
70
- 12 -
MR. SULLIVAN: I have seen him within two weeks out -
I think within two weeks - and I thought he looked quite
well.
MR. BLOUGH: I talked to him last week. He was out
but he was going right back. He was on 8. ten-hour pass,
or something like that.
H.M.JR: Hasn't he been discharged?
MR. BLOUGH: He may have been by this time. He is
going to Hot Springs, Arkansas, to recover and write a
book on the post-war situation for the C.E.D.
H.M.JR: What is that?
MR. BLOUGH: Committee on Economic Development.
H.M.JR: What I am getting at, if the man is well
enough 30 that he could sit as we do on this thing for
the week, and give us the benefit of his brain, that is
what I was thinking about, you see.
MR. BLOUGH: I don't know whether he has been close
enough to the situation.
MR. WHITE: I am sure he would be glad to if he is
available.
MR. BLOUGH: You know him better than I do.
MR. WHITE: I know him personally.
H.M.JR: Harry, you call him up. What I wanted, from
now until I go on the Hill - couldn't we send this stuff
to him and have him say, "You are missing this or that"?
MR. WHITE: If he is still in uniform, it is perfectly
all right, isn't it?
H.M.JR: Yes.
MR. SULLIVAN: He wasn't in uniform when I saw him.
Regraded Unclassified
71
- 13 -
MR. WHITE: I am not sure whether he has had a full
discharge.
H.M.JR: Before I go on, do you get the idea?
MR. WHITE: I will get in touch with him this morning.
H.M.JR: what happened?
MR. TIETJENS: Walter Heller was out at Paul's Sun-
day working on the speech. After you called Randolph,
he said, "Heller, you tell Louie Shere to arrange for an
inflation meeting through Miss Alger - via Miss Alger.'
So Shere--
H.M.JR: Let Miss McCathran hear this. We will get
it cleared up. At least let her hear it.
(Miss McCathran entered the conference.)
H.M.JR: Miss McCathran, just listen a minute.
MR. TIETJENS: Walter Heller was working with Randolph
on Sunday on the speech when you (the Secretary) called,
and he told Heller that when he came back to the office
to have Louie Shere arrange for an inflation meeting via
Miss Alger, and give her the names and get the names from
her, and Shere did that with Miss Alger. Miss Alger
didn't know at what time the meeting was to be called.
She wasn't told. So she checked with Fitzgerald, gave
the names to him, and was waiting to hear from your office
as to what time the meeting was to be called. So that
is apparently where it is now. She wanted the names to be
checked with you first, too, because she was told it was
your meeting.
H.M.JR: I told them specifically that I couldn't go.
You (Miss McCathran) know where it is. We will let it
rest a minute. Thank you.
(Miss McCathran left the conference.)
Regraded Unclassified
72
- 14 -
H.M.JR: In view of what Bell is doing, and everything
else, I wonder whether we want that. The thing I wanted -
everybody is working on the inflationary gap - see what
they have. If Bell is going to do it, I just wonder
whether we want this meeting, you see?
Mk. GASTON: Well, I will make an off-side comment, and
that is I suggest we forget the inflationary gap. There
isn't any such thing. Nobody can define any such thing as
inflationary gap. I don't know just what the meeting was
to be.
H.M.JR: The kind of meeting Paul is always having -
Eccles, and all those people.
Mr. SULLIVAN: Nick Gilbert, and so forth.
MR. WHITE: I think that would be called for only if
you haven't a :ood case against this new thing injected in
the stream. Judging from Dan Bell's remarks, from what
you got over the phone, you can dispose of that, or the
budget Bureau can dispose of that, which leaves the situa-
tion as it was before the statement was made. In that
event I should think you would not want a meeting, because
presumably there is nothing new in the developments, and
therefore you can make the very effective point should it
be raised orally with you, should that be disposed of, and
continue with the other points in your argument and assume
that the situation is as it was when you first presented the
material.
H.M.JR: Well, let's give Bell a couple of hours, see,
and see where he is at, and then we can take this thing up
again. We will just hold the thing in suspense.
MR. GASTON: It might be of some use to sort of con-
solidate sentiment and get everybody's views about what sort
of a case we ought to present.
MR. WHITE: Might it not be worth while if the Budget
Bureau was able to indicate that this doesn't change it,
merely to see that everybody in Washington understands
Regraded Unclassified
73
- 15 -
there has been no change, and a meeting might help to pre-
pare the ground for the Secretary.
MR. GASTON: Even more, if the Dudget Bureau changés
its figures.
MR. HAAS: No doubt be changed.
MR. WHITE: You mean if the expenditure is diminished;
then the meeting is in order.
H.M.JR: The point that Bell made to me last night is
that he doesn't think that the figures are going to be
changed materially for the calendar year '44, and that is
what he thinks.
MR. GASTON: Well, fiscal '44 is the important thing,
I should think.
MR. SULLIVAN: That is what he meant.
MR. WHITE: That would include that.
MR. GASTON: Oh, yes, that is even better.
H.M.JR: Now, the thing I wanted to have is - somebody
can make notes for Blough - Stanley can - I want to go
back to the suggestions that the President always had in
his mind. In the first place, I agree with Fred Vinson
that we ought to have a lot of plans on the ten and a half
billion. But one plan that the President has always men-
tioned is what he did when he was in Albany as Governor
and wanted to raise some money for the unemployed. You
can look this up, Stanley.
When you figure your net income, supposing your net
income, after all deductions, was two thousand dollars;
you added, I think, one percent the first year, which went
for relief. I think they got it up to two or three percent.
They had 8. very good name for it, and it only ran for one
year, see? They took one percent of whatever your net
income was. Whenever you got through, down in the lower
Regraded Unclassified
74
- 16 -
right-hand corner, you figured that was your net income, and
figured one or two percent. He has been after me for a long
time. Why don't we, to help for the war, and all this - when
people have this income, write it down and figure out one,
two, three, four, five - up to ten percent. How much would
it add?
Mr. SULLIVAN: That is the same technique as the defense
tax.
JR: Yes, which was knocked out.
MR. SULLIVAN: Yes. We went through this at that time,
remember? I knew I had read the story before.
H.M.JR: Well, I would like to have that explored. It
won't take very long. Give me an answer.
Now, on my philosophy as of today, let me give it to
you this way: I have read the excellent survey which was
prepared in Schwarz' office under Smith's direction - the
criticism of everybody, of me and the Treasury and every-
body else. If you haven't seen it, it ought to be circu-
lated. When I get all through and done, this is where I
stand as of this morning. I think where we fell down -
and there is no use criticizing - but we tried to please
too many people in the last tax, with the result we pleased
nobody. Therefore, this time I am going to try to please
myself and get out a good tax bill.
(Mr. Bell entered the conference.)
H.M.JR: I would just like to repeat this for the
benefit of Mr. Bell. I think where we fell down in our last
tax bill was we tried to please everybody, and as a result
didn't please anybody - labor, conservatives - we didn't
please anybody.
So I am back to where I was, unless something comes up.
I want to ask for ten and & half billion dollars of revenue
with no trimmings, no refunds, or anything else. I want &
good stiff tax bill which will help pay for the war while we
can afford to pay for it, with no trimmings.
Regraded Unclassified
75
- 17 -
MR. BLOUGH: Suits me.
H. JR: Then I do want to review the C.I.O. program,
and 30 forth, and 50 forth. Just a good bill that will
produce revenue while the war is on. Then if they don't
like it they are going to have to attack me because it is
too stiff and not because of its social aspects.
What I would like to have from the committee is this -
and you fellows are going to have to work awfully hard and
evfuily last: I want a chart so I can say, "Gentlemen,
this is the tax bill as of this year; and this is what it
does for the various income groups.'
We will take people - I thought we would have two
groups; single man, and married man with two children.
This is what it does to the man with an income of a
thousand dollars and under."
Now, then, I don't know, say from one to twenty-five
hundred, or from one to three thousand - and not more
than six groups. "This is what the House bill did."
And each case always having a number of people affected.
I think I once asked for this, say, for a thousand dollars
or under, this year - calendar year. "In '43 we have got
so much.
Now, my groups - there may have been six hundred and
sixty dollars - or whatever the right figure is - six hun-
dred and sixty dollars under the Victory tax, isn't it?
MR. GASTON: Six hundred and twenty-four.
H.M.JR: Whatever it is - but I want what it is this
calendar year - what the House bill did, and then the
proper groups, you see? And then state what is in the House
bill, and then what we think it ought to be. But be sure
and get the thing in financial groups, plus the number of
people, to answer this nine million people thing, you see?
I am not sure of what I am going to say, now, and it
may not be right, but in order to answer these people -
Regraded Unclassified
76
- 18 -
that these nine million people aren't going to pay it.
Maybe we will have a head tax of five or ten dollars for
every person under a certain limit. It isn't a very good
name - I am not sure about this, but I am throwing it at you.
But at least let's get this thing out. I want a trial run.
Call in some friendly people like Walter Lippmann,
who, after he saw Gaston, said, "All right" - like the
editor of the Washington Post - a few people like that;
maybe Ernest Lindley; maybe the columnist, Raymond Clapper -
try it out on them - or Robertson of PM. - and try this
thing out. Do you see? If that is possible, I would like
to have something like that.
I would say, "Now, gentlemen, here is the problem -
here is the way it is. We need ten and a half. I am not
going to tell you how to get it."
And then the other thing I want to do is say, "All
right, everybody is talking about a sales tax - ten percent
sales tax which will yield roughly six billion dollars.
But I am sure there is nobody in this committee that is
going to recommend it without exemptions; so let's look
at the exemptions. And I am sure, gentlemen, that you will
want to exempt food and clothing, and this and that; and
as you exempt the various things, this is what you have got,
if you want it. After all, you are the elected representa-
tives of the people. I am sure, gentlemen, your ear is
closer to the ground than mine is, because I don't have to
run for office; you do. If you want a sales tax, here it
is, plus exemptions." When you take out all the essentials
of life, what does it get down to?
MR. BLOUGH: Oh, it cuts you down at least two-thirds,
I think.
H.M.JR: All right, I want to say that, and have &
chart with the various items.
"All right, gentlemen, are you, Senator Byrd, going
to recommend that you put ten percent on food? Are you
going to put ten percent on clothing, and this and that?"
Regraded Unclassified
77
- 19 -
MR. SULLIVAN: Rent and medicine?
H.M.JR: "All right, when you eliminate all those things,
this is what you get. And I would have a chart on that.
But I am not going to go up and recommend the President's
insurance scheme, and I am not going to recommend the refund-
able feature. I am going to recommend ten and a half
billion dollars of straight revenue, and then they can say
they don't want it.
And then I want to talk about the need. I want to
talk about the mistake that Mr. Mellon made, and Mr. Coolidge
made in 1921, and say, "I am not going to stand here and
make the same mistakes they did, with the resulting collapse
and depression which followed the thing.
MR. SULLIVAN: Elementary arithmetic.
H.M.JR: Yes. "Now, gentlemen, if you want to do that,
O.K." At least I am going to be Secretary of the Treasury
and recommend ten and a half, and I will also bring in this
stuff about the boys going to have to both fight the war
and pay for it.
That is the way I feel this morning. I would like you
people to think about it. I will meet again with you this
afternoon at three-thirty.
All right?
MR. GASTON: I don't believe we ought to change bases
too much. I think you can suggest alternatives, but I
think the original plan was 8. good plan.
MR. SURREY: Randolph and I spoke to Senator George
Friday and he did not seem disturbed about dropping the
nine million people. He thought if it were in the interest
of simplification, he would go along.
H.M.JR: On that, if we drop them out, both under the
Victory tax and kick out the Ways and Means' three percent
tax, please, for heaven's sake, on the nine million people,
Regraded Unclassified
78
- 20 -
give me examples of what they do pay for cigarettes, and
gasoline, and all the other things.
MR. SURREY: That is what we spoke to Senator George
about, dropping out the three percent tax.
H.M.JR: You take the average family, and pay so much:
He buys so much cigarettes, so much liquor, he may go to
the movies once a week, and so forth, and so forth. All
right, a man has so much. He is certainly entitled to so
much. He doesn't go to cabarets, doesn't buy fur coats, but
under a democracy he is entitled to a couple of packages of
cigarettes, and to do this, and that, and the other thing.
And right now he is paying a Federal tax of so much. Don't
teil me he is not paying any tax. It is just the plain bunk
of the people who want to make that fellow pay so that the
man who is getting a hundred thousand dollars a year shouldn't
pay.
Now, let's de-bunk this thing and call a spade a spade.
The net result of the whole thing - I an going to be tough.
Then if they want to criticize me, they have got to criticize
me because I am too tough. But I am not going to wiggle-
waggle, and try to please ten people over in the White House.
I am not going to do it.
MR. WHITE: I agree with ninety percent of what you say.
H.M.JR: Harry, ninety percent? May I shake your hand,
please? (Laughter)
MR. WHITE: I won't wait until you hear the ten. I
will shake hands now. (The Secretary and Mr. White shake
hands.)
H.M.JR: This is one of the high moments of my life.
I am only ten percent wrong in the eyes of Harry White.
And Harry, if you are getting the best of me - I will have
to leave in six minutes.
MR. WHITE: I think I can say what I want to in less
than that.
Regraded Unclassified
79
- 21 -
H.M.JR: Mrs. Klotz thinks I can't wait that long.
MR. WHITE: Well, you said that you didn't feel that
the boys who are fighting now are to pay for the war. I
am in thorough agreement with that, and that is what I
want to start on. In other words, prevent them paying for
the war.
Now, any additional tax you put on now, many of the
men who are in the services will not pay. They don't pay
excise taxes; they get their food and cigarettes for nothing;
they don't pay as much income tax; they get low incomes.
Therefore, any tax that you recommend now, even if it is 8.
bad tax, and you didn't care whether it is bad or good as
long as it was for revenue--
H.M.JR: I didn't say that.
MR. WHITE: But you are not going to expose yourself
to whether it is socially good or bad.
MR. GASTON: No, no, no. You said you didn't care
about making friends, trying to please different people.
MR. BLOUGH: And social reform, I think.
MR. W.ITE: Let's delete that. I have only got three
minutes.
MR. GASTON: That is out. Now you start fresh.
MR. WHITE: Therefore, if you take the position that
these taxes - that your additional ten billion dollars
of taxes shall be just the tax which shall be on during the
war, and that the minute the war is over the first taxes
that shall come off shall be those taxes, then I think you
can go to town. But if you include in your tax recommenda-
tions, the tax structure, the kind of taxation which they
are likely to do unless you fight them, then you are doing
exactly what you don't want to do, because when the boys
come home you are putting--
Regraded Unclassified
S
80
- 22 -
H.M.JR: Give me an example, Harry.
MR. WHITE: Let me take the example of lowering the
exemptions. Let's say, if you lower the exemptions, and if
that lowered exemption lasts after the war, then the boys
that come back from the services and begin earning money--
Let me come back at this tomorrow or the next day.
H.M.JR: How about three-thirty? The very thing that
you are talking about, see? Lowering exemptions - I am
against it - I don't want to lower the exemptions.
MR. WHITE: But I gather you weren't willing to say
how they get the money as long as they get the money.
H.M.JR: No, look - we will start the three-thirty
meeting with White.
MR. BLOUGH: He said all that in the House statement.
MR. WHITE: He was going to change his mind as to what
he is going to say in the Senate, I thought.
H.M.JR: The trouble is, I think you are suspicious
of what I am going to do. If you ask me what I am going
to do, I will tell you. I will tell you exactly the kind
of things I mean. Paul and his group, in order to please,
thought that it was good strategy to say, "We will lower
the exemptions." I never was for it. That was displeasing
to the labor unions. I am not going to do it because I
never did believe in it. They have had to beat me down
every time in order to get me to lower the exemptions. I
don't want to lower exemptions. I don't think you know
quite what I have in my mind.
MR. WHITE: I don't think I do.
H
JR: So therefore you question me at three-thirty.
MR. GASTON: Lippmann was & good deal impressed by the
fact that I showed him there would be thirty-five or more
Regraded Unclassified
81
- 23 -
million taxpayers left after letting the nine million go, and
also that fifty-three percent of the amount of additional
taxes would fall in the group of five thousand and below.
That is the majority of new taxes.
H.M.JR: Would you mind, Beil, taking this group into
your room and see who does what, and hold certain people
to certain things? I have asked for these charts. You
ought to take some of these people in. I have given them
certain orders, and I want to know when they get started, and
know that this has number-one priority. But these things
I have described - who is going to do it - what is Haas
going to do. So take them in your office and get them
started. I will meet the same group at three-thirty.
MR. BELL: The books close tomorrow night on the
refunding. We have one million three, as of last night -
thirty percent of them.
Regraded Unclassified
82
My dear Mr. Secretary:
I have been very much interested in the fact that the
War Department has announced the release of some $13 billion
of its available funds. There has been considerable confusion
as to the affect of this release on expenditures, and I should like
to ask you to help clarify this matter for me. I should greatly
appreciate it if you could supply me with the following information:
1. Total appropriations and contract authorizations
available through the War Department before the
release of the $13 billion.
2. Estimated total expenditures by the War Department
during the fiscal year 1944 calculated before the
release of the $13 billions.
3. Total appropriations and contract authorization
to
available through the War Department after the
release of the $13 billion.
4. Estimated total expenditures by the War Department
during the fiscal year 1944 calculated after the
release of the $13 billion.
This information will be most helpful to me, and I should
like to have it as soon as possible.
Very truly yours,
Secretary of the Treasury
Regraded Unclassified
83
November 23, 1943
11:21 a.m.
HMJr:
Who has the information that I want? I mean --
are you -- you were going to call up Harold Smith.
Dan
Bell:
Yeah. I couldn't get Harold. He's sick in bed
and I called his house and they said he was asleep.
They thought he'd wake up in a little while and
they'd have him call me.
HMJr:
Yeah.
B:
I've been in touch with Wayne Coy
HMJr:
Yeah.
B:
....and they've already worked up a statement
HMJr:
Yeah.
B:
explaining the $13 billion and Jimmy Byrnes
said he was going to give it out.
HMJr:
Yeah.
B:
I suppose as Acting President. I think there is
a little difference of opinion on it over in the
Budget. I think that Coy thinks the Director of
the Budget should give it out.
HMJr:
Sure.
B:
Well, I talked to him about, Dudget summation in
simple statement form on Friday and he said,
well, they thought they could throw something
together, but he'd like to get in touch with Smith.
We're just sitting here, a few of us, discussing
whether it would be advisable to put out a Budget
summation at this time and whether or not it couldn't
be handled another way. I don't know yet.
HMJr:
Well
B:
General Richard is coming at 1:30.
HMJr:
When you -- the point I want is something out by
Friday.
B:
Yeah.
Regraded Unclassified
84
- 2 -
HMJr:
What's the chances?
B:
I think the chances are pretty good. What it
will be, I don't know, but I think they were
drawing something for Byrnes to put out right
away. Now, whether that will be sufficient,
I don't know 'till I see it.
HMJr:
Well
B:
But Coy said he wouldn't do anything on it until
he talked to me again.
HMJr:
Well, I mean it
B:
We are waiting now to get in touch with Smith
HMJr:
I see.
B:
....who is 111.
HMJr:
I see. Well, it looks as if I started something,
huh?
B:
Yep.
HMJr:
And....
B:
Well, they've been talking to Byrnes about it
the last couple of days and Byrnes decided that
he would give out a statement on it.
HMJr:
Well, do they know that I've got to go up on
the Hill Monday?
B:
Yep. I told them that you were going to be put
on the spot on Monday and that something ought to
be done before then.
HMJr:
Now, will you do one other thing for me?
B:
Yep.
HMJr:
Call up Fred Vinson and tell him what you're
doing.
B:
All right.
HMJr:
And tell him we'd like to have his help.
Regraded Unclassified
85
- 3 -
B:
All right.
HMJr:
See?
B:
Yeah.
HMJr:
And you might -- because he may be in on this
thing, too, you see?
B:
Yeah. I'll tell him.
HMJr:
And we need his help to get this thing out
beforehand.
B:
Okay.
HMJr:
Thank you.
B:
Yes, sir.
Regraded Unclassified
86
November 23, 1943
11:24 a.m.
HMJr:
Hello.
Ted
Gamble:
Hello, Mr. Secretary.
HMJr:
Hello, Ted. Ted
G:
Yes.
HMJr:
I'm counting on you, you know, to handle this
advertising business.
G:
Yes, sir.
HMJr:
Are you making any headway?
G:
Yes, sir.
HMJr:
You are?
G:
Yes, sir.
HMJr:
Well, do you know when it's going to come up
in the House? Or anything else?
G:
Mr. Lynch and Mr. Mager were here -- we had a
meeting this morning on it.
HMJr:
Who's Lynch?
G:
Lynch is in the General Counsel's office. He's
been one of the liaisonswith the Hill.
HMJr:
Yeah.
G:
And he followed the bill all the way through
the Senate Committee
HMJr:
Oh, yeah.
G:
....as an onlooker and reporter for us.
HMJr:
Yeah.
G:
And we have prepared a report. We are documenting
it now so that it can be presented to the House
Committee.
Regraded Unclassified
87
- 2 -
HMJr:
Yeah.
G:
We are supporting it with all of the evidence
of the
HMJr:
Well
G:
facts that we have on what the weekly
newspapers did. I've talked to Nathan Adams
in Texas.
HMJr:
Yeah, that's what I'm leading to.
G:
He has agreed, not only to contact Rayburn
himself, but to see that other influential
people in Texas contact Mr. Rayburn.
HMJr:
Well, how long ago did you speak to Adams?
G:
I spoke to him yesterday morning.
HMJr:
Is he going to let you know what reaction he
gets?
G:
Yes, sir. He was away last week-end
HMJr:
Yeah.
G:
on a ranch down in Texas and we couldn't
reach him.
HMJr:
Yeah.
G:
I talked to him yesterday morning.
HMJr:
What Committee handles this? Do you know?
G:
Uh -- the -- it goes in to the Rules Committee
in the House.
HMJr:
Uh -- but then -- Rules?
G:
Yes.
HMJr:
Uh huh. I wonder who's on Rules, you see?
G:
Yeah, Sabath is on there. I've started to get
the list of names this morning.
Regraded Unclassified
88
- 3 -
HMJr:
And to go to work on them?
G:
Yes, sir.
HMJr:
Attaboy.
G:
But we're watching it, Mr. Secretary, and
we have several other people in the....
HMJr:
Well, watching it ain't enough.
G:
I -- I -- I understand. I don't mean that.
HMJr:
All right.
G:
I understand that Thomas and those fellows
said they wouldn't do anything about it.
Is that right?
HMJr:
Thomas?
G:
Harold Thomas.
HMJr:
Oh, I don't think they'll do anything.
G:
No.
HMJr:
They always let somebody else do it.
G:
That's right. Well, I started to check up on
it and I found that you had already spoken to
them.
HMJr:
Yeah.
G:
And that they are not going to do anything
about it.
HMJr:
Yeah. And I haven't heard from Knox.
G:
Yeah. Well, he won't do anything.
HMJr:
They're all scared.
G:
That's right.
HMJr:
Yeah.
Regraded Unclassified
- 4 -
89
G:
Well, We -- we're not afraid to stick our
neck out on it.
HMJr:
Well, I'm personally not afraid.
G:
I understand that. And I think you're sound
on it.
HMJr:
And you might -- another thing 18 -- this 1s
"period -- paragraph -- new subject."
G:
Yes.
HMJr:
You might begin to find out and get acquainted
with the man who is going to take Palmer Hoyt's
place.
G:
Mr. Healey.
HMJr:
Yeah.
G:
Yes, sir.
HMJr:
And I'll tell you, you might ask Elmer Irey if
our boys know him.
G:
Yes, I will do that.
HMJr:
And we might have a good introduction to him
through that channel.
G:
Fine.
HMJr:
The man that handled the Huey Long case -- whose
name was Burford
G:
Yes.
HMJr:
and he may know this fellow. I don't know
whether this is -- how active he was with Huey
Long, but through Irey or Burford we might get
a good line on him.
G:
Fine. I'll get a line on him from Irey.
HMJr:
Right.
G:
I'll call today on it.
Regraded Unclassified
.
90
- 5 -
HMJr:
Right.
G:
All right, sir.
Regraded Unclassified
91
Luncheon meeting in Secretary Morgenthau's Office
Tuesday, November 23, 1943
Present: Secretary Morgenthau
Mr. Crowley
Mr. Cox
Mr. Currie
Mr. White
The Secretary had invited the group to luncheon to pursue the
discussion of questions relating to the British dollar balance
position.
The Secretary began by saying that he had informed Secretary
Hull that he and Mr. Crowley were ready to discuss with him the
question of French payment for military goods now sent under lend-
lease credit and would it be possible to take that up after the
meeting on the Argentine matter in Secretary Hull's office was over.
Several days after the inquiry Secretary Morgenthau said he was
informed by Secretary Hull's office that Secretary Hull was not yet
ready to discuss the French matter. Secretary Morgenthau said as
soon as Secretary Hull sets a time of meeting he would be ready he
would get in touch with Mr. Crowley.
The Secretary then related the gist of conversation at the
luncheon he had had with Lord Halifax and Waley.
Mr. Crowley asked how far we had gone in our preparation of a
program. Mr. White replied that he thought that the draft of the
letter agreed on by Currie and himself represented the views of the
group. The letter, he said, placed the matter squarely up to the
President and called either for approval designed to curtail the
balances or for a decision by the President to modify the directive
of last January.
Mr. Cox thought that that approach would not be the wisest. He
felt it would be better not to raise the question of the balances. lie
said that the State Department would not agree and that eventually the
Prime Minister would raise the issue with the President and then we
would not have made any progress. He thought it would be much better
not to bring the matter to the President but rather to pursue the
course of attacking each item separately. He stated that the first
step had been taken on fish from Iceland. The next one might be sugar
from the Caribbean area, then shipping services and there were other
items. It was his view that if we raised each one of these projects
separately there would be no point on which the Prime Minister could
appropriately complain to the President.
Regraded Unclassified
92
Division of Monetary
Research
- 2 -
White said that he preferred the approach of the total balances.
He feared that the aggregate of reductions likely through the other
method was quite inadequate to carry out the directive. Currie and
Cox, however, pointed out that they hoped the amounts that they could
total by taking one item up at a time might reach to several hundred
million dollars. White agreed that if that magnitude could be reached
the approach suggested by Cox might be all right.
Mr. Crowley repeated the conversation he had had with the President
some time ago in which the President said that he thought the British
should have up to 82 billion. Mr. Crowley said he had told the President,
"Please don't say that. Let the Treasury people and my people work out
what we could do on the matter and then if there is any disagreement the
matter can be brought to your attention but that I think we can work
something out that will be satisfactory." Mr. Crowley therefore thought
the approach suggested by Cox was the better one. The Secretary agreed
and it was decided to pursue that course as quickly as possible.
The Secretary raised again the question of sending lend-lease goods
to the Middle East on a credit basis. Mr. Cox replied that it was a
pretty complicated matter, that they were trying to cut out some of the
items.
The Secretary repeated some of the things he had stated in former
conferences with Mr. Crowley with respect to the desirability of
tightening up on the whole Lend-Lease program, and the cutting out of
all procedures that weren't fully justified and couldn't be easily
defended.
H. D. White
Regraded Unclassified
93
November 23, 1943
2:25 p.m.
HMJr:
I've had a little -- I had figured on asking to
see the Democratic members of the Finance Committee
on Saturday. Now, they want to see me tomorrow.
Dan
Bell:
Uh huh.
HMJr:
Now, I'm asking you and Paul to go with me.
B:
Uh huh.
HMJr:
And -- it's for lunch up at Halsey's office.
B:
Uh huh.
HMJr:
Now, golly, I hope you can have something on
that $13 billion before that.
B:
I think I'll have it. I've got the story informally
but I think I'll have it in writing.
HMJr:
Well, if you could have that by -- for lunch
tomorrow, it would be wonderful.
B:
I think I can.
HMJr:
Well, and can you find out who's going to give
it out to the public?
B:
Uh -- that we'll have to decide, I think. I can
get a written statement either over the signature
of the Secretary of War or the Budget Officer,
General Richards. He said that he'd do it either
way. I told him I thought over his signature as
Budget Officer might be just as good. And he'll
give us something that we can give to the Committee.
He'll write it in such a way that it can be put into
the record if you want to.
HMJr:
Gee, I don't know
B:
Now, I haven't gotten the Budget yet to see what
they want to do.
HMJr:
Well, don't you think over Mr. Stimson's signature --
which do you think would have more effect?
B:
Well, I thought probably the Budget Officer's would
be as effective.
Regraded Unclassified
94
- 2 -
HMJr:
Well, I'll tell you....
B:
I mean, he doesn't care.
HMJr:
Well, I'll tell you -- no -- I did this through
Patterson's office. Hello?
B:
Did it through what?
HMJr:
I started this through Bob Patterson.
B:
Uh huh.
HMJr:
I'd put it up to Patterson, "How do they want
it?"
B:
All right.
HMJr:
I mean, let them decide.
B:
All right.
HMJr:
You see?
B:
Yeah.
HMJr:
But we've got to have it by noon tomorrow.
B:
All right. Well, he can give it to me.
HMJr:
Is it a good story?
is
B:
Uh -- yeah, a good story.
HMJr:
Yeah.
B:
And, as a matter of fact, the thing that --
they've been working on it for a long time and
the thing's been in the mill. If the Committee
up there hadn't gotten ahold of it, why, there
would never have been any publicity to it. They
would have just put it in reserve and forgotten
it.
HMJr:
I see.
B:
But, there has been no change in the expendi ture
figures since the Budget summation of August 1.
Regraded Unclassified
95
- 3 -
HMJr:
Really?
B:
Yeah. And they see no reason for changing the
expenditure figures at this time.
HMJr:
Well, you can see the importance of getting it
into the hands of the public. Now, what I'd like
to do though, is to get it out a couple of days
before I go up there.
B:
You mean before you go up on Monday?
HMJr:
Before I go up on Monday.
B:
Yeah.
HMJr:
That's what I'd like to do.
B:
Well, I think they'd be willing to do that.
HMJr:
Okay.
B:
All right.
HMJr:
Thank you.
Regraded Unclassified
96
November 23, 1943
4:00 p.m.
TAXES
Present: Mr. Bell
Mr. Sullivan
Mr. Blough
Mr. Gaston
Mr. Haas
Mr. Smith
Mr. Surrey
Mr. Tickton
Mr. Lindow
Mr. O'Connell
Mrs. Klotz
H.M.JR: I have got your memorandum, John, if you
want to stay 8. minute behind.
MR. SULLIVAN: Yes, sir.
H.M.JR: You said you wanted to see me.
MR. SULLIVAN: Yes, sir.
H.M.JR: This is from Gaston to me: "Walter Lippmann's
general comment was that he didn't think that the Treasury's
case had been well enough presented to the public."
(The Secretary reads to himself Mr. Gaston's memorandum
of November 23, attached)
Well, Smith, I'll keep the original. (Secretary hands
carbon copy to Mr. Smith)
One thing I would like a little advice on is this: I
have been fussing, through Colonel Halsey's office, to
meet with these people. First they couldn't come tomorrow,
and I said George and Barkley, and as many more as they
wanted. Well, I gathered they are inviting all twelve
members. I can't back out. But I had intended taking
Regraded Unclassified
97
- 2 -
Bell with me, and Paul and Smith, and anybody who thinks
he should come, although I did want to keep it down. The
main thing - do you think it would be good ball or not for
me to call up Vinson and ask him whether he would go up
with me? It is my luncheon; I am paying for it.
MR. SULLIVAN: Who is the committee meeting with?
H.M.JR: Mostly the Democratic members of the Finance
Committee.
MR. GASTON: Yes.
MR. BELL: I haven't been able to get Vinson. He
has been out all day. I haven't been able to get him, so
I haven't told him about it.
H.M.JR: What do you think?
MR. BELL: I certainly don't think it will do any
harm, because he will certainly be called before that
committee and he ought to know what is going on.
H.M.JR: Fred?
MR. SMITH: I think you ought to invite him.
MR. SULLIVAN: I am just wondering - you are going to
try to outline the tax plan?
H.M.JR: Yes.
MR. SULLIVAN: Or are you going to spend most of your
time talking about the necessity of the new tax?
H.M.JR: Sort of outline it.
MR. SULLIVAN: I would take him.
MR. BELL: Then you are going to try to get their
advice?
98
- 3 -
H.M.JR: Yes. Does anybody think we shouldn't?
MR. GASTON: I just wonder what good the lunch is
going to do. Isn't it just going to make it more diffi-
cult for you to say what you want to say when you make 8.
formal appearance before them?
H.M.JR: I don't know, Herbert. I think, over a period
of ten years, when you do this thing on a personal basis
you don't appear cold before them. You do have & little
bit more sympathetic audience.
MR. GASTON: Yes. You couldn't put it on the ground
of just asking them what you are going to say or what you
should say?
MR. BLOUGH: Ask them how you can go about persuading
them.
(The Secretary places 8. call to Judge Vinson.)
H.M.JR: It is too late to decide whether it was
smart, but to go up absolutely cold against these fellows
is an awful shock. I have known them for ten years.
MR. GASTON: I think it is all right. I think you can
just tell them that you are sticking to your guns on heavy
taxes.
H.M.JR: It will be in the paper, but what the heck -
it will sort of soften them up. Anyway, it is water over
the dam - I mean, if I made a mistake.
MR. SULLIVAN: I don't see any objection to its being
in the paper, Mr. Secretary.
MR. BLOUGH: I was a little facetious when I said
ask them how to persuade them. I really had in mind that
you may be able to find out what types of facts and infor-
mation they consider important in connection with this,
and it may help to guide you in the kind of statement you
make to them.
99
- 4 -
H.M.JR: I think so. Paul called him up and asked
him about simplification of this and that thing. Look,
anyway, I did it. I think it may soften them up a little.
What the heck!
MR. GASTON: Did you notice the Herald Tribune cartoon
this morning? That is worth seeing.
H.M.JR: No, I didn't.
MR. GASTON: It is directed against the Republicans
getting drunk on inflation. It is & good cartoon. It
is right up our alley. That is one thing that Ernest
Lindley called attention to, that the important papers
are swinging around into our corner on the general propo-
sition of the need for heavier taxation.
Of course, many of them are saying it should be done
through the sales tax, but not all.
H.M.JR: Well, I would like to have a report--
(The Secretary picks up phone) Tell Schwarz' office
I would like to see the cartoon in today's New York Tribune.
Send it down to me.
Give me a report, Bell, on what you have been able to
accomplish.
MR. BELL: Well, all of the things that you asked for
this morning are in Mr. Blough's shop, and he has been work-
ing on those three things you asked for. Just what he has
done, I don't know. We didn't have any more meetings be-
cause he wanted to spend the entire time - oh, you mean
the other-
H.M.JR: Yes.
MR. BELL: I still haven't been able to get ahold of
Harold Smith. Wayne Coy was to call as soon as he got out
of Byrnes' office. That statement was left with Jimmy
Byrnes, and he was until one to get him to hold it up.
Regraded Unclassified
100
- 5 -
He said he would talk to them as soon as their meeting was
over and call me right afterwards to see if we could get
together on some kind of program.
I talked to General Richards of the "ar Department,
the Budget officer. He gave me the background of the thir-
teen billion. He said late in June or early in July the
General Staff went over the whole Army program and they
decided to reduce their personal program from eight million
and a quarter down to seven million seven. When they did
that they called up all of the service bureaus to submit
estimates of what appropriations they could get along with-
out for the rest of this fiscal year. After they got the
bureaus' estimates, they had hearings before his group,
as a result of which they set aside in reserve about ten
billion nine.
They notified the Bureau of the Dudget of that early
in September, and going over the matter again with the
Bureau of the Budget, they have since been able to increase
that to thirteen billion.
In their budget estimate of last January, they esti-
mated they would spend sixty-two billion dollars this fiscal
year, and in July they notified the Bureau of the Budget
and also the Treasury . - they have been using their esti-
mates - that this estimate would come down to fifty-six
billion. That fifty-six billion dollars is in the summa-
tion of the Budget, issued on August 1. So that has all
been made public.
But at that time the Budget Bureau increased the Navy
expenditures from twenty-two billion, set out in the Presi-
dential Budget Message of January, to twenty-eight billion,
which was included in the summation. So, on the over-all
estimate there was no change whatever - still retained the
ninety-seven billion.
Now, whether they did that to retain the ninety-seven,
I don't know, but the expenditure program up to date indi-
cates clearly that the Navy is going to exceed their origi-
nal estimate unless they have & sharp reduction from here on.
Regraded Unclassified
101
- 6 -
They are on 8. basis, now, of about twenty-four or five billion
dollars, and the Army is on a basis of, well, I should think
about fifty-five billion, if they spend from here out as
much as they will this month.
H.M.JR: Now are you talking about the calendar year?
MR. BELL: Fiscal year. Now the thirteen billion
dollar reserve has had very little effect on this year's
estimate of expenditures. Whatever effect it has had was
taken into consideration in the July change in their esti-
mates.
Senator Byrd and Senator Truman have both been investi-
gating the War Department's huge unexpended balances.
That has been a little embarrassing to the Chairman of
the Subcommittee of the Appropriation Committee, who has
charge of the military appropriation estimates. He talked
to Mr. Cannon, the Chairman, and said that they thought
they ought to do something about it, because what Byrd and
Truman were doing was a reflection on his committee.
So he called the War Department officials up to his
committee and rehashed this whole program that the General
Staff had changed, also the thirteen billion dollars in
reserve, and finally gave the figure to the public as a
saving in War Department appropriations.
H.M.JR: Who?
MR. BELL: Chairman Schneider. That is how it got to
the public. If it hadn't been for that, you never would
have heard of the reserve; it would have been a matter
between the War Department and the Bureau of the Budget.
H.M.JR: Who is Schneider?
MR. BELL: Chairman of the Military Affairs Appropria-
tion Committee of the Appropriation Committee of the House -
a subcommittee.
And that is about the story.
Regraded Unclassified
102
- 7 -
H.M.JR: How are we ever going to get this thing down,
though?
MR. BELL: He is dictating 8. memorandum this afternoon
which he will give to us and which will be in such form
that we can make it public. I told him also to give con-
sideration as to whether, if we wanted them to, the Secre-
tary or Patterson couldn't give it out Friday morning in
the press conference. He will do that, too.
H.M.JR: Will we have a press conference?
MR. BELL: I don't know. Maybe if there is one at
the end of the week, one might do it, if that is what you
wanted. He will tell me about that tomorrow morning when
he gives me the memorandum. I will have that before
twelve o'clock.
The Navy said, Secretary Knox said, he never heard of
the five billion, and no one in his Department is authorized
to give it out. The Budget Bureau said they never heard
of it. They said there wouldn't be any change in their
estimates unless there was & radical change in their con-
struction program. They said they did have under considera-
tion the matter of throwing out some heavy battleships, but
it would be very little paid on those in this year, 80 not
much effect on this year's expenditure program. That will
probably have to wait until tomorrow afternoon before I
can get anything on it.
H.M.JR: What is Wayne Coy trying to do?
MR. BELL: I asked him if he didn't want to consider
at this time revising the Budget summation given out in
suggestion one. We have been trying to get Smith all day
to talk to him about it. He said as soon as he got the
statement from Byrnes he would call me back. We would
talk about whether we wanted to do it or not.
H.M. JR: I think the more light that can be thrown
on this thing, the less questions I am going to be asked,
and the more the public will understand. I think that is
& matter of public education.
Regraded Unclassified
103
- 8 -
MR. BELL: I am not so sure that you can't show the
Senate Finance Committee that the expenditures that will
be made in November, if continued on that basis, will pretty
much reach the War Activities' estimate.
MR. GASTON: You have got 8 net there of - what did
you say - twenty-four or twenty-five, plus sixty-five -
about ninety billions, as against ninety-six, is about the
way it stands, isn't it?
MR. BELL: No, it is about twenty-five and fifty-
five, which gives you eighty. Then you have a lot of
other activities - anywhere from fourteen to sixteen billion
dollars. What you had was eighty-eight billion of War
and Navy, and then you had nine billion of Lend-Lease,
outside of the War and Navy, Maritime Commission, Agri-
culture Department, Treasury, and other governmental acti-
vities under the war expenditure classification.
MR. GASTON: But these Army-Navy changes were both
taken into account in the last summation?
MR. BELL: Yes. The ninety-seven wasn't changed,
but the Army and Navy expenditures were changed. The Navy
increased to take care of the reduction in the Army.
H.M.JR: Get this thing - why don't you see if you can
get Wayne Coy here? (The Secretary placed a call to Mr.
Wayne Coy.)
MR. BELL: Would you like to see them revise the
Budget summation?
MR. BLOUGH: Stanley made a suggestion here.
MR. SURREY: I was just wondering - this thirteen billion
will probably be used in the House debate starting tomorrow.
MR. BLOUGH: This could be killed before that debate
starts.
Regraded Unclassified
104
- 9 -
MR. SULLIVAN: Budget could come out with their state-
ment and let War and Navy go on and explain it Friday.
MR. HAAS: I think Fred Smith's explanation is the
one the public can understand easiest.
H.M.JR: What is that?
MR. HAAS: He has prepared a statement to be given
the Senate. In that statement is an explanation of the
thirteen. I think the way he has handled it is the most
effective way to handle it.
H.M.JR: This is good. I haven't read it. Do I
get a copy?
MR. SMITH: Yes.
H.M.JR: Nobody tells me anything. Let's say that
this is up to the best Smithsonian style.
MR. BLOUGH: It is pretty good, Mr. Secretary.
MR. SMITH: I don't know - it is all right with
Researchand Statistics.
H.M.JR: I still think that Stanley has an idea. If
this thing could be put into the hands - this explanation -
of Patman, who is carrying the fight - the thirteen billion
explanation--
MR. BELL: This is the subsidy?
MR. BLOUGH: No, tomorrow the House starts debating
the tax bill.
MR. SURREY: They finished the subsidy bill today.
MR. BELL: You don't mean Patman, do you?
H.M.JR: I mean Doughton.
Regraded Unclassified
105
- 10 -
MR. SURREY: Doughton is not on your team.
H.M.JR: Give it to somebody. I didn't know the
House was in session today.
MR. BELL: They adjourned yesterday, I think, out of
respect.
H.M.JR: You publicity fellows, this is what I think:
I think the quicker we can get out the answer to the thir-
teen billion, the better. And then if they don't handle
it right, we can always come in on the rebuttal. I mean,
if we could lay that thing, fine. Don't you think so?
If it could be done in the House--
MR. SMITH: If that would do it. The only thing that
worries me is that if it gets out as a technical explana-
tion, it may not get any attention. I was enthusiastic,
but you are having a fairly sizable meeting here; maybe
having Vinson here, and having a good burial for the thing--
H.M.JR: Yes, but supposing Mr. Stimson and General
Richards at his side, are willing to do it over there?
MR. SMITH: That is something else again. That will
in
get some attention.
MR. GASTON: I think if we have any friends in the
House majority that they ought to be told about this today
so that they can deal with it on the Floor.
MR. SMITH: I think that is true.
MR. SULLIVAN: Then the newspaper fellows will go after
Stimson on this thing.
H.M.JR: Well, the thirteen billion, it is really up
to the Budget to supply those figures, isn't it - the
leadership up there?
MR. BELL: Either they or the War Department.
Regraded Unclassified
106
- 11 -
H.M.JR: If you told Wayne Coy the tax bill is coming
up tomorrow and we have got this story - you haven't got
it yet, though, have you?
MR. BELL: No, except informally. But he was dictating
it an hour ago when I called him, so he may have it pretty
well done.
H.M.JR: I am thinking out loud - whether that thing
couldn't be gotten, well, into the hands of the Speaker.
MR. BELL: Wayne Coy is a pretty good politician. He
has a lot of friends up there.
H.M.JR: Tell Wayne Coy to get it into the hands of
the Speaker. He could take General Richards up with him
and the two could explain it.
MR. BELL: The Speaker wouldn't make any speech.
McCormack could.
H.M.JR: Yes, but you have got to be awfully careful.
The Speaker would have to invite General Richards to his
office tomorrow.
MR. SULLIVAN: That would be the end of it. Neither
of those fellows prefer big taxes. How about Jere Cooper?
MR. GASTON: We have got to get somebody in our corner.
H.M.JR: I personally think it is a dead horse; it is
going to get lost and snowed under. I would rather have
the thing fresh out of Stimson's office Friday morning,
with General Richards sitting at his side prompting him.
MR. SULLIVAN: Could Budget release this for the morn-
ing paper?
MR. SMITH: I think it will get lost if Budget does
it. Nobody reads anything Budget does.
Regraded Unclassified
107
- 12 -
MR. LINDOW: The Budget summation doesn't have much
to do with the thirteen, and will add confusion, I think; if
there is a reduction in expenditure in the Budget summation
somebody may want to add that to the thirteen.
H.M.JR: I think they are two separate things. I
think it is up to the Army to do the explaining. I think
if Mr. Stimson or Mr. Richards would do it it would be
better. The earliest that you can do without rushing it
so fast that it would be spoiled - if you can get around
to it Friday morning.
MR. BELL: They probably could do it around tomorrow
morning, around eleven 'clock, and get it in time for the
session.
H.M.JR: You mean Mr. Stimson?
MR. BELL: I am sure Richards will be finished tomorrow
morning by ten or ten-thirty.
H.M.JR: They give it out and say, "Notwithstanding
that the Congress only voted two billion dollars." That
damns it twice. Now they get it down and finished; it
goes down with the bill and it is drowned. Now all the
newspaper people are going to write, "Well, the Congress
was wrong. They should have gotten more. Then we come
up with fresh information that the thirteen billion isn't
right, and I think the papers will back us up to the time
I go up and ask for the ten and a half. I wouldn't do it
for the Ways and Means. After all, it isn't our responsi-
bility, anyway. It isn't as though they were withholding
information.
MR BELL: They are not going to pay any attention
to it on the Floor of the House.
MR. SULLIVAN: They have a rule; they couldn't pay
any attention if they wanted to, under that rule.
H.M.JR: Gentlemen, I would not give it to the House
tomorrow. It just goes down under an avalanche. Does
Regraded Unclassified
108
- 13 -
anybody disagree with me? Herbert, have I sold you?
MR. GASTON: No, not completely. I think there should
be somebody on the Hill intelligent enough about what
appropriations mean 80 that they could ridicule that thing
when it comes up. If he isn't going to have any chance to
talk about it, that is another thing.
MR. SULLIVAN: A chance to talk, but not to do any-
thing about it.
H.M.JR: Herbert, it is going to get snowed under. Do
you mind if I do it my way?
MR. GASTON: No, that will just give me a chance to
say yaa, yaa!
H.M.JR: The way you always do -- not. (Laughter)
All right. Then we are waiting for Wayne Coy. You
(Bell) are going to talk to him about the summation. You
are going to tell him what is doing on the thirteen billion?
MR. BELL: Yes, he knows.
K.M.JR: We are trying to do the thing now, and what
we want to do, instead of having him do it, or having
Mr. Byrnes do it, have Mr. Stimson do it. Is that right?
MR. BELL: Yes. I would be inclined, I think, to leave
the summation alone if we are going to tackle the thirteen
billion on Friday morning.
H.M.JR: I will be satisfied.
MR. HAAS: The Budget estimates are not in bad shape
in terms of this conversation you had today.
MR. BELL: A lot of things can happen.
(Mr. Bell held a telephone conversation with Mr. Wayne
Coy, as follows:)
Regraded Unclassified
109
November 23, 1943
4:33 p.m.
Wayne
Coy:
Hello.
Dan
Bell:
Wayne, have you got any more information?
C:
Yeah, I've got the deck cleared.
B:
Oh.
C:
Just like a one-armed paper hanger though.
B:
You don't know what to do?
C:
Well, I just this minute got back and talked to
Harold. I've just had time enough to talk with
him.
B:
Uh huh.
C:
But I got Jimmy to go along with me on the thing.
B:
You mean for him not to release anything?
C:
He's not going to release anything. He thought he
might have something to say about it in his Press
Conference after Harold released it here.
B:
Uh huh.
C:
Which 1s all right. He'd have this -- his approach
to it is this: he's been working to get the Army
and Navy to make cut-backs in their program where
they have an overproduction like in small-arms
ammunition or a small ship program of the Navy, and
substitute for that other things which are new items
Bo that you don't get an inflated program.
B:
Uh huh.
C:
And he'd approach it from that angle and support
the thing, which is all right. That falls right
into the pattern.
B:
What would you think of having Secretary Stimson
give out a statement on this $13 billion?
Regraded Unclassified
110
- 2 -
C:
Well, uh
B:
I think they can give out a good one.
C:
They can?
B:
Yes.
C:
I saw a statement that they'd prepared for
Jimmy on the thing dated the 15th and it's
pretty bad. Here's the trouble with it, Dan, and
I'll show you why they can't do it and they just
can't get it through their heads. They show
savings in their construction program of a billion
dollars. They show savings in their supply program
of about five billion dollars; total savings of
six. Well, now, that runs from today to the end
of the war, you see, in terms of their supply
program.
B:
That's all to the good.
C:
Which -- what?
B:
That's all to the good.
C:
Yeah, but they don't -- they don't spell that
out at all and these fellows over there -- I've
talked with him about it this afternoon - with
Jimmy -- they they're inclined to say that's
next year, this fiscal year, you see? In fact,
it isn't.
B:
No, I understood that they are of the opinion that
the $13 billion does not materially affect 1944
expenditures.
C:
Well, it will affect it some, as you know.
B:
Well, not any more than what they have already
taken into consideration when they submitted to
you a $56 billion program for your Budget summation.
C:
No.
B:
It's all in there.
C:
Yeah. That's right.
Regraded Unclassified
111
- 3 -
B:
So that there's been no change in the picture
since the $13 billion was made public.
C:
Why -- I was just thinking out loud with you,
because the Navy's involved in this picture, too,
as well as the Army, except that they haven't
gotten the publicity about it.
B:
Well, they told me over there they didn't know
anything about the $5 billion.
C:
They didn't?
B:
That's right. Secretary Knox said that he didn't
know who gave it out and no one around there knew
anything about it.
C:
Yeah.
B:
And they had no intention of saving $5 billion.
C:
Well, what I thought that I'd do here was get our
people in in just a few minutes and go over the
thing with them and lay out for our fiscal people
the preparation of a statement that the Director
could issue, which would, in effect, be a revision
of our summation. And I talked with Weldon Jones
at noon today and he says we can have that prepared
within forty-eight hours, he was sure.
B:
Uh-huh.
C:
Then it might be possible that that could be
supplemented by a statement from Stimson which
would reinforce the whole damn business.
B:
Well, General Richards 1s preparing such a statement,
giving the background of the $13 billion and what it
means in terms of expenditures.
C:
Yeah, at whose request?
B:
Mine.
C:
At yours?
B:
Yeah. Because I thought maybe we had to use something
before the Senate Finance Committee on Monday.
112
- 4 -
C:
Well, I'll tell you, Danny, any statement that
Richards prepares that we don't have a look at
and see what it is and what it means in terms of
our own figures, we may be just raising hell with
it.
B:
You can see it.
C:
Because, I've just seen one that he prepared for
Jimmy which is just as cock-eyed as can be.
B:
Uh huh.
C:
in its implications and I would just jump
right down his neck if he gave out a statement
about their expenditure program without consulting
with us about it.
B:
This is just on the $13 billion.
C:
Uh huh.
B:
Not on their total expenditure program, other than
what they have already given you.
C:
Even then, I'd want to see it.
B:
They were going to explain why the $13 billion and
how it came about and at the present time they see
no reason for changing their expenditure program
they submitted to you in August.
C:
Well, that'
B:
....as part of your summation.
C:
He may get a very good statement. You know, We
had $11 billion of this in there four or five weeks
ago.
B:
Yeah. That's what he said. First of September you
got it.
C:
Yeah.
B:
Well, could I see you tomorrow morning then, the
first thing? As soon as General Richards gets
ready, and we can all sit down together.
- 5 -
113
C:
Yeah.
B:
Would that be better?
C:
Yeah. Yeah, I'm free except at 2:30 tomorrow.
I've got one date.
B:
Uh huh. I'd like to do it in the morning if I
could.
C:
All right, whenever you get in touch with him,
you give me a ring and we'll all sit down together.
B:
All right. I'd like to.
C:
And then I -- after I get Weldon and his fellows
to work on a statement for Harold here, I want
you to see that, too.
B:
All right.
C:
Because we don't want any statement going out that
doesn't support your position here.
B:
Would you contemplate getting something out by
Friday?
C:
I would plan to have it to release Thursday night
for the Friday morning papers.
B:
That'd be swell.
C:
That would just fit.your schedule.
B:
Just exactly.
C:
That's what I thought and that's what I'm going to
tell them is my schedule on it.
B:
All right.
C:
Okay, Dan.
B:
I'll call you in the morning the first thing.
C:
All right.
B:
Bye.
Regraded Unclassified
114
- 14 -
H.M.JR: We have covered a lot of ground. Herbert,
we are not in the position, intellectually, to give it to
the Congress, because, after all, it is up to the Bureau
of the Budget. That ought to ease your Oregonian
conscience.
MR. GASTON: That is right.
H.M.JR: Willamette Valley.
MR. GASTON: Yes, and Puget Sound.
H.M.JR: Beautiful valley.
MR. GASTON: Both.
H.M.JR: Well, I think we have made real progress, and
I feel this way, that once you get that, it still gives us
time.
Then you fellows - I would raise the question that we
want to re-examine the so-called gap, see - as between
Budget and ourself, so that we are together on that.
MR. BELL: I think we are in excellent shape on the
gap because the figures you have used have been around ninety-
four or ninety-five billions. He had been using the financing
estimate and they are awfully close now. And in your prepara-
tion of those estimates you consult with & lot of people,
among others, Colm, don't you?
MR. LINDOW: Yes, that is right.
MR. HAAS: Colm is coming over to see me tomorrow at
three o' clock. We can checkwith him at that time.
H.M.JR: I feel better tonight than I did. I think
we are making a little progress. This was the damnedest
thing to go up against, this thirteen billion dollars. It
seemed unanswerable. If I could just offer this much advice,
the more light they can throw on the Budget, the better I
am pleased, see? You can see they don't like the Army.
Regraded Unclassified
115
- 15 -
Now, this is the Budget's job. If they want to do it at
press conference, I would tell them for God's sake to
have & careful press 00 onference.
MR. BELL: After all, we have to have our contacts on
financing estimates. We don't go through the Budget for
that.
H.M.JR: No. Well, I think now, Roy, you have got
three things in the works.
MR. BLOUGH: Those three charts you asked for this
morning; the sales tax chart showing the break-down by
necessities of various kinds; the chart showing the taxes
as a percentage of income for various classes of incomes; and
a chart on the nine million taxpayers.
(The Secretary held a telephone conversation with
Mr. Fred Vinson, as follows:)
Regraded Unclassified
116
November 23, 1943
4:41 p.m.
HMJr:
Hello.
Operator:
Judge Vinson.
HMJr:
Hello.
Fred
Vinson:
Hello, Henry.
HMJr:
How are you?
V:
All right, sir.
HMJr:
Fred, I, through Colonel Halsey's office, asked
for an opportunity to see as many of the Democratic
members of the Finance Committee as possible tomorrow,
and I told them I'd like to have them for lunch. Well,
he fixed it up in Halsey's office. They just let me
know
V:
Yes.
HMJr:
for tomorrow. And I'd be very pleased if you'd
go along with me.
V:
Well, Henry, I don't -- I don't believe I can. I've
got -- I've got this coal business that's going to
take me day and night
HMJr:
Oh.
V:
putting the price on coal and some of the mines
are shutting down.
HMJr:
I Bee.
V:
And I've got to get that out. Then, I don't know that
I could add anything to what you would say or do except
just to backstand you.
HMJr:
Well, that's what I want.
V:
I'm ready to do that any time or any place.
HMJr:
Well, I just want to let you know you're welcome.
V:
Well, that's mighty fine but I believe that -- uh --
another thing if I got up there, why, they might want
to talk about some other things.
Regraded Unclassified
117
- 2 -
HMJr:
(Laughs) I see.
V:
(Laughe) Sometimes when you're not around, why, they
can't talk about them.
HMJr:
Well....
V:
They've been wanting me to back up on this wage -- uh --
railroad business, and I don't know how I could back up.
I've already decided it
HMJr:
Yeah.
V:
and it looks to me like I've lost jurisdiction
of it.
HMJr:
Well, we -- I'd like to keep you posted up to the time
I go up there.
V:
Well, that's fine.
HMJr:
Well, Bell has been working all day with Wayne Coy on
the question of getting out a new summation on an
answer to the $13 billion. You see?
V:
Yep.
HMJr:
He just got through talking to Wayne Coy and -- who's
come to an understanding with Jimmy Byrnes.
V:
Well, I was over there when Wayne was talking to
Jimmy and me. It was after the War Mobilization
Committee meeting.
HMJr:
Oh, good.
V:
And Wayne told me about the conversations
HMJr:
Good.
V:
and I was particularly strong that the debt
situation would be stressed.
HMJr:
Yeah.
V:
Present debt and debt as estimated as of the end of
the fiscal year, because that seems to me to be the
material figures as to the question of tax program.
Regraded Unclassified
118
- 3 -
HMJr:
Right. Well -- uh,
V:
You agree to that, don't you?
HMJr:
oh, yes.
V:
And our statements that we made before the Committee
stand because it don't make any difference how much
they save.
HMJr:
Yeah.
V:
What they need to do is to pay some of this debt
while they've got the money and at the same time
keep the house from burning down.
HMJr:
Well, from what Bell tells me and what Wayne Coy told
him, I feel that they can explode that $13 billion
thing.
V:
Oh, yes. That's phoney as far as
HMJr:
Yeah.
V:
as the tax problem is concerned -- or the inflation
problem, either one.
HMJr:
And Wayne Coy has promised us that he'd get it out
not later than Thursday night.
V:
Well, that's fine.
HMJr:
which would be helpful all around.
V:
That's right.
HMJr:
And -- because -- but it's really the Budget's job,
I think, to do that.
V:
Well, that -- the way I recall it, it was left for
Wayne and Budget to prepare it.
HMJr:
Well, it's in the way.
V:
Yep.
HMJr:
Well, thank you.
V:
All right, Henry.
HMJr:
Bye.
Regraded Unclassified
119
- 16 -
H.M.JR: Here they were, fighting to get into the tax
thing, and now it doesn't look so good. Well, I invited
him up to lunch with me, but he is too busy and he is
afraid they might ask him a lot of questions about other
things. He doesn't want to go up.
(Mrs. Klotz entered the conference.)
H.M.JR: I asked Jimmy Byrnes to help me and come over
to lunch with Vinson. He is too busy. He won't bother with
the tax bill. It is all to the good, isn't it? (General
assent)
I had Nathan here and he made a suggestion that I
don't know whether it was good or not, but I pass it along
for what it is worth. He says he thinks that if we would
simply say that these nine million people, or however many
people are going to be excluded from paying an income tax -
their income amounts to so much; let's say it is twenty or
twenty-three million; deduct that from the total national
income and say the rest of it is taxable; and talk in
terms of one hundred and twenty rather than in terms of
one hundred and forty-five, when twenty-three of it you
can't tax, anyway. Well, I am throwing it at you. I don't
know whether it is good or not. They are talking about
four-fifths of the people in terms of one hundred and forty-
five billion.
MR. GASTON: He is talking about the tax base you are
eliminating rather than the number of people.
H.M.JR: I think it is an interesting idea. I am
throwing it at you. I think he said four-fifths of the
income is among five thousand. They say four-fifths of
one hundred and forty-five billion when they should say
four-fifths of one hundred and twenty-odd billion.
MR. SURREY: I think the whole thing has to be explained.
MR. BLOUGH: Would it be all right if I called Nathan
and had him explain it to me?
Regraded Unclassified
120
- 17 -
H.M.JR: Do you (Smith) see any reason why not?
MR. SMITH: No, I don't.
H.M.JR: No, I think he would be complimented.
MR. BELL: I think the debt thing Vinson mentioned is
important. You will have a two hundred million dollar debt
at the end of this year, whatever you do. They ought to
be 8. little worried about that regardless of the change in
appropriation and expenditures.
H.M.JR: Did you say anything about the debt?
MR. SMITH: That is what it is all about, just concen-
trating on the two hundred million you got backed up, and
to hell with what you get cut off of from now on.
H.M.JR: Did you find anything about Mr. Mellon and
Mr. Coolidge?
MR. SMITH: I haven't yet. Shere was looking for Paul.
I haven't heard from him.
Mr. BLOUGH: I haven't checked on that. I don't know.
They haven't reported anything.
H.M.JR: Well, I think this is all right. Now, here
is the point; we are making steady progress. I am going
to Secretary Hull's at nine-thirty. I would like awfully
to have another meeting at eleven with this group. So,
if you could tell General Richards, and I think you ought
to tie up Wayne Coy with an appointment the first thing
in the morning, and be ready for me at eleven.
MR. BELL: I will.
H.M.JR: This has been a good day. I am going to get
a good statement from Roy, now, that will be really some-
thing!
Regraded Unclassified
121
November 23, 1943
MEMORANDUM
To:
Secretary Morgenthau
From: Mr. Gaston
I talked to Walter Lippmann yesterday and to
Ernest Lindley today. I have an appointment with
Raymond Clapper for tomorrow.
Walter Lippmann's general comment was that he
didn't think that the Treasury's case had been well
enough presented to the public. He asked about the
nine million taxpayers whom we propose to excuse, in-
dicating that he thought that the weakness of the
Treasury's case lay there. When I explained to him
who these nine million were and that there would still
be more than thirty-five million taxpayers left and
that 53 per cent of our additional taxes were in the
brackets below $5000, he seemed impressed. He asked
me our arguments against the sales tax. After I had
summarized them he agreed with us in our opposition
to the sales tax.
Ernest Lindley thinks that in your Senate
appearance you should concentrate on the general argu-
ment for substantial increases in taxes both on the
moral ground that we ought topay all that we can afford
to pay now and on the ground of preventing inflation.
He was strongly impressed with the strength of the
argument that it will be unfair to saddle the returning
soldier with & greater debt than is absolutely necessary.
He thought that instead of presenting the same detailed
recommendations for new taxes that we presented to the
House the plea for new taxes ought to be general and
that we should indicate 8. receptive attitude toward
any substantial taxes the Congress sees fit to impose.
He thought that we ought not to take even a completely
unyielding attitude toward the sales tax but should ac-
cept 8. properly modified sales tax, but only if it were
a minor part of a program yielding very substantial new
revenue. He thought the Congressional argument against
subsidies could be completely turned on them as incon-
sistent with their attitude on taxation.
wr
Regraded Unclassified
122
November 23. 1943
Herbert Gaston
The Secretary
Evidently you had a very successful interview with
Walter Lippmann and I, therefore, suggest that you also
send for Ernest Lindley and several other of the prominent
columnists and give them the same kind of talk that you
did to Lippmann. I would appreciate it if you would ...
as many of them as possible between now and Friday night
so you could give me the benefit not later than Saturday
morning. Then we will have to finally knock my tax state-
ment into shape. Thank you. 0 Kuy
is
Regraded Unclassified
123
November 23, 1943
Herbert Gaston
The Secretary
If you agree with me that it is worth while seeing the
different columnists, I wish you would include Ray Clapper
on your list.
Regraded Unclassified
124
POLYICTORY
INTERDEPARTMENTAL WAR SAVINGS BOND COMMITTEE
BUY
UNITED
STATES
WAR
WASHINGTON
SOMOS
STANDS
OFFICE OF CHAIRMAN
11-23-43
DEPARTMENT
TRIFIDEN TREASURY
THIRD WAR LOAN DRIVE
THE WHITE HOUSE
The President
$5,000
Mr. Casey
10,000
Mr. Latta
11,000
Admiral Leahy
4,000
Miss Ada S. Smith
2,000
Mrs. Roosevelt
800
Judge Rosemans
1,200
Admiral Brown
1,000
Mr. Niles
1,000
Mr. Early
500
Mrs. Thompson
500
Mr. McIntyre
500
Mr. Hopkins
225
Mr. Currie
250
General Watson
200
$38,175
All other
304
Bond purchases (cash
and pay-roll allotment $38,479
Quota
$6,167
Percentage of quota
624.0
Regraded Unclassified
TO:
125
D
The Secretary
This is what
carperation does.
DWB
11/23
Office of the Under Secretary
n
126
TREASURY BILLS
Nov. 26
Nov. 18
Nov. 12
Nov. 4
cunt offered
$1,000 M
$1,000 M
$1,000 M
$1,000 M
de tendered
1,622
1,222
1,247
1,143
cepted at fixed rate
78
74
76
67
W rate
.360%
.297%
.340%
.336%
Igh rate
.376
.376
.376
.376
rerage rate
.376
.375
.3757
.375
mount in New York
$684 W
$627 M
$642 M
$535 M
count in Chicago
75
129
129
159
mount in San Francisco
81
64
74
74
lunt in balance of country
160
180
155
232
vember 23, 1943.
Regraded Unclassified
SECRE
127
FORVICTORY
treasury DEPARTMENT
BUY
UNITED
STATES
WAR
PROCUREMENT DIVISION
BONDS
AND
STAMPS
WASHINGTON 25
VFICE OF THE DIRECTOR
November 23, 1943
MEMORANDUM TO THE SECRETARY:
There is submitted herewith the weekly
report of Lend-Lease purchases.
For the purpose of assisting in maintaining
the maximum production of steel, we have been re-
quired by the War Production Board to accept, for
the account of Lend-Lease, some premium cost pro-
duction of steel. This practice is being discon-
tinued by the War Production Board as of December 1,
1943.
Clifton.E. Mack
Director of Procurement
Regraded Unclassified
128
LEND-LEASE
SECRET
TREASURY DEPARTMENT, PROCUREMENT DIVISION
STATEMENT OF ALLOCATIONS, OBLIGATIONS (PURCHASES) AND
DELIVERIES TO FOREIGN GOVERNMENTS AT U. S. PORTS
AS OF NOVEMBER 17, 1943
(In Millions of Dollars)
Administrative
Miscellaneous &
Total
U.K.
Russia
China
Expenses
Undistributed
Allocations
$3974.6
$1977.1
$1558.2
$109.8
$11.0
$318.5
(3974.1)
(1977.1)
(1557.9)
(109.8)
(11.0)
(318.3)
Purchase Authoriza-
$3253.8
$1713.7
$1305.2
$43.8
-
$191.1
tions (Requisitions)
(3242.4)
(1710.1)
(1296.2)
(43.7)
-
(192.4)
Requisitions Cleared
$3158.2
$1662.7
$1280.8
$43.4
-
$171.3
for Purchase
(3156.9)
(1660.9)
(1278.8)
(43.4)
-
(173.8)
Obligations
$3040.5
$1631.3
$1229.6
$43.3
$8.4
$127.9
(Purchases)
(3038.3)
(1628.8)
(1229.2)
(43.3)
(8.4)
(128.6)
Deliveries to Foreign
$1464.7
$1010.9
$412.9
$19.8
-
$21.1
Governments at U. S.
(1436.7)
(991.0)
(405.6)
(19.7)
-
(20.4)
Ports*
*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 received from the
foreign governments.
Note: Figures in parentheses are those shown on report of November 10, 1943.
Regraded Unclassifie
129
SECRET
EXPLANATION OF DIFFERENCES.
The reductions in Purchase Authorizations,
Requisitions Cleared and Obligations in the
Miscellaneous Column are 8. result of adjustments
of requisitions estimates to actual contracts.
Regraded Unclassified
NX130
130
TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION
DATE
Secretary Morgenthau
TO
NOV 23 1943
FROM
Randolph Paul
Re: Argentina
On Saturday, November 20, John Pehle attended for
Herbert Gaston, who was out of the city, a meeting of
the Censorship Policy Board of which the Postmaster
General is Chairman. Vice President Wallace was present
1
at the meeting and made several remarks concerning
Argentina. These remarks were made in the course of the
discussion with regard to the termination of censorship
as hostilities cease. The Vice President said that al-
though he recognized that censorship must stop with the
end of the war he thought we ought to bear in mind that
Argentina and the Fascist tendencies which the present
government has shown may be a problem to us even after
the war.
In view of the Vice President's feelings on this
matter you may wish to discuss with him the Treasury's
views with respect to the freezing of Argentina.
Arp
Regraded Unclassified
131
TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION
DATE
TO
Secretary Morgenthau
FROM Randolph Paul
NOV 23 1943 x
Subject: Transfers of Argentine Funds.
I am informed that during the week ending November 20,
$1,727,000 was transferred from Argentine account to the
accounts of other countries, including Sweden, Uruguay, and
Panama, and that $6,220,000 was transferred from Argentine
account to the Central Bank account.
I am further informed that the third shipment of
$1,250,000 of Argentine gold, formerly held by the Federal
Reserve Bank of New York for Central Bank account, left
New Orleans for Argentina early in the morning of November 15
on the SS Iguazu, and that the fourth shipment of $1,250,000
of such gold left New Orleans for Argentina early in the morning
of November 17 on the SS San Juan.
R.E.P.
By ggoen
Regraded Unclassified
132
NOV 23 1943
My dear Mr. Hull:
Reference is made to your letter of November 19,
1943 (Reference FD), relating to the servicing on
December 1, 1943, of the French Government 7% dollar
bonds due 1949.
Pursuant to your request, this Department is
denying the request of the French North African
authorities to transfer funds under their control for
the servicing of this issue and in lieu thereof is
issuing an appropriate directive license for the trans-
fer of the necessary funds from official accounts of
the former French Government in the menner requested
by you.
Sincerely yours,
(Signed) H. Morgenthau, JI.
The Honorable
Cordell Hall,
Secretary of State.
AUFox:rd 11/20/43
Regraded Unclassified
133
11/13/43
ATTENTION: HR. KIMBALL
You are instructed to issue a directive license to the French
American Banking Corporation, New York, directing them, pursuant to the provi-
sions of Section 5(b) of the Trading with the enemy Act, as amended, to charge
the account with them in the name of the Paierie Generale Aux Etats Unis with
the our of $2,400,000 and to pay this amount to J. P. Morgan & Company, In-
corporated, New York, for credit to an account entitled "Government of the
French Republic 7% Bonds due 1949, Account for Payment of Bonds Drawn for
Redemption on December 1, 1943°
approved "H.M.Jr."
AUFoxidg 11/6/43
Regraded Unclassified
134
DRAFT OF CABLE TO BE SENT TO HOFFMAN FROM THE SECRETARY OF
THE TREASURY.
For your information the French North African authorities
requested on October 15 that $2,400,000 be transferred from the
account in the name of "Tresorier General Aux Etats Unis du
Comite Francais de la Liberation Nationale - General Account"
to J. P. Morgan & Company, Inc., for the purpose of providing
funds to make payments to presentors of the French Government
7% Loan due December 1949 which were drawn for redemption on
December 1, 1943. The State Department has objected to the use
of such funds and has requested that the transfer be denied and
instead has requested that funds for the purpose of servicing
this issue be made available by directive license from the
account with the French American Banking Corporation, New York,
of the former French Government in the name of "Paierie Generale
Aux Etats Unis." In accordance with the request of the State
Department, Treasury is disapproving the transfer of the North
African funds and is directing the necessary transfer from the
former French Government account in the name of "Paierie Generale
Aux Etats Unis."
(Signed) a. Morgenthan, Jr.
AUFox: JWPehle:rd 11/6/43
Regraded Unclassified
135
TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION
DATE NOV 23 1943
Secretary Morgenthau
TO
FROM Randolph Paul
On October 15, 1943, the French North African authorities
requested permission to transfer from their funds in the United
States $2,400,000 to J. P. Morgan & Company, Inc., New York,
for the purpose of providing the balance of the funds necessary
to service on December 1, 1943, the French Government 7% loan
due 1949. The French North African authorities may have de-
sired to utilize their funds for this purpose for political
reasons. For the same reasons the State Department has objected
to the use of such funds for the servicing of this issue and
has requested Treasury to deny the request of the French North
African authorities and to issue an appropriate directive trans-
ferring funds from the account of the former French Government
in the name of "Paierie Generale Aux Etats Unis" for the purpose
of servicing the issue on December 1, 1943.
The necessary directive, the letter from State of November 19
and our proposed reply, together with a wire reporting this situation
to Hoffman, Treasury representative in North Africa, are attached
for your approval.
R.E. F.
Byggeton
Regraded Unclassified
-
check
THE DECRETARY OF STATE
1
a
J
DEPARTMENT OF STATE
WASHINGTON
November. 19. 1943
In reply refer to
PD
My dear Mr. Morgenthau:
I have your letter of November 11, 1943 regarding
provision for the December 1, 1943 service requirements
of the French Government 7% dollar bonds due 1949. The
case involves a discussion RB to whether these bonds
should be serviced and, if 80, the source of funds and
the manner in which the requisite sum of $2,400,000 would
be transferred to the paying agent to permit the actual
disbursement of only some $200,000 to $300,000 to bond-
holders with the balance remaining indefinitely blocked
as security for the legal protection of the paying agent.
You set forth in your letter three possible choices
in the present case: (1) To permit the French Committee
of National Liberation to use its funds; (2) Default; and
(3) Transfer of blocked official funds of the former French
Government. I am informed that this Department carefully
deliberated each of these courses of action in arriving
at the decision communicated in its letter of November 5,
1943,
The Treasury Department will recall that the President
in his statement of August 26, 1943, made in connection
with the establishment of the French Committee of National
Liberation, indicated that this Government recognized the
Committee as functioning within specific limitations
during the war. Under the present circumstances, this
Department would regard 86 very undesirable the issuance
of a license to permit the French Committee of National
Liberation to provide for the service of these bonds.
The compliance with the request of the Committee at this
time
The Honorable
POLYICTORY
BUY
Henry Morgenthau, Jr.,
ENTRED
Secretary of the Treasury.
Regraded Unclassified
-2-
time would make it appear as though this Government
recognizes the Committee as the authority having responsi-
bility for external obligations of France. The Treasury
Department 18 therefore requested to deny the application
pending before it,
The Department of State would also regard the foreing
of a default in these bonds 8.8 undesirable in view of the
abundant record of special efforts made by representatives
of the respective French factions to prevent default aris-
ing only from the effects of laws of the United States.
As you know, it has been the policy of this Depart-
ment, wherever possible, to give effect to known desires
of the people of occupied countries to continue service
of their dollar bonds in the United States out of such of
their funds 8.8 could be made available for the purpose.
In the case of certain occupied countries it has been
possible to give effect to this policy through licenses
issued for accredited representatives of recognized govern-
ments whose authority to receive, hold and dispose of the
funde in question has been effective because of the issuance
of certifications by the Secretary of State to that effect
pursuant to Section 25B of the Federal Reserve Act. This
procedure is not available in the special circumstances
affecting France. It 18 believed, therefore, that the
transfer of the necessary provision under Treasury directive
in the manner requested in this Department's letter of
November 5, 1943, to satisfy the legal requirements from
official funds of the former French Government 1s justified,
and this Department renews that request.
Sincerely yours,
Corduce shee
Regraded Unclassified
138
Given out by Mr. White at 8. press conf.
139
November 23, 1943
STATEMENT BY SECRETARY MORGENTHAU:
When the Treasury made public the tentative proposal for an
International Stabilization Fund, I said that we were studying means
of encouraging and facilitating international investment for reconstruc-
tion and development. A few weeks ago I appeared before the Congressional
Committees and summarized for them the principles which we believe should
guide us in the establishment of a United Nations Bank for Reconstruction
and Development.
The technical staffs of the Treasury and other interested departments
and agencies have now prepared a tentative proposal for such a Bank.
This tentative proposal is being sent to the Finance !linisters of the
United Nations and the countries associated with them, for consideration
and for study by their technical staffs. The Finance Ministers have been
informed that this tentative proposal does not represent the official
views of this Government but it is an indication of the views held by our
technical staffs.
Tie are releasing for publication the tentative proposal for a United
Nations Bank for Reconstruction and Development and a covering memorandum
on the problem of international investment. These two documents, sent to
the Finnnce Ministers, are being released to make them available for
public discussion. It is our intention to discuss the tentative proposal
with business, banking and other interested groups in this country.
The technical staffs of the Treasury and other departments of this
Government are of the opinion that an International Stabilization Fund
and a Bank for Reconstruction and Development could help provide a sound
financial foundation on which private enterprise can build a prosperous
world economy.
Regraded Unclassified
STRIGTLY CONFIDENTIAL
140
A United Nations Bank
For Reconstruction and Development
One of the important international economic and financial
problems which will confront the United Nations at the end of
the war will be the unprecedented need for foreign capital.
In the areas devastated by war or plundered and ravaged by
the enemy, factories and mines, public utilities and railroads,
public buildings and public works will have to be repaired or
restored. In all of the United Nations, industries now pro-
ducing war goods will require capital for reconversion to
peacetime production. Finally, in many areas of the world,
large investment will be needed for industrial, agricultural
and commercial development.
Countries whose productive capacity has been seriously
impaired by war will find that their industries cannot pro-
vide the capital goods and their people cannot provide the
savings they require for reconstruction. Most non-industrial
countries will of necessity be dependent upon foreign invest-
ment to acquire the funds for the purchase of machinery,
equipment, and other capital goods for development. And even
Regraded Unclassified
141
- 2 -
in those countries where a considerable part of the need for
capital can be met locally, there will be some need for foreign
capital to supplement the funds that can be raised at home.
With the return of an assured peace, private financial
agencies may be expected to supply most of the needed short-
term foreign capital. When the shipping situation is improved
and peacetime industry here and abroad has recovered, many
business firms will be eager to sell their products abroad
on reasonable and even generous credit terms. And banks
likewise will haston to expand their foreign business, reopen-
ing and establishing branches abroad, and assisting in the
financing of international trade.
It is not unreasonable to hope that with the return of
peace there will also be a gradual resumption of long-term
international investment, particularly in the form of the
establishment of foreign branch plants and the acquisition
of shares in established foreign enterprises. With the
growth of confidence in monetary stability, foreign invest-
ments will gradually assume the form of publicly floated
loans to governments and municipalities, and to public
utilities and other industries.
Regraded Unclassified
142
- 3 -
This flow of private capital to war stricken countries
will be encouraged by an adequate program of international
relief and rehabilitation which helps to quickly restore to
a working basis the economic life of those countries.
Another, and possibly even more important, stimulant to
foreign investments, would be the existence of an interna-
tional agency, such as the International Stabilization Fund,
designed to promote stability of foreign exchange rates and
freedom from restrictions on the withdrawal of earnings.
Such an agency could do much to enhance the attractiveness
of foreign investments.
While there will undoubtedly be substantial amounts of
long-term foreign investment even in the early postwar period,
the flow of capital to countries greatly in need of foreign
capital is likely to be inadequate for many years to come.
Private capital will understandingly hesitate to venture
abroad in anything like the required volume. It has
suffered too many losses from war, from depreciating cur-
rencies, from exchange restrictions, and from business
failures and defaults. There is little evidence to
justify the hope that in the years immediately after the
Regraded Unclassified
143
- 4 -
war investors will lend the large sums that can be
economically used in foreign countries.
Obviously, it would be desirable to encourage in
every way, the provision of capital for productive pur-
poses through the usual private investment channels, and
to the extent that private investment is inadequate, to
provide supplemental facilities. The problem is funda-
mentally an international problem and only an interna-
tional governmental agency equipped with broad powers
and large resources can effectively encourage private
capital to flow abroad in adequate amounts and provide
a part of the capital not otherwise available.
The primary aim of such an agency should be to
encourage private capital to go abroad for productive
investment by sharing the risks of private investors and
by participating with private investors in large ventures.
The provision of some of the capital needed for reconstruc-
tion and development, where private capital is unable to
take the risk, is intended to remain secondary in the
operations of such an agency. It should, of course,
scrupulously avoid undertaking loans that private investors
are willing to make on reasonable terms. It should perform
only that part of the task which private capital cannot
do alone.
Regraded Unclassified
144
- 5 -
The need for foreign capital will be so great and the
provision of adequate capital so important that it would be
extremely shortsighted to neglect this urgent international
problem. If private capital should suffice there would
then be little for an international agency to do, beyond
encouraging private investment. If, however, private
capital were to prove unable fully to meet the needs, then
such an international agency would be able to fill the breach
until private capital again flowed freely and the demand
for foreign capital throughout the world became less urgent.
It is imperative that we recognize that the investment
of productive capital in undeveloped and in capital needy
countries means not only that those countries will be able
to supply at lower costs more of the goods the world needs,
but that they will at the same time become better markets
for the world's goods. By investing in countries in need.
of capital, the lending countries, therefore, help them-
selves as well as the borrowing countries. If the capital
made available to foreign countries would not otherwise
have been currently employed, and if it is used for produc-
tive purposes, then the whole world is truly the gainer.
Foreign trade everywhere will be increased; the real cost
of producing the goods the world consumes will be lowered;
Regraded Unclassified
145
- 6 -
and the economic well-being of the borrowing and lending
countries will be raised.
One great contribution that the United Nations can
make to sustained peace and world-wide prosperity is to
make certain that adequate capital is available on reason-
able terms for productive uses in capital-poor countries.
With abundant capital, the devastated countries can move
steadily toward rehabilitation and a constantly improving
standard of living. Nothing could be more conducive to
political stability and to international collaboration.
Without adequate supplies of capital, however, recovery
in Europe and Asia will be slow and sporadic, and economic
discontent and international bitterness will in time assume
disturbing proportions. To spend hundreds of billions to
fight a war thrust upon us, and then to balk at investing
a few billions to help assure peace and prosperity would
appear to be 8 singularly unwise policy.
Accompanying this memorandum is a draft proposal for
a Bank for Reconstruction and Development of the United
and Associated Nations. The draft was prepared by the
technical staff of the United States Treasury in consulta-
tion with the technical staffs of other departments of
this Government. The proposal has neither official status
Regraded Unclassified
146
- 7 -
nor the approval of any department of this Government. It
is in outline form touching on the more important points and
is intended only to stimulate thoughtful discussion of the
problem in the hope that such discussion will call forth
constructive criticism, suggestions, and alternative pro-
posals for possible leter submission to the appropriate
authorities and to the public.
A. United Nations Bank for Reconstruction and Develop-
ment is proposed AS snother international agency needed to
help attain and maintain world-wide prosperity after the
wor. It is designed BE A companion agency to an International
Stabilization Fund. Each agency could stand and function
effectively without the other; but the establishment of such a
Bank would make easier the task of an International Stabili-
zation Fund, and the successful operation of an International
Stabilization Fund would enhance the effectiveness of the Bank.
Together, the two institutions could help provide a sound
financial foundation on which private enterprise can build A
prosperous world economy.
Henry Morgenthau, Jr.,
Secretary of the Treasury.
Washington, D. C.
November, 1943.
Regraded Unclassified
147
STRICTLY CONFIDENTIAL
U. S. Treasury
November, 1943
Preliminary Draft Outline
of a Proposal for
A United Nations Bank
For Reconstruction and Development
Preamble
1. The provision of foreign capital will be one of the
important international economic and financial problems of
the postwar period. Many countries will require capital for
reconstruction, for the conversion of their industries to
peacetime needs, and for the development of their productive
resources. Others will find that foreign investment provides
a growing market for their goods, Sound international invest-
ment can be of immense benefit to the lending as well as to
the borrowing countries.
2. Even in the early postwar years it may be hoped
that a considerable part of the capital for international
investment will be provided through private investment chan-
nels. It will undoubtedly be necessary, however, to encour-
age private investment by assuming some of the risks that will
be especially large immediately after the war and to supple-
mcnt private investment with capital provided through inter-
national cooporation. The United Nations Bank for Recon-
struction and Development is proposed as & permanent institu-
tion to encourage and facilitato international investment for
sound and productive purposes.
3. The Bank is intended to cooperato with private finan-
cial agencies in making available long-term capital for recon-
struction and development and to supplement such invcstment
where private agencies are unable to meet fully the legitimato
needs for capital for productivo purposes, The Bank would
make no loans or investments that could be secured from pri-
vate investors on reasonable terms. The principal function of
the Bank would be to guarantee and participate in loans made
by private investment agencies and to lend directly from its
own resources whatever additional capital may be needed. The
facilities of the Bank would be available only for approved
governmental and industrial projects which have been guaren-
teed by national governments. Operating under these princi-
ples, the Bank should be a powerful factor in encouraging the
provision of private capital for international investment.
4. By making certain that capital 18 available for pro-
ductive uses on reasonable terms, the Bank can make an 1m-
portant contribution to enduring pence and prosperity. With
adequate capital, countries affected by the war can move
stendily toward reconstruction, and the newer countries can
undertake the economic development of which they are capable.
International investment for these purposes can be a signifi-
cant factor in expanding trade and in helping to maintain a
high level of business activity throughout the world.
Regraded Unclassified
I. The Purposes of the Bank
148
1. To assist in the reconstruction and development of
member countries by cooperating with private financial
agencies in the provision of capital for sound and
constructive international investment.
2. To provide capital for reconstruction and development,
under conditions which will amply safeguard the Bank's
funds, when private financial agencies are unable to
supply the needed capital for such purposes on reason-
able terms consistent with the borrowing policies of
member countries.
3. To facilitate & rapid and smooth transition from &
wartime economy to a peacetime economy by increasing
the flow of international investment, and thus to help
avoid serious disruption of the economic life of mem-
ber countries.
4. To assist in raising the productivity of member countries
by helping to make available through international col-
laboration long-term capital for the sound development of
productive resources.
5. To promote the long-range balanced growth of international
trade among member countries.
II. Capital Structure of the Bank
1. The authorized capital shall be equivalent to about
$10 billion consisting of shares having a par value
equal to $100,000.
2. The shares of the Bank shall be non-transferable, non-
assessable, and non-taxable. The liability on shares
shall be limited to the unpaid portion of the subscrip-
tion price.
3. Each government which is B. member of the International
Stabilization Fund shall subscribe to & number of shares
to be determined by an agreed upon formula. The formula
shall take into account such relevant data as the
national income and the international trade of the mem-
ber country.
Such & formula would make the subscription of the United
States approximately one-third of the total.
4. Payments on subscriptions to the shares of the Bank shall
be made as follows:
a. The initial payment of each member country shall be
20 percent of its subscription, some portion of which
(not to exceed 20 percent) shall be in gold and the
remainder in local currency. The proportions to be
paid in gold and local currency shall be graduated
according to an egreed upon schedule which shall take
into account the adcquacy of the gold and free foreign
exchange holdings of each member country.
Regraded Unclassified
149
- 3 -
II-4 b. The member countries shall make the initial pay-
ments within 60 days after the dato set for the
opcrations of the Bank to begin. The remainder
of their respective subscriptions shall be paid
in such amounts and at such times CS the Board
of Directors may determine, but not more than 20
percent of the subscription may bc called in any
one year.
C. Colls for further payment on subscriptions shall
be uniform on all shares, and no calls shall bc
made unloss funds are needed for the opcrations
of the Bank. The proportion of subsequent pay-
ments to be made in gold shall be determined by
the schedule in II-4-c LS it applics to each mem-
ber country at the time of sach call.
5. A substantial part of the subscribed capital of the
Bank shall be reserved in the form of unpaid sub-
scriptions 08 n surety fund for the sccurities guaran-
tood by the Bank or issued by the Bank.
b. When the cash resources of the Bank are substantially
in CXCOSS of prospective needs, the Board may return,
subject to future call, uniform proportions of the sub-
scriptions. When the local currency holdings of the
Bunk exceed 20 percent of the subscription of any mem-
ber country, the Board may arrange to repurchase with
local currency some of the shares hold by such a
country.
7. Ench member country agrees to repurchase each year its
local currency held by the Bank amounting to not more
than 2 percent of its paid subscription, paying for it
with gold; provided, however, that:
C. This requirement may bc generally suspended for
any year by a three-fourths vote of the Board.
b. No country shall be required to repurchase local
currency in any givon year in excess of one-half
of the addition to its official holdings of
gold during the precoding year.
C, The obligation of C member country to repurchase
its local currency shall be limited to the amount
of the local currency paid on its subscription.
8. All member countries agree that all of the local cur-
rency holdings cnd other assets of the Bank located in
their countries shall be free from any special restric-
tions 48 to their usc, except such restrictions as are
consented to by the Bank, and subject to IV-13, below.
9. The resources and the facilities of the Bank shall be
used exclusively for the benefit of member countries.
Regraded Unclassified
150
- 4 -
III. The International Monetary Unit
1. The monetary unit of the Bank shall be the Unitas of
the International Stabilization Fund (137-1/7 grains
of fine gold, that 1s, equivalent to $10 U.S.).
2. The Bank shell keep its accounts in terms of unites.
The local currency assets of the Bank are to be
guaranteed against any depreciation in their value in
terms of unitas.
IV. Powers and Operations
1. To achieve the purposes stated in Section I, the Bank
may guarantee, participate in, or make lorns to any
member country and through the government of such
country to any of its political subdivisions or to
business or industrial enterprises therein under con-
ditions provided below.
&. The payment of interest and principal is fully
guaranteed by the national government.
b. The borrower is otherwise unable to secure the
funds from other sources, even with the national
government's guaranty of repayment, under con-
ditions which in the opinion of the Bank are
reasonable.
C. A competent committee has made a careful study
of the merits of the project or the program
and, in & written report, concludes that the loan
would serve directly or indirectly to rmise the
productivity of the borrowing country and that
the prospects are favorable to the servicing of
the loan. The majority of the committee making
the report shall consist of members of the tech-
nical staff of the Bank. The committee shall in-
clude an expert selected by the country requesting
the loan who may or may not be L member of the
technical staff of the Bank.
d. The Bank shall make arrangements to assure the
use of the proceeds of any loan which it guer-
antees, participates in, or makes, for the pur-
poses for which the loan was approved.
e. The Bank shall guarantee, participate in or make
loans only at reasonable rates of interest with
a schedule of repayment approprinte to the
character of the project and the balance of pay-
ments prospects of the country of the borrower.
2. In accordance with the provisions in IV-1, above, the
Bank may guarantee in whole or in part loans made by
private investors provided further:
Regraded Unclassified
151
- 5 -
IV-2 a. The rate of interest and other conditions of the
loan are roasonable.
b. The Bank is compensated for its risk in guarantee-
ing the loan.
3. The Bank may participate in loans placed through the
usual investment channels, provided all the conditions
listed under IV-1 above are met except that the rote
of interest may be higher than if the loans were guar-
anteed by the Bank.
4. The Bank may encourage and facilitate international
investment in equity securities by securing the guar-
antoe of governments of conversion into foreign ex-
change of the current earnings of such foreign hold
investments. In promoting this objective the Bank may
Llso participate in such investments, but its aggre-
gate perticipation in such equity sccurities shall not
exceed 10 percent of its paid in capital.
5. The Bank may publicly offer any securities it has
proviously acquired. To facilitate the placing of
such sccurities, the Bank mr.y, in its discretion,
guarantee them.
6. The Bank shall make no loans or investments that can bc
placed through the usual private invostment channels on
reasonable terms. The Bank shall by regulation prescribo
procedure for its operations that will assure the appli-
cation of this principle.
7. The Bank shall impose no condition upon a loan (.S to the
particular member country in which the proceeds of the
loan must be spent; provided, however, that the procceds
of L. loan may not be spent in any country which is not =
member country without the approval of the Bank.
8. The Bank in making loans shall provide that:
B. The foreign exchange in connection with the
project or program shall bc provided by the
Bank in the currencies of the countries in
which the proceeds of the loan will be spent
and only with the approval of such countries.
b. The local currency nceds in connection with
the project shall be largely financed locally
without the assistance of the Bank.
C. In special circumstances, where the Bank con-
siders that the local part of any project
cannot be financed at home except on very un-
reasonable torms, it can lond that portion to
the borrower in local currency.
d. Where the developmental program will givc riso
to in increased need for foreign exchange for
purposes not directly needed for that program
yot rosulting from the program, the Bank will
provide an appropriate part of the loan in gold
or desired foreign exchange.
Regraded Unclassified
- 6 -
152
IV-9. When G losn is made by the Bank it shall credit the
Locount of the borrower with the amount of the loan,
Payment shall be made from this account to meet
drafts covering audited expenses.
10. Loans participated in or made by the Bank shall
contain the following payment provisions:
C. Payment of intcrest due on loans shall be
made in currencies acceptable to the Bank
or in gold. Interest will be payable only
on amounts withdrawn.
b. Payment on account of principal of a loan
shall be in currencies acceptable to the Bank
or in gold. If the Bank and the borrower
should 30 agree at the time a loan is made,
payment on principal may be in gold, or at
the option of the borrower, in the currency
actually borrowed.
C. In event of an acute exchange stringency the
Bank may in its judgment accept for periods
not excooding 3 years at a time the payments
of interest and principal in local currency.
The Bank shall arrango with the borrowing
country for the repurchase of such local cur-
roncy over a'pcriod of years on appropriate
terms that safeguard the value of the Bank's
holdings of such currency.
d. Payments of interest and principal, whether
made in momber currencies or in gold, must
be equivalent to the unitas value of the loan
and of the contractual interest thereon.
11, The Bank may lovy a charge against the borrower for
its expenses in investigating any loan placed,
guaranteed, participated in, or made in whole or in
part by the Bank.
12, The Bank may guarantee, participate in, or make loans
to international governmental agencies for objectives
consonant with the purposes of the Bank, provided
that one-half of the perticipants in the international
agencios are members of the Bank.
13. In considering any application to guarantee, partici-
pate in, or make a loan to & member country, the Bank
shall give duc regard to the effect of such a loan on
business and financial conditions in the country in
which the loan is to be spont, and sholl accordingly
obtain the consent of the country affected.
14. At the request of the countries in which portions
of the loan are spont, the Bank will repurchase for
gold or needed foreign exchange a part of the ex-
pendituros in the currencies of those countries
made by the borrower from the proceeds of the loan,
Regraded Unclassified
- 7 -
153
IV-15. With the approval of the representatives of the
governments of the member countries involved, the
Bank may engage in the following operations:
0. It may issue, buy or sell, pledgo, or
discount any of its own sccurities and
obligations, or securities and oblign-
tions taken from its portfolio, or secur-
itics which it has guarantood.
b. It may borrow from any member governments,
fiscal agencies, central banks, stabilization
funds, private financial institutions in
member countries, or from international finan-
cial agencies.
C. It may buy or soll foreign exchange, after
consultation with the International Stabili-
zation Fund, where such transactions are
necessary in connection with its operations,
16. The Bank may act as agent or correspondent for the
governments of member countrics, their contral banks,
stabilization funds and fiscal agencies, and for
international financial institutions.
The Bank may act as trustoc, registrar or agent in
connection with loans guaranteed, participated in,
made, or placed through the Bank.
17. Except es otherwise indicated the Bank shall doal
only with or through:
C. The governments of member countries, their
central banks, stabilization funds and fiscal
agencica.
b. The International Stabilization Fund and any
other international financial agencies owned
prodominantly by member governmonts.
The Bank may, nevertholoss, with the approval of
the member of the Board representing the government
of the country concerned doal with the public or
institutions of member countries in its (the Bank's)
own socurities or socurities which it has guaranteed,
18. If the Bank shall declare any country as suspended
from memborship, the member governments and their
agencies agree not to extend any financial assistance
to that country without the approval of the Bank
until the country has boon restored to mcmbership.
19. The Bank and its officers shall scrupulously nvoid
interference in the political affairs of any member
country. This provision shall not limit the right
of an officer of the Bank to participate in the
political life of his own country.
Regraded Unclassified
154
- 8 -
IV-19- The Bank shall not be influenced in its decisions
with respect to applications for loans by the
political character of the government of the
country requesting a loan. Only economic considern-
tions shall be relevant to the Bank's decisions.
V. Management
1. The administration of the Bank shall be vested in &
Board of Directors composed of one director and one
alternate appointed by each member government in &
manner to be determined by it.
The director and alternate shall serve for a period
of three years, subject to the pleasure of their
government. Directors and alternates may be reap-
pointed.
2. Voting by the Board shall be as follows:
B. The director or elternate of each member country
shall be entitled to cast 1,000 votes plus one
vote for cach share of stock held. Thus a
government owning one share shall cast 1,001
votes, while a government having 1,000 shares
shall cast 2,000 votes.
b. No country shall cast more than 25 percent of
the asgregate votes.
c. Except where otherwise provided, decisions of
the Borrd of Directors shall be by simple
majority of the votes cast, each member of the
Board casting the votcs allotted to his govern-
mont. When deemed to be in the best interests
of the Bank, decisions of the Board may be made,
without a meeting, by polling the directors on
specific questions submitted to them in such
manner as the Board shall by regulation provide.
3. The Board of Directors shall solect & Prosident of the
Bank, who shall bc the chief of the operating staff of
the Bank and ex-officio a member of the Board, and one
or more vico presidents. The President and vice presi-
dents of the Bunk shall hold office for four years,
shall be cligible for reolection, and may be removed
for cause nt any time by the Board. The staff of the
Bank shall be selected in accordance with regulations
cstablished by the Board of Directors.
4. The Board of Directors shall appoint from Among its
members, in Executive Committoe of not more than nine
mcmbers. The President of the Bank shall bc en CX-
officio member of the Executive Committee.
Regraded Unclassified
155
- 9 -
V-4-The Executive Committee shall be continuously avail-
able at the head office of the Bank and shall exer-
cise the authority delegated to it by the Board, In
the r.bsence of any member of the Executive Committee,
his clternate on the Board shall not in his place.
Members of the Executive Committee shall receive ap-
propricte remuneration.
5. The Board of Directors shall select an Advisory
Council of seven members. The Council shall advise
with the Board and the officers of the Bank on mat-
ters of general policy. The Council shrill meet
annually and on such other occasions 1.8 the Board
may request.
The members of the Advisory Council shull be selected
from men of outstanding ability, but not more than
one member shall be selected from the same country.
They shall serve for two years, and the term of any
member mL.y be renewed. Members of the Council shell
be paid their expenses and & remuneration to be fixed
by the Board.
6, The Board of Directors may appoint such other com-
mittees LB it finds necessary for the work of the
Bank. It mLy also appoint advisory committees chosen
wholly or particlly from persons not regularly cm-
ployed by the Bank.
7. The Board of Directors may ct any meeting authorize
any officers or committees of the Bank to exercise
any specified powers of the Board except the power
to make, guarantee or participate in loans. Such
powers shill be excrcised in a manner consistent with
the genoral policies and practices of the Board.
The Board may by a three-fourths votc delegate to
the Executive Committee the power to make, guarantee
or participate in loans in such amounts LB may be
fixed by the Board. In passing upon applications for
loans, the Executive Committee shall act under the
requirements specified for cach type of loan.
8. A member country fuiling to meet its financial obli-
gations to the Bank may be declared in default and it
may bc suspended from membership during the period of
its default provided n majority of the member countries
so decide. While under suspension, the country shall
be denied the privileges of membership, but shall be
subject to the obligations of membership. At the end
of one year the country shill be automatically dropped
from mcmbership in the Bank unless it has been restored
to good standing by 0 majority of the member countries.
If C member country clects to withdraw or is dropped
from the Bank its shares of stock shall, if the Bank has
& surplus, be repurchased at the price prid. If the
Brnk's books show Γ. loss, such country shall bear C pro-
portionate share of the loss. The Bank shall have 5
years in which to liquidate its obligations to 1. momber
withdrawing or dropped from the Bank.
Regraded Unclassified
156
- 10 -
v-8- Any member country that withdraws or is dropped from
the International Stabilization Fund, shall relinquish
its membership in the Bank unless three-fourths of the
member votes favor its remaining as a member.
9. The yearly net profits shall be applied as follows:
6. All profits shall be distributed in proportion
to shares held, except that one-fourth of the
profits shall be applied to surplus until the
surplus equals 20 percent of the capital.
b. Profits shall be payable in & country's local
currency, or in gold at the option of the Bank.
10. The Bank shall collect and make available to member
countries and to the International Stabilization Fund
financial and economic information and reports rc-
lating to the operations of the Bank.
Mumber countries shall furnish the Bank with all
information and data that would facilitate the
operations of the Bank.
Regraded Unclassified
157
25
NOV 2 1343
Excellency:
In the memorandum accompanying the tentative draft proposal for
an international stabilization fund, which I sent to the Ministers
of Finance of the United Nations some months ago, I said: "It ie
anticipated that there will also be submitted for consideration a
preliminary draft of a proposal for an international agency whose
function will be to provide capital for reconstruction and develop-
ment."
The preliminary draft of a tentative proposal for a United Nations
Bank for Reconstruction and Development has now been prepared by the
technical staff of the United States Treasury in consultation with the
technical staffs of other departments of this Government. The draft
is designedly in abbreviated form, intended to bring out at this stage
only the more significant points for consideration and discussion.
This tentative proposal is not an expression of the official views
of this Government, but it is an indication of the views held by our
technical experts. I am now sending for your examination this
tentative proposal, which I hope you will submit to the technical
staffs of your Ministry and your Government for their study.
After you and your experts have studied this tentative proposal,
I shall be glad to have such comments and suggestions as you may wish
to make, or to receive any alternative proposal for the provision of
long-term international credits for reconstruction and development
that you may care to submit. If any of your experts should be in
Washington, the technical experts of this Government will be glad to
discuss the tentative proposal with them.
We hope to send you soon some further material emplifying and
discussing many of the provisions in the outlined draft proposal.
Sincerely yours,
(Gignad) Beary Morgenthow, of,
Secretary of the Treasury.
His Excellency, Morteza Choli Bayet,
The Minister of Finance,
Tehran, Iran.
Enclosure.
7/22/42
Regraded Unclassified
158
NO. 2 1943
Excellency:
In the memorandum accompanying the tentative draft proposal
for on international stabilization fund, which I sent to the
Ministers of Finance of the United Nations same months ago, I
said: "It is anticipated that there will also be submitted for
consideration a preliminary draft of a proposal for an inter-
national agency whose function will be to provide capital for
reconstruction and development."
The preliminary draft of & tentative proposal for a United
Nations Bank for Reconstruction and Development has now been
prepared by the technical staff of the United States Treasury
in consultation with the technical staffs of other departments
of this Government. The draft is designedly in abbreviated form,
intended to bring out at this stage only the more significant
points for consideration and discussion. This tentative proposal
is not an expression of the official views of this Government,
but it is an indication of the views held by our technical experts.
I an now sending for your examination this tentative proposal,
which I hope you will submit to the technical staffs of your
Ministry and your Government for their study.
After you and your experts have studied this tentative pro-
posal, I shall be glad to have such comments and suggestions as
you may wish to make, or to receive any alternative proposal
for the provision of long-term international credits for recon-
struction and development that you may care to submit. If any
of your experts should be in Washington, the technical experts
of this Covernment will be glad to discuss the tentative pro-
posal with them.
We hope to send you soon some further material amplifying
and discussing many of the provisions in the outlined draft pro-
posal.
Sincerely yours,
(Signed) Henry Morgenthau, Jr.
Secretary of the Treasury
liis Excellency, Ludwig Grossfeld,
!dnister of Finance,
Republic of Poland,
London, England.
Enclosure. HDW:EMB/jm 11/13/43
Regraded Unclassified
159
NOV 23 1943
Parcellency:
in the memorandum accompanying the tentative draft proposal
for an International stabilization fund, which I sent some months
ago to the Ministers of Finance of the United Nations and the
countries associated with them, I saids "It is anticipated that
there will also be submitted for consideration B. preliminary draft
of a proposal for an international agency whose function will be
to provide capital for reconstruction and development."
The preliminary draft of a tentative proposal for a United
lations Mark for Reconstruction and Development has now been pre-
pared by the technical staff of the United States Treasury in can-
sultation with the technical staffs of other departments of this
overnant. The draft is designedly in abbreviated form, intended
to bring out at this stage only the more significant points for
consideration and discussion. This tentative proposal is not an
expression of the official views of this Government, but it is an
indication of the views held by our technical exparts. I am now
sending for your examination this tentative proposal, which I hope
you will submit to the technical staffs of your Vinistry and your
Covernment for their study.
After you and your experts have studied this tentative pro-
posal, I shall be glad to have such comments and suggestions as
you may wish to make, or to receive any alternative proposal for
the provision of long-term international credits for reconstruc-
tion and development that you may care to submit. If any of your
experts should bé in Washington, the technical experts of this
Government will be glad to discuss the tentative proposal with
them.
We hope to send you soon some further material amplifying and
discussing many of the provisions in the outlined draft proposal.
Sincerely yours,
(Signed) Henry Morgenthau, Jr.
Secretary of the Treasury
Ris Excellency, Rodolfo Rojas,
The Minister of Finance,
The United States of Venesuela,
Caracas, Venesuela.
inclosure. HDW:EMB/jm 11/16/43
Regraded Unclassified
160
25
Regraded Unclassified
1943
Excellency,
In the ussorandum accompanying the tentative draft proposal for
an international stabilization fund, which I sent to the Ministers
of Finance of the United Mations - months age, I said: "It 10
anticipated that there will also be submitted for consideration a
preliminary draft of a proposal for an international agency whose
function will be to provide capital for resonstruction and develop-
ment."
The preliminary draft of a tentative proposal for a United Nations
Bank for Reconstruction and Development has now been prepared by the
technical staff of the United States Treasury in consultation with the
technical staffs of other departments of this Government. The draft
is designedly in abbreviated form, intended to bring out at this stage
only the more significant points for consideration and discussion.
This tentative proposal is not an expression of the official views
of this Government, but it is an indication of the views held by our
technical exparts. I - now sending for your examination this tenta-
tive proposal, which I hope you will submit to the technical staffs
of your Ministry and your Government for their study.
After you and your experts have studied this tentative proposal,
I shall be glad to have such comments and suggestions as you may wish
to make, or to receive any alternative proposal for the provision of
long-term international credits for reconstruction and development
that you may care to submit. If any of your experts should be in
Washington, the technical experts of this Government will be glad to
discuss the tentative proposal with them.
To hope to send you 8000 BOAR further material emplifying and
discussing many of the provisions in the outlined draft proposal.
Sincerely yours,
(Signed) Enery Morgenthan, Jr.
Secretary of the Treasury.
His Excellency, Amin Osman,,
The Minister of Finance,
Kingdom of Egypt,
Cairo, Egypt.
Enclosure.
11/13/43
161
25
NOV 23 1943
Excellency:
In the memorandum accompanying the tentative draft proposal for
an international stabilization fund, which I sent some months ago to
the Ministers of Finance of the United Nations and the countries as-
sociated with them, I said: "It is anticipated that there will also
be submitted for consideration a preliminary draft of a proposal for
an international agency whose function will be to provide capital for
reconstruction and development."
The preliminary draft of a tentative proposal for a United Nations
Bank for Reconstruction and Development has now been prepared by the
technical staff of the United States Treasury in consultation with the
technical staffs of other departments of this Government. The draft
is designedly in abbreviated form, intended to bring out at this stage
only the more signfficant points for consideration and discussion.
This tentative proposal is not an expression of the official views
of this Government, but it is an indication of the views held by our
technical experts. I am now sending for your examination this tenta-
tive proposal, which I hope you will submit to the technical staffe
of your Ministry and your Oovernment for their study.
After you and your experts have studied this tentative proposal,
I shall be glad to have such comments and suggestions as you may wish
to make, or to receive any alternative proposal for the provision of
long-term international credits for reconstruction and development
that you may care to submit. If any of your experts should be in
Washington, the technical experts of this Government will be glad to
discuss the tentative proposal with them.
We hope to send you soon some further material amplifying and
discussing many of the provisions in the outlined draft proposal.
Sincerely yours,
(Signed) Henry Morgenthau. Jr.
Secretary of the Treasury.
His Excellency, Abdulillah Hafidh,
Acting Minister of Finance,
Kingdom of Iraq,
Baghdad, Iraq.
Enclosure.
11/16/43
Regraded Unclassified
162
25
NOV 23 1943
My dear Sir Jeremy:
In the mesorandum accompanying the tentative draft proposal for
an international stabilisation fund, which I sent to the Ministers
of Finance of the United Nations some months ago, I saids "It is
anticipated that there will also be submitted for consideration a
preliminary draft of a proposal for an international agency whose
function will be to provide capital for resonstruction and develop-
ment."
The preliminary draft of a tentative proposal for a United
Nations Bank for Reconstruction and Development has now been pre-
pared by the technical staff of the United States Treasury in
consultation with the technical staffs of other departments of this
Government. The draft is designedly in abbreviated form, intended
to bring out at this stage only the more significant points for
consideration and discussion. This tentative proposal is not an
expression of the official views of this Government, but it 10 an
indication of the views hald by our technical experts. I am now
sending for your examination this tentative proposal, which I hope
you will submit to the technical staffs of your Ministry and your
Government for their study.
After you and your experts have studied this tentative proposal,
I shall be glad to have such comments and suggestions as you may wish
to mis, or to receive any alternative proposal for the provision of
long-term international credite for reconstruction and development
that you my care to submit. If any of your experts should be in
Washington, the technical experts of this Government will be gled to
discuss the tentative proposal with them.
We hope to send you soon some further material amplifying and
discussing many of the previsions in the outlined draft proposal.
Sincerely yours,
(Signed) Henry Morgenthab
Secretary of the Treasury.
The Honorable Sir Jersey Raisman, K.C.B.I., C.I.E.,
Finance Member of Governor-General's
Executive Council,
Government of India,
New Delhi, India.
Enclosure.
HDW:EMB:sh - 11/13/43
Regraded Unclassified
163
25
My dear Mr. Minister:
In the memorandum accompanying the tentative draft proposal
for an international stabilization fund, which I sent to the
Vinisters of Finance of the United Nations some months ago, I saids
"It is anticipated that there will also be submitted for considers-
tion a preliminary draft of a proposal for an international agency
whose function will be to provide capital for reconstruction and
development."
The preliminary draft of a tentative proposal for a United
Nations Bank for Reconstruction and Development has not been pre-
pared by the technical staff of the United States Treasury in
consultation with the technical staffs of other departments of this
Government. The draft is designedly in abbreviated form, intended
to bring out at this stage only the more significant points for con-
sideration and discussion. This tentative proposal is not an expres-
sion of the official views of this Government, but it is an indication
of the views held by our technical experts. I sun now sending for your
examination this tentative proposal, which I hope you will submit to
the technical staffs of your Ministry and your Government for their
study.
After you and your experts have studied this tentative proposal,
I shall be glad to have such comments and suggestions as you may wish
to make, or to receive any alternative proposal for the provision of
long-term international credits for reconstruction and development
that you may care to submit. If any of your experts should be in
Washington, the technical experts of this Government will be glad to
discuss the tentative proposal with them.
We hope to send you soon some further material amplifying and
discussing mary of the provisions in the outlined draft proposal.
Sincerely yours,
/s/ H margenthaw, go
Secretary of the Treasury.
The Honorable J. B. Chifley, M. P.,
Treasurer,
Commonwealth of Australia,
Canberra, Australia.
Enclosure
1,3:01.
11/13/43
Regraded Unclassified
164
25
NOV
14
Excellency:
In the memorandum accompanying the tentative draft proposal for
an international stabilisation fund, which I sent some months ago to
the Ministers of Finance of the United Nations and the countries as-
sociated with them, I said: "It is anticipated that there will also
be submitted for consideration & prelisinary draft of & proposal for
an international agency whose function will be to provide capital for
reconstruction and development."
The preliminary draft of a tentative proposal for a United Nations
Bank for Reconstruction and Development has now been prepared by the
technical staff of the United States Treasury in consultation with the
technical staffs of other departments of this Government. The draft
10 designedly in abtreviated form, intended to bring out at this stage
only the more significant points for consideration and discussion.
This tentative proposal is not an expression of the official views
of this Government, but it is an indication of the views held by our
technical experts. I an now sending for your examination this tenta-
tive proposal, which I hope you will submit to the technical staffs
of your Ministry and your Government for their study.
After you and your experts have studied this tentative proposal,
I shall be glad to have such comments and suggestions as you may wish
to make, or to receive any alternative proposal for the provision of
long-term international credits for reconstruction and development
that you may care to submit. If any of your experts should be in
Washington, the technical experts of this Government will be glad to
discuss the tentative proposal with them.
Tie hope to aend you soon come further material emplifying and
discussing many of the previsions in the outlined draft proposal.
Sincerely yours,
Secretary of the Treasury.
His Emellency, Inis Calve,
The Minister of Finance,
The Republic of Belivia,
La Pas, Bolivia.
Enclosure
11/10/43
Regraded Unclassified
165
Regraded Unclassified
25
NOV 22 1943
Excellency,
In the nemorandus accompanying the tentative draft proposal for
an international stabilisation fund, which I sent to the Ministers
of Finance of the United Nations BORD months ago, I said: wIt is
anticipated that there will also be submitted for esnsideration e
preliminary draft of a proposal for an international agency whose
function will be to provide capital for reconstruction and develop-
ment."
The preliminary draft of a tentative proposal for 4 United Nations
Bank for Reconstruction and Development has now been prepared by the
technical staff of the United States Treasury in consultation with the
technical staffs of other departments of this Government. The draft
is designedly in abbreviated form, intended to bring out at this stage
only the more significant points for consideration and discussion.
This tentative proposal is not an expression of the official views
of this Government, but it 10 an indication of the views held by our
technical experts. I in now sending for your examination this tente-
tive proposal, which I hope you will submit to the technical staffs
of your Ministry and your Government for their study.
After you and your experts have studied this tentative proposal,
I shall be glad to have such coments and suggestions as you may wish
to make, or to receive any alternative proposal for the provision of
long-term international credits for resonstruction and development
that you may care to submit. If any of your experts should be in
Washington, the technical experts of this Government will be glad to
discuss the tentative proposal with them.
To hope to send you soon some further material amplifying and
discussing sany of the provisions in the outlined draft proposal.
Sincerely yours,
Secretary of the Treasury.
His Excellency, Abel Lasrein,
The Minister of Finance,
The Republic of Raiti,
Port au Prince, Raiti.
Enclosure.
El,B:mo
11/13/42
16
Regraded Unclassified
25
NOV
Excellency,
In the memorandra accompanying the tentative draft proposal for
an international stabilization fund, which I sent to the Ministers
of Finance of the United Nations some months ago, I said, "It is
anticipated that there will also be submitted for consideration a
preliminary draft of a proposal for an international agency whose
function will be to provide capital for reconstruction and develop-
ment."
The preliminary draft of & tentative proposal for a United Nations
Bank for Reconstruction and Development has now been prepared by the
technical staff of the United States Treasury in consultation with the
technical staffs of other departments of this Government. The draft
18 designedly in abbreviated form, intended to bring out at this stage
only the more significant points for consideration and discussion.
This tentative proposal is not an expression of the official views
of this Government, but it 1s an indication of the views held by our
technical experts. I an now sending for your examination this tents-
tive proposal, which I hope you will submit to the technical staffs
of your Ministry and your Government for their study.
After you and your experts have studied this tentative proposal,
I shall be glad to have such comments and suggestions as you may wish
to make, or to reseive any alternative proposal for the provision of
long-term international credits for resonstruction and development
that you my care to submit. If any of your experts should be in
Washington, the technical experts of this Government will be glad to
discuss the tentative proposal with them.
To hope to send you soon some further material emplifying and
discussing many of the provisions in the outlined draft proposal.
Sincerely yours,
15/50 Margenthaw. Jr.
Secretary of the Treasury.
His Excellency, Jose Gonsales Campo,
The Minister of Finance,
The Republic of Oustemala,
Gustemala City, Custemals.
Enclosure.
Name E B:mb
11/13/43
167
25
NOV 21 2 1943
My dear Mr. Ambassador:
In the memorandum accompanying the tentative draft proposal for
an international stabilisation fund, which I sent to the Ministers
of Finance of the United Nations some months age, I said: "It is
anticipated that there will also be submitted for consideration a
preliminary draft of a proposal for an international agency whose
function will be to provide capital for reconstruction and develop-
ment."
The preliminary draft of a tentative proposal for & United Nations
Bank for Reconstruction and Development has now been prepared by the
technical staff of the United States Treasury in consultation with the
technical staffs of other departments of this Government. The draft
is designedly in abbreviated form, intended to bring out at this stage
only the more significant points for consideration and discussion.
This tentative proposal is not an expression of the official views
of this Government, but it 18 an indication of the views held by our
technical experts. I on now sending for your examination this tents-
tive proposal, which I hope you will submit to the technical staffs
of your Ministry and your Government for their study.
After you and your experts have studied this tentative proposal,
I shall be glad to have such comments and suggestions as you may wish
to make, or to receive any alternative proposal for the provision of
long-term international credits for reconstruction and development
that you my care to submit. If any of your experts should be in
Washington, the technical experts of this Government will be glad to
discuss the tentative proposal with them.
We hope to send you soon some further material emplifying and
disoussing sany of the provisions in the outlined draft proposal.
Sincerely yours,
15/ H. Margenthaw, go
Secretary of the Treasury.
The Honorable K. Varvaresses,
Special Envoy of the Kingdom of Greece,
Royal Greek doverment,
London, England.
Enclosure.
11/13/40
Regraded Unclassified
168
25
NOV 2 1943
Excellency:
In the memorandum accompanying the tentative draft proposal
for an international stabilisation fund, which I sent to the
Ministere of Finance of the United Nations some months ago, I saids
"It is anticipated that there will also be submitted for consideration
a preliminary draft of a proposal for an international agency whose
function will be to provide capital for reconstruction and develop-
ment."
The preliminary draft of a tentative proposal for & United Nations
Bank for Reconstruction and Development has now been prepared by the
technical staff of the United States Treasury in consultation with the
technical staffs of other departments of this Government. The draft
is designedly in abbreviated form, intended to bring out at this stage
only the more significant points for consideration and discussion.
This tentative proposal is not an expression of the official views
of this Government, but it is an indication of the views held by our
technical experts. I an now sending for your examination this
tentative proposal, which I hope you will submit to the technical
staffs of your Ministry and your Government for their study.
After you and your experts have studied this tentative proposal,
I shall be glad to have such comments and suggestions as you may wish
to make, or to receive any alternative proposal for the provision of
long-term international credits for reconstruction and development
that you may care to submit. If any of your experts should be in
Washington, the technical experts of this Government will be glad to
discuss the tentative proposal with them.
We hope to send you 6000 some further material amplifying and
discussing many of the previsions in the outlined draft proposal.
Sincerely yours,
Secretary of the Treasury.
His Excellency, Camille Outs,
The Minister of Finance,
Kingdom of Belgium,
c/o Belgian Embassy,
London, England.
Enclosure
em
11/13/43
Regraded Unclassified
169
25
NOV 1943
My dear Mr. Minister:
In the nenorandum accompanying the tentative draft proposal for
an international stabilization fund, which I sent some months ago to
the Ministers of Finance of the United Nations and the countries 10-
sociated with them, I said: "It is anticipated that there will also
be submitted for consideration a preliminary draft of a proposal for
an international agency whose function will be to provide capital for
reconstruction and development."
The preliminary draft of a tentative proposal for a United Nations
Bank for Reconstruction and Development has now been prepared by the
technical staff of the United States Treasury in consultation with the
technical staffs of other departments of this Government. The draft
is designedly in abbreviated form, intended to bring out at this stage
only the more significant points for consideration and discussion.
This tentative proposal is not an expression of the official views
of this Government, but it is an indication of the views held by our
technical experts. I an now sending for your examination this tents-
tive proposal, which I hope you will submit to the technical staffs
of your Ministry and your Oovernment for their study.
After you and your experts have studied this tentative proposal,
I shall be glad to have such comments and suggestions as you may wish
to make, or to receive any alternative proposal for the provision of
long-term international credits for reconstruction and development
that you may care to submit. If any of your experts should be in
Washington, the technical experts of this Government will be glad to
discuss the tentative proposal with them.
No hope to send you soon some further material amplifying and
discussing sany of the provisions in the outlined draft proposal.
Sincerely yours,
Secretary of the Treasury.
The Honorable James T. Phillips,
Secretary of the Treasury,
Monrovia, Liberia.
Enclosure
CHE 5:en
17/10/15
Regraded Unclassified
170
25
NOV 2 2 1943
My dear Mr. Minister:
In the memorandum accompanying the tentative draft proposal
for an international stabilization fund, which I sent to the Ministers
of Finance of the United Nations some months ago, I said: "It is
anticipated that there will also be submitted for consideration a
preliminary draft of a proposal for an international agency whose
function will be to provide capital for reconstruction and develop-
ment."
The preliminary draft of a tentative proposal for a United Nations
Bank for Reconstruction and Development has now been prepared by the
technical staff of the United States Treasury in consultation with the
technical staffs of other departments of this Government. The draft
18 designedly in abbreviated form, intended to bring out at this stage
only the more significant points for consideration and discussion.
This tentative proposal is not an expression of the official views
of this Government, but it is an indication of the views held by our
technical experts. 1 an now sending for your examination this
tentative proposal, which I hope you will submit to the technical
staffs of your Ministry and your Government for their study.
After you and your experts have studied this tentative proposal,
I shall be glad to have such comments and suggestions as you may wish
to make, or to receive any alternative proposal for the provision of
long-term international credits for reconstruction and development
that you may care to submit. If any of your experts should be in
Washington, the technical experts of this Government will be glad to
discuss the tentative proposal with them.
We hope to send you soon some further material emplifying and
discussing sany of the provisions in the outlined draft proposal.
Sincerely yours,
Secretary of the Treasury.
The Honorable J. L. Ilaley,
Minister of Finance,
Dominion of Canada,
Ottaws, Canada.
Enclosure
Item
11/13/43
Regraded Unclassified
171
25
MUV 22 186
Excellency:
In the memorandum accompanying the tentative draft proposal for
an international stabilization fund, which I sent some months ago to
the Ministers of Finance of the United Nations and the countries 11-
sociated with them, I saids "It is anticipated that there will also
be submitted for consideration a preliminary draft of 8 proposal for
an international agency whose function will be to provide capital for
reconstruction and development."
The preliminary draft of a tentative proposal for & United Nations
Bank for Reconstruction and Development has now been prepared by the
technical staff of the United States Treasury in consultation with the
technical staffs of other departments of this Government. The draft
is designedly in abbreviated form, intended to bring out at this stage
only the more significant points for consideration and discussion.
This tentative proposal is not an expression of the official views
of this Government, but it is an indication of the views held by our
technical experts. I an now sending for your examination this tents-
tive proposal, which I hope you will submit to the technical staffs
of your Ministry and your Government for their study.
After you and your experts have studied this tentative proposal,
I shall be glad to have such comments and suggestions as you may wish
to make, or to receive any alternative proposal for the provision of
long-term international credits for reconstruction and development
that you may care to submit. If any of your experts should be in
Washington, the technical experts of this Government will be glad to
discuss the tentative proposal with them.
Te hope to send you soon some further material amplifying and
discussing many of the provisions in the outlined draft proposal.
Sincerely yours,
Secretary of the Treasury.
Hie Excellency, Arturo Matte Larrain,
The Minister of Finance,
The Republic of Chile,
Santiago, Chile.
Enclosure
11/16/43
Regraded Unclassified
172
25
NOV 22 1943
Excellency:
In the memorandum accompanying the tentative draft proposal
for an international stabilisation fund, which I sent to the Ministers
of Finance of the United Nations some months ago, I said: "It is
anticipated that there will also be submitted for consideration a
preliminary draft of & proposal for an international agency whose
function will be to provide capital for reconstruction and develop-
ment."
The preliminary draft of a tentative proposal for a United Nations
Bank for Reconstruction and Development has now been prepared by the
technical staff of the United States Treasury in consultation with the
technical staffs of other departments of this Government. The draft
is designedly in abbreviated form, intended to bring out at this stage
only the more significant points for consideration and discussion.
This tentative proposal is not an expression of the official views
of this Government, but it is an indication of the views held by our
technical experts. I an now sending for your examination this
tentative proposal, which I hope you will subsit to the technical
staffs of your Ministry and your Government for their study.
After you and your experts have studied this tentative proposal,
1 shall be glad to have such consents and suggestions as you may wish
to make, or to receive any alternative proposal for the provision of
long-term international credits for reconstruction and development
that you may care to submit. If any of your experts should be in
Washington, the technical experts of this Government will be glad to
discuss the tentative proposal with them.
We hope to send you soon some further material emplifying and
discussing many of the provisions in the outlined draft proposal.
Sincerely yours,
Secretary of the Treasury.
His Excellency, Lij. Yilms Deresse,
Vice Minister of Finance,
Addie Ababe, Ethiopia.
Enclosure
3:en
12/10/43
Regraded Unclassified
173
25
NOV 2 1943
Excellency:
In the memorandum accompanying the tentative draft proposal
for an international stabilization fund, which I sent to the
Ministere of Finance of the United Nations some months ago, I said:
"It is anticipated that there vill also be submitted for consideration
a preliminary draft of a proposal for an international agency whose
function will be to provide capital for reconstruction and develop-
ment."
The preliminary draft of a tentative proposal for a United
Nations Bank for Reconstruction and Development has now been prepared
by the technical staff of the United States Treasury in consultation
with the technical staffs of other departments of this Government.
The draft is designedly in abbroviated form, intended to bring out
at this stage only the more significant points for consideration and
discussion. This tentative proposal is not an expression of the of-
ficial views of this Government, but 16 is an indication of the views
held by our technical experts. I OR nov sending for your examina-
tion this tentative proposal, which I hope you vill submit to the
technical staffs of your Ministry and your Government for their study.
After you sad your experts have studied this tentative proposal,
I shall be glad to have such comments and suggestions as you may wish
to make, or to receive any alternative proposal for the provision of
long-term international credits for resonstruction and development
that you may care to submit. If any of your experts should be in
Washington, the technical experts of this Government will be find to
discuss the tentative proposal with them.
We hope to send you soon .... further material amplifying and
discussing may of the provisiens in the outlined draft proposal.
Sincerely yours,
15 H. margenthaw
Secretary of the Treasury.
His Excellency, Pierre Dupend.
Minister of Finance,
Grand Duchy of Luxembourg,
809 9am Life Building.
Montreal, Canada.
Enclosure
11/15/43
Regraded Unclassified
174
25
NOV 2 1943
Excellency:
In the memorandum accompanying the tentative draft proposal
for an international stabilization fund, which I sent to the
Ministere of Finance of the United Nations come months ago, I said:
"It is anticipated that there will also be submitted for consider-
ation a preliminary draft of a proposal for an international agency
whose function vill be to provide capital for reconstruction and
development."
The preliminary draft of a tentative proposal for a United
Nations Bank for Reconstruction and Development has nov been pre-
pared by the technical staff of the United States Treasury in COM-
sultation with the technical staffs of other departments of this
Government. The draft is designedly in abbreviated form, intended
to bring out at this stage only the more significant points for con-
sideration and discussion. This tentative proposal 10 not as 02-
pression of the official views of this Government, but it is an 1s-
dication of the views held by our technical experts. I as now send-
ing for your examination this tentative preposal, which I hope you
will submit to the technical staffe of your Ministry and your Govern-
ment for their study.
After you and your experts have studied this tentative proposal,
I shall be glad to have such comments and suggestions as you may wish
to make, or to receive any alternative proposal for the provision of
long-term international credits for reconstruction and development
that you may care to submit. If any of your exports should be in
Washington, the technical experts of this Government will be glad to
discuss the tentative proposal with them.
We hope to send you soon some further material emplifying and
discussing many of the provisions in the outlined draft proposal.
Sincerely yours,
Secretary of the Treasury.
Ris Excellency, J. van den Brook,
Minister of Finance,
Kingdom of the Netherlands,
1, 1. Stratton House,
London, England,
Enclosure
11/13/43
Regraded Unclassified
175
25
NOV 22 1943
Excellency:
In the memorandum accompanying the tentative draft proposal
for an international stabilization fund, which I sent to the
Ministers of Finance of the United Nations some months ago, I
saidi "It is anticipated that there will also be submitted for con-
sideration a preliminary draft of a proposal for as international
agency whose function will be to provide capital for reconstruction
and development."
The preliminary draft of a tentative proposal for e United
Nations Bank for Reconstruction and Development has now been pre-
pared by the technical staff of the United States Treasury in 00D-
sultation with the technical staffs of other departments of this
Government. The draft is designedly in abbroviated form, intended
to bring out at this stage only the more significant points for
consideration and discussion. This tentative proposal is not an
expression of the official views of this Government, but it is an
indication of the views held by our technical experts. I AS nov
sending for your examination this tentative proposal, which I hope
you will submit to the technical staffs of your Ministry and your
Government for their study.
After you and your experts have studied this tentative proposal,
I shall be glad to have such comments and suggestions as you may
wish to make, or to receive any alternative proposal for the pro-
vision of long-term international credits for reconstruction and
development that you say care to submit. If any of your experts
should be in Washington, the technical experts of this Government
vill be glad to discuss the tentative proposal with them.
Ve hope to send you soon some further material amplifying and
discussing many of the provisions in the outlined draft proposal.
Sincerely yours,
Secretary of the Treasury.
His Excellency, Eduardo Suares,
Minister of Finance,
The United States of Mexico,
Mexico City, Mexico.
Enclosure
11/23/43
Regraded Unclassified
176
25
NOV 2 2 1943
Excellency,
In the memorandum accompanying the tentative draft proposal for
an international stabilisation fund, which I sent to the Ministers
of Finance of the United Nations - months age, I said: "It is
anticipated that there will also be submitted for consideration a
preliminary draft of a proposal for an international agency whose
function will be to provide capital for reconstruction and develop-
ment."
The proliminary draft of a tentative proposal for & United Nations
Bank for Reconstruction and Development has now been prepared by the
technical staff of the United States Treasury in consultation with the
technical staffs of other departments of this Government. The draft
is designedly in abbreviated form, intended to bring out at this stage
only the more significant points for consideration and discussion.
This tentative proposal is not an expression of the official views
of this Government, but it is an indication of the views hold by our
technical exparts. I - now sending for your examination this tenta-
tive proposal, which I hope you will submit to the technical staffs
of your Ministry and your doverment for their study.
After you and your experts have studied this tentative proposal,
I shall be glad to have such comments and suggestions as you my wish
to make, or to receive any alternative proposal for the provision of
long-term international credits for reconstruction and development
that you my care to subsit. If any of your experts should be in
Washington, the technical experts of this Government will be glad to
discuss the tentative proposal with them.
We hope to send you seen DOBO further material emplifying and
discussing many of the provisions in the outlined draft proposal.
Sincerely yours,
Secretary of the Treasury.
His Excellency, Urbano Quesada,
The Acting Minister of Finance,
The Republic of Honduras,
Tegucigalps, Honduras.
Enclosure.
11/12/43
Regraded
Unclassified
177
Regraded Unclassified
25
Excellency:
In the memorandum accompanying the tentative draft proposal for
an international stabilisation fund, which I sent 0020 months ago to
the Ministers of Finance of the United Nations and the countries as-
sociated with them, I said: "It 18 anticipated that there will also
be submitted for consideration a preliminary draft of a proposal for
an international agency whose function will be to provide espital for
reconstruction and development."
The preliminary draft of & tentative proposal for & United Nations
Bank for Reconstruction and Development has now been prepared by the
technical staff of the United States Treasury in consultation with the
technical staffs of other departments of this Government. The draft
is designedly in abbreviated form, intended to bring out at this stage
only the nore significant points for consideration and discussion.
This tentative proposal is not an expression of the official views
of this Government, but it is an indication of the views held by our
technical experts. I M now sending for your examination this tents-
tive proposal, which I hope you will submit to the technical staffs
of your Ministry and your Government for their study,
After you and your experts have studied this tentative proposal,
I shall be glad to have such comments and suggestions as you may wish
to make, or to receive any alternative proposal for the provision of
long-term international credits for reconstruction and development
that you may care to submit. If any of your experts should be in
Washington, the technical experts of this Government will be glad to
discuss the tentative proposal with them.
We hope to send you DOOR come further material emplifying and
discussing many of the provisions in the outlined draft proposal.
Sincerely yours,
Secretary of the Treasury.
Ris Emellency, Ther There,
The Minister of Iceland,
3839 Massachusetts Avenue, N. Y.,
Washington, D. C.
Enclosure
11/16/45
178
NOV 22 1943
Excellency:
in Die memorandum accompanying the tentative draft proposal
for en international stabilization fund, which 1 sent HOME months
age to the Unisters of Finance of the United Nations and the
countries associated with them, I said: "It is anticipated that
there will also be submitted for consideration a preliminary draft
of 5 proposal for an international agency whose function will be
to provide capital for reconstruction and development."
The preliminary draft of a tentative proposal for a United
Nations Bank for Reconstruction and Development has now been pre-
pared by the technical staff of the United States Treasury in
consultation with the technical staffs of other departments of
this Government. The draft is designedly in abbreviated form,
interned to bring out at this stage only the more significant
points for consideration and discussion. This tentative proposal
is not an expression of the official views of this Government, but
it in an indication of the views held by our technical experts.
I am now sending for your examination this tentative proposal, which
1 hope you will submit to the technical staffs of your dinistry and
your Covernment for their study.
After you and your experts have studied this tentative proposal,
I shall be glad to have such comments and suggestions as you may
wish to make, or to receive any alternative proposal for the yro-
vision of long-term international credits for reconstruction and
development that you may care to submit. If any of your experts
should be in Washington, the technical experts of this Government
will be glad to discuss the tentative proposal with then.
We hope to send you soon some further material amplifying and
discussing many of the provisions in the outlined draft proposal.
Sincerely yours,
Secretary of the Treasury
Ris Excellency, Julio last,
The Minister of Finance,
The Republic of Peru,
Lima, Peru.
inclosure.
HDW:EMB/jm 11/16/43
Regraded Unclassified
179
NOV 22 1943
My dear Mr. Minister:
In the mesorandum accompanying the tentative draft proposal
for an international stabilisation fund, which I sent to the
Idnisters of Finance of the United Nations some months ago, I
saids "It is anticipated that there will also be submitted for
consideration a preliminary draft of a proposal for an inter-
national agency whose function will be to provide capital for
reconstruction and development."
The preliminary draft of a tentative proposal for a United
Nations Bank for Reconstruction and Development has now been
prepared by the technical staff of the United States Treasury
in consultation with the technical staffs of other departments
of this Government. The draft is designedly in abbreviated
form, intended to bring out at this stage only the more signifi-
cant points for consideration and discussion. This tentative
proposal is not an expression of the official views of this
Government, but it is an indication of the views held by our
technical experts. I an now sending for your examination this
tentative proposal, which I hope you will submit to the technical
staffe of your Ministry and your Government for their study.
After you and your experts have studied this tentative pro-
posal, I shall be glad to have such comments and suggestions as
you may wish to make, or to receive any alternative proposal
for the provision of long-term international credits for recon-
struction and development that you may care to submit. If any
of your experts should be in Washington, the technical experts
of this Government will be glad to discuss the tentative proposal
with them.
The hope to and you som nome further material amplifying and
discussing many of the provisions in the outlined draft proposal.
Sincerely yours,
Secretary of the Treasury
Colonel Andres Soriano,
Minister of Finance,
Commonwealth of the Philippines,
Rits Tower, Park Avenue,
New York, New York.
Enclosure. HDW,KMB/jm 11/13/43
Regraded Unclassified
180
25
NOV 22 1943
Excellency:
In the memorandum accompanying the tentative draft proposal
for an international stabilisation fund, which I sent to the Ministers
of Finance of the United Nations some months ago, I said: "It is
anticipated that there will also be submitted for consideration a
preliminary draft of a proposal for an international agency whose
function will be to provide capital for reconstruction and develop-
ment,"
The preliminary draft of a tentative proposal for & United Nations
Bank for Reconstruction and Development has now been prepared by the
technical staff of the United States Treasury in consultation with the
technical staffs of other departments of this Government. The draft
is designedly in abbreviated form, intended to bring out at this stage
only the more significant points for consideration and discussion.
This tentative proposal is not an expression of the official views
of this Government, but it is an indication of the views held by our
technical experts. I an now sending for your examination this
tentative proposal, which I hope you will submit to the technical
staffe of your Ministry and your Government for their study.
After you and your experts have studied this tentative proposal,
I shall be glad to have such comments and suggestions as you may wish
to make, or to receive any alternative proposal for the provision of
long-term international credits for reconstruction and development
that you may care to submit. If any of your experts should be in
Washington, the technical experts of this Government will be glai to
discuss the tentative proposal with them.
We hope to send you soon some further material amplifying and
discussing many of the provisions in the outlined draft proposal.
Sincerely yours,
15/ Jr.
Secretary of the Treasury.
His Excellency, Arthur de Seuse Costa,
The Minister of Finance,
The United States of Brasil,
Rio de Janeiro, Brasil.
Enclosure
1/13/43
Regraded Unclassified
181
NOV no
accellency:
In the menorandum accompanying the tentative draft proposal
for an international stabilization fund, which I sent to the
Ministers of Finance of the United Nations some months ago, I
saids "It is anticipated that there will also be submitted for
consideration a preliminary draft of a proposal for an inter-
national agency whose function will be to provide capital for
reconstruction and development."
The preliminary draft of a tentative proposal for a United
Nations Bank for Reconstruction and Development has now been pre-
pared by the technical staff of the United States Treasury in
consultation with the technical staffs of other departments of
this Government. The draft is designedly in abbreviated form,
intended to bring out at this stage only the more significant
points for consideration and discussion. This tentative proposal
is not an expression of the official views of this Government,
but it is an indication of the views held by our technical experts.
I an now sending for your examination this tentative proposal,
which I hope you will subsit to the technical staffs of your
Ministry and your Government for their study.
After you and your experts have studied this tentative pro-
posal, I shall be glad to have such comments and suggestions as
you may wish to make, or to receive any alternative proposal for
the provision of long-term international credits for reconstruction
and development that you may care to submit. If any of your or
perts should be in Washington, the technical experts of this
Government will be glad to discuss the tentative proposal with
them.
The hope to send you soon some further material amplifying
and discussing many of the provisions in the outlined draft pro-
posal.
Sincerely yours,
13/71 margenthan qu.
Secretary of the Treasury
His Excellency, Ivo Cicin Sain,
Minister of Finance in the Government
of Yugoslavia,
Legation of Yugoslavia,
Cairo, &gypt.
Inclosure.
HDW1EMB/jm 11/16/43
Regraded Unclassified
182
Excellencys
In the memorandum accompanying the tentative draft proposal
for an international stabilization fund, which I sent some months
ago to the Ministers of Finance of the United Nations and the
countries associated with them, I said: "It is anticipated that
there will also be submitted for consideration a preliminary draft
of a proposal for an international agency whose function will be
to provide capital for reconstruction and development."
The preliminary draft of a tentative proposal for a United
Nations Bank for Reconstruction and Development has now been pre-
pared by the technical staff of the United States Treasury in
consultation with the technical staffs of other departments of
this Government. The draft is designedly in abbreviated form,
intended to bring out at this stage only the more significant
points for consideration and discussion. This tentative proposal
is not an expression of the official views of this Government,
but it is an indication of the views held by our technical experts.
I an now sending for your examination this tentative proposal, which
I hope you will submit to the technical staffs of your Ministry and
your Government for their study.
After you and your experts have studied this tentative proposal,
I shall be glad to have such comments and suggestions as you may
wish to make, or to receive any alternative proposal for the pro-
vision of long-term international credits for reconstruction and
development that you may care to submit. If any of your experts
should be in Washington, the technical experts of this Government
will be glad to discuss the tentative proposal with them.
We hope to send you soon some further material emplifying and
discussing any of the provisions in the outlined draft proposal.
Sincerely yours,
/s/ 2d. morgenthaw, ga.
Secretary of the Treasury
His Excellency, Rogelie Espinoze,
The Minister of Finance,
The Republic of Paraguay,
Asuncion, Paraguay.
Enclosure. HDW/EMB:jm 11/16/43
Regraded Unclassified
183
NOV 22 1943
Excellency:
In the memorandum accompanying the tentative draft proposal
for an international stabilisation fund, which I sent to the
Ministers of Finance of the United Nations some months ago, I
said: "It is anticipated that there will also be submitted for
consideration a preliminary draft of a proposal for an international
agency whose function will be to provide capital for reconstruction
and development."
The preliminary draft of a tentative proposal for a United
Nations Bank for Reconstruction and Development has now been pre-
pared by the technical staff of the United States Treasury in
consultation with the technical staffs of other departments of
this Government. The draft is designedly in abbreviated form,
intended to bring out at this stage only the more significant
pointe for consideration and discussion. This tentative proposal
is not an expression of the official views of this Government, but
it is an indication of the views held by our technical experts.
I - now sending for your examination this tentative proposal, which
I hope you will submit to the technical staffs of your Ministry
and your Government for their study.
After you and your experts have studied this tentative proposal,
I shall be glad to have such comments and suggestions as you may
wish to make, or to receive any alternative proposal for the provision
of long-term international credits for reconstruction and development
that you may care to submit. If any of your experts should be in
Washington, the technical experts of this Government will be glad
to discuss the tentative proposal with them.
We hope to send you soon some further material amplifying and
discussing many of the previsions in the outlined draft proposal.
Sincerely yours,
Secretary of the Treasury
The Honorable Walter Hash,
Minister of Finance,
Wellington, New Zealand.
Enclosure
HDW:EMB;lr 11/13/43
Regraded Unclassified
184
Regraded Unclassified
NOV 2 2 1943
Excellency:
In the memorandum accompanying the tentative draft proposal
for an international stabilisation fund, which I sent to the
Ministers of Finance of the United Nations some months ago, I
saids "It is anticipated that there will also be submitted for
consideration a preliminary draft of & proposal for an international
agency whose function will be to provide capital for reconstruction
and development."
The preliminary draft of a tentative proposal for & United
Nations Bank for Reconstruction and Development has now been pre-
pared by the technical staff of the United States Treasury in
consultation with the technical staffs of other departments of
this Government. The draft is designedly in abbreviated form,
intended to bring out at this stage only the more significant
points for consideration and discussion. This tentative proposal
is not an expression of the official views of this Government, but
it is an indication of the views held by our technical exparts.
I as now sending for your examination this tentative proposal, which
I hope you will submit to the technical staffs of your Ministry
and your Government for their study.
After you and your experts have studied this tentative proposal,
I shall be glad to have such comments and suggestions as you may
wish to make, or to receive any alternative proposal for the provision
of long-term international credits for reconstruction and development
that you may care to submit. If any of your experts should be in
Washington, the technical exparts of this Government will be glad
to discuss the tentative proposal with them.
We hope to send you soon some further material emplifying and
discussing many of the provisions in the outlined draft proposal.
Sincerely yours,
Secretary of the Treasury
His Excellency, Ing. J. Ramon Sevilla Sacasa,
Minister of Finance,
Republic of Nicaragua,
Managua, Nicaragus.
Enclosure
HDWAs NBIr 11/13/43
185
NOV 22 1943
Excellency#
In the memorandum accompanying the tentative draft proposal
for an international stabilization fund, which I sent to the
Ministers of Finance of the United Nations some months ago, I
said: "It 10 anticipated that there will also be submitted for
consideration & preliminary draft of & proposal for an international
agency whose function will be to provide capital for reconstruction
and development."
The preliminary draft of a tentative proposal for a United
Nations Bank for Reconstruction and Development has now been pre-
pared by the technical staff of the United States Treasury in
consultation with the technical staffs of other departments of
this Government. The draft is designedly in abbreviated form,
intended to bring out at this stage only the more significant
points for consideration and discussion. This tentative proposal
is not an expression of the official views of this Government, but
it 18 an indication of the views held by our technical experts.
I an now sending for your examination this tentative proposal, which
I hope you will submit to the technical staffs of your Ministry
and your Government for their study.
After you and your experts have studied this tentative proposal,
I shall be glad to have such comments and suggestions as- you may
wish to make, or to receive any alternative proposal for the provision
of long-term international credits for reconstruction and development
that you may care to submit. If any of your experts should be in
Washington, the technical exparts of this Government will be glad
to discuss the tentative proposal with them.
We hope to send you soon 5000 further material emplifying and
discussing many of the provisions in the outlined draft proposal.
Sincerely yours,
15/H.morgeathaw. Secretary of the Treasury
His Excellency, Paul Hartmann,
Minister of Finance,
Kingdom of Norway,
Kingston House, Princes date,
London, England.
Enclosure
HDW:EMBilr 11/13/43
Regraded Unclassified
186
NOV 22 1943
Excellency:
In the memorandum accompanying the tentative draft proposal
for an international stabilisation fund, which I sent to the
Ministers of Finance of the United Nations some months ago, I
saids "It is anticipated that there will also be submitted for
consideration a preliminary draft of a proposal for an international
agency whose function will be to provide capital for reconstruction
and development."
The preliminary draft of a tentative proposal for & United
Nations Bank for Reconstruction and Development has now been pre-
pared by the technical staff of the United States Treasury in
consultation with the technical staffe of other departments of
this Government. The draft 10 designedly in abbreviated form,
intended to bring out at this stage only the more significant
points for consideration and discussion. This tentative proposal
is not an expression of the official views of this Government, but
it is an indication of the views held by our technical experts.
I - now sending for your examination this tentative proposal, which
I hope you will submit to the technical staffs of your Ministry
and your Government for their study.
After you and your experts have studied this tentative proposal,
I shall be glad to have much comments and suggestions as you may
wish to make, OF to receive any alternative proposal for the provision
of long-term international credits for reconstruction and development
that you may care to submit. If any of your experts should be in
Washington, the technical experts of this Government will be glad
to discuss the tentative proposal with them.
We hope to send you soon some further material amplifying and
discussing many of the provisions in the outlined draft proposal.
Sincerely yours,
Secretary of the Treasury
His Excellency, Jose A. Seas,
Minister of Finance,
Republic of Panama,
Panana City, Panama.
Enclosure
11/13/43
Regraded Unclassified
187
NOV 22
Excellency:
In the memorandum accompanying the tentative draft proposal
for an international stabilization fund, which I sent to the
Ministers of Finance of the United Nations some months ago, I
said: "It is anticipated that there will also be submitted for
consideration a preliminary draft of a proposal for en inter-
national agency whose function will be to provide capital for
reconstruction and development."
The preliminary draft of a tentative proposal for a United
Nations Bank for Reconstruction and Development has now been
prepared by the technical staff of the United States Treasury
in consultation with the technical staffs of other departments
of this Government. The draft is designedly in abbreviated form,
intended to bring out at this stage only the more significant
points for consideration and discussion. This tentative proposal
is not an expression of the official views of this Government,
but it is an indication of the views held by our technical experts.
I an now sending for your examination this tentative proposal,
which I hope you will submit to the technical staffs of your
Ministry and your Government for their study.
After you and your experts have studied this tentative pro-
posal, I shall be glad to have such comments and suggestions as
you may wish to nake, or to receive any alternative proposal for
the provision of long-term international credits for reconstruction
and development that you may care to submit. If any of your ex-
perte should be in Washington, the technical experts of this Govern-
ment will be glad to discuss the tentative proposal with them.
We hope to and you soon come further material emplifying and
discussing any of the provisions in the outlined draft proposal.
Sincerely yours,
/s/ H.Morgenthaw.Jr.
Secretary of the Treasury
The Honorable Jan Hendrik Hofmayr,
Minister of Finance,
The Union of South Africa,
Pretoria, Union of South Africa.
Enclosure.
HDW:EMB/jm
11/13/43
Regraded Unclassified
188
NOV 22 1943
Excellency:
In the memorandum accompanying the tentative draft proposal
for an international stabilisation fund, which I sent to the
Ministers of Finance of the United Nations some months ago, I
said: "It is anticipated that there will also be submitted for
consideration a preliminary draft of a proposal for an inter-
national agency whose function will be to provide capital for
reconstruction and development."
The preliminary draft of a tentative proposal for a United
Nations Bank for Reconstruction and Development has now been
prepared by the technical staff of the United States Treasury
in consultation with the technical staffs of other departments
of this Government. The draft is designedly in abbreviated
form, intended to bring out at this stage only the more signifi-
cant points for consideration and discussion. This tentative
proposal is not an expression of the official views of this
Government, but it is an indication of the views held by our
technical experts. I - now sending for your examination this
tentative proposal, which I hope you will submit to the technical
staffs of your Ministry and your Government for their study.
After you and your experts have studied this tentative pro-
posal, I shall be glad to have such comments and suggestions as
you may wish to make, or to receive any alternative proposal
for the provision of long-term international credits for recon-
struction and development that you may care to submit. If any
of your experts should be in Washington, the technical experts
of this Government will be glad to discuss the tentative pro-
posal with them.
We hope to send you soon - further material amplifying
and discussing many of the provisions in the outlined draft
proposal.
Sincerely yours,
/s/ H.Morgenthaw, Jr.
Secretary of the Treasury
His Excellency, Arsend Origoryevich Iverev,
People's Commissar of Finance,
Moscow,
Union of Soviet Socialist Republics.
Enclosure. HDW:EMB/jm 11/13/43
Regraded Unclassified
189
25
NOV
Excellency:
In the memorandum accompanying the tentative draft proposal
for an international stabilization fund, which I sent come months
ago to the Ministers of Finance of the United Nations and the
countries associated with them, I said: "It 10 anticipated that
there will also be submitted for consideration a proliminary
draft of a proposal for an international agency whose function
will be to provide capital for reconstruction and development."
The preliminary draft of a tentative proposal for a United
Nations Bank for Reconstruction and Development has now been pre-
pared by the technical staff of the United States Treasury in con-
sultation with the technical staffs of other departments of this
Government. The draft is designedly in abbreviated form, intended
to bring out at this stage only the more significant points for
consideration and discussion. This tentative proposal is not an
expression of the official views of this Government, but it is an
indication of the views held by our technical experts. I an now
sending for your examination this tentative proposal, which I hope
you will submit to the technical staffs of your Ministry and your
Government for their study.
After you and your experts have studied this tentative pro-
posal, I shall be glad to have such comments and suggestions as
you may wish to make, or to receive any alternative proposal for
the provision of long-term international credite for reconstruction
and development that you may care to submit. If any of your ex-
perts should be in Washington, the technical experts of this
Government will be glad to discuss the tentative proposal with
them.
We hope to send you soon some further material amplifying and
discussing many of the provisions in the outlined draft proposal.
Sincerely yours,
Jr.
Secretary of the Treasury
Rie Excellency, Hector Alvares Cina,
The Minister of Finance,
The Oriental Republic of Uruguay,
Nontevideo, Uruguay.
Enclosure.
HDW:EMB/jm 11/16/43
Regraded Unclassified
130
25
NOV
Excellency:
In the memorandum accompanying the tentative draft proposal
for an international stabilization fund, which I sent to the Ministers
of Pinance of the United Nations some months ago, I saids "It is
anticipated that there will also be submitted for consideration a
preliminary draft of a proposal for an international agency whose
function will be to provide capital for reconstruction and develop-
ment."
The preliminary draft of a tentative proposal for a United Nations
Bank for Reconstruction and Development has now been prepared by the
technical staff of the United States Treasury in consultation with the
technical staffs of other departments of this Government. The draft
is designedly in abbreviated form, intended to bring out at this stage
only the more significant points for consideration and discussion.
This tentative proposal is not an expression of the official views
of this Government, but it is an indication of the views held by our
technical experts. I an now sending for your examination this
tentative proposal, which I hope you will submit to the technical
staffs of your Ministry and your Government for their study.
After you and your experts have studied this tentative proposal,
I shall be glad to have such comments and suggestions as you may wish
to make, or to receive any alternative proposal for the provision of
long-term international credits for reconstruction and development
that you may care to submit. If any of your experts should be in
Washington, the technical experts of this Government will be glad to
discuss the tentative proposal with them.
We hope to send you soon some further material amplifying and
discussing many of the provisions in the outlined draft proposal.
Sincerely yours,
Secretary of the Treasury.
His Excellency, H. H. Kung,
The Minister of Finance,
The Republic of China,
Chungking, China.
Enclosure
11/13/43
Regraded Unclassified
191
25
NOV
Excellency:
In the memorandum accompanying the tentative draft proposal for
an international stabiliestion fund, which I sent some months ago to
the Ministers of Finance of the United Nations and the countries II-
sociated with them, I saids "It is anticipated that there will also
be submitted for consideration a preliminary draft of & proposal for
an international agency whose function will be to provide capital for
reconstruction and development."
The preliminary draft of a tentative proposal for & United Nations
Bank for Reconstruction and Development has now been prepared by the
technical staff of the United States Treasury in consul tation with the
technical staffs of other departments of this Government. The draft
is designedly in abbreviated form, intended to bring out at this stage
only the more significant points for consideration and discussion.
This tentative proposal is not an expression of the official views
of this Government, but it is an indication of the views held by our
technical experts. I an now sending for your examination this tenta-
tive proposal, which I hope you will submit to the technical staffs
of your Ministry and your Government for their study.
After you and your experts have studied this tentative proposal,
I shall be glad to have such comments and suggestions as you may wish
to make, or to receive any alternative proposal for the provision of
long-term international credits for reconstruction and development
that you may care to submit. If any of your siperts should be in
Washington, the technical experts of this Government will be glad to
discuss the tentative proposal with them.
No hope to send you MOOD some further material amplifying and
discussing many of the provisions in the outlined draft proposal.
Sincerely yours,
Secretary of the Treasury.
His Excellency, Carlos Lleras Restropo,
The Minister of Finance,
The Republic of Colombia,
Bogota, Colombia.
Enclosure
HDW:EMB:ff 11/16/43
Regraded Unclassified
192
25
NOV 2 2
Excellency:
In the memorandum accompanying the tentative draft proposal
for an international stabilisation fund, which I sent to the Ministers
of Finance of the United Nations 80100 months ago, I said, "It is
anticipated that there will also be submitted for consideration a
preliminary draft of a proposal for an international agency whose
function will be to provide capital for reconstruction and develop-
ment."
The preliminary draft of a tentative proposal for a United Nations
Bank for Reconstruction and Development has now been prepared by the
technical staff of the United States Treasury in consultation with the
technical staffs of other departments of this Government. The draft
is designedly in abbreviated form, intended to bring out at this stage
only the more significant points for consideration and discussion.
This tentative proposal is not an expression of the official views
of this Government, but it is an indication of the views held by our
technical experts. I am now sending for your examination this
tentative proposal, which I hope you will submit to the technical
staffs of your Ministry and your Government for their study.
After you and your experts have studied this tentative proposal,
I shall be glad to have such comments and suggestions as you may wish
to make, or to receive any alternative proposal for the provision of
long-term international credits for reconstruction and development
that you may care to submit. If any of your experts should be in
Washington, the technical experts of this Government will be glad to
discuss the tentative proposal with them.
No hope to send you soon some further material amplifying and
discussing any of the provisions in the outlined draft proposal.
Sincerely yours,
Secretary of the Treasury.
His Excellency,
Francisco de Paula Outierres Rose,
The Minister of Finance,
The Republic of Costs Rioa,
San Jose, Costa Rica.
Enclosure
Regraded Unclassified
193
25
MOV 22 1943
Excellency:
In the memorandus accompanying the tentative draft proposal
for an international stabilisation fund, which I sent to the Ministers
of Finance of the United Nations some months ago, I said: "It is
anticipated that there will also be submitted for consideration a
preliminary draft of 8 proposal for an international agency whose
function will be to provide capital for reconstruction and develop-
ment."
The preliminary draft of a tentative proposal for a United Nations
Bank for Reconstruction and Development has now been prepared by the
technical staff of the United States Treasury in consul tation with the
technical staffs of other departments of this Government. The draft
is designedly in abbreviated form, intended to bring out at this stage
only the more significant points for consideration and discussion.
This tentative proposal is not an expression of the official views
of this Government, but it is an indication of the views held by our
technical experts. I an now sending for your examination this
tentative proposal, which I hope you will submit to the technical
staffs of your Ministry and your Government for their study.
After you and your experts have studied this tentative proposal,
I shall be glad to have such comments and suggestions as you may wish
to make, or to receive any alternative proposal for the provision of
long-term international credits for reconstruction and development
that you may care to submit. If any of your experts should be in
Washington, the technical experts of this Government will be glad to
discuss the tentative proposal with them.
We hope to send you soon some further material amplifying and
discussing many of the provisions in the outlined draft proposal.
Sincerely yours,
Secretary of the Treasury.
His Excellency, Eduardo I. Montoulieu,
The Minister of Finance,
The Republic of Cube,
Habana, Cuba.
Enclosure
11,3:5h
11/13/43
Regraded Unclassified
194
25
NOV 2 1943
Excellency:
In the memorandum accompanying the tentative draft proposal
for an international stabilisation fund, which I sent to the Ministers
of Finance of the United Nations some months ago, I saids "It is
anticipated that there will also be submitted for consideration a
preliminary draft of . proposal for an international agency whose
function will be to provide capital for reconstruction and develop-
ment."
The preliminary draft of a tentative proposal for a United Nations
Bank for Reconstruction and Development has now been prepared by the
technical staff of the United States Treasury in consultation with the
technical staffs of other departments of this Government. The draft
is designedly in abbreviated form, intended to bring out at this stage
only the more significant points for consideration and discussion.
This tentative proposal is not an expression of the official views
of this Government, but it is an indication of the views held by our
technical experts. I as now sending for your examination this
tentative proposal, which I hope you will submit to the technical
staffs of your Ministry and your Government for their study.
After you and your experts have studied this tentative proposal,
I shall be glad to have such comments and suggestions as you may wish
to make, or to receive any alternative proposal for the provision of
long-term international credits for reconstruction and development
that you may care to submit. If any of your experte should be in
Washington, the technical experts of this Government will be glad to
discuss the tentative proposal with them.
We hope to send you soon BORN further material amplifying and
discussing many of the provisions in the outlined draft proposal.
Sincerely yours,
Secretary of the Treasury.
His Excellency, Ledislav Peierabend,
The Minister of Pinance,
The Republic of Csechoalovakia,
Pursecroft, Brown Street,
London, England.
Enclosure
11/15/23
Regraded Unclassified
195
25
NOV 2 2 1943
Excellency:
In the memorandum accompanying the tentative draft proposal
for an international stabilisation fund, which I sent to the Ministers
of Finance of the United Nations some months ago, I said: "It is
anticipated that there will also be submitted for consideration a
preliminary draft of a proposal for an international agency whose
function will be to provide capital for reconstruction and develop-
ment."
The preliminary draft of a tentative proposal for a United Nations
Bank for Reconstruction and Development has now been prepared by the
technical staff of the United States Treasury in consultation with the
technical staffs of other departments of this Government. The draft
is designedly in abbreviated form, intended to bring out at this stage
only the more significant points for consideration and discussion.
This tentative proposal is not an expression of the official views
of this Government, but it is an indication of the views held by our
technical experts. I an now sending for your examination this
tentative proposal, which I hope you will submit to the technical
staffs of your Ministry and your Government for their study.
After you and your experts have studied this tentative proposal,
I shall be glad to have such comments and suggestions as you may wish
to make, or to receive any alternative proposal for the provision of
long-term international credits for reconstruction and development
that you may care to submit. If any of your experts should be in
Washington, the technical experts of this Government will be (lad to
discuss the tentative proposal with them.
We hope to send you soon some further material amplifying and
discussing many of the provisions in the outlined draft proposal.
Sincerely yours,
Secretary of the Treasury.
läs Excellency, J. Furey Pichardo,
The Minister of Finance,
Dominican Republic,
Santo Domingo, Dominican Republic.
Enclosure
21/25/45
Regraded Unclassified
186
NOV 2 1943
Iscellencys
In the menorandus accompanying the tentative draft proposal
for an international stabilisation fund, which I ment to the
Mindsters of Finance of the United Nations smie months ago, I
saids "It 10 anticipated that there will also be submitted for
consideration a preliminary draft of a proposal for an inter-
national agency whose function will be to provide capital for
reconstruction and development."
The preliminary draft of a tentative proposal for as United
"ations Bank for Reconstruction and Development has now been
propared by the technical staff of the United States Treasury in
consultation with the technical state of other departments of
this Government. The draft is designedly in abbreviated form,
intended to bring out at this stage only the sore inficant
points for consideration and discussion. This tentative proposal
1s not an expression of the official views of this Government,
but :t is an indication of the views held by our technical experts.
an now sending for your examination this tentative proposal,
which : hope you will subsit to the technical staffe of your
Vinistry and your Government for their study.
After you and your experts have studied this tentative proposal,
1 shall be glad to have such comments and suggestions as you may
wish to make, or to receive any alternative proposal for the ,500
vision of long-term international credits for reconstruction and
development that you may care to submit. If any of your experts
should be in Washington, the technical experts of this Government
will be glad to discuss the tentative proposal with thes.
lie hope to send you soon some further material amplifying and
discussing nany of the provisions in the outlined draft proposal.
Sincerely yours,
secretary of UN Treasury
de Excellency, Modrige Sensyon,
The Winister of Finance,
The Republic of a Selvador,
an salvador, a Salvador.
enclasure. 11/13/43
Regraded Unclassified
187
25
NOV 2 2 1943
Excellency:
In the sesarandem assompanying the tentative draft proposal for
an international stabilisation fund, which I sent some months age to
the l/inisters of Pinance of the United Nations and the countries #
sociated with them, I said: "It is antisipated that there will also
be submitted for consideration a preliminary draft of a proposal for
an international agency whose function will be to provide capital for
reconstruction and development."
The preliminary draft of & tentative proposal for a United Nations
Bank for Reconstruction and Development has now besn prepared by the
technical staff of the United States Treasury in consultation with the
technical staffs of other departments of this Government. The draft
is designedly in abbreviated form, intended to bring out at this stage
only the more significant points for consideration and discussion.
This tentative proposal is not an expression of the official views
of this Government, but 11 is an indication of the views held by our
technical experts. I an new sending for your examination this tenta-
tive proposal, which I hope you will submit to the technical staffs
of your Ministry and your Government for their study.
After you and your exports have studied this tentative preposal,
I shall be glad to have such comments and suggestions as you may wish
to make, or to receive any alternative proposal for the provision of
long-term international credits for resonstruction and development
that you my care to submit. If Any at.)FU enjerts chould be in
Washington, the technical experts of this Government will be glad to
disease the tentative proposal with them.
The hope to send you soon some further material emplifying and
discussing may of the provisions in the outlined draft proposal.
Sincerely yours,
Secretary of the Treasury.
His Excellency, Alberto Wright Vallarine,
The Minister of Finance,
The Republic of Bounder,
Quite, Equador.
Enclosure
HDW.EMB,ff 11/16/43
Regraded Unclassified
197
25
NOV 2 2 1943
Excellency:
In the assocrandem accompanying the tentative draft proposal for
an international stabilisation fund, which I sent some months age to
the l'inisters of Finance of the United Nations and the countries -
sociated with them, 1 said: "It is anticipated that there will also
be submitted for consideration a preliminary draft of a proposal for
an international agency whose function will be to provide capital for
reconstruction and development."
The preliminary draft of a tentative proposal for a United Nations
bank for Reconstruction and Development has now been prepared by the
technical staff of the United States Treasury in consultation with the
technical staffs of other departments of this Government. The draft
is designedly in abbreviated form, intended to bring out at this stage
only the more significant points for consideration and discussion.
This tentative proposal is not an expression of the official views
of this Government, but 10 is an indication of the views hald by our
technical experts. I as DOW sending for your examination this tenta-
tive proposal, which I hope you will submit to the technical staffs
of your Ministry and your Government for their study.
After you and your experts have studied this tentative proposal,
I shall be glad to have such comments and suggestions as you may wish
to make, or to receive any alternative proposal for the provision of
long-term international credits for reconstruction and development
that you my eare to submit. If any of your experts should be in
Washington, the technical experts of this Government will be glad to
discuss the tentative preposal with them.
The hope to send you soon some further material explifying and
discussing may of the provisions in the outlined draft proposal.
Sincerely yours,
Secretary of the Treasury.
His Excellency, Alberto Wright Vallarine,
The Minister of Finance,
The Republis of Beusder,
Guito, Lounder.
Enclosure
HDW:EMB,ff 11/16/43
Regraded Unclassified
198
NOT RU or, RE-TRANS.,ITTED
U.S. SECRET
COPY NO
12
BRITISE MUST SECRET
OPTED No. 384
Information received up to 10 A.B. 23rd November, 1943.
1, NAVAL
Home aters Plst. One of H.I. Destruyers slightly damaged in S.W.
Approaches during attack of Hoinkel 177. 2 alider Sombs
shot dom.
Mediterranean Remaining British have do been evacuate from SALUS ith
1,000 Greeks, and 400 Italians. Most o: priseners capture?
in and 186 garrisonson nave reached / lided Bases.
Anti-Lubmarine 21st. / U-Boat probably sun: in S. Approaches by a
Sloop and a Frigate.
2.
Italy Operations still hanpere: by eather. Cur pateds report success-
ful enga ements with cnew? formed elements in upper reaches of
tives SANGRO irom CASTE. DI (15 N. ISERVIA) for COOLE 8 miles to the
Northeast. Further progress this been cade nione road South of ALREDENA (5 nilor
0.7. CASTED D1 SANGRO).
3. AIR SPeanfieds
Vestorn Front 22nd/23rd. mircraft despatched B.R.L. 766 (26 missing,
3 crashed), LEVERKUSE. 12, Sea. -mining 14, Intruders 14,
Anti-shipping 4, Leaflets 12, (one crashed). BERLIN obscured by clouds.
C nonatrations of fires reported. Per enery fighters seen.
Italy 21st. 85 Maranders (8.26) dropped 41 tono on CIVITAVECCHIA town and
harbour, 41 tons on FANO BRIDGE (30 miles N.S. ANCONA), 27 tons on
railway centre at CHIBS1 (23 miles W.S.A. of PERUGIA). Fightors fiew 94 sorties
against strong points in the LANCIANO acoa.
Albania 21st., Spitfire: attacked torgets 8.6. of DURAZZO.
Crete 21st/22nd. 9 Halifaxes and 4 Liborators (3.24) bombod HERALDIOS.
Burma 21st/22nd. Wellingtons and Liborators (3.4) dropped 32 tons on
SAGAING (20 miles 1,8.7. of
Telgram No. 383 not aent to Washington,
Regraded TREASURY Uncla ssified
1943 NOV
SECRET
199
NOV N 25 1943
MEMORANDUM FOR SECRETARY'S DIARY
At 9:30 a.m. Wednesday, November 24, 1943, there was
a. meeting in Secretary Hull's office to discuss the freezing
of Argentina. The following were present:
From the State Department
From the Treasury Department
Secretary Hull
Secretary Morgenthau
Assistant Secretary Berle
Mr. Paul
Mr. Collado
Mr. White
Mr. Duggan
Mr. Pehle
Mr. Bonsal
Secretary Morgenthau handed to Mr. Hull a letter
(Exhibit A attached) which describes recent transactions in
Argentine accounts and the continued efflux of Argentine
gold from the United States. The letter also refers to the
fact that Treasury has not received a reply to its memorandum
to the Secretary of State of November 12, transmitting a
proposed reply to the inquiry of Congressman Schiffler, who
has since introduced a bill (H. R. 3696) authorizing the
seizure of property being used to aid any nation at war with
the United States. Secretary Hull read Secretary Morgenthau's
letter aloud.
Secretary Morgenthau then inquired whether Under Secretary
Stettinius wa.s available since certain of his comments would
be critical of Stettinius. Stettinius was sent for but was
found to be at home ill and Secretary Hull asked that we
proceed in his absence. Secretary Morgenthau then said that
he thought that the cable (No. 1644, October 24) which
Stettinius sent to Hull at Moscow was very unfair in stating
that the purpose of the Treasury in advocating the freezing
of Argentina was the upsetting of the present Argentine
Government. Secretary Morgenthau made it clear that the
Treasury was advocating the freezing of Argentina on economic
warfare grounds and the question of whether any government
should be overthrown was for the Secretary of State to
determine. Secretary Hull then said: "I would like to see
the present government of Argentina overthrown".
Regraded Unclassified
200
- 2 -
Secretary Morgenthau then summarized the case for
freezing Argentina and pointed out that the facts were in
the possession of the State Department and Ambassador
Armour. He pointed out that Argentina had made specific
commitments at the Rio conference held in January 1942 and
at the Washington conference held in July 1942, and that
Argentina had not lived up to its commitments. When asked
to comment on the matter, Mr. Berle said that freezing of
Argentina would constitute but a. minor gain on the economic
warfare front whereas its political aspects were quite
disturbing. He said that several Latin American governments
had expressed themselves as being very worried about our
taking strong action against Argentina. Secretary Morgenthau
then pointed out that our failure to act against Argentina
when the other Latin American governments in Argentina
were cooperating with us had a bad effect on the other
governments.
Assistant Secretary Berle then said that the situation
had not worsened any in Argentina but that the Argentine
Government had merely continued to fail to take affirmative
measures to support our war effort. Pehle pointed out that
Armour in his recent cables had made it quite clear that
while the Argentine Government for sometime has been aiding
the Axis by failing to cooperate with the United States in
economic warfare matters, more recently the Argentine
Government has been actively aiding the Axis by making loans
to German business enterprises through the banks which it
controls, insisting that Argentinians deal with such business
enterprises, giving large government contracts to notorious
German concerns, etc.
At this point Secretary Hull said that perhaps we should
consult with the other principal Latin American Republics
Government's freezing Argentina and to the extent possible
to see if they would be willing to publicly approve this
take similar action themselves. Mr. Hull said he felt this
would be worth doing, even though he was afraid the Latin
American governments would "duck out" of taking any such
measures. There was some discussion as to whether the
proposal to be put up to some of the other Latin American
countries should include giving the Argentine Government
and perhaps the Central Bank a general license. Secretary be
Morgenthau suggested that the proposition which should
Regraded Unclassified
201
- 3 -
put up to such governments would be to treat Argentina
just as the United States is treating the European neutrals
who have been frozen and then given general licenses.
Collado then said that the State Department had
called Merle Bohan, Economic Counsellor of our Embassy
in Argentina, to the United States for consultation and
that Bohan, who had advocated freezing a few weeks ago,
now felt that the time had passed for such measures.
Bohan advocated instead that we tell the Argentine Government
that Treasury would consider unfreezing Banco de la Provincia
and the Banco de la Nacion if the Argentine Government would
give this Government broad undertakings on the economic
warfare front. Bohan does not believe the Argentine
Government will give us such undertakings, in which case
the State Department would be prepared to ask Treasury to
introduce a monitoring system on Argentine assets in the
United States. Collado said that the monitoring system
would accomplish the same ends as freezing Argentina with
a general license to the Argentine Government and possibly
a general license on trade. Secretary Morgenthau said that
Treasury would be glad to give State's suggestions on a
monitoring system consideration but that just as the
decision on the political aspects were for State, we
assumed that State would want our views as to the type of
freezing control which should be applied.
There wa.s then some discussion of whether the British
would be willing to take parallel action against Argentina.
Mr. Bonsal said he had discussed the matter with British
representatives here and the British had made three points:
1. They would feel very badly if we froze
Argentina without consulting them, since
the British say they have been trying to
follow a parallel policy with respect to
Argentina.
2. In view of the exchange controls now
Argentine assets there would be little
applicable in the United Kingdom on
to be gained by Britain taking similar
action.
Regraded Unclassified
202
- 4 -
3. The British do not believe there would
be any substantial gains on the economic
warfare front by the United States freezing
Argentina.
Secretary Morgenthau said that it would be helpful if the
matter were discussed a little more frankly, at which
point Mr. Bonsal said he agreed with the British position.
Secretary Morgenthau added that he would like to see the
matter put up to the British in writing with a request
for a written reply so that the record will show whether
the British are willing to follow a parallel policy in
this matter.
As the matter was left, Secretary Hull concurred in
approaching the principal Latin American countries and the
British on the proposal that Argentina be frozen and general
licenses be issued on the same basis as is the case with
Portugal, Spain, and the other European neutrals. If we
are not able to obtain any concurrence in such action,
particularly from the other Latin American countries, we
can then canvas what action should be taken. We will also
examine the monitoring system proposed by State. Collado
handed Pehle several memoranda describing the proposed
monitoring plan and also indicating in some detail the
basis for the State Department's position. Copies of such
memoranda are attached (Exhibit B).
Regraded Unclassified
EXHIBIT A
203
November 24, 1943
My dear Cordell:
Since writing you on November 12, 1943, three further
shipments of gold of approximately $1,250,000 each. held by
the Argentine Central Bank in this country have left the
United States bound for the Argentine. This makes a total
efflux from the United States since November 4, 1943, of
approximately $6,250,000 of Argentine gold.
Subsequent to the transfers reported in my memorandum
of November 8, 1943, to the Acting Secretary of State, there
has been a. flight of $2,178,000 from Argentine accounts to the
accounts of other countries, mostly to Uruguay but also to
Sweden, Panama, Chile, and Colombia, and sums aggregating
$9,785,000 have been transferred to the account of the
Argentine Central Bank from other Argentine banks.
Since my memorandum to you of November 12 transmitting
a copy of a letter from Congressman Schiffler on Argentine
gold together with a proposed reply, Congressman Schiffler
has introduced a Bill, H. R. 3696, a copy of which is attached.
This Bill would authorize the seizure of certain property
"which is being used or which is about to be used, to aid
any nation at war with the United States" and is obviously
addressed to the Argentine situation. I think it would be
advisable to make a prompt reply to Mr. Schiffler on the
inquiry which he has made, and I should appreciate having
your comments on the reply proposed by the Treasury.
Sincerely,
(Signed) H. Morgenthau, Jr.
The Honorable,
The Secretary of State.
Regraded Unclassified
EXHIBIT A
203
November 24, 1943
My dear Cordell:
Since writing you on November 12, 1943, three further
shipments of gold of approximately $1,250,000 each. held by
the Argentine Central Bank in this country have left the
United States bound for the Argentine. This makes a total
efflux from the United States since November 4, 1943, of
approximately $6,250,000 of Argentine gold.
Subsequent to the transfers reported in my memorandum
of November 8, 1943, to the Acting Secretary of State, there
has been a flight of $2,178,000 from Argentine accounts to the
accounts of other countries, mostly to Uruguay but also to
Sweden, Panama, Chile, and Colombia, and sums aggregating
$9,785,000 have been transferred to the account of the
Argentine Central Bank from other Argentine banks.
Since my memorandum to you of November 12 transmitting
a copy of a letter from Congressman Schiffler on Argentine
gold together with a proposed reply, Congressman Schiffler
has introduced a. Bill, H. R. 3696, a copy of which is attached.
This Bill would authorize the seizure of certain property
"which is being used or which is about to be used, to aid
any nation at war with the United States" and is obviously
addressed to the Argentine situation. I think it would be
advisable to make a prompt reply to Mr. Schiffler on the
inquiry which he has made, and I should appreciate having
your comments on the reply proposed by the Treasury.
Sincerely,
(Signed) H. Morgenthau, Jr.
The Honorable,
The Secretary of State.
Regraded Unclassified
204
TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION
DATE November 24, 1941
TO
Secretary Morgenthau
FROM
Randolph Paul
As we left the meeting at State this morning Collado
handed Pehle several memoranda on the Argentine situation
which had been prepared for internal use in State. Col-
lado handed these documents to Pehle in order to enable
Treasury to get a better idea of the monitoring system
proposed by the State Department. The documents are very
interesting on several grounds and you will want to read
them over. we are studying the proposed monitoring system
very carefully and will let you have our views with respect
to it.
You will be particularly interested in the note which
appears on one of the documents in Mr. Berle's handwriting
reading as follows:
"I should agree with this* if Treasury will
settle on that basis. But it ought to be a
genuine acceptance, - not a mere step toward
another dive into a tangled thing."
The original documents have been returned to Collado.
Bot
(* - Berle is referring to the proposed monitoring
system.)
Regraded Unclassified
DEPARTMENT OF STATE
SPECIAL ASSISTANT TO THE UNDER SECRETARY
November 18, 1943
U - Mr. Stettinius:
S - The Secretary:
(Copies to A-A, A-B, PA/LD, RA - Mr. Bonsal,
FD and WT)
Argentina - Foreign Funds Control
Reference is made to my memorandum of November 8
and the joint memorandum of Messrs. Bonsal, Duggan and
myself of November 13 recommending a special monitoring
system of Argentine international transactions. I have
discussed these matters in detail with Mr. Bohan, Economic
Counsellor of the Buenos Aires Embassy, who has pointed
out that our failure to take further action regarding the
Banco de la Nación and the Banco de la Provincia, which
have been ad hoc blocked, invites retaliation by Argentina
much more than would more generalized action against
Argentine transactions. He has provided the attached
me memorandum presenting a special solution to the problem
of the two banks.
I should now like to recommend, with his concurrence,
the following modified program:
A. Authorize Ambassador Armour to inform the
Foreign and Finance Ministers that the Treasury is
willing to consider removing the two banks from the
list of Special Blocked Nationals but requests that
the Argentine Government be more specific as to the
steps which it is willing to take in order to pre-
vent the recurrence of types of transactions which
have in the past tended to aid the Axis. Speci-
fically, would the Argentine Government be willing
to guarantee:
1. In General
a. That no remittances would be made
from Argentina to Axis and Axis-occupied
countries or to third countries in cases
where the beneficial interest resided in
Axis
Regraded Unclassified
-2-
Axis or Axis-occupied countries.
b. That no credits or overdrafts
would be extended to firms in Argentina
whose activities are inimical to the
security of the hemisphere.
C.a That information would be made
available concerning the beneficial
ownership of dollar balances and securi-
ties held in the name of Argentine bank-
ing and other financial institutions;
especially any holdings for nationals of
Axis or Axis-occupied countries.
2. That the two banks, in their character
as private banks, would give, through their
United States correspondents, the necessary
commitments to the Treasury with respect to
remittances abroad and credits and overdrafts
to Proclaimed List nationals.
B. If Argentina turns down this proposal or
delays unduly in considering it, proceed with the
positive program outlined in the memorandum of
November 13:
"(2) The Treasury, after agreement with the
Department as to procedure, institute a 5 pecial
monitoring system of Argentine international
transactions designed to catch and subject to
special blooking action those international
financial transactions which may be of benefit
to the enemy. Under such a system banks would
be instructed:
"a, To interpose no hindrance whatever
to commercial transactions and transactions
incident to commerce.
"b. To interpose no obstacle to Argentine
transactions which merely involve transfers
of funds within the United States.
"c. To
Regraded Unclassified
-3-
"c. To require evidence as to the pur-
poses of all other types of transactions
which means, in effect, Argentine inter-
national transactions of a purely finance
character. To facilitate rapid monitoring
and speedy approval of legitimate transactions,
the Federal Reserve Bank of New York should
be generally authorized to make such examina-
tion and grant such approval, and possibly
later such general authorization on at least
limited calsses of general transactions might
be extended to the banks themselves.
"(3) The special blocked status of the Banco
de la Nacion and the Banco de la Provincia be
retained but commercial banks be authorized to
permit all commercial transactions and trans-
actions incident to commerce."
I understand that the Secretary is planning to dio-
ouss this whole matter with the Secretary of the Treasury,
If the above recommendations are thought to have merit,
I should like to be authorized to discuss, at an appro-
priate time, their mechanics with Mr. Pehle of the Treasury.
Emilio Ege 6% Collado
EA/C:EGC:ja
Regraded Unclassified
MEMORANDUM
TO:
Mr. Collado
FROM:
Merwin Bohan
With reference to point 3 of the recommendations
in the memorandum "The Argentine Situation" of November 13,
1943, the following suggestions are submitted for your
consideration.
As you are well aware, both the Department and the
Embassy were always opposed to the ad hoo blocking of
the Nación and Provincia. The Embassy fully realized the
situation which brought about the Department's approval
of the measure taken by the Treasury in this regard.
However, we are in a rather weak position with respect
to these banks and, in viow of the "guarantees" which
the Argentine Government is prepared to give us, it is
essential that an effort be made to get out of the situa-
tion we are in as speedily and effectively as we can.
We cannot merely eliminate these institutions from
the List of Specially Blocked Nationals. Do you not
think that it would be wise to authorize the Ambassador
to inform the Foreign Minister along the following lines:
That the Treasury Department is willing to
consider the de-listing of the two banks but re-
quests that the Argentine Government be more
specific as to the steps which it is willing to
take in order to prevent the recurrence of trans-
actions which have tended to aid the Axis in the
past. Specifically, would the Argentine Govern-
ment be willing to guarantee: (a) that no remit-
tances would be made from Argentina to Axis and
Axis-occupied countries or to third countries where
the beneficial interest resided in Axis or Axis-
occupied countries; (b) that no credits or over-
drafts would be extended to firms in Argentina
whose activities are inimical to the security of
the hemisphere; (c) that, upon request, informa-
tion would be furnished concerning the beneficial
ownership of accounts held in the name of Argentine
banking
Regraded Unclassified
-2-
banking or other financial institutions; (d) that
the Nación and Provincia, in their character as
private banks, would give, through their American
correspondents, the necessary commitments to the
Treasury Department with respect to remittances
abroad and credits and overdrafts to Proclaimed
List nationals.
It is to be noted that the Proclaimed List is intro-
duoed only with respect to private commitments to be given
by the banks to the Treasury. The chances are that we
cannot get away with it, but there would be no objection
to our trying and then giving some ground if the need arose.
Incidentally, I would not give two cents for any commit-
ments made by the present Argentine Government, but if
the commitments are made and then not carried out we would
be in an excellent position to again consider the question
of general freezing. It would seem advisable, if the
Argentine Government agrees to give these commitments, to
follow its specific request that the two banks be de-listed
before the commitments are formally entered into.
November 16, 1943
MB:ja
Regraded Unclassified
care for mr Collabo
November 13, 1943.
S:
The Secretary
THE
11UAY1
I. Political Background.
It 10 nov clear that the June revolution was
motivated by internal considerations rather than any
desire to change the Argentine Government's foreign
policy. The officers who engineered the revolution were
the leading members of e military organization known as
G.O.U., a groun of extress Nationalists. This group
opposed the presidential candidacy of Patron Contas, a
Moderate, who had received the blessing of President
Cestillo and who was to have been nominated on the day of
the revolution no the presidential candidate of the
National Democratic Party. The present Government code
posed almost entirely of military men has endeavored to
strengthen its position by repressive measures of the
familiar totalitarian nattern. The undisputed leader
under Hamirez 10 Colonel Juan Domingo Peron, now Under
Secretary of War. The Government professes to be protect-
ing the country from corrupt, self-seeking exploitation
of the professional politicians. Its attitude has been
anti-American, nro-Nazi and chauvinistic. There has
also teen a strong clerical influence.
Following the resignation of Admiral Storni at
Foreign Minister, three other Cabinet members who were
considered friendly towards the United States were replaced
by Argentine Nationalists. Custavo Martinez Zuviria was
eppointed Minister of Justice and Public Instruction; Cesar
Minister of Public Works. The latter's appointment is the
Ameghino, Minister of Finance; and Captain Ricardo Vago,
most favorable from our point of view, as Vago enjoye a
General Farrell has been named Vice President and General
good reputation and has never been involved in polities.
Gilbert has replaced Foreign Minister Storni.
The Government gained initial popularity anong the
people by lowering public utility rates and adopting other
measures
Regraded Unclassified
measures designed to reduce the coste of living for the
working people. In recent sonths, however, the repressive
measures of the Government, including closing of universi-
ties, press and radin censorahip, the ban on cert-in Jewish
newspapers, arresto of lator lenders and the cancelation of
elections have alion ted lorge sections of the Argentine
people. The dismissal of a considerable number of university
professors for having indicated their disagreement with
the Government's Dolloy and the Nazi-natterned taotics
adopted against the Jowieh press have evoked criticism in
the other American resublics, many of which have been out-
spoken in their condemnation of the repressive sotivities
of the present Argentine Government. Our own interests
appear to be affected by a recent pronosal to replace all
foreign employees of national, provincial and private tele-
communications systems in Argentina with notive Argentines
since the key managerial employees of these companies are
for the most nart Amrioan or British.
More recently, and especially since the triumph of
the extreme Nationalistic group within the Government, there
have been signe that the repressive measures above described
have tended to shake the prosperous annthy of the Argentine
people. Student riots have opused the closing of universities.
Labor is unsettled with a general strike being agitated.
The prospects of an overturn in the near future are not
bright.
II, Freezing of Argentine Assets.
In May 1942, the Treasury in a memorandum recommended
that all Argentine funds in the United States be frozen
and that a general license be issued for purely commercial
transactions. This recommendation was based on Argentina's
failure to collaborate with the other American recublics.
The Department opposed the proposal of the Treasury
Department on grounds of foreign policy and because it be-
lieved the result of the proposed action would be mis-
interpreted in the other American recublics and would
alienate our friends in the Argentine. The President oon-
ourred in the Department's views.
The
Regraded Unclassified
- 3 -
The Treasury has repeatedly renewed its proposal.
On October 20, 1943, Ambasandor Armour suggested that
since Senor Prebisch, Director of the Banoo Central, who
had cooperated with us, was being forced out of the Banco
Central, together with certain friendly officials of the
Ministry of Finance, the Treasury Dep: rtment would be
Justified in freezing Argentine funds.
The Treasury, fully supporting the views expressed
by Ambassador Armour, maintained that the freezing of
Argentine nesets was the natural followup to Secretary
Hull's letter to Foreign Minister Storni. It felt that a
dramatic step by us taken at this time would orystallize
the opposition and perhane give Argentina a genuinely pro-
Allied Government.
The Department maintained the position, contrary to
the views of the Treasury and of Ambassador Armour, that
freezing would be undesirable because:
(1) It would not further our economic warfare to any
marked extent.
(2) The political effect of the measure might or
might not be helpful to our immediate interests; it would,
however, be considered both in Argentina and, more 10-
portantly, in the other American republics as an abandonment
by us of the non-intervention policy upon which, the
inter-American system, with all its positive benefits,
rests.
(3) Cooperation of other American recublics as well
as parallel British action would be desirable in the event
the measure were taken but seem difficult of attainment.
The British financial situation vis-a-vis Argentina is
very different from ours.
(4) Retaliatory measures open to Argentina might
adversely affect certain phases of our vital procurement
programs as well AB cause harm to other legitimate United
States interests in Argentina.
The first two of the above reasons were the real
basis of the Department's position.
The
- 4 -
The President, on October 24, supported the Depart-
ment's recommendation but asked that the matter be reviewed
every week or 80.
The Treasury was BO anxious to secure the freezing
that on October 25, it "leaked" a story that this action
was contemplated, in the hope that this would force action.
Although no very large transfers of Argentine assets
from the United States to other countries took place, there
were transfers in considerable amounts from the accounts
of Argentine banke with verious New York banks to the
account of the Central Bank of Argentina with the Federal
Reserve Bank of New York. These resulted from the calling
in by the Central Bank, in accordance with its legal
powers, of the dollar balances of a large number of Argentine
banks (i.e., dollar balance of the latter with New York
banks Bank.) were converted into dollar balances with the Central
Two of the Banks involved, the Banco de la Nacion (a
Government owned) and the Banoo de la Provincia (semi-
Government) were involved to the extent of 19, 500,000 in
the latter type of transaction. Since these banks were
generally though perhaps superficially regarded 88 "bad
metors", the Treasury, with the Department's consent, on
October 28, placed them on the list of specially blooked
nationals.
On October 29, the President again upheld the Depart-
ment's view. The Treasury, however, continues to agitate
will issue although there has been a virtual drying up of
financial transactions of an even remotely suspicious
character.
It should be recorded that the Argentine Government
1st pursuing a policy of gradually removing to Argentina
some $300,000,000 in gold from the United States. By the
end of November $7,500,000 will have moved and sailings
have been arranged for the further shipment of $5,000,000.
Shipments are limited by risks which will be assumed by
insurance companies on any one vessel and by the number of
vessels.
At
Regraded Unclassified
- 6 -
At R soccial meeting of the Departmental Committee
on Political lanning held on November 9, and attended
by Messrs. Pasvoleky, Nornbeok, Murray and Duggan, the
course taken and the position adopted by the Department
to date were assroved.
Becom senintions.
It in recommended that:
(1) No general freezing of Argentine absets and
transactions be undertaken at this time.
(2) The Treasury, after agreement with the Department
BE to procedure, institute A snecial monitoring system of
Argentine international transactions designed to catch and
subject to special blooking action those international
financial transactions which may be of benefit to the
enemy. Under such a system banks would be instructed:
a. To interpose no hindrance whatever to commercial
transactions and transactions incident to commerce.
b. To internose no obstacle to Argentine transactions
which mercly involve transfers of funds within
the United States.
0. To require evidence as to the purposes of all
other types of transactions which means, in effect,
Argentine international transactions of a purely
finance character. To facilitate rapid monitor-
ing and speedy approval of legitimate transactions,
the Federal Reserve Bank of New York should be
generally authorized to make such examination and
grant such approval, and possibly later such
general authorization on at least limited classes
of general transactions might be extended to the
banks thomselves.
(5) The special blooked status of the Banoo de
la Nacion and the Banco de la Provincia be retained but
commercial banks be authorized to permit all commercial
transactions and transactions incident to commerce.
Philin W. Bonsal
Laurence Duggan
Emilio 0. Collade
RA:JKB:PWB; jll
Regraded Unclassified
A.B.Drilg.u
November 6, 1943
WT - Mr. Russell:
RA - Mr. Bonsal:
PA/LD - Mr. Duggan:
A-B A-A - Dr. Mr. Berle: Acheson: I should will ague with two That if backs. Treasury But
-
U - Mr. Stettinius:
it rught sittle ance, to - - be not a a Service toward mere step accept. another
-
Argentine Financial Control Situation
dur wts to us a
tang tangled
thing
The situation today regarding the Argentine financial
picture my be summarised as follows:
alp
(1) No have specially blocked the Banco de la
Nación and the Bance de la Provincia.
(2) All other Argentine transactions are going
forward.
(3) The Secretary of the Treasury has sent a
strong letter to the Department requesting full
freezing.
(4) A reply to the Secretary mainly taking
the position that the matter should await the return
of the Secretary of State is being considered in the
Department.
(5) Ambassador Armour continues to recommend
freezing and has had a discussion with the Argentine
Minister of Finance and Foreign Minister specifically
about the two blecked banks and also touching on the
general situation.
(6) Although some evidence exists on both sides,
the case for specific blocking of the two banks in
the absence of any other financial controls is at
best not very strong.
(7) Ambassador
Regraded Unclassified
(7) Ambassador Armour reports that the
Minister of Finance has indicated that banks would
be willing to supply United States authorities
with full information regarding any operation.
It is net entirely clear whether this refers to
all operations of Argentina or merely these of
the two blocked banks.
I en still of the opinion that much less importance
should be asseribed to this Argentine freesing properal
than either the Treasury or - quarters of the Depart-
news attach to it. Novertheless, it 1a obviously decivable
that the issue be settled in - effective say. It to
accordingly suggested that the following program be put
into effect:
1. The special bleaking of the two banks
be discontimed.
1. In view of the statement of Argantine
Minister of Finance, the Treasury institute a
special menitoring system of Argentine international
transactions designed to eateh and subject to special
bleeking action these international financial teams-
actions which may be of benefit to the enery. Under
such a system banks would be instructed:
a. To interpose no hintrance statever to
cial transactions and tounsactions incident
to commerce.
b. To interpace no obstasle to Argenbine true-
actions which morely involve transfers of
funds within the United States.
0. To require evidence as to the purposes of all
other types of trensactions-which mans, in
effect, Argentime international transactions
of a purely finance character. to facilitate
rapid monitoring and speedy approval of legiti-
mis transactions, the Federal Benerve Bank of
New York should be generally authorized be naise
such ammination and grant such approval, and
possibly later such general authori sakies -
at least limited classes of general transpotions
might be extended to the banks themselves.
This
Regraded Unclassified
-3-
This proposal would appear to meet the legitimate
needs of the various parties to the discussion. It would
provide for the effective control of all of these finan-
sial transactions which the Embassy and the Treasury have
objected to on the grounds of economic warfare. From the
political point of view it would avoid the objections of
classing Argentina with the European neutrals and breaking
down the inter-American system. At the same time, it
would be placing Argentina in a special categery not un-
varranted by Argentina's position in these matters. From
the Embassy's and the Treasury's point of view, this measure
will actually accomplish everything that the general
freezing accompanied by a general license would. It would
not have the initial psychological effect of the general
freeze although astute financial writers might soon detect
that it was net remarkably different in effect.
Emilio G. Collado
EA/C:EGC:ja
218
Fred Smith
November 24, 1943
The Secretary
I like the approach for my tax talk. I think the one I
like the best is where you say that the soldier would get little
satisfaction out of the fact that through Congress trying to
reduce the appropriation of the War Department, they feel that
they will not have to increase the taxes, and in that way leave
the increased debt burden for the soldier to bear when he returns
from the war. I think that this is so good that it should be
repeated at the end and emphasized.
The part which is not in this speech, and which I would
like to have in it, if possible, 18 to show the group who will
be free from tax if we lift the Victory Tax from them, how much
taxes they now pay the federal government on their cigarettes
and other federal taxes will be fixed as a separate section.
I think I mentioned that yesterday. Anyway, I would like to
have it on the group who will be free from taxes -- I think that
represents nine million people -- whatever the group is -- how
much taxes will they pay in excise taxes -- federal excise taxes,
gasoline, and 80 forth. I think this is terribly important,
and I hope that Blough has the figure, and you can get it and
include it in my talk.
Regraded Unclassified.
219
Fred Smith
- 2 -
I think the end is a little involved. I like the first
two-thirds. I think that is excellent, and I'll talk to you
about the whole thing as soon as I get back from seeing Cordell
Hull today. Finished
Regraded Unclassified
220
November 24, 1943
11:00 a.m.
TAXES
Present: Mr. Bell
Mr. Haas
Mr. Lindow
Mr. Blough
Mr. Tickton
Mr. Surrey
Mr. Paul
Mr. Smith
Mr. White
Mrs. Klotz
H.M.JR: Now, where were we? Mr. Beil, would you
report first, please?
MR. BELL: I haven't anything from the Budget. I
have been in touch with them, but they worked last night
on a statement and Wayne Coy said he thought he would have
something to show me right after lunch. They are revising
their estimates; they are attempting to get out a very short
Budget summation.
H.M.JR: By Friday?
MR. BELL: Yes, Friday morning. And George is working
on the receipt end to see whether or not we want to revise
those.
H.M.JR: Are your boys brought up to date?
MR. PAUL: Yes, I know about that.
H.M.JR: I think that would be most helpful. Now,
is that all? You ride that hard. You (Bell) are going
away tonight?
Regraded Unclassified
221
- 2 -
MR. BELL: I will be back Friday morning. I am leaving
about five o'clock.
MRS. KLOTZ: No significance, really. (Laughter)
H.M.JR: What happened?
MRS. KLOTZ: I was sort of talking to Harry, just
with my eyes.
MR. WHITE: She was laughing at 8 joke I didn't tell
her.
MRS. KLOTZ: It has nothing to do with this. I am
sorry.
H.M.JR: Blough, how are you coming along?
MR. BLOUGH: The easiest job you asked for is done.
We always do the easiest ones first. That is on the sales
tax. The income tables are rapidly approaching completion
on the first time around, and I think we will have some-
thing for you on that. This is sales tax, here. (Mr.
Blough handed the Secretary chart entitled "Ten Percent
Federal Retail Sales Tax,' copy attached.)
H.M.JR: Exemptions?
MR. BLOUGH: Yes.
H.M.JR: If you put a ten percent tax--
MR. BLOUGH: Here we have a ten percent retail sales
tax. The total yield on the estimates now available would
be six point three billion, two point four billion is food;
that would bring your total down to three point nine billion,
shown on the left, accumulative totals. If medicine were
bringing the total down to three point seven. If clothing
exempt it would be another two hundred million dollars,
were exempt, it would bring it down another one billion one
hundred million dollars, leaving two point six.
Regraded Unclassified
222
- 3 -
Then there is a lot of stuff, principally liquor and
tobacco, already taxed under excise taxes, which can be
changed any way you may want to change them; the Congress
way want to, and therefore not need a sales tax.
If those were exempt you would have one point two
billion dollars off, leaving one point four billion dollars.
That includes everything else. We could break it down still
further, but it seemed more effective not to - household
furniture, business equipment subject to tax, certain
services, and so forth, are in the one point four.
H.M.JR: Has this ever been gotten out this way?
MR. BLOUGH: We have never charted it this way, no.
H.M.JR: It is good.
MR. PAUL: This raised the basic point. I think it
is a good chart, although it is a pretty simple thing to
get across, but there is 8. basic point: Why do you want
to talk about the sales tax?
H.M.JR: Oh, we have to.
MR. PAUL: I don't know. I certainly don't think you
have to. The question is whether you should.
H.M.JR: They are going to bring it up.
MR. BELL: Senator George said if the Treasury wanted
any more taxes they would have to figure the sales tax.
MR. PAUL: A lot of people have said that.
H.M.JR: I had Robertson in here yesterday. He said,
"The one thing, Mr. Morgenthau, you have got to be pre-
pared to answer is the question on sales taxes. You have
just got to be prepared."
Regraded Unclassified
223
- 4 -
MR. PAUL: I agree that you have to be prepared. That
isn't my point at all. My point is whether you talk about
it in your statement.
H.M.JR: I think so. I don't see how you can avoid
talking about it.
MR. WHITE: What is the harm in talking about it if
you take the position that the yield will be very small
unless you include items which are completely unjustified?
MR. PAUL: Well, I don't think there is a very strong
movement for the sales tax, and you make a big issue out
of something that may be reasonably dead.
H.M.JR: I differ; if you read these editorials in
the papers--
MR. PAUL: I am not going by them. They have had the
same editorials for two or three years.
H.M.JR: Gaston has seen the success of these important
columnists, and they all bring up the sales tax, every one.
MR. PAUL: Sure they do, but--
H.M.JR: Anyway, I don't think it has been answered;
I don't think we have given a good answer. I will put it
this way, that the answer hasn't had a good play in the new
papers. I feel that I have got to be prepared to answer
it, and I would like to throw this into their teeth.
MR. BELL: I think the impression has gone out that a
ten percent sales tax will finance this war, and you will
get all kinds of money. I think that is unfortunate.
MR. PAUL: If you are going to talk about the sales
tax, then let's talk about it all along the line, not just
the question of the revenue from it. There are a lot of
other very important arguments against it.
Regraded Unclassified
224
- 5 -
H.M.JR: I would like to have them because what's
his name - Robertson - was pushing me as to the advantages
of the sales tax against other methods of revenue; I ran
out of arguments. The thing that I want somebody to answer
for me is, when you exempt all these other things, what
is left? Why is the sales tax any worse than excise taxes?
MR. BLOUGH: That throws it over into the Administra-
tive field. It is worse because you set up a brand new
set of machinery with millions of new customers that you
have to deal with to get a little more money, when the
present excise tax is, well, organized - already adminis-
tered - and with & relatively small number of persons or
taxpayers, could yield about the same amount of money.
H.M.JR: What I would like to do Saturday morning is
to have a seminar on the sales tax. Somebody in the shop
could have thought of being the devil's advocate for it, and
then see the answers that develop. I haven't read about
this very extensively. I would like to spend a couple of
hours on it Saturday morning.
MR. PAUL: That is fine. If you are going to talk
about it, we have got to talk about it on all fronts,
the inflationary front - the fact that it is definitely
inflationary.
MR. WHITE: I think that is full of dynamite.
MR. PAUL: Because he didn't know what he was talking
about. You don't get in a mess if you know your arguments.
H.M.JR: I don't want to spend 8 lot of time on this
thing, but I don't see why B. sales tax on these articles
is any more inflationary than if you--
MR. PAUL: Decause the sales tax hits the things that
are in the cost of living index; whereas the excises are
carefully selected from articles that aren't.
H.M.JR: None of the excises?
Regraded Unclassified
225
- 6 -
MR. PAUL: Practically none of them, to any extent.
H.M.JR: The fellow at & thousand dollars 8. year
doesn't know what an index is. All he knows is that he
is out of pocket. I want somebody to explain to me why
the increase which is all passed on to consumers in excise
taxes is less inflationary than 8 sales tax?
MR. BLOUGH: I would say that aside from, say, house-
hold furniture, which is very widely purchased as 8. family
necessity - there may be one or two other things. - the
chances are that "All other" would not be particularly more
inflationary than the excise; I think it would be somewhat
more. But it is the food, clothing, medicine, those things,
that enter into the price index and enter into Mr. Common-
man's every-day cost of living that make the trouble.
MR. PAUL: And upon which all our wage stabilization
is based - fifteen percent formula.
MR. HAAS: Henderson claimed it would break the ceilings
if you added on; you would have to revise the ceiling.
MR. PAUL: That is because of increased wages.
H.M.JR: I an going to be from Missouri on this thing.
I would like to spend Saturday morning on the thing. I
am repeating myself; why a ten percent tax on "All others"
is inflationary, and an increase of fifty or twenty-five
percent on railroad travel and telephone calls - all the
things which go into our pocket expenses - is not inflation-
ary?
MR. BLOUGH: I don't think you will get an answer
there. But the whole point on the "All others" is that to
get a billion four hundred million dollars, you have really
tremendous addition to your administrative job, and query,
is it worth it?
H.M.JR: What we have got to decide - it will take 8.
spent a couple of hours on it - we have got to decide what
couple of hours for me to get it, because I have never
we are going to do.
Regraded Unclassified
226
- 7 -
We are going to say, "All right, here is the bill,"
and argue against it because of the increase of costs to
the Government and to the taxpayer, or because it is in-
flationary, but I don't know that the two things--
MR. BLOUGH: For the "all other," the inflationary is
probably a minimum argument; for food and clothing, I
think it is a very important argument.
H.M.JR: I can see that. I read your (Smith's) talk.
The approach is this, and we will argue about it: "Now,
look, gentlemen, everybody is talking about the ten percent
tax - sales tax. I am confident you don't want to put it
on food or on medicine; I am sure you don't want to put it
on clothing. When it comes to collecting on excises, we can
do it so much cheaper that way. I am sure you people are
as interested as I am in economy. We don't want to have
a duplication there. So it gets down to a billion four.
Now, in the case of a billion four, what is it going to cost
us to set up entirely new machinery and a new organization?
Isn't it much better, rather than to start something entirely
new, to take the Treasury's recommendation on increase in
excises?"
Let's do it on that basis. Who would differ with me?
MR. HAAS: I would add annoyance to the taxpayer,
along with increased cost to the Treasury.
H.M.JR: Think about it. Let's have the sales tax
study Saturday morning. I would like to get soaked up
with it. After Robertson went after me, I went flat.
MR. BLOUGH: Is this the Congressman?
H.M.JR: P.M. He is certainly a friend.
I haven't had time to expose myself to all these
columnists, but Gaston is doing it. He has seen one or two
a day. When he got through with walter Lipomann, Lippmann
said ne was against the sales tax. ne has seen Ernest
Lindley; he is going to see may Clapper and about half 8.
dozen of the more important.
Regraded Unclassified
227
- 8 -
MR. BLOUGH: I want to revise what I said about the
inflationary aspects of "all other." There is in the
"all other" an important part of business supplies and
equipment, and things like that, which are impossible
to exempt, because the items are things that people buy
personally and also for business purposes. That will add
to the cost of doing business. And that will have a
directly inflationary influence. The other items in "all
other"
Mr. PAUL: Also be inflationary on the "all other" by
reason of stimulating wage demands.
MR. WHITE: That is the important thing. Labor will
regard a sales tax on this "all other" as a sales tax.
They will say, "We are paying a ten percent tax on most of
the things we buy." And you can't counter by saying,
"Well, you are leaving some things out. You are not pay-
most of the things we are buying. It is increasing the cost
ing it on food. They will say, "We are paying it on
of living." They won't pay any attention to the figures.
Whereas, if you have excise taxes you could take the
same amount of money away from them out of excise taxes,
though you are not, but even if you did, you could say,
"This is not a sales tax; it is a tax on fur coats and other
things you don't need." And it doesn't give them the most
powerful weapon for increased demand for wages.
MR. BELL: How about income taxes of the same. Would
they argue the same way?
MR. WHITE: No.
MR. PAUL: You can't argue the same way because there
are wage formulae increases.
MR. BELL: Yes, but they have the same amount of money
when they get through.
much money to buy food; she goes out and she has her fifteen
MR. HAAS: But Lubin says that the wife is given so
dollars, and it doesn't stretch as far.
Regraded Unclassified
228
- 9 -
MR. BELL: I don't see why the taxes have to be in the
cost of living index. Why shouldn't the price of the
article be taxed?
MR. PAUL: That would be all right if we were starting
all over again with all our gearing of wage stabilization
to tax.
MR. BELL: I think it is a poor argument before a
Congressional committee to say you can't have a sales tax
because sales taxes are included in your cost of living
index, and your cost of living increases.
MR. WHITE: It is not that it is included in the cost
of living index; the important thing is that in the mind of
labor he is paying more for those goods and he is going to
say that because he is paying more, he needs higher income.
You are running against tradition, against the customary
way of treating this matter, and you can get the same amount
of money away from income tax and they would be much less
potent arguments than there would be in the sales tax.
That is an additional reason.
H.M.JR: I will work on this thing Saturday morning.
Now, look, the one thing that I would like very much, and
I hope to have it by Saturday, whatever the group is that
we are going to exempt from any taxes - whether it is the
thousand dollars, or whatever the group is - I don't know
where it starts, I have asked, now, a couple of times--
MR. BLOUGH: It is in the works.
H.M.JR:
what these people now pay in Federal taxes
Now, I am going down tonight to spend some time with Henry.
I will be back late Friday night. Could you, Paul, and
your people, spend quite a lot of time with Smith and Gaston
trying to go over this?
MR. PAUL: We have got to spend a lot of time with them
because, as far as I am concerned, I disagree with some of
these approaches. I am not sure Fred is wholly sold on
some of them himself.
Regraded Unclassified
229
- 10 -
H.M.JR: We will know a little bit more later. But
I thought if >mith, Gaston, Blough, anybody in the 10 om -
let me put it the other way around; I am going to ask Smith
to see as many of you as possible and get ideas so that
when he sees me Saturday morning he will have a revised
draft; he can say, after seeing you, "I still think you
should say this, but the following people don't want you
to say it." You can do it that way. But, Fred, if you
don't mind - I mean, we are closing the office Thursday
at one o'clock, so we don't expect you to work Thursday
afternoon. Has that gotten around? White, has it reached
your office?
MR. WHITE: No.
H.M.JR: How does it come?
MR. BELL: By telephone.
MR. HAAS: I think maybe they got some administrative
assistants of yours, Harry.
H.M.JR: Has it gotten to you that we are closing
Thursday at one o'clock?
MR. GASTON: Yes, we are very alert on such matters.
(Laughter)
H.M.JR: Alert and allergic. (Laughter)
MR. BELL: Always watching for them.
H.M.JR: Herbert, I told Smith to see as many of you
as possible between now and Saturday. I want a draft of
my tax talk, and if you would give as much time to Smith
as you can--
MR. GASTON: Yes.
H.M.JR: Now, whomdid you see this morning?
Mr. GASTON: Ray Clapper.
Regraded Unclassified
230
- 11 -
H.M.JR: Would you give us the benefit?
MR. GASTON: I had a very nice talk with Ray Clapper.
It is necessary to explain the background of what we are
thinking and doing. His conclusion was that - just as
Walter Lippmann's - that we got a bad press principally
because we didn't explain carefully enough the omission
of the nine million people. It was news to him that not-
withstanding dropping the nine million, we were still
adding about three billion six hundred million in taxes
to the group under five thousand dollars, and that, to
him, was & very striking fact.
He thinks that by all means we should stand by our
guns for drastic additional taxation; that there is begin-
ning to be quite 8 swing of sentiment in our direction,
particularly in the newspapers; and that it would be & good
idea to get such authoritative help as we can. He mentioned
Marriner Eccles. He also mentioned Dan Bell as being 8
good man to talk about the financial picture; that the
fellows up there had 8 lot of respect for his judgment and
his knowledge. Fred Vinson he was a little in doubt about
because I think Fred is in a little bit wrong up there now,
and he doesn't know how helpful Fred would be to us.
H.M.JR: Were you here when I talked to Vinson yesterday?
MR. GASTON: Yes.
H.M.JR: Have you (Paul) heard about that conversation?
MR. PAUL: No.
H.M.JR: I invited Fred Vinson to go up to lunch.
MR. PAUL: I didn't hear that.
H.M.JR: I invited Vinson to go along, but he was too
busy. Then he said, "If I get up there I am afraid they
are going to talk to me about coal. I don't think I want
to go up on the Hill." If Vinson and Byrnes had only
Regraded Unclassified
231
- 12 -
left us alone! Now neither of them will have anything
to do with it. But we will keep Vinson informed just
the same.
MR. GASTON: ne thought we should have some explanation
of the theoretical nature of these so-called savings, such
as this War Department thirteen tillion which he says has
caused B. great deal of confusion.
MK PAUL: Have you seen Lippmann yet?
M. GASTON : Yes.
MR. PAUL: I was supposed to see him. He broke a
couple of dates.
MR. GASTON: He thinks the argument is very good, that
savings don't relieve us of the necessity or moral obliga-
tion to have your taxes.
H.M.JR: I think it is very helpful, Herbert. I hope
I am not taking up too much of your time.
MR. GASTON: No, I enjoy them.
H.M.JR: Are you going to see the others?
MR. GASTON: I am having lunch with Walker Stone today.
H.M.JR: Fine. And I have just thrown a couple at
you. Could you take Dave Lawrence?
MR. GASTON: Sure.
H.M.JR: You have seen Lippmann, Ernest Lindley,
Walker Stone, and you will see Dave Lawrence and--
MR. GASTON: I have seen three; Lippmann, Lindley, and
Clapper. I will see Stone at lunch.
H.M.JR: Who else is there around here? Do you want
to see Pearson?
Regraded Unclassified
232
- 13 -
MR. PAUL: I don't think you have to see Pearson on
that.
H.M.JR: Wouldn't do any harm. I have seen Robertson.
You called him up, too, didn't you?
MR. BLOUGH: I have not done that yet, Mr. Secretary.
I have tried to reach him but I couldn't.
MR. GASTON: Of course, they are in our corner, anyway,
but I might see Pete Brandt or Charlie Ross.
H.M.JR: When those fellows get together they do talk
things over.
MR. WHITE: How about D. Thompson.
H.M.JR: I don't think she is in Washington.
MR. PAUL: It might be worth while to go to New York.
H.M.JR: I am afraid we won't have time.
MR. PAUL: There are a lot of people up there to see.
MR. BELL: These people that you have seen, Herbert,
don't get hardly outside of the metropolitan papers, do
they?
H.M.JR: Oh, yes. Clapper is on the air every night.
MR. GASTON: Every one is syndicated.
H.M.JR: Lindley is on the air. The little papers -
you would be surprised - carry these people. And they are
all on the air.
MR. BELL: I was thinking about the little papers out
in my section of the world. I never see Ciapper, Lindley,
or Lippmann quoted, but I see Ray Tucker and this fellow
T.J. Meehan, from New York, and one or two others not so
prominent. But I never see these fellows, Clapper and
Lindley. Maybe the little papers carry them, I don't know.
Regraded Unclassified
233
- 14 -
H.M.JR: Well--
Mr. GASTON: I will get ahold of Ray Tucker. Of
course, his stuff is more on the gossip side.
MR. PAUL: Fulton Lewis would be the one.
H.M.JR: Anyway, I think, Fred, you are off to & good
start. I think we will know a little bit more by noon. I
am saving all of Saturday and Sunday to work, and I am
hoping we don't have to go up Monday.
MR. SURREY: They are scheduling it for Monday.
H.M.JR: I don't think the bill will get through in
the House.
MR. SURRY: Only have two days for debate and vote.
H.M.JR: They are scheduling me and Paul?
MR. SURREY: If you are to be the first witness,
which I presume you want to be, they would schedule it
for the 29th.
MR. PAUL: If you wanted it Tuesday, I think you could
get it Tuesday, but you ought to speak about it now.
MR. BLOUGH: They are setting a time-table to try
to get it to the President's desk on the 18th.
MR. SURREY: That raises a question that you might
want to explore. Assuming any good is to come from all Senate this,
wants to raise the money. Senator George had the idea is
it would delay the consideration in the Senate if the of
pressing through this bill next week. Assuming there the
to be increase in taxes, it is going to delay don't con-
sideration any of the Senate, and I am not so sure - I
desk by the end of the year. They may throw that back
see quite, now, why the bill has to be on the President's at
you today.
Regraded Unclassified
234
- 15 -
H.M.JR: I am just going to say this, that if they want
me Monday, I want to be there Monday. That is due to the
War Bonds - getting out the thing on time - and if I delay
it any it just means that Smith and I will work that much
slower. If we know that we have to get it out Sunday
night, we will get it out Sunday night.
MR. SMITH: I guess it is 80.
MR. SURREY: They have scheduled you for Monday
morning.
H.M.JR: We will be there.
MR. PAUL: I have been working on a simplification
statement, the corporate taxes and the various technical--
H.M.JR: But all of you, please, who are here, keep
yourselves free for Saturday and Sunday for me, will you?
So I can have all of you Saturday and Sunday. Monday night
we can all get drunk. I will supply the liquor. (Laughter)
Regraded Unclassified
235
TEN PERCENT FEDERAL RETAIL SALES TAX
(Dollar figures are in billions)
Cumulative
Totals
$6.3
Food.
$2.4
3.9
Medicine
0.2
3.7
Clothing
I.I
2.6
Taxed under
excises
1.2
1.4
All other
1.4
Total yield
$6.3
* Excludes a small amount of food and clothing now subject to excises.
Office of the Secretary of the Treasury
B-472
Division of Tax Research
Regraded Unclassified
236
November 24, 1943
11:55 a.m.
Dan
Bell:
Hello.
HMJr:
Hello.
B:
Hello.
HMJr:
Dan.
B:
Yes, sir.
HMJr:
I'm sending you in a letter from Mr. Stimson.
I asked the President of the United States whether
he would write somebody in which he would say that
we could send civilians overseas to stimulate War
Bonds. You know?
B:
Uh huh.
HMJr:
And I asked the President twice. I never heard
from him but evidently he did write to Stimson.
Now, Stimson comes back and gives me the reasons
why I shouldn't do it.
B:
Uh huh.
HMJr:
Rather he -- I also sent you a letter -- he wanted
to have cash sales of War Bonds.
B:
Yep.
HMJr:
Now, sometime next week, when we get the tax thing
out of the way, let's you and I and Ted Gamble and
Fred Smith who followed the thing overseas for us,
get together on it. You see?
B:
All right.
HMJr:
But schedule a meeting after my appearance on the
Hill.
B:
All right. He -- in the other letter, you know --
he wanted to create agents over there.
HMJr:
Well
B:
In the Army, to stimulate
Regraded Unclassified
237
- 2 -
HMJr:
Well, couldn't we -- -- couldn't we put the two
letters together and consider them?
B:
Yeah.
HMJr:
There's no great sweat is there?
B:
Nope.
HMJr:
Thank you.
B:
Not at all. Okay.
Regraded Unclassified
238
On Wednesday, November 24, 1943, the Secretary had lunch
at the office of Ed Halsey, Secretary of the Senate. The
Democratic members of the Senate Banking Committee were in-
vited, and all who were in town and available came. The
Secretary was accompanied by D. W. Bell, Randolph Paul, and
Fred Smith.
The purpose of the meeting was to discuss whether in the
estimation of the Committee, the Secretary should renew his
demands for 10.5 billion dollars.
The tenor of the meeting was very pleasant and friendly.
The Senators seemed to appreciate the fact that the Secretary
had called them together to discuss his presentation before
making it.
The first thing that the Secretary wanted to clear up
was the misunderstanding about the 13 billion dollars, sup-
posedly to be saved by the Army, and to which some reports
had added an extra 5 billion dollars for the Navy. This was
explained in full by Dan Bell, and the Senators expressed a
great deal of surprise. Senator Clark said: "They not only
took the people in on that one, they took us too. I was con-
vinced that we had that 13 billion dollars in our kicks right
now."
There was some discussion about the value of the inflation
appeal. It seemed to be generally agreed that people did not
believe in inflation, and it seemed rather evident that the
Regraded Unclassified
239
- 2 -
Senators viewed the whole inflation prospect with 8. certain
amount of doubt and skepticism. Barkley wanted to know how
much of the bill was for taxes, and how much for inflation,
suggesting that we would have much less trouble raising money
for taxation than for inflation control.
When the subject got around to 10.5 billion dollars, there
was no disagreement about whether or not the Treasury should
again ask for this amount. Everyone agreed that the Treasury
should stand on its recommendation, and Chairman George
suggested that the Treasury come up to the Senate with as
strong a case as it could possibly develop.
The Senators were pretty generally agreed that we would
not get the 10.5 billion, nor even 8. large part of it. Chairman
George explained that there were many mechanical difficulties
in the way of the Senate's greatly changing the House Bill.
He pointed out that the votes in the House had been made
public, and that there was no likelihood of Congressmen
changing their minds under those circumstances. He said that
a great change in the House Bill by the Senate would put these
two legislative bodies into conflict, and as 8. result no tax
bill could be passed until next Spring. He also said that in
the interim, we would be losing the excise taxes.
It was then suggested that the excise taxes be levied in
Regraded Unclassified
240
- 3 -
a separate bill, and George said he would consider discussing
it with the House, but he didn't think there was much use.
Senator Clark then repeated these sentiments, saying that he
had tried to do the same thing before and that "Congress wants
to see the whole bill, not pieces of it."
There was some discussion about whether or not the sales
tax should be mentioned in the Secretary's message. Byrd and
George said that it ought to be mentioned, and a stand should
be taken one way or another, or Vandenburg might interrupt
the Secretary before he had finished reading.
George then said that he didn't believe a sales tax could
be enacted anyway. He said that if the Administration would
actively help promote it, they might get it through the
Committee, and possibly through the Senate, although it was
doubtful. Then he said: "But even with the Administration's
help, I am sure we couldn't get it through the House. They
have voted it down and it is done for there."
Before the meeting broke up, the Secretary was asked how
he felt about the war after having made a trip to the Front,
and he explained why he thought that it would be a long, hard
war if we had to win it by fighting, rather than by a collapse
of the German Nation.
Regraded Unclassified
241
November 24, 1943
Mr. Gaston
The Secretary
If you think well of it, I wish you would send for Walker
Stone who writes tax editorials for Scripps-Howard, and have a
talk with him between now and Saturday noon -- only if you think
well of it. I know that Johnny Hanes used to consult him a lot,
and I think he might be flattered. I don't mean Johnny Hanes,
but Walker Stone. - 0 Kay-
Regraded Unclassified
242
November 24, 1943
3:45 p.m.
Herbert
Gaston:
Yes.
HMJr:
What luck did you have at lunch today?
G:
Oh, I had a good time.
HMJr:
Yes?
G:
Uh -- uh -- Walker Stone -- uh -- the substance
of it 18 -- the main thing is he's in favor of --
of additional heavy taxation. He thinks that you
ought to -- uh -- give the arguments for additional
taxation and -- without specifying and let the
Senate write its own ticket.
HMJr:
Well, that's the plan.
G:
He thinks that, as he said in an editorial about
the time you went up before Ways and Means Committee
or just after that, that -- that we're two years
late, that we ought to have had a very drastic
plan right after Pearl Harbor when the climate was
more favorable for it and should have stuck to it.
HMJr:
Yeah.
G:
And I endeavored to convince him that we did the
best we could at that time.
HMJr:
Yeah.
G:
He's normally against the sales tax but thinks the
sales tax is the right thing in the present situation
and I had some argument with him on that point and he
finally said, "Well, selective excise taxes, if there
were enough of them and they were heavy enough, would
be the right thing." And which I said was good sense.
And he said that such a meal as we were eating then,
we ought to have to pay a heavy tax on it. And I
agreed with that. He'd like to tax the night clubs
heavily.
HMJr:
Well, I think all this you're doing is most useful.
G:
Uh
Regraded Unclassified
243
- 2 -
HMJr:
I want Fred Smith to tell you about my luncheon.
G:
Yes.
HMJr:
I came away with the best feeling I've ever had
when I've been on the Hill.
G:
Oh, that's just swell. That's grand.
HMJr:
The best -- it's been the best meeting I've had
in ten years.
G:
Why, that -- that's grand.
HMJr:
I never came back off the Hill with such a nice
feeling.
G:
Well, that's fine. I -- I was a little nervous
about it.
HMJr:
Well, everyone but one of the Democrats -- there
were eleven Democratic members - there was only
one missing.
G:
Yeah. Uh huh.
HMJr:
So, it was a -- really very good.
G:
That's grand.
HMJr:
Have a nice Thanksgiving.
G:
Well, thanks very much. And I have a date to
see Dave Lawrence on Friday. He's also going to
take me to lunch. He's going to take me to the
Metropolitan Club.
HMJr:
Oh, wonderful.
G:
Quite.
HMJr:
Didn't you have to pay for the lunch today?
G:
(Laughs) Scripps-Howard insisted on paying for it.
HMJr:
Wonderful.
G:
Yeah.
Regraded Unclassified
244
- 3 -
HMJr:
Well, that's all right.
G:
Walker said it was going to -- that Roy Howard was
going to pay for it and, "Well," I said, "as long as it's
Roy Howard and not Walker Stone, that's all right with
me."
HMJr:
(Laughs) All right. Okay.
G:
All right.
Regraded Unclassified
245
AA
November 24, 1943.
MEMORANDUM
vr
TO: Secretary Morgenthau
FROM: Mr. Gaston
I talked to Ray Clapper this morning, as I previously
reported, and had lunch with Walker Stone.
Clapper is much more in sympathy with our program
than Stone and not critical. He is strongly in favor of
our sticking to our guns on the broad ground of much more
drastic taxation and would stress the need for additional
taxation both from & budgetary standpoint.and that of in-
flation with a minimum of emphasis before the Senate on
details of the program. He thought we got a bad press on
the original proposals to the Ways and Means Committee not
only on account of the bad state of our relations with the
Committee but also on account of the manner in which the
exemption of nine million taxpayers was played. It was a
surprise to him to be told that our proposals envisaged an
increase of $3,600,000,000 of taxes in the brackets below
$5,000. He thought we ought to make every effort to pre-
sent 8. united front before the Committee, that Dan Bell's
testimony about the budgetary position, principally to
correct misunderstandings with regard to Army and Navy
"surrendering" of appropriations, would be highly valuable
since all the committees in Congress had great respect for
Dan. He also thought that Marriner Eccles could be helpful
if we could keep him from going off on 8. tangent, but he
had some doubts of the usefulness of Fred Vinson in view of
Fred's other troubles with the Congress.
Walker Stone, with whom I went to lunch, talked freely
about a great many aspects of Federal finance. He thought,
as he wrote in an editorial published on October 5, that the
Treasury was "twenty-two months late" and that we should have
presented right after Pearl Harbor an extremely drastic pro-
gram of taxation on which we could have stood for the re-
mainder of the war. He is in favor of heavier taxation at
Regraded Unclassified
246
- 2 -
the present time nevertheless and would like to see you
argue generally the need for higher taxes and leave it to
the Senate Committee to write their own ticket. He is
against sales taxes as a general proposition and reminded
me that he had written editorials in the past opposing
sales taxes, but he thinks they are better adapted now to
checking excess spending than income taxes. I argued
with him some on this point and he eventually agreed that
a stiff and broad program of luxury excise taxes of 8.
selected character might be better than a sales tax. As
an instance he suggested heavy taxes on such meals as we
were eating at the moment (at the Carlton, for which he
said Scripps Howard would pay). He also said the night
club tax ought to be heavy. He thinks our manner of
figuring excess profits tax on corporations before instead
of after normal tax is unfair, or at least creates a wrong
impression as to the source of the revenue. He said if
we really wanted to maintain the system of private enter-
prise we ought to allow business to accumulate reserves.
I told him that reminded me of Johnnie Hanes' thesis, but
since invested capital was in the ratio of $635 for every
man employed (at the time Johnnie was here) all we needed
to do to promote employment was to let business retain an
additional $635 for each unemployed man and then the whole
population would be put to work. Walker agreed that that
was an absurdity and that demand for goods had to come
before investment. He thought the Treasury had been fickle
in its tax recommendations and had thus lost the confidence
of Congress. I told him I thought our record was pretty
good and that there were much different causes for the
present disagreement, including politics, to which he person-
ally agreed. We discussed other matters, including work
relief and pump priming, and he invited me facetiously to
call him up any time I wanted advice.
I have an appointment with Dave Lawrence for Friday.
Regraded Unclassified
247
ADD TAXES
HE HOUSE TENTATIVELY APPROVED A $2,140,000,000 REVENUE BILL WHICH
WOULD BOOST EXCISE TAXES ON TWO-SCORE OF ITEMS INCLUDING LIQUOR,
JEWELRY AND TRANSPORTATION TICKETS. A FINAL VOTE WAS EXPECTED SHORLY,
WITH PASSAGE ASSURED.
11/24--SB519P
ADD TAXES
THE HOUSE APPROVED THE MEASURE WHILE SITTING IN THE TECHNICAL
CAPACITY OF "COMMITTEE OF THE WHOLE HOUSE ON THE STATE OF THE UNION."
THAT ACTION MUST BE RATIFIED, HOWEVER, WHEN THE CHAMBER REVERTS TO IS
STATUS OF THE HOUSE OF REPRESENTATIVES--A STEP EXPECTED TO FOLLOW
ALMOST IMMEDIATELY.,
THE ACTION CAME-AFTER LESS THAN A DAY OF LISTLESS DEBATE DURING WHICH
DEMOCRATIC AND REPUBLICAN LEADERS OF THE TAX-MAKING NOUSE WAYS AND MEANS
COMMITTEE DEFENDED THEIR REJECTION OF THE $10,500,000,000 REVENUE
PROGRAMS PROPOSED BY THE ADMINISTRATION ON GROUNDS IT WOULD HAVE BEEN
RUINOUS TO MIDDLE-CLASS, WHITE-COLLAR WORKERS, MOST OF THAT PROGRAM
WOULD HAVE BEEN EFFECTUATED THROUGH SHARP INDIVIDUAL INCOME TAX
INCREASES.
THE BILL RECOMMENDED BY THE COMMITTEE AND PASSED BY THE HOUSE WOULD
RAISE A RELATIVELY-INSIGNIFICANT $154,000,000 ADDITIONAL REVENUE FROM
INDIVIDUAL INCOME LEVIES BY INTEGRATING THE PRESENT VICTORY TAX WITH
NORMAL RATES AND SETTING THOSE RATES AT SUCH LEVELS THAT MOST TAXPAYERS
VOLD OWE SLIGHTLY MORE THAN UNDER PRESENT LAW.
THE BILL ALSO WOULD RAISE AN ADDITIONAL $616,000,000 BY INCREASING
CORPORATE EXCESS PROFITS TAX FROM 90 TO 95 PER CENT AND BY MAKING OTHER
MINOR CHANGES IN THE CORPORATE TAX STRUCTURE.
11/24--SB523P
ADD TAXES
THE BULK OF NEW REVENUE, HOWEVER, WOULD COME FROM BOOSTS IN SOME
TWO-SCORE EXCISE TAXES AND FROM VARIOUS INCREASES IN POSTAGE RATES.
THE WHISKY TAX WOULD 60 FROM $6 PER 100-PROOF GALLON TO $9; THE EXCISE
ON JEWELRY FROM 10 TO 20 PER CENT, AND THE CARBARET TAX FROM-PAVE TO
30 PER CENT OF THE CHARGES.
EXCISES ON BEER, WINE, ELECTRIC LIGHT BULBS, LUGGAGE, FURS, TOILET
PREPARATIONS, TELEPHONE AND TELEGRAPH SERVICES, TRANSPORTATION,
ADMISSIONS, CLUB DUES, BOWLING ALLEYS AND BILLIARD PARLORS WOULD BE
INCREASED, WHILE MERETOFORE-EXEMPT HANDBAGS, WALLETS AND PARI-MUTUEL
VAGERS WOULD BE SUBJECTED TO NEW EXCISE LEVIES.
THE RATE FOR FIRST CLASS LOCAL MAIL WOULD BE JUMPED FROM TWO TO
THREE CENTS AN OUNCE, WHILE FEES FOR AIR MAIL, THIRD CLASS MAIL, MONEY
ORDERS, REGISTERED MAIL, INSURED MAIL AND COD MAIL WOULD BE INCREASED.
11/24--5B525P
ADD TAXES
THE NOUSE PASSED AND SENT TO THE SENATE A $2,140,000,000 REVENUE
BILL WHICH WOULD BOOST EXCISE TAXES ON SOME TWO-SCORE ITEMS
IN AUDING LIQUOR, JEWELRY AND TRANSPORTATION TICKETS. THE VOTE WAS
200 TO 27.
11/24--SB552P
Regraded Unclassified
248
Digest of
Congressional Record
for
November 24, 1943
The Tax Bill. The tax bill, as reported by the House
Ways and Means Committee, was adopted without floor amend-
ments by a teller vote of 200 to 27.
During the debate, Representative Fish charged that
"The original proposal emanating from the
Secretary of the Treasury, Henry Morgenthau, Jr.,
« if it had been carried out instead of be-
ing repudiated # # * would have put us on a level
with the Communists and might have even out-
communized the Communists. 71
Representative Fish, at another point, asserted that
"The public was never fully informed of the
abomination of desolation recommended by Secre-
tary Morgenthau. Previously, the attempt to
limit salaries to $25,000 was squelched by
Congress and by the American press as an attempt
to interfere with private initiative and free
enterprise. However, the original tax proposal
of Secretary Morgenthau at the hearings on the
present bill was incomparably more drastic and
revolutionary and actually limited net salaries
and incomes to $10,000."
And at another point -
"The recommendations of the Secretary of the
Treasury would also have tended to liquidate the
middle class, the farmers, the home owners, and
small business and professional men and women,
and also would have added greatly to the burden
of the wage earners which would have caused
severe hardship in every American home."
Regraded Unclassified
249
- 2 -
Answering Fish, Representative McCormack made it clear
that the Secretary of the Treasury never proposed a $10,000
limitation on net salaries. He also said that "We hear
Secretary Morgenthau called a Socialist and 8 Communist for
submitting some proposal and a lot of other pet names" and
asserted that this Socialist-Communist name-calling is "an
indication of defeatism and inability to have an argument
available to discuss the merits of a proposition".
Representative Knutson asserted that the Treasury in
recent years has presented a detailed tax program to Congress
and has used "its vast propaganda machine to try to overcome
Congressional opposition"; that it is proper for the Secre-
tary of the Treasury to make recommendations to Congress
"when requested", but "it is improper for the Treasury to
work out a tax program of its own and then insist that
Congress enact it into law without regard to the views of
those who are to be taxed or the judgment of the taxpaying
public as to what is for the best interest of the country".
Dairy herd of the Secretary of the Treasury. Represen-
tative Fish, extending his remarks in the appendix and in-
cluding the John 'Donnell article in the Times-Herold of
November 23, said that "two of my distinguished constituents
who have hitherto claimed to be dirt farmers * have
lately been compelled, through OPA restrictions and regimen-
tation, to change their classifications, one as a forester
or producer of Christmas trees and the other B.S E. horticul-
turist or apple grower". He asserted further that "It is
a sad commentary and a very bad example to the dairymen of
the nation who are asked to produce more milk and butter in
the war emergency for the Secretary of the Treasury, Henry
Morgenthau, Jr., to sell out his dairy herd of 100 pedigreed
milk COWS when the country is threatened with 8. shortage of
milk".
Nothing further of interest occurred in the House, and
the Senate was not in session.
Regraded Unclassified,
Tax Bill: 10019-10073 pages.
25025
Dairy Farm: pp A.5469-5470
Congressional Record
United States
of America
PROCEEDINGS AND DEBATES OF THE 78ᵗʰ CONGRESS, FIRST SESSION
Vol. 89
WASHINGTON, WEDNESDAY, NOVEMBER 24, 1943
No. 182
Senate
The Senate WEE not in session today. Its next meeting will be held on Friday, November 26, 1943, at 12 o'clock meridian,
House of Representatives
WEDNESDAY, NOVEMBER 24, 1943
The House met at 11 o'clock a. m.
Resolved, That the Secretary communicate
Rev. Bernard Braskamp, D. D., pastor
these resolutions of the House of Repre-
The resolution asks no appropriation of
of the Gunton Temple Memorial Presby-
sentatives and transmit a copy thereof to
money but expresses the gratitude and
the family of the deceased.
respect of the Nation through its elected
terian Church, Washington, D. C., offered
Resolved, That as & further mark of respect
representatives and orders that an en-
the following prayer:
to the memory of the deceased the Benate
grossed copy of the Joint resolution be
Most merciful and gracious God, by
do now take & reoms until 13 e'clock noon on
presented to Orville Wright, the surviv-
whose Spirit we have guidance and un-
Priday next.
Ing brother.
derstanding, help us during this day to
The message also announced that pur-
Mr. MICHENER. In other words, the
give ourselves unreservedly to Thy lead-
ing. holding our own wishes in suspense
suant to the provisions of the above reso-
resolution is simply one of gratitude and
lution the Vice President had appointed
respect and orders only that an engrossed
until Thou dost declare Thy will,
We pray that Thou wilt create within
Mr. HAWKES, Mr. VANDENBERG, Mr. WHITE,
copy of the joint resolution be traus-
Mr. AUSTON, Mr. MALONEY, Mr. TRUMAN,
mitted to the person designated.
the hearts of these Thy servants those
desires which Thou dost delight to sat-
Mr. GREEN, Mr. MILLDIN, Mr. TUNNELL,
Mr. JEFFREY. Exactly.
isfy. Grânt that their minds may be
Mr. EASTLAND, Mr. REVERCOME, and Mr.
Mr. MICHENER. Mr. Speaker, I
veritable ranctuaries of those revelations
ROBERTSON members of said committee on
withdraw my reservation of objection.
the part of the Senate.
The SPEAKER. Is there objection to
and visions of the wisdom of God which
the present consideration of the resolu-
shall enable them to find a happy solu-
COMMEMORATING THE PORTIETH ANNI-
tion?
tion to the many difficult problems con-
VERSARY OF THE FIRST AIRPLANE
There being no objection, the Clerk
fronting our generation.
FLIGHT BY WILBUR AND ORVILLE
read the resolution, as follows:
As Thou hast opened Thy hand in
WRIGHT
Whereas un December 17. 1903, the first
blessing upon our beloved country, so
Mr. JEFFREY. Mr. Speaker, I ask
flight of . heavier-than-air machine YM
wilt Thou enlarge our souls with a sin-
unanimous consent for the present con-
made by Wilbur and Orville Wright at KILL
cere desire to bring in that blessed time
sideration of House Joint Resolution 175
Devil Hills, Kitty Hawk, N. C: and
Whereas this flight fulfilled man's dream
when every need of struggling humanity
commemorating the fortieth anniversary
to conquer the air; and
shall be supplied and righteousness and
of the first airplane flight by Wilbur and
Whereas this achievement of the Wright
peace shall flow as a mighty stream.
Orville Wright,
brothers has been of Incalculable value to
To Thy name we shall give all the
The Clerk read the title of the joint
mankind; and
prate, Amen.
resolution.
Whereas the Offigrees of the Valied States
The SPEAKER. Is there objection to
berétofare has recognized this epochal event
THE JOURNAL
by authorizing the erection of a memorial
The Journal of the proceedings of yes-
the present consideration of the resolu-
st the place of the flight; and
(erday was read and approved.
tion?
Whereas the fortieth anniversary of the
Mr. MICHENER. Mr. Speaker, re-
first flight of & heavier-than-air machine will
MESSAGE FROM THE SENATE
serving the right to object, will the gen-
be commemorated on December 17, 1043:
A message from the Senste, hv Mr.
tleman state what the resolution is and
Now, therefore, be n
Frazier, its legislative clerk, announced
whether It comes with a unanimous re-
Resolved, etc., That the Nation expresa its
that the Senate had adopted the follow-
port from the committee?
gratitude and respect for this signal and
Ing resolution (S, Res, 211):
astounding contribution to the progresa of
Mr. JEFFREY. Mr. -Speaker, this
the world on the fortieth enniversary
Resolved, That the Senate had beard with
resolution was referred to the House
thereof.
proferms accrow and deep regret the an-
hountement of the death of Hon, W. WARREN
Committee on the Library. It received
That an engrossed copy of this joint TERO-
Inte a Senator from the State of New
their unanimous approval and was re-
Juilon be transmitted to Orville Wright, the
ported out.
surviving brother.
Resclard, That a committee of 12 Senatore
The resolutions simply commemorates
The resolution was ordered to be en-
be specinted by the President of the Benate
the fortieth eniversary of the first flight
grossed and read a third time, was read
to take order for superintending the funeral
of the Wrigt $ brothers, which anniver-
the third time, and passed, and a motion
of the deceased Senator.
sary will or nur on December 17, 1943.
to reconsider was laid on the table.
10017
Regraded Unclassified
1943
CONGRESSIONAL RECORD-HOUSE
10019
Mi. SCHIFFLER. Mr. Speaker, I ask
with DO pounds of thuke selling at $4.80, while
unanimous consent to extend my own re-
16,000 pounds of yellowtails abcard the Goy
The Clerk read BE follows:
marks in the RECORD and to Include sepa-
Head accompanied about 150 pounds of Buke
Resolved, That upon the adoption of this
at $4.55. The flah normally selle for sbout 28
resolution It shall be in order to move that
nicly two editorials.
cents.
the House resolve Itself into the Committee
The SPEAKER. Is there objection to
Buyers were reported to the the Dartmouth
of the Whole House on the state of the Union
the request of the gentleman from West
Fillet Co. and L. 8. Eldridge & Goo,
for the consideration of the bill (R. R. 3687)
Virginia (Mr. SCHIPFLES]:
Certain of New Bedford's established
to provide revenue, and for other purposes,
There was no objection.
dealers reported last week that they were
and all points of order against said but are
"twaching & lesson" to dealers failing to abide
hereby walved. That after general debate,
[The malter referred to appears In the
by the allocation plan. Under the noncom-
which shall be to the bill. and shall
Appendix.]
petitive system of celling prices for yellow-
continue not to exceed 2 days, to be equally
PERMISSION TO ADDRESS THE HOUSE
tails, hidding for non-price-controlled Bab
divided and controlled by the chairgian and
DD the side appeared to be & way or de-
ranking minority member of the Committee
Mr. VURSELL, Mr. Speaker, I ask
termining who should get the catch.
on Weys and Means, the bill shall be con-
unanimous consent to address the House
Fishermen who brought in the flab on both
sidered as having been read for amendment.
occasions were reported to be bewildered by
No amendment shall be in order to said bill
for 1 minute.
the turn of eventa which made dealere attach
except amendments offered by direction of
The SPEAKER. Is there objection to
such 5 price to the hitherto neglected fluire.
the Committee on Ways and Means, and said
the request of the gentleman from Ill-
amendments shall be In order, any rule of the
nots (Mr. VURSELLI?
EXTENSION OF REMARKS
House to the contrary potwithstanding.
There was no objection.
Mr. PATMAN. Mr. Spraker, I ask
Amendmenta offered by direction of the Com-
unanimous consent to extend my own
mittee on Ways and Means may be offered
Mr. VURSELL addressed the House,
to any section of the bill et the constusion
His remarks appear in the Appendix of
remarks in the RECORD on three subjects
of the general debate, but such amendments
today's RECORD.)
and to include certain statements and
shall not be subject to amendment. At the
excerpts.
conclusion of the consideration of the bill
EXTENSION OF REMARKS
The SPEAKER. Is there objection to
for amendment, the Committee shall rise and
Mr. O'BRIEN of New. York. Mr.
the request of the gentleman from Texas
report the bill to the House with such amend-
(Mr. PATMAN19
menta as may have been adopted and the
Speaker, I ask unanimous consent to ex-
There was no objection.
previous question shall be considered - -
tend my own remarks in the RECORD and
dered on the bill and amendments thereto
to include therein a letter sent to me by
(The matter referred to appears in the
to final passage without Intervening motion,
one of my distinguished constituents
Appendix.]
except one motion to recommit.
with reference to subsidies, and I also
PERMISSION TO ADDRESS THE HOUSE
Mr. CLARK Mf. Speaker. I yield 30
usit unanimous consent to extend my own
remarks in the RECORD and to include a
Mr. PATMAN. Mr. Speaker, I ask
minutes to the gentleman from New
York [Mr. Fism] and yield myself 5 min-
speech given by the national commander
unanimous consent to proceed for 1
utes.
of the American Legion in Chicago on
minute.
Mr. Speaker, this rule would of course
November 10 before the American
The SPEAKER. Is there objection to
make In order the immediate consider-
Petroleum Institute.
the request of the gentleman from Texas
[Mr. PATMAN1?
stion of the tax measure. The Com-
The SPEAKER. la there objection to
mittee on Ways and Means was unant-
the request of the gentleman from New
There was no objection.
mous in requesting the Committee on
York (Mr. O'BRIEN]?
ANTISUBSIDY GROUP WILL LOSE
Rules to report out this particular type
There was no objection.
Mr. PATMAN. Mr. Speaker, the vote
of rule. It is of course a closed rule,
The matter referred to appears in the
yesterday on the subsidy question in-
which permits of no amendments except
Appendix.]
those approved by the Committee on
dicates that the antisubsidy propo-
nents do not have a two-thirds vote.
Ways and Means. This is the usual type
PERMISSION TO ADDRESS THE HOUSE
Mr. GIFFORD, Mr. Speaker, I ask
On my amendment to strike out section
of rule under which tax measures have
to be considered.
whenimous consent to proceed for one-
3 they lacked 10 votes of having enough
I wish to congratulate the Committee
half minute,
for a two-thirds majority, and on the
Monroney amendment they lacked 29
on Ways and Means, whether it has fully
The SPEAKER. Is there objection to
met the views of everyone in the country
the request of the gentleman from Mas-
votes of having two-thirds. Bo Instead
or net, for having returned to Washing-
sachwetts [Mr. GIFFORD]?
of the antisubsidy group being en-
ton before the recess was over and gone
There was no objection.
couraged over yesterday's vote, in view
to work on this tax measure. The mem-
of the undisputed facts they should be
FISH BRING $4.55 A POUND
bers of this committee have worked on
discouraged because the outlook for them
It for many, many weeks, long, hard
Mr. GIFFORD. Mr. Speaker, I made
is gloomier than ever, and I predict they
hours, both day and night. I feet that
a statement yesterday that fish were
will lose.
they have undertaken seriously to do
Dringing $4.55 per pound. Perhaps you
ANSWERING MR. FULTON LEWIS, JB.
that which in their Judgment is best for
disbelleve that, but I want to put in the
Although I did not hear him, I under-
the country under the present circum-
RECORD a full explanation of why that
stand that the radio spokesman for the
stances, and that we may rely with a
situation exists in the attempt to fix
Republican Party, Mr. Fulton Lewis, Jr.,
great deal of confidence on what they
prices. In order to secure the catch the
processor will pay enormous prices for
last night on his radio broadcast left
have done.
the impression that I had changed my
I know the House wants to get down
fish un which there are no ceilings. It is
a Decultar situation. Read this article.
views on the subsidy question because I
to the consideration of the measure and
voted to extend the life of the Commod-
I see no particular reason why we should
It is illuminating.
Ity Credit Corporation. If such an in-
consume much time in debating this rule.
FISH mine $4.55 A FOUND
ference were left, It was an erroneous
I shall cooperate with the gentleman on
New Bedford's fluke market an the fish
one, since I am Just as much opposed
the minority side und conclude the de-
eachange repeated itaelf Bunday, when the
to prohibiting zubsidies as ever and will
bate on the rule as speedily as possible.
non-price-exatrolled fish sold for the un-
continue my efforts to eliminate the pro-
Mr. FISH. Mr. Speaker, I yield my-
precedented prices of 84.58 and $4.50 a pound.
vision in the bill that will prohibit them.
self 10 minutes.
The hidding skyrocketed na dealera resumed
their Mud over control of the yellowtail
If the Senate does not strike out this
Mr. Speaker, as the distinguished gen-
market, Last work end similar attempts to
provision and the conference committee
tleman from North Carolina [Mr. CLARB)
where yellowtalls, In spite of the much-
does not strike it out, the President will
has 60 ably stated, this rule comes to
disputed voluntary allocation plan which
veto the bill and I will vote to sustain
the House upon the recommendation of
restricts chickes to five deslars, resulted in
his veto.
the Committee on Ways and Means,
fish. Prires of $2.36 for Ruke and $1.51 for butter-
who were unanimous in asking for this
THE TAX BILL
type of rule The Committee on Rules
Decords or the United States Flah and Wild-
Mr. CLARK Mr. Speaker, I call up
reported 11. out also by & unanimous vote
tite Service showed that 13,000 pounds of
House Resolution 360 and ask for its Im-
to the House, who, of course, in the last
yyDowistis no the Bankety Head went along
mediate consideration.
analysis, are the masters of their own
Regraded Unclassified
10020
CONGRESSIONAL RECORD-HOUSE
NOVEMBER 24
1943
CONGRESSIONAL RECORD-HOUSE
rules. Hewever, fur that particular type
Mr. FIBH to other words, pay 101
tuality all their Income by the Govern-
10021
and character of MILL this is the milom-
percent. Mr. ENUTSON. On a $1,000,000 In-
ment. As my friend Inc. Microla
- of total the burden under enting las and under Tressury sinn (no
ATT rule, in urder to sold confasion
they will be muleted ut all of It
part-inr credit alloved)-Married provide, na
order of the amount of income or salary
come the individual will par 45,730 to
that . person can receive, I do believe,
and delar.
and more, too. The recommendation us
Mr. Speaker, 16 is not ITS function as
accition to the full million dollars to
the Gerretary of the Treasury Fudia alay
files EM - Is -
Minin - (an M -
Net - after tau -
In all justice, that in time of war the
1944 and egain in 1940, and so DIL The
have tanded le aquadate the mindle dass.
-
-
is Entergives tax)
MAIL 1 H MIX)
Congress should Invy such tax rates on
A manter of the Committee on Ruise tas
i
forme of ourselves as citizens as will be
discuss the intricudes of this type of
more his Income the more be will use,
the fartiers, the homn Officers, and the
i
The man with a $5,000,000 Income will
small-business and professional Bro
Presse live
I
lane w
Prest
Treatory
time
commensurate with the needs of that
revenue fegulation. That is the daty of
DMV
missise
law
If -
Premium --
Treasury
the committee members under the very
CWE $45,750 plus the $5,000,000.
Mr. FISH Then, 44 I take it, I have
and withen. and Also world have added
plan
war. I do not think those rates should
time
-
ever be confiscatory, but I do believe in
distinguished leadership of that greatest
greatly to the burden of Live wage NO.
the higher brackete they should be suffi-
underestimated the strustion. I stated
era, which would have Carding lines
Fereial
Prival
of all In the Bouse. the gen-
ENJ
LMD
the original Margenthau proposal would
hardship in every American time,
p.m.n
as
- a
11.00 DE
ciently steep AD that in prantical effect
tlemant from North Caruêns, Chairman
6.134.00
1.00
R.IM
0.50
LOSS
IN#
there will be some Hmit - the spount
movemes and salaries to $10,000 a
The preposal to virtually limit -
IN
House Documentos. the greatest Noman
eur
13.00
-
7,406.50
of them all. But, Mr. Speaker, 1 de
year. New, according to my friend from
MII
16.34
of money a person can have exit keep or
to $10,000 and to heap additional taxes
46,748
6,807.50
propure to take anme unr tu refresh the
Minnesola, some of the taxpayers In the
5L.50
38,042.06
4,07.00
spend on himself while people are
on the already overburdened middle class
40.000
M.I.
CIMI
91,127.80
Ing and dying on the of the
higher brackets will be owing motiey.
LOSS
was an attempt by tax Ingistration to
TOTAL
15.04
17,530.00
memories of the Members of the Name
---
6,105.12
n.o4
world.
They will be called upon to pay over 100
-
1,266.00
no both sides as to the original proposal
socialize and revolutionies America and
SATIN
16.005
06,872.10
31,146.27
Mr. PISH. I giuld 1 minote ta
emanating from the decretary of the
persont of thair income and will not have
to out-communise the Comminists,
-
04,000
15.70
---
-
25,141.01
11,000.20
$10,000 left after taxes. I thought the
71.00
11.15.00
M.M.
theman from Michigan (Mr. HOFFMAN/.
I
---
10,0%.00
Treasury, Henry Morgenthau, Jr., which
The existing income taxes are
74,488.00
74,139
--
in my humble opinion, if jt had boro
man who bad a million-dollar income
96,093.00
asia
Mr. HOFFMAN. Mr. Speaker. I sule
13,435.64
oppressive and further burdeno word be
0.401
were
vas to at least retain $10,000. Evidently
4.79
unanimous consent to revise and attend
96,740
em
see
carried dal OF being required
I have made o mistake. and he will be
destructive of free enterprise and the
196,745.00
17,000.00
-
--
ARE
my remarks
250, 344.00
TORD
or the Committee on Wari ann Means
American standard of living. The way
in
T.6%
owing more than that to the Goverti-
207,744.00
-04.00
The SPEAKER la there objection to
--
-
Lew
would have por MA - a sevil with the
to stop crushing and excessive taxes a
385,244.00
THE
11,004.00
100.430
ment. But as a estaral proposition,
in
the request of the gentleman from Miche
Communicate and might have eva nus-
to economise and reduce governmental
360.504
4,000
lgan?
what 1 visted was to the effect that It
106,000.00
100-797
5,300
recomunized the Communicate So I pro-
-15,790.00
expenditures all along the line by abot-
CHE
-12.54.00
206,848
6.799
There was no objection.
pue so take time not to tale about the
was an attempt to limit all aslaries and
-45,730.00
-
tshing useless
Mr. HOPPMAN We all have the
details of the tax hill which IN tefore
income to $10,000.
You geotlemen of the House on both
eliminsting as least 300,000 Foderal -
highers respect for the from
you but to speale about the orginal por
Mr. CLARK Mr. Spesker, I yield 2
edes. because this is not a political Issue,
ployees as & beginner, and supervising
Mr. FISH. IL is in the but, If the mm-
California Mr. and for file
poral as submitted by the Berreiory of
ear expenditures, The Congram DMM
minitos or the evolleman feden Mossa-
Clarman with study the bill
opinions. I have had mana a protest too
remember the furor and the uproar when
B. good start yesterday En Hupping the
chusetta (Mr.
due Treasury
take this accusion to congratulate the
President Roosevelt and the Treasury
The SPEAKER. The time of the EPTI-
Drem folks who did not with to be taxed
virious subsidy program, which If IL over
Mt. McCORMACK. Mr. Speaker, IL
addicats members of the Committee
Department suggested limiting not in-
19 dways interesting to listen to the
Urman from Massachusetts has expired.
I would like to write a tax will that world
come but salaries to $25,000 annually.
got underway would have the tas-
Mr. CLARK. Mr. Speaker, I your 2
not bit anybody in my district or any of
Ways and Means Due refulling to tur-
That vas squelched by an ovgrabelming
payers $2,000,000.000 annually. Eve
from New York TMr. Frail
que We are always bound to near
minutes to the evolleman from Call-
the people who vote for me. Theater
the increase incurre taxes and place 00-
vote of the House. Now the Secretary
the Democratic members of the Commit-
fornia TMr. Voolina).
owners are kicking about the assure-
pressive the American
ter on Ways and Means threw the
people called à lot nt new names We
people. particularly the middle class,
her Suggiary Mergenthau called a So-
Mr. VOORHIS of California Mr.
ment tax. The C. I. O. in kicking about
of the Treasury to bis original proposal
on this Isx bill which be and nin Treas-
untic-communistio Maramine pospail
Speaker, I want the Racose so show I -
the sales tax. The people who opende
who are atready MINNEY and staggering
(II) subordinates advocated before the
to confirmate large Incomes and ligaldate
callit and a Community for submilting
the middle class out of the windre. TM
subje proposal, and a lot of other pet
coposed to the closed rule on this but.
Ementies and bustrieses are all kicking
signs under the tax load as best they
TIMES Whenever I heat & man call
1 am opposed to in for I/WO reasons: To
about the income tax I would Blke to be
Cap. Thom anund and wise Democrate
Committee on Ways and Means and
sought to limit salaries and incomes-all
brazen attempt of the New Del série-
the Ent place, I do not think at La cus-
shie to get up here on the floor and offer
who Johned with them under the
istration, drunk with power and los
(Unit names in argument the
leadership of the sentisment from North
income-to $10,000 & year. I submit this
thought always exaste in ma mind that
tomary to grant a clound rele on . légin-
amendments, amendments civering eve
tenure of office, to the the tax statem to
ery one of my consitions and exempt-
Carolina, Dos Documento an
Socialist plan is not known to the Amer-
limit all Incomes to $10,00 and to under-
a - evidenes of inability to make a fair
lative bill-and this is not only a tax
50 be highly comminded for np-
lean public. The details were never
and effective argument 00 the merits of
bill; this bill contains a provision about
the every that one of them from taxation
mine therehy the American apter of
and then I would be able to write a nãoe
produce the and
really told to the American people. 1
de To me, name-calling is
renegotiation of contracts which may or
have talked to literally hundreda of trust-
free enterprise was repudiated not any
an indicados of defestime and imability
may nnt be destrable. I have mome mo-
Intive back home and say, "I did all I
tie proposal of Secretary of the Treasure
by the Republican members, bei by M-
would but that House or Representatives
Morgenthau to vittually Timis nel ID-
nessmen, large and small, and not one
fersonian Democrata on the Consition
le base an areument available as discuss
tem about these provisions and ballave
eather till
of them had heard of this radical st-
the therita of a proposition.
they should at least be open to amend-
would not €0 along with me, so you are
The purch was never fully informed
lenspt to limit salaries and income to
on Ways and Mians, much tu the
linvent, that is not my purpose An
ment The HII should, in my opinion,
stude) it is all their twit Bus a tax
but eacnut be written that was. It, is a
of the abomination of desulation recum-
$10,000. They all knew about what they
credit,
Time lare My purpose u to Date 000
have been sonsidered under AS spen rule,
mended by Becretary Margenthau. Pro-
called the outrage to limit salaries to
Mr. Spenker, I befiexe the stole
Ma observation. President Rooseveis
The wrond reason I have for being
technical subject. This committee la a
$25,000, but when it came to limiting
against the closed rule is because should
scopartisan committee if there ever was
viously the attempt to limit salades a
House, Republicans and DEV
MIC of the outjet of the war there would
$25,000 war by and
both to $10,000, they had never heard of
a vote of gratitude to Dr if
in und millionaire made out of
like to have been able to offer, and I want
such a comeittee in the House. They
the Committee on Wast and Missi for
the people of my district to know I would
have knowledge that we have not. or I
by the American press M an attempt to
It. That is why 1 em taking the floor
- It misms a let to the fellow
today, to refresh the memories of at least
la wire, that Drans a los to the fd-
have offeret, amendments to make this
will say, they have knowledge that I have
interfere with private initiative and free
throwing this outragenes propal gli
anterprise. However, the original tax
line she is fighting atroad, whether or
tax MII raise more revenue than IS pri-
not; I will not say anything about any
the Members of the House of Represent-
the New Dest ashran.
une else. I could not write a tax bill If
proposal of Secretary Mongenthau at the
alives - both aldes as to this outrageous
DM liked thillionaires are being made
vides. I do not think there is any other
Mr. Speaker. the following (able ger
aut of No surificies end out of this var.
answer to inflation except a courageous
I tried. In all frankness I say 1 do not
hearites on the present bill was incom-
proposal eminating in the first Instance
parable more drastic and revolutionary
from the Treasury Department,
trates what the total tax burden will
After the var is over, brushing aside all
program of taxation III we could stop the
believe, with all due respect, that two-
and actually Jumited net salaries and in-
be under the original Treasury plant In
time phrases that may
creation of new mober by sale of bonds
thirds of the Members of the House could
The largest taxpayers. already
individual taxpayers:
to commercial banks. The distingulahed
write a tax bill If they had & chance. I
comes is $10,000. A taxpayer with
squeened white, would be mulcted of vir-
imporatily midesd or deceive some of
$70,000 pet would have only $8,300 re-
of total tar trunden under scieting late and - -
our people, after this var is over, I re-
chairman of the committes has ben
am willing to leave it to the committee.
maining after saves whereas another
there will be no blood million-
kind enough to as that he would grant
Just as long as we continue to spend and
post-ver credit allowed)-Married perm, no dependente
me a little time later on in the debste.
spend we must tax and tax. My remedy
takpayer with $13.000 net would have
At this point : should only like to my
would be to spend less.
$8,500 or $200 more left after palment of
Edective - on un you
Net - - as all
Mr. FISH. Mr. Speaker, will the (m-
Net 184 par is undergiven -
IM ghe " -
that It is important that the Members
Mr. FISH. Tyleid such time - he may
taxes.
9 - cas)
Deman gield for - qualion?
Nat Invoice
Information
Mr. M:CORMACK. Yes.
on the Republican side of the alale make
destre to the gentlemino Item Minnesota
Mr. ENUTSON. Mr. Speaker will the
up their minds whether they were right
1Mr.
gentleman maid?
present
I
THEIR
Mr. FISH I should PUME like to as
Mr. FISIL I shall be deligited to
Treasury
or
Treasury
If HOR
Email -
-
my distinguished colleague if be via in
yesterday or whither they are right to-
Mr. ENUTION, Mr. Speaker and
Transi Iss
plan
relation
isto
plan
from of limiting net salaries and in-
day; were they right proterday when they
Members of the House I am rather TE-
yield to my distinguished coliengue trom
Minnesota, who BODY day will be the
REG to $10,000,
told us there is su abundance of surplus
Juctant to take the flour again BE this
chairman of the Committee on Wass and
/yent
Prest
Perrol
Mr. McCORMACK Ind the gentle-
buying power in the bands of the people,
time, bensase 1 shall have to de 80 later
!
a
Means
pa
-11.0
-
LA
-LB
.00
- A
ma
the way the Secretary of the Treasury
a it did not matter whether there are
on But I want to ay to the minority
:
we
1000
proposed that?
means or machinery for keeping down
Members that the minority of the Ways
Mr. KNUTSON, I thank the gentle-
se
38
:
we
-
man We ascept the nomination with
-11.5
1.45
-1.60
in
19º
prices to consumers or are they right
and Means Committee were a. unit In
EN
EN
LTA
1,29
477
LIST
Mr. FIRM That was the general pro-
KMB
today when they tell us a grest and ter-
favoring the issuance of the rule now un-
due humility,
N.M.
use
an
130
1,30
Last
paid in the bell, as anyone can - If be
Mr. FISH B LA inevitable
KLAS)
@.@
670
11.48
studies and analyzes It.
ritile government is, to order to try to
der consideration. The older Members
me
10 M
LIM
COLE
per
NO
no
ce
11.40
STAR
finance the grestest war in history,
of the House will recall that back in 1932,
Mr. KNUTHON. I should like to call
B.M.
20
HE 00
as
17.040
LIM
THE
the attention of the sentleman to the
RAB
en
DLN
21.19
63%
343
Mr. McCORMACK. I am advised by
taking more money out of the pockets
when the present matority had just se-
no
AND
AND
THE
IL'M
and
LIM
Broters of the Committee en Ways and
of the saxpayers than can be justified?
cured control of the House, they brought
IT.NP
fact Chat an individual with an income of
10.201
LIAM
DIE
BLAE
97.20
18746
con
that the Secretary of the Treat-
For my part, I will any whereas I do not
in a tax bill. as I real without is rule
$750,000 in 1944 and wealn in 1945 will
1,00%
5.00
11.87
p.o.
LOSM
un
-
se
NM
2019
ury never preposed it.
agree to & fai limitative by Executive
and by the time the House got through
DMP the full $750,000 plus $3,250.
1.671.00
1,00.00
26 %
Regraded
10022
CONGRESSIONAL RECORD-HOUSE
NOVEMBER 24
1943
CONGRESSIONAL RECORD-HOUSE
10023
with 11. its authors cocld not IL
opinion, was revelutionary and servialle-
able to eliminate them through, the to
formation we can get.
-
Rodgers, h.
Closed rules are necessary in the con-
tie and would have placed 3 on . par
BIND
Rogin, out
Mr. DOUGHTON, Mr. Chairman, the
tures of our Government. There has
a
sideration of tax massages on the Beut,
with the remunistelle program.
In the Interest at economy, which y
good
Beits
WII under entrideration representa en-
been no indination to avoid any of the
Mr. Spenker, I we unanimeus convent
recited M one of the considerations et
no
Kennely
other effort on the part of the Committee
otherwise everyone with & pet then of
pot
facts and factors Utist were to be -
Emmil
an
would offer amendments and
to Insert these tax tables la the Rannas
the Committee on Wan and Mana to
not
en Ways and Mem to raise additional
aldered, but, 8 the matrary, MY endeav-
Elaberg
at the end of my previous remarks show-
the preparation of this Bleasure, I Tate
-
Neish an
revenue to help meet the entirmous a-
ored to meet them squarely and reali-
perhaps have them adopted and by the
time se got through the tull would be
ins that my contention is correct in rplle
to urge very early consideration el the
passit
LANDA,
Banko
proditions made Decembery la the war,
tically.
à
of the statement of the majority leader
House Resoliction 358. The 1
Martin, Mast.
Spactment
and also along with other tra title of 10-
neither fash not towi. As . general prop-
Masm
Blacher No.
The primary purpose in any talk legis-
asition I sm not in favor of these M-
1Mr. McCommical.
have had with reference to It from
-
para
Merritti
Burner, E.
ent years to make & edistantial ex-
fation in and strage should be las propare,
The SPEAKER Without objection, If
our parts of the country confirm by by-
-
Muler, Ps.
Bundrirum
tribution toward amtrolling Inflation.
as far as reasonsible, revenue -
railed special or EAS rates. but I realize
** must have one whenever à tax bill
Def that the adoption will THE to BY.
Total
la 90 ordered.
(ntal)
While considering this termistion and
to mint the financial obtagations of the
on all
Meries LA
Tayor
There var no objection.
emmental commy that will Mis Ca
before preparing the hill our committee
is before the Honse. I vant at this une
Met
Thomas
Government, and also to see that the tax
Mr. CLARK. Mr. Speaker, I glaid 5
people of this country iças of
&
Thom. Tex.
head vitaniser representative of simest
burden is spread as fairty und equitable
to express my appreciation 5 the em-
a
minutes to the gentleman from Texas
money, and will este a the emberras.
tom
TRMIS
every separat of our economic Dfe. For
ben of the Buies Committee for the very
ment of being accused of requesting
Nod - no
as La posible
Name
X days, beginning with the Becretary
time and will attended they gave
(Mr.
for the acta of bureaumate www.as
sura Va.
Burna
Walter
That revenue measures have MC-
Mr. LANHAM. Mr. Spesker, at the
Mich
Were
of the Driver, Hun. Henry Moren-
ondary and meldental cannot be
us une day lest with D " very encour-
part
VITY beginning of the printed report of
which, If we ever authorized them Tes
-
17/mary
Whelsbel, Os
than, It. we also beard the riese of the
doubted, AS the are all of the
siging to go before a body of Indistrious
Phuse
Whitles
the Committee on Ways and Mesta with
authorized in ignorance of Un smoults
-
public, of governmental departments,
economic and social Implications of
and intelligent men such smile up that
of money that were DETERARY to be ET-
are
Pluming
reference to this tax hill, the statement
Wolfrades. PL
our joint the Treasury staff. and of
power
every iss bill, and these considerations
because we know ve will
goun TWO
always end a fair deal 1 hope 10 197)
b made that in preparing this bill the
pended and of how thom amounts ver
-
Pricht
a
labor and industry. These heartngs toy-
WITH annen full attention by nur CRID-
committee has given consideration to
expended after they were appropriated
arma
Respont
Wordrum, Va.
end about 2,800 pages of printed testi-
mine However, such considerations
repréite matters nos and shartly take
- D4
R
the TODO top for passess 5 that these
the different fastara. The fifth factor
The SPEAKER The time of the
many. No two of them appearing before
should niM oversbadow the revenue
who have niano la leave the clly for over
to enumerated se the possibility for poun-
gentleman from Texas Mr. LAMINI be
The SPEAKER. Three hundred and
a unted to agree as to the amount of
apen of a tax bill
Thanksiving may to permissed to serve
any in governmental expenditures.
expired.
Members bays survered. a
revenue FE should raise or the best
If our purpose is to mret the fibancial
late this afternation. And as I - .
Inasmuch as governmental revenue
Mr. BANKIN. Mr. Speaker, I sit
means of providing 11. per as to the prob-
needa of our Overnument let us impose
Mr. McCORMACK Mr. Speaker, I
lem of inflation or the best melhod of
and Increase late for this pur-
while non, il WII to net discove of the
and povernmental excessary are property
unanimous consent to extend my ne
total 1 em straid - wis have to
closely allied subjects, I think it very
marks in the and include theres
IDSTE to dispense with further princed-
dealing with IL Neither did the RETOR
pore. ot this policy necessarily
pertinent to call attention again to the
the bill 18. 1285) on absentee bellets Not
under the call.
on how any of the other difficun prob-
helpa control inflation. The place the at-
be in sombin temarrie, and that would
tut that on February 24. 1942. in the
The metion ver served to.
tems omfrenting as should la solved.
our meh in the armed foros.
tack inflation effectively, however, in -
Im Il la up to the Howe OF to
Beventy-seventh Contriss. I introduced
The SPEARER. to there
THE REVENUE ACT CIP seia
Aimost all the witnesses said they real-
opinion, la EM astark it di-
whether or not tre will be to 10-
lauf the defficulty of our task, the beces-
ROUTEW and : asic the of
a bill, H. n. 6887, to establish en rélice
There vu no objection.
rectly and MA IM words-sitack the
Mr. CLARK Mr. Speaker, before BAS
of fiscal investigation, as an advant of
site for additional Tevenue, and pro-
wages, wid retreschment
every Member of this bode in expediting
the House of Representatives, to follow
l'The maller referred te geno in the
many Members vere on the floor 1 stated
claimed their willingness to do their full
in governmental expenditures
the and final passage ni
Appendix.)
that this rule vas reported by the Dip-
pari, as the name time aging that they
this sun MC that - my dispose of this
- appropriations that we make and to
in testing to - whether our la
mithe on Rale upon the unanimous n-
Mr. DOUGHTON. Mr. I
could not reasituably carry any addi-
- how the maney la expended and be
adoquate M - revenue-ressing missigne
matter to . reasonsble time 1ble after-
guni. di the Ways and Means Committee.
tinhal burdens, but any additional or -
yield I minute to the from
we cannot confine ourselves to shin but
area.
able to give - the necessary information
D to the rule customarily and lb the
Massachusetts LMr.
created taxes should be placed upon the
alone byt must examine also the entire
Mr. FIEH Mr. Epraker, T yield -
to eliminate vaste and duplication and
consideration of a tax bill I hope It will
shoulders of other taxpayers. Por mane
extravegation. I reintraduesd that
Mr. GIFFORD Mr. Speaker. Mila 1
tax structure and buiden no emended by
self 1 minute
be admited.
than 21g menths in public hearings and
this bill In 1915 our total Federal re-
Mr. Spenker, the majority linder as-
meason is this Congrest as H. FL. B7. on
minute to with I care to take on the lat
Mr. Suraker. 1 move the previous ques-
in executive semion, sometimes working
celipta amounted to approximately $5.-
parently WER . lille annoyed that I
JANUARY 6. 1943. In order that the mat-
bill today.
the do the resomtion.
at night, our committee engaged in an
200.000,000. Since that time we have
should term the original tax properal of
ter might be considered by the House
On page 3 of the report I reserved vo-
The SPEAKER The question to on
earnest affort to prepare the Best tax
enecied the First and Second Revenue
Secretary Morgrathau as socialistic and
alune, in view of the fact that it pertains
lightenment. I could not understand
the restiution.
bill possible. We endervored to be guid-
Acts of 1940. the Bevenue All of 1941 and
practically communistic 1 as reminded
to & proposed REPOCT of the House of
why a min receiving a buile mue ou
The question was taken: and on a
ed by factual conditions rather than by
the Revenue Art of 1942.
of the cid Latin proverb "magna est
Representatives, I have recently intro-
$327,900 6 year miary stecid est Ge
times idemended by Mr. Vocenta of
theoretical opinions or philosophles.
Under the pay-m-you-go Jegislation
veritas et EN mighty
duesd at as House Resitulion 358.
job of a Congression, Loot up that
Califirnia) there wire-arm 200, noes v.
While - fistened to the various with
which via paint the Brst part of this
and will prevail.
I Dellero that (De adoption of the
table and 300 we find that via be will
Bn the residation was agreed to
names appearing before our committee
year. the revenues were alto increased
There is no question and I propose to
unliry registed in this measure will save
retain after be pays taxes will le less
The SPEAKER. The Chair recognime
and beard the comunenta of elementa
for the fiscal year 1244 by advancing
prove It by anking exturent to
the taxpagers of this country untold mil-
than $5.000 next year. That seemo a be
the exattement Irvm North Carolina Mr.
and factions, receiving many helpful
the date of payment of individual In-
Jasert in my resures lables
Does of dollars Through the crurtess
the anover.
suggestions. in the final analysis the bill
come tax B thing incomes end requir-
showing that THE tempayer would have
of the Chairman of the Committee en
Mr. DOUGHTON. Mr. Speaker, I
Mr. DOUGHTON. Mr. Speaker, I
is the result of the thought and surdidos
the partial parment of the uncanceled
more than 810,005 Delt under the original
Assiunts. our beloved cillengue the
yiski to the gentleman from Montabe be
nigno that the Heave resore Stailf into
labors of our committee. D is not 5
pertion of the 1942 tax in 1944 and 1945:-
Treasury plan. In vum of what the ex-
explleman from Missouri 1Mr.
a umanimons-comsent request.
the Committee of the Whole Mouse on
Treasury bill. 6 joint staff bill a C. I. o.
These acta for & full year of operation
jority leader said. I sait FOO-
bearines were held a week LEO today on
Mr. O'CONNOR. Mr. Speaker, 1
the tista of the Union for the considers-
bill. a chamber of memeror MIL or a
will produce approximately $41,340,000.-
sent to tasert in my previous remarks A
this measure before the Committee in
unanimous consent to extend ny eath
we M the bill (IL R. 3687) to provide
National Association of Manufactures"
000. With the $2,140,000,000. this bill
table showing the effert of the propered
Accounts 1 trust that committee will
remarks in the Receive with a
reverse, and for other purposes.
wa. It la a Ways and Means Committee
will produce total revenuen for a full year
Treasury tax plan un incomes of varimes
soon report this measure to the House for
the price of oll in Montana.
motion was agred to.
bill, and for II we assime full and sole
of approximately $43,000,000,000. Thus,
cines. This table abows that under the
suprideration.
The SPEAKER Without objection a
Accordingly the Bruse resolved tuelf
responsibility,
in 4. years se is estimated that the
Treasury plan DO one would have more
Il would place as the disposal if the
la so redeced.
the Committee of the Whale House
I ED happy to say that during the en-
Pederal tax trurden of the American
than 811,000 after lares. I made a sight
standing committees of this House an
There ou no objection.
en the state of the Union for the consid-
tire procedings and escuideration of
people will have been raised by about TOO
error of $1,000 end I am willing to admit
BERECY skin in its particular line of work
The motter referred to appears e the
station of the bill EL IL the Bert-
this legislation there was not the elight-
percent, while the national income pay-
that, but I want the record 10 show that
to that of our office of Legislative Coun-
Appendis.]
true Act of 1943, with Mr. Corr tn the
est evidence of partisanship in our com-
menta have Increased from about 871.-
$11,000 D the maximum that would be
sei, and such an super would be able to
shair
mittee. The minurity members cooper-
000,000,000 to 1939 to about $143,000,000,-
len any taspayer in the proposed May-
EFS socurate end definite information
CALL OF THE BOUSE
The Clerk read the title of the bill
ated wholeheartedly in the preparation
CHOKS in 1943, or approximately 100 per-
genthac-Romevelt plan.
fur each committee with reference to
Mr. RIVERS. Mr. Speaker. I
The first reading of the bill was dis-
and fermilation of the hill and worked
cent. The reverse collected by our Clor-
Mr. RANKIN Mr. Speaker, will the
authorizations of appropriations that
the point of order that a quantity a gift
Provide with
as faithfulls, u earnently, as conscien-
ernment since July I of this year-that
gentleman yield?
might be requested of that committee,
Mr. KNUTBON. Mr. Chairman, may
present. Mr. McCORMACK Mr. Banket, 1
tidusty, and N-I helpitally as the maintity
M, for little over one-third if the current
Mr. FISH. I yield to the emilements
and then, in emjunetion with the spe-
No have some understanding in regard
members. The minority, therefore, has
fiscal year-excends that of the entire
[rom Mississippi.
clal agency which heretefore has tiesen
move a call of the House
la (line?
equal responsibility and la entitled to
year of highest receipts during the period
Mr. RANKIN. You lay the Treasury
approved for the Appropriations Com-
A call of the House WILA ordered.
The CHAIRMAN, The Chair may say
equal commendation for the legislation.
of World War No. 1 by $9.000,000,000.
tax NIL Is that the bill we are new
mitive, and enterning which the gen-
The Clerk called the rell- and 18º fair
the under the rule. the time la equally
We vere thereoaphly cognisant of the
Mr. ENUTRON. Mr. Chairman, will
considertuz?
tieman from total IMr. Jessen] has a
journa Members failed to allower in EDMIT
divided
enormous deficita which - was n-
ibs gield?
Mr. FISH Oh no. I mean the nrigi-
pertinend hell pending before the same
Mr. DOUGHTON. Mr. Chairman, is
names:
penditures are creating in our gerrn-
Mr. DOUGHTON I yirld to any dis-
nal Em-
Committee en Accounts, we would be
No 1401
la enderstood that the time will be equal-
mental finances. We were also fully
tingulahed collesgue from Minnesota.
Illing salaries and incomes to $11,000,
abto to know the amount of the authori-
b Cirided between the gentleman from
sware of the margin between the arail-
He la a very able member ut - nôm-
which was the recommendation of the
nations ve should make, and then we
Allen, LA.
Imme
Cantisie
-
Michesota [Mr. and myself.
able supply of consumer goods and the
mitter.
Treasury Department. Notanty back
Auchingloss
would be able to follow up the appro-
Baldwin. M.
Mo.
-
The CHAIRMAN, The gentleman
present purchasing power of our people
Mr. KNUTSON. I extend any ean-
home apparently has ever heard of It.
pristions and know how the money was
Hand
DENET
Ina North Carolina la recognized.
under increased wartime income We
gratulations to the residents of Nurth
They have heard of $25,990 salary time-
spent. I think also if there are Federal
Deysin
Comments
Dradler Mish
Coffee
pm
DOUGHTON asked and was given
were fully aware alto of the great ned
Carolina,
tation but this WAI an $11,000 insome-
apencies which are performing State
DIVEMB
and-salary limitation and MAL in my
Pa.
Premission to revise and extend his own
of additional revenue to meet at far -
At this point D. might be pertinant to
rather than Federal functions, - will be
CISTIMA
-
Buckley
1(marks.)
possible the necessary heavy expendi-
call to the attentien at the House that
10024
CONGRESSIONAL RECORD-HOUSE
NOVEMBER 24
1943
CONGRESSIONAL RECORD-HOUSE
10025
the per capita taxes in the United States
Mr. DOUGHTON. Yes: they are In-
grester part of the Discreased -
- to belp combat inflation and have
termal tax base, the surtax bear, and the
that the advantage of making adminis-
extend those levied In any other
cluded in the SIST per capita tax burden,
but in addition to the $43,500,000,000
This It seema perfection clear Khas the
and MI shrough taxation to the top Hmit
Victory tax bue, & different net of
tration much easier and of service M-
country.
Treasury program would Dot have
- now deem advisable,
exemptions is required in the case of the
ditinnal revenue from this source would
Mr. DOUGHTOS. I am just coming
INderal tax we have BLACK and local taxes
curtred Inflation to any -
The more important and direct chedks
Victory tax from that required in the
more then offset. any increased burden
to that point, if Une gentlemen will par-
of $10,000,000,000. It makes . total tax
load to the American people, a. Insd they
increased very substantially the infla.
gree, but un the contrary willd have
is dealine with inflation, however, prizes
case of the normal and ourtax. The
on the taxpayers.
den Die
and have not ben correspond-
earned-thoome credit further ocmpti-
A special deduction of 4300 ⑉ al-
As our sevenue have Increased,
are carrying today. of more than $50,-
timary dangers Instar as they resie
mit held in line. Vetil mater dirti
ested our tax tax by requiring a different
loved in completing the grow Income of
we Date increased last burden no-
000,000,000 per annum.
persons in the lower income tax to
le monthly this situation to más, the
base for normal tax than for
a blind person. Il vas pointed out that
contingle, We certainly have not lagged
Mr. CARTER. WILL the gentleman
There has been must discussion if
cour diffect of levylog additional taxes
Bince prior iswo have extended our in-
bitnd persons have additional expenses
behind aLm nations En this respect. On
yield?
the no-called Inflationary Big. which
will fie to place further hardshige and
dividual tax to 6 great many more tax-
that are not Incurred by per-
the contrary, the par rapita tax burden
Mr. DOUGHTON I yield to (he
generally defined to their the discress a
enterable burdens upon the Boxed In-
payers. it a very important that every
sons, such as for the employment of at-
are exceeds that of other countries M is
geotleman from-California.
Mr. CARTER. The figures the gentle-
between the sums of money available for
- the so-called. white-cellar
effort be made to make the tax simple
tendants, and that antrie relief shrund
shown by the tollowing figures prepared
expenditure for rensumer Boots and the
greum and others who net only have not
and may for the taxpayer to understand
be granted in the form of an additional
by the Treasury Department
man is siving are very interesting and
amounts of consumer Boods available in
received increased insure out el the was
and be able to propare his return. We
exemption. to take care of the added
Instructive and 1 am sure the mambers
NO-11
of the committee are very glad to receive
supply the demand. I wish to commints
birt who have actually had their Income
have made every effort to simplify the
burden.
the I was wordering whether the
briefly on this inflationary Dip. No they
redund and their expenditures In-
computation at the Individual Income
(Total Industri State and
With request to the eurgurate tases,
United Blates
BEST
experts seem to agree either 4b the
erand. Contranted with this very real
tax. In - bill, which resently passed the
the MR makes reveral Important shanges.
United Kingsiom
251.
pentleman has aming the figures the per
amount of this END or the best way to
and practical situation, wur committee
House, We simplified the return furms for
The bill does not osotain any Increase
Canada
201.
capita national bonded indebsedbeis SA
close It. The Treasury has extimated
nd net crem It wise or safe to make any
1941, and by requiring the Victory tax
In the estporate normal and suries rate
compared with Great Britain?
the excess purchasing power to by not
constitutie Increases in individual In-
credita in be taken currently, DE MV-
It was throacht that an excessively high
Our expenditions exe also presily in
Mr. DOUGHTON. I am entry, I can-
000,000,000 after taking linte
eme we
corded in eliminating several Items from
tax on the normal curnings of orpors-
uses of thrug of ether nations net only
DOI give the gentleman that figure, but
un total BUT also pro capita.
$21,000,000,000 in individual lictes and
Mr. ENUTSON. will the gettleman
the return form. In this bill we have
tions would have e serious effect in re-
I will include it in my remarks and Insert
$17,000,000,000 used to purchased War
yis
further simplified the resurn through the
tarding normal dividends and eti-
The estimate of British expenditures for
at in the Record.
Image Others claim Il is still (Tisle,
Mr. DOUGHTON. I yield.
elimination of the Victory tax and the 11-
oway enitanger many corporations net
the present year totals about $23,000,-
Mr. CARTER I will be very happy
and there are still others Who crotend
Mr. ENUTSON. At this point I think
peal of the earned Income credit. We
with declining incomes caused by the
000 000, wheresa nur year expenditures
to receive it.
that there la no substantial END M all
It a fair to point out we are rapidly RD-
hope to accomplish state further simpli-
was Over 30 piroint of the dividends
are expected to reach ninety to ninety-
Mr. DOUGHTON The Information
&s I said before. our considerations if
providing the point of diminishing n-
fication in the administrative and loop-
of corporations are received tor Individ-
five billion dollars. A. comparison of
requested is as follows:
this bill were in the licht of leing and
tarru on the number of tax anternes,
hole bill of next year.
unis with incomes of Sein than $6,000 and,
Ammiran and Bruttsh expenditures up to
Per expira grom debit of entral groenwients,
practical minditions confriding us and
Mr. DOUGHTON. That to the Juda-
In the interest of simplification, the
in many these represent
the and if the current financial year in-
Min. 36, 1543
not controlled by thenries or sintrage-
get of & creat many people and a great
estamities adopted the following jdan
the note Encure upon which the mdl-
dicater that we WICE have spect $200,000,-
oro 001 for var purposes as against Bell-
United States
I
tions. We Itted lo be réalisie rather
may You cancot Impose
for the purposes of the individual income
vidual espenta himandf and his family,
Corst Bertain
all
than theiretical.
too havy B tax burden. When you dr-
MAX:
In addition, many of our religious, char-
ain's
This inflationary RAD uno le ne to
BUCY she initiative and break the morale
Pink The Victory tax was reposied
The American geople liest the hereist
By Sept. 30. se the figure has third to
liable. or educational Institutions would
rainy titure Aguns fun Ormat
be A statistical absiraction end nes a
of the texparers # is like everlending A
The normal tas was increased
not be able to survive, If their dividend
fax MAA of 802 over 15 the world. Il
Untain are not amiliable,
pable of are reasonable
good team and, being . farmer, I have
from 9 to 10 percent to replace the Vic-
income were greatly reduced through en
is more than a times the tax till of
In any case, VII have through taxaties
NYO many good teams rulned by being
lary
tax.
Increased corporate Income tax. Thire-
Orist Brissin. which in armind $1,000,-
By now is should be absendantly clear
gone es fat as I believe feasible in the
everloaded. You can place an comm-
Third. The present personal exemp-
too the bill provides that the excess
and 14 United the Iss bill of Can-
to everyone that lastion alime is not
light of all of the circumstable Der-
milde tax burden on the American peo-
Uoná and crédit for dependents were re-
profits tax be increased and not the not-
née, In aptie of the bürden
adequate to control inflation. The place
fainty. the lax portion of the anti-infis-
pie which would have the same effect so
tained.
mal and partax. The virtu profits tax
under which RUT peopin are already
where inflation can be most effectively
tino program la far shind of the TMI
tar as the morale of the American people
Fearth. The surtss schedule of estat.
fale NM increased from 90 to R$ pm-
gforning, the Treasury so iu appear-
desit with is at the Amtres where It artses,
unces before our runsmittee required
and price portion of this program.
Il amerned, as overleading & good team.
the law was adopted with certain adjust-
emt. Information was developed before
Dip as you may into the flawing stream
Mureover, the who express the greatest
You Cutrourage them. How? You re-
to bring the surtas in lime with the
mir committee that many corporations
additional revenue of $11,100,000,000,
through laxalion, you cannet overcome
alarm at the inflation bugabon or danser
move initiative and break their morale.
elimination of the Victory tax
using the invested expital credit were
principally upon the assumption that
the flood raidied by excessive income
do not. in me opinion, fully take the
Nothing could be vorse, especially in
Fifth. The earned Invoice credit VM
not paying excess profits taxts. This is
such a atain on the potentbacks of the
flowing into the stream. Taxation can
American prople would control Inflation.
sociunt the public psychology. while
Unio of war than breaking their morale.
repealed,
due to the high return on their invested
and must perform its portion of the anti-
In my the dure effects of such
there are undoubtertly many cases of
berause the American people are willing,
Bath. Married persons filing arparate
capital which the present law allows and
inflation program. bet ones the money
reddess spending by persons with sub-
they are patriotin, and they are accious
returns are each required to take .
to the rather liberal cafry-over and
en additional tax load would more than
has been paid out in excessive WEEN or
offset NO? good which vocild be
stantially Increased Incomes, on the
DAY now, rather than pass 5 to future
single pince's exemption,
carry-back provisions of existing law.
excessive prires, or both, texation simply
nisshed toward etopping Inflalion. If
whole our people are putting a very sub-
generations and future taxpayers, every
Beventh. A minimim tax of a percent
Que of the main difficulties of the ex-
cannot completely reculy the damage.
stantial portion of their earnings Inis
dollar they can reasonably pay on an
of the DER income in excess of a special
cesa profits tax has been Its burden en
such - program were put Rito del It
While the Treasury sitempted to
War bonds and sevines stampi. mto the
economically sound basis.
personal exemption of 8500 for a single
small companies. In onler to remody
would Immediately create demands for
justify its program as a check co info-
payment of debts. the retirement el
Mi, O'CONNOR. Will the sentimen
person, $700 for married persons, and
this situation, the bill provides that the
higher wages end prester profile En pay
tim, the program Helf was patently is-
the las MEL the natural otherquences of
mortgages and the making et install-
givid?
$100 as a eretit for sach dependent in
specific exemption of $5,000 now allowed
effectual in this respect. In the resurd
ment payments no the purchase of
Mr. DOUGHTON. I yield to the gen-
provided
which would be to stimulate rather this
timen,
The effect of the above changes will
for EXCESS profits tax purposes be in-
of the hearings, on page 21. you will find
homes, Insurance. and other IF
creased to $10,000.
to relard Inflation. Ti would sin lay
a table prepared by the Treasury De-
a crushing, and 1 believe unbearable hur-
purchase program. The areat TAP of
Mr. O'CONNOR. I joant want to make
be to permit the average taxpayer to
partment which indirates that of the
our people remember all too vividir the
this observation in support of what the
compute his tax both for novamal and
There was an devicus looginde called
den on the fund income or White-collar
1157.000.000,000 of income payments a-
ETUCD Whise increas not only have tot
lean years following the in 1999
gentleman has said, whom wish to com-
autax purpose un one net Income base
to the attention of the committee which
been Increased, but have artually been
timated for the calendar year of 1044,
and the privation they were forced to
and pay that tax to the Government.
** felt should not wall until the next
siment for bis splendid statement. In
reduced by the fine in the cost of living.
endure during the depression yesit
my country people are getting very much
The troublesnme base of the Victory tax
revenue Em Int action. That is, the
individuals having bet invottes of under
and the complitations resulting from the
divoldance of income and escess profits
$3,000 annually will receive $96,000,000.-
These recollections, at least = to the
discoursed over the high Invies on in-
In my nemion, such . crushing burden
earned insume credit sie eliminated.
tax through the purchase of defunct
000, or 61 percent or the total. Yet of
present time, have brought street . cen-
and we BITE approachine the time
et taxation would be far Worse than any
the 56.000.000,000 additional revenue to
siderable degree of caution with respect
Taxpayers whose Income tax in less
corporations. The committee believed
soe was we had better be pretty cate-
real or fenaled danser of inflation now
be derived from the individual income
ful or we will be destroying business and
than the minimum tax will be required
that this Jomphole should be plugged in-
facing our country,
to recklesa spendings.
Mr. KNUTSON In connection with
tax under the Treasury's plan, only $1.-
Certainly, 15 must be recognized that
to pay the mintenum fax. The minimum
medialely and Chat the provisions plug-
the coventive to produce sa income. We
tax was necessary to continue in the 148-
eine such should be made
what the able chairman of the commit-
700.000.000, or one-quarter of the total.
we cannot absorb all of them
Manila et taxes for a basts of ability to
would sume from them Individuals with
dollars" by taxation, especially under .
pay and the people who will
paying class approximately 11,000,000
retroactive to all taxable years begin-
tee far stated, It may the well at this print
to casi attention to the fact that at the
incomes of less than $3,000 antrually. If
program such NS that propred which
pay Lhese taxes, as for as we ran. We
taxpayers who are now subject to the
nige after December 31. tom.
beginning of the next fiscal year. at the
the primary purpose of this revenue leg-
either exampled completely se drain
thruld proceed pretty raulionsly. as we
Victory tax trut not to the regular income
Our committee also received consider-
rate = are now spending, the national
wation had been to cumbat inflation, n
tically reduced the existing que
a a precurious position.
tax. The present 20 percent withhold-
able complaint about many organiza-
would have been necessary to levy heavy
Mr. DOUGHTON, The aligible en-
the rate is relained.
Unns which are nuw exempt from Income
debt. of the American people will be MI.
millions of our citizens harine
additional income taxes on those persons
tially increased amounts of such
which have been made are a n-
The bill also made two other changes
taxes. Il is very difficult tn secure in-
eral times the total debt of all the other
enuntries in the world.
having Incomes of $3,000 per pear or les,
eur of the effort to integrate the Victory
to the Income-tax law. First. it denied
formation as to these esemest organize-
gerous dollars."
breause II la in this group that 61 Der-
In an effort to produce event dollar of
tax with the individual income tax
the taxpayer deductions for Federal ex-
tiens. The bill provides that exempt
Mr. OILCHRIST. Mr. Chairman, will
the gentleman yield?
tent of the increased national income
revenue which our economic can par
There has been much just complaint
case taxis paid in computing pet income.
organizations must Ble annual returns
Mr. DOUGHTON. 1 gleid la -be PO-
lies. But that was not our primary par-
and to avoid passing 4H: to folor 185
above the complications of une Invoice-
In general. this will apply to the sidmis-
of Insome unless they are relide
pore. The Treasury program would
Box laws, particularly the Individual 10-
dona LAS, the transportation tax. and
corporations or ostain types of educa-
tieman from lown.
have eliminated 9,000,000 Income tax-
ing soldiers, nur cummittes in the
payers, many of when will DE taxi
The tax Under the existing law, a
the telephone tax. Must individual tax-
tional or charitable corputations n is
Mr. GUCHRIST. May 1 ask the Ein-
Ceman if the figures be EATE include
payers and world have secured & very
4 years has raised taxes to ao care
Insparer la required to compute his tax
payers do not keep recurds of them taxes
believed by this means we will be able to
small part of the pruposed increased Ter-
dented height. In this consection of
- three different leases, namely, the
and our committee was of the opinim
secure information to determine whether
State and mimicipal texation.
enue from those who have by far the
have been fully conscious of our -
NL 10-1
10026
CONGRESSIONAL RECORD-HOUSE
NOVEMBER 24
CF nut such organizations are escaping
One of the most troublesame festures
with which our commiter had to dest
thank time extitlemen,
Mr. MOCORMACK Mr. Chairman,
1943
CONGRESSIONAL RECORD-HOUSE
10027
their fair share of the tax burden.
Authorished partlemen trum Minne-
Mr. WHITE Mr. Chairman, will the
Mon of the tax bill of 1042 the question
With respect to exclain, the revenue
was that relating to of oon-
yield? Mr. WHITE Will the gentlemie
and and New York [Mr. KNUTSON and
gentleman your
came up as to why we should not do
was increased by $1.202.000,000. The
tracts A was appointed
Mr. mel. pot exactly like any of us
Mr. DOUGHTON. I girld to the -
something about adjusting these postage
rate on distilled spirita was increased
te prepare s report on this malter and I
from 00 a gallen to $9 a gallon; on berr,
tisman from Idaho,
Mr. DOUGHTON. I giald to the in.
world have written IL but It is . bill we
tleman from Idaho,
nte to secure additional revenue The
may (a) that they performed an excel-
go sime with, it is the anly bill that
Mr. WHITE I approve the raising of
Post Office Department stated they were
from $7 to se a barrel, and there sete
lent job, working with lirelese energy.
Mr. WHITE I vant to refer to title
would summand the majority of the votes
the third-class mail rate, hus the only
studying the matter, bus on report has
also sight Increases in the with tax.
If was discinsed in our bearings that
IV, the postal rates,
et the summittre and it takes a majority
thing I want exempled to religious pub-
been rendered up to the present time,
Other articles subject to increased taxes
many contractors had just grounds for
Mr. DOUGHTON, I will come to that
of Its committee to report any bill. If
Beations. I approve of what the com-
Mr. HARTLEY. Mr. Chairmen, will
were electric light builbs, jewdry, tun,
complaining about the way in which the
a little later.
I BOX writing the bill, perhaps I would
milter has done
the gentleman yield?
tolles preparations, (elephones,
present renegotiation law is adminis-
Mr. WHITE I un walling patiently
part sritten IS & little differently, but
Mr. DOUGHTON, That matier will
Mr. DOUGHTON. I will state after I
transperiation taxes, admission used,
tered. We have grime $ long way in this
for that.
there La nothing In this bill Ret 1 cannot
undoubtedly be given consideration be-
pil through with my speech. 1 am Dry-
extrarets, club dues, bowing alleys, and
beit toward removing many of the
Mr. DOUGHTON, I Am going to take
accountantly and willingly support.
fore the bill becomes law.
the to complete is now and must decline
billiard and pool tables.
grounds for the complaints which were
that up later.
We e(m) new to the postage rates.
Mr. WHITE If they have an a.
to visid.
A tax on part-motuels betting at the
directed against the present procedure,
Mr. WHITE Before the entitlemento
or we did not have time to study
emption under resend-clam it is fair that
I am sorry I have not been able to go
rate of 5 percent was alan simpled as
by placing the Government and the war
Information concludes, I want to with a question for
the velize postal schedule and 11 would
they should have an exemption under
minro into detail In the explanation of
your committee and the tax on
sentractor upon 6 more nearly equal
- lieve changed and rates in the portal
this hill. Quite . number of the members
the transportation of property was T4)-
footing. The chairman of the subcom-
Mr. DOUGHTON, All right,
schedule bad it not been for the need for
Mr. DOUGHTON. Taxe are not very
of the committee est follow me, and I
talmed and extended to parcel post The
milter, the gentleman from Oklahoma
Mr. WHITE My question - to the
approval revenue. Everybody knnes
popular and THE always ni Into trouble
am sure that what I lack they will gisdly
on present exclases, and the new
[Mr. will discuss in detail the
exemptions on the increase in possiage
the the rates on postage-fist-, second-,
whenever we increase e tax or impose .
make MD, and answer questions. I have
taxes, are temporary and will expire
renegotiation provisions of the bill.
on religious publications. I Title that
and teard-class mill matter, and all
new as. There to always somebody
taken enough time.
after the war.
Mr. McCORMACK. Mr. Chairman,
you have made an increue, doubled the
- el mail matter-hare been mit of
Austra they cannot stand an Increase or
Mr JENSEN. Mr. Chairman, will the
Mr. REED of Now York. Mr. Chair-
will the gentleman sield?
third-class rate, but you have nel
advalment for 6. long time. Bark tn
cannot pay the additional cax. You
gentlaman you!d?
man will the geotleman your
Mr. DOUGHTON. I yield to my de-
touched the second-clais rate, 1 an
1917. m) entinguished predecessor, Hom.
cannot win a war, you cannot Busnce
Mr. DOUGHTON. I yirld to the gen-
Mr. DOUGHTON. I yield to the pip-
tinaulibed friend from Massachusetts.
wondering If if would not be word policy
Cuite Enchio-no ables or greater man
the Government, you cannot carry on
theman from town
tleman from New York,
to eximpt religious publications under
ever in this body en ever stopd in
the economy of the country and Mt invo
Mr. JENSEN. The gentleman said
Mr. REED of New York. Mr. Chair-
Mr. McCORMACE, Due to the fact
the third-class rate from the Increase
the will of this House-hed something to
ery taxpayer write his own tax bill.
that much of the third-class mail to net.
man, 1 MI ACETS la interrupt the gentle-
that By dislinguisbed friend the chair-
man of the committes has yislded now, I
Tarre ta no provision in the law the
AND on this matier. I have also heard
That cannot la dons. Bus the do give
and important.
man because be La making an excellent
sovering that,
may H7 (Dat I falked with the sentle-
the Innorable 200 Cannon, sho was .
as careful consideration All we can to
Mr. DOUGHTON. The gentleman
presentation, and I congratulate ham
mas . Inc days año about a committee
Mr. DOUGHTON. If they are nel to
not debiter also. On one be
all the witnesses that come before us with
says It SAP
upon a but this question has brea wind
by a number of Members and 1 assume
amendment I rewited the stiuation and
exempted. I as no reason say the third-
laid BY for as be knew Claude Klishin
respect to Increased or new taxes
Mr. JENEEN. Yes. I have a munher
difficultr of considering too many cram-
class Increase should seply to registed
had no agual, as . debater. He called the
Mr. HARTLEY. Mr. Chairman, will
of purerve in try district who sell ind
it is of some importance to know the
publications.
milter emendments, so I agreed not to
of the country to the fact at
the centleman Field?
and nursery guods.
answer in replying to the lettern of in-
have the matter pressed at this time but
Mr. WHITE We cannot Amend this
that that ever 26 years ago, these portal
Mr. DODGETON. yirld to the pro-
Mr. DOUGHTON If sould nut vield.
quiry. The question has been anted M
I should las to and ufy friend's reaction
bill, trus the provisions of the au " an
BAN quent tall be adjusted. How much
deman from New Jesus,
for a question. 1 carmot yield for a
to when the provisions of De tax bill will
now considering will double the postage
- a he sald me were Josing at that
Mr. HARTLEY, In view of the fact
to IC.
speech. We have taken actim. If the
take effect. The gentleman will sota
rate on religious publications.
-
that the gentieman's committee has tak-
gentleman will en inform the Senate
that the different provisions take
Under the present law members of the
Mr. DOUGHTON. It II too late to
Mi. COOPER Il was M years ago.
en over the writing of postal rates—
Finance Commitiee and CONTINOP that
at different times, 1 have here a little
armed turues are allowed a special de-
think about that now. We estinos die
Mr. DOUGHTON. We have not done
baty that se have made & mistake, as
duestion from erom income of DO much
Two 630 Le 1919.
memerandum which abows the effective
consider it thoroughly enclugh la de
that; I bes the gentleman's purdon.
of their compensation for active service
Mr. DOUGHTON. Yes; 26 years sgo.
- often do-for we are not infallite-
date of sach provision.
It as - committee amendment. but metti
Mr. HARTLEY. In view of the fact
Mr. DOUGHTON In this
MI COOPER, Bis sperch gave com-
the gentleman will have hu opportunity
in the present was as does not exceed
an amendment may be offered in the
that you have gone into third-cleo ratel,
bill if enacted into law, will Income et-
$1,500 in any year. My suggestion IS-
statements u to the amount
there If the Benale decides we have
Senste and if it appeals tal mur conderers
which DAF 15 peromi of their freight,
that est lost. Il showed that some of
made 6. mistake, our conternes will at
fective December 31, IHI.
and I hope that the Senate puts is in the
tot and that the House conferees will
we can adopt it then.
why aid you tost go into the question et
the jusye magazines and periodicala of
least be open-minded and fair-minded.
Mr. REED of New York. Bid the dif-
Mr. WHITE The chilr-
revising the second-class rates, which
ferent provisions in the bill tenane of-
accept It-that similar relief be granted
the were receiving subsidies
If WE have made - mistake, we will be
man of the Ways and Moans Committee
par only 25 percent?
name from a quarter of a million to
of naget as can be to restity it.
fective on different dates. E Insue the
with rimpect to so much of the earned
would be in fevor of exempting religio
Mr. DOOGHTON. The committee eid
. hair-milion dollars, some of them up
Mr. JENSEN. I thank the gentleman.
dates here If the emileman cares to a
income received by them during the
publications?
not consider that third-class mail matter
M web as four ar five million dollars a
Mr. DOUGHTON. In entidualen I
sert them in en remarks,
period of I year after their discharge
Mr. DOUGHTON As for as I under-
was of equal importance, of equal value
Mr. DOUGHTON If there la any
from the service as does not exceed 81,-
2007,
to the American people, and of equal dis-
wid to state while your committee ne-
500, Bach an amendment would aford
stand 1% now, yes. Of ourse, there may
question about is I will insert that at this
Mr DOUGHTON. Now about this
the desirabilità of kerping the
substantial rest to the strvicemen and
be tech vical remons why such in ciemp-
nity with second-class mail matter. It
point In the Record
mail matter, there seems to
is mostly advertisements. You get .
public debt at * eminimum and paying NE
tion in not finable.
Mr. Chairman, the question has leen
1 underwand there would be nu immedi-
Mr. WHITE This b Jult matter of
be differtance about that The
publication that pays third-clase portage
much of the of the war as to con-
estant as to when the provodons of the
she for of revenue for any Inie would be
postal rates. You have extended # to
mail matter has tick paid its
and nine-tenths of # la pure advertising.
sistently possible out of current reve-
lax bill will take effect.
offast by the economic advantages re-
second-class rates and I cansot ARE sur
way, neither has the arcond-class, for
I think that class of mail matter can at
DUEI, It le also kenly sware of the fact
that too heavy a tas burden is as grest
In the provisions relating to
sulting from such a policy of post-war
pain, out there is a difference between
rehabilitation I wonder if my distin-
reason for not extending It to
this time pay something.
the individual Income tax and to or-
Firesd- and third-class mail matter.
Mr. COOPER. Mr. Chilrman, will the
a danger to the Nailon's economs as is
rates.
persion taxths become effective January
The Mond-class mail maus is mostly
too large a pulitic debt. Certainly we
endor friend would care to make an
Mr. DOUGHTON, Perhaps lhe -
gentleman yield?
all news and material of educational
Mr. DOUGHTOR I yield to the sun-
should pot pus m'to Suture taxpayers,
1, 1044. In other words they are DA to
observation as this time on each an
be retroactive,
Geman is correct.
amendment ate? If n is by the Ben-
value, while the third-class matter la
tiemen prom Tennessee.
many et whom will le DUE returning ati-
The EXCM tax increases will Income
Mr. WHITE The gentleman aid 15
go inte the stamp tax at all, the postion
may of an advertising nature, books and
Mr. COOPER. I think Il might be ap-
dem, later that we ourselves should pay,
effective - like fire day of the first
Mr. DODORTOS. To response to the
estatops, To the last 15 years third-
propriate for the chairman to point out
but neitber should we pms an to these à
month which Degins mure than DE days
of a tax on money orders for
matement of the distingulahed majority
a mail matter has enjoyed & subsidy
in resis to the inquiry that has just been
business structure All wermed by heary
after the date of enactment of the hill
Mr. DOUGHTON. We labed and
leader I may say that on the face of the
presented M so who the committee S&W
taxas that is will be unable to carry on
⑉ the expense of the taxpayers of the
Thus, if the be becomes las by Diem-
proposition and what study I have had
everything.
Volne States of at least $250.000.000,
fis 10 make at least some adjustment in
to the port-war period,
ber 10. the exclare taxes would be effective
time to give II, It la my sudgement that It
Mr. WHITE That was done in the
Pro 1942 it 9M about $24,000,000.
them postage rate matien that there is
When this will has besn son. and God
January 1. u. however, the bill is not
would be a TOTY worthy change to make
last war when we had much
We have increased the taxes 00 trans-
not soly deuire to invade the perugatives
grant n be at an early data, we want
signed untill December 26, the Excises
In our present law, I would, of course,
ture than we have now.
Dirlation of persons, on telephones and
of the great Committee on the Post Office
the business and industry sil the Nation
would net benome effective until Peb-
Mr. DOUGHTON. Almost enverythise
and Pest Roads, but the fact remains
in . condition which will mable If to
TURTT 1.
want to take the matter to our commit-
Telegraph message, on freight shipments
the for the comsideration. I will say to
in the tax hall that could be considered-
of food and tarm materials, and of the
that for 28 years this attention has ex-
offer the grostest measure et opportunity
The postal increases will tab effect
the distinguished majurity leader that
that had any relation or en iss
Directives of life, and why should not
lated end neibing has been done about 15.
and employment to those who are now
on the 30th day wher the date of mad-
while the bill is in the Senate and before
matter-was considered and discossed
those enjoying the third-class mailing
by that great and distinguisbed commit-
offering life's fullest missure of devo-
tuent.
n goes to reference I will attempt to
in our committee. DE course, time bill
call the commities together and take up
la not & bill that any con person would
provide be called on to pay a Ittle ad-
les. Il was thought that a. start should
tion to our country on the far-sway
The changes in the rensentiation law
Allonal for revenue purposes? They
be made by somebody and not let the
haitleBelds of the world,
will be effective en the main as to Direl
this and or IL la favorably
have written. II is not the the -
shruld not, complain during this war
thing run indefinitely in the future.
I am Inserting at this point a table of
years miling after June 30, 1943, II-
man from Tennessee (Mr. Coomal
sthergency.
Mr. DOUGHTON. In the considerá-
exclue taxes and postage rates:
cept that the court-review provisions are
considered by the committee we will ank
would have written it, or my distribute
made retroactive to CIVIN all past n.
the Finance Committee of the Senste the
guished friend the gestleman gon
negotiations.
bill. Incorporate B M an smendment to our
Arkansas (Mr. Minis), or the penDenió
from Virginia [Mr. Rosemeal, of de
10028
CONGRESSIONAL RECORD-HOUSE
NOVEMBER 24
1943
CONGRESSIONAL RECORD-HOUSE
10029
bron and person réint
under the great middle class, which
table shows that no matter how much a
Mr. ENUTSON. That la right. But I
is the nulwark of the Nation. It would
man earne to 1944 and 1945, he cannot
will my to the gentleman from California
Employer
the the future solvency of all bust-
have more than $24,000 left. after taxes,
H burta just as much.
-
- imperil cavings, and jespardise the
and in fact he may wind up owing the
Mr. VOORHIS of California. No
missing
las - end rate
Proposed tax fam sui name
White -
pail-war continuation of privale enter-
Treasury even more than his total In-
doubt; but I think that might to be
I las
give Moreover. It would destroy the a.
come for these a years. The taile fnl-
made clear to the Committee.
/
et
not
and of the American way of life. which
lows:
Mr. KNUTSON. Yes: I was coming
not armed torces are puw heroleally bat-
to that too, as we say in committee.
Taxa burden AND 1944
3. District
#: - pas of 0.75 per plus -
to DI allo of as per talks
[ling to maintain and presirve.
Mr. CURTIS. WE the artiemen
- simint,
67 -
We Republicans are determined to pre-
and 1941, net Victory far and
a PM him!
one-half of un/orgines 1342 DER (conoming
Date
With
Name
ent and encourage free enterprise and
so change in MI income)-Matried person,
Mr. ENUTSON. I yield.
all
- - año
" notr are pão
reportunity in America, not destroy
- dependents
Mr. CURTIS. Is this tax that is In
l'ister LE print
DIE by excestre taxation. When the
carem of Income considered an Income
the prive
an entre - alin
in unter - mine
time R
N ENT -
E pm gillin,
millians of men in the armed forces come
NA - for
1
tax? Dr what authority can your com-
is - per MI pai
18 - - half plat
born -
into per LAV par
13 em per hair past
tack from the far-flune trattle fronte
Are permissional
Victory, and
calsing
mittee impose an income TAX beyond
filler
EXP-
rate
New - -
yemil di - para
a provide of - - in are
VI eart them to find:
excepte
184
income?
largiren last
18 permit et reali nie
. - M mini prime
---
(vide)
permit N
not That jobe at gnod wages are
Mr. KNUTSON. Well, as the gentie-
Fay MM -
is need if voins price on -
---
-
(pril to them
man from California called stiention to.
Personal
one
That the door of opportanity
$7,200
n.a
LTD
in 1944 and 1945 we pay the full tax,
19 - of - prixe
= nut been closed to their atemos.
$1,500
76.39
3.00
can
plus 12% percent. which la one-half of
12.54
KTA
une
I
I
n prove of EME
IS - of
---
Third. That wasteful spending has
12.00
20.43
the 25 percent unstruted portion of the
-
as permed of date
a permet will date
tes itamped out.
U.S.
DLI
12.024
LINE
1942 tax.
is patient N NAME
el charge
IS - of care,
Fourth That the American way of life
IMP
- - miss
4.00
nan
1249
Mr. CURTIS. Regardiesa of what you
of (harge
permit of -
tur bee presented.
991.28
call 11. it a all a tax Impased by this
1
À power of 1 for vile.
person of sharge for
1,58 %
Government
E
10 perventi of dure
11 Director of de
If America a to remain a land of op-
18
- pervent of scient past, 1 A POCA start
Sexe
$15,000
NE
I
, mir tax la will who
must put a stop to the Joose
tax
T.00 M
am
15,000.20
Mr. KNUTHON. Regardiess of what
!
XX
press pricies of the present administra-
11,197.13
4LTA
you call it, 11 comes out of the works
0,00
are
1 - - n/a nur - being limit
mb le est » and - Institution Unrel
um fine extravagent and wasteful
pooket.
I
IN perced et durps
pendi of claims
MM
Mr. BOWE. will the
is
pervot. di these
a provided of charge
spendings have been sue-
$200.00
N.O.
If - of hap
= - of -
covited by squally reckless expenditures
$210,000
291,191.04
-
AND
yield?
- en
4
-
sins -
PAGE
for war. Our Malion is today spending
$300.000
um
1,000
Mr. ENUTSON I gield.
BE
to per Mile.
-DMP
exam
care for military purposes than the
Mr. HOWE. Has the gentieman ne-
à permits at - -
zag
18.01
-1,18.00
United Kingdom, Germany. and
termined what would be assessed against
1 I 1
Sapan combined. Various congressional
a million or two-million-dollar Income in
if. Preva
into war spendjngs have dia-
the absence of the 14% percent? I think
class
I-mis (XT - land
1 eno - -
chard that money is being squapdered
No Venery tax magetel . - - - in
that, too, should be part of the record,
-
Mt tool
-
1
I
. per -
- - Imps.
Trad -
use
en every hand, not only for milliary cup-
Mr. ENUTSON The regular tax is
et TMI - se not
2 sen - la - : -
Name -
THE
is D miss - onler, amount
19 to ones
I all attention to Income of $750,000
$000,000 en en income of $1.000,000 and
Project
plum ou in excess of needs. but for Items
- IF D pm
a resta - B. IN - Mide
United mil
LAUR
to as TVT
besine no direct connection with the
and more. 1L will be noted that tn these
$1,800,000 en an meams of $2,000,000
is a = mis una arick
C, DAL
----
14 EM Der male
34 critis for pr article
1.00.00
war effort. The action of the Wat Dt-
instance the tax collector lakes all and
Mr. ORCHRIST, Will the gentleman
This miss
partment in turning back to the Tris-
then some Rre is that for distributing
yield?
---
the wealth?
Mr. KNUTSON I yield.
Organ tud
sury some thirteen billines of its appro-
Mr. REED of New York. Will the gen-
Mr. GILCHRIST. Do the figures you
---
printions shows that the present $357.-
000.000.000 war program is far in PECESS
Ueman yield?
have set forth include State taxes and
el - All M Twith From at et levels of Insure in pref. THE
of needs. No doubt other service depart-
Mr. KNUTSON 1 yield to my good
municipal taxes?
a - e - und de moving Registro part - the with main air IN h the Peti Office Dearmic
Mr. KNUTSON. No: they just include
ments could make similar refunds with-
friend.
Mr.
ENUTEON
Chairman,
I
In defesting the administration's pro-
out in any way impairing the war effort.
Mr. REED of New York, As a matter
what you owe your Unde Samuel.
Mr.
that this was but nne of many deseptions
Mr. GILCHRIST. On tep of all you
yield mult such time as I may require.
gram in committee, we have lived up to
on the part et the administration, and
There Le no doubt in my mind but what
et fact, there are several bracketa where
have said, they will have to par addi-
Mr. Chairman, the pending tax - la
that protitise The bill which has been
sn investigation of lend-lease allotments
he will cive the Government more than
but one at an endicas procession of major
is this connection, Mr. Taxpayer, who if
tional State and municipal taxes?
reported by the committee raises but
the forgotten man under the present id-
to many nonbelliserent foreign coun-
he earns.
Mr. ENUTSON. Yes, It would be
revenue Beasures since 1933.
now-Bith of the amount requested by
ministration, is recaliting the duest
Iries, particularly in Bouth and Central
Mr. KNUTSON. Yes: I thank the
much cheaper for a. millionsire to take
In this period Use tax burden of the
the administration, and most of this sure
words of a certain candidate for Presi-
Amirica, would disclose that many bill-
gentleman, I are coming to that
American people has been increased
will come from Increased excise levies
The poor chap who has an income of
the bankrupter cure.
dent in 1932, who mid:
liens are being poured out for such non-
twentyfrid-ireen two billions annually
un loxury and semiluxury items.
$2,100,000-and I DEVER expected to live
Mr. MICHENER. Will (be gentleman
Trave are paid in the sweet of every ná
milliary purposes as the construction of
to a present total of more than farty
yield?
From now on the motto promulgated
who labora
so sericultural college in Costa Rica, for
to in the day 1 would commiserate with
billions.
example, road building, sanitation, and
a man having en Income of one or two
Mr. KNUTSON. I yield.
The time has come stro we have starus
by the great spender, Harry Hopkins,
Even Santa Claus will In time pall sa
"Tax and tax. spend and spend, elect and
million dollars, but, of course, 1 could not
Mr. MICHENER. ww you insurt in
niher unrelated grajects. Our people
reached the bottom of the barrel 80 for
elect." is out. The people very de-
the people if be has nothing but error
ent this sort of spending stopped. and
former the New Deal.
the RECORD the amount of Lorome tax an
42 the possibility of securing additional
puffa and marshmallows to affer.
Getting track to the poor devil who bas
individual with $150,000 income for the
revenues is concerned. There la . lianit
claively name to this decision In Novem-
chipped now.
The people, straining under the pres-
Time Dax shown that we CAD tvo longer
an inosine of $1,000,000 to 1944 or 1945.
coming year will be compelled to pay?
to the people's ability to pay taxes, erea
ber 1942 and seain on November 2 of this
year. We of the Republican minority
ent heavy tax burden, are beginning
caluly delegate. without supervision, the
he will not only have to pay to $2,000.-
Mr. ENUTBON. He will have to DAY
In time of war. During the part 4 years
will do all in our power to trase It torn-
more and more to realize that there in
conding of the taxpayer's hard-earned
but he will have to pay $10,730 on
$127,155.13 If be a a married man with
they have had to absorb particularly
plately from the Nation's escutcheon. We
no such thing as something for nothfar.
many to Individuals in the executive
tvo dependents. I suppose the 13 centa
top et that,
drastic increases to meet the stassering
have already given notice that, so far as
Somebody must pay, and at is always the
who labor under the delusion
Then we come to the hopeless bank-
la to show that he is out of luck.
war costs, and they have not had Lime to
we are concerned, we will not give con-
consumer. He pays both in visible taxes
that the money the Government pays out
rupt who Das an income of 85,000,000 in
Mr. MICHENER newspaper in
adjust themselves to une intrease before
D the product of printing presses when
my district stated that a man with an
elderation to IDE imposition of additional
and through "hidden" Jeries.
1944 and 1945. He la going to pay $45.-
another even greater one has been piled
taxes upon the people until the adminis-
In the consideration of the products
any schoolboy knows that every eent the
THE in addition to the $5,000,000. So
of $150,000 would be compailed
on. Now the administration wants to
bill the committee ENTR careful study nt
tration has first eliminated all waste
Government expends must at one time or
what Reserveit ought to do la pay Enr
to pay about 99 percent. and that he
add ten and one-half billions more,
and extravagance in Dovernment spend-
only to the probable effect of threame
snother, in one form or another, be
more millionsires to rue threugh the
would have but $15,000 left on which to
mostly by sharp increases in the already
ing and than only If it be absolutely MIC-
thxes upon the Nation's present
wrong from the people in taxes.
live.
eringer.
burdensome personal income tat.
but upon the future at well.
I shall not spend any time in justify-
Mr. VOORHTS of California Will the
Mr. KNUTSON. On $130,0007
essary.
When the administration's tax pro-
Chief Justice Marshall's dictam that
the lbe committee's action in relecting
gentleman yield?
Mr. MICHENER Yes
gram was proposed early In October, the
There la en old anying that "chickens
"the power to tax is the power to e
the Treasury's proposal for drastic in-
stroy" is no less true today than -
creases in the personal income tax. other
Mr. KNUTSON. I yield,
Mr. KNUTSON No. That might DC-
Republican members of the Wass and
care home to roust," and that la surely
Means Committee took a strong stand in
true so far as ft applies to the adminis-
ultered durina the early days of the Re-
than to refer to the tellowife table,
Mr. VOORHIS of California That
19 under the Treasury plan, which the
fration's wasteful spending. Per years
which discloses that despite all the loose
eumes about. dos is not, because of the
committee rejected. It is all a part of
upportion and assured the people that,
public. The Republican minority un the
the Average man has born told that he
fact that taxpagers are required to pay
(be elsborate plan to distribute the
so far as we were concerned, there would
Ways and Means Committee believe that
tale we have heard about the need for
be no increase in the personal income
need have no worry about what amount
to increase taxes by ten and coe-ball
putting A limit on incomes in wartime,
12% persent of their 1942 income at the
wealth. They stole Huey Long's furmula.
was being spent by the Government to
billions as proposed by the administra-
same time as they are paying current
They took that over as a part of bis
tax or in the tax an the normal earnínes
one eristing tax laws have already
of business. Having unanimously Joined
Washington since the other fellow would
tion would be a destructive act. In our
Brought about such & limitation. This
taxes?
estate,
be taxed to pay the bill Now he knows
opinion, this additional burden world
10030
CONGRESSIONAL RECORD-HOUSE
NOVEMBER 24
1943
CONGRESSIONAL RECORD-HOUSE
10031
Mr. O'CONNOR Mr. Chairman, will
Mr. KNOTHON. Yes, I can do that
Mr. o'comsion. No: that still does
urtes, they are going In for education,
tax windfall fur the previous year. If there a
I want le close with 1 little philosephy,
the sentleman yield?
A married man with sn Income of $2.500
all survice my question.
and you will destroy the taxes which you
than I shall yuld the floor.
Mr. KNUTEON. I yield to my friend.
will par $825.61 in 1984. A man with &
the is la taxed in full and, of kny
the is always B) gradous to ma when 1
$5,000 inrome will pay 8081.20. On
provent any Laz avaidance.
estate and Inheritance taxes NO costrye. also
Mr. JOUTSON. Well, that is Just
intend to try to gst. 3: seems to me that
If the Republican Party maintains the
visit the is talking about.
the theater pationa who DATE lasse, if
procent strength in the Congress, or
appear before his constitutes, I want to
$10,000 the tax will be $2,728.02 Now,
He appears to be resentful because We
they are excessive, will not go and you
keep as credit good.
we are getting up into the efficient class.
gentleman strid?
Mr. NOWE. Mr. Chairman will the
makes gains in the next election, the
have fixed it si that wigen be staps hav-
will destrey not only the privilege of
country can confidently look forward to
Mr. O'CONNOR. I thank the gentle-
Mr. DONDERO. Are those percent-
Mr. ENUTHON I ridd.
joy un inrome or when be did be would
going to the Guater, but you/will alan
reductions of taxes to the future. rather
man for these remarks. It is very Inter-
ages an increase or decrease over what
esting to me to bote that the $3,000,000
they were to 19427
go in the Record at this point. What
Mr. ROWE. I think one thing should
in eyed with the board.
destrop the Chesters in the smaller
than continual increases. Certainly, as
Mr. O'CONNOR No: But I will try-
towns.
soon sa hostillies to the present var
Income samer is exing to pay more in
Mr. ENUTSON. They are sin increase,
Mr. KNUTSON. The gentleman from
ever the forgivence was under for Runi
the to protect the Treasury when we had
cease, immediate attention will be given
the future than what his Income amounts
stane they include one-half the carry-
for WILL before us last year. When the
Okishoma la absolutely right His state-
to the revision of our whole tax strue-
to. I am wondering bow much the man
GNET from the unabated 2942 liability.
plan It did net differentate Delevery
earning. dividuals regardiese of their stating in- M
depression comes, when we will no longer
ment shows be to a men of discerniment.
trurs with & view to the realization of
whose income is $5,000,000 et2 pay in the
Mr. DONDERO, About how much to
have include, we will still need taxes.
I expressed similar views before the com-
maximum revenues consistent with the
neat year. and also how moch et that
percentage?
Mr. KNUTSON. How is that?
Mr. ENUTSON. Somehody will step
mitter in executive assinn.
lesst Intecterence with Individual and
65,000,000 be was forgiven by the
Mr. KNUTSON This is the total tax
isw the evalleman's show and carry on,
Mr. WICKERSHAM. I think the gen-
plan when the Rund plan was adopted.
Mr. ROWE, I my Whatever forging
business enterprise. Our tax laws are
burden.
tot I hope that will out be for a long,
tieman from Minnesota was correct.
archale, cumbermine, and complicated,
Mr. KNUTSON. Well, I thought WP
Mr. CURTIS. Doc that Include the
new there may have been under the tax
bill we passed to forgive pur of the la.
Inc. time
Mr. KNUTSON. Absoliately: bus there
Bound tax principles have lung departed
had laid that old short any long aeo.
percent?
Mr. ENITSON Yes: that includes
come tax It Applied to every Wattling =
Mr. CURTIE Will the gentleman
are those - the oremittee who could
from, and too eften the laxing power has
not see IL,
been und for other than revenue pur-
Mr. O'CONNOR, But If will not stay
of what it wis did it not
the 12% percent. Do you want a. nom-
Into? Mr. KNUTSON: I yield to the gentle-
Mr. MAHON. will the gentieman
poses. We have seen Issue availed of to
hidden. D la the Banque's ghart, is con-
stantly aprines up.
parmon?
Mr. KNUTSON. It treats all la-
an (rum Nabraska,
yield?
punish taxpayers, for social experimen-
Mr. KNUTEON. suppose It will keep
Mr. DONDERO, Yes: in percentage.
payers fairly, The plan
did not forgive anything, it simply abated
Mr. CURTIN I think # should be
Mr. KNUTHON. grield to Upe gentle-
tation, and for accomplishing ends other-
bobbing top es long as II 195 be und se
The average taxpayer is Interested to
serve in mind that if anyune gains un-
man from Texas.
wise prohibited by the Constitution. Any
A. policial football.
know how much more he la going to pay
75 percent of 60 assestment, which "
Mr. O'CONNOR. No: I am hat talk-
this year over 1242; that la, what parcent
transferred from the past year to the
or ID# Raml plan IL is the
Mr. MAHON, The report makes con-
worth-while revision of the tax laws must
small taxpayer. The large taspayer's
siderable reference to . comparison of
Include 6. restoration of the principle of
the prives.
more,
current year. Forsiving is When DOL la
will be taken care of by estate
the Income et, rather, the expenditures
taxation for revenue only. The Regub-
Mr. ENUTSON or course I would
Mr. KNUTSON. On an income of
absolved from bis ans and information
et wis
for the war effort by the people in Canada
lican members of the Ways and Meana
not accide my good friend of playing
$2,000 he pays $187.00 for 1943, That is
as well as his debta. I Expe to tar in
Congress long enough 50 that the faity
Mr. INUTSON. of course, whatever
and the United Kingdom and the people
Committer are pleased to support and
politics.
for a married men. Under the com-
Mr. O'CONNOR New, would the gen-
miltee tall be will pay only 8184 for 1944,
regarding the pay-ma-pou-go-plan may
benefits accrue will acctor proportion-
in the United States. n M pointed out
bring about this long-preded, mush-li-
unit nure to the small taspayer than
that for war purposes the United King-
be-desired tax revision, In A large neu-
tleman snawer my question?
a saving of $3.93. This does not include
percolate Into the minds of all Visa us
willing to see,
a the the taxpayer and that is the res-
dem will expend about $23,000,000.000 in
ure, the country's ability to maintain 8
Mr. KNUTSON. Yes: Il ell BORWET
the 1219 percent carry-over. Now we
Mr. O'CONNOR. Mr. Chairmen, will
nn there vas MI much opportion to it.
1944. and Canada will expend about $5.-
high level of national Innoitre in the port-
the gentlemen's question by withing one.
the entirman yuld?
D vas approached parety from a political
500,000,000 in 1944.
war period will depend. as truch upon
will take $5,000, Under present law be
will the persileman please 1vD the House
Mr. KNUTSON Yes,
the adoption of vise tax policies as upon)
pays 8063.35. Under the committee bill
what pear we escaped paying any taxes?
he pare 3936, plus the 12% percent
Mr. KNUTSON Igleld to the smile-
and
man from Montana.
Mr. MILLER of Connecticut Will the
Mr. MAHON. A much smaller expend-
any other factor.
Mr. O'CONNOR or come we DEVEC
Mr. O'CONNOR. What I trant to mi
gestivmen yidd?
Iture relatively speaking than our own
In eunclusion, let me my that there
carrs-over for 1044 and 1945.
excape payéng any taxes.
at, following through the cirrification
Mr KNUTSON. Eyleld to the gentle-
expenditore. Can the gentleman tell us
is no regal mad to financial independ-
Mr. DONDERO. What does he pay
Mr. ENUTEON Well, what is the dif-
under present law?
par from Cyppeticat.
whether or not the national tresime and
enre, either for the Government or for
ference whether the tax you pay this
question of the distinguished
Mr. MNUTSON Eight hundred and
vages have skyrocketed in Canada and
individuals. It can only be attained by
year la calind the 1942 tax or the 1043
now In the chair, I feel that lie FOR of
Mr MILLER of Congesticut This
la the United Kingdom in the last few
integrity, frugality, industry. and nod-
ninety-three dollars and ninety-five
$45,0,0 the entlemen has polated out in
erätinn. We must adopt these virtues
tax? Aa far as the Government la con-
clarified the sentleman's anover to BU
centa on $5,060; but all these details are
question which was taiher matured
the only forgivenem 1 have found in the
years as they have in the United
otreed, the Treasury will continue to
Ruml plan. They pay $45,000 more than
Mr. ENUTSON. I have no late un-
if we are to groid national and Individ-
lo the majority report While I had no
on your salary, also on your NO-
What I want to get at is to dear 10 the
formation, but, as I resail, when we had
usl bankrupter and change.
part In preparing the majority report, It
point and who pays the $5,040.000 in
the ram,
-
their salury year after year after year,
just as form as the Republic endures.
taxes la still to the good under the en-
My ENUTION. Yes, Impose some"
the 1943 revenue bill before the commit-
Mr. Chairman, I now steld to the gen-
is a very unful document, and I ellegest
tea it was testified that they had been
Uemen from New York (Mr. Real as
to the membership that they provide
tem we now have and under the Runi
day they will consider operating (fi) our
Mr. O'CONNOR I will tell you when
themesive with a copp ned preserve it.
lest docts so we will not have anything
able Lo hold the line, as the phrase is now
much time as be may desire.
the Ocvernment Total la when I do not
plan is still to the good in the beighton-
und, much better in Canada and in the
(Mr. REED of New York siked and vas
because It Is really . compendum of tax
earn anything. Tom I am forgiven the
beed of $5,003,000.
to with
Mr. MILLER of Under
United Kingdom than we have because
given permission to revise and extend his
infermation that could very whill be Used
tax which should have been paid when
Mr. KNUTSON How does the por
they pot a reiling on wages as well MS on
own remarks in the Racess.)
as a texibook in Has Muber institutions
lieman flaure that?
the Runi plan the would have paid
all commendities.
Mr. KEED of New York Mr. Chair-
I the earning something. and that la
of learning.
1900.000.
man, I want to make just this prelimi-
when the Government Town under the
Mr. OORE Mr. Chatrman, will the
Mr. O'CONHOR. He had $10,000.000
MI. ENUT8ON. Yes That la $ very
Mr. MAHON Then per dollar ex-
Rum/ plan.
income for the 3 years and para only
pended in Canada and to the Outhod
DATE statement. I canant reall whether
yield?
$5,045,000 in taxis,
comi point and I thank the gentleman.
Thronilliman's statement shows be has
Kinsdom they may have gotten more in
it was in is colleque on the floor er else-
Mr. ENUTSON. Why, you DAY every
Mr. KNUTSON, Certainly I will be
gind man, to yield to the distingraished gentle-
Mr. KNUTSON. What year daes be
production?
where, but there was same criticism al-
year that you tard something. That is
der and good understanding.
Mr. ENUTSON. Possibly en.
rected sgainst the members et the Ways
the brauty of the pay-us-we-earn plan,
not pay a tax?
Mr. MILLER of Connecticut. The
Mr. DONDERO, win the gentleman
and Means Committee in that the nam-
that when you do not earn, when the
Mr. GORE, 1 did not quite set the
Mr. O'CONNOR That le not Be
from Microsots should
people in thru whidom say, "Vim, we
yield?
bera of that committee, some 25 is num-
#intirman's to the question pro-
question.
nel WINTY about the fellow earnine
Mr. KNOTHON Briefly.
ber, utilized so much time that the
love pou ad much en want to keep you BE
provided by the gentleman from Mon-
Mr. ENUTSON. « certainly a The
$5,000,000.
Mr. DONDERO. Does the bill set. &
younger Members of the House fall to
home." then you do not have to pay
tans Mr. This taxpayer
Treasury la only interested in
Mr. BOWE I think at this late day
they are not interested in academic
I have learned about Int-
floor to the price of admission to theaters
get. an opportunity to speak on import-
any to Or If por should die, Mrs.
O'Canner vill not have to sull the old
who la paying $45,000 a year more than
below which there is mm tax - the tax
ast measures, and particularly such a
De varns had to earn how much this
questions.
Cireness,
family bonestend in order to pay Uncia
increase does not apply?
one -- this tax bill. That, I know, was
Bam last year's taxes
more? year In order to be obliged to pay $65,000
Mr. O'CONNOR My question is
Mr. KNUTSON. De not use the word
Mr. KNUTSON. No. The tax to now
made in good faith. and I have DO objes-
whether be Lai not etail 85,000,000 to the
Use the word "abate-
1 cent for each 10 centa or fraction there-
tion to it. 1 think there la much to be
Mr. OCONSOR New, will you go
Mr. ENUTBON $5,000,000.
good.
mail."
back and stiver the question I Baked
of. The bill fines the rate at 3 centa for
said in that respect, at least so for se I
you?
Mr. CORE What part of that 65,-
Mr. KNOTSON. No: of course be is
Mr. ROWE I think IL la applicable
each in double.
am personally concerned. I have -
045,000 Is taxes m the $5.000,000 be
not, because he will have paid just as
here The actroal of what we have given
Mr. DONDERO. That applies en all
deubtedly taken more time in debate
Mr. ENUTSON. I have answered It,
earned last part
but If the gentleman dors not under-
much this FEAT under the old plan or M
a what constitutes the surplus in income
admissions, whether is la 10 centa or 30
than I should have done un some of Items
stand It. I cannot help that
Mr. KNUTSON. Last year he would
would under the plant
that is gome to the Treasury.
bills in which 1 have tern intensely In-
centa?
have paid $4,499,000.
consequently the Treasury has list
Mr. ENUTSON. Yes, that is right.
and to which I have given a
Mr. DONDERO. Mr. Chairman, will
Mr. WICKERSHAM- will the gentle-
the gentleman yield?
Mr. GORE. I know, but what part of
mag yvia?
Mr. DONDERO. There has being some
great deal of study, so I shall endeavur
anything
this 000 la payment on his Innume
not to diend on this occasion.
Mr. KNUTSON, I Field.
of last rust
Mr. O'CONNOR. When the Treasury
Mr. KNUTSON. I girld to the genale-
opposition voiced to that provision, the
Mr. DONDERO. The gentleman has
starts to lose is when the depresdos
claim being made It punishes the poor
Mr. Chairman. more than 15 years
Mr. KNUTSON 8546,000 le the carry-
than from Oktahoma,
described to the House what happens to
Mr. WICKERSHAM. realize it in de-
man's diversion and some people think IS
have come and gene since Franklin D.
within and income crase: that is when
& man with n salary of $150,000, will
nver, belog one-half of the unabated
liability,
the Treasury starts losting carder the
is WIODE in principle.
Roosevell took na charge of the execu-
stred to et all the revenue passible, but
Rami blan.
I Seure in one instance they are going to
Mr. or ocurse, M the
Live branch of the Ouvernment, and M-
300 return to what the average Ameri-
can reselves, about three er four no Dve
Mr. GORE Then be has earned 010-
Mr. KNUTSON The Treasury will
gentleman from Oklahoma ao well
sumed responsibility for the fiscal affairs.
thousand and tall the House what his
001,000 and la paying 85,040,000 taxes?
Inne ema af this new tax. I refer ta the
lose nothing, but I suppose is will brind
pointed out, in the smaller communities
We have before the Bouse today another
little thesters because If one patron out
tax will be this soming year?
Mr. KNUTSON. No. out of the $5,000,-
the gentleman's heart to Cod That be a
that have been injured rather than
bill to raise revenue, the seventeenth, I
of five fails to ED you lose as puch as you
current when Die Income stops.
main. D seems to me that in the smaller
helped by war spending there has been
believe, since civilization began to func-
000 be earned last year be had to pay the
a big failing all in theater attendance,
tion in 1933.
Visatera they are aut going in for his-
10032
CONGRESSIONAL RECORD-HOUSE
NOVEMBER 24
CONGRESSIONAL RECORD-HOUSE
10033
No advocate ED immediate and -
1943
After a careful examination of the ma-
jerity report of the Ways and Means
of goversposetal expenditure by
prosch Lime to . belanced budget doning les
about under commissions and
not muched unit 1 years after the war
no Purther increase from this sourse,
las policy be such as to give some RD-
Committe, a most excellent report on
When we Were compt(Ded by the
and envid. Today the total volume of
saide from what may Ire realized - a Tit-
eurogement to venture capital. In my
considating departments and end
the bill por before u.s.
eliminating entravagation, to sommplish .
ceasity to harrow - -
will tas is atx time as great-
sult of the activieration of war produc-
opinion, there are endless possibilities
sonar the premi administration et being
saving of - Into than as persons In the nors
et Fromal Government
was financing, our Medicary credit had fac
did the trend la stall upwant. Up
tion.
for the development of new Indostries
the great seministration in all
already been stratched le billbarge
through the fliesi year 1940. Federal 20-
Mersover, is would MEM that the pres-
after the war If a wive tax pollip la pur-
butory B. is - administration that bee
precedented proportions and der Petern- 43-
mine never exceeded $6,000,000,000.
ent upper rate una normal emporate
rund. These Industries ean earlly pave
print borreo on emmieme an sop-
Mr. Chairman. the committes formula
not mly produced this modest revenue
that sources of islation tappy by
BIRP (hen, they have mounted by leape
profile-now 40 percent-cannol go
the way for an en of post-war pro-
namion. Bureaus and
commission and here bero -
bill but It had the further effect of caus-
point of virtual exhaustion. We bye the
and bounds partir through drastically
much higher. I have not forgoltan that
perity instead of & pol-war depression,
during the last World War, when Indi-
and is is to the Interest of the Govern-
talmed at the expense of 124
Ing the bureturiste to disgnage some
have reached the Mage where libe loss.
increased rates and Invered exemptions,
$13,000,000,000 not required for the
orable law of diminishing returns
end partis as . result of Incressed na-
vidual rates reached a maximum of 17
meal to ser that these Industries are
Mr. Chairman, I am sure that If
cludes further Crastic Immue in así- A.
Insume From 1040 to 1941, Fed-
percent the corporate income tax was
nurtured and developed The war has
Franklin D. Receivelt as a candidate
production of the war, ner needed to
the taxes, and where our chief Ite
eral Eax collections increased moderately
only 12 perrent-the explivalent of the
opened up new Imentiers in acience and
outa with propriety make with an BC-
carry on the necessary functions of ciril
Increased revenues must be taxe that to
from se $7,600,000,000. In
matimum normal rate on individuals.
Invention, and If the resource and indus-
cossition in 1932 against the Republican
government, much less to ayuander and
the fural year 1042 they rose to 12.-
Nor have I forgotten that in those days,
Party, without facts to support his M-
higher rales but on insteased nacional
to of our people are not unduly ham-
waste on useless and, to many Chatancer,
In the fiscal year 1943, just
end up to the time the New Deal philos-
pered by ID-advised Government policies
custion, am well within my rights and
socialistic schemes,
Income, where the tax Virring the
they julisped to $22.000.000,000.
opiny of tasation was given effect, receipt
of taxation and restraint me can look
fully justified by the facts to make the
Mr. Chairman, the task of reising
be Insurent by the clinipation of vane
While yea are all drapty nt
And ID Use current fiscal year. wo am
nition was given to the Eact that 4 car-
forward to the enjoyment of unparalizied
name securation accided the Ronsevill
revenue is an unpleasent and thankless
spenditift administration I would
une, but It la nonetheless ED all important
the tremendous Increases to TRSM in Use
informed. they will te over 41 bil-
persition was marely a collection at Indi-
proserity and improved living stand-
à seven-fold increase
viduals doing business in corporate form,
ants.
bestate to make this charge WESD It not
me, for without refenues the Ocern-
part few years, I dare my tint meny co-
vace 1940.
and that therefore, allowance should be
Defore paiving to other phases af the
for the fact that the majority in this
ment could not long exiss,
Expectally la this true at the prevent
Increase measured in tax dollars, Le
realize the actual estent of the
These figures express more clearly
made for the tax paid by the corpora-
tax problem. I should perhaps briefly
commillee report does not bestate to
than the reason why we must Et
Lion in assessing the shareholders, which
mention the matter of renegotiation of
Indict the Bogsevelt administration tur
time, when we are fighting a global war,
me give you is few Interesting Incts la
Usis connection:
dow III further lases. Yet
was done hy exempting dividends trom
war contration on which the Ways and
its extravagano and waste sur a Justin-
the total monetary commitments for
each time the administration has N-
the normal tax on individuals.
Means Committee has been conducting
ention for not viriding to MM Executive
which already asserente $330,000,000,000
tax- Pint, as regards the Individual -
seill propred a new tax nin, IS has
Now, ** not only will tas the corpure-
poblic hearings preparatory to proposing
demand for $10,500,200,00L
UT roughly the amount of our entire na-
gestet the amount of to previous -
ljon up to 49 persont on normal profise
certain revisions in the existing law.
It was not until Bon. Henry Morgen-
Bohal wealth. And the war la ALID far
In the fiscal year roding June 30,
1940-at which time our emergency 4-
que Than in 1942, Congress was asked
und up tax as persont on excess penillis
Prior to the enaciment of the excess-
thata Jr., Secretary of the Treasury, ND-
from being won, particularly in the Pa-
pared before the Ways and Means
eifle three of operations. Moreover,
feture program was being Instituted-
la nilm United and one-half billions. Last
under the bill. but we shall as what is
proñas EME in 1040. the unly restriction
for the request was for SEVED and a
left, when paid out in dividends as the
un war profils vas under the Vinson-
Committee on Detober 4. 1642, that our
the Federal Government su
we yel have to plan for post-war rehabil-
less than $200,000,000 annually from party
billings This year, the request
full normal and surtaix rates in the hands
Trammell ACC which limited the allow-
committee was made fully and officiality
Itation, which undoubtedly will add un-
email Incomes.
MI ralaed to tweive billions. them re-
of the sizckholders. Someday, I hope
able profit on naval vessels and planes.
aware ⑆ the magnitude of the revenue
loid tillinns to-the over-all cost.
dend to un and me-half billines. D.
we may get back to sound and defensible
When Congress passed the excela-profita-
mising task is would have to face. Il
la the current fistal year, the Federal
$1,300,000,000. The following year the receipts were
would seem that the order should have
principles in tasing individuals doing
tax law, a surpended the provider of
was then that Secretary Morgenthau
suggested that the committee bring eur
Government will spend $104,000,000,000,
brea reversed, and that M we approach
business in eurporate term. Despite the
the Vinico-Tramell Act as being un-
which is at the rate of nearly 80.000,000.-
200,000,000. the fiscal year 1942 they IDH) to N.
the point of tax exhaustion the address
exignncies of war. England bas socitinued
necessary. Lairr. there was addres as A
. revenue bill that would produce addi-
(lima) hurdens to to piled - should get
to adhere to the sound practice of treat-
rider to one of the appropriation bills a
tional revenue amounting to $10,500.000,-
DOG every ae days. Or this total, ninety-
In the fiscal year 1942, just timed, they
and less. instead of more and more.
me the corporate Income tax as . tax
measure known as the was contract re-
DOR. Purthermnre, the Societary FOL-
seven billions will en for var activities,
jumped to $7,000,000,000.
phasiced the fact that his would
two and seven tenths billions for Inter-
In the current fiscal year. ending theat
If twelve billions had bern added to
upon the sbareholder, retireted at the
negotiation law, providing for the None-
source. for which du allowance is made
reliation of war contracts where exoma
require an additional tax bardie on the
the cistimal debt, and the balance,
June 30, they are expected to be in the
1bs present Federal tax lead, as eig-
yourd by the administrativo, It would
in assissing the individual Income tax.
profits ware fuund. This law, M every
individual taxpayers of $0,500,000,000,
or todo and three tenths bullives for civil
neighborhood of $18,000,000,000. This
then have totaled fifty billions, or slight-
Last year. the Treasury asked far a 55-
Member here know, has given rise to
The fact that the tax of Indi-
functions. I wish to say, however, that
represents a 2,000 percent increase in
percent rate on normal resporate profils,
much controvery and disatisfaction.
Viduals has bera increased about 2,000
there in some dirpute as to this break-
Individual Intome tax maripts in above
IF Dear than half the comemplated our-
ay m the present fiscal year. Including
but Congress refused to no above 40 per-
particularly because of the lack of any
percent since 1940, or from $900,000.000
drun of these figures la view of the un-
years,
cent. There has, es you know, been con-
definite standards for the administra-
annually that year to 9 protable 318,-
required $13,000,000,000,
Let us now look at the corporate -
the les billints being collected by the
ture, in comparison:
Blate and local governments, this would
siderable for an allowance for
tion of the law. Most war contractors
000,000,000 in the current fixes) year end-
In the face of this artronomical expen-
taxe brought the total annual tax bur-
port-war receivention reserved. or the
ocem la feel that the law la unnecessary
Ins June 10, 1944. entered the committee
diture during the next 12 months, the
In the fiscal year 1940 the corpunitie
on in this country to sixty billions
desirability of such recerve there can
because DO percent of any excess profits
great concern en to the effect of adding
Treasury anticipates net fevenues from
income tax produced $950,000,000.
be de declare The Congresa has aiready
with DE taken under the excess-profiu-tax
$5,500,000,000 to the pretent tax load,
The nest year receipts increased to
Bowerer desirable it may be to abenrb
existing taxis of some forty-one billions.
given resognition to the principle of
law in ans event, and they further feel
$1,000,000,000.
move of the WAT cost currently. and
post-ear reserves in monetiro eno the
that the time spent in couse through the
Mr. Chairman, x call attention to the
The administration has proposed a
the come ume combat the threat of
first page of the majority report where
program et additional taxes which, had
In Us: fiscal your 1942 they were u.-
fullings inflation-and I would be the
exonta-profits us. 10 percial ed the les
ren-gotiation processings bas* actually
this statement appears:
Inc. to quarrel with the destrability of
being et aside for the use of the corpo-
heid up the war production effort. The
se approved 11, would increase revenues
In preparing this tax tid. TO enimina
to approximately fifty billions, or to
In se fiscal year 1943. fust clound they
objective-the fact is that se
ration in Line post-war period. While
was agenties, on the other hand. feel
has tora: given to the following face
roughly one-half the amount of the esti-
lave shout reached the saturation polot
this credit is all right - ENT as it goer,
that the renegotiation law la sound in
were $4,000,000,000. which Is value-
mated expenditures,
tially the amount eitimated to M lb
11 a net of such mognitude - so build
principle, though they admit there is
L The and for additional resente
in and must therefore De exceed-
2. The inflationary problem.
For many Peasons, it is desirable that
celved during the current fiscal you
by careful In piling on additional but-
up any appreciable amount for post-
room for Improvement in the adminis-
8. The present RAS burden.
We most currently as much of the essen-
This represents & little CYEF 400 percent
deux To go too far may result net unty
war industrial rebabilitation purposes.
trature machinery. They have con-
4. The becomity für simplifying the -
that was ext as CAD be done without
Increase in 4 years. However, when VI
Moreover, the credit gribi applies where
tended further that the function et
is the destruction of the great middle
vot lax splem.
dertroying our economic system. How-
the which in the way backbone of our
the corporation bei tax
keeping war tosta at a minimum cannet
Include the excess-profts tax receiple.
4. The pouthility for accountry by (ven-
ever there is une rircumatance which
liability, advices thousands ut other cor-
be accomplished under the excesa-
the percentage of increase to mult
towntry, but also to distroying (perative,
mental Rependitures.
requires colument, and I refer to the
greater. Collections from the excess-
porations not benefilled by the war will
profits-tax law, nor. SAP they supert, can
which is so necessary to the success of
neckless flacal policy of the pre-war pc-
profits tas have grown to $10,000,000.000
have an equal need for such reserves.
sarh a law provide effective incentives tu
D may cause some sperulation among
the was effort. Morenver, bulow must
the Members of the House as to the
rive The waste and extravagance of
annually since the tax was in
be his somethine to carry through the
No more important problem contrunts
war contractors to keep production at B
formula that was lated by the committee
the hut decade, with the resultant annu-
1946. This makes the total current car-
the Nation than the centrity of being
maximum and eists at a minimum. A
period following the ter-
all deficita and the pyramiding of the
minution of bostilities.
ready to provide peaceficie jobs for the
number of clarifying changes has been
in formulating the insure time before
persie tax burden approximately $14.
this body for consideration. There was
national debt. left the Nation Ill-pre-
000,000,000.
The committee thought It tosilvisable
millions who will be throwd out of war
made 60 as to eliminate some of the pres-
nothing in recent party publications to
The (ndividual income tax, along will
is increase taxes by any such Deure as
work with the cestation of hostilities, not
ent uncertainties and improve the ad-
pared for the trémendous financing
which the majority could turo for Is.
problem arising out of the war. Let DSE
the surporate income and
112.000.000,000, as requested by the ad-
to mention the millions of returning sel-
ministration of the law.
inimistration. The committee examined
diem and sallora who will be locking for-
Summing up the corporate-tax picture,
spiration and guidance as how best to
Tepest that despite mounting taxes from
taxes, are by for the largest pevenue -
the whole situation carefully, and then
ward in resuming their normal pursuits,
this bill does not ralas any substantial
finance the war, meet the problem of in-
1931 00, the deficite continued to Elle up
duceo in our entire tax system. maker
up $1 billions out of the total of 41 N/-
The kind of a corporate tax puller which
amount of additional revenue through
Astion, lessen the tax burden, and above
year after year because of the rapid In-
Blide provision for such as
Home in tases which will be collected de
the Congress adopts I know will have 6
bigter corporate rates. I believe that
all simplity the present tax entern I
trease in expenditures. When the Japs
termed practicable, kreping la mind the
am not violating the rules relating 5 dis-
struck their hlow at Pearl Harbor, se
year. In terms of percentare, PAY am
cardinal rule of ability to pay a well as
profound effect upon the shility of trust-
the insiviability of doing so wes non-
responsible for as percent of the Temas
ness and industry to provide these jobs
ceded by Mr. Randolph Paul, the Treax-
closizes made in an executive of
had experienced 11 straight years of
the dictum of Chief Justice Marshall
the committee when I reveal that atheng
operating the government "In the nd."
try's receipts.
that "the power to tax is the power to
when the war beem ends.
any tax adviser.
anoe ancient, musty, and long-orgiected
Under the revenue lass of the last
dellroy."
If No are to sunsed in materaining
It is obvious that if any large amount
New Deal campaign literature this magic
Think of 151 Eirven yesre of Uninter-
World War, the meet that the yours!
With the corporate DAN
. high level of employment and national
of additional taxes, ruch as su de-
formatis was found:
rupied deficit-financing. Beven years
Government collected la any not you
rate taised to 95 percent in the bill ta-
income in the post-war period, I firmaly
manded by the President, had been tm-
of annial tax Increases, without any KD-
PM $5,700,000,000, and the figure en
fore us, it seems clear that there can be
believe a to essential that our Pederal
possd and realized, the burden would
No. 16-1
10034
CONGRESSIONAL RECORD-HOUSE
CONGRESSIONAL RECORD-HOUSE
10035
NOVEMBER 24
1943
have bad to fall largely un the Individual
posid. Back in 1933 the Ways and Means
whether in the form of Encome
fa Treasury to work mus . tax progress
Divertment, which an Inevitably
there to be spent or distributed around
action no the part et the Congress. It
Committee resemmended to the Hours
the mereins year by yest. I would tant
to the different departments to spend as
is possibilities, not probabillies, that
or Imm.
manufacturers' sales tax, based on the
invo and then Insure that CUSTOMS of
value E ID predint the exact sime of our
they - AL What the Congreto cuant
should be taken care of by law by
M END MF the individual tas is
successful Canadian system, bill is was
enact is into law without resure Lu
there was no lenger and num
the Viess of those who are to be taxed for
pudget, but I know n. will be
to do, If that be true, Is to pass a. resolit-
Congress.
overwhelmingly defeated. Bloce that
when compared to the pre-
tich that the $13,000,500.500 and any
Mr. REED of New York. I concur 100
for In the Copital brackets,
time the miss tax has never been able
Didgement of the tespayme or
other money the departments aays ass
procept with the gentlemen from Midi-
We can bardly expect to take in
to unreamand the support of . majority
country, as to what M for the best interest et by
yat level
At (IM present time OUT national in-
fail to spend, or that is unnecessary for
lan for this resson: I believe that every
more than 30 cente all of every dellar
of the Wage and Mesins Committee, and
a man earna, which la the present mixi-
benre has not been included to any of
Inite resson for plantra the pare
Tounding fathers had a Vity 4d.
- is the highest in all history, yet
the prosecution of the war, should be
dollar that is spent by this Ocvernment
- vs have been able to raise in
turned back to the Treasury, and then
should In first appropriated and sp-
Pederal - um has been forty-one hil-
proved by this Congress.
income This means that whatever 15-
the more recent tax bills, nur in this CDs.
If they need any of that money later,
crease may have to be made in the Is-
IS has, however, been the subject of much
initiate revenue bills In the Home to
- If the national Income should
they should socue before the Congress
Mr. MICHENER, If that money was
tun will have to be in the middle and
discrimion.
Representatives whom everaben, - or
EMP productately after the est. the
or the proper committee of Congress and
not used for the purpose for which it
lower brackets, priodpally the latter, and
The argaments which have been most
give an seretinting of their Mewardship
maintenance of our present high taxes
make their case, and another appropri-
was appropriated for the Congress, then
we SHOULD to IN repida approanting the
evorally used sgainst the sales tax are
every the years. This Important Driver
limit EVEN there
the exicutive branch. The allmings of
OVER the poras was perpossively demises to
wild not produce anything like forty-
stion can be made to take care of IL.
IL la entirely wrong to have that motify
that Il falls fusviest on Chose with the
of with In other words, we will
Mr. ROWE Do I understand DOW,
transferred to the control of the Dated
One with any evneral In-
least income, and is defiationary in char-
yet to raise by taxation in the post-war
that the $13,000,500,000 of formerly enti-
Dureau or any other burrer to De used
crimise In in the tower and middle
acter, NIGOS a discurages consumption
the laster to unurp the functions of Cm-
petiod spough to cover not only the high
mitted dollars now reserve dollars?
if and when WOM individual in the
brockets is that a would have failen with
While it is perhaps true that the nales
STREET lo laying down tax printy is versity
unpaci - person who have net
tax IN thire burdeneume to the DOUT than
a part of the general brend dortne the
end of expendisures which W may then
Mr. REED of New York. Yes.
department might see für to - It. If
tenaßled from the war boam as adalnit
last dicade, and in my Opinium if 18 tips,
expert bill unn amortization et the na-
Mr. ROWE. 1 note further in today's
the money has net been expended for
to the well-to-do, this argument would
pocil debt as well. This is a problem
paper that the Secretary of the Treasury
the purpoies for which is was appropri-
be more valid if the sales 16% were the
time if was stupped.
Dow who Dave NO I resilte,
in put - strato on the insentity of our
proposes a $10,000,000,000 post-war tank.
ated then is should revers to the Trail-
al chine that there 19 . tremendous
entr means of reising revenue for the
I receit that In 1941, wism the We
and Means Committee WAS mm/demy
bell minds, B can test be solved by en-
Is there anything in this tax bill being
any
of encess purchasing power in
support of the Government. But as long
5 maintain national insome
considered today in the way of funds
Mr. REED of New York. The gentia-
the hands of burse of the periode
M D. to employed in connection with pro-
the $3.000,000,000 tax b0), FL FIN
at a bight level in the post-war period:
to be contributed in that direction?
man LA absolutely right
inday, endicating that the point of tax
gramive income tassi, the ability-to-pay
under the appreciments that " with
increasing the tax level from
the burden of taxation which
Mr. REED of New York. No: Unre a
Mr. CASE. I think this la a matter
exhavation has nat bea resches En all
principle is preserved.
werld be required to keep the post-var
nething that has anything to do wish
that does concern the Congress and that
cases, The problem, livrever. is EN reach
One difficulty strol the Federal Giv-
non to $13,000,000,000. The DINE Prac,
in bulance would be sheelutely
that We will hear all about that later
1 trank statement nn is should be made.
the so-cailed inflationary purchasing
emergt consting a sales tax at this
however, WE found that If had activity
crathing in severity. Waste. extrata-
in the
I happened to ralise in the committee
person without cruntrying these who are
late dase, CFED an there had been no other
been ralsed to $18,000,000,000. Apon
para. and boondeggling must be
Mr. CASE Mr. Chairman, will the
the same question the gentleman from
streeds struegling woder the evisting tax
last year, when we were proputing is
slappel. The LAE outlook for the tu-
gentleman yield?
New York asked. whither AIT" not the
objection. in that the State thas largely
Ind There are millioni of persons who
prempted this firld. Moreever, they
$T.000,000,000 beil, THE were givro to e
deretand that it would nise the viz Imi
lot b nnt a They pleasant one to am-
Mr. REED of New York. yield te the
committee should nut take action to have
niber have DM had en Increase in In-
gentleman from South Dakota.
that muner resert to the Treasury.
have varying rates and exemptions, and
name Once the war or have actually eat-
varying methods of collection. For the
to $33,000,000,005. Yes early this year,
Trevent that in under to minimize the
Mr. CASE In regard to the $13,000-
There vu some support for It. 1 felt
Seve a distraied locume. They do not
Federal Government at this time to Im-
the President Informed tas in frie boden
burden 45 much as possible, it is impera-
000,000, the War Department budget offi-
that way about It mywelf. However, the
have the especify le pay increased
pote a sales THE with different rates and
thestage that the tax level had actually
been increased to $53,000,000,002.
time that every effort be made to elimi-
cer, General Richards, was prepared to
pledae to come back to the committee
tates - war weekers and others whole
exemptions, end a different method of
pain state dollar et wasteful and extray-
say to us when we had our hearing on
Trad not made ments as a matter of
Encomes have doubled, trebled, and per-
collection, probably would have caused
The problem of Government financing
and (proding Herritolore, congres-
this matter that they would at over to
somehody's opinion, и is B. matter of tex-
hage evin quadrupted. Pvr example, the
a desl of confusion.
la one which will ontinue to plane the
gm) efferta at ecunomy have rentered
the Dudget Bursau approximately B10,-
timons, a matter of record, that before
man who has received $5,000 income
It has been estimated that = would re-
Congress and the Executive Branch to
800.000,000 that would be In s budget re-
any part of that $13,000,000,005 will be
and nonmilitary spending. The
over 1. period of years findi today that
some une to come. As long M the was
serve, to be drawn only by permission of
spent the Committee on Appropriations
quire . real also tax of 10 percent,
the but GOW come to serutinte more
will be consulted. The bodget officer of
his actual purchasine power has been
wilbest exemptions, to produce $5.000,-
lasts. we wiD dirubtless be spending less
and more carefully the huge appropria-
the Budget Bureata
considerably refund Unrough mounting
000.000 of revenue Il food were -
of billions more annually than ore DAD
DATE being made for war purposed. or
In the nearings we conducted last week
the Wat Department, General Richards,
tous and bigher pun for everything
empled, the Field of € 10 percent retail
policibly raise by fazation. In EMI mean-
(Tw more than three Hundred billions al-
for some 3 days we went into the total
Berretary Patterson, and General Mr-
be buys. Monnver, he has Exed com-
time, the national delit will. continue to
may authorized by Congress. only one-
field et expenditures further, and as -
Nartay. the Assistant Chief of Staff, all
milments which must by met, such as
ain tax would be only $3,000,000,000,
pile up. When the national delo Hucher
result of that they agreed to set over to
gate their solemn testimony that that
This even If e als lax were enseted,
third has actually been spent. If It
Insurance premiums, pay-
the Treasury's first proposal of $12.000,-
$300,000,000,000 as soupos likets. the In-
Minuid be found that only 10 permit of
the budget reserve an additional $2,200.-
money wodd net be expended without
minta, and to on By contrad, his
000,000, or FITH ta request for $10.500,-
terest burden name will be ES much
the total appropriations were unnects-
000.000. However, some of - were not
comine before the Committee on Appro-
nighte, who as a redit of the war has
nost to DRY the entire expenses of the
NOT. a savings of thirty-three billions
satisfied that that should stay exactly
pristions and asking for it again.
reserved an Increase in Income from
$60,000 in additional revenue would have
mid be made. Aller the last World
in the status of & budget name without
Mr. MICHENER If that is true, the
FIRST far from realization
Government In the extrament pre-end
period, without reference to and pro-
Wer is was found that a consider-
some control of n by Congress so we
proper way to do it would be to have
$2,000 to $5.000, and who does Pack, have
In this connection, I feel 1 cuent to
exacted from the budget officer of the
action by Congress rather than to accept
the flixid and ultim long-etanding com-
make some refervare to the fact that the
Vision for the retirement of the pein-
she portion of the funds appropriated
tad actually been warted. and there is
War Department and the several heeds
the promise of Department representa-
milments, 18 milorine new-tound
cipal,
despite the relatively hish 14829 be has
leng-standing differences between the
DI rysion in believe that the present war
of the branches of the War Department
tives to a subcommittee.
to para
administration and the Congress on tax
Pollowing the last World War, - N°
tired the debt at the rate of $1,000,000.000
with le no exception. The congresional
who appeared before - the explicit (late-
Mr. REED of New York. Absolutely,
In the case of a many of the racise
Difity have made the task of the Ways
economy committee, headed by Benator
ment-and is is & part of the record usu-
and not only in writing but make it A
and Means Committee most difficult in
annually for 10 years, Then the arpres-
BYER which to largely responsible for the
many on the subject-that name of the
reselution of Congross
lasse, the products on which they are
levied are on longer atadable, such as
theme already terms times. In recent
ston put a stop to further curtiviests
Even If are are able to Increase the am-
economies in Federal spending already
$13,000,000.000 will be removed from the
Mr. CASE It to in writing M a. mat-
passenger cara, electric refrigeratory. and
Tears the Treasury has presented à de-
failed tax program to Congress, and
titation rate to 83.000.000,000 annually
effected, loss accomplished much m this
budget reserve in any amount without
let of record before the committee.
after the present war, st will take a hun-
coming to the War Department subcom-
Although much of the testiment before
redire, In other CASH, such or masuline,
when Cologress has not seen fit to EO
request without in any was Interfering
dred years En pay eff the debt.
with the war stort, To the extent that
mitter of the Cummittee on Appropria-
as was of a military nature and (if the
consumption is restricted, This in a
number of instances, receipts have fallen
along the administration has used Its
tions and also getting the sanction of that
recurd. this matter is a part of the
When we contemplate their per pail-
minomies in milliary spending are pos-
off in the face of increased rates In the
TME preparande machine to try to over-
record.
war Budget will have to provide a mini-
the task of financing the var in
cummittee.
cue of practically all of the Fitche livin,
concressional opposition Con-
mum of perhaps ten billion for debt NPH
complified.
I may say that that was a enncession
Mr. REED of New York I do not care
the nin have been Increased seals and
area the been held up to scorn and ridi-
Mr. ROWE "Mr. Chairman, will the
that WM wun by the committee en the
anything about the testimony.
cule, and has been of shifting
les, it. becomes apparent that se will
express statement made in the commit-
Mr. CASE. Further, there are AGGIN
sealn ilince they were first Imposed
the tax burden from corporations and
never see a reduction of the out of por-
gentleman yield?
ernment to anything Take Uie p(V-war
Mr. REED of New York. yield to the
les that without surve such reservation
items in that $13,000,000,000 which it
The Federal estate tax also úffers little
apportunity for Increased revenue Ence
the wealthy to the backs et the masses,
emileman from Ohio.
entre of M would Feet obligated to Intro-
might be important to have available
or we in Compress get used to
level, even comparable to that in the
the ratas are already rather high, reach-
Mr. ROWE. I notice in today's paper
duce the very type de resolution the
relating to the reduction us certain proj-
heyday of New Deal 3r-
the a maximum of 70 Dervent The
unfounded criticisms of this kind, but It
is nnt a Viry wholmome situation, and la
sides providing for debt service. me may
that Under Secretary at War Pattersin
sentleman from New York suggests. It
ects which are related to military strat-
will be undersited, of entroe, that appro-
N.T. If se had instited upon getting
Treasury turged AND Miller rates last
have to maintain a buge army, and
mikes the statement that where military
year. but Constress refund to abserve
pristion expires June 30. 1044. and the
that resolution, If I and ope or two
wholly unwarrabled. In the first place,
air force to police the world, which will
aftairs ATE concerned they do not cotaid-
others who supported - in the matter
any increase,
the Treasury has no business having a
Exid tax program. n is the duty of the
cost many billions annually. We will
E the cost in connection with the Canol
unspent funda sutomatically yovert ta the
had Instited 8 getting the resolution,
State existing sotarces of faxation
House of Representatives, under the Con-
have to provide horpitalization and dit-
Inject for oil up in Canada. That IIT.-
offered Tittle possibility of relaing sub-
Treasury Mr. MICHENER, Mr. Chairman, will
we would net have been able to have
ability compensation for the cursive
000.000 is & put of the $13,000,000,000 to
stantial additional revenue, practically
stitution, to originate Invenue bills. The
of the war. We will have to make hast
youth the gentleman referred. that is to
the exatleman yield?
Impounded as much DE $13,000,000,000.
the only poiential secure of DPW revenue
is retarned UT that will not be used?
Mr. REED of New York. 1 yield te the
Mr. REED of New York. Congres
Bertive branch if mindy rapposed to
administer the laws that Congress en-
appropriations for post-war
as yet untapped is the sales tax. For
Uon, We will undoubtedly be calied
Mr. REED of New York. As 1 under-
gentleman from Michigan.
can impound whatever portion of she
acts, It is perfectly proper for the Bec-
Mr. MICHINER I do not believe the
$13,000,000,000 it dorma wise
years Compres has loyed with the Idea
upon to centinue financial aid for part-
Mand the $13,000,000,000 up to this time
of etacting such a leg. true the admin-
may of the Treasury to make recom-
mendations to Congress when requested,
war recovery in other comines. All
perhaps cannot be constrate strictly and
statement made by the from
Mr. MICHENER. Would it not be
Intration has always been bitterly up-
these costa will be superimental upno
South Dakota justifies as additionalive
better to impound US and know what 19
Ingally as a saving, Secause le Le still
but in my mind it is improper for the
the regular operating expendisures of
10036
CONGRESSIONAL RECORD-HOUSE
CONGRESSIONAL RECORD-HOUSE
10037
NOVEMBER 24
1943
have impounded rather than to transfer
that amount. He wanted. auf I have said,
not of Laxes. We feel. however, that
Confirmation of this statement can be
of South American Indians. Alm. a
to - servey or burvau $13,000,000,000
to put on $6,500,000,000 additional to the
to not guilty, sit.
Mr. plead REED of New Purk, I VII be
gre mased for all that we can affend
had if the Appropriations Committee will
Guide to Official Publications of lath
to be used If, when, and how the bureau
tax Boad of individuals, which would have
WP M pay. NoW. as a malter of fact. eun-
force from the proper officials a detailed
America. A Law Guide, and Central
middle see 611
hit the white-cellar people, When Mr.
Mr. CASE Il IF tmpounded. It is
Eccion, of the Pederal Reserve, appeared
passing him when this tax Ell visa The -
Mr. 12 MONTIONEY. I would the to
AMERICAN the demand of nne department
aroqui at what these agents of the Oct-
American Legal Bludies. We are paying
MT $16,000,000,000 and another depart-
emment NEW doing in those tuantries,
for & nover of enliections of Latin
not left to the Budget Bureau alone.
before our committee his proposal wm
comes back Without proloting (If
mem (xt $12.000.000,000 and another une
and to what they are committing the
American muste. The read la replete
Mr. MICHENER It lanot impounded
$20,000,000.0 increase in taxes. We are
have a from the Benale, Hode
rained in freeze of the they
too 1 thank that after all
taxpayers of this Nation.
with things of this aurt.
by law, yet Congress has apparently loss
now showing a retrenchment of $13.-
control over IL That u what I am son-
000.000.000, provided 1t can be returned
for that there, will n be formal to laz
the - must realize that this to -
Mr. Chairman, the Cuparess approved
Mr. Chairman, I am indebled or the
like in & confirmence I you
reserver modest demand, even with your
the origmal Lend-Lease Act. It has since
Benator from Nebraska,
carted about
to the general fund of the Treasury.
WAYS to are what the sentiment is In would Qu
Insuranciation tax. I would to. if
repewed the act for an additional a years,
the Nonorable Hear BUTLER for the
Mr. CASE The Congress, through the
How many more billions of dollars the
course, to APP many items in the tax
This las given to the President of the
things I am discussing.
Appropriations Committee, has recep-
spendthrifts are pouring into rat holes
and Means Committee
United States the authority to spend the
Mr. CURTIS. Mr. Chairman, will the
fured central of $13.001.000,000 uver
right now in 10 be assertained by future
express the Motiment of the Ways
Mr. REZD of New York I care
till remmed.
Mr. ELLSWORTH. Possibly I should
billions provided under the law to any
sentisman yisid?
which It did not have control
Investigation.
Mr. HINSHAW. Will the contirman
Means Committee as have out the and
explain my comment. The objection
way be sees nt in bis opmion, such
Mr. WOODRUFF of Michigan. Tyweld.
Mr. MICHENER Tar Appropor-
del I twice and 1 think the one that is
expenditure will cuntribute to our na-
Mr. CURTIE. I think it should be
tions Commitiee less no emilority in :
you'd?
er of divination far know What the finale 20v.
held by the people out there, 18 not an
timal defense. This is the only restric>
mentioned that the Senator will file .
extrate ADS of the money. Al med il
Mr. REED of New York. Yrs.
Finance Committee my de. ! under.
16 paying a tax but It is 60
tim placed upon the Chief Executive in
very lengthy and detailed report in the
can looke only e promise.
Mr. HINSHAW. I would like to know
stand that low of the more disk.
to the bank en which the tax
this regard. Certainls when Congree
Genate in . day or two. and the entire
Man SUMMER of Mr. Chair-
from the gentleman from Bouth Dakota
glished Birn In the other boly en lo
In Take, for example, lumber:
approved the legislation and the more
expense of this trip covering serve 20,000
will line yield?
(Mr. Cast! whether or not the Army
the 3 percent tax no the tumber we ship
than $70.000,000,000 which have been
miles, did not cost the taxpayers any-
Mr. REED of New York I risté te the
came in voluntarily and disgorged the
DI b, and Whether they will oftemps
favor, of course, of tresine the toa when
$13,000,000,000 or whether it was
put it in this bill I do tio( by This 6)
amount to an average of about en cents
either directly appropriated, allerated to
thing. and was undertaken by the Bm-
from Illinois
I sould Inform the profession. I as
ser mousand foet. The lumber freight
the lend-lesse fund through Executive
stor individually.
Me SUMNER of Illinnts I DOLVE
drazged que of them.
tax the competitive areas to much less.
under, If expended for ships and arms
Mr. WOODRUFF of Michigan I am
have that the Individual mestre tas 10-
Mr CASE The true cridit for the OLT-
speak only for myself, MI far is that -
The freight us should be on 0 unit
which have been contributed et made
very happy to have that injected Into
email are poice to bring in $104.000
Inco should en to the hoys in Africa and
concerned. but from all the mean
percratage.
available ta our allies and other natires,
my remarks. I hope every Member of
we
Italy, in Alaska and Australis who have
have been able tu examine as to the
Mr. need of New York. I no use
it naturally expected that the President
the House and certainly every Member
Mr. REED el New York The resson
made these asvings possible, The credit
amount of Name that Day bren built
your point and I da put blame you far
would make expenditures from the fund
of the Benate WID carefully seruttaise the
for Use increase in that the normal the
for the mechanica of the saving should
up and the Decessite to accomplus that
only for purposes which would directly
report that the Sensior will file with the
EXPIRE IR
had to be increased to implement what
protably he divided between the War De-
function at this time, Mary to no
Mr. ELLSWORTH. I just wanted to
and substantially contribute to Une win-
Becate, 1 am sure H will all find is
bights enlightening
- are $ the tax Il does
partment. the budeet officer of the Orn-
for building up t. larger reserve. All Il
make il clear that IN is out the amount
nine of this war. 1 believe netiber the
pick - . THE payable by: it B very
that sur. Brindler General Richards,
does is to print bonds and to DE Item
of the 10% That is not the point 10-
Congress nor the country would have
This spiredid pubbe official traveled
and the contribution The War Depart-
in $ bar and go out and apend the Studen
given any measure of approval to this
genco miles in the cumirier la the south
world
GURINED of Il to
I think IS is better to leave the
Mr. HEED of New York. I under-
act If is had luen known that the money
of as and shile the gathered informa-
prot came a in response to a letter
you ser suice & very serimus thing
In the banks,
which we must borrow on the credit of
time which should be in the of
which the chairmen of the committee
stand.
has, Ter Iso reunge. Ani, we pasard
vrite for the committee last summer
Mr. MONRONET. To: réntimas
The CHAIRMAN. The time of the
the taxpayers for this purpose, and
every citizen of the United Butes In
6. bui yearsday with staredy mouth
does not mean we shauld be eiven e -
pentieman from New York (Mr. Rasal
which the taxpajers must eventually due
an article in the December of the
therty after the repear The letter was
voin has civerride veto-and de may not
predicied upon the reduction in the
time of this gie! Import no .
Res expired.
dren an their pocketa to pay, sogether
Reader's Digest the Benston has die-
luve mouth Túlta to override it whre e
repurt to study. does not
with the interest thereon. until thow
claired libe shocking conditions existing
notres bank-6 that to give $1.000.000,00
armed form All the pentleman knowa,
Mr. KNUTBON. Mr. Chairman, 1 yield
Mr. REED of New York As I as 1
debta are finally retired-and DD the
la these countries and the faninatio
at the Ume the Was Department appro-
Mich time as lue may destre to the gentir-
formed person. whether - Member of
fengtbe to which the administration
worth of substition chiefly for the purpose
DIII ⑉ prepered last May, It
caraned spesk for the majority of the
man from Michigan [Mr. Wongsure).
Mr. WOODRUFF of Michigan. Mr.
Congress or private citizen, can believe
would en III tasme our people and spend-
of subsidining the Different pront) bills
TM planned to have an army of 8,260,000
Ways and Means Committee I 01
want to attempt to special für tick miss-
the Ways and Meana Com-
we can retire in the DEST four generations
the their hard-earned maney.
of the WILLE-collar class, which is the
Wiy class you attack. Here you RUE 12
men st the end of the fiscal year. Sub-
esquintly plans sere curtailed so that we
High on that question, Jun etat the
miller, because of its refusal to provide
the enorthous debt me have pliot on our
To those who criticize the Ways and
- mar situatary where you ned this
additional revenue of ten and a half bil-
petple-if they had had the slightest
Means Committee for refusing to pila
contaily plan en army of 7.700,000 men.
atton might be at the time, whether
necessary to do it et Inring a in 1 do del
surpleton that this Government would
upus the already uverburdened taxpay-
méhagerial and white-critar das You
merbt to keep up And you
That reducting of 360,000 men automati-
Home of dollars in the bill we have before
tallr to the committee and to
know. I do not like to ser: a tax BE
na, has been editorially eastigated by cer-
establish W. P. A. projects and other
en of this eximitry an additional $10.-
tring in this detrease, It seving le me
the chairman of the committee the pos-
muddled with a big question of that
sain entisors af the metropolitan press.
boondoggline adhilies all over Central
500,800,000 at this time. while things such
of elime saving, not merely In the
character, I am not in enntred et IL
Ordinarily, editors of such publications
and South America, and probable all
as I have-mentioned, together with all
that in entirely incressives were oliz Idea
Mr. MONRONEY. li MEDI En that
are well informed and their opinions are
over other sertions of the world.
the other things which Benstor Butler
of dans. profit and the means st getting things
pay of those but to the equip-
Hew many Members of this House. for
bas described. as well as the probable
ment and material that would be pro-
would be very bad legislative previder
worthy of consideration by the public.
similar activities the administration tal
Mr. REED of Now York, When you
That would not give the Howe a change
However, in this instance, the one to
Instance, know that we are now com-
look at the whole piciure, in arder to ENC
vided for them Test partictlar pliase
to express 10 true views (ii) this and ing-
mitted to spending In the next 3 years in
enginging in all over the world, I com-
rid et this objectionable Victory
w for about $2,000,000.000
sins I refer apparently are yalding to
in the money that is reraptured. That
Inlate no we should on a miller of lhat
the importunities of the Secretary of the
Central and South American republics
mend . careful reading of the splentid
Importance.
Treasury and other members of the ad-
$5,000,000.000 for every imaginable thing,
article by the distinguished gentleman
tag it had to be worked out MR. a math-
emailtal basis n. does time in a livie
lesk however, to & Türther investigation of
Mr. REED et No York 21 world aci
not one of which will In the elightest
from
revenue, DUE It la not wi grest total-
the appropriations made last June on
ministration, and doing so without
the beita of lbs changed military altra-
be the first time that another mitter If
knowledge of many facts which this ad-
degree contribute to the early of
Certainly, Mr. Chairman, something
quence to the Extremal FUD of
time. the improvement of the situation
cumistration is ouncealing from the pub-
our arms and bring paace to this world?
should be done abrut mich funtastie ex-
attached to a lat bill.
How many Members of the House know
penditures
in Tiew of the $6,500,000.000 which the
with the conquering of the subma-
Mr. ELLSWORTH will the
lie, and which cannot be justified upon
man yisid?
aty erounds whatsoever I believe is is
that the national budgets of 20 Central
Mr. CURTIA Will the gentleman
Treasury might put on individuals
Miss SUMNER of Illinots Do you
rines DE BE least e reduction of their
and South American countries in 1941
yield further?
effectiveness, with the result that when
Mr. REED of New York Yes
almost imanimously agreed that when
our midiers and nations are Behting on
totaled only $1,047,000,0001 One Latin
Mr. WOODRUFF of Mishigan. 1
mean to ay three Increases make no dif-
ference to jwa penenally, but was just
the War Department made Its resurt to
Mr. ELLSWORTH. : would tike, by
baille fronts all over the world, when we
American editor said. -$6,000,000,000.
yield.
replace the Vietury tax?
w a week agn they Droposed impounding
$10,343,000,500 That was increased
fore this bill passel, to make egain
are also providing money, food, and all
There ATF 120,000,000 people in Latin
Mr. CURTIE. That article is in the
Mr. REED of New York That is true,
resarding the 2 peroint us on true
types of military aupplies to our allies,
America. That is $50 aplece. If our
CONGRESSIONAL RECORD today.
fost to replace the Victory tax.
$2,200,000,000 in a total of $13,100,000,000
that every expenditure of the Govern-
friendship were actually for sale, $50
Mr. WOODRUFF of Michigan. I
transportation. I estne Inc the for
Mr. CARLSON of Kanda, will the
as H result of the bearings the commit-
West and that taa being 95 a percentant
would not be enough: but if we would sell
thank the gentleman.
too conducted last week.
mest should be closely and critically
gentirman ricid?
basis rather than a unit basis acie M .
If, 830 would be too much." It is known
Certainiz Congres should promptly
Mr. HINSHAW, Does not the gentle-
scarned by the Congress. and that ND-
Mr. REED of New York I yirld for
tariff barrier on certain of sur products
that we have set up in Latin America
amend the Lend-Lesse Adt and take
propriations should be provided enty for
a Quantion
Mr. REED of New York. That is 20
the things which are directif needed
W. P. A.%. N. Y. A.'s. and P. E. A.'s. and
from the President the power be now
man think the War Department la to be
Mr. CARLSON or We did the
feetly natural. I am not an
to bring victory to our arma at the BST-
the spending of this six billiens de in the
bss which be is so shamisfully abwang.
peal the earned-income credit, which
mones? complimented for bringing in that
body for It, but I have yet to tind -
- possible moment,
hands of a number of agencies of the
and place that power in the bands of
W/ ed to complify the tax RENNED, and
Mr. CASE Yes: I do,
body who is truly fond of ans If you
United States Government. It is under-
some scency nnt. as profligate in spend-
that dons increase taxes tomewher And
Mr. MONTIONEY. Will the gentle-
had sat day after day Instenant to people
I think we all have been heartos atories
stood there are more than 12,000 proj-
log the taxpayers' minnes se the Presi-
also we removed the deductives from
who appeared before us-fine. spientid,
coming from Central and Berath Ameri-
man vieta?
neta of different types, For example, this
dent has proved himself to be I com-
taxes and exclases from personal income,
patriotic people, seme representing ein-
tan republica, - well as other parta of
motiry la being spent to stock the stresms
mend my remarks and Benalur BUTLER'S
That is where we picked It up.
Mr. REED of New York. I yield,
porations and some partnernhips and
the world, to the effent that those eman-
and takes of Venezuela with game Bah.
splendid artícle to the Foreign Affates
Mr. REED of New York, To answer
Mr. MONRONEY. The gentleman
some Individuals-I think if poi
Itter sire being averrua with agents of
Right DOW there is a Benery enlasion in
Committee el this House, and appeal to
the lady from Illipois 5. little further, you
Inies New York la the of the mest dis-
Unguished and scholarly members on
examine the testimeny ymu will not a
this Covernment who are ommitting
Mesica We paid for in tists surves ID the
that committee to report an amendment
nearly every instance, each et those et
little people to expenditures of-muney to
seesn adjacent tal Panama. We are
to the set which will accomplish this.
must recail the President wanted to In-
crease individual Incime taxes five times
Committee. the minority side of the Ways and Means
an estent that will abock the people of
this country when the facta are known.
financing the preparation of a banditeck
Purther, I commend to the Appropria-
name before as and they said "We KUM
you must have manes and VP are la
10038
CONGRESSIONAL RECORD-HOUSE
NOVEMBER
CONGRESSIONAL RECORD-HOUSE
10039
1943
times Committee that when the nest
Incorporated in the present MILL, I will
appropriations bill more from that com-
047 to the gentleman from Ohio,
taxes will amount to Prim
The incréases in the various
within that it would be to reptal
the minimum Iss plan which, a stated
tog an income of I than 42,000 geta
Vistory CARE and to supplant it with
before supplanta and takes the place of
& smaller personal family examption?
mitive, they resever to the Treasury the
Mr. LEWIS of Ohio. How can we Jus-
more still available in the lend-leaso
use the taxes incorporated in the present
an from additional the amount of $100,000.00
ibr parte versable sex which would pro-
the Victory lat.
Mr. JENKINS. Oh, no These et-
fund, and that bereafter when addi-
bill in the face of 167
tional billions are fequested far the per-
The estimated total mores
Increase in postal takes
a about the same amount of money,
You will see trom the report filed by
emptions stay the same En all If they are
tax bill from all sources will be It) Visa
are The Treasury recommended the abolish-
the committee that there is . short form
assessed under the name plan. If, as I
Mr. WOODRUFF of Michigan, I am
of the Victure tax. If this bad been
table which la applicable to this mini-
have said, & person with $2,000 theams
peine, that the members of the committee
frank to say that in view of the recent
secure trum the spending authority an
disclosures made by the Benator from
in 300,000. the This to not Buch of an income R.M.
(ine DE 0.000,000 laxpayers would have been
SUB tax just as there ear . shart farm
and is married with 3 children. lose
ury which called for en Increase in time.
Ence of the demands of the Trass
table applicable to the Visiory tax, and
wiD have a married man's exemption of
stemized account of the things Inr which
Nebreska I am someshat in doubt myself
named of MU tax responsibility. This
the sprading authority programs to use
sill provider for the repeal of the Victure
so forth, Under this short form the min-
$1,200 and $350 for each thile under
Ad to the admissbility of it.
the fund, soil then held that authority
tion of $10,500,000,000.
Mr. ROWE. Mr. Chairman, win the
The Ways and Means Commine
us and as I have already suggested .
imum tas will not be 429.40 00 I have Dg-
the regular Incume-tax plan. But if he
to M-101 account for IM expenditures.
gentleman yield?
medication of what we call a minimum
uned it but it will be $29 M you will see at
comes under the minimum risn he will
Purther, there should he there must be,
in its deliberations decided that #
the bottom of the chart I cite this to
have a married man's exemption of STATE
Mr. WOODRUFF of Michigan. I yield.
be impossible to ratao the
recommended by the Treasury, acted
us Int the briefly seplain this chart You
show that the Exputes in the shott form
and $100 for each child These CRETAP-
some check put upon reckins, eastrful.
Mr. ROWE. is Il-not a fact that the
charts are net figured out exactly to the
tions will be the same if be has A $3,000
fabtastic spending of the public moneya
tax bill is to pay the accrual of the debt
commities proceeded to write la IND the
will MIP that this chart ta applicable to
If from the very Beginning of the pro-
that bas been caused by the very extrar-
try, regardless nf the demande of the Treas. to
. married man. with two children. who
penny but they are usually figures that
Income or a $1.500
POT world emergency we had limited DMT
partir $7,100 per year. In the left hand
are rounded out and in scine - a tax-
The CHAIRMAN. The time of the
BENDER to which you are referring?
expenditores tu only those things which
Mr. WOODRUFF of Michigan. There
lat I campute the taxes that this awa
payer loses & few exta and in another
eentleman has expired.
were absolutely Nr the eivil
It had been my purpose to take 4 Ue
case be will gain . les rents In this
Mr. KNUTSON. Mr. Chairman, I
to not any question about IL
would owe under the regular income-tax
administration and the prosecution of
The CHAIRMAN The time of the
question if renegotiation of expiracts
num. the texpayer could easily flgure out
yield the gentleman 10 additional
I/W de 11 will apply when this bill 18
Isle own taxes according to the short form
mindles.
the war. PVML then the public debe world
sentirman from Michigan has espired.
before 1 went into mmy of the Certr In-
turns of the tax bill, I wanted la Tible
wind. You are all familiar with the
have teen für greater then evula at the
tast that recent tax bills have carried
and you and that be would and 40 centa
Mr. COOPER. will the gentioman
unr have two concelled, A+ IL is, God
(Mr. DISNEY addressed the Commit-
out of respect for the distinguished m.
thereby and in addition be would sine
yald)
tea Tim remarks will appear hereafter
abot we call A "sbort form." Millions
None Imm bive many additional bil-
in the Appendix
Ueman from Oklahoma \Mr, Dearey
of taxpayers in the lower brackets par
escape the trouble of having to go to a
Mr. JENKINS, I yirld to the gentio-
lions of érit have bmn besond upon our
for a discussion of the inconclusive -
las expirt to make DUE his tax return.
man from Tennessee.
their 14345 on the short form. For those
people, and how mean additional sen-
Mr. KNUTSON. Mr. Chairman, I
withins to pay their taxes la that way
You will also notice that 1 have shown
Mr. COOPER. If I caught the gentle-
tures of this bill would be in the was No
erntions will be tased in order to per the
10 minutes to the gentleman from
discussion, which he has just citiesi
an assessed dedoction of 6 percent is
by this chart what the Victory tax would
man's question correctly, what the gen-
incomed évill ensendered by such BC-
Ohlo Mr.
But the piece boys have brought -
amount In the case in point you will
be fir this name individual under the
tleman wants to know is whether or not
livilles. Certainly, Mr. Chairman, theme
assice that the assumed deduction of 4
present lew. It would be $38.00.
the exemption for the minimum tax and
Mr. JENKINE Mr. Chairman. I wish
this blackboard thart which I expected
responités für this police must have
to compliment the Membership on their
percenti will amount to 8120.
Bumming this whole mainer up there-
Ent the (ncome tax are the name Is that
to use In commetion. with them brw
liven with visions of
features of the tax bill, and from the in-
fore, you will see that in the case that
the point?
attendance this afternoin, With a very
Tue married exemption runa the same
Hon else esp BY for the uster
important boliday Impeoding, and the
terest that you appear to by manifesting
I have taken for (Dultration, the man
Mr. CURTIS Yes.
to this bill as in the present last which
Mr. COOPER. They are and Live same.
dispard of the wellare of our tax-
discuntion of what everybody knows is .
in Utis chari, 1 think tital 1 had better
$1.200. The same deduction is allowed
would be required to pay & tax of 629,
more public
very any subject. I Unink you do well to
change my planned couns end discuss
which to the tax under the short form,
The exemptions for income-tax purposes
for depondents in this new bill sa in the
are $500 for a single person and $1.300,
Mr. Chairman had eur eritical editors
eive such a fine attendance, and such
one of these importan; intervations to
present law. In this aupposed OMB. the
because under this hill we are consider-
for married persons, with 8330 for each
Bom Informed R$ they should have been,
five attention, I indulge the hope Unit
this present bell, 1 hope that I may be
deduction for two chüdren will be 1700.
tos today the taxpayer must pay a. min-
had proper publicity been given tax the
although I speak exiscoperaneously that
able to have 6. copy of this chart
The total of these deductions or you will
imum tax If it ezceeda stat his tax
dependent, The minimum lax, which
does nos apply to anybody who la subject
crack-brained policy of - world-wide
[ may be (Avored with a explinuance of
in my remarks in the a that :
- amount to $2.020. Prom this you
would be under the regular Income-tax
to an income tax. the exemption for the
promus of and W. P. 4.
your allenting.
you are at all impresant with DI you nay
can Me that the deductions amount to
computation. In other words, & taxpayer
minimum tax is 8500 for A single person
they would have diricted their sbefta at
Every tas will is a difficult une. We
be able to take reference the in tn the
more than the income and there would
should fellow the short-form computa-
and $100 for married persona instead of
those responsible and in that DAY have
have come to the place in our plans of
Recorn. I think there la no letter NET
be no tax if the partne were computed
tion made under the minimum-tax law
$1,200. and $100 for dependenta instead
contributed to 6 resion to some degree
taxation that causes as to stop, look and
to understand the complication of &
uniter the regular Income tax computs-
but If he 15 not satisfied with that crim-
of $350.
of sanity to the expenditure of the Lak
listen. We are now daggering under the
tax bill than by the time of Strustrations
In other words, this taxpayer
potation he may compute his tains under
Mr. JENKING. His question was M
money,
most culumal deht that every afficted any
on a blackboard. We use 1 blackbourt
would, if he were to follow what = call
the regular Income-tax formulas, But
I understoof it. wisther or net there
The conditions I have divised to-
Nation and we are increasing that debt
in the discussions in our committee que
the regular income-tax plan, have no
be will be required to pay under which-
was any difference between the exemp-
getter with the surrenant to the Treas-
at the rate of dollars a
frequently, and we find them to be a
inmove as to DAS. But he is not going
ever of these two formulas will produce
tions as the income went up. There la
ury of the thirteen billions which the War
day. I am not brind of this tax bill but
great advantage in explaining compli.
to exape a tax under this minimum tax
the larget tax.
no difference between the exemptions as
Department turned tack the other day,
paint the way to nave other and greater
I strail vote for c because se cannot in
cated tratisactions.
plan any more than be would under the
You will notice from this chart that
the means go up. If be decides to pay
them treatul times throw up our hands
Regular theome TAX married sit 2
Victory-tax plan.
the Victory tax computed under the pres-
his tax under the regular tax bis
amounts by recovering to the control of
and reture to de anything to meet these
children)
Num les - lum to the securd trux
ent law in the same kind of . case M
comption is sase per child and $1,300 as
the Appropriations Committee the unex-
obligations although we know that there
Gross Income
42.00
which a captioned "Minimum tax." We
that would pay a tax of $38.50.
bis marital exemption. This in tire same
pended balance in the letid-lease fund.
has been Day and almost eriminal tiegli-
Assumed deduction et e pc-
use the Name eartings Bluitration at the
Osnerally speaking the minimum Lax
regardies whether bis gruss income is
When Mils has been done we will End WI.
ent
endorasts lb connection with these
Marr exemption
live find bot. which is . group income
WID be 3 little lower than the Victory tax
by that process will have reduced our
$2,000 or $3,000.
debta This tax bill da
1.00
Dependenta deduction child-
of 42,000. We allow the same assumed
bai in come cases it might not work cot
Mr. CURTIS. No CDE pays the mini-
expenditures to the point where no
difficult because se are scrätching and
red, 8250 -
1
deduction of e perrant, which 39 $120,
this way for the minimum tax has been
man tax who would be nable for the
greater taxes upon our people will be
necessary, and that the proding bill pro-
scraping in every direction to NO effort
LIA
This is supposed to cever the deductions
set. up to take the place of the Victory
inome tax.
to get all the taxes we tan without im-
of the sterage person for church and
TAX as nearly as possible trut to relieve
Mr. JENKINS. I forgot to tell you
Tides a sufficiens amount nt Billing at
this time.
pairing and throwing our encomic
No tax
charitable contributions. and su forth.
the taxpayer of many of the complica-
about this further feature. Whenever a
structure out of
Minimum the (married mill, 2 minim)
Nov wa c/me to the marital exemption
tions and inconveniences that have tal-
man makes this computation, if 14 da-
Mr. Chairman, in order that the Mem-
This bill Civides Italf into four very
under the minimum tax. This is only
lowed with the Viciory tax.
velops be is tazable under either plan he
ben may have all the facts presented
Circuss
NO.00
must DAT under that plan which carries
by the distinguished Senatar from No-
distinctive parts,
FTM. If it were for . single man IL
Pint. Tax PO personal Incomes,
Automat deduction of e per-
Mr. CURTIS Will the gentleman
would be $500, We must not confuse
brasks, I ask unanimous consent to in-
-
4535
visid?
the greater LAE. He cannot ges out of
nert In the Ramo as this point bis
Second, Tax on corporations.
Married exemption
M
this evemptico with the regular esemp-
Mr. JENKINE I Vield to the gentle-
paying under the minimum plan just be-
Third Bacise taxes
Dependenta deductions a child-
time in the regular income tax compule-
man from Nebraska.
name be may not own 5. tax under the
article in the current lange of the
Pourth. Renegotiation of contracts.
ren. eno each
20
tion, This ST00 exemption is allowed
Reader's Direct heretatore referred to.
The tax on personal incomes has been
LA
very in the minimum-tax plan. The
Mr. CUBTIS. In If true that an mái-
regular income-tas plan. Whichever
Mr. LEWIS of Ohio. Mr. Chairman,
delection for dependent châdren is also
vidual with an Income of $2,500 would
one is the granter of the two compute-
will the centleman yeld?
increased and this bill will produce
-
have less personal and family exemptimes
tions be must scrept.
$154,800,000 additional lass, These
Tatable
different in this minimum-tax plan. In
taxes will come principally from an in-
BUSO lasable at 1 germent, #23 40
than an Individual In the same family
Mr. CURTIB. Be para the greater?
Mr. WOODRUPP of Michigan. 1 yisid.
this case the deduction allowed is $100
Mr. LEWIS of Ohio, I would like to
fur each child or a total of $200 in this
status who had ao Income of $3,1007
Mr. JENKINS. The gentleman Le
Minimum tax under short from ell
Unite in the nurmal tas from 6 percent
Mr. JENEINS. No. All (ASPAYERS of
right. Be pays the greater,
Mk the gentleman how we can justify
Victory tax under part bw.
to 10 percent and from an increase that
have, You will see that the total of there
letring additional taxes upon the people
wer result from the cancellation In the
This tax bill has one very
exemptions and deductions amount to
like marital status with Has dependenta
Mr. Chairmafi, DOW 1 want to talk
of this sountry at this time la face et the
11.029. That sum deducted from $2,000
have the name exemption If they are
about renegutiation and I cannot do It
things the gentleman has Just related
future of what is termed as warned In-
new feature about It. You will great
rome credit
that A year or two SED we pained a 16th
leases the Inalance of 1900, which in mub-
assessed under the same plan, regardlem
adequately la a few minutes. Never be-
providing for the lavy of the Vision las
sees to the minimum tax. The entatesum
of how much their taxable income may
fore en the floor of this House have we
report? and as contained in Senator BUTLER'S
The tax on corporations will be in-
be There la a difference it they are
had a complete discussion of renegotia-
This Victory tas resched all online and
TAX in this case therefore would be $29.40.
Mr. WOODBUFF of Michigan. There
creased, and le la estimated that an addi-
tional $516,000,000 will be collected.
wase earners who earned but the
Bo a CAD be seen that from this chart
aparted under different plans, They are
Ush. is a comparatively
would be DU possible justification for
levying greater taxes upon the people of
This comes principally from the increase
815 & week. The Victory tas ml jump
under the regular Income-tax law this
allowed as 200 under upe plan and $700
new propostion from & legislative stand-
parents, whole Income has been consid-
under anrther.
puint. D. first name up for rensideration
this country at this lime than the taxes
of the excess-profite tax from 90 percent
to be very complex and 15-
ared, would be relieved from any LARER
Mr. CORTIS, I will state IL another
. uttle more than n. year MD. We have
to 05 percent.
cult to administer and a was decided BY
the taxing authorities and by your -
way. 1s It true that the individual bar-
never even had G. true consideration of
but under this bill we ceme forward with
10040
CONGRESSIONAL RECORD-HOUSE
NOVEMBER 21
CONGRESSIONAL RECORD-HOUSE
10041
visions should like la have seen outlited.
1948
16 in the Ways and Means Committee
until this year. This la & legislative mat-
And Lhere were some provisiona that I
And would est no more nother
quick and be else Tita money would Fire wushed
ammarise, the can go to
ought to be permitted to take advantage
very first there has term much duem-
thought would have strengthened the bill
Board to review the Entime of lbs
of this Ise If be wents to do so.
sinn of to the manner in which the rent-
ter that did not ariginate in the House.
The Sensie added an smindment onto
greatly that 1 and others who agreed
take when he Mini to be permised
B. House bill. The central idea in the
with or were not able to have included.
bis case UD with Washington be No
Investigation the and the can - to the tax
Mr. GRANT of Indiana Mr. Chair-
gotiation law VMS better administered by
- if be in not with the
man, will the gentlezian yield?
the departments. and there bas been
renegotiation saw was find furnished by
If anytody should ask you what la the
admonisted that be would le for
Borrd's certifient. Let me any to you that
Mr. JENKINS. I gield 10 the sentle-
pressure for its repeal.
à Member of the House, and the Idea Was
main fault with this bill I think you
in Washington. And as a fact 1 Virg
simily (be Investigators and the Board
man frum Indians.
The Interest which the Committee on
then taken up in the Simile and an
should say to them that the main fault
works than three who quilty
those who came to Washlogton Unink fame
DATE stakmed to the situation and there
Mr. GRANT of Indiana. Will refer-
Navil Affairs has always had in the 15-
was address to House legis-
in that e still gives los much discretion-
tion, It was the gentivman representing
ary power to those who are to carry exp
law. to the Inctics of would-be offere of the
bir bm a decided improvement in their
ence to the right of appeal de DOTO to
panding prescirement program of the
autride toward the performance of their
the Court of Tur Appeals, 1 commend
Have, and the responsibility which "
& Midwestern State who fird proposed
the renegotialisms. We attempted many
That le about the way Dorg diming
in . courtents and just manner.
the subormittee for writing that por
have necessarily assumed for that pro-
the Ides. 1 refer to lbs from
times to write into the All strong and
do not make this statement as = partime 1
people. It was a national digrace,
There is me feature of this bill that my
vision into the bill; but on the further
gram, naturally esused un to be avare
South Dekota (Mr) CARE). Be B the resi
unsmhigungs language that would com-
not triend the gentlemen from Okla-
matter of which the gentleman speaks,
of these discussione and this pressure.
author be is the man who furnished the
pd fair dealing 00 the part of three car-
fins cerms et thought out of which this
rring on these renegotiations best we were
all, of the members of the Ways
Republican. I know that many, if not
- (Mr. Dont) touched lightly,
to - the gravest emimion in the bill
We eufududed that the questions which
the a a WITH important matter. I think
as prevented to the House la the faijure
had artice were MP grave as to require
program tax given. Bince this matter
thearted and checkmated by them who
that he and I NETTE on it completely.
to my In no uncertain terms that the
an investization by Into renegotiation,
has never been adequative discussed la
had brought down upon their heads the
Mesna Committee on both tide 4th and
with me. I have brard many of
again to the matter of the unron-
bill shall not apply to contracts that were
and its administration by the Navy De-
this How is is unfortunate that we must
anathemas et No many sorvity aggrieved
attentionality of the retroactive features
made and the goods delivered under it
partment and the sther departments
crowd D. so Taxt What do we
Americans the had been unjustry in-
express Chemselves I want to give mái
of 154 present law, AN I have terretore
before April 28, 1942, because the gentle-
which were given responsibility for the
mean by nt contracts?
posed upon. 1 am not defending any
to them and to others who Witz able
stated the present law west into effect ⑉
man, who is so able and distingulabed
operation of the law. We made . are
We mean that in 1942 Curstress macted
full study of this, and held lengUra hast-
thiering contractor who might have
to come right our in their own them
and American citizenship to ansert them.
the 20th of April 1942. The Bupreme
lawyer, has just sald that is M plainly
legislation that provides that In CRIN
Court has repeatedly held that contracto
uncomstitutional as tothise cases. Some
Inp. at which representatives of the
been defrauding the Obversment. I
where the Government tas made a 030-
think such men should be made to dia-
neives and say, "This Ching must 11(g)
Now we are trying to stop R. Tn the
treate property rights that cannot be
of these days somebody is going into
Navy Department and of the dther agen-
truet for the preduction al insterials or
end we provide a mart review, Mart
vidaied by retroactive provisions of lique
court and Usis whole Using la going to
clas, as well as a cross untion of bost-
and should be punished criminally
which the Government neided a
If positife.- I am unly interested tn non-
passed. The anh amend-
be declared unomittitational, wishout a
ness, testified. Subsequently, the com-
carre un the and that In name there and
ing a man who contracted epenty with
of these who complained WERE
ant of the Constitution provides that
separation of that part before the effec-
miller filed A report with the House. in
excellative profiss coming to the contractor
for . sours review of some kind, Wins
property cannot be taken except by dun
Uve date of the law, and chase and con-
which all of the questions which had
of submittracion the Government muld
the Government be governed or trrated
openly by the
we provide in this bill is bel. perfect tu
promit of Saw. What is due process of
fusion will fullew.
been ruised were thorought explared.
reneguliate meh contracts with the por-
Now let us - what we propose to do
It is a great step in the right direttis
se is not yet in this country property
Mr. JEMKINE. I agree absolutaly with
The commities print of this report was
pose of respuring como of these ex-
remive profits We BEF. all ta favor at
by way of amending this law under which
We provide that a central feded of In
determined by buresurrate. That la
what the gentleman says. Arrogance
made available to the excibin of the
provide time millicosire but we must
an trusch Injustice has been dope. In the
members be net up. These = the
and tyranny carried - by buresurrata
Ways and Means Committee prior to the
Brat place we establish A cut-uff date be-
to be selected from the departments et
strictly a Indictal function and 11 to for
the cuarta to determine and 1 that
under the guise of patrintism is not safe
time that that committee's (TE)
take these profits lealtr and monding
Fund which this renegntiation business
the Government which enter Into the
Unine nuresserate act as though they
and net for the best interests of the
the same subject began.
to the Constitution
contracts, I preferred that they De civil-
Here to A provision of Lhe law livel bas
lage from among businessive and that
DIC the Supreme Court, but I think this
country.
The Ways and Means Committee, in
cannot run These fellows cannot run
en forever, This bill under consider-
Dourt will uphold such . long line of
The CHAIRMAN. The time of the
the report which la now before the House,
been the base of much circlusion and
stinn provider that no rennectiation
they be appointed by the Preddier Bu
Matrious decisions that have been
gentleman from Ohio bas expired.
came to three general conductora with
I think much unjust and Birgat actions,
" was throught best since the was le -
(Mr. JENKING asked and was given
respect to renegotiation. n concluded,
Give attention 45 1 mad:
shall be had on contracts entered into
handed down 8 this question.
aller the end of the war.
. temporary board that fl. be
Personally, I should like to and this bill
permission to revise and estend his 20-
first, that the law should be continued,
(6) This (c) shall y applicable
Another provision oz this bill tends to
much as the board is new set. - Theye
marks in the Record)
with amendments, until the termination
la will end sobsonments
ent of with April 28. 1942. Dut what
that time of these on the present
Mr. DOUGHTON. Mr. Chairman, I
of hostilities. With this our committee
- and to all contrate NOÉ submittacts
curb the activities of these energatic em-
fave Unise renegntiation authorités
yield 10 minutes to the distinguished
is to agreement. After a thorough ex-
- werein if son WHOD con-
Illen, I relee to the providen which
will be reappointed. They should to
dene? They have taken millions and
tracts or submitted embain .
cleaned out, This bill provides that this
millions of dollars out of people Me-
gentleman from Georgia TMr. Veneral.
emination of the question. we came to
the m mosplum classe, - ni - pr-
rains the limit Tram $100,000 to $500,000.
board net tip rules of procedure "D that
(Mr. VINSON of Occrgis niked and
the conclusion that remegnitiation plays
ment pursuant to mile or subjec-
This will permit name of the little fellows
gally and unconstitationally. Some of
to escape. It will let most of the little
the public may know what to expet
those whom I think are among the
was given permission to revise and ex-
EXT Important a part in the obtaining of
TM 249 prior 5 Agent 28, 1942
The teard should do this at noce and
tend his remarks en the Recount
the articles of was at fair prints
These who sought to enforce the re-
contractors out Although the depart-
chief perpetrators sat before us in our
notify every contractor of the rights
ments It fini indicated their approval
committee and acknowledged that the
Mr. VINSON of Gemgis. Mr. Chair-
to the public the repail would the unthink-
nectiation law procended to remesotiale
of this change I understand that they
under these renrgotiation proveding
might have done an. The have taken
man, I want to take this opportunity to
able fee the duration of the war.
contracta which sentaiged no rebertia-
how see that some will eseape their
If this la done contracters may the
millions and millions of dollars from
pay tribute to the dislinguisted chair-
Becond, the Ways and Means Commit-
know their ORD rights and will loss
man of the Ways and Means Committe.
les concluded that there la just ground
Mon claums and contracta on which the
rights of the purlies had all been estab-
dutcher and wish this provision were
contractors. Butte by renegiriation
that they are not bound by the
our beloves friend the gentlemen from
for complaint about the existine las and
Itshed tefore the law was
omitted. Personally I was net strnng
and name to agreement This raines
North Carolina (Mr. and to
Its administration, particularly - ap-
who came to are them. This board vi
for this change for I feel that anying
a service question. Shall we speak un
passed, They nought to vinlate con-
Also be charged under this law with 5a
end member of that great committee.
plied to the small contractor. As one of
trants daly entered Inte before the law
who has been unjestly enriched should
heldly and compel restitution because of
for their fair and Intelligent approach to
the amendments designed to relieve the
duty of hearing aggraved
under which they were set up as a board
pay up regardies of whether the amount
the question of constitutionality or shall
who are not with the declaren
the important question of renegottation
cour of such complaint. the Was and
of his contract was $100,000 nr $500,000.
- EIFO to the aggrieved parties the right
and the equitable manner in which is has
Means Committee has resermended that
or group to de rensgntiating. I main-
I support this change because I feel it 18
of the inspectora. This board is expected
to appeal, B we would take the course
tain that this was unovestitutional and
that right and Justice would Cartate we
been hundled, from the standpetnt of
- amendment the adopted comptime
best to play safe against thom who
to deal justly and La supposit to back
absolutaly informable.
have shown & disposition to be unfair.
that Congress expects that the (LAC-
both the Government and the contractor.
from renegotiation contractors show
would income all those who have born
Why do an bled Koother
chamber proceedings of the past -
The great ethairman and his able com-
annual renegotiable sales do not exced
One of the must military provistens or
this renegotiated to demand refunds.
mitter are entitled to the thanks of the
$500,000. We too, felt that some hard-
flon law? We have this law of lad Fear.
net be parried on in the foure This
this new bill is that provision which neta
Beg sime many of them have signal
House for basing presented to us a great-
ship cases had occurred. but we felt that
I will tell por why we need 12. Because
board has 6 great opportunity a releis
up . Tair sourt review, Ben your life,
suppliment settlements probably the best
Itemif. A strong board imbued with 6
ly Improved statute dealing with renego-
a recurrence of them could be prevented
B bu benn administered en shamefully,
when these no-called renegotiators went
púry would be to side-step the consition
It has been little abort of n. national dis-
Name of fairness could carry this unit
tiation. Cunflicting views were recon-
by . more extensive use by the depart-
into a contractor's office and said they
tistal question and permit all these con-
arace the WAY the law has loes admin-
on to the satisfaction of the contractori
dist. They have done a good job under
ments of their powers under the law to
tracters to appeal their cases if they vie
istered. To what do I allude, 200 MA?
with going to negotiate, about all they
most difficult and . care-
exempt by administrative action onn-
and to the financial benefit of the 00-
to do se. That would include three who
What did they do to call for such e earti-
would da would Der to find our what the
eriment If they clean house and on-
have retued and paid A: will as those
ful analysis of the bill will readily cause
tracis which were nut susceptible of
gatien from me? For days and days,
businessmen's bankbook showed and
who have not settled or been pensen-
anyone who studies # to cunclude that
experire contracts. rather than by statu-
Vinne the contractors and the punue that
before uur committee, Ane American
then they proceeded to demand about
Vatent Someune might say "That men
is protects the Government and at the
tory exemption. While this recommen-
they want to be fair most all of I
citizens from all over the Nation, non-
all be had Eridence before our com-
same tite in fair to the contractor.
datim of the Ways and Misso Commit-
reneguitation matters will be diposit by
aught to stick to his agreement" 1 ay
tractors and businessmen, came in and
mittle and information that has come
them and no further appeal sill te máin
"na" He ought not to be compelled to
The Committee en Naral Affairs, M
tae was disapproved by . majority of the
pound met before us their chmplaints
to us Individually will convince any fair-
by the contractors.
stick to his agreement, because he had THE
the Ways cod Menns Committee has gell-
Maral Affairs Commitire, I feel that и
erously noted in sta report, has been euro-
should be accepted in the interests of
against the arrogance and the trranny
Binded Bag that threats upen and COP-
Charge to know his rights and because
en Wire made in many Cases and that
Per fear that the Board will ml we
of theme individuals who sought to carry
the Date and conciliatory attitude as
lifer here is his neighbor with the came
served for many years with the problem
harmony. While a is not exactly what
on these renegoliations. Out of that has
many men paid out millions of dollars
kind of of contract who has net get boen
of controlling profils on ⑉ contracts.
W favored, its purpose 15 pud and is
one this new proposal. We here pro-
without knowing how the renegotiators
the task requires, the has -
vided in this bill that the sectived party
represtiated That nelgibor la going to
This led to & serise of public
should be effective in prevention hard-
based their demands. Under the old law
bearings, which disclosed buse war
ship to smaller contractors.
pore to acound the law of last year. This
may carry Isis case to the Court of Tall
or the tenefit of the provisions of this
bill before you la far from perfect; it a
profits aiready belor made on was con-
The minority report of the Ways and
the contractor had no relief. Be had Du
recourse and when he Miked for a bill
Appeals for a review. This will
new law. The other man should have the
who chance. I say to you that that man
tracts only a few months after Pearl
Messo Committee goes much further
not Bearly sur good as 1 would like to
of particulars as to Why be was, being
then bear the matter de DOVO, D the
have it, but as the best we can do under
whe was renegotisted, figuratively at the
Harbor, and finally resulted in Cangress
however, in its findings as to the hard-
the eircumstances. In It are some pro-
required to pay a large Him of money, be
yers would say. That means the of
point of 5 gun, ought to have his day
esseting the renegulistion law in an ef-
ships imposed on contractors by resego-
the told that he had better pay and pay
court would hear 11. all arer from IN
fort to enntrel such profits. From the
listion than do the majority reports of
beginning.
of freedom, his day to court. and hn
No. III-4
Regraded Unclassified
10042
CONGRESSIONAL RECORD-HOUSE
NOVEMBER 24.
CONGRESSIONAL RECORD-HOUSE
10042
1943
ellber the Naval Affairs Committee or
that that review will take. Accordingig,
I urge that the Water and Meins Com-
for the part of Congress to make
está by the shipping industry per ship,
and allorated end unallocated, or - be
that the thester tax has tem rained 104
the Wase and Means Commitare, or, in
faci, than the minority report of our
milter's recommendation to this respect
net As time Member of the Roue
tinn, post-war reconversion in
with one to its name, has been ruming
stated, committed end uncomitted,
peront. WIII Unle tax be paid by the
from I to . persont.
That amount at the current rate of et-
ORDETS of moving-pécisure have them-
committee. The minurity report of the
be adopted.
mean my vote to IN
Warn and Mesica Contruttes
The report of the Ways and Means
D
The CHAIRMAN, The time of the
penditure of $7,000,000,000 per month
entres or by the people who buy the so-
rentleman has expired.
ww to carry the Army and Havy For up-
licknis?
The institute before bolts M no-
Committee, in its third general conclu>
5
pista WIER instances where time administer-
in then 11 should be done by
Mr. DOUGHTON. I yield 5 minotes
ward of a months. In my estimation
Mr. DINGELL It will be paid hy the
cien, recommended that certain changes
tag the respiration law have been arrigant,
in the law should be made to make it
e - protirman from Michigan DMr.
that amount of money plant up abread of
purchaser of the admission tickets. I
gb-banded, and BFFD tyrannical in desling
the bill, and not be
the spenders encouraged loosenna. It
might any in was originally proposed at
more worksble and equitable. Thus It.
with moveries and The
report. Apart from this DAB
present Mr. DINGELL Mr. Chairman and
encouraged the purchase of the entire
200 perment, but the committee out is in
provers prior 12am have in a number of
recomends an amendment requiring
Institutions, less whome They have da-
the filing by all contractors of financial
ands fald down in the committee's bell
tion, I favor the adoption of the thans.
members of the committee, I em not
eximon production, so a will stated in
two, However, the tax a expected to be
to take very much time in évelling
the nawspapers. IL encouraged the pur-
paid by the purchasers of the Uckets.
eximinated M between contractors,
information with the Board, Our com-
mitlee also urged such an amendment,
also recommended that the function to
The Ways and Mosta Committee
- the bill except to my I shall vote for
these of the entire pack. It
Mr. MANEFIELD of Montans. Dues
allowing DOB . protesties than go-
other VIMI the - or similar circum-
#: Under the the tall
encouraged the expenditure of $12,000,-
the estimitive feel that this La guine to
finding that it was necessary to the -
renegotiation should be ominited - If
consitutes the bet effort of the commit-
000 for the Pertaarm Building, when
Increase the revenue considerably?
- Alex they have Laid dures. direct
clent operation of the law.
sud Impline, in vor DI - the submis-
The report of the Ways and Meana
true new board, rather than in the de-
partnerate themselves, Our committee,
jan. It II not my bill: 18 la not the bill
we in Consteins allowed but $32,000,-
Mr. DINOELL We were quite estis-
itm of POLITACION are subcritrations tu
in considering the problem, reconnized
of MY individual Member. I do not
BOD. It ensuraged the construction of
thes that that would not injure the min-
Use findings. No nww nt that decisions
Committee, as well BE our report, cnn-
until II to necessarily the majority or
27 bridges pedr the Pentagon Building:
nues: that there would be no diminish-
by the bas been proitted. Commission
cluded that It was only equitable that
of have bei bacamed
the desirability of having e uniformity
OF placenty siu, I think If to the -
the construction of 40 miles of readit; the
me returns. and that the industry. under
the contractor should be Informed as Le
the facta upon which the determination
of approach on the pari at all engaged
prite sott of the committee. and under
obliteration of une or two lakes in me
the circumstances, rould well stand the
set their war work invelved with by have
in We felt that this all-
the the best that can be
apot out there and creating B pew lake
Increase.
be to go the promo
at excessive profita is made, and of the
ready fluid been attained by the volum-
and al une present time. I thought poo-
tn another aprit. n also encouraged the
Mr. MANSFIELD of Montana I,was
cody to be preo . - the end
reasons why the Board came to the can-
through et REDUCIAN su themseires
clusies that It did. The proposed bill
tary and informal coondination which
the till misht extend & little bejond
alteration of the entire northeastern
thinking of the people who pay this tax.
I am net - familiar with the record
the departments in Penegatta.
the are which et is expected It. will
section of the State of Virginia to con-
Dos the gentleman think that unis will
would require the Board, upon the re-
titin had achieved. I: was our thought
partion with this project, and is en-
discourage attendance and bring about
latore the Ways and Means Committes
quest of the contractor, to furnish euch
A statement to him. The absence of such
that the creation of a formal Joins board
produce, but that was not possible. and
BY time did nut prevail, As . canse-
coursed such local practice as to cause
less tas receipts from that
- perhaps I should be I - familiar.
however, with the whole record of the
R. requirement time one of the principal
would do no more than formalize AG del-
renaement which already existed. : ME
quitic the but is S. little short of what
in Michigan recently the sale of $1.400-
Mr. DIRGELL 1 think I animered the
I thought was proper. I advocated. as
nee worth of standard tools which were
genürman that there will be DU decrease
institutions before the Navel Affairs Crim-
debects to the oristoal law. and 1 think
no real objection to the creation by Mai-
sold M junie for $40,000 and then per-
in the vultime of revenues.
mitter. When the minority regort of
1% important that this defect be cured
you recall, saving half and mising half
life of much a board, difice une alreads
mitted them same people to all back
Mr. COOPER. will the
the Win and Means Cinsimitiee eage
new by the promot adopting of this no-
of what the Treasury requested. But
that the record of our relative la re-
unimendation.
exass by the voluntary action et the a.
here we have & bill of upward of $2,000.-
these standard toola to the Government.
yiski?
plair with informaty at the character B-
partiments. And since the botrd M to 3
The CHAIRMAN. The time of the
Mr. DINGELL I yiziá
Under the old lew. there was no fixed
$00,000 and I still Usink, even according
gentleman has expired.
Mr. COOPER My in that
dirated, R is entirely runtrary to the
the wishin which the departments were
companed of persons selected by the
to present-day calculations, $1,000,000.-
required to end a renegntiation proceed-
heads of the procurement Afficies to
no MI an awful lot of money, especially
Mr. DINOELL I aux for 5 additional
the increase to revenue is estimated at
farte Members of our committee chade
whom the board's powers of refegitis.
= when you tack it en to what the tax-
minutes.
about $163,000,000,
# point inquiring of withouses who ap-
ins once It had beve begun. It rould
time may be delegated, the proposed M-
Mr. DOUGHTON. I gield 0 additional
Mr. DINGELL I thank the gentle-
poured as te line mander in which they
ou on indefinitely. This seemed be es
payer LA expected ta contribute alreads.
Mard DIED trialed top the
unfair and we requiremend that come
renarment preserves the dow relation.
This to an additional amount and will
inimules to the gestleman from Mich-
man, and I gield now to the gentlemant
ship between procurement and
from Arkansas.
Without exception, the Wilnesses who
must that ultimately the taxpayers of
loan.
limitation be placed in the law, The
Mr. DINGREL And 11 permitted these
Mr. NORRELL I cannot support any
came before instituted as to the fair and
Was and Missi Commuttee has pro-
tiation. which is non of the chief value
the United States will be called upon to
MATTLE purchasers of the standard taris
bill that provider exemption ter merried
equitable marities in which the members
prosed that the Boint be required la bring
of rebegotiation Accordingly, that
par $45,000,000,000 to $47,000,000,000.
to sell them back to the United States
men with an income in excess of $2,000
of the Price Addintment Boards lined
amendment should also be maciet
a renegotation proceding to . esnelu-
Mr. MICHENER. will the gentleman
dealt with them. and praised them fur
The of the Wass and Man
Government as per tonis. In addition
in one amount, and children in the
sion within ] year after Re Deginning.
raid)
Mr. DINGELL I yield to the gentle-
to that It encouraged the sale of a Int of
amount of $350. and then have those with
the competent and fair manner in which
This la an excellent amendment 4nd
Committee also rerommends the adop-
they performed & difficult assignment
should be adopted.
tion of en amendment authorizes the
DEF machinery and aquipment down in
Income less than $2,000 unly receiving
man trom Michigan.
Arkansas M junk or material,
exemption of $790 for & wife and 8100
Our fluding of fact as to the fairmess and
Another defect in the old law was that
heard to exempt from -
Mr. MICHENER. Mr colleague has
tracts for standard commercial articles,
when 34 was not nurplus at all. Only re-
per child. Is that provision to this alily
competence of the Boards was unani-
excusive profits were defined as thes-
that bin thought was that we
sently se - stare Quere la $130,000,000
Mr. DINGELL I am not point le go
mine, and our resort hears no evidence
where it appears that competitive code-
sive profits No standards were placed
should caise half of the amount saked
expended for an ou pape line in name-
technical in my to BY triend. I
uma which the Unternet in the their-
Uoba affecting the price of such ande
to the law which the érgariments were
by the Treasury and nave half. I take
thing or other up in Alaska that may or
will of this to him. that I em is entire
Its report of the Ways and Means Cop-
required to follow in the determination
already exfit. This amendment marry
& then, my colleague believes there can
truttee can be based.
may not be justified. MY aim sil the
anned with htm with regard to eump-
of what were excessive profita, Our
spella ous in greater detail a power of a
la enved today la Government expendi-
way through has been to try to save
tims If there is to Inc and preference
Nar to there any valid buis tos the
commities falt that st eu esemilial that
emplion already enjoyed by the dipart-
tures cne-half of $10,600,000,000 a year?
statement in that minority report that
Mr. DINGELL I think Unit is our-
money that is belog Incerty spent and
shown. I foil exactly 33 the gettleman
ments, Since it does not require, bd
the Boards eld not permit review of their
such clandard be written into the law,
and on this point the Ways and Means
mirely authorizes, the discretionary a-
recup stated, provided se get ourselves
that would have nothing to do what-
freis about married men with children in
vità the war stort.
the lower trackets. The grestest one-
declares by the mutte If Usere has
Committee The standards
emption of certain contracts in circus.
tate the right frame of mind as to what
which have been priposed in the bill now
stances where fair prices WID to cb-
the muress are when this maney esn
Mr. MICHENER. I want to congrat-
sideration shmild be given there. How-
been any limitation em the right to sp-
peal to the ourts, that limitation has
be ared, I do not think on the onti-
ulate my collearus, the gentleman Irm
ever. the committee did the very best B
lained without the need of
besta found en the statute l'helf. and not
before the House are in the länguage
IL does DO violence to the principle of
Michinen (Mr. on the state-
could under the circumstances.
of the bill luelf, similar to those which
harry running expectives of the Covern-
I proposed in the bill which I introduced,
renegotiation, and should be adoptet.
ment you can safe that amount without
ment he has just made because be is an
Mr. COOPER. will the gentleman
in the activities of the departments.
With the principal conclusions and
outstandine leuder in his own party.
yield?
Per the very reason that the present law
is not clear as to the existence of a right
They with designed to lay down definite
wising mit all of the runsing expenses
Mr. DINGELL I thank the gentle-
Mr. DINGELL I yield.
recommendations of the Ways and Meas
allowed Tur the expeduct of the various
fur the Board to follow, and
Mr. COOPER. As not who has had
of espeal to the murts, both the Ways
Committee I em in
REMORES that you can wave the for ex-
yes to give the administrators a certain
the privilege and pleasure of serving on
and Means Committee and our commit-
amount el needed flexibility in the oper-
Mr. MICHENER. will the gentleman
Mode, with the Army, with the Nary,
man. Mr. MICHENER If I had made that
yield?
and probably in the sonstruction of the
statement, LA might have been charged
the Ways and Means Committee for
les have recommended the insertion of
a provision In the law specifically cob-
allon si the law. While I agree with the
MII Haelf, I am somewhat disturbed by
Mr. VINSON of Georgia. 1 yirld.
merchant dupe. There to an seful lot
Cost = was a partinan statement. But
many years with the distinguisbed gm-
language in the committee report, where-
Mr. MICHENER. The ventimento
of latitude and maybe locieness, et I
we will all be glad to read the gentir-
tieman from Michigan (Mr. Divertal
ferring the right of appeal We only dif-
knusa much shout this subjett. E
man's statement as to ts, because n is
just want to testify to the fact that he
for 4b to the kind nt an appeal that
in it as said that-
that I brought nut la the discussion
should be allowed. The Wass and Meins
committee has ECDP into и extentively.
wills the Budget Director before the
true and If Let fearless, and 1 em glad -
has bern the leader throughout sill the
Committre bas recommended that re-
Toa comitte believes that to computing
What can you tell the House as ID the
committee. and unly recently we find
are to have the corperation of the dis-
years to Institing upon mure genermus
view of the Board's decisions shall lie in
tu the problems in consection with
pritits shows pm
amount of profita being allowed unter
that the Army did disgorge $13,600,000.-
tinguished gentleman trum Michigan in
exemptions for dependenta.
in applying beta (#).
Navy war contracts?
an endeavor to slap this waiteful and
Mr. DINGELL I thank the paile-
a de 0010 proceeding before The Tae
000 previously appropriated. I hoge
Court. While 1 BE of the opinico that
Mr. VINSON of Genraia. I can MF
Whatever I might have said at the time
needlen expenditure of public money.
man for his observation
so entirely DEW brazing by The Tax
The evidence before our committee
to the distinguisbed protimen Inc
M the Budget Director ultimately
Mr. DINGELL I thank the gentle-
Mr. BREHM. Mr. Chairman, will the
Court. after the Board has already tried
indicated very clearly that the problems
Michigan that we have reality made a
miched the Army and might tatt had
the the and handed drive au decision, to
et post-war reconversion, Unrush very
complete unálysta and an audit et event
com effect in bringing about this volum-
man. Mr. MANSFIELD of Montana. I
gentleman yield?
Mr. DINGELL I fild.
wasteful of both public funds and mão-
real and requiring penmpt action by
Lary return of unexpended money. As
would time to ask the distingulabed (s)-
ship, and by using the with
pewer, the important thing la to name
Congress, were not susteptible of mis-
the sentieman from Michigan (Mr.
6. question DG el particular part
Mr. BREHM. Can the gentleman sett.
ship" I mean n. combitant ship that has
knows, the Army and the
of the MI before us for consideration to-
or what la the masimum income which
some form of juritimal regiew of the de-
Lion through renegotiation. 2 am atraid,
been delivered to the Mays. the has been
finished. the contract closed end # he
Navy, I believe, have appropriated and
day. I have received a number of chen-
. person may have and still 1000 abder
partmental decision, Bd long as Judicial
unless there is cirrification of the point,
menications trom small independent
the mánimum tax payment, as explained
review of name non is provided for, 1 am
that the language tn the committee re-
been delivered to the Navy. The result
have before them, or did have at the
not disposed to quarrel ever the from
part may furnish Name basts for con-
motion-picture thester operators to 317
by the gentleman from Child (Mr.
struction by the courts of an Intent un
of that shows that after
time I examined Mr. Bmith, the Brudent
State, calling my altention to the fact
Jenerali
end before taxes, IDe prevailité profes
Director, $206,002,000.000 appropriated
Regraded Unclassified
10044
CONGRESSIONAL RECORD-HOUSE
NOVEMBER 24
CONGRESSIONAL RECORD-HOUSE
10045
1943
Mr. DINGELL I do net have the No
obliterate or cover 14 when talking to your
port before me. but I think that la presity
people.
clearly covered in the report of the 0000-
voluntary at the
A $200 be The
- recemental Institution at wut Amar-
Fifth Providing for the discretionary
et certain was contracts
- and of unwite true,
exemption of standard commercial arti-
was provisid Inr in section 403 of the
Mr. KNUTSON. Mr. Chairman, I
miller.
rield 5 minutes to the gentiewomen from
have ance to arrvitude. On, nn, they to
- na DISAPARE in the quartion,
clas. as defined in the will in FASES where
Birth Supplemental National Deferme
lot file a Joint return, but Nine BOG
a quick frankly to you, not Duet
competitive conditions have been 19.
Apprepriation Act of 1941 in Aprü of
Mr. MILLE. If the gentlemen will
Ohio (Mrs. Bottow).
turn to pages 18 and 19 of the committee
of three days. particilario
OF - nº married - but in the
- e of - duestant the wirld.
stored,
that your It was intended to accomplish
Mrs. BOLTON. MI, Chairman, is is
my Intention to bring to you one et the
many, when you have children. n may temps
TMI M - M far-reachtols - that, because
Birth. Br establishing a new war con-
a very wholesome objective. This oblic-
report. that information la set. out in
detail.
provisions of this law-actim 106-
And what about another answer
- encywhere watch what American
tracts price adjustment board of five
the was En privent unconscionable pruf-
Mr. DINGELL I thank the gentle-
the Treasury do Without these Can
for - ATA. and If the presentive
members representing the Treasury,
Its and profiterring on was rentrate by
which deals with persunal exemptions
$200 items? It was my Idea that many
di - of throught is penitted to
War and Navy Departments, the Mari-
providing for the renegotiation of these
man.
and credit for dependents.
- - mandatory juint tax return prin-
time Commission, and the Recunstrur-
contracts in which escessive prufila very
The CHAIRMAN. The time of the
On page 16. line 13, of the bill M now
creased faxes Were bonded a
dell' me WORTHER everywhere will test
gentleman from Michigan has again a
that the cotimittee has felt the 4d
tion Pingnoe Corporation, in the nature
being realized or likely to be relived.
presented under (b) Credite for mini-
- beaver than they - test.
pired.
- normal tax, subpersgraph (D)"
were being pretty heavily People
The of enactment would be theat-
of . board of review. This board will
The act provides in subsection c-
Mr. DOUGHTON Mr. Chairman, 1
Why should this special amount ta
review, on petition of the contractur,
The Secretary of such départment in MD-
there a this provision, I quote:
gleid the gentleman 3 additional minutes.
milled when OTDE and over the n-
- em esil asse that there en may vers
decisions of the departmental boards.
thorland and directed. in file opin-
Mr. DINGELL Mr. Chairman, I
Married person living with husband or
DID who their women untilled to
Prom these proposed amendments it
Im equivalive profits have term =
mitter In the of . married person living
enamimes consent to proced unit of or-
have declared themselves Reside it. Do
- property. and. to a way, rather resent
is quita evident that the Wase and Means
an Harly to be reslined from any
with husband - with, If a juine return is
der for this 2 minutes.
the people know now? Is the Was knal
mm postine of tredito under the law that
with euch Department or this any subse-
Committee realized that the present Be-
Aird e if one spouse time no - income, .
The CHAIRMAN, Is there objection?
Mesha Committee staelf fully aven or
are DATE son. Them are epiratid alline for
tracts (3) to respute the -
negotiation Act is not carrying mit the
personal exemption of $1,200 er if mái bas
There was no objectine.
grien Income and no joint return to RIAS,
what has been tucked away in the -
KEP would - the duk back, who are
tractor - to recegature the
of this bill?
performe conware of the parth of time and
will and intent of Congress I think It
motral
Mr. DINGELL Mr. Chairman, In
personal exemption of $500. If a Joins DE-
Tet me bring to your the
the - time and experience have
may also be seid that the committee
In plain words the purpose of the law
analyzing the action of the Home on yes-
turn is Sed, the husband and wife shall IV-
précedure of the committee as I
- start,
was and is eugnimant of the fact that the
vu to afford a special remedy against
terday which placed the stamp of ap-
seive COM personal exemption of 81,200
Tail - therefore remind you that .
maladministration of the law presents à
proval upon cevestating and unre-
in the aggregate.
stand is
program on be meansed to . grad
serious menace not only so our form of
fraudulent war prafiters. Its function
strained inflation. deduct from the mid
Assin, on page 17. line 15. "Credita for
The committee ruled that no
sere for the of her von. What
government. but to our esonomar. In
WM on supplant action in tart or fraud
would the taken in upen hearings relative
ET to be the targett own of
for the recovery of unconscionable and
minimum normal tax."
fact, I have heard of the com-
and merciless Baures a clear and unchal-
to mandatory joint returns. This burne
to the Dellad States, to this organ-
fraudwent proñta, which court sellon in
all opportents from expressing Quitr
MID to be made a transity to the who
milter from both sides of the siste es-
Jengeable result waich places the stamp
On the face of Id it looks Insocuous
trand constituted the only remady for
of inflationial upon the Republican Party
Irnes great concern M to the ultimate
enough, perhape, but on accond reading
UF
the INDUSTRY of with trandulent profits
of this Nation The flaures do not IN-
the thoughtful person Immediately sees
views-(I berred all witnen. The TRUE
141 - nos Ind ourselves to an setton that
effect of the administration of the act 11
in World War No. 1. This claim of so-
and this cannot now be expanged from
the implications Here is the whole
given was that the oxmitities had teste
wold take tres TEARS group of would the
carried to the logical conclusion on our
tions bed dragged out so Indefinitely that
the Retore.
- right of being persons under the
system of government and sur free insti-
matter of mandaiory joint returns up
all nacessary evidence in previous -
- M - moment when - estat usk if that
time of them of lest dragged on for 25
hearings. These benrmes, LE I
tutions.
The no-called sound-money party has
again, and se ocmouflaged that most
ber correctly, were held on 1942 Sta
THEY - only the - come have
years and ⑉ disposed of about the Umr
bersork. has before the inflationist
then the membership of the committee
- gine bnk the Purther the
The proposed first four amendments
prople Tall to connect the section I have
of the payager of the War Contracts Be-
party, doing everything possible to bring
just read with the determination of the
has very materially chanted I am ID-
DE - children for tomorrow's
are et minor importance, and while they
negotistion Act. This Benegotistion Act
down the value of the American dollar to
Treasury to force upon the people this
elined to believe that mame of the -
date
may bring relief to - certain degrae for
in Haelf constituted . redical departure
the low Invel of the depresented German
1 e-men of America are realy to meet
a very limited number of war contrac-
sholly distastete) and unwarrantable
from the fundamental principles of can
mark of the ema which followed the lass
Members have read these arriver Death
survice with se grest - courage at
tots, I believe is will be inconseguential.
lax provision,
stitutional government. Even the HenA
war.
Ingl. and that they would therefore have
a - in menting the tufinity grade one
The fifth proposed amendment would
orable Maarice Karker. Chairman of the
The flaures eleaned Erom the RECORD
Time and time sealn the Treasury
no considered opinions to the matter.
ut evint there mes who an their party line
provide = remedy for & Large class of con-
War Department Price Adjustment
has attempted to bring about the pas-
Therefure, Mr. Chairman, open beartter
this Anerica may save the and Have De
show that 175 Republicans voted for In-
traders manufacturing standard noth-
Broin uf the thirg will not tall you,
Board, described the renegntiation law
Dation and were followed by be Demorrata
cage of this mandatory Joins returns
were to order if fairness and Justice were
mercial articles. However. the fact that
for husbands and wives living together,
to prevail
tar will they tall somorrow's world. Bill I
M a dangerote and un-Americin stat-
and 2 minority party niembers for a Total
charge you to keep faith with that MDI
that relief to made discrebinary with the
use. Instead of the war contractor who
of 278.
min and women currying the responsi-
On July 17, 1942, after the last attempt
up refunding to to party to retrogramative
boards presenta the same evil inherent
is suspected of fraud having the appor-
Against the Attempt te seuttle the dal-
billty of kreping abve the heart of
to introduce Unle method of doing arease
action nu matter when is may - before
in the present set-up-namely. that 11
tunliy to meet the charge and lisse m
far and the wrecking of the Nation
American life and Invedom-the home.
with a part, at lesst, of private owner-
pora Int tax - name with America and #7
Imposes - government by men instead of
that charge in the courts, as guarantend
Democrals cast 100 votes, while Repubil-
Each time the people of the country
ship of property I opose on this fiser,
with the world.
. government by law.
by our Constitution for over A century
cana esst only 15, with minardy party
have expressed and each
let Be repeat it because st la atill april
The mument has sgain come. What
The same vice inheres in the pro-
and a balf. the renegotiation les placed
casting 2, for A total of 117 roies.
time the Treasury effort has failed. The
priate and pertinent even though the
will sua do with 142
posed sixth amendment providing for a.
the entermination of that tasae in the
Every Republican in the House except
segument of the country has not
open method of that time has ETHIR place
The CHAIRMAN, The time of the
boant el appeals, The appeal thertby
hands of Chose with whom be had made
15 voted for unrestrained decimating in-
thansed. Indeed It is probable that
in considerable
from Ohio bes expired.
previded will be from the individual
the contract who were the opposite par-
flation, for the total depreciation of the
there la increasing awareness un the part
I share the emition of many that the
(Mrs. BOLTON asked and was given
board which renegotisted the individual
Line to the contract but who were. under
American dollar, for blowing the lid off,
of both men and women of the Implies-
Treasury time no intention of 18
availation to revise and extend be ewn
contract to - combination of even
the law, made the final Judge, jury. and
and for high prices. By/heir Vote la the
Ucma of a law of Joint income-tax Te-
(the manidatory joint tax retions - . -
boards. all and each of whom function
executive on that issue and 15a result-
House resterday the Mithous threw to
turna Women are particularly aware
u/e by which to secure additional TAB
Mr KNUTSON. Mr. Chairman:1 yield
as uriginal boards in similar recegolia-
ant dispositions and enforerment In
the hungry wolves of inflation more than
of the dangers lurking an the shadows.
mays.
such Non as be may desire to the geo-
tion of war contracta. Instenuch as the
other words, is constitutes phain and un-
three-fourths of our population
They know that It a a attack
We are washing ou against . and
Biman from Indiana 1Mr.
In industrial Michigan where the ratte
upon their individual property ORDER-
relentina enems. n - nos a. wer tax 4117
grestest criticism of them beards is and
varnished government by men instead of
ship rights and et their rights to Indi-
other and for " la . was to the CASTA ta
Mr. GRANT of Indiana addressed the
has been that they are supplanting gov-
government by hw.
of urhan-Industrial Disnitation is eing
vidual Man sincerely in-
any ourser or the glote, - AT
Committee. Has remarks will appear
ernment by law with government by men
Nevertheless the exigendes of the att-
greater than the rural-agricultural ayer-
stake, and, gentisman. I would - -
in the renegotiation of contracts, It is
untion caused by the sudden phange of
age of the Nation. you can well appreciate
lervated (2) the Mourity and Independ-
benefun In the Appendit.]
that women have more to Toma TEAD on
but natural su assime that no such sp-
our Nation into the greatest war in all
the Injustice to the consumer, What is
sore of the women, both within and
and, therefore, are more mady was willing
(Mr. GRANT of Indiana asked and
post the THE contractor will meet the
history, requiring mass production in a
the explanation fue This deliberate and
without their ewn families, should be
try terrifies even than men. Mut - la
via civen permission to retire and is.
fate that was meted out to him by
scale never contemplated even by eur
memacine move? Polities la the answer,
equally alort to the situation
very different from to a -
lend has own remarks.)
the board el original jurgdiction. Un-
mass producera, perhaps justified surti
catering to the spokermen for the organ-
I have add that the Treasury Depart-
può ut retrograsion, partientally VISAR a
Mr. ENUTSON. Mr. Chairman, I
future status of the home la and
der the very theory of the reneguitation
en extraordinary remidy under the cir-
ined minority farm group, The Republi-
mant has no for failed to Empose this
the tertha of Une mandatory paint -
much Lime as be may desire to the
of contracts, these boards must banc to-
cumstances of the then extsting national
cans must have forgotten their teachings
procedure upon the people openly, now
are WID as to pur - birth a
arcilaman from Michigan (M). Jona-
gether or they will bank separately. I
emergency. In all uses where the con-
of past years about sound miney, and
they resort to new methods-methoda
mai,
yours.
pay, therefare. that while in thenry they
tractor to making so partitant profit
that the Nation and Michigan are Dre-
that never their grim purposes with In-
The word of America ere being explained
Mr. JONEMAN. Mr. Chairman, It to
amendments may appear to offer re-
no war materials, either because fraud-
pondersetly urban-industrial, Thruw-
centive payments
la go onto the production louis BAY en
my understanding that this bill will
medial legislation, in essente the same
went advantage is taken of the Goverti-
the the worker In the cities ⑉ the volves
Tu put the section of bill into simple
belog entialed in accountation el
vrduce the ares of renegotiation of war
weakness and fallacy still remains And
ment, which, of course. amounts to actual
at this critical time DI not soine to all
the Republican Party-11 will traume and
Tanauêge. If 6 woman prolects her Indi-
the Army and of the Navy, all tive m Mr
currents M follows:
while the sentractor may, by the pro-
traust or whether 18. be through mad-
vidual right to own property and to have
ties to their first responsibility if BA
First, By Increasing the existing (I-
verience, or negilgenco of
home and children. It is . ACTADEN payable
posed amendments, gain summ retail
destroy 11.
en independent Income the to penalized.
Emotion of $100,000 to 8500,000.
97 Dat AFDING upon the gursent ener ID-
from the vices of the renegotiation law.
administrative officials, winre, althrogh
This ronnerted action was ned -
Bhe must pay an income tax of $500.
Second By exempting agricultural
maing demands are being mule de u
la result be is still the victim of almo-
there might be DU action traud on the
was prompted by the party,
any which to attempt time arté -
breducta,
If you believe that you can fool the VAL:
Her horband, too, if le respects ber as
late declarerial domination has the
part of the contractor. is would amount
take from tittim their rights village the us
Third. By narrowing the definition of
very agencies with when be first entered
to ponstruetive fraud. there abould the
major(ty of the people by your artion
. must pay more than if buth
el them RETIND to struggie to much that
It M strange, elais, to pick sus di de pel -
to include only those
into contractual relations.
machinery to current the wrong and
bere resterday. you are mistaken. The
mass of wann the etc are -
articles to become a component part of
within have struggled to ultain and to
The truth of the foregoing statements
prevent undue Government los. And
inflationist label will the through your
carry the ta DA
the final production.
return her voluntarity, mind you, to the
future. n. is - whilly DE
Fourth, By exempting all
is easily proved by & beief analysis of the
no I say that even though it - 9 dan-
party You WID not te sinie to
extra of chartel,
repegotiation law and the history of Its
gerous and un-American statute, I be-
penalistag the who - optails
Fracts under exempt prime contracts and
application during the past 18 months.
lieve that under the dreumstances as
10046
CONGRESSIONAL RECORD-HOUSE
NOVEMBER 24
CONGRESSIONAL RECORD-HOUSE
10047
created ter more viclosa mile than Chose
1943
bad the enteral appreval of the Amil-
iran people, providing that this remedy
which were sought to be currected. for
fised by R. 249a. betos the bill little
duesd for repeal of the reneautiation
KNUTSON Mr. Chairman,
Mr. HORYEN." Mr. Chairman. with
required le DATE postage on their free
of rennsoliation Was confined to the
Instead at confining l'amisties to those
1 from Wiscomin (Mr. BIRTH-
MY such lame es be may desire to the
the power to tax there is the power to
penalty mil - proposed under the
was contracts in which excessive profits
The present law, Decause or las mains, be
destroy. Apparently. the Ways and
Burch MIL Will sbin additional revenue
purpose of the legislation and applied
only in Ques cases in which expirative
were being realized, the Price Adjust-
amended to prevent the or
ministration, cannot be Printed
Means Cinamittee of this House to lend-
the service would have shown a profit of
prefila were reallied pil n. result of ac-
ment Boards immediately proceeded to
our tree Institutions. Il must te of
EAUTHOFF. Mr. Chairman, we
los its best efforts to curtail and at lesst
nearly $100,000,000 Then Deures. and
Mt. before us for consideration B bill
partially destroy such a vust and m-
experience YORK ter themselves. Low
tust or constructive traut. However,
renegoliate all war contracts. In other
this drastic remedy has not heren son-
words, they Inveded and operated to the
out dart. entirely and we must make 1 those finds
SAMP grands (pereased revenue for the year
pertant public service and atility as the
postal yates encourage melling end En-
field reserved exclusively for the Treas-
to N X is be regretted that because
Postal dervice.
dure Inzger volume, bigher revenues. and
fined by the reneguliation boards to war
contracts yleking excessive profits, in
ury Department and renegolisted escess
In regly to those who have the learny
1044 . cheed rule amendments to this
The Post Office Department is not #
higher proble Higher rains discountrage
mailmes, reduce volvime, and lower reve-
other words, unennscionable and fraud-
prodits The bigh rate of takallon-
be say that this repeal bill is In
in the nature of corporate profits will
benefit of three who would make willings a
- il carries be effered en the floor of
revenue-raine inditation for the sun-
the Bowe, IS is also to be regretted that
eral purpose of defraying governmental
num and ereate deficita.
ulent prifits. The apportunity for this
to will, so percent-pade 11 easy for them
abuse by the renesoliation boards was
to intimidale the bonest rontractor by
effort bail been made to
expenses. It la the Mathin's largest busi-
In 1017 Constries mercused the preus
made possible langely by the enactment
name that 90 percent of his profits
the was effort, I say that 1. as much et
grain DO of some of the surplus funds to
name Institution and has been permitted
general rate from 1 10 2. omu, The
a few months later, and shout the time
they and more. want to Dievent the cn-
to function an such for over 180 years
posteard had been producting a. corrent
would te taken from him. anyway, under
that the renegotiation boards lesson to
the exces-profits tax, and thereby
tion of war millionaires. hur I de not las
the hands at OIR consumer
lleve in burning the house be cales ,
The time in get money to when there to
unhampered by those who would under
revenue inf $10,000,000 e yest. With .
function, of the BB-percent
to make n. another revenue-raimess
Telse la 1 omta. the Post Office Depart-
maleting him of that together with the
rat. If the retegation Iss is
potri, soil at no period in the Internet
renegotiation could be placed under the
of [Be Dellare Blates has there been so
agreed for the general purposes of the
ment not etily dif get the Increase
law, which provided that all prodis en
slight margin constituting the eiber
antimpated true the reverse drugst to
war contracts in excess of the basic
10
pertent.
earpings of the contractor, as reasons
To give a. specific example, I know of
jurisdiction of a. board Independent of
much money in the hands of the tax-
Government There therefure, to
be no justification for the action of the
$10.000,000. I predict that If CODE
parti. We cannot tape to cullect any
cone more unwisely adopta the higher
by bis average cartings tirm the years
a firm, and # la typical, having basic
the departments which are parting to la
original contracts; for Instance, the Bo-
of the mon when the flush (Imms have
Ways and Meaca Committee in vetine its
redu of Internal Revenue, Then then
plant and we are core maré struggline
approval of postal rate increases 11
rates recommended by the Bese Ways
1935 the 1939, should be subject to an
camines of $425,000 per year. In 1042,
and Means Committee, mailings and
tax of 00 percent,
by running three shifts most of the time,
will the prailema of normplayment n
simply acted in haste and without much
their earnings were $500,000 additional,
would be no incentive ta nut the Dela
regalderation for the facts. Postal rate
revenues in each class of mail and servizo
Is must be borne in mind that the lems
"excree pridits" an the tax law has-a
of excess profits, as the Treasury Depart-
with M If that It would have been a
changer security to have been picked out
affected will fall - to such an
The renegotiation board coolly told them
far SHIP resilate view of our prichlem to
different than the term "d-
that they would settle for $250,000. or
ment would have no object in mulcing
from nowhere. On one due the commit-
that, only the reventies
DATE main a serious effort to bein pay for
Dself, but would confine standit, 4a the las
anticipated from the increase will net be
reserve profits" in the renegoliation law.
one half of the excess profits, The firm
the --- by Increased revenues. The
too voted approval of a 3-percent tax -
The former contemplates prinfits m
attiled, Here then the renegoliation
intended, to those contracts in whig
gresent bld Lie not adequate. If I had
parel post, 2 data later it approved an
produced but the actual postal revenues
board var deliberately mulcing the
excessive or unconscionable protis ATY
will be less. And the Government will
of a certain amount; in this case profits
in excess et the aftrage annoal carnimas
United States Treasury out or $225,000
being restared.
my was and could par any insure I
increase in the first-class rate from 2 to
4 cents and 24 hours later canceled this
have tem revente at the close of tos final
ne BA, I would make a a law that the
proposed increase. Certainly no careful
your from the Postal Smile than It
siver & given perind before the war.
which would have been paid M excess-
I could mention n. dozen at more View
name war la declared personal incomes
would have If present rater are retained
These excess pritis may soare from the
profits taxes, and the company out of
flowing from the present danemous and
shill not exceed #1 000 net por month
consideration (If study of the exissime
and pertal votrame and revenues are per-
operation of three E-hair shills Instead
$25,000 which It would have been per-
un-American Mature The way in which
et that no ellta could be made to B-
rates, or of the experience and processies
estited to expand.
of anêy one B-beir shirt before the was,
mittled so retain M Degitimate profits
a la administered simply does not full less
- of $100,000 by any (annayer. In ad-
of the part which led to thair establish-
No department of government is dont
entitline the var contractor to from two
except fur this esurpation of authority.
the American way of life, even in war-
la the above, I would establish .
ment arrund DE A basis for the ratas now
to the people than the Pust Office De-
to three times lb normal larache, or there
Il ta not difficult to understand and ap-
time. Let B suffice to may here that the
maximim percent of profits which muld
proposed. 1 also doubt YES much
may be than) outer regitimate INCIPARES
preciste the company's claim that this
be emed by anyour, taking the excess
whether the Post Office Department has
puriment. It some in contact with
renegetiation law, as the aforessid faits
the people daily. They want efficient
In 12re volume DE Business, resulting In
increased Bat legitimate loceme the the
slight margin of $25,005 eas necessary
show, has been distorted tnto an unero-
EVET such amount for revenue for the
been consulted about this matter.
service end as low portal rates so postible
industry. This increased profic, as long
for them to med their normal dividends
atttutional delegation of the taming power
payment of war obligations, and last tars
The Committee on the Part Office and
with each efficient service.
and provide reserves for past-war con-
las these boards and la explanting our
cot Tenst I would creste a beard which
Post Roads al the Home is. in reality.
I am sure that the people of the country
as It is nel profil. la the
tod the power to maintain a sutisfactory
excess profit comismplated by the excesse
version: and that BA a result of FEDIED-
American system of taxation vila the
the board of directors of the Past Office
do not want to son the Postal Service used
proñas tax Although this FACESS prodit
tiation they fell compelled to lower their
arbitrary, diseriminatory confication of
relation and standard givelving
Department and is 30 regarded by the
as another taxation agency. When we
dividends. The redepetiation boards
totalitarian dictatorahip. Some time
community priors, and profits, - all three
Department The ned for socreased
unce die inte the Post Office Department
M. considered bonesi and Nationale, liber
tax law provides lbst being business as
threacives admits that of the 34,001,000.-
ago the newspapers carried . story of
are interforked and cannot be considered
postal rates should be determined by that
for revenue to tarry on all the emeral
000 they had novered by recepolistion,
an alleged claim by the administration
planimed in times of war emergency.
committee with the sole purpose in mind
tenctions of government, the templation
well as (In profis Sewing from
To persent or two billine eight hundred
that corporation taxes were eight, his-
Perhaps It is an indication of the pres-
the war it shall - be relainel, box se
of putting the Past Office Department an
immediately arises Le continue Units E-
percent of this PROCESS proñe thall be n-
million would have been collected by the
dred million less for 1942 than they -
RDS appraisement of valors when we -
. sound financial basis as the Givern-
redure until finally the Postal Bervice 2
covered by the Gevernment through the
Treasury Department at all events, This
in 1941. From the foregoing facia at A
a. resiution dumbering since last Feb-
ment's biggest business venture and
entirely destroyed and is simply
Inves but con billion two hundred mil-
clear that they were in reality et lyst
name in the Committee on Pursign Rela-
should net attempt to bland it for NO-
another agency et taxation. Wr should
excese-profts tax
lion, And the quary DI as to how much of
$2.000,000,000 higher, only they NOT de
times providing for the feding of the
eral taxation purposes without any ne-
not the structure now that has
They to the vital distanction. Excess
that can they have wrongfully taken
Incled differently. B is that
servinu children of the occupied equa-
gard for the future and the waldere of
withstood the of 180 years.
proñts are ingitimate profits in excess of
from war contractors as excessive profits
the Congress courageously receptione the
the of Europe: also there has bien
the Portal Service their
(Mr. HOSVEN asked and - glives
The previously carord, while excessive
when in reality they constituted Inglu-
taxing power, lest It be lost to them and
similarying in the Committee on Agri-
Out of a total estimated yield et
permission to revise and estend his own
prode refers to margina) profit on articles
which are priced too high and amount
mate PRICESS produc This latier sum also
the phople forever.
milare since last May B. resclusion en-
that committee to investigate
$1,901,000,000 in excess revenues voted by
to actual or constructive trand or cour-
undoubtadly includes the huge stams vnl-
Purthermore, unles we repral the by
of all middlemen dealing with
the committee, postal rate changes are
remarks) Mr. KNUTHON. Mr. Chairman, I
the of the Ovvernment
untarly returned by war contractors be-
and enact Ingisiation confined to the (be
estimated to produce $175,000,000. To
girld such time as be may desire to the
Tnre and without
and DO action has been talsen -
The failuré to make this distinction to
Jectives and purposes exeminative
1982. when postal volume and revenues
gentiman from Obiv TMr. Voral.
Be that as It may, by wrongfully In-
either realution, but shen whinky gol.
the glaring vice of the renegotiation bu-
profits, se will distroy persone
dropped to 6388.000,000. the Post Office
Mr. VORYS of Obio. Mr. Chairman,
Indine and raiding the deld of the Treas-
address in the District of Culumbia there
by missing is of the fisnds to
NO & rush made to investigate the rea-
Department offered a. defleit of $300.-
1 wish to elsterate . tittle further the
reaux. IL was the Tuartino of the reise-
dry Department in the colliction of es-
conversion when the war shall have with
em for the searcity with B view to taking
R$5,000. Agitation - that une for
suggestion I made earlier this afterniem
entistion boards. to receiver accessive
higher postal rates so save the taxpsyers
to the gentleman truro Oklahoma (Mr.
profits and the function of the Treasury
lazes, libey have not only
won, thereby destruying millions a jaba
signauriate measures to relieve the third
Department to collect in taxes 00 per-
for our homeooming soldiers and dum
of the afficted and yes mothers of email
this express was defented by the argo-
The need for post-war moon-
mulited the Treasury Department, but
have cash an undue onas and odium on
ment that the orficit regid only be wiped
version funds fer la a problem.
cent of prufits. Had the
who must inave war production julé for
chiviren can NO through the stores of the
tistion boards confined rensentiation to
tAx var contractor, muking EXCESS al-
civilian employment
out by maintaintos low rates and build-
which is of great CUBORTO to business-
those contracts invuiring excessive or
though Infilimate produs, end under the
CIT of Washington and not find beavy
Most of the Members of and
morest for the cold months. But
Ink up postal volume and reventies. Time
men and shuuld be of great to
duress have mulcled him as well. They
most of the American perple are -
has proven the soundoen of that ep-
Congress. The suggestion has been made
unconsciumable profits, it would not miy
lines a not of any importance Jessit
that the permitted to with-
be carrying out the will and (ptent of
have sligmatized bie as a wer profilleer.
of the machinery to change the Amed-
not hearly No important as the lack of &
ment.
Congress hot If would have prived a
penalizing him accordingly, whereas he
In 1042. with the same low rates exist-
hold trom war taxes a poll-war reco-
can way of living, to destroy the Amiti-
quart of whicky, I think B is time that
wholesome measure to effect those ID-
Ins in 1932, revenues haft increased to
cersion justive, in order to pay for the
was a. patriotic American, willing la work
can expitalistic system. The renegotta-
we readjusted our una of values and
hurder and contribute the proceeds et
tion-of-contracts law, regardless of a
and the deficit was reduced
changes passmary in their plants. The
tenta and purposes. Not only that but
Brst things find.
to $11,825,000, a gaving to taxpayers of
argument has bem made that the great
it enuld continuously be functioning
Ris efforts to the war effort through the
Inrmer efficacy, la nt the present une
opposet to this bill, and shall vote
benefit to furnishing prisept employment
alongside the exces-prefits ins RACO in
Ammiran principle of taxátion,
one of the most promising No
REGICAL It. although I know that there
$195,000,000 Per the fincal year 183
lta proper field-the one to DIFFERE prot-
In eunclasion I sub to say that while
the who are seiking the rejective it
will be no opportunity to the recorded in
revenues am estimated as the all-time
would warrant the withholding of theme
fleering and the other to recapture Ingiti-
the proposed by the Com-
high of with an all-time tow
tax funds. I doubt whether this form
taking ever the economy of the country
. rull call,
mais prefits resulting from Increased
miltee on Ways and Means may give
and establishtng - socialistic or colles.
(Mr. SAUTHOFF withod and was given
deficit of only $2,543,122. notwithstand-
of tax exemption is tensible. and, if 12
Industry And business flowing from the
come relief, they do not at all reach the
sivist scheme of government in part
ins Pustmatter General Walser's own
were part into practice. n would DO deubt
to revise and extend his -
war. However, as is the case with much
United States.
statement that additional revenue
be surrounded with ao many govern-
cure et evil Inherent in this dangerous
remarks.)
other wholesome and efficient legislation,
Mr. KNUTSON Mr. Chairmen, I
amountina to $103,000,000 would bave
mental regulations and inspections as to
and un-American statute, I believe that
the war effort and the general welfare of
(Mr. JOHKMAN asked and was given
maladministration of the efficials has
the Afteritan people can be best bene-
permission to revise and extend - 010
Field such time as be may desire to the
accrued to the service If all governmen-
be very burdensome. Most bustnessmen
tal dipartmenta and agencies had been
are leuking forward with longing to the
remarks)
exclisman from lows (Mr. Norves).
10048
CONGRESSIONAL RECORD-HOUSE
NOVEMBER 24
CONGRESSIONAL RECORD-HOUSE
10049
1948
day when they can amid governmental
Mr. ENUTSON. Mr. Chairman, I
theme and red tage in their business.
Mr. GEARHART. I yisis to the -
the board you would net hear
track originally agreed upro. There to a.
to what the profit should be. Mineover,
yield 16 minutes to the perfleman from
Usman from Nebresks,
of resplaining Codey.
conflacation of & partion of the profits
the amendment related unly to the pau-
I have suggested to A number of mean-
California (Mr.
Mr. CURTIB 1s is Del true that
Additional reason why I AEL apposed to
which the contraster earned under his
titular appropriation the being mado
bin of the Was and Messa Committee
Mr. GEARHART. Mr. Chairman, last
and have discussed with businessmento the
December when on passed upon the
wass? It is deducted from the Noth
agricultural areas pay the fresht a
go all pres out of the previsions hav-
original contract without any compens-
and to contractors desline directly with
so-called modified Burd plan I thought
to de with repegotiation. I am
them therefor This is a via-
the Content - prime cintractors.
punsibility of financing Doll-war recon-
version Unough A plan
we had about reached the senlth la un-
rereives for lla products And a la Mini 1
on to the price that It must 24) lay
- of rencentiation because I am guite
lation of the Constitution of the United
Whatever the faolte of the Cast emend-
that the proposed statute to
States, only coe of A hundred violations
ment. IL had the great merit of fising
which would be Junt the reverse of the
acond legislation, but I am satisfied that
var building ainortination plan. When
will follow the freight
manufactured goods. Likewine the tax -
All will I am
that I could name If Utile would permit,
certain definite limitations.
in the present bill we have under con-
-guite nire. that is la for
Mr. KNUTBON. Mr. Chairman, I
When the appropriation bill eache lack
the Tear plants were built we permitted
enderation we have a real "runner-
Mr. GEARHART. That is I
Coderno to delegate its ingisistive pre-
yield such time $ he BY desire to the
to the House in the form of . conference
industry to amortize the coil of the plant
upper." We still have a pay-as-you-
true. Because they ratch - coming
mealite Laevise, all will agree that #
gentleman frum Illinois (Mr.
report, which in not subject to assend-
over a period of 5 years through tas
The American people had hoped that
geing the agrimiltural areas an the by Mil
ta delegate the taxing
Mr. CHURCH, Mr. Chairman I would
ment, renegotiation as we know it today
deductions. Nuw industry neda current
funds for necessary post-sar changes.
the committee would supply them with
the people of which the Date If
gover of the Compress to any agency.
like to comment briefly DO the proposed
was born. The administration
there was anything resembing socing
IN will dons all that in its so-called
amendments to the in-callet renegetia-
upon this eppertunity to have delegated
Many a business is making very large
in the application of this laz, I mill
provisions. The Congress,
tion law embodied in the pending IPV-
to the departments the precer tal deler-
prefit from a mill plant. Trul this war
you-uwe bill. They wanted simplicity
be the last to protect,
profit la goling larach to the Government
but, derpite their pleas, we etill have all
enjyee the definition to all the people,
enue bill. The proposed amendmenta
mine for themselves what constituted a-
in taxes and renemistion, as e about,
the complexities and all of the confusing
Mr. CURTIS To: Interior of the
DAS duffined what Income Is: But the
constitute A decided improvement of the
cersive profits* Renegotiation thus oried-
and the (somi the future villi-
waterway freight either.
country does tot have the advantage et
are granted the privilese of
existing law, but - we not preciuded
nated - & part of a pressing was 4D-
uncertainties which were en integral part
what income is in its applica-
by the per rule" under which the bill
propriation need and the ness time Con-
out necemary working rapital. I believe
of the previous bill to which I have just
in belong debated I would offer an ammá-
press bad the matter before a was in the
that DE could permit industry to with-
alluded.
Mr. GEARHART, The opposition to
una a a stogle individual. Congress, in
this tax which time been
the revenue laws, firm the rate
mest to provide for the outright repeal
form of A conference report en the reve-
hold as each M half of the Isses due
The American people are going to be
for Mile purpose and amortize the pay-
greatly disappointed when they find that,
throughout the country ought la be od-
of the rate which shall apply
of the entire renegotiation statuta.
true BASI of 1947. which embodled certain
- each of these succeeding quarterly
ficient to convines these who are M-
results to all of the perple. The renego-
In the words of the former Chairman
amendments 10 the renegotiation law
mento a persod of 5 wen
sembled here, If not to the - of
daten are authorized to lay down a eif-
of the Wat Department Price Adjust-
written Into in appropriation MIL
For inviace, a business which owed
persods, they will aum have to go through
1300,000 la taxes in 1344 enuis withhold
the Wage and Means Commitee, the
terent rate of taxellon-not 5 all the
ment Board when be testitled-pass in of
Buffine is to 547. Mr. Chairman, that
the same mental gyrations and suffer the
this tax is unfair and
upon. the ume person who
the heirings-before the Committee on
there priver was a reprectiation MM as
nor-hall of this amount, MT 8250.000, for
same indescribable confusión that they
purposes, under proper
had to undergo when they were pm the
Commissioner Eastinan, known through
before to be the victim Unit the have
Ways and Means. and 1 commend trum
nich before & committee of this House or
tax THE last Siptember 15.
out the country as its greatest Incipe.
marked for renegotiation treatment.
for his frankness, "It is A dangerena
before the House - . whole. Il was N-
50 be prescribed by law, This
tation expert, has condemned n. time and
Mr. CASE WID the gentleman yield?
and un-American statute." Such a law
ways a part of some other important
amount might be sufficient to finance all,
Trere are many features of this bill
DE § major part of the change-over. In
time again and en a number of -
Mr. GEARHART. My time 1s -
should never have been placed on our
and I venture te MAY that a crest many
besides ils complications that compel me
to withhold my assent to It. I intect
asked the Congram to repeal it The
darl-
stature books, and I am personally 200-
Metn/ars of the Howe never realized
lbs nest $ years un addition to the regu-
for lase of the business, st would pay
Interstate Commerce Commission the
Mr. CASE. May I suic the gentimen
vinced that If given the opportunity this
there that est 6. law until they began
particularly to the transportation tax et
also asked the Congress to wipe is from
(§ be does not want to make & differentis-
House would vote its complete repeal
to are the effects of it and to heir
$66,000 a year in amortizing the payment
2 percent upon freight charges. Aa = is
the statute books. The Office of Defensi
tion between the recapture of profits and
I suspect that the administration leader-
tmm the people back home.
which Dad unto withheld, Interest
the king-haul States that suffer the most
would be charges approximating the In-
Transportation also condemns the leg
, repricing as to contracts that are en-
ship would not have brought the bill to
1 liste many times protested mgainst
from . tax of this character, as a Call-
limit on the Gevernment drbs MY that
M unsound, unfair, discriminatory, =
tured into by a contractor where a N-
the floor of the House under 6 closed
broad delegations of power to the execu-
fornian, 1. of course, object to the unfair-
equal, unequitable. Yet it retains a
regoliation classe is part of the eun-
rule were = not realized that an open.
time tirench of the Government. I have
larre would be DO altorate Inis to the
am ni the operation of that kind of .
Guvernment. The only danger would be
this fall-simply because a proteur
butt
rule would undectived ment the climi-
appoied such procedure and will -
tax upo the consissioners and shippers of
$175,000,000. That-an far 33 1 -
Mr. GEARHART. I agree that there
pation of renegetiation.
serve in oppose It as lung as I as privi-
that Use business might fail in the post-
ay areat State. This tax is truly so un-
war years and the Government would
assertain-is the only réason IL Will
la such A distinction. Pas
We are representatives of she people.
leged to have & sest in this great body.
nel by shie to make full antlection. To
fair and diveriminatory tax put nealnat
a tax which is so diseriminatory, unlate,
IN. both are jumbled together and are
We are eustedians of conditutional
The sprawting. strangling bureaucracy
all of the border States of our great coun-
this extent, the Comment would De
and unequal in lb operation Impresed
treated the same was. Because to their
rights, Once is to clearly understood the
which is killing the American WAY of life
sharing the harards of the basinessmen's
in the Atlantic and Pacific Countal
States, the Gulf States and the Mexican
my enlieagues of the great Want and
curration upon the contractor the pro-
extent to which the repegntistion law
and placing impossible tax burdens on
poil-var fortunes D. might be fesible
Means Committee SF worthy of recentino
oder and the effect are the same in
suspenda even abrogrates constitu-
the people is the product of theme dele-
to make the amorissions period longer
harder States Our specialty crops must
in the bill will remain zer of the -
regert to both recapture of funds and
tional righta of American citizens 3 do
gations of power, The unlamented
than & years. Buch a plan would D/V
la taken thousands of millesi to the em-
solved masteries of evodern time,
of articles no good purpose
not believe the membership of this
X FL. A. was characterized as "delepation
mêye all of the problema of
suming markets, and when they are taken
there and sold to the ennoumers ned only
Mr. ELLAWORTH wie the
and positibly be served by bearing that
Bouse world accept any ammentments
run riot," and the renegotiation law la
except that providing for repeal. If the
subject to the name characterization,
Financing, bwt it would accomplein much
man yield?
distinctions its mind.
without red tape un overhead.
drus that production carry with is. a high
Mr. GEARHART I grinld to the 10.
principio of renegostation in un-Ameri-
Who determines in renegotiation what
I am egainst the renegotiation classes
are excessive profits? Ocvernment sp-
The entirman from Descas 1Mr.
Freight charge, which we know we ran-
Ueman trum Oregon.
fun 5 many reasides et would be quite im-
can, the TA/F providing for represetion
has stated this afternous that
not avoid, but jt carries with It a 3-per-
Mr. ELLSWORTH. D x not the that
possible to einn DMI them within the
does not become MU less un-American
pointess By what rule or standard do
this wante problem must be reamined
rent tax on that high freight charge,
the same amount of money could la
shart period which has been allotted me.
by improvine the technique or providure
they make that determination? There
soon Is LE my hope that my supportive
working as 4 penalty and nothing less.
For the word "resegettation" u
of represtiation.
is none, Who decider in renegotistion
Miss SUMNER of Illinois. Will the
collected on another Is vitar
This House never had, nar do se
the amount of money that my be earned
time can réceire study and analysis as that
gentleman yield?
words, the percentage trasin used a mit
friel upon the American people. That
responsible for the inequity, whereal If
vera a done has DO relation to the
have today. full opportunity tal para upon
by a particular contractor or subccts-
Mr. GEARHART. I risid to the pro-
Allhough 1 realize that putting to-
of that word. What does "re-
the resi buide, That right has been de-
tractor? Government appointees How
tiewoman from Illinois.
& per unit basis were used. the MIDE
gether e réserve measure is a trinno-
Discription" mean? 1 think all will
nied or by administration strategists. 15.
do they decide? No one knows. Not is
Miss SUMNER of Illimine England
amount on the commodity from what-
in dented - todar. I must sonfes that
there any effective appral from their de-
cirrital task, I my disappoint-
ever IL may be shipped. the Charge would
agroo that to renegoliate means "W entl-
and some of the other foreign countries,
be no inequity, but - could still
the administration leaders have done .
eisim. Truly, "is is a dangerints and un-
ment at many provinions of the present
doct conferences as - basis of serve-
remarkably able job In proventing the is-
American statute."
tax bill 1 fels me should attempt to
Including Overmany, have taken off the
the same amount of money? Is that ms
terms," "te treat with a view to comine to
raise even more money, I frei even
import duties and transportation tax M
1000,"
sue from arising in the Hmaw.
Let me read to you the definition of
true?
steater talid from bureaucratio capries
Mr. GEARNART That it I/W. the
To there anytedy no guileless as to be-
Last year when the sixth expelamental
excessive profits as net nut in the 148:
sidies. . chouse of avoiding having to give rub-
cound have been given in the reception-
gentlemen frum Oregon la quit and
lleve that any contractor who la cited in
national defense appropriation NO was
The term "gadit protect means any
uon amendments 1 stall feel. su I have
Mr. GEARBART, 1 am grateful for
Other methods WITE suggented DE for
for renegotiation is given any opper-
before the House the distingtished gen-
amount of à sentran or adventrant prior
that observation, In order to empliasiza
Deman from South Dakota Mr. CASE)
which is found as . result of perspitation
always felt, that is LE « mistake to co-
net me point out that those of us who live
some strange - etch
funity to decide whether or not be wants
sixtee such a bill under a BAR rule, The
surpais human understandine-the -
M respectiate, or, does anyone think
secured the adeption of an sevendment
to represt profits."
small attendance here. the lack of Inter-
in the Well Day move per capita of auto-
mobiles, ten chrets, radios, and things
mitter retund upon and CHAE with a
the after renegotisting the contractor
to limit predite on war centracta at €
In other wards, Mr. Chairman, -
th the dirtate, is evidence that the
of that kind. trut wo do nut they them on
unglelding tenacity, to the univired
too any right to refuse to accept the on-
percent. There was no discussion of the
atve profita are excelaire probis to the
membership of this House will not exre
mula of Urean all.
of those renepotiations or
amendment and to this day no ane known
amount that you, the prine adjustment
the conclusions the Price Renegotiation
from the language of the amendment
bourds, decide they are It
any erest amingt et time and allention
so squality with the people who live tn
Mr. ELLSWORTH Mes Hay. R a
to consideration of A. the bill under . EXC
the center of the country where those
things an produzed. We have to pay
my recollection, the principle I past -
Bond has arrived at? Not et all, The
whisher the E-percent limitation was 6
could De all the prodits realthed nr if could
nale Of course, however, I am earns to
timed applies on social other -
potractor la merely resched out for and
promt of the contract price, el costs. or
be name.
Tele for this will rather than achind it.
a previer freight charge on them than
ties, notably used. They did nel LIMI the
Exam by the nage of the neck and told,
of sales. Very dew Members were on the
Not unly do the Price Adjustment
I want to de my part in raising taxes te
Others and then in addition thereto we
have to pay this 3 percent un that each-
percentage method on coal The ISS (in
"Sign here. This is the new contract
floor at the time and, ch a division. the
Heards have the power to determine
support the war elfort.
the transportation of coil a a must pif
Toure is DO eschange of Ideas, there is no
amendment was adopted by 6 Tote of
shat is excessive M a profit. on war work
(Mr. VORVS at Ohio assed and PM
live freight charge. The trate the
car, which I think is the propet way of
certing of minds, there is no agreement
TO to &
they do DATE have to farnish the con-
Crm permission la revise and extend
change. the mester the tax,
in respect to new terms. The whole pro-
The profit Imitation provided by the
trader with any statement as 5 how
distributing a tsx
his own
Floor Mr. CURTIS, Will the gentleman
Mr. GEARHART If the tax theref
the is arbilizary. In true totalitarian
an order Oxing new terms is, by
Case sinsedment was fixed and as nes
Diry arrived at their conclusion. The
which was applied to casi - apport
TOM in the departments discretion as
whole proceeding in in complete secrety.
likase, substituted for the vuluntary -
No 10-1
10050
CONGRESSIONAL RECORD-HOUSE
NOVEMBER 24
CONGRESSIONAL RECORD-HOUSE
10051
1943
There la no public riverd of any kind,
ertul because of - system of free enter-
And the contractor must accept the de-
prise, and 14 la for as to preserve at at
and ous Government departments,
Agricles continue to - buresta
- en congressional district. Work
While this equipment was paid for by
law. Treasury demands disreard (his
claim et the Board who renegettated his
unnecessary under material through the mails and
seen going on tm this area for sume
the month, oftimes machines broken
téra.
all outs.
The renegotiation law la destroying
M and have heard numerous -
drun. and remained In the repair shop
No sooner had the Revenue Act of 1043
contracte ⑉ be will not resive payment
this system and should be repealed. The
the franking privileges,
I am definitely opposed to this us
Mainta months renerrulng wasteriness and pu- to-
for M long a 3 werks et = time because of
tem ebacted, making drastic increases
for su products, which, in most in-
After some personal
lack of repairs as well as scardity if Dit-
in personal Income taxes, and before the
stances, would mean that the empany
pending amendmente MAIN the ares of
can DO longer centinue in business.
the were bill, Mr. Chairman, and I who is
joil I Anally found an employee
chanica. to there was many days when
yisid of that medife and possibly -
and set. up certain stand-
Mr. Chairman, that is not the Amert-
ards for the determination of excresive
the continuance of any such Jaw. If
exteting law but its basic evils remain.
ment It. I am THE
strike possible to offer an a
the protect who bis acquainted me
- of the equipment au mil operated
known, the Treasury ww
tao system of government, and I protent
and of mans of the chings which have been
at all, and much was operated only part.
further increases. The demand was
profits The amendments Improve the
of would have
time.
made without regard le spending
rule port this The to
ping The not. pun. . umakeper, and en em-
I will now elle deletions for deriain
MF she possibility of refucing expendi-
the administration of this law should fall
! wish we would be given the opportu-
turne by practicing and eilmi-
into the trands of the many remodders
city to vate lis reprai and leave to the
offered by the Committee no Ways be
such an amendment as city chase
el the Government, when calling
equipment for certain days as fellows:
now misociated WILD the Government we
tax law the control of profits. That Is
such Means. In the EFROS II does nes at
players - renditions to the attention of the
nating waste.
will witness the complete destruction of
the American way.
the an amendment, I hope that Mr.
emtractors, was told tax "give the boys &
TAX NATES ARE -
Name vn
Des
bill la under consideration in Via
wesk." Certain employees, after " few
Date
delared
The Treasury, spesking for the admin-
the American at (tem enterprise.
Mr. Chairman, I wish also to direct
2c has term arguel that renegotiation
first Behis numerous threats, and propo-
Intration, has asked Congress for $10.-
Name remarks to title IV of the pending
other body Uue TV will be 6
500,000.000 in new taxes, This startling
is necessary to prevent was
revenue bill, providing for an Increase
and much has brea said should the
Committee on Ways and Means 1 The
to spilt up the "take" submitted to
4m.
dentand, this held no hearings whatever No.- -
the delivitions, but came back day after
el
LN
request nomes after a series if stiff tax
in postal rates, This title has no place
SAT and worked the same old tacket,
Rept.
Il
at
amount of maney recorered through re-
in a revenue measure. Postage was never
Expc.
IV
as
increases which have left the American
(Mr. CHURCH maked and the
subject of increase in pollal THE
making M necessary for sometime to be on
Od.1
sur
people staggering under tax burdens be-
negotiation. To figure that have been
intended to be a tax, but rather a charge
n
IF
- job rash day se check the men.
Od.1
yand their wildest dreams. Not content
presented smm imposion has they fail
for the special service of the Govern-
0s.4
126
las lake into account the tases that we
marks in the Broom)
permission to revise and extend the the N-
Time employees receive time. time and
DELE
148
with tax rates which may yield approxi-
met and when the Committee on Ways
and double time for their extra
0a.4
114
mately $45,000,000,000 in revenues this
would have collected on the profite had
and Means presames to report . bill con-
they remained with the companies,
telang provisions for increasing postal
Mr. KNUTBON. Mr. Childre
DeLT
a
fiscal year. the Treasury world-without
Editime law provides for a 00-jurcent
rates it is assuming juriofiction uver a
yield such litne as he may destre la the I
hours. Bo-called working hours deleted by
Date
On и
any gualms of ennscience, add another
Groks.] sentlemen from Pennaylvania 1 Mr.
the diligence of this time clerk amounted
is
$10,501,300,000.
tex. with an over-all liest-
matter which belongs to the Committee
is a SAVIRE of $7,000.01 from the period
The resenue from premit taxés, In
tation of 30 pervices on ot/porate taxes
nn the Post Office and Post Boads,
In ammi, therefore, ao pertent of the
The proposed increase in the rates will
(Mr. GROSS asked and was -
July 38 to Occober 20, 1943, This figure
Mr. Ultairman I froi that the torego-
the agreemente, are steudily increasing
more resident threath remegatistion
not greatly affect the individual, but it
mission to revise and extend - remarks
pain only 1 of 25 working EADEL
tour statement justifies the claims of the
with a raing national income and the
in the RECORD.)
would be provided (Drough
viil materially affect American bisiness,
The hourby wage of the men involved
minority members of the committee that
expansion of consumer epending. In
Marrern the pending NO provider for a
Mr. GROSS. Mr. Chairman, mid
DE this project range from 75 centa to
honesty and economy tin government
fact. the reseipts from existing taxes
Surely it is recognized that during this
are rising faster than the Treasury stat-
HIS beginning
period many have been
bas been said here lately Want the DIVE
11.50 DIF hour,
would completely eliminate the nices-
for rélaing additional revenue to the
From the records which I have before
(stlelans have anticipated. When the
January 1. 1944.
obliged to discontinue the use of sales-
city of any increased taxes.
When we WIDES the a
men in reaching 0 market for their prod-
purpose of financing our Var de 408
24. M shows that on August 16, se men
Correct Tax Payment Act WAS adopted
Complaints of the dickerings to con-
ucts. Companies which previously main-
our entinary government functions
claimed hours M work which were de-
several menths RED, the Treasury FM
law se provided for a ponviver credit of
nection with this project, made to offi-
Also, much has been said whout
fried by the umokeeper. after a check-up.
willing to admit that a would add only
10 priformal, in elber wird, for every
talsed . large sile force have last min
cials of War Emergency Pipelines, Inc.,
You bour deleted for this day total 171
$3,000,000,000 to tax revenues in 1944
dollar paid in tax DO
to the armed services or la war praduc-
any in suvernment, and This M wead I
a Government agenty, answerable to De-
would be and wide by the Treasury De-
tion plants. Morsover, the gasoline
want to discuss. So that I shall TUS take
BACKS, and resulted in a saving of $264.
and 1948 But at the end of last July
fecae Plant Corporation, have gone un-
perimini as A. name to American
shortage and the bravy burden on pub-
up too much Utne I shall cita only -
The time allotted permits me to men-
the Treasury conceded that the early esti-
herded.
to the difficult punt-war stand-
lie carriers have made u for
Instance where economy and assunder
Des only some of the cases as follows:
male was too low, and II ralsed the esti-
business operation on the part el or
I beürre that the Reconstruction Fi-
mate to $5,000,000,000. Benent reporta
tice period 13 pranture production. lie-
hundreds of companies la find - substi-
Government would have saved Ue tax-
Dance Curporation owes = to the 14%-
indicate that this estimate is probably
understation dues not provide for STEP meh
tute for The mails have this
Hert
Mm le-
payers countless dollars,
Date
Bering
payers to time a thorousk Investigation
still too lov.
reserve, end inasmich M renegotiation
intel
estrat
become increasingly Important to bast-
of the entire projest out Into the open.
The early operations of the pay-sa-
is before taxes rather than after lase
ness, and is is DGW proposed by this In-
The proposal to construct a. tipe las
Mr. ENUTSON. Mr. Chairman, I
from Texas to Illinois at a cost of HI-
you-su plan disclose that there had been
American business James the post-war
185
na
año
cruse in postal rates to place another
no
yield 10 minutes to the gentleman from
for more the than the Treasury
credit which Coopres decided should be
000,000 was last February in
N°
LM
burden on business,
a
Jesse Jones. The Defense Plant Corpo-
III
NI
New Jersey [Mr.
has been willing publicly to admit. In
avaliable for the future. Remegotiation
According to the committee report
NES
IM
"
DE
the estimated additional revenue from
Ad.
to
(Mr. McLEAN asked and was given
fact, the Treasury has been very silent
In thus la direct nonthst with the seriod
ration, upon the recommendation of the
114
390
Are
-
Il
in
permission to revise and extend bis re-
about the tax enaina. Collecting the
bolica of
the proposed rates is $156,609,900. While
Petroleum Administration for Was.
DEL
R
III
agreed to finance the project which, are
marks in the Racord.
income TAX gt the sourre, although It
I four for the future of American truel-
in
All
5
ven if they are not permitted to build
I do not have the details upun which this
completion, would have a capacity of
и
=
-
Mr. McLEAN. Mr. Chairman, wire
has placed inconceirable compliance
estimate was made, I venture the pre-
the pending just . revente ml
burdens on employers, is silding TAIL
up fearnes for converting plants to
diction that if these reter should ED into
about 235,000 barrets per day of
1 would not End it difficult to oppose is
amnunta to Federal revenut and will add
Joiume production for mesting DAY
mile until the company can place Half
effect the return will be Tar less than the
and light petroleum products
Now, Mr. Chairmen, having elled the
uning in man-bour payments, I call
and this notwithstanding that 1 am not
still more - evalion la stopped and (LB)
milmate There is a well-estabilished
The War Emergency Pipelines, Inf.
was set. up to construct the line and
unmindful of the extranationary needa of
the national income increases.
- a presetime productive basts, and for
rehibilitating their equipment new op-
law known as the las of dimin-
the enention of the House to money
operate IS for the account of the Defente
revenue for war purposes. Their nesda
the I APT THE DATERIAL
Ishing return, If the return un 1,000
which would have also been wasted bad
a not ben for the honesty of this em-
were fully constituted on the enactment
To in too any to what the
ersung AC maximum espacity, Unless
Plant Corporation.
interness can art. up appropriate market
places of mail at 2 cents La $20. Il does
In April, Mr. Jones announced libert
et the last revenue art.
final revenues from the present uses will
not follow that an increase in the rate
bloyve
for the post-way period we will be nin-
Defense Plant Corporation, a subsidiary
I - golog to support the bill. because
be during the present end the ensure
Printed with the greatest depression is
in 3 expta will Increase the return to
In CASES where A worker was found to
I am in accord wish the provisions which
fiscal years. With the national income
of the Reconstruction Finance Curples.
have stalmed to have been on the job,
trending upward and with prices and
our history and all besitees will pur intal
$30. Invertably as the rate increases the
number of places maled will decline be-
tion, upon recommendation of the PM
be vu not, & check was made of his
is to hoped will sumplify the assement
the liends of the Government We will
troleum Administration for War. bei
particular type of work en the project.
and pollection of the personal income
rensumer spending on the rise, tax oil-
thut Issue through nur own (bort-sebted-
not the price becomes probileitive
But EVEN assuming that name add)-
agreed to finance the extension of the
These men who had been dishonest
taxis and ciarity many of the provisions
lections are bound to increase. In view
of existing law, including the revision of
of the existing very birth tax rates, fur-
ness the very Thing for which se are
titral muney may be realized by ID-
pipe lime to the harber areas of NYY York
whout Unite hours were usually operators
et bay equipment, such as ditching ma-
the Renegotiation Art. The only In-
the increases should be avoided al least
fighting and for which sext boys are dally
cresses In postal rates, I em convinced
City.
chines, bulldcarra. tractors, heavy trucks,
cresses In the personal income taxes are
until we know what revenues our present
siving their lives-freedors.
There is no substiture for the Amen-
that the affert of this action WILL be Tar
This section. again to be construited
by War Emergency Pipelines Inc. would
nominal,
will produce.
and welders. When it WM found that
more damaging to American business
Also, I heartly apprové of the proposal
The Treasury has time after time re-
can system of Invo This is
DOW 50 dependent on the mails than any
complete the link from Elinois to the
they had not worked in was also fourd
east COME.
that Date agaipment bad remained lidle.
that to the future taxes shall be assessed
vised its estimates of the pational in-
elidened by the developments to the
present war. Russia with 200,002,000
num that may for the moment be gained,
The first section of the 1100-4 16-inth
you . claim was made for reimbursement
on anticipated income and not made
come. Not long ago It was speaking of .
prople and endines resources, Great Bru-
paracy. At best the gain would only be tem-
be use of the equipment.
retruactive Changes to our tax laws
possible income of $100,000,000,000 This
tobe from Baytown end Part Arthur to
was revised upward to $125,900,000,000.
eta with @00,000,000 people and strat
Beaument, Ter. and a 29-inch Ene the
In checking the daily time sheet II
have born tron frequent. They have left
natural resources, China willing 400,500.-
IL does pot - to the logical, 10 Just
the people confused and embarrassed
then to $130,000,000.000. and later to
does not make whe to propose an In-
there to Narris City, III. and
this found that 5,123 hours could be
000 people and endiess 08/oral recurres,
Ind-were approved as e civil of 14.-
by not knowing nt being añle to anticl-
$140,000,000,000. Now the Treasury de-
all look to the United States with 130-
treate in postage rates when the Post
kinclud of of equipment charges for the
pain what their taxes would amount to.
clares that an aggregate Income of
000,000 people. It is net the number of
Office mail service is now on A paying
000.000.
protod from Attent 10 to Ortober 14, &
Completion et the Beymnur-New York
Detind of only 2 months.
My approach to the preparation of the
$152,800,000,000 will be paid mis during
nur people that makes us powerful. It
beats and when the mails have Income
meastire has leen with the conviction
the fiscal year 1044. We know is will
in important to the people as . whole.
area section. also a 20-mch une will
This equipment was rented an prices
not be long until this figure la revised
Is not the extent of our resoures. Other
By this provizion It la presented to In-
bring the over-all cost of the entire prof-
Bard by Che o. P. A. The equipment
that before any new taxes were impued
countries have larger populations and
eet to approximately 800,000,000
riceed from tar and asphalt kettles at
sufficient time should be allowed to as-
upward to $200,001,000,000.
greater natural resources, We are pow-
trease the burden of mail costs on the
certain with same degree of certainty the
Inevitably, as the national income
Denple Ville nt the same Lime the vari-
This place line, known in my - al
All a menth to ditebing machines at
the Bile Inch, paines for 100 also
revenue to to realized under existing
sears, tax receipts also MAD The must-
ESD per munth.
10052
CONGRESSIONAL RECORD-HOUSE
November 24
1943
CONGRESSIONAL RECORD-HOUSE
10053
the high tax rates will return more and
the proceeds of Insurance left at death,
and the vast arms et white collar workers
with miner nocias revenues, finaliy
theire revenue month by month as 4 con-
half of our total enveronmental EXpends. Date
gentieman from Kansas (Mr.
would take care of our Pederal expendi-
below reasonable. My personal epinim
enquence Therefore a la not decembry
who must get sinng upon fixed informa
(Mr. CARLSON of Kansas asked and
tures as we make them. This welde
funds. tures will be torores by nonberred
is that the restrictive programs of the
to rain these rates to gather in insure
are being punished terrifically by our
was given permission to revine and ex-
eliminate the problem of bolls borrowing
present administration are doing more
tax enflections. In fact, in particular
premit Be are the professional
This is a spiended accomplishment
ind MS remarks in the Reroas)
and inflation. or course, everyone real-
to came inflation than the consumers
CAMEL bigher rates may produce less you-
people and all of those in our great mid-
is far superior to our record during Werld la
Mr. CARLSON of Kansas Mr. Chair-
Izna the futility of even coomdering the
themselves. Inclead of trying to in-
because of Undr effects upon the
die class whose incimes are fixed of
War No. 1. In the final year 1018, which
man- the voires of the people are being
levying of taxes de mest present Pederal
crease consumers goods, each as food,
incentives and resourers of the texpares.
almot constant. Many millions el our
Insught our best financial results,
neard (II) the tas bill that la being report-
expenditures. Our national ecustomy
clothing. nil, and a which would
people have enjoyed little, If any. of the
were able to raise only " in
ed to los House today. The tax bill
could not stand u.
mop up excess purchasine puper, the
TAX RATES AND DER TOTAL -
were prosperity in the form of higher
under discussión is not only a product of
During the past few years - have
administration, through the O, P. A. is
New. st may be urget that
Pederal taxes M compared with Policy
Incomes.
expenditures of $18,500,600.00 Peteral
the Ways and Means Committee: It
been levying taxes Chat would take care
reducing the production of these -
raise of takation can readily be norne as
THE TOB
tas were only 28 persont of Petient
contains the composite views of the
of 30 to 40 percent of our Federal expend-
modities. Wish increased spending a-
the national Income flow espands. But
krep in mind that the tax rales have
1 have spoken here only at the income
expenditures. In this fiscal year 1045
American taxparers. They have em-
Mares Present indications are that se
pedita' we must have an outlet for -
alrendy Inso raised time after ume
and Victory taxes. Their are not the
Pederal taxes mag increase 40 Defenst if
physicalls warned Congress that we
will be able to - so percent of our
sumer purchasing power. Consumers
enly taxes país by the American people,
Pederal expenditures
have spending-not mure taxes.
Federal expenditures la the Benal year
would rather spend a tew certa addi-
Never before have the American pec-
THE does not that the American
1948 by taxation. This, to ay opinion,
per pound for food than have a
pie paid such high rates of income tax-
These are the an-called exclar taxes, a
THE PROMABLE comme DE -
targuyse la unwilling to pay taxes, but
la nel only . worthy achievement for our
rigid price-constrol program that will de-
Non Never before have ther paid over
dispuised form of siles tax. On every
n. Ques mean that be DO Inname intends
people, tot demonstrates that they are
struy production to the extent that no
to the Treasury each tremendous NUMBER
process of popular-stant cigarettes,
If the war in Europe should end in the
there la . tax of 7 eints. On furs, jewel-
near future, war expenditures was
la have tris money wasted. Evidence la
willing to assime A heavy tax load in
goods will be available.
of money. Before the was we were sar-
ry. and tollet preparations, there are
very probably decline rapidly. We has
anywhere of waste. extravagant npmd-
order to insure freedom and democracy,
MANUTER COMMUNICATE -
log about a billine dellars a year in par-
the and money squandered recklessly.
The difference between the ammunt we
social income taxes. In this fiscal year.
laxes of 10 percent of the prices. On the
about attained the peak of our war -
The elimination of unneressary Other
Etuille and investigations by
accure throsam taxation and our Federal
according to the receivative Treasury
transportation of persons there is a tas
duction. Milliary needs in some lines
ernment expenditures effers the most di-
give ample prost that
expenditures must be borrowed In under
entimates, the American prople will pay
of 10 percens On telephone services
have been provided for grattly in ad-
ress and effective attack upon inflation-
of the Prderal Oprernment
to balance the bodget. Our national
ever $18.000.000.000 in income and Vic-
there are taxes of 10 to 20 percent. On
vanor of present requirements, 4dd &
any policies, Federal expenditures can
tapering off of war expenditures in the
with oxere given large sums of maney to
debt has been growing by leaps and
other commedities and services there are
and must be reduced. The Byrd -
tony taxes.
onresponding taxes paid directly or in-
geld in this empressy have been mm
buinds. The present ostional debt a
But the appetise of the Treasury knows.
coming menths to not
mittee has from Une to time called these
only collisent. trus in many cases no-
$163,000,000.000 Present indications
no bounds. It reeks to Increase Income-
directly by consumers This bill will
Moreover, IL should be possible to
unnecessary expenditures to the atten-
latel the truit and ognfidence that Cop-
are that it will reach hg
tax rates stall with the caject of
increase many of these excise taxes on
plish further economies in
than of Congress and made raggestives
commodities and entos consumed by
spending and to svoid some of the valia
great in them. Congress ttself is
the end of the theat year June 30. 1944.
for a reduction of them The Truman
plime another $6,400,000,000 squa the
in war spending, without endangering
bear enticited the many of these waste-
The amount of money hormwed can Do
committee Das from time to time ralied
Individual taxesvers, above total tax
all of us. These are not simply the luxu-
(M) and ministry expenditures. They
reduted by increaring ONT Iss load and
to the Treasury would then be
single life in the armed forces and with-
attention a the enormance waste of Fed-
ries of the wealthy. We are all being hit
justity escape all blame butt.
reducing Pederal expenditures. The tax
out prolonging the war.
oral funds. Innumerable Inslances could
approximately $25,000,000,000
at every turn by taxes upon tobacco,
beilher should they be beld responsible
bunden for the fiscal year 1944 will in-
administra, sporting goods, ESS-
On the revenue side, tax milectares
be mentioned, our I am not scing to tais
Mr. Paul, of (b) Tream Department,
fur executive and administrative agen-
crease and there must be a reduction in
the time to do it. We are DIS only
territy susted is a public address that
elenn, and many other items. Together
are mounting with the growth of the
cies which are responsible to Congress
expenditures.
It would las reasonable le decide the
national Income, the expansion et con-
eprodica Federal taxpayers' may rock-
these tears will ameunt to shout $4,000.-
for effective and efficient administration
The President in his Budget mesidento
lentr in our own Nation-we are reach-
Treasury reviewe protem and nak for
000,000 this To the $25,000.-
sumer spending, and higher tax tain.
The Expayer has nne test for Federal
for the fiscal year 1944 advised Congrem
IDE out to every section of the globe. IL
$21.000,000,000 in DIV uxes initead of
000,000 which the Treasury wants to col-
The existing tax rates are already len
they nos. mary for the
that " would spend $106,000,000.000,
is my contention that there an be I (th-
410.501.000.000. You may be sure that
Isca from our directly, B vanta to
heavy. We have already provided for
var effort? There are indications that
Many et us believed that could not
eral revolt among our people whre the
If en enact the bas the Treasury now
nollect A further $5.500.000,000 by various
increases of 12.5 persent in the locaps
Peteral taxes are now M bish as to be
possibly spend over $10,000,000,000 in
eartain which shielde of this wille
BAKE, DI would not be long it name
tax upon Income received in 1043 and
undermining the tar base at NE RC-
the fiscal year. Recent daily Treasury
and extravazance in Ulted. The day of
back for another ten or firten büllinn
I have not spaken here of the customs
1944. The social-areurity tax rates will
rélevating rate. This reduces tuture tax-
statements Indicate that we may not
reckoning D coming and the retribution
dollars. IL would seen be siking de
duties. which will surpais $300,000,000
automatically Increase in January, un-
ing opportunities, threatens extinction of
reach this Bearn. The War Department
will be drantic. Just as & sample of what
thirty or faty billine dollars in Individ-
this 7647. These will also be shifted to
less Congress provides otherwer. The
the einst American middle class, and
has already advised Congress that they
we are duina with the money
usl Insume lapy.
us as consumers and reduce our purchas-
American people are (In)
Impres serious handiraps un business
expert to spend $13,000,000.000 les Usin
I wish to call attention to the following
We must new seriously consider
Imp power.
amounts of bonds and are placing M.
which may delay and prevent post-war
Ute estimate in the Budget. No douts
news story which appeared a the prem
whether the present tax rates are all
NOTE CHD DEAL
liens et dollars tnto ches forms of
resumption of production for pescetime
the Navy will submit a reduction of four
at the time we with fulding heartngs on
that the American propir can bear with-
Noe have I spoken of the taxes which
ing. All in all. our tax burdent are now
and lhe reployment so cruelal in our
or five billion dollars is expenditores.
the proposed ten and a half billion del-
out grove and permanent Injury tu the
individuals must par to the State and
at an oppressive level, and further rate
economy, Legislative actions of today
Congress la soing to maint on the paring
lar tax MII:
national Protomy. These rates will esp-
Jocal governments. The Treasury de-
increases may be expected to add to thrir
will avida prot-war problems of tomot-
to the Donor of other items of Federal
DESCRIT. October D-The
ptr mure and - revenue as the na-
Clares that individuals are paying
destructive effects.
row. Tax policies duribe mer sar period
expenditurer. They muas be reduced.
Government amounted accept-
tima) movime fluer. II may be quantioned
$2,000,000 no directly to our Wate und
On the spending side, wat OULDAYS
other well be the determinios factor as to
D. IN vasier to save a. dollar than to raise
unre today of . $300,000 gift from the United
whither je u not and un-
local gurernments la property, income,
seem to have reached - peak and should
our type of government to the prot-war
it tis taxes.
States Office of Coordination of Inter-Ame-
wise to Increase the rates for tear that
and other use This does not include
ADOD start to decline, To the extent USA
period.
Once la nation enters upon a spending
tran Affairs to be arroted to sentration work
the Aigher nies might cause diminish-
un paid by renters upon property
governmental economier can Le effected,
program that shifts No production of
and tealth -
The polley approved by Congres may
log returns und dry up future revenue
which they de not nwo, which would add
and there M & strime sentiment in Cod-
wes astomine whether we are to osn-
BOODS and materials from consumer de-
It will be remembered that our own
u frait another $1.800.000,900 Nor does
gress and throughout the country for
time es a democracy, operate 65
mand to production or instruments of
W. P. A. carried out . sumilar profess in
MILITY ni NY nam
it include the general sales, the gasoline,
economies, spending preds may fur-
state, or be terred to adopt
war we become threatened with Inflation.
this country, much to the disgust and ex-
Because the national Income - up.
the febacco, the amiliement, the alco-
ther lightened.
a Infollazion government. No doubt
This has been true in every war and is is
perse at aur tampayers. And now we are
it dues not fallow that the (ea) purchas-
hal. and other taxes which are cullected
many will 197 we need have - fear
true AL the present ume- Inflation to-
ening to do the same thing in far-away
ins possy of all of the pepulation In-
indirectly from individuals in their pur-
In view of the known tachs I
strut a totalitarian government in our
day La not only dureatening-It 3a. here.
Uniquay, carrying out the good-neighter
ervales, Prices have been rising and our
chase of taxed commedities and services,
believe that the time has came to call a
Nation. Outeral spathy on the part
It constitutes a real problem. The Treas-
policy as # were. But this la only one
dailars will buy for less now than they
Toerther this last group of State and
halt upon farther tax increases. Imaght
of our Government and the people
sury Department has consistently urged
of many instances of extravagance
would A. in years ago. Em which nuw
local taxes will game in $2,000,000,000.
have dweit at length upon the amerous
sould and would being this about. We
that we greatly Increase the tax burden
and wastefulness that this administra-
retail et TO tents - doten were 40 centr.
Directir and indirectly, the State and
tax burdens which have perso placed
will lare our fiscal problems practically.
of our citizens In order to mop up this
Una is practicing. and It is high time
or les, a dobin 5 lew years back. Fresh
Ineal governments are taking from Indi-
upon business enterprise, which have
The fiscal problema of the was period
inflationary spending money. They and
a stop was put to IL
fruits and vegitable and at priors before
viduals some $5,000,000.000, Mide from
paralieled the valt increases EN insure-
have herp most difficult, but a to my pin-
other agencies have submitted estimates
the war which were not much mure this
the taxes upon property and
that the problems will
of the infetionary ERD varying from A
EXTERAL -
usi taxes. Neither business nor the -
income and from the social accurity con-
dividual can. without grave injury. ab-
be **§D mure so. If we do net lay . firm
Tew billien dollars up to $50,000,000.000.
Bormwing is so integral Important
half of the prints prevailing Inday.
am distrustrul of Beures which presume
fastar in our was financing. Unfortu-
Meats, poultry, Ash. mile, butter, and
tributima If WE Include all of the DIT-
Intendation for our post-war economy
sorb higher tax rates.
to massure this exp with any approach
nately. we ame using deficit financing
other Uetas in our diel lover in
sonal and business forme and property
Under these ennditions. e tas housed
the remaining days of the WAT WE
to balance our Federal Budget for 10
WE) the forced to take temporary and
to exacthess. Using 1643 figures as a
price. Bn also were clôthing, fust. and
lastes, commodity, sed pay roll, and all
is demanded. at lesst until the Dati 191°
enue effecta of present tax are -
to product our domestic
basis it in possible to develop estimates
years previous to our min into World
other articles,
other taxes, the State and local govern-
of an inflationary EXP ranging all the
War No. 2. n was bard to arouse the
Morrover, many million income sam-
minis sure collecting a stupendous em
Instead of increasing the tax WV
Brunimy and preserve our type of gav-
Humant There are three ways of
way train filteen to twenty billinn del-
country and Congress as to the danger of
ets are receiving no mm dollars in 10-
of over $10,000,000,000.
must seck to make the existing tax
lars all the way down to are depending
this method of financing our national ex-
cocar than they received before the war,
an - visa NO
more effective In order to produce Del
financing this war and every other war.
shile others AN reserving wells A little
They are, first, tainstion: second, borrow-
upon how liberal or conservative the data
penditures. Every imaginable demand
- AND NO. I COMPLE
maximum of revenues under the
true: and third, infiation,
is estimated. In fact, I believe it is pos-
vas made opon the Pederal Government.
more. Those in advanced years sto are
living en their and sevings the widness
Altogether, Pederal, State, and local
taxes during the fiscal per 1044 will M-
tates. Mr. ENUTSON. Mr. Charman I
Tue question is asked, "How much
sible to produce Dantres showing - arga-
Aa a Nation we conceived various boon-
tive inflationary EAD while wing esti-
deggling programa on which to apend
and their children who are suitained by
we try to raise by taxation?" The
pregate about $35,000,000,090. Together
yirld such time M he may desire tal 1%
10eat way would De to levy taxes that
motes that have all the appearance of
borrowed and.
Regraded Unclassified
10054
CONGRESSIONAL RECORD-HOUSE
NOVEMBER 24
1943
CONGRESSIONAL RECORD-HOUSE
10055
Harry Hopkins, elose adviser la the
For share of the national dehi, World
Wir Mr. I and World Mr No. 1 - of
half of this total Oen-
erally over BE of the
gates of in the first 2 - Issue by
mains them subject la
White House, on the eve of a rest elec-
Mr. Past. nearly 61.000.000,008.
tien, said. "We will spend and spend,
ONL N, 1743
dum by
bonds anid RE the three drive were Pin
where the local amount received estimale
Mt. Caston. That added so the
la alline of (stant
tax and us. and elect and elect." As
chased by insurance companier, missing
$25,000. The Teranage in the proposed
550 would be $14,800,000,000 that you shotts
a Nation se had swallowed the philips.
Total
bill brondena and streethans existing
odivet this Excel year because we passage the
national
debt -
navious banks, State and local sheen-
I
That
law. The following statement analyze
Current The Payment Act?
ophy of the British monistary expert,
capital
minta, other eprporations and associa-
FIRS We
WM
Lard Keynan.
Mons, dealers and brokers, United States
Lae
Lass
à
the DEW proposal and la found on page
Mr. his We are effecting this year -
I
Busine
Obvertment agencies, trait funds, and
38 of the report accompanying H. R.
the baste of a higher limit of innama, Mr.
THRONT
Carlace
3667:
According to Lord Keynel, 6. nation
M delive
Waid Wer No.
banks. The commercial
-
NOT
KM
Mr. Custom. I fully that, list
Tall War No. 1 data
banks bought $10,145,001,000 worth la
Your commise mational the provisions
can spend without junit, regardios of (se
this a milertions. We RTV making 614.-
NIT)
L'
BY
the First and Becond Lean drives, They
Total
12,97
ILAI
0,79
of existing law as to war-contrai teskers,
income, wealth, et delit, to long as "
Offer
800.000,0001
merely live the dibt Internally to our-
Verit We fir
CAMEL = me
26.6
-
were prohibited from making subscrip.
who sine to renegnitation If the 4pr-
ONL 1. Brank - you in
gate et the amounts remind by such bitter
Mr. PAIL I think that = milmates of
relves. The process of paying " off In-
Lawert World War No.
tions in the Third Loan drive. They and
the the final par escenda under This pro-
individual insume-tag the Das
16.9
no
- - - bal by all - -
(lim M.
other financial Institutions Internet POT-
are to individuals.
raise use herther by disaline-
fiscal year DM un
volves only siphoning of every shrough
Worki -
tasation from DE porket to another. If
m World We No. a arts
charres over 82,000,000,000 with which to
- -
mg. as nonta to the prime instruction any
Mt. Customs Well, $15,006,000,000, mugidy
the pockets were in the pants of the name
z, TAD.
#:
e
buy bonds. Eince September 18 the
madel a - million all will
commission, premium, brikarags, of -
speaking, maybe no an EVE Sugnitive MAAA that,
individual there might be merit in this
World We 5/c
se IM 21, ne
go
-
lanks have cashed la for Individuals er
a Add $ tesals.
- Qttim of the instructions of EDW Transay, Die
tisges Tax paid or payable to any person
Mr. FAVIL That may form a
philosophy. Unfortunstab, the pockets
Will The No. =
corporations $3,000,000,000 weeth of War
- of - as 7, DIAL
for, If is connection with, the withing or
Mr. Come That additional 60.000,000,-
are quite often in the other mon's pants,
and - (Sirpt. a not
(a)
1.100
Mentsing by - process or . suctract with .
000 - DATE picked up was - anone very
Thank Malt Yes
hands. Bonds putchased by banks a
means
department, - ruch person is . has Ode
helpful in this detre to step inflation) to that
Vice President WALLACE and other New
(the,
as,
I
F 185-3
1,304
ale DEF credit These purchase are
Our committes la making further
established or miling spacy
nett
Deal administrators, advise us we pud
highly infistionary. This policy dross.
affocts to eliminate those leecises DD our
maintation by the - I'm the pw-
M: Patt. Burely. mindy that : him
have DO that " to our national acivency,
Das - Indicate manated obligations of UM the
strates the futility of increasing Istes to
regardies of administral
éntiment was - 44 -
close the inflationary gap M long as THE
taxpayers who render no service to our
par of verifiag business
beard of to the Treasury appoind current not-
was effort. yet, in the aggreste draw mil-
COMPLETE TAX FATMENTS
They labor under the impromion that
- Tie Chap of Description Nar. 4.
aell large sums of War bonda to comme-
MY Causer. At DO uno did the Treatuga
NAME
liens of dollars in tal commissions as
cial banks The insurance
During the debate an the House reso-
we can borrow and borrew and spend
have to lane any bonds because of -
war brokers. While our boys are giv-
and spend. Their philosupis la that
DOET OF ces EXPENSE and - PROGRAM
and other corporations and adencions our-
lutten providing for the extension of the
recently student Current Withholding MITT
Fighting 5 ginhal war requires expend-
chased approximately $20.000,000,000 by
the their very all on the battle fronts-
Commodity Credit Corporation several
Mr. PATE I and that to la Mb:
national debt to not dengerois but re-
while our eitlains are greaning under a
statements were made as to the Infla-
Customer's qualité.
spertable and possibly virtuous as we
Itures of funds that are beyund the
War bonds tn the first three Wardeng
DEF St la candres.
drives. These purchases are net infla-
have lax burden-we hear of calloused
tionary effect of the Rund plan. In the
comprehension of finite minda
and unscrupulous Individuals who are
Unnary, but they fail be resch the mm.
fins place, the Rumi plan was DETET ap-
The national debt per capital on Octo-
World War cost the United States
cuserrned unly about commissions and
ber SI, IIHI, amounted to nearly $1,204
proved by Congress. and secondly, its
The purpose of renegotiation to to pre-
around $32,009,000,050. By August 1943
vidual's excess purchasing pow.
beubitage fees. These despirable crea-
approval would have been deflationary.
vent an individual or corporation from
et su average of 84,810 for - family of
the Congress of the United States had
The Secretary of the Treasury tax 15-
tures must be removed from the backs of
There can De no doubt about that state-
relaining unconsclouside 587 proñta,
four. During the month of October 1H3.
appropriated nearly $340,000,000,000 for
nounred the month of January M the
the taxpayers. The House Naval Affairs
ment because estrent tax enflections en
Theoratically, this is a commendable law
the per capita national dribe increased
the prosecution of World War No. 2.
opening of the Fourth War Loss am
Committee made an investigation of the
appresimately $45, while the increase for
. higher Income than the prevista
because no patriotic American citizen
Commitments, which are made up large-
The goal will be $14,000,000,000. On the
missingen agents and war brokers on
year's base at the same rate siphons
wants anyone to 212 rich out of war
the year ending October 31, 1943,
by of cuntracts awarded and the like, to-
basis of previous purchases the individ-
the procurement of Government trust-
taled around $210,000,000,000. The no-
ual-citisin will take $3,000,000,000 of the
off a larger amount of money than
profits. Practically, # has not prevented
amounted to about 4517. The
test. Legislation WM recommended by
prak the netional debt reached during
would have been milected in the cur-
war profiteering and the making of war
trial cash paid out by the United States
queta. It 1s time We face theme facta.
World War No. 1 was about 8050 pur
that able committee and approved by
rent year on the part year's lower tax
millionaires, I: to true that IL has recap-
capita, or 6234 les than the present debt
Treasury for war purposes amounted to
The day of depending on morrie ectors,
Congress. No doubt great improvement
tured the printita from individuals and
liability. Congress passed the Current
burden.
over $124,000,000.000.
entertainers, and theatrical performent
bai resulted from this action. Despile
Tax Payment Act of 1943. It became
corporations who have been engaged in
to put over our brind drives must ed
present Federal statutes, rumors son-
effective M of July 1 of this year. The
war production. II has, however, had no
AND or FEREAL are
Cost of the - program lo the D. #. Gootra-
We de nit question the motives et then
Unite that the problem is and with us.
effect on concerns poli vorned directly
mest (Consistite Telala)*
statement loss been made that this act
to IVUI the Federal debt of the Tinited
patriotic people who have given 00 eno-
Evidable indicates that various means
in was work.
- 75 percent et the Rumi plan. That
States was only $1,670,000,000 By 1996
dillares of dollars)
erously of time and taient. The bred
and devices are being used to evade the
is nos a entrers statement, but, mare-
The hnimis, department stores, Équor
the cost of the First World War had
queta has been oversibacribed. Despite
provisions of our present statutes. Eug-
Cash-
Teas of that tax collections will be fully
dealers, and a ou, whole bukiness has
raised this debt to $24,298,000,000. Dur-
Top AAIS -
this fact, I entend they have failed. Our
are made that these brokers are
current by March 15, 1645,
been and will rontinue to be ascelarated
the the 1020's. the debt was reduced
ments
time*
people need to be Informed of the can-
being carried on the pay rolls and on the
Let us analyze the results of this ac-
by the war far beyond the increased BC-
steadily, failing to $16.163.000,000 by 1030.
EVT of the concentration of later belding
back of contingent tem in order to n-
tion and SAME how inflationary the action
celeration in war Industry are not eub-
Then the depression seace of the 1030's
-
of hends in our financial intitutions
odre (bese unesmed gains. A study of
of Congress was If Congreta had not
Ject to the Benegotiation Ant. The justi-
raised the debt to $47,500,000,000 in 1940.
Pair
14
4.0
"
We need an educational campairo that
Drinmber
nome of the Individual cases makes one
14.1
approved the Current Tax Payment Act
fication fur enactment of the Renegotta-
On October 31, 1943, the cost of the
in
LI
will reach every cittesn. He most to
wonder how responsible manufacturers
of 1943 we would have collected $9,000.-
the Act was the national defense and
Becond World War had already lifted the
Para
202
AT
convinced that it is to his bast interesta
Driver
would be no guilible. The members of
TT-1
000.000 in personal Income taxes in 1941.
war emergency. Necessarily & grest and
national debt to $165,000,000,000. At the
IND
DE
14.0
and his children's but Interesta to ONE
our committee were unablements in mak-
This was the personal income-tax liabli-
immediate expension of our wher pro-
present rate of expenditures and currept
firm.
me
N1
this share to his own Government. Do
by an effort to stop this reprehensible
By for the year 1942 payable In 1243
gram was imperative restardless of cost
tax collections, It in estimated that by
IMD:
as
secrificing and patriotte people can and
practice, We realize there are legiti-
under the law previous to exactiont of
of our orderly procurement.
June 30, 1304, our national debt will have
Park
211
will steume sale obligation.
mate commission agents and brokers. It
the Current Tax Payment Act of 1942.
Our war effort required the immediate
reached $110,000,000,000. Estimates for
July
MI
1945 reach $300,000,000.000.
August
DAS
Sales of in the pret 4 ser in
was not our Intention to disrupt these
Under the Current Tax Payment Aet we
manufacture of many Items- and
classes of investors
nocemary, services. There is no doubt
will collect approximately $15,000,000,000
weapons and most of this material was
A national debt of $390,000,000,000 in
- Cumel Ima INI, D a and
in my mind but what the cummittee
in 1943 Instead of $0,800,000,000 under
produced on - large-volume basis. Un-
1945 will tread a per espita debt of
October AVE, IL & Department of
(In infiliere a dollars
winted to reach this group of Individuals
the old method. In other words, E not-
der these conditions cost
approximately $2.122 for every man,
by to wireded
REF: punti Include lbs bibry experied
MJ
sin, either through political Influence
lect $3,000,000.000 more in taxes because
was most difficult to secure and the
woman, and child tn the tountry, In
MIA Be Blv. Out pointities are Car - al
Benef
profils were difficult to determine. The
First War
or friendship with the contractor, was
of the passage of that act and the fani
brief, in the agan of 35 years, our DET
is the D. a. Treatory.
We
Loss
-
Less
receiving compensation in any form as
that taxes will be collected on current in-
result was the approval of the Benegotis-
capita debt will have risen from 812 to
-
WAB-DONO POLICIES
a. wat broker. The language in the
come at last year's rates. This $5,000.-
tion Act.
82,222 despite an Increase of 47 persont
Are the much publiciaed War-bood
proding MIL was drafted from the fal-
000,000 additional Increase en TAX enlies-
The procuretant officials have now
in our population in this period.
Signature presion
drives a failure? A thorough analysis
lowing crudely drawn but all-Inclusive
tions for the year 1943 refuse every state-
had 3 years' experience to the purchase
The carrying charge on this Indebied-
pri
amendment that I offered. It la quated
of was materials effice Pourl Harter. It
of the -bund purchases in the Pint,
pm
ment and argument that cullecting taxes
new at an average interest rate of te-
Beound, and Third War Loan drives can-
end von 9
twen a and I percent places 4 havy
not
1,0M
s
4d
here as as to give the intent of the com-
currently la inflationary. Let no nine be
does not seam to me that they can justify
Filles:
vinces me that they she only
deceived by statements that the present
the rentinuance of this net - a repric-
burden on every taxparer, Production
laws oque
in the dollar value of bonds sold, Eyery
-
1,680
1.00
LMP
Any amount paid to a la a
method of collecting taxis as approved
the statute. Procurement officials who
that will be proded for post-war 100-
Muhal
error
LA
besker de individual, partner-
recently to Congress la Inflationary,
cannot purchase standard commodities
targe has lem oversubscribed and that
bala
-
-
burden. name remairaction must carry this
should be proof that the drives were suc-
Pain and feest
E
DE misporation, - A the for excuring the
Pollowing is - between Mr. BAD-
in the open market and through -
34
-
whicher paid directly by a retainer
transful A War-bond drive la net "wo-
5
THE will und be organdered - an
dolph Paul, General Countri for the
petitive bid without a Prident reprictos
Through our present deficit financing,
Other reporations
terrful unless the individual citizen pur-
and ANSUM
Treasury, and myself M found on Dago
statute abrued be removed. An effort to
1,711
we are unconsclously buz certainly shap-
Traine and brokers.
THY
NI
est Item to un resegntle-
chares & large perting of the bonda sold,
Date Authorised agents and TIPO
ITS of the hearings on the Revenue Act
below made by the officials in charge to
log our pott-war economy. We must,
u. d. Comment
At of October 7. 1042, we sold apprexi-
une
-
o
Find as which to the nain us
for 1943:
delignate the Repegolistion Act as a It-
therefore, eliminate waste, undersessary
mately $56,000,000,000 of War bonds in
=
new true title provuise.
Mr. CABADA, Not, Mr. Poul an you in
pricing measure instead of 5 tax mms-
expenditures, demand rigid ecunomy, and
end
The language in the proposed bill am-
ID# how much additional permant-meme-
ure Regardine of their statements and
the three War-loan drives. The Indi-
7,60
tax revenue we are gsing se adilert to fiscal
efforta this act be considered of &
a strict accounting for every dollar spent.
vidual citizen bought only seven and one-
Bine fortnates at - of table.
- existing law which Hate war-con-
par 1044 because of the Current TM Pay-
tax It Venis dirently with the
that brikers as and
mest Act of 19497
return of money to the Federal Treasury,
Regraded Unclassified
CONGRESSIONAL RECORD-HOUSE
NOVEMBER 24
1943
CONGRESSIONAL RECORD-HOUSE
10056
10057
which should have been returned
that was approved by the committee
- The history of portal rates does
Compution of out of
medical mail and pensity
acoud class RM restared by amendment
Apr rate Our conprañs migress organize-
through taxallon.
and later removed on the Insistance of
that the contrary is true, Back to the
me (Goversment departments) from
in the 1932 Revenue Act. The exper-
Non publishes, New Testament - and
There are, of course, Instances where
officials in the vartous agrocies dealing
ue revised the rater DD postal cards Trans
paid year 1932 is 130, include
lence of the Post Office in this Increase,
und religious bruke required no subtory
the tax base nf . imporation was such
with represetion. In the new pro-
1 to 3 cruta on the assumption that -
which averaged approximately 25 per-
and ciriling use, Armad form have been
that the DO persent excess profits tax law
poist we set forth anven factors found
would obtain double the revenue The
Fruitst
ent increase uver the existing rates, n-
supplied with 2.007,000 fire Testamia, fur
in section 405-A of the proposed bill
fact la that we centrag les than half
Family 1
Sal
If
sulled in the Post Office Department
which we inspited original plaise without
did not secure (all and complete elimi-
which Tastime exam be taken Into con-
the revenue after the This DD (m)
actually receiving less revenue at the
soit to Government Printing Offer. Armed
nation of excess profits. This inequal-
increased rates than It did at the lower
Prom have also been suppose with unflilizos
sideration tn determining excessive
cards - increased.
$75,00
119 in our LAE law and the need for
of my military missis and my any mis-
profits, During the writing of the ME
Mr. GAVIN Mr. Chairman, will the
NO.
LIKE
rates. In all these cases of decreased
sala through the D. o. at Inco than actual
repricing et Dew tepes of war material
esotleman
para
I affered en amendment adding the fol-
577,142
revenues the Department ear unable to
not previously manufactured ME pro-
-
- Chrer 800,000 soldims moviest gift bodie
lowing words to (vii) section 403-A:
Mr. HARTLEY. I yirld to the may.
-
11.24.20
NLE
make any tangible reduction in erpendi-
detailed by our members Increased third-
daned is the mily banks fur the continu-
ance of the art. It Is n. dangerous law.
PERMICIAL trundes M reconver
man from Pennsylvania.
-
34,064,927
LESS
tures, and la deficit greatest in three
class pustage rates would force us to atom-
101
In the report of the committee you
Mr. GAVIN. I have Mme figures here
pay
3,000,500
years when its receipts from postage
- mailing to the members, who make It
B labe the authority was from
48,898,300
1,217,346
that may Interest the distinguisted Pm.
under higher rates was less than ordi-
possible for us to continue this subsidized
the Federal Government and plans IS in
will and the following statement on page
DIM
tieman trom New Jensey,
tardy,
protuition of the most vitalty needed -
y
TERMIS
76,600
the hands of an Individual. The con-
glows total the and a
M at the conclusion of Item #:
-------------------------
1,000,00
In contrast, the Post Office Depart-
tracts are renegation under edsting
Out of AM total estimated yuid of 11.-
the armed services and for timeste truitling
Tour summittee believe that to
ment is now operating on rates that
Amonges chillains.
law, not by standards misblished be Cop-
pota consideration should be
901,000,000 in excess revenues valid by
encourage the use of postal facilities and
Item Jointen ,
gross in lia tax laws. bos by RM will and
ener to the Bowncial problems in consectant
the committee, postal rate changes 454
WIED receiverence in applying factor (a)-
The proposal to double the tales of
notwithstanding the fact that the De-
Contraternity un the Precieur Alonk.
whim of individuals appointed by nemie
estimated the produce To
uf administrative tranches of our Gov-
portage on third-class mail matter is
partment rendered free services for the
Contractor after emitracior appeared
1952. when postal volume and Invenues
designed to raise $74,400,000. The pro-
Government departments amounting En
Mo. November If. JHJ.
emment, Truiy K can be said this il
before mir committee and testified that
dropped to $569,000,000 the Per Office
$154,000,000. for the fiscal 1967 ending
Fue A. Numar, It.,
un-American
Department suffered a defic)] of DM,
pesal completely ignores the law el di-
Mr. Manime Karur Charman of the
minishing returns. The estimate of ad-
June 30, 1943, the Department had an
that Part Office Committee,
the registration of their profits had
$85,000. Agitation at that - for
War Print Adjustment Board. terufying
removed funds needed far post-war ess-
higher postal rates to lave the
ditional revenue is based upon the post-
operating deficit, that is, cash deficit
Washington, D, c.
tefore the Wass and Misco Commitive
version. Our manufacturers must beild
age actually received from third-class
without any credita for such free MET-
Our Durigo missing kendquarters ADDRAIN
this expense, was defeated for the soru-
submantial reserves for port-war conver-
mail matter in the fiscal year ended June
less, of only $3,543,000, and for the 12
FT mail for node for missionary
on Replember P, stated: "The rengetia-
ment that the deficit could only to wiped
were Proposed increase os por-
tiun of ⑉ maintes is . dangerents and
Mon if they are to immediately receivert
out by maintaine low raim and building
30. 1942, aggregating $74,378.000. As a
menths period ended September 20, 1942,
4D nas vill - the Instrume to -
to production and take care at
matter of Det the postage for third-
the Postmaster General abonunced that
ministers by $15.000 must your This may
sistute." but fater (105-
up portal volume and revenues Time
a vo the stounds that "We are in
our unemployment problem. The pres-
has proven the of that argu-
riam mail matter for the facal year
for the first time in the history of the
lurge in to ORANG mailing appeals, thus BANK-
ens policies of the renegotiating agmire
ended June 30, 1943, was $10,000,000 less
Department the total cash receipts
pering religious activities and taking from
a and destructive situation."
ment.
Representatives of the War Department,
In this regard are not only unfair to the
In 1942, with the same los N/A así-
than in the fiscal year 1942. This de-
aggregated over $1,000,000,000, and that
the Pass Office Department the great sum
manufacturers bus they will prove dis-
CANADA in postage la due to A. number at
the Department had a cash aperating
which we now spend on pottage. Pain FEET
Navy Department, Marilime Commit-
astrous to our future scuncinie structure,
profit of $12,000,000, outwithsianding tvo
ser not chjection in in postage
ing in 1032. revenues had intround to
sion, and olber apencies authorized to
facture, among them the shortage of pa-
ase
In THE opinion It will be much better for
and the deficit 9M redued
credit was taken for the enarmous
renegotiate regiracts appeared before
DEF and curtailment of use of paper by
Birt, BALPY M. Formative.
the manufacturers to retain a portion of
to $11,835,000, a seving to of
our committer. There la no drubt but
order of the War Production Board
amnunt of free services rendered the
exating profits fnt reconversion rather
$195,000,000. For the fiscal year 1943,
what they an honest, capable, and -
revenues are estimated as the all-time
Generally speaking, the postage rate
uther Government departmente.
BANTIMURE Mr. Number 10, 1M1.
triatic. They protected visorvusly any
than open up the doors of the Federal
on a large volume of third-class mail
The Pari Office Department has a.
Depensentative fels A. Are
high of with an
charges by members of the committer
Treasury for post-war reconversion
make is 12 centa per pound, subject to
minspely an first-class mail matter.
from no 000 Committee,
Washington, D, D.-
leans,
deficit of only $2,543,128, notwithstand-
that they had shown favoritism as be-
the Postmaster General Walker's IND
minume charge of 1. cent per place.
This a the entr class of mail matter
Mr. KNUTSON. Mr. Chairman, I
Date the Wass and Means Committee
where the law of diminishing returns
The proposes income la purtage nice,
tween manufacturers ni individuals. that
yield & minutes to the gentleman from
statement that additional revenue
dines not apply to the sacie extent as in
expecially == mail under exp. would be =
they bad used dures in any form to N-
proped this rate would be 24 centa per
possible burden 20 Hally Trinity Fathers
New Jenes TMr. HARTLEY).
amounting to $103,000,000 would have ac-
cure the signature of the contractes nn
pixed wills a minimum of 1 cents per
the other classes of mail for the simple
through Increasing PAR amount privitage a-
that they had in ne in-
(Mr. HARTLEY asked and was given
crued to the service If all governmental
para and on mailings of Unterd class by
reason that there can be no competition
pepase by $00,000. We werk financial aid to
permission to revise and extend Na re-
departments and REFORM had brea TM
who mad only small quantities,
with the Post Odter Department on the
missions and studeuts for
stante destruyed ur damaged the curpo-
este structure of any corporation, and
marks in the Racom.)
quired to pay postage on their free parti-
the race would be increased from 14
transmission of letters, whereas other
through mill appeals. Increased cales was
Mr. HARTLEY. Mr, Chairown, I wish
alty mail as proposed under the
that they had at all times given endit
for each 1 ouness to a centa for
classes of mail matter move by compet-
uvole to to suffer importable Com wind require
and incoursement to manufacturers In
to address myself to title IV of this bill.
but With this adentional revenue, the
log methods nf transportation, or du not
to complete elimination of mir -
Fach 2 ounces, and subject to minimum
I do so not because I expect to change
service would have shown a profit of
Bro, E CYPER
neder that the manufactures reduce and
of 1 centa per proce. It is obvious that
originate nt all because postage rates or
Maly Frimily Fathers,
eliminate cost a far M pasable Despite
any voter fare this atternoon un have
nearly $100,000.000.
Use mail mailer if third-clase matter
rálas et transportation are too high.
Perk Maights Avenue, NA
the protestations if their conduct of
this true reserved from the hill, last be-
These figures and experience quil for
in small quantities, who now pays the
The Post Office Department must of
the prinentings witness ufter el/ors op-
cage I want is call to the stiention of
themselves and I respectfully direct then
livels per piece cannot pay 3 cents per
security maintain 5 encrease organi-
Tom Invoice
peared before our committee testifying
the Committes what has bend done by
to the attention of there Member of the
prese for unsealed circular matter.
gative for the handling of first-cipas masi
Milliburgh, N. 19, 1941
to the rentrary. I am reminded of the
the Committee on Ways and Means with
House. Low postal rates encourage nat-
For the large mailer of third-class mail
matter The lower rates on other claims
Mr. ne A. HARTERY, Jr.,
old adager. "Your actions reside no food
reference to postage rates,
Ings and produce larger volume, higher
mailer in balk, the rale of 24 centa per
et máil matter, such as woold. third,
New Poit Office Committee,
I connot braz stat you say."
I have profound respect for every
revenues, and higher prefits. Hight
pound, or & minimum of 2 cents per
feurth class (parcel post) money orders,
Washington, D. c.
Evidence clearly indicated that patri-
rates discourage mailings, reduct volume
will likewise be forced to curtail
registry, Insurance, c. n. d., are in the
Due Bra: Dur home for cryben boys in
member of the Committee on Ways and
etic, capable Americana making an has-
and lower revenues. and create orticits.
milure of fillers-in and rater generally
supported mainly by
Means, and I revenue the tremendous
tremindously the volume of mailings
Therefore, is is probable that the Port
in the pmt have been Exed. for those
by mad. We chject to Ways soa Means Cam-
est and invaluable contribution tal the
task they have had in trying to find ways
Mr. HARTLEY 1 thank lbs
mitter proposed IDENAME in pai-
was effort on the home front sere per-
and means to raile revenue.
man for bis enotribution. ever M
Odio Department would not realize as
claims on a bads which will encourage
age rate, is u would deprive - of facida
seruted by Individuals representing these
Title IV is & las on postage. Frankly,
did take me off my fort vést effectivels.
much protage on third-class mail under
the Use of the mazimum facilities of the
nacessary to cara the orphans. Chiler pm-
agencies in the renegatiation of con-
I do not think M ournes within the pur-
Mr. KNUTSON. To: but be 2> make
the Nahe rates as it now receives as the
prestal establishment. The results for
post EME eur mailing may bate to be dise-
View of the Committee on Ways and
ins - good aperch fur the
lower rater, Purthermore, It is doubtrol
the 12 months ended September 30, 1943,
continued, great to the Past
tracts.
which enabled the Department to show
Office each yest.
With this the committee
Means to deal with postage rates No
from New Jeney.
Vhriber the Department would be able
Mr. HARTLEY. That a FIRPS il actes.
a cash operating prodit of $12,000,000 and
Bicomily
and about En revise and rewrite the Re-
beartings were held 8 this particular
to reduce expenditures to any apprecia-
Run, RED the Kran,
negotiation Art. The results, 1 am sure.
subject, and the Post Office Department
mie attent by virtue of the reduced mail-
at the same time render $154,000,000
The gentirmen has mentioned pepalts
o, M. Cap. Director,
mail. I call attention ne the not Unit
less
worth of tree services for the other Dor-
are cell satisfactory. There RETE the
was not consulted, nor were any of the
In 1923 the Past Office Department
ernament departments, for which they
to the committee who wanted to repeal
thousands of small business throughout
the committee report stades that the Post
Parm é Co,
the act unmediately, then there were
the United States who are to be severely
Office Department is operating - the
Two same experience with higher rates
received ne credit, should convinoe all
New Tark, N.T. Number II, 1043.
others who wanted to greatly expand
Use the present rates on third-class
fair-minded persons who wish to lonk the
1nd If they did what they are supposed
The Nationable Fune & HARTLAY M.,
burt. particularly by the revision of
the work and operations of the act,
third-class rates, nor were any of the
tax de and took credit the penalty mail
that matter, and the higher rates THE
Eacta equarily in the fare that postal
The House of Representations,
rates on classes other than first-clare
Washington, a c.
Aa nne metaher of that committee I am
charitable and educational organis-
they would show & prufit of ont
4n a decrease in total postage
PROVIDED The Post Office Department
mail should not be tampered with or
Deas a - know that you will give DUP-
ennvinced we have made givel improve-
tions that depend upon third-class mail
000,000 We Members of and
without a most careful study.
Did consideration to the recommandation of
ment la existing law. 1 do not expect
for the solicitation of funda for their
accused many times et being very nit I
aum had similar disastrais experience
The following letters and vires foretell
the Home Ways and Medical Committee to
to mention specifically the many
work.
in our - et the tranking privilies
with the doubling of the penny postal
the inevitable result of this tax on the
Increase portage Tates, Due por
changes that are proposed as they have
Title IV in beed on the DAIVE wrang-
wish to make N computitivo to show yest
nis Fate in 1820, when It was increased
have status all the DEM. NEWSTER, we am
here frankly discussed in the compli-
from that by the postage na
where the real CORP of mailine - n
from 1 la The postage formerly
Postal Bervice:
" Y.
that you will decide against the
tee. I de want to mention one lien
We are ening to receive additional CITY-
to apparent trum the following table:
received from prony postal cards almost
-
Ilem Fro A. Jr.,
entirely disappeared from the postal BD
Part Office Committee
Plat. Cherr is the Implutable that that an
ollat hanks, In,the fiscal years 1933
Respectfully urgs immediate revisions-
income in postage CARRO a Informet by A
and 1934 the masimum wartime rate on
Use of proposed in past-
marp registion = TOTAL Time there in .
No 10-0
10058
CONGRESSIONAL RECORD-HOUSE
NOVEMBER
1943
CONGRESSIONAL RECORD-HOUSE
10059
decresse revenue of en break. 70
- AMOCIATION, Imm,
THE participarty in The
ential carefil has
I've appreciate the magniture or Lbs Test-
Fee Tark, Norember 1043,
would, if por tato effect to no di pm,
ID this letse, which Informas the
the or - Pratal Few
in Use papir - general bustness,
vita CDP example. when in 1817 the TATA en
at the Cosmittee on Ways and
what 4d Innome - State
and th the national essessary during the
periods part einta - Increased to $ canta.
Representative Tup & It.
Office puliting,
timilly way. put - and of - to -
the and the rejort of the committee
Warline and in the the di pur in -
revente from this class of mail immediately
- 400 excluse 18 has come
Washington,
E have boxes growing NOIS
Departmental sours have tes
dropped Imm to
de the of the motion be
to to It is a business represted through
officials and the tropection farce Trans
Becond, the Portal Service is as semetial
My Days May BY saic you
genten and to the planers of the
- ust nears M to the Desability of the
form than HAS part offices. -employe
therein represent, and DALE aum
traded their were hours to the stand But
service and should cot be engloyed - - -
to please egis spainst the increasing of post-
itregt the medium, for -
mm then $28,000 persons, in bindles MED
Ing medium. It plays . part in the
- cetes from the present nated A Dew of
the at . tentury, Our
incommendations - may sealn appropriate
will tare nnd been able thereby M obtain
your emamistable mate priperty, AND étreet of
daily life of the Name, and # should all -
my are as Entlows:
circulation is to - to ope
of the Committee on Ways
the retue of more than
the compost mangower naturary 4a per-
firm even our daily taxis in the manser
First, this will be dimpolntment = the
We Mt the outbers of the Mation son
ed The Postmaster Orners. la havely
и
M
fellows:
2 an intricate Involved and sumpliested
classified - hummy,
and with the throught end deliberate -
proder to planters bith M phone
interprise of - and treatmênts
Third, the present postal - dring
relating of revenue - pay Generament -
and directed 5 procribe after
inderation that all of UN B the Pressal Birror
good job in producing genente, Postible
- because people will just endure the
variaties to plant is their - quantity
day-to-day operation. Da wrt la must a
respire - stadulary -
- of the mails. remember rightly, -
of and regulred for given achage, example
nation us4 but tot Inter than no
arting and the best is
General Wallaw be said that if all -
With the appruragement we Bate retained
mental capariments and agencies - -
1817. when the - rate on portal cards -
M well to cancing note
mg the date of enactment of this NOT,
This trugs interprise to operated with . main
from Congreer In revent and result-
dentiled, the extension was instructions about 50
parant. think this tutida trae in all classes
thatructions próducts. for preserving the surgivas
previding Enr mit Intreases in
(If besdquariers citime Interned ut LATT per-
quired to pay postage DD Sheir Due
the the desire of Congress to - than the
the partage applicable to mail matter
- impected, sudited. and Matrieled
mail, the Department world have shows
of mail WITD our exemption and that la air
- well-known last that the
Postal Berrice la implementad subsidently B
star with CMP (except free county nar-
in iss exchings by an time if
prodit of $100,000,000 in THE
modort its state = businessibe Mistic
mail, Benefition believe Date people will pay
entarged the pass 2 your by Vistory Birth
an mill mill matter of the time class as
il
8
have in the maintime stimpled. within the
Fourth, the proposed peroma tax 6 party
mota to end en atr-call latter, where "
movement, - & to the
- - in order that the revenues
1: M that the important sed is-
limits of available personal, to make . start
end post would the tax egainst
D/W only eurta e senta. believe all the
willing of the Parten. There la no when
the - - class and in the case
setting work - every and 01/04/2020 can-
IMV [ of portal which
the mail-cinder house, and made particularly
siber proposed classes of dall #: the new
of reching and rerving this Fail -
reserrable classifications within each mush
net be clarried toward a/tequality with the
are directly related to cata, and
the and industry which dima the
railes will simply reduce treminaly the
ber of - except through the mad-
VIMA will fairly approximate the sorts and
limited departmental and importion -
nine
MILK di the business with Vistory gentrate
wornt of produgo and 7ur example, the
order division, made possible by
- attributable thereto, and to
amaliable, to even sure the out to
Statement find this managed upon
through the mail. n world - that this
DETAILS in money orders will make # to-
service and respectible retains,
uned - regulations, from time to time,
with the tremendoms TIME at dity-No-
revenue with expenditive figures. It has
- la almo Allested against the telles to
prodiable to and money orders, and people
We remaine the Streetly of higher use
to carry ous the pur-
or sperations
memed to me that the - pode the nac-
runi - 13 le drives that
- - tank checks in plans of them.
(R) - in critten to property finance the
par of the art. The of pastage pro-
These TIMES have HIG. eme prosected
apparent la n) be terms IS the valume and
the people living to the larger uma have
Secied, such so increase will cause 20-
- a complete victory - & person,
ridel - = with regulations shall tecume
to the Briss et the Budget and to the no-
costs. have tate for - use, - Indi-
- Issn occusion so purchase by mail.
shetten in all claims of that are sent
but M the same time, if you in De them
1 In liera of the rathe - genelded
sommittee of the Appripriations Committe
eased in the hearthgs tefore the Aggrepria-
Lower poidal rates mailings and
to our buys in the armet the and tn our
of extting below the is
- with ressonable - after Be
Less per in with the 1943
tions Committee last year and Again to my
they produce inrger volume and bigher me-
jotgrast that would be a calimal caluming.
alcured, - - world - to M
previsigation of each regulatives as the Past-
cates for the Postal and
MEDICAL report for the their yesr 1941. that
- Higher postal retes will have . dissi-
Third such an Increase will drive many
postal rate en third-class matter, - -
- Goesi may provide them. The
again in the past IAW treathe in consection
the past of portal sevences would KIGS -
on business mail and tiring
missing of - and thus
slogs end and the Commission
prescribes pursuant e the prem-
with the deficiency appropriation tax 1942
resibed and that postal were volume and
Laste reserve to the prosect
submatically the -sill be refund.
would wake up with disinisting returns the
une et 12/a ect GRAIL M published in the
The Congres sympsthetimally resultered our
mata would Insurance to disconsing grent
Very truly yours,
Our firm discuss not fall la that class.
- as developed back to about 1917 within
nationality problems, and - were allowed,
paral trustries with the Appropriations eur-
Pero Dr.,
Very contially yours,
they Increased the penny postal out PAIN
May de the SAF that hourily ap-
effective his 1942, for the Denal year 1643,
commities be par terture the et
Hame Com, provident
Trur.
from
1
to
a
cands.
pour proposal that the Primane One-
Der budget Mail Administrative plan-
the staind this TM my #gitime M
We sollois your support and -
PU be and directad to and
ning, 4. tuber executive plans, and IT mine
the point partam of the patal
Total Sine On
THE Ce.,
operation in & apirit di pasition to all that the
- the the perpose of
sincient plans Jur the departmental ante,
INTERNATIONS M The extimated for the Be-
Date Mast,
Chicago, Nonember 1341,
present postal nie be and remain - story
ad visitying portal fates and noting THE-
and un additional inspectors.
est your 1983, besise nate more staudily
Exe A. HARTLEY Jr.
Hon From A.
are for the time being.
No with planse
our milimaties für Chme requirements WERE
mumting. 1 the M the - this -
Mount Fort Office end Port Brinde
finase Office Building,
Tours
Itemio The proposal is the now important
substantially twair, and Date bund agon .
aboutd Drive signation and -
Committee, Washington, c.
Parkington,
Company Baco,
was VIII endere portal bistory. The zined
peacetime portal REVIEW, Bubsequently, the
data In crée that signature canges in the
Mrs: We distre nur = provide sesure
50. The sured and quicket
by R. Common.
too this study NN - surger. I text R is
Crupen allowed the di the all-
trund of pratar effects might in Enrought
the proposed Increase in the prinal vatas THE
was for Cropies to make the United States
Servicery and
beau destrable that the hearings to Bill-
diffirmad post-ofice to begin April
promptly M the Allentino of the statutive
being considered by the Blower Ways and
Postal Department an instruct begar to
publicity This la to the test
1 and united with NED these
and Impalative brunber of the
the family of Government signature la to per-
Mail Postal and the host a
completed their preliminary missing, wader
for treasury artion
Massa Committee.
Tax Co.
mit the Ways and Mrina Committee to nas
EMIT GMVS M well n should BRIVE sine to
starts then on that com tal -
is ventre su keep informed vermitty et the
Hills that the Postal Bertice should
Anderson, Ind., Resember 12, 1343
- used AS a means of The pro-
portal
nies.
may la the proble . better
sume qualifier post-office inspectors.
insurations, to February of this year Insu-
The Pun A. HARTLET, 2t.,
That statement - straight from the
dan et the Postal Service and desit
past Intreases un 20 prest that their par-
Bouse Office Building, Washington,
These recommendations to the
sured system of monthly exporta LTD
men who Day Use butters
to à mes classis defined public polity
uther purposes, and not tue the expense uf
large mailers of ans- and third-
Inco Ba: Being very boary mall Lawer, --
int the Appropriations Committee -
of the largine pat office to refert promptly
par can only be the raising of maney the
DATE to esta the follow-
are naturally any much the
unde - care for . existing - the
trends to paral business While the reports
the Prat Office.
class mailers who Che nine and
communications to your committe
possibility of increased postal rates
Department a. your stock. Defore must me
are out DESCRIPTION and M yet do not rontato
The rate increase would be am Untair CA-
who have been keeping the Post Office in the
1. That the proposed legislation most that
granted the was - upon u. and to visits
the distall which believe the Department
black.
We would Das to register our
the unity, Desrings, and alabority embrace
brought INV and greater prehima to the
abouto have continualy before It that
crimination against certain of box-
Every large national taslier % have tailked
sgainst each action for following name:
our provide rates and Tales for all
estabilshment. Wartime postal any and
Limis orporta ATE assumarely
- The example, for 19 yours - have
to (and the THE of 0 of was ac-
Increased postal retai - . missing of -
précimed - the Postal
shipped simple show to the
posten had DE to planned
of the trendo On The Train of this Infor-
cust for some places of mail mat-
Ben a sconomically trearund, - IS 12 a.
That = time Unit be prescribed for
will glound ID operate. Not in
1 facil year (94) as 6 while will
by partal post, The detailing of the
the Drive it retra but that the propress
share in Inresse to Revenues Ute fiscal
MS sub your) la uniterably oppoing to this
must a currellment et Whe Mit ut and when
e. and the increase of the money-order
provider) a instrust and trus Mia entire
blighting legislation.
NVER postible. and this will at least
Issue direct dirt she spudies and best-
year UNL and the school postal defint will
THE would não time est of our sizume stout
pustal performed in the application of EDH#
an types 1977 par. The relaing uf Chem tales
sould possibly gata from IL not even
defeat the purpose.
- BY reguir promptly:
promitions - - have the gratinumi TAXE
be Lire mailert state 1826 The Depart-
WHINE - afters the mall-order times who
the individual who mails single letter a.
The time THAT give va grestest -
That De implage of the proposed leg
at weing NO IS that the procedures are Tell-
and Than passed the park nd TENM-
- you the wirk-land volume if
do - - c. as the nin
day to . substier. autor, ur marina. And
in the proposed Increase or 5.
Le emended to enquire that
bread and - more effective
Increasing und will table do sin In
se - to be
employee who máils, If who receives mail, or
Doutling this programa www.ll
Bills to) fates tor postal to
the extire Postal Birtabilishment.
- splain, there will be - substantial de-
who handling mail and delivers It to the No-
our postal mat emething move the MAY
care, and destications within cleans,
in the rubbe shortage issued to
The mate Increase step the Out-
cliza in postal revenues for the Best par
time/s pod after would lose. And this in
meth 16. que strage - 40,000 =
Minis tim Government has the monopely,
the so Das Bronght - the allogither GSM
policy en Solding the Doe - prion,
1942 and a substantial Increase in
By . Targe Increase In postal rutes. them
Wky: Instead of detibling present partal
shipments per mouth This income a
la live 20 OF to fairly apprintmate the vista
polim ut finding ways and and tax-
volumn. This will miss MI
would Date to be = extrapending locesar
resipts IM sme area to dream)
pense cannot be passed alring a a per
for expenditures respectively attribuladas
vantating glana for DIVIM the mails over
greatly extreed and is a sub-
it. will individually - the amount of mail
chaser to the tue of present prior -
timelo,
per year. notwith-
in pries. Many time would have to request
stential postal drügt.
mailer
in
malt,
St
-
bigher prim callings for their pots, far these
Zust
as
that
Bus NO. Increase - apour and -
That the priçoind legislation be
standing of rublur supplies
To what extent and to What - -
excessive proposed muld tell be
nuw of the (-empt poid-card fate TAX
ously Impartion - business.
la require that mais and expendi-
United adaquate supply of rubber is made
money this will be refected I - n/d yes in
started with premit estitrigs.
main thank in 1817 cut the yearly
We register the difficulty of the poties
law la respectively attributable
available. this will be . problem of readjust-
position to approximate the 14 an
revenue of $20,000,000 down to
Furthermers, the time traives eight will
as band and realize That you are doing -
whe cass, class, sud classifications
not = the first magnitude nocemently IS+
entirely bm pinar to postal Ren-
To eum VP the arcosed Antiment: The
1 m AS actual lue ML IFFICIAL To 12.
Nation's matters do not want If The recipt-
thing puacible to make en equitable num-
dise, wherein the Ouversment dom
mot changes = relites, achedules,
schore when there lisa been decline in postal
140 love the menopoly. and that the INDIA
and operations, not mily dur-
amplies WW would pomitry Mandon - tra-
into if mail do === PAST it. (They are all
betten d De DER Secies. We - - D
INFORMAL there hM also ben - decline By
continued or shipment to favor
ww be possible for you to Dad . pur -
- lis fixed in the light of the general
Ing the war period. tran requires restjut-
paid por activedy curre-
mailers themselves) And Wt. who - the
of prepaid paral port, the listing Tut the
- et mail naturally en net met TL
able and producted and that
Min sed Las public Direct: and
menta of comparable completity after the
spooding - nevertheims retirer persibil.
n wode Mill the "potee that bays the
rater will be mestinued without 1
That the legislation be smilet 80 that
war.
The Department, therefure, mide than NEWS
Post Office the provide revenue they get
from Many firma would
Beparthilly yours.
of the Partmater General -
In addition to all this there have come
before. amida to equip name with openting.
golden not for the Post Office
THE
willing . file at postage or & Date for
tremendiras for additional postal
volume. and me data.
time any from the mails to other forms of
distribution.
Therefore, - represtally appeal to you
to vote against this periode fall
K.
- not diatre used €) days after the
work and services me other departmente
To (Stain and analyze them data
Therefore - to the proposed -
Nives Exing the rate = reported to both
and agencies of the Outernment to - in
end to begin promptly the DIRECTORACY budget
Respectfully,
of
crease Burno of latalin, - discrimins-
Congrast,
the - efort.
and planning sux un the et-
Time Desure
Omice or
time againe) extrain - BE la
Washington, THE
AA my and before the Bumani
For liese name Use Department cannot
fertive date of the 1943 appropriation, had
favor of M . - of increase in
A. Jour President.
1bs Budget and the of Lbe
inudy and plan adequately to improvement
to resididate certain plana shink - per tu
How. ROBERT L. Doucarros,
onling prices - many end M en We
Comes Bota, Emergen,
Chairman, Committee os This end
Committee last you. I Indi-
and simplification of speration and manage-
effet 1. 1942. I have established the
advised plan which DAS result In - my
- that ta my opinion there wes A real
ment procedures, por own it - the enstin-
Office of Budget end Administrative Planning
Highs Increase in review due to a transfer
Rockford, DI, November 15, THE
Means, House of
Directly trie a ententido study of mata and
vous and mentially and and taxe-
and Jaid duwn . program of work Ter #:
or present Post Caffie visitime to other
Hm Compression Pue A. Human 2t,
Weshington,
end Att modigos application of
nue studies del ISSUE be made, DE cão If
have brought tugether under the at
House Office Building,
B.
distribution,
June Date 25, Mr. 1942, CHARAMAN: which have certail action
your
Respectfully yours.
Washington,
The - of the the purial busi-
plan sufficiently the the 9
Acemuits all the wirk of the Department to
Detemary to mes the pressos daily changes
inspection with reparts and comunts Matt-
Mr Dues prom 78-
- the part et the Post Office Departments
General Manager,
Insues indicating redical (arress the postal
respect of postage rates - second ant -
10060
CONGRESSIONAL
NOVEMBER
1943
CONGRESSIONAL
10061
opportunity for working out is
Aurther
and
and the
visas
ENTION
la
the
I to the remaining centa of the
above
DM
relations,
prevent dynamics of the national have seun-
ser baste each conce or traction
has
the
Cases
bird
and
will
emithsw
to
a
mail
$128,200 - time Duresd et Accirate and
-
earring
in
ener
-
thank (first-class numbert mails @ 2 esta
Lost your started the WORK of surveying
dellar
expended.
national
repundt - bearing from upon the the various relation claims of the of
for personal services - the Dutries
-
to
la
to
4a
per casos, or fraction thereof). Fir the 1%
en mail heading and Custital apecations
There remains but ans altergative in the
var
after
or Odumbia for FOAS a
modern
postal
for data in united shirt there might be and-
been
Privacy
DO
such
time
derived
of - and la to matrier this
- mail and the special certify and the costa
the Pratal Service will dalliver E-outson
of $180,001. est 80.50012 of mich dellar of
great
thing
if
and
-
BAG at printed matter to any portal patimn
pistal expenditions, The factual statement
the first time cumplete and Instrually
togal and - or service that - in the tary
-
great
at
and rependitant attributable thirrie.
anywhere in the Called States. Is the main,
somple - for the terpora-
tradition of this United State Postal Berries.
plans
Dar
Reld
il
that the average yearly estary of the MI offiv
meet, and transportation buildings, поща, N -
TM Lingest Date: in this relationship be-
there is little diffirence in the expecie in-
claim and employees engaged - this work EN
parol and of postal repersitions,
A step - Lhis direction world. -
- quital revenues and aspenditures, as
volved in the transmission end delivery or
81,975 a à sufficient - CD the
and for - in the assiptes of of soft.
have Qte effect the ist artive-
growth upon the is repectation of father
de pripanal of your cimmitties Indicates,
2-mails for which the Postal
of importance that XIAM the attached to this
The prolimitory gettering of the data DAS
les and dispatables, world redue the failli-
pregulation
I
patal to service " will M for
Hervice orata, and the
birn unmpleted and graphic charte
Line of the Postal available file intre
business cycles had that ethin - This the
mill NY have brought -
piece of third-clate maller for which the
vital, and professional
work.
them Sold operations in details Date
by the public, and would timin substantially
mini) possal United business, to declining this elen TM -
e 134 - that Inno title attention
Postal Service minimum 1% centa, camps that
departments) officiate and the
the - of the postal organization by the
tal volume and puelai manpu. number Provide a R.
or
paid to the relationship that exista
the third-class matter times tud resure the
by the sympathetic interest
trapection trave for attaty.
⑉ tarrying
MINIS paral rates DD the DDS hand, and
same priority = handling. It dom réquire
displayed by the Congress in our management
As - of information childred discrime
extivition é redical strp would be -
problems, have contribued will the over-all
remove, proditures. Md tx Il MOM Bag effect, love
repaiderations and the public wel-
comparable of clarical work in -
- proliminary survey 184 Department bas
trues to Now tradition of the Department and
Portal that deflicing in - the
Minute
nention with the collection, distribution,
amonting, reports, and soit - in cos
in - the eiser, Notwithstanding that
been able to eliminate and collections
departure from the patiental policy
- ritas and ATP involved and -
transportation, and delivery.
travel affective July 1, - have laid dren
persunt By are Guyernment sizes the crea-
declining mura volume.
pm it M in the public therest that they be
Thus, n may uppear by the
plan of sperations. By them - Date
reports and tream than In MY the persod to
madern posted bistory. This has posst-
Mm of the Busted Entablishment
To period of business Registration the Ad-
SMIR widniy and more often -
that the portal to or rates charged du not
time of improving this with But It -
DIE WITHOUT En any way from the
Anrther and area larger factor in this rela-
to public services.
mest the experie eleminable w the
sincerely without anything that time primintary
justapent of placed expenditures - fincal
address of aperations and without dispans-
turnship between revenue and expenditions
DM naver been easily managed. Bighting
to grinté Business epate have always been
Many my that the ARTICLES are in the
steps with ndt adve the problem of
the WILE namedacy describe and
the work and service performed by the
in the early thinks
principal orgaideration to fixing the rates
public The public stat have an in-
nanpower M do the job as is
should
be
dute.
data, By the of GAMP report
Postal Estabilahment for other governmental
had the experients and Delt the either a &
if clargie for the product, In portal trusi-
expensive method of qua cmmumication
form. the Forted Service - sees wrett
agreem. Other transiber and specion the
creared postal Innome and vistas
- putitie welfare has received serious con-
this apecial delivery, tithers nated that
The destrability of sime method of 0045
year OF of préparting sod
Dovernment motivo to rely more and more
dirigged sharply with Be darline la print
in the firms of rates, It is proper
bulone and private equire an -
Accounting has been recignized The many
the By do-
upen the postal organization to subsit and
activity. The public fax
1855 - policy should be continued in some
nomical means nf security fir the United-
jean. In the fiscal your IW7-4 statistics
priming with our prior of - reports, the
implement their work The free mail prin-
use di postal services und that
timest, in fixing the postal fate
non of small - of many
will and use to above compartacor
work of properting sixt verifying move shan
lego governmental and Libe pro-
meant Sega partal and eni
information without be given to
orders; will others my that industry in unreadable
of revenue and rependitions by claims
extra in time and sob
obmounly insu supenditions the and
de include of actual nost as well as to the
to develop and increase imployment mut
mad und special and and the remits
washing for eustodial and maintenance aquip-
them sn visa Department with your bse bmo
entias for quatima located in
transportation VOT required tu - -
patrie withing It MRIMA to the that these
have mests of bringing products directly
that may TOI politived in the Anoual
buildings and used by other Oct-
to the stiention of prospective purchase et
Report of the Gevmi for 1909,
By the x SOM aroup
mails and provide the serstion. Director
and factors have DATED been
This - analyzed and number format with
of reports the Print DAIS
email apenicier, are Important and well-
d,legislative active, though -
signature Integradad = postal raini
nominal be tühd-class paugh
non entry ested the getted mail or
- impentive. This adjustment Invoice
IN has here sale that from for
Tates.
certains motifications if the Bughes Commis-
known entriss finalished by the
BMN what LA 1979 Important, IL
ment.
reventes and expenditure took maus the
of mad or postal services approximate
Surmanting them . the
sing in 1911-18, tut the -
Invoice, at - time tn the modern-day his-
and via discussed by the payment
- milla and expesititures attributable
Actual intangible motribution
threen into cany almos
tas atiminesed the vet of propering the
tary have as many certices E such tream-
adjecting every employee an the Formal
that the Printal by The service
thereafter with the manguration of
repuires inmilied and the mat un account,
special delivery A
handling, end distributing Lives each year.
days volume town experted of and required
At this Name the Postal SAM
apacial delivery for of to emita the A luture la
has crede to the unity If the Nation Umugh
partel post entre as January
In muster that for the guide
b be furnished by the Puntal Distribut
accountand TM more change in the
find for vistate Another statute fixes a the
the diseminating of information and
The matter then means in
the NAME - - and the
Registration of without resignstration of =
cycle, It is confranted by pm, whe at this
of resits to - paid the apecial delivery
eige, and the more obvices and " su being
uned nel. when the Joint Commission
processional be emplined. conde settime, ent
any ellem, rebanding of mall for
time ungredictable, changes in Ue tellmit
Ameriger, The cost of the MATER work m-
in the pripres and growth of business and
Gogna en Postal Bentite upred that the
montent, and en that Instructions might
with = pollal facturities for
lew - and plant
great shifts in great
- this transaction la-tant at all som-
industry through Ita fatilities
Department the work of obtaining
mobilization of millitary form. and
with the which
for um information 424 enteguarding at con-
note adegosts information with respect to
more than 700 intillery units, tree mail pent-
an attent by personal made DIF:
lago for mar armed form, selling and as-
emilible to meet postal operating -
and infusties at medical -
the cont di carrying and handling the no
RAID claims In the Postal Dulletin effective
vonversion of business to - unmairs, ALL
to its patruna.
eral class of dell matter et performing
counting the motor use the stamps
previous page, principles, and terters which
If special delivery massage is to treate Our
Minh 15, teur Il bas bmo found positiva
lane been undut in charting and
dervices performed in - public
the special services, A comprehens pain,
mied at willing and accounting
- will viganditures altributable 5 is is
not enty to surtail the di the
for Defenst-War Bintap bonds
not be mileret with milks
entracag and firma, the
the future of the at the
- bear the cost of (1) printing Ue spe-
day to the MADE we
at milling and -
not delivery clamp: (2) sending Que stamp
dimigied of public collt.
gathering the data WIA then prepand while
true Alao to redote the average creater of
have become value-
the of expert -
envelog = 1.517.000,000 Bir-
Im and meaningless
in the pais office for male; (3) charging the
It sema that portal craits have not - pel
pips publicabed eich month trem = in 2.
played by the Jains Comminion and portal
Ings valued et ut dos-
Harry to the windue clark for (4)
brea measured attentifically, In the Test 3)
The sont of printing Bulletin dar-
To this, If see address timel -
experts trom the departmental and field -
ens of other services substantially to
evented Name in selling the stemp and -
yests grest strustes Date been case in the
tres, but que to Tack of funda the with TM
mg Be manths of April und May TOID and
the postal during the part year.
the May 1945, at the 172 largest
musting for - purchase (3) clarges time
of time and nost Mod lin
TMI averaged $4,500, whenes during April
For the past yest declina effort bas been
which have accounted for 71 persons
of tertal portal revenues Total -
to the handling of the stamp in
the methods of come accounting, BUS lhe
and May 1042 mata have bein record la
Postal Berrice has not been equipped to krep
The MAIL finally plignt during
made to obtails reiminsement this start
at - 5.83 percent. = personal THE
the - Une technicary forging rec-
This saving bas brea tuide not-
agracies of the Determent for this were
enda, and reports conserning Che disposition
128 cost studies property in the light of
the peint true Deptarmer n to 20,
withoushing the la per PP prote
While the Department tas lad mure -
zum and a. decrease of or was -
improvementa and to This
1010, at - delignated pos offices of M
tng nost et CERE de product. By this curtail-
emt in the number of secks of permit post
The stemp and its proceeds. and the attach-
classe and in representative lines and M.
in childring than berefoties,
treasure - of the cost of the yearly
tedions, exacting and paintaling WORK M DIA
event and refisction of lão Printal Bulletts,
disputched, compared with 1941.
the post office seiling the stamp: (0) prof»
to be without the expenditure
minsis ta et the Ballway Mxil
MA only doe the field emitione to te as will
get ristutes restrictions and directings pre-
In the same period the number of
Bevia. The the obtained wes
sufermed, BACK the will be a saving at EYES
rece reimburament tre many of these ENTY-
bueding of the epecial delivery Jes-
of Insufficient funds to
lies On the etuis, the Pratal Brablishment
money was issued et
our word work may to for worm than not
applied la the cublet revenues and expenti-
be - the place of collection through the
1,160.000 each year.
la being only & mine fractim of
percent; the number of -
turn fry the fund par 1923, and
par -Gon of disputch, shrough the post
doing the work st all, because tragnuotary
the Im complex mentip for the
weld increased 1.004.600, or 194 permint the
the submitted to the
the expense incurred far time services, The
- or resipt or the place of Delivery: (7)
and indeffacia figures which may result this
purpose of demonstrating the postition
performation et their entries like has a
number of paid domentic registered articles
analysis and study may to -
Congress - December 2, 1824, as fair
er benefits and shat may be bid if
time attributions to the boodling of
distinct buring upon the relationship of
Increand 1.450,434, ur persont -
and reasonably securata appreximation of
- and recording 11. on surma, records.
qualifie The the driving of factually Insur-
and when is evaliable to
the relative revenues and expenditures ap-
and expedition of the Postal Es-
number of from registered articles
serutinize emaily and
reprocte at Lbe post office of delivery, and
FRES While the emple drawn
forms trom the deseport et effictancy and
tablishment and upra the revenues defind
Increased or 61.50 persont The -
attributable share of the cost of the
for DORT study may te appropriate, the Taste
plicable, so the anveral class of mail and
true the various times of mail and special
ber of special delivery articles assisted P
of setentific and professional tal
special services."
emong of sperations The Postal But-
inspection of the post office and tamil-
listiment must emitantly or to simplify
services and the esta and expenditions at-
creased 577.633, persont soa MBP
handing the signature delivery and
see to #: that the sample to adequately son-
As a prosequence, the Omper pound the
and Improve Lta and e
tributable thereto
ber of pruches of must exter the parent
trelled. tested. analysist, end checked may
ans of Personary 20, 1923, authorizing the -
- above of the poet of
post received and - -
that pain efficiency and intelligent
The of the special delivery system. Last
essuils in wholly unjustified and
titulaire of the cont under
009, et 14 pertent. This,
Fear CUICE Usab special deliveries
determinativos being drawn from the data.
which authority the statistical remita have
any may result. Serings our to these efforta
During the last mar the Fraval
the sharp deciine t= pursi stiewt
be important end is dollar
not this also utilized to sell Dovernment
- milder and the volume is increasing,
Notwithstanding the inatequery et hunds for
bwn regorted each final you beginning with
in these see offices. them - an -
As comination of the apation
analytical work, the Department has cuada
1925,
amount
of kinds, 25-cent Thrift stamps
or - than 4,800,000 the 124
Birthwer three MYDEL in terms at per-
and as The stamps. Wille the volume and
- - anye to reserved the mms consituaton,
every effort to be as as possible en
It to impossible for the Post Office Depart+
transactions in the -
minissas fee of a mmis dixed by stande
the work of assertaining CORTA. believe,
mest and the Owneral Accounting odu 40
emitage of total postal expenditures, 5 tax-
amount if Date later time they
The expenditions at these 173 -
bewerer, that the Postal has
maintain records of neb Individual item of
to be commentate with the cost
enterity in the Formal
win, in - most comparable period of this
for the month of Mar 1345 resided
Establishment - sendined to a DATION
- grally manded,
NIC the extra. work Involved in incney-order
suffered and will now suffer EFFED more De-
revenue and expenditure econting to every
and for the - ne MAF
cause of its contrated tack of familities to
attagle cleas of mail and each apecial service
or total answeat postal stipending of mine
Handling of 3 money order to-
1942 the expenditures of the - -
establish, maintate. and improve its time
by eun partinder tata. Threefore, the
than approximately TO of
atte Government
substantially more postal work than
en
increase
of
and post studies end analyses
break-up of the Inventions from the
- expended in paid our to the atti-
manage. In the ot
form at personnel - the neht IS 20 cents of
- under, - than 15 separate entries
Expenditions for management personal."
general socros and the andised expenditions
perme.
each dollar in paid out for transportation e
substantially. Busines at During May 1943 - - -
the
analler
-
-
- be made by Une imming clerk. Mark
with departmental officiate and em-
Don the various appropriations must depend
Pvr-
the basilla. By transm of statutory Units-
- office equipment ESTABLE - utilized.
playees and the ingentive service, amount to
to the main upon apportionments based
-
Last Rate your ture than money adm
but of each dollar et postal expendi-
upon - representative and as relistrie data
Hons, requirements, end directions made
-
!
no
6.18 to the peresos 28,000 are May 1941. soil case
and
taxes, Instaded is that amount are the
as This, cost Lise
Issued
APPRT the years. permissions carge have ben
paid.
I
attive
REportate soustming and anniting transar-
funds made available the all the departmental
wought to accomplish by meass ut the pro-
placed upon the Postal in
- the classes of expenditures These
person a the 10.000 During third-date Mar MINE manth Ge with
time. volume - increwing,
general administrative eramination of ac-
reduce approved in 1024, 00 the touts of
nounta and repirts of operations
statution and testa to = limited number of
charges make it Importable to fatiy
the
a
any
orders
paid
at
to may be NAIS that
MP
or additionally on the hall
port
office
- Proficures diss - approximate the CONTR and ex-
BA well - the aminita BLADE atsilable Inf
post at selected. polors during for
784,280,000
and
7-day persode = the year, on the
attributable
to to be mining with the
thereto,
The
but
departmental street and analysis et cont
permit
Fale of postige CE -
exectainment data. These cusion amount to
therey that the sample thus process world
of the Portal Service an tu remain available
Total
The
unit
relationships
and
N-
to the and If the paral registration
et
paral
revenue.
volume.
end
24 To by the Government to carry our
4M.70
and
an
between
claim
of
programs. Thus the fixid of
lunght
exist.
10062
CONGRESSIONAL RECORD-HOUSE
NOVEMBER
1943
CONGRESSIONAL RECORD-HOUSE
10063
Be e - of the posited Investions for
To: On - all the pm any our
be and emics expertise compertments whing
M Mad mush tented provide for the suggest
wheress In February I received M centa
Mr. MILLS Mr. Chairman, in up-
the fiscal year.
est and pleasing matio - be -
submittedy allminated = failly DAC
of will Guarmant in Unit presidente pass,
per pound for bullerfat, that that was
The original 1034 cost signaturent plan
pound, improved, end made non smitte
The of prur bescrable committee
by the of expensives whis
- jel this La DDB place etuire E very large
prosching the subject of the individual
the highest price received during the
has been realined but € for - possibie a
loss of mati = envire
income tax, expectally in the light of the
- soculd live
not,mly requires adequate dependable, and
extegricy R The
We - particularly placed to unter that
past 1 munths and that for October, 34
présent turden. two factors stout out in
talls have - from year to your
to ben streat of changes to classification.
comprehensible not tipires. but If demands
might the model d Mrs. employees
the principle of - proposal,
cents per pound was paid. I believe any
the minds of your committee members -
portal and SETION The BKpe of
não . proper finant of the effers of pm
but is to very doubine that DI missing
but - you - make - recommendations,
emaile person will agree that this rell-
having bern imperfertly understood in
cost - to Immediated to
nim upm the - et portal a
any put artig to The for
void are NOT mainly clair to tax. many of
back as applied to butter and put inte
mon tax discumions. One factor was
emhase Liber compartion for - -
well - an appropriate of the large
and et de Para THE IS. -
euror - beynnd the jurisdiction of our
effect last June has resulted in a virtual
the weight of the unforgiven tax payable
Class and divisions of classes and sites first
of public policy and public
pmt upen the extitional of
- Purthermore WW recognize that
celling on this product of the farmer-
in 1944 and 1945, and the other, the
store the - of weight, vehicle.
willare,
operations, high degree of 12 all - ADE
- all postal millers not invoice
yes, to such an extent that production
weight of direct taxation BD these with
and avenge bank n° mail by claims, - well
There has lang been at Matrine policy of
we - LIMI a the Committee on the
Asi - and Post Roads. We certainly time
decrease became NO siarming that our
fixed or decreasing incomes.
La the number of in the appeal
enclounging by low partal relas the classi-
n - in the light of als the
services. The purpose of the - samitain-
natten of DFWF and information end the M+
and factors, which I brie
- - to violate this There-
same Government bas decided that the
In connection with the unfargiven
ment la se exats - - punsibie
une 10 which this polity has provid -
to status as truety as postible, - the
les 11 dedited a eliminate the proposed
datrymen new need a subsidy in order
burden, there can be DD purpose in revie-
to each - of mm and each apental service
this must nat be minumbed, Must cantal
the fire reformendations of ANY fing
- sum the tax - and sequire that you
that they can May in business,
ing the recent Miter controvery, Der-
the TOTALLOR earned by 1/5, and - statge -
should be gived to any change
in the early part of this The
and où permit this matter to the dormant.
Just yesterday it was called to my 41-
tain conclusions from that controversy
class se all and earb epecial service with the
to rates which would sectorily tampe the
fact Chart the problems matroeting
Cam of our original Jetter to you dated
tention that the production of butter in
are, homever, underiable. Whether or
proper state of the
effection of useful information 62 which
- of great diffinity 4d -
Juli 18. of pain reply of 2017 7. sud of
the State of Minnesota for the next 12
not taxpayers should net aside reserves
No stimpt in made = eith letan-
works tent in and india-
planty should - - OF a to a
dela une APR bene entil to the Bondrable
months is all probability will X 25 per-
for taxes, - recognized that they did
gible ticken as (he relative provity of -
try. The putille has Inco affinded lev postal
Mosts. propost of the Committee BY Win and
MA cisteman of the -
rent under the production in the same
not. Our choice was not simple whether
iss, lie plative and somemic no-
rules for the grainal bendit of the
the - office and Post Bonds, terring to bire
Rate for the part 12 months. Bg here
or not taxpayers would pay as they went
MM et the mails of the entered and
Nation and the extent to which the nie
Irrespective of the sitimate of The
verb - un tils nommitive dama
I have this morning this new wrinkle, A
or pay a year behind, but me were forned
Mail évens of in hardling. fur
for the classes of mMD and the special postal
Congree - the motion program In PAY
Bratiminas mails are wain-
services sea special facilities and - regia-
committee, = on the reformation I
paile. By at the Committee on Was end
4-cent-per-pound tutality for the pro-
to Institute par se you ED or face large-
is handling 1549 are DM amordid
try. money order, and the the have consrib-
have made, 10 will be my polity, partical
MIIM
duction of the put menth of butterfat
scale default in the year of denlining (n-
mis of the security and third classes.
used to the growth and nomfort, the culture
that the Congres authorizes to Chémary
IL 1 Chairmen.
from the herd of come back to that great
once. We telt that, while current pu-
- true pourtas in transportation their-
son influence of the Nation and the -
expenditure to trephement and a
SUBSIDY TO DAIRY FARMERS
Brate.
ment was desirable, individuals should
lag if resipt and of with pouches.
tratte processes, must not be overlocked,
work of port ascertainment end - insign
First. Id us like Into account the fact
make unme payment on too of their 1944
They an - affinded the cod expeditions
If rates for mail and postal services wire
to the end that them should in
M: KNUTSON I rield 5 minutes to
that 2,000,mn farmers in the United
and 1945 tax to offset. at least partially,
handling to both of mailing and de-
fixed Immediately on a comments
studies et portal case for vau -
lie conteman from Minnesota (Mr. 11.
services in order that the nos deprodable
States will probably receive similer
this (orgivement Reventing that in
tray and to transportation. Perishable and
with the existing elimate of cast, not only
Cos
checks and furms and will probably
virially all 26ML Main payment would
fragile mile an afforded
would such rator la on . furtu-
data cirtainable be available fun - by the
Mr. II. CARL ANDERSEN. Mr.
to handling and transportation, Openial -
have to sign these the une Enrose that
have EM be una of current income, N/A set
NET fauity bords, Init they would dialaste
Port Other Department and by Criptes
IS will be my paint a
Chuirmat. in our consideration today of
is BE name of en thought could be
Thery pareria and are any a
the service and provide such entirely pew
1 am assed to sign in connection with
patition in transit www. ADD above
tigether in me place in the Postal Erisle
another tax bill B seems to me citally
anaditions that new out computations would
receivies this particular subsidy. Imas-
en addition to current taxes. Thus the
that accorded regular cable of the end
be required to whether the DEF
tiskent all work tavident to the proparty
Important that while and u we were
line, If you can. 2,000,950 of these sets of
Cungress adopted 0.0 much forgiveness as
and The com of these
rales, under the new conditions, ves up-
and fixing of rates fur mail matter and power
further LAWAS upon the penple of this
documents which I bold in my hand and
15 percent in were instances, tecalse
and prévemia and the value of them 10
protesting have the costs end apenditure
services, and to 10 organise this work lbst
That the question of elmost por-
to the service rendred.
evaluations based upon the tale -
pur II months et the year, 24,000,000
Exit: shows many textayers did not have
mallers end all in was
dide in the various branches
the espacity fur payme more carry-over
continually In cost Rdd -
sels in at year's time.
ment figure.
Per example, she cost mortainment 16-
of the Government should receive the
or desibling up. and that larger deubling
a be derical that the present creat
eruits will receive adequate
Is would be Interesting if sime person
port for the times) your 1941 Indicates there
end adentific in the FIC
test study.
up would invulve defaulta
Islomect belhode and techniques and predi-
world cumpute the tennage of paper TO-
-- an extra of apportimed expreditions
catad upon the extations of reservable -
exing of rates and clamidication of mail main
There emes to my mind In this con-
The secund problem comés in connec-
one revenues on matter et about
quired to par out these particular forms,
formity in portal activity throughest the
en example of emat I mean when
time with fixed inromes. There are
ter and services
$24,300,000, haved - of 824,000,500
31 would also to highly interesting If
your, But - know that the unal date po-
By the setten et your la per
state that economy in government and
many individuals who are actually mak-
and apportiseed expenditures of $108,000,000.
seb (mathematicsty inclined)
sities In postal this is now B thing nf the
Je dom net commanity follow that by lacreas-
postng 6 somitific study of tates N bi di-
transion en hand in hand. In Loday's
los . substantial contribution to the WAT
veloped publicity. I am in as
person sould compute the amount of
mail I have received a sight draft for
whole incime is fised fer any of a
part. The and changes tn was natireal
Ing rates four und A half time
excurity, shifts in population, of
work I have started to the Departments -
clerical work DECEMBER to give to spill
that the total expenditure Agure will be met,
days feed payment, constituting e por
variaty of reasona. In the face of rising
1 will entime - that propos . that 2)
and 2,000,000 other farmen 4 centi per
business AR NY have knows is 50
duon jumidy of 4 renta per pound en
prices their people are put at A serious
bacause LE world be puse consecture to 10-
mar are protucing and ww con-
M jotan and cooperativo ente el -
pound or en equivalent subsidy on but-
ulive and tegtalative transfer of os -
bulierfac from my small herd et Hol-
disadventage. There are many expendi-
autor that the volume of mature
10 produce dating the earlier and
tertat no dairy products. It would be
that was in the mails to 1941 would the the
tures that they must make no matter
after 1E4 wurline such . dislomation of postal
way Ento the mails lb 1948 ad these invoiced
emt the public may De servi nai or
deln D/WS in Minnesota,
very interesting to receive from the Post
stat the sevel of prices or of incomes;
operations that determations of were ed
Postal Service will in - - tow
1 case in the letter accompanying the
min. The probable after would be to drive
Office Department ED estimate of the
these are expenses associated with the
the missing haves will lead to Institually the
service et its kind in the world
chark that il is stated by a very good
multer out of the mais. 11 by
ent to that Department tu transport
excred
Respectfully submitted.
friend ni mine. Mr. Prank Brands a.
place in which this zive; expenses MID-
no follows That the elimination of
PLANK e WASH
these documents through the mails, post-
clated with the living standards to which
The Posted coke furment
mail world work . envine if
print
Hubs in our A. A. A. work in Linorin
SEP line as they are
they have hroume accustomed: expenses
to proformed manages in the transpertation of
$108,000.00 5 expenditures The Bees
sa follows: "Enclosed to your
How much simpler, Mr. Chairman.
associated with fixed obligations which
the malle as A direct result of the - Evico
might be ellmicated in . statistical table,
dairy subsidy check for the butterist
bettere Der was DAW cime In -
mus the Portal Retationshment's financial
Commo cal Will END MAIN
a would have been, and how much easier
they have contracted. such as mortgages
add thring the month al Ociobet."
The great growth in transportation el the
statements might Uses very well indicate that
Bune or -
on the Treasury of the United States 15
of insurance policies,
Washington, INC
1 fixed up here to your ries the chick
mails by air. the accuratul experiments WILD
the Dad - apportuned to the
world have been If our Clovernment,
in the particular Instance and you will
We pm sume attention to the problem
alr-mail pick-up service (wherea mall is
other classics remaining in the mails, leading
Hm. PRANS c. WALKE.
in its great wisdom, had permitted but-
of distinguishing between chose with
yvicked tip and discharged by places traveling
so large amounts - the statistical state-
Portmastic for one
tale lost this requires the use of 014"
lerfat and dairy products to go to the
fixed and Unite with rising incomes.
4d bigh 5 operative meany adapted
- of the of apportioned expends-
Department,
HV" paper, wheress il would am
point where the pais of production de-
There estaud to be too great complica-
to military - and the advanoment in Da
Nums GREE - well - retuding the
Deta Mx. WALSIA: In activities re
(A) en ordinary stack black would do
crees that thef should En and that point,
thoms in attempting to place a. tax directly
technique of transportation by Screed glid-
setual postal by #24,000,000
exipt of your of July 7 with
lhe norpose and tare two-thirds of the
in my upinion, should be approximately
en have the shape of things to -
on the Increases in individual Incomes.
The postal established by the Cas-
to partsi rates, which - a mill tu - a
amount of paper UMA
After the war, the Nation will have vest
stitution - under the tires of Coupres
tar of June 23. the Cumpitte an we of
10 centa per pound higher for butterfat
There would be difficulties in fixing . taxe
1 also present for yast inspection two
mumbers of highly trained and experienced
Mextu destres to inform you that - yring
than o is at present.
farm) which this good friend of mine,
period income: there would be numerous
prints. and M well -
must of memority operate - & going concern.
If no matter were in the mails,
VM presented to the desider by the with
In that manner. Mr. Chairman, is
hardships where the base period was un-
- supply or large and powernd
is world not thereby eliminate # proportion-
mail this morning. Its cord -
teling is file caparity as head of the
would alive the farmer to receive full
usually low; hardships where Ltre m-
transport planes. The Pretaj
A. C. o, in my home county, has sent on
must he to a postion, un behalf of the -
Ate of the departmental the
aughty discissed.
payment in the open market from the
crease was associated with a move to a
inspection form. the the cerriers, the
The committee the supilate
Di los signature. I from this
actual ennsumer of bis product and is
high-cont-of-living community- Above
Ut, to lake of the
Interers the Railway Mail elerica, the rund
and importante of the may - " MO
the similar blanks will a to every
would net be nermary for the Treasury
all there might be serious
portualting far betwer and more
postal affice which will to arallable almost
suriers rent. Hight, and net besow is is
appreciates the tast that the quality of of
former making application for this pro-
of the United States to eventually pay $3
where the tax on increases would inter-
not possible to eliminate That persim of the
bringing rates of protage in the - line
Revis subsidy and these forms, as you
ad the war's KING. Mail handling
Unled-class mail eston BIRTH down in
at the 1017 least in interest and principle
fere with incentive,
equipment and facilities for the distribution
personnel, the equipment the buildings, the
was the mas of handling such BAIL - -
sui nole, messure 8% "XISS".
ANO dispiration of mail. the location of termi-
that care, and the tracks of the Postal b-
Mr. Chairman, in the Brit place our
for every dillar I receive so & dairy
Many of the same difficulties arge in
tablishment that are handing the work load
the acquires of maderation and -
farmer in this line of producer's subsidy,
with a deduction for frand to-
DAIA. and máil-bandling operating mithods
for the pust 50 ut as your pull
Government, in the prefound has
must to planned ao that these provides
of matter. We have and post
The CHAIRMAN, The time uf the
comes against 6 general increase to taxes.
officer en parts of post offers designed,
realine that LI is not . good grade
clamped. virtual ceiling no butterfal
accipped, and maintained le handle second-
- permit the deficite to executive - -
through its rell-back subsidy to con-
gentiverso bas expired.
It would run Into curfillet with withhold-
available to the Nation may be Intelligently
Entagrated in the National Postal Service,
Mr. DODORTON I staid to the
line and would add an insuperable prob-
There will be produced changes as revolu-
class mail exclusively. We have be rativery
- remadial actions. is agina el part
timera, placed inte effect last June. To
dispute the statements of these who
tieman from ATRAILMS [Mr. Missi such
tem of verifying returns.
license to the transportation and handling
mad care or maire validies exclusively de-
continue, nothing - EVIT Sem -
vial to entond-claie mail. We have nn post-
We find that is 1983. the Production of OF "
time as N may require.
should Exe to talk to you A little stille
tisimed that particular ml)-back sided
nt the mais es tame with the This
United States WM pre the suchents - fat
(By unanimous consent. Mr. MILLS
about the individual income us pro-
la not . proplecy, hus If is lbs
office clerks or carriers, village delivery ONT-
the farmer I have here my price state-
rim, stat-ricate carriers, or mail -
the PATT thing that 202 - -
ments for butterfat from my local
was granted permission to revise and
possis sontained in the committen MII.
considered judgement of insury thoughthi
sera recruited, trained, and employed to
5 have door, - - tar - mure - CT
extend bis remarks.)
As you know, 00m of the main features il
m/o of - décimical tratting and trad-
buida nothing but matter.
la the THE uncomfortable pattint of -
miade in that effection New. with -
creamery at Tyler which show that
- experience.
The Postal Bystem is not composed of mail
Regraded Unclassified
CONGRESSIONAL RECORD-HOUSE
NOVEMBER
1943
CONGRESSIONAL RECORD-HOUSE
10065
10064
how many children bad to be supported.
tions are multiplied by 68, the I
status tall changed during the year. to
that . provision should be Interted to
000.000 la fer was purjures. The IN, of
the elimination of the Victory tax and its
Now that we have under the Current
come very close to the correct antrol
grorale exemptions and credits over the
the committee bill so sllow a special de-
course, the largest war cigene if all
integration with the regular income tax
by providing for a so-called minimum
Tax Payment Act. a withholding system
figures. Exemptions for withholdise
year. Hereafter July 1 will be tised to
duction of 8800 to every Mind taxpayer
times. A compartaries with the we 15-
which collecte currently the full basic
higher than those for the Sale return in
determine the family status of all tax-
for purposes of computing his taxable
penditures of other emuntries give a
tax. To explain this integration prop-
tax from all wage and salary earnets,
order to allow for deductions. Two mis.
payers for the entire taxable year. even
net Income. In many CASHI, this allow-
better idea et it. It a entimated that the
any, perhaps " would be well to trare
briefly the history of the Victory tas and
and the method of quarterip payments
of exemptions and credita for dependents
les perposes of the declaration of eit)-
ante would relieve bilind persons of any
war expenditures of Great Britain to
sur présent withholding system.
for others, IS is understary to retain the
maind TAR, and there will be no prota-
tax whatsoever, and is other IL
are established-coe for minimum las
1944 will be $23,000,000,000, and that of
The Virtory tax when it was eriginally
eumplicated Victory las, and it semel
and una for income use, out the May vas
alli for provition.
would materially reduce the tax. The
Canada $5.500.000,000. However, the
highly destrable tn divise a simpler
are Integrated so the withholding Name
In order TO achieve the simplification
committes adopied for the definition of
American taxpaquera will DAT une year
adopied in the Revenue Act of 1042, had
method of reaching those taxpayers be-
a billnd person the language and by the
two definite advantages: In the first
in such 6. manner that they are Indistin-
el the short-torm return, su was peces-
more than the total WAT expenditures
place # afforded an opportunity to Intro-
low the Income-tax exemptions. In ed-
guishable, Employers who wish to -
away to require married persons filing
Social Security Bord for the purpose of
of bolb Britain and Canada; in NO, the
feel, the minimum tax replaces the Vic-
separate returns, each to take a. single
narrying out title x of the Bocial Se-
duce min the income tax sextem et Start
the optional method of computing the
most conservative estimate is that they
. small manure of current tax payment
tory tax in the lowest income brackets,
gerson's exemption. The effect et this
curity Art. M ammári, relating to
tax for withholding purposes may be m.
will pay over $40,000,000,000 in lans, or
and provision has been made for family
formed by Ute Treatury Department of
provintest is to reduce the total married
arants to Etates fur aid to the blied.
onr-half of mur total var DOM. for the
the all taxparing At the time the with-
statute by modifying the previously und
exemption for the regular Income tax
The Committee entabilibed July I of the
2017.
betting of the Victory tax was provided
the points where the Incume tax first,
6024 exemption for all. to: $100 for mar-
from 11.200 to $1,000, If the option of
tamable year as the date for determining
starts to apply. an that they will not need
Now as to live second proposition, the
for st was hoged that as n. result of ex-
repuirate returns is elsesen; on the other
the status et the teansfer for the enlire
perience under this tax, withholding
ried persens, 8500 for single persons, and
to compute both taxes.
Inflationary problem. A mudy of
could DO extraded to the requisr Income
. credit for dependenta equal to $190
As there Is virtually DD change in in-
Band the minimum tax exemption for
year for purposes of this apecial de-
the many proposals brought here under
tax ni Antne achiequent date. Another
each. The committee bill provides that
come-tax barden under the
§ jotel return would be $700, and for
duction.
the euise and in the name of préventing
aparate returns $1,000, en Intrease of
Under the circumstances which (sont
for adoption of the Victory tax
the total (perima tax shall not be less
bill, It vas not Decessary to depart tree
Inflation will show that many of or
the present law withholding rates of =
para in the total exemption under the
the Committee, some of which hare been
than 3 parent of the net income to ex-
economists are "straining at a mat and
par to resch the thermes of . large nam-
cese of their exemptions and credits.
arparate returns option. The effect of
outlined, the Committee proposals to TO-
www.iltwing a esmel". I would not mini-
ber of clines who were below the in-
persent for the regular income the and
Under the improved Victory tax, the
this provision will be. in general, to n-
gard to individual invottes should be ac-
milse the danger of Inflation or resurse
tax exemptions. but who neverthe-
2 percent for those unly ta Vic-
Ima had - ability to DAY income taxes,
rates applied to the gross income in ex-
duch but not eliminate. the advantage
repted by the Rouse although all the
we do everything we to close
tory tax Under the commities bill the
plant by persona in the higher bracketa
proposals may not meet with the ap-
com of 3634 were: 3 percent in the case
the informary DD. but the answer cer-
sance to the our of & married person
26-percent rate will be applied when
of a married person. and 1.75 percent in
through filing separate returns M ais-
proval of any Member.
talely does not lie in planting on our
with from dependents. the insome sould
the Individual is subject ta the income
timmished from Joins returns. In the
Mr. DOCOMTON. I givid to the seo-
the case of a single person, reduced by
people an edditional tax toad of $10,500,-
reach nearly $3.000 before It was subject
tax, while the 3-pereint rate will be 10-
lawer INFORMA us gruups this provision
tleman me Georgia (Mr. Code) DE
0,1 percent for each dependent.
00/000, a load that will be burdensome
to regular Mederal Locome tax The Vic-
pilid In the case of the individuals -
will not always operate-to the disadvan-
minutes.
and esuse suffering when all the time
tory tax was levied od income be-
For those who under present law were
fact only to the minimum tax The with
tage of Lbe taxpayer when filing separate
(Mr. CAMP. by constimous possient,
that FORM la only a fraction of the erand
tore any deductione, except
subject to the regular Income tax as well
helding table brackets have bein made
BA the Victory tax. an increase of four
returns, because, M was pointed out
was granted perminion to revite and
total of over $100 000,000,000 of escumu-
penses. and applied aller the allowance
considerably name than they were e
above. the total exemption for the mini-
extend his remarks.)
lated in the hands of individuals
et en examptino of 8024. regardiess of
points in the normal tax rate-bringing
the Current Tax Payment Act of 1945.
num tax would be greater with separate
Mr. CAMP. Mr. Chairman. I foit sure
in the form of War Savings formula, cash
family status Family status was given
that rate to 5 total of 10 pervent. la sub-
therety reducing in large treature the
returns than with 5 Joint return.
that the all the Committee on Wani and
surrender value of life insurance policies,
recognition nei for the 3 percent ETCM
stilided for the Victory tax. In addi-
amount of under-withholding "
Tm further modifications were made
Means has brought here representa en
assiner demand depants, and
Victory tax, but unly for the net Victury
tien, the allowance of earned income
withholding arising out of the fart that
with respect to individual income taxes.
much careful thought and hard work or
kile currence. This representa $00.000,-
tax after post-war credit
credit in repested, in order to avoid hav-
was the a given employee mij not tell
Heretolore certain excise tames, their
any revetue bill this House has consid-
000,000 excess buying power. IT we can
The first withholding system was
ing to raise the permal tas rate still
procisely et the midpoint of the trades
levied directly on the consumer. have
ared in many years. Beginning na de-
maintain in this country the psychology
therety made extremely simple fur ean-
further to prevent a net loss in revenue;
where the tax figure contained in the
tem allowed M deductions to computing
liberations September 4 the committee
that will render our people free of the
players. MA everyone eu given the more
moreiner, n was recognized that bust-
table was actually computed.
pet income. Bome of the more impor-
has quint 11 enria of tireless work. with
fear of inflation therewill be no harmful
exemptino for withholding and the base
neo taxes result in placing a double bar-
Several improvements have been made
tant ones were the admissions tax, the
daily and many night sessions, explorins
inflation, and I believe this paythology
of the tax ww the wage received by the
den upon unearned Income. constituting
in the short-form (norme-tax return,
tax en communications and the tax on
all Delda of revenue While the bus
ean be best maintained by atetet
employee. At the name time few adjuse-
sufficient discrimination in favur of
the optional return to be used by proses
transportation. Ax, under existing law.
does not provide for any great Increase
economy to anvernmental expenditures,
ments were required at the and of the
earned income.
having green incomes of $3.000 and les,
the fartor determining whether a Pod-
of patienal revenue, 10 does, to my opin-
by effective price control and ratiuming.
year for over-withholding or under-with-
Very slight adjustments were made in
composed of wages, salaries, compania-
end excise tax la deductible is the nan-
ton. provide all the increases necessary
and by control of not to
holding.
surtax rates in order to bring the total
Uson for personal services, in-
mer in which n la levied. rather than the
at this time, and all that our people can,
burdenatene taches beyond the ability of
Withholding of the Victory las worked
tax at various income levels na close -
terest. OF annuities. In the first piace, the
justification of the deduction, is results
under present eircumatences, pay.
many HE our people to DAS. and not by
to well that we were encouraged, last
possible to the burden under present law.
separate computations of Victory tax
la time discrimination seainst those
When the grest expenditures for na-
submidles which must be paid by LAX-
morios. to attempt to provide for the
Reductions of con point esch wore made
see eredit taken currently have been
persons whose Federal excise taxes paid
tional defense began # was by
payers.
wüchnicing of the full liability of the
in the surtaz brackets from $6,000 10
eliminated. Becond. provision has bien
are heavily weighted by pondeductible
many authorities that if our people could
This bill Mr. Chairman. I believe,
time surtain brackst for all taxpaym. A
$12,000. while Increases of one, two. or
made for the number of dependents in
taxe, such as those on tobacco. liguor,
DET as much se one-third of the com of
rabes as much revenue or DO resenably
method aning this was established to
three points NOT made la each bracket
the meme-tas table. Chereby eliminal-
morning goods, and ao furth. In addl-
this war as we went along, we would
be borne by our people at this time with-
the Current Tax Payment Act of 1943.
above $38,001. The Increases above
the the derfaction of the cream for de-
Non, under existing law the same dollar
reach n. gral that would be Ideal from
DUE unduly disturbing nur monthy,
which also provided for en atstement
$38,000 were required because of the Itemi-
pendents en the Isce of the return: third
amount of deductible Pederal excise
every economic standpoint, bus the
M far en individual income tax is
of & pertion of 1342 or 1941 tum in or-
tation on the post-war credit under the
the number of alternative lusdings for
tas paid remilta in & tax savings which
American people are doing that and
concerned We are approaching, if in-
der to make fully current
Victory tax. as a result et which some
Trumily esatus has been reduced in the
Willes proportionately with the surtax
more. We are today paying searly one-
desd 98 has net already approxched,
through withholding and quarterly pay-
taxpayers were made to pay a net Victory
short-form talde from three to two In
brocket to which the (axpayers' highest
half of the Government's war expendi-
the point of diministed returns Pew of
ments.
tax nearly as high as 5 percent, . rate
remputing the figures shown in the tax
element of theome fails; for example, 810
tures as we go, and the American ux-
When the reflaements of the income
the repeat of which would not have been
of dedociible Federal exclse taxis would
payer is besring the bearies tax load
our people insue of resitze that in Amer-
table contained to the bill. deductions of
les today. under setting tax laws for
lat sere this Introduced into the with-
completely offset by an Increase of 4
Eperoent have been allowed hist as under
mull in a tax savings of 19 percent, or
of any in the world.
It vas euggested that taxes be to-
the years 1944 and 1945, no person, no
system, the Vintery tax, simple
points LB the normal tax rate.
present law.
BL.SO, to as individual in the first suries
matter how large his of her will
ecough in liself, bocame an extra one in
Having done away, in the committee
Per those usine the long-furm of ne-
Include, but would amount to 85 percent,
treated at lesse ten and one-half billion
have tab during there years. after the
the tax machinecy. It required a differ-
bitt with the Victory taa and its flat
turn. also, the separate computative of
or $2.50, la an individual in the brankst
dollars for the next fiscal year, and this
ent tax base from that und for the nor-
exemption, le was emergency la retain
Victors tax and credit taken currently
from $100,000 to $150,000 of suriex DES
suggestion we said to be hand en two
payment of Federal laxes as much as
for withholding purposes the exemptions
have bends eliminated. The income tas
propositions: Pirst, the great need of the
$24,000 net Income per year. A IDAD
mai tax and surtax, and its special treat-
Income
with $100,000 of net income will have so
ment of family status in connection with
of 81,243 for married persons, 9424 for
bue subject " normal tax and curtaxita
These considerations, plus the fact
Onvernment for the additional money,
pay 676,001 Pederal taxes, leaving ham
the part-war credit made is impossible
single person, and $312 rest for de-
ben made the name for practically all
that there was $140,000,000 et revenue
and record, the inflationary problem.
425,605.14. and this lax Increases from
to include the Victory tax in the las
prodents, which are all divisible by IS,
persume-all those not receiving partially
to he sained, influmed the commities
Let 3 consider the first proposition a
2t, 20, and 52, so that they may early be
tax-exempt interest. The computation
moment. p. was estimated on August I
that figure of net income, vinsil when -
table shown en the shart-form income-
In Coding to tocludo the providen
tax return Recently, B. separate MD vu
which, in the future will disallow the
by the executive branch that 1044 The
reach the man with a net Incurre of
adapted to various pay-roll periods.
of earned income credit Hu bin alida
defuntion of Federal encise taxes puid,
eral expenditures, encluding debt reture-
$700,000 we find that bis taxes constame
eriginated in the Ways and Menns Cam-
These no-called magic numbers were
tested. We believe these to to -
miltee to eliminate those implications
to offect at least in part, any dif-
tant steps toward simplification of the
those which are business a
ment and trust-fund disbursements,
all of his Incume, This burden of ass-
would total $104,000,000,000, BUT.000,-
tion un individuals has Inwo Incressing
raused by the Victory tax port-war
encountered by employers in in-
individual income tax.
credit, which would in virtually all cues
stituting the withholding system. The
It var trought to the attention of your
000,000 of assime being was expenditures.
40 rapidly that 002 people have hardly
By setting July 1 of the latable year
exemptions have therefore been slightly
as the determination date for the (amily
Since that Name the War and Navy
been able to adjust thair budgeta to It.
be taken currently, However, there still
that blind persona are, in
remained complications even under this
revised in the committee bill to omform
Departments estimate that they will se-
and I think that it is sua for Congress
status of the taxpayer for the entire
thest Instations, required to make certain
fungiroved Victory tax, and there was die-
those clossly to the exemptions actually
year the committee will achieves o (a)-
sollitional living expenditures as a result
turn unused to the Treasury from 613,-
to (4) them remain level for . while
extisfaction with the sale of & Dat exemp-
alowed for income tax and minimum
ther simplification: under present tall
el their Infirmity, Pur examplo, many
000.000.000 to $15,000,000,000 of this,
Corporate taxie are in a stentlar oth-
time for all persons, regardies of family
this date has been used only for purposes
of them must employ guides or readers
leaving Government expenditures at
dillin It is recognised that the taxes
tax whin filing the return. The annual
atatute, time some very pour families
or attendanta, It was, therefore, agreed
about $90,000,000,000, of which $32.000.-
which are gow being Impost directly
exemptions used far withholding are still
of the short-form return. making in -
would have to pay Libe Lax, no matter
divisible by 12, and If the weekly exemp-
quart for of the form, where
No. -
Regraded Unclassifier
10066
CONGRESSIONAL RECORD-HOUSE
NOVEMBER 24
1943
CONGRESSIONAL RECORD-HOUSE
10067
upon curporations, and indirectly upon
proper channel for laxalion, 1 know
she dividend Income Howing to share-
that d has bren es missued in some in-
I submit that II. wood be a -
viewpoint of this mature Mill
crewse in use on theater ticketa and
num must be secured: however, there
completely sur et bostpies Last year me
postage In my opinion this
can be no justification for the Committee
third-date postage est as don-
bolders, are as high or bigher than those
staties in the past, but that ta an reason
winer procedure to allow that and Mon- .
falment unit to function and 50 devision
phane (If the proposed bill will bring less,
to vote its approval of postal-rate tn-
filing this - under MV proposed not
imposed or the other Allind Nations,
why we should continue and confirm a
trad practice. It is understandable that
its findings before We undertage In for
- mare money into the tax tills. Why
creases without esteful consideration,
would to accitivestary tasation for - box-
Il la of vital impartance that our or-
the Ways and Meuns Committee in its
postage rates Mindly un a tax to no.
di as (bat? I have been bombarded
and give those vitally affected an op-
- Tour support of metion to resmits
tax MI with a view to having portal entired
possivos - kept In arund financial can-
- HIND from my district from the
portunity to present their views to pro-
transferred to the Part Odtor and Past
dilien an that the may be able in can-
proper and diligent search fnr every tex
out having any dependable 10ys of lb
dollar should explare all prospects, but
effect of what by are doing. T brije That
just pumple serms higher admission
tect their interests and Investments they
Bunds Committee urgently requested.
vert to presentime production and pro-
vide employment for en leaving the
there are some fields it should not enter.
the able chairman and members of Va
price will decrease attendance Al thes-
have made.
Watson A. hav.
fill the point where It will not mean
I would like to knnw If the postal su-
President, Cusinity Ind Co.
This is une of them Postage rates
armed furnes after the war.
Ways and Metro Committee will consider
should be dealt with separately from
the facts I have presented ahma the MML
MY more Federal revenue than to now
thorities have been or if A
The withhulding as enmille out of the
and (tda source. I think =
careful study of extiting rates OT of the
Time INTERNATIONAL Association
weeking and monthly will of MAY
texation en the basis of the creds of the
that Is already functioning in the Pass
Ind an for to their views in this
expiriences of the past served as a basta
UP PRINTING Human inc,
wege carner and inlariet person in
Postal Bervice and what a best for the
Office Department in respirt to . n-
gaster. Throier men have certainly
for rates now proposed. I em of the
Notember N. 1H).
America las hrought hurn to thrm the
patrons ut that Service, and I think there
vision of postal rates and that before the
ene invie part In the war effort from
opinion we should proceed more cau-
Hon Lands If. Giver,
mountine cust of Government vasendi-
Le much argument to support the post-
tax bill gets through Congress the pre-
Uon that the subject should be handled
a wandpoint of morale, public edosa-
Ifouse Office Building Washington, D c.
tiously.
tures Every American - watches
visiona Increasing postage Tates will le
Dass BB:
(ve. and War bond drives. And school
New Process De.,
Government upending as novel before
Ingislatively by the regular legislative
stricken out, so that later when no ban
elvidren are another angle to ennsider.
Names, N. November 4. 190.
1. Higher third-date rulas with production
These people will ne and demand sosa-
committee that la constituted to handle
before tar all of the factors of profit not
The einke MD a langer part of the theater
Hon Lacal II. Dirth,
mail and metium -
ome and they low that mity in
such questions, the House Commilies on
loss, and the probable effects of charge
and their limited funds
Mosting of Congras,
are the larguit unrea et third-class mad. The
Government expenditure will lighten
the Post Office and Post Roads, of which
ma rates on volume, we may be able to
mil not Mand an increase in admission.
Name Offer Building,
insured nies will medicaly impair, or 1982
the ship gendleman from Virginia [Mr.
their - burden.
revise the postage rates in a more logi-
1 must your Committee will agree to an
Washington, D. c.
DEB of tão not ennumis malbude
BEACH) is chairman
eat and satisfactory war.
Dass Commission Owner No deubt you
unredment to place the tax on show
of getting business, expecially now visa
"A sensy sered is a petiny earned."
There " en und in raise more Inkm if
The insdvisibility of undertaking to
Mr. COLE of Musours. WID the yen-
are aware their in . direct mall-under -
the la . shortage of mangower,
back to its present rais and give
tieman yield?
et which there an a great many in the
and
time.
make - revision of postage rates on a
public are
De sture-poing foik and the show people
United States, the Item of postage used to
2. With targer business 134 added og-
Mr. DOUGHTON I yidd 39 punutes
us bill at this time becomes apparent
Mr. LUDLOW, I yield.
a distre te contimue with their good
circulamation I a dont the Isrgest
erating expenses within will In insurred
le the from Indiana Mr.
whre # are reminded that the Post
Mr. COLE of Missouri, 1 world bas
work.
(tem et expetim. The volume of bilaine
Grouph movement portal rates will come -
Odice Department now has that very
to compliment the gentirman em in
Now, about an increase in postage. I
devalos depetde m the number it todi-
nt in affect moter
MI LUDLOW. stall address my TE-
millet under through consideration
speech. I em e member or the Pun
di nié believe shile should be saddled on
new een: mil, and the number of
trom cor Covernment podiest and parting =
and investigation levil has not had time
Office and Post Roads Committee I too
cirrulate that van be multed with
Into another,
marks solety to the postal providers
the secks of the businessmen and pi-
till to any eunclusion thervon.
revalta depends on the of n.
3. igenting unter price mill-
which BED found on pasts BI-91 of the
am upposed to any increase in partal
troth I secured when the Rumi plan was
mgs have = my of the addi-
The Appropriations Subenmitter of
rates.
riva the et name community, was time
print BIPW infure the Committee
below - waruer in the session that such
Mr. LUDLOW. I thank the
ent of third-class postage gums up the oum-
Mingal expiration timed opin them.
1 am studintsly opposed to the in-
which 1 happen to be chairmati, desling
. Las bus as H. R. 3587 would be in the
ber of camas that - be eirzo-
4. The berw ja - amentas) and
criam m protase rates which ne pro-
with the Post Offire Department ap-
for his contribution,
offine and MI here If is. I consider this
- drep, and if the nation are dob-
suit a. willing and abroid not te
viewd Enn in the the bill I the the
propriations, Iselt segnizure of this
Mr. BREHM. ww the sentimie
- . sere plus to rate a portion of your
Eled the this due et portage, as Dire po-
se & insury sling with reimation,
provider relation to company should br
rituation and in the port effice appro-
field?
firmal of $10,000,000,000 to
poid, the amount of of this
inquire, and Also the Postal Burvice
strinkm a 10/0 from the tall. If it were
pristion the for the current fiscal year
Mr. LUDLOW. Il I have time I girl
the who have made their big: profits
fund will promotrily below but . fractime
la nil é propir channel to
net im the fact that sive closed rule
there wer set up a crist assertainment
Mr. BREHM. I would like to compli-
emails ant of war contracts-to shift
of WOM " " gow, strice = will the possible DI
1 Bigher calles will postal
under which the bill oltant before the
ment the gentleman upon his resurio,
without be only the must 11-
terms et Increasing them Expective BAA
unil which will meble the Postmatter
the burden from the superrich to the
spocere juis This will mult in tream-
stora that whenever portal ENTRE un the
If provider the offering nf aminé-
General to find out what It coda to
and I regret that the rule under vitie
anoux and underprivileged taxpayer. I
dous tom of postime für la and other direct
creamt, volume falls tub such so extrant that
ments I vould program an amendment
handle exch class of mail and to de-
the bill was bruught before a prevento
DO this vote for the Ruml tax plan and
mail-onter accura belit e tu
revenue um Ima under the bigher PASAA this
eliminations time providens entirely. I
termine socurately and setentifically the
him from offering an amendment as he
I estart vote for this bill.
papale s. Sirge - at sota -
they Defe under the lower. I élle the
hope Unit in the other legislative buty,
proñ: en some classes of mad and the
suggested. I would consider di di pleas-
Time don not pertait me to discuss the
clinity will be Surgely title thrugh
me
which oberator slightly more democrati-
many objections I have to this measure,
charge will et enployment of
1. In 1617 the passy palat nda est
lustes on other classet. the amount of
tire to vote for such en advedent.
sally and where freedom of amendments
Mr. LUDLOW. 1 thank (De gentle-
people who an for the - part
Increased to # rents. Prior su as unrease
Increase of portage rectain classe can be
but upon the subject of the increase in
as permitted an amendment will be
expected to stand without injustice to
man,
picture-show Uckets and postage rates
not elypible for employment III NAT table-
the Port Office Department bad tem neary-
tite will Cecline precipitately here to We-
The an average anount revenue of
striking all ni these postal lists.
patruns and anthout Incurring the risk
Mr. COLE of Misseuri. was the sid-
have tried to make myself clear.
m. for esample, wiere the part the NII-
from Date some Ane the became
If that is done I will support the amend-
of diminishing volume which might de-
tieman sield?
Mr. KNUTSON. I yield to the gen-
propers play in the property of the tonal
effective the pevenue drippet No $10,000.000
ment wien the bill returns to the House
Nat the purpose of any Instease. All
Mr. LUDLOW. Yes.
esonom) amá not be printed out to you.
. pear. not only tailing - produce the -
from Permsylvania (Mr.
With all of the respect I have for the
of this information, accurately and
Mr. COLE et Missourt. I devire 4a
And what will the Customer gate
pected INFORMA increase, bat even medting
Mr. GAVIN. 1 sek unanimous con-
emi Ways and Means Cummittee and
acientifically assertained and determined
observe that the Priot Office Department
lbs proprad conditing of pates-
to belog out in half,
est to revise and extend my remarks
5. When in the Department thursed
the able and eminent distrition and
is essential as . trusis for any postage
is at the presents time la the black for the
la the Recorp and to Include une wire
specifically, bulk return. under section 662.
Increase that will be surthing more than
first time in many years, in sume of all
Portal in and Degulations with which en
the firet-clais letter este from a to a
minism win enropose It. 1 think it gives
and Uine lettera.
entirely nutside er the field of institute
The CHAIRMAN. The gentleman has
prinarily comment)? to
volume dropped from 6,000,000,000 to 2,000.-
5- haphamird per in the dark inspired
this pensity mail and Government part-
phieta that they have is BUTT No BE
the best of our belief, in bething."
000,000 plaims senually. the révenue de-
and priper lazation und erlablisher a
by . desire to reach out and grasp some-
profession to revise and extend his own
various parts of the United Blates and in
sipes = is quie chricter that reduction is
It required in years in restore
bad predent when it undertakes to
thing la his The cost ascertainment I
but to include extraneous mat-
the volume of elemiarizing forest on us end
lossi Ent-dam number to - - figure.
resulate protage rates. The Post Office
sport of la something the Fostmaster
passessions.
Mr. LUDLOW, The gentinmen la de
Te: In must get permission from the
utters by the books to raties
Very
Department la a. great service institution
Deneral has long yearned for. Me has
Bruss.
world dratically cuital postal revenues
Docume c.
and les should be careful to se that in
repesiedly laminted that alshough be to
solutely carrect. The Pust Office De
Mr. GAVIN, Mr. Chairman, 1 want
trum this source. The esty world to
its represtions is is not tampired and
at last of the largest business estab-
partment made $1,300,000 in the Busil
in take this opportunity to state to Mem-
term to the us. our employer,
Cest. Through PUBLICATION.
hatting by laws that impair in service
Uniment in the world be has na idea
year 1043, over und above all
ters ME the House that postal rates
printers, ether suppliers of all kmle our 10-
Miltiburgh, Ps., #, 1H1.
put together. It is in the black to the
rail mandianta, who depend upon net Inin-
Non. Less IL Gares,
character. Postage rates struid be
what the actual cost to of handling the
this na be used for purposes of tax-
draits of employee for patronape. together
Office Puilding,
levied - o basis of justine to patrops
VACOUS class et mail which either pro-
extent of $1,300,000.
elles We all recognize the very difficult
of the port office and sbould not be tied
Mr. COLE of Minsouri. For lbs. Brit
with no edvantage to the Government.
Washington, D. c.
due net income et drag down the net
mbles and the grave responsibilities
We have rechad the fatte above in the
MY Due Through the -
in with the florivation requirements of
of that establishment Pur-
time in many years.
Distructing Members of Congren in
boys and that they will ald you in do-
have Inspet that the Bruse Ways and Missing
the Octernment in ruped to revenue.
mast 16 the authorization which -
Mr. LUDLOW. Yes
give him to our bill he has created his
Mr. COLE of Missouri. 1. too, wall
producing a tax postam that will pro-
mg an in your power to compat the proposed
Committee's proposal in pratal name
That is the only sound procidure, If
tide the trimendogs revenues Decemary
of rather doubing of this del
tretudes the deubing of third class pates.
we leck at a produce rate minir with an
cont unit and has called
like to be able to vote to surde SUM .
10 truet needa of the Government- We
paral nie invet important from
As publishers of so-called
eye on the retenue se think le will
from this bill.
to the Congress are charged with the
- trulk галяв under settion
father magazine to the dental
to this service in directing the investign-
equecar out of takpayers, the posibilities
Mr. LUDLOW. I thank - gratter
M2, Paral Laws and Begulations.
and the motal trade, - are large tara et
tion two of the evont eminest mat EE-
Promibility of delermining how these
this portage classification. We par the ac-
of crippline and dratroying business and
perts in the oventry, Charles A. Help.
man. The CHAIRMAN. The una of the
are to be raised and where the
New Process Do.,
ned? high rate of a centa per point.
Inflicting hankhigs on portal patrons
comptrailer and Allan B. Crunden, M-
inter are to be applied.
truor L sua
For the first a mensha of this year with
are great Indeed. 1 have no bestancy
setant of the American
gentirman has exploid,
to trashing such decisions I believe
president.
third das postage Bill for the mailing of um
in sayme that the pessare Increases
Tringraph & Telephone Co. Mr. Being
Mr. DOUGHTON I yield such
Mar Congrese must and will take Inter
c. POTRIM.
mapidate alone-dot including we other
carried in this by will either drive many
M he may require to the gentismed true
Consideration the maintenance and wel-
Presenter.
and Mr. Crunden came to Washington
expeditions for postage-totals 419.225. AS
businener to the wall or cripple them
early in this fiscal year and organized a
Oklahoma [Mr. STEWARTI.
Tare of the various parts of our economic
this rate. our expiriture for the your will be
enpaiderably, brilden inflicting undus
hardships - individual - of the
staff of high efficiency which la now la
(By encisent, Mr. STEW-
2. Vist will be vitally affected by three
LANDLOTTE 3a. November II, 1943.
in NOM of $25,500.
the middle et Investigating and develop-
ART was granied permission LA reque
are Legislation, unless carefully ean-
If the rate is is - - in -
Bon Laoir 18. ONER
portal system.
the the fects on which It will be possible
und can destroy overnight businesses
of Compress of Sepri-
Basstion of our 33-year-old tratoms, since
and extend his remarks)
the make a sound revision of the postal
Mr. STEWART. Mr. Chairmia I
That in many Instances have taken a life-
D. C.:
the additional 825,000 representa smily 10
I with to subtott -- a primary propost-
Little to build
New tax MD (HL B. SMITH with its programit
premit of our grown sclume-s a higher
tion that the Pontai Berrice la bet a
rates.
"wish to volce my appoiltion to All D*
doubiling of shird-cises word pat as
provide than any and grade - eas urs.
We all realize that additional reve-
Regraded Unclassifier
10066
CONGRESSIONAL RECORD-HOUSE
NOVEMBER 24
1945
CONGRESSIONAL RECORD-HOUSE
10067
tipon corporationa, and indiredly upon
proper channel for taxation. I know
the dividend Income flowing to shate-
that it has been so misused in some in-
ARCAR viewpoins of this maller and
I submit that BL would be & 1
- in taxes exes theater tickets and
mum must be returns: however, there
completely nur et East year sur
purtage. In my expiration this
can be no justification for the Committee
postage mait us Are-
hulders. are as high of higher Unit those
stanom in the part, but that is ne reason
wiser procedure to allow that cost a
phase of the proposed bill will bring less,
to vote its approval of postal-rate to-
the this amount toder DIE propost bill
Imposed by the other Allied Nations,
why we abould enntinos and oreftrm a
It LE of vital importance that our our-
bed practice Il is understandable that
tainment unit to function and to develop
the Endings before - undersake to to
- gott. money into the tax Ulls. Why
without careful massideration,
would be entimatory texation for DMC Dal-
the Ways and Means Committee in its
pastage rates blindly - . tax bill with-
de I HAT that? I have been bombarded
and give the vitally affected en ep-
CMB Tour support of motivo M remaine
the but with . view to taring pressas wellen
persions be kept in sound financial 200-
with letters from my district trom the
portunity to present Uneir views to pro-
dition, a that (bey may be ship in 100-
preper and different search for EVERY tax
out having any dependable idea of the
Incoleme to the PORT Office and that
people saying higher admission
tent their interests and investments they
Teste Descritte requested
vert to puacentime production and pro-
dollar should esplore all prospecta, but
effect of what we are doing. I hope that
vide employment for men having the
there are some fields is should not enter.
the able chairman and members < the
print vill decrease attendance as thes-
have made.
William A. Prov.
This is one of them. Postage raten
Ways and Means Committee will consider
NTF to the point where 11 will not mean
I would like to lange If the postal NO-
Present, Causes Sivd Du
armed form after the wat
should be desit with separately from
the facts I have presented about lie end
unr more Federal revenue than to new
therities have been comulted or if a
The withholding LAS regine nul of the
givined teum this among. I think we
careful study of existing rates or of the
THE Association
taxation on the basin of the neede of the
welking- and monthly Rades of every
that IN already functioning la the Post
Postal Brevice and what la beat for the
deld lend an ear to their views to this
experience of the past served as B taxis
of PRINTING Home Currents, Inc.
wage earnet and silaried provio in
Office Department in respect to a DE-
Theater men have organinly
for rates now proposed. I em of the
Namber 20, 1142.
America ass breatht NAME to them the
patrona of that Service, and I think there
vision of postal rates and that
- their part in the war effort from
opinion WE should proceed more cas-
Hão Lew H. GARDY,
muumime of Generament
is mumb argament to support the post-
tax bill enta through Congress the In:-
uno that the subject should be liandied
the standpoint of morale, public edoca-
Besar Office Wathington,
Hously,
turns. Every American now watches
visions increasing postage rates with Se
Date time
and War bond drives. And entrod
Rev home Due
Government atending H give before.
legulatively by the regular legislative
stricken out, so Unit Batare when - have
children are anuther angle to rensider.
Vartes, Ps. Noumber 4, 1941.
L Bigher third-class relas will pensibles
These permle will THE and demand non-
committee that La constituted to handle
before us all of the factors of prode and
may and Livey that every eving in
each questions, the House Committee on
Joss, and the probable effects of change
They make up a larger part of the theater
the Lew H. Over,
email and while
Gevernment sependitures will lighten
the Pod Office and Post Roads, of when
the rates on volume, we may be able MI
gatronase and their limited funds
Moster of Compress,
MS the largest - if third-clase mail. The
encial not stand en increase in admission.
Howe Office Building,
increased rate will includy smgir, we -
the able entleman from Virginia TMr.
their us horden.
revise the postage rates so . trinne
I true your Cummittee will agree to en
Washington, D. c.
useday, our of the mas economic mathrds
Boxcal M chairman,
cal and satisfactory way,
Due Communication Birth: No soubt you
ammidiant to place the tax on show
of goiling busine, especally - when
"A peona sived a A penny earned
There - DO perd las mise more taxes if
The modivimiality of undersaking to
Mr. COLE of Missouri Will Ubs ENG.
are un that in - dirent enter -
to - sturrtage of marpher, punlize,
tark to the present rate and give
Usman you
DEM, of valid there are . pmt many la IDA
-
time.
public are practired.
make . revision of postage rates DR. a
Mr. DOUGHTOR, I yield 10 minutes
Mr. LUDLOW I yield,
the folls and the show people
Unised Biates, the the of pour und in
# With larger trainam. the Added -
182 bill st this time becomes apparent
. to sontinue with their good
- sa MOST the largest
eraing reportes which VII the innered
la Use geotleman from Indisna (M:,
when we are reminded that the Prot
Mr. COLE of Missourt 1 would licks
web
of expense. The vottime of
turnessed portal raim will cume eut
Lmcow
Office Department now has that very
to compliment the gentleman 00 2
Now, about an increase tn postage. I
ulitalned depends en the scoller of
or taxes If effect taking under
M: LUDLOW. 1 aus andrew my IT-
matter under thomagh consideration
speech. I am a member of the Post
to not believe this sisculd be maddled on
vitual circulare emtil out, und the ausber of
trom ane Government pociet and purting as
sed interfication but has not trad time
Office and Post Roads Commities. via,
circulars that as to polled with providable
into another.
marks easy to the postal provisions
the backs of the businessamen and pe-
to name to and ounclusion thereon.
am appeared to any Increase in
penita depends on the responsible of -
1. spending under paire we
which are frund un pass M-01 of the
the sensed when the Bumi plan was
The Appropriations Buhenmmmittee of
retains.
nous Hate of - stue the
mp have no 949 of the addi-
print now before the Commissive
before - enrller in the session that such
I AIT) ebsolutely oppoied to the In-
LUDLOW. 1 thank the proleman
nost of third-clame portage - to the -
Tennal Tread upon them
which I tappen to be chairman, dealms
. tax till as H. R. 3487 would be in the
- - names that - profitable be elev-
4. The Govial is an RETION
enter as postage tates which am pri-
with the Post. Office Department ap-
for his contribution.
offine und so here 10 is. I consider this
barred gove down, and if the tates atv -
and a. public alimy, and about not be
nded THE in the tax bill I think the
propristions. took cognimince of this
Mr. BREIM. Will the
MM 1 mere plant to raise a portinn of your
blest for - claim of portage, M now pre-
claims - . looning ship with commeties,
providens relative to postage shmúd be
allostion and in the post office appro-
yield?
part. the amint of etreularization of 18M
and cigare. Alm, - Pratal Device
liberal Burgiveness of $10,000,000,000 to
in from the hill. II Il RUTE
printion but for the carrent fiscal year
Mr. LUDLOW. If I have time. I vield.
those who have made their the profits
kind will security become but . fraction
is 001 - proper channel for
not Jur the fact that the closed rule
there wes NBC up a point assertainment
Mr. BREHM. I would use to
primarily out of was emtracis-to abift
of what is to new, strice B. will be pasitie 10
a. Higher rules WYO INSURE postal revenues
under which Unle MII remes betrire the
unit which will enable the Postmadler
ment the esotieman upon his researce
circuladase without loss only the - -
Instead of increasing them. Experience has
the under trom the superrich to the
House provents the offerms of amend-
and I regret that the rule under which
sponsive Lieta. This will result in tremiti-
Charge pristal nim em -
General to find out etrat IS costa to
eventure and underprivileged taxpayer. I
form et trustness for tal and elber direct
cressed. volume falls to with 55 extent that
mansa 1 weuld pregone an amendment
bandle each class of mail and to de-
the BART was brought before TAB privents
did the rute for the Ruml tax plan and
mail-order concerns, Facilities bulls to to
- are Inna tinder the higher rates than
eliminatime these pervisions entirely. I
servique accurately and actentifically the
him from offering nn amendment as DE
vannot rote for this bill
Name . large vulume of hyprima with 15-
Ling were under the Extre the follow-
time that in the other legislative body,
prufil on ema classes uf nail und the
suggested. I would emaider M. . plan-
Time does not permit me to discuss the
classey will for largely the though cerrying
the proof:
which uperatas slightly more democrati-
Jonies on other claims, the amount of
ure to vote for such an amendmenti.
may abjections I bave to this meanire,
charges will consinue, and employment et
. In 1917 the penny postmant rules vas
calls and where freedom of amendments
10crease of postage certain classes can be
Mr. LUDLOW, I thank the -
but upon the subject of the Increase in
white-culler people who 579 for the BENT pin
Increased to = centa Prior to the beness
is permitted. an ameriment will be
expected to stand without injustice to
man.
picture-show ticketa and postage rates
not eligible tim employment in wir Info-
the Port Office Department had been reade-
triss will decline preciptiately here - Wur-
Ing as snoual - et 1,000.00
adopted striking all of these portal items.
patrens and without incurring the risk
Mr. COLE of Missouri. WIII the p.
Thave tried to make myself clear.
this After the Increase terms
If that MI done I will support the attend-
theman yield?
TED, be example, wom the part these -
of diminishing volume which might de-
Mr. KNUTSON I yield to the grn-
players play to the proterity of the local
dirclive the INFORM dropped to $10,000,000
ment when the MID resurns to the House.
fest the purpose of may increase. All
Mr. LUDIOW. Yes,
Aman from Pennsylvania Mr. GATTAL
Monory need not be pointed out to 1
. year. not only failing - produce the -
With nil of the respect I have for the
if Uris information accurately and
Mr. COLE of Missouri. I duin to
A04 what will the Government game tas
petted promote increase, that even resulting
Mr. GAVIN, I ask unshimous con-
great Wast and Mosna Committee and
scientifically aspeciained and determined
charve that the Post Office Department
the proposed doubling of third-clam na-
in telag out in half.
and to revise and extend my remarks
the able and emineot chairman and
la suential as & basis fur any postage
is as the present time in the black far the
In the Racors and to Include one wire
specifically, - under settion RI,
B. Winn to 1992 the Department increased
first time in many years, in aptle of all
Postal term sed Registions (with etilis -
the Bred-dass becter rue free IN to 3 sents.
members wise sompose it I think is poes
increase that will be sorthing more than
and Urre letters.
entirele uf the field of legitimate
The CHAIRMAN. The gentleman has
are primary - The unit. to
vilume trapped from 00.000,004 to 3,000,-
A. haphazard to the dark inspired
this penalty mail and Government pub-
the bed of ar is "Ustle te nothers."
($),000 plan annowly. or INFORMATION de-
and proper takation and establishes a
by A distre la reach out and erasp some-
phine that they have to CATTE to the
Directive to revise and extend his own
various parta of the United States end la
store 15 la quite obview that reduction in
must, It required 19 years to resure
had president when if undertakes to
Milna to tax. The cost ascertainment I
temarks but to include extraneous mai-
the volume of - - and
lossi voicins to (Le 1982 Extre-
regulate contage rates The Post Office
speak of is something the Postmaster
ponentoni.
for be must get permission from the
others by the understanable booth in rates
Vary
Department in a grest service institution
Groenal has long yearned for. He has
Mr. LUDLOW. The gentleman 0 -
would drastically curtail postal revenum
Donosis c.
and we should De careful to - that in
repratedly lamented that although be is
anticly correct, The Past Office &
Mr. GAVIN, Mr. Chairman, I want
true this AUTOR The only results word be
as operations it " not hampered and
at the head of the business estab-
partment made 81,300,000 in the fund
to take this opportunity to state to Mem-
harm to generna the us, our employees,
Our Envoice Protective
hamstrung laws that impair Its service
year 1545, over and above all expires
printers, other suppliers et all mode. our 10-
No. Namber #, INS.
in the world be has ne Idea
ben < the House that postal
character, Postage nites should be
DUE together. D is in the black to the
cal mimbers. who depend upon eur -
Nov. Lane IL Claim
what the actual cost is of handling the
thous not be used for purposes of lax-
Credit of employee for patronier. together
Hour Offer Building,
levied em B. tinsis of justice to patrose
various classes of mail which either pro-
extent of $1,300,000.
Min. We all recognize the very difficult
of the stal - and shmild not be tied
Mr. COLE of Mismir For the to
with = a the Government.
Washington, D. c.
due net Income or drag down the net
whire and the grace responsibilities
We have recited the fails above in the
Mr Dese file: Through the newspapers, We
in with the Buclasting resolrements of
revenues of that establishment. Pur-
time in many years.
Addressing Members of Cingress in
hope and belief that they will side you is &
luive learned that the Roum WAS not
the Government to requet to revenue
to the authorization which we
Mr. LUDLOW. Yes,
pive him to our bell he has created his
Mr. COLE of Mineuf I too, must
producing a tax program that will pro-
the all in your pera to commat the propried
Committee's proposal to increase paid
That in the only anund procedure, If
Yide the tremendota revenues Decessary
Intreas, or rather dushing of
Indiate the duubling of think clus raths.
me look at a postage rate solety with an
seus ascertainment unit and has estied
like to be able to vote to strike 1
to must tireda of the Government We
postal rates, instading (unit important -
As publishers of an-called
eye on the revenue - think It will
from this bill.
le the are charged with the
our truik ruthe under auton
letton magames for the dimital perfession
to this service in directing the investige-
aquirese est of taxpayers. the possibilities
Mr. LUDLOW. I thank the gentle
MI, Postal Lawa and
and the dental trade, - are large - of
tion swo of the must eminent est EX-
responsibility of determining how these
Unite portage classification. We pay the al-
of erippling and destraying business and
parts in the oventry, Charles A. Heim,
man, The CHAIRMAN The time et the
are to be mised and where the
Sre Nome Co.,
mudy bights mate of 1. centa yes prund.
Inflicition on portal patrons
comptriller, and Allan B. Cranden, ss-
un are to be applied.
Joan L main
Por the first - executive of this year our
are great undeed. 1 have no hestancy
sixtent sumptroller, of the American
gentisman has expired.
In reaching such decisions 1 behave
President.
third class postages - for the mailing of our
in Myby that the postage increases
Telegraph & Telephone Co. Mr. Helse
Mr. DOUGHTON. I yield such use
that Congress must and will take the
Banke c. Person.
magadisms signa-not Industing our ether
tarried in this bill will elsber drive many
as be may require to the gentirment DE
collideration the maintenance and wel-
Treasurer.
expenditures for At
business to the wall ur eripple them
and Mr. Crunden came to Washington
early In Utila firest year and organized a
Oklahoma Mr. STEWANT).
fare of the various parts of our ecchonise
this rate, our expeditive for the year will be
considerably, besides Inflicung undoe
hardsbips on individual LEFTER of the
staff of high efficiency which is now in
(By unanimies consent, Mr. STEW.
We that will be vitally affected by them
2s, Nevember 22. 190.
ta EXCHAP of $15,500
the midst of investigating and develop-
ART was granted permission 10
we Legislation, unless carefully ECD*
If the rate in drublet. it one - in -
the TARM II. our,
portal system.
Ins the facts on which It will los possible
Named, can destrny overnight businesses
Nember of Congress. Healt of Repre-
facation of our 13-year-old store
and estend his remarks)
I wish to submit as B. primary propert-
to make a sound revision of the postal
Mr. STEWART. Mr. Chaires I
lbss in many Instances have taken a life-
Washington, D. C.:
the additional $25,000 regrementa serif 10
time to build.
New tax bill (H. B. 3587) with the propard
pervent of USE - volume-s and tight
tion that the Postal Berrure is DOL a
rates,
'wish to voice city opposition to an a
desting of third-class would put us
persontage than any net prode 14 - N/S.
We all realize that additional gove-
Regraded Unclassified
10068
CONGRESSIONAL RECORD-HOUSE
NOVEMBER
1943
CONGRESSIONAL RECORD-HOUSE
10069
many other magazine publishers
The proposed increases in taxes en
ness enterprise, as IS Impliedy committee
- with determing and the
The Budd Wheel Co. for the fiscal year
stad. Perhage be just said, "Let - look
are taxed with a. station disaster = the third
telephone to confistatory. It will neche-
linelf to de In the appointment of boxy
- via your knowledge of Chase
ending December 31, 1241, did a war
this over. I cames - you amin at this
class rate la Licressed submentially, let sime
sitate the discantinuance of telephone
service to numeross farm and rural-
Benste and House committees or may
1 - you know .
business of Its profis, before
extries PO adverted, and the mindatures
bustness. These committes have as.
ist e -
rate. Let us reprice this A Ittile." And-
being devisid the readers of mag-
Anything you - do to block this tax: -
taxes, was 89,990,000. or 24.2 percent -
way he represtiated. Repricing la noth-
who use them as advertising media, would to
town humes.
The tax to discriminatory. It la more
dently been very active, I am informed
- will be greatly approciated.
its total volume of busines. Its profit
the DEW to and nothing new in
that their annual expenditures Inc 40
204 M.
after lates, if there had been ne rene-
Industry.
depoint. of publications upon whild they
In the nature of . selective sales tax
their operations, Including travel, lives.
provident /ster-County Telephone City,
gotistion, would have been $3,633,000, or
The smepäments which this bin will
depend.
In my optnion. the project increase of
than an exclée.
Ligation. clerical belp. etc. have -
Mr. KNUTSON. I field 5 ministes to
55.0 percent of the ML worth of the com-
proprise are good amendmento to the MIL
thank class rains world fall to potre any
The tax La an increased and undeces-
for Senate and House committees, FEEDIC-
IM emileman from South Datota LMr.
pany. After renegotiation its prodit was
As & matter of fact, I went before the
Instrume - the Gerernment's If
sur burden upon already overburdened
lively, 857,445.22 and $47,500 are
still 12 percent of to net sales, and Its
committee and 2. suggested to them that
publisher's surrent profits are surved into
local, independent telephone
total of approximately $100.00 for .
(tist). Mr. CASE Mr. Chairman, I shall ed-
net profit after payment of taxes was M
I thought the same as I did over a your
end If with pittures APT civil will
While the tax is paid by the subscriber,
un business time présent fugh - are
year of Investigation of - butters -
the telephone company is responsible for
problema and conditions Hire we Batre
è myself to two phases of the bill,
parcent of the net worth of the company.
wen, when WY adopted the statcin origi-
an opportunity to make so the
If at least. two phase of the discussion
When the War Department Appropri-
naily, that the statute vas Imperied.
payment tva to
its collection. The Joh of serving as tax
ation Committee ran into situations like
this afternom which have to do with
That If was marrly a start. That seve-
Your university.
Product
collector, computing. collecting, record-
sume return far all this money of Unity
la It any wooder that some of us
ing. and remitting ETOMS more
(h) appropriations in which the War De-
body should work DD 11 further and pro-
which has been $4) spent.
partment Appropriations Bubcommittes
thrught that you. and you, and ymL
fact the details, ur even try something
Mr. KNOTSON. I sinid to the gentle-
all the time.
Mr. Chairman, the resulta of Ube par
would be hald sociuntable by the nen-
as If n would do . better Job.
man from New any (Mr. Towe).
Telephone companies are experiencing
IN interested. That to as to the sevings
posed increases in taxes DD Adeptions
bers of your district if you permitted
This comfisittee has done a aplendid
(B) unseamous consiot, Mr. TOWE
an acute shortage of manpower. It was
more this $13,000,000,000 that was N-
la well net forth in a letter and - Note-
the vast numa of meney to lie paid ous
hö in the amendments Il has
we wranted permission to revian and
verified tefuse the committee that
eram which I recently received Ine the
ported the other day and el to the It*
of the Pederal Treasury without any st-
given expellent study to the whole
usland bis respons.)
the curn-over of female help is almost
nagulation testures of the bill.
presidents of two of these - cig.
tempt at recovery?
problem. Naturally I em pleased to
Mr. TOWE, Mr. Charman. I am up-
400 percent to some offices, and that If 13
Already this afternoon during the n.
panies located in the Pirst Company
One further reference to the facts nn
find that five of the changes that 1 ma-
possd to this bill include of the provided
guris were bired on Friday, only 5 would
marks made by others, there has been
En " which arbittrarity increases the
District of Mismori, which I
the Budd Ca. The salary of Mr. Budd in
gested to the committee are incorporated
show up un Monday.
una discussion of this $13.000,000,000
herein as follows:
loss was 843,200, from the Budd Mani-
in the amendments now affered in the
third-class mail rates,
While the expense of ontlecting the the
and Se relation to the fiscal burdens of
facturine Co. In 1942 that was jumped
statute.
Many publications which are of great
Ce,
la me available for the more than 6,400
for Government. Because of limited
Milen, Mt., it IND
to 868.410. But in addition to the Budd
For Instance, there a the expirat right
educational valor - this class of mast
than Wat Assiss,
time I am only going to refer to that
independent telephone companies to the
Manufacturing Co. they now had the
of appeal by setting up . tas surt A
for distribution These publications are
Nouse of
at this uma to say that the true credit,
country. If Beurer were available they
Rudd Wheel Co. and from the Butd
court of appeal Ludy. and before that 9.
not chiefly advertising mediums. They
sould show n sizable amount which
Wallington, D.
the real credit for the moving of that
Wheel Co. Mr. Budd received an addi-
review body. Ba that now the right of
tender a distinct service and It is quite
them companies have to spend to do the
Date We are . small corporative pm-
$13.000.000,00 should go to the boys in
tinnal salary of $140,910, misking an m-
appeal will be expressly provided in the
provide that their distribution will be
collecting and remitting of taxes. Surb
lesting equirat higher taxes on the Islegible
Autralla, to Alaska, in Africa, in Italy.
crease In his annual ealary from $63,000
statute
required in the future. If this
Industry,
In and no the high SPM. who are
costs. of cuurse. become & part of the
in 1918 tu $205.000 In 1042.
In addition to that the use of the cx-
provisions remains in the MILL and finally
Congria his picked commonistions -
repensible for the change to the mill-
operating expenses which are ultimately
becomes law, No. of publishers in
of the net of the utility family für à Na la.
Similar examples of greatly Increased
emption is to be reised from contractors
laty situation which made possible that
SED en the revenue late abaited to 1941. This
profits and salaries von coming before
with was business to to $100,000, the
paid by the telephone users, and that
this country will be singled out to pay a
Branchal cut-back trnm the military pic-
constitule A further tax increase.
musted is a 6-permint monthly tax - hesi
a in the aprise of 1942-pet the full
treaind to extrad NP to $500,001 total
disproportionate thare of the tax sought
exchange Mine, which NM Increase a @
time et is una presented to a last May.
There are something over 6,400 In-
facts on any rate FOR hear about. You
Government war business.
to De naised under this hill
persons Seal year.
Wilk respect to the remegotiation fea-
dependent telephone companies in the
will understand what I mean when I say
In addition to that there la . definition
Mr. ENUTSON. I sield to the gentle-
We screpted this tax chrectull) and
turns of this bill, as I said early during
that the origin of renepotiation NM the
of standard commercial articles. which
United States. These have been
man from Missouri (Mr ARNOLD].
cheetfully acted - - txp-estering -
the alternoon, the gentleman trum Okis-
altuation that R comfronted.
makes it presible for the Secretary or
(By enanamous rousent. Mr. ARMOLD
Bed into four groups, M follows:
for the Government. New . proped
bema DISNEY) and the gentleman
the Blagie Price Adjustment Board to ex.
A. These having an anoual operating
The Government, the emantry, will in
eranted permission to revise and
TAIN in this ISE
from Minnerota (Mr. ENVIRON and the
& situation parallel to the perved who
empt the articles where substantial com-
revenue in excess of $100,000.
extend tile remarks)
Aa you probably know-doming Inc as
termina of the subcommittee that ban-
found his child about to die. 25e sald.
petition exists.
Mr. ARNOLD. Mr. Chairman. the
B. Three moging from $50,000 to
part of the country-chat . largh
of rent and small-town telephone DAIN keep
died this provision are entitled to a great
"Send for & doctor." Bomehody said.
For they have also adopted the Idea of
$100.000.
proposed increase in tases DE telephones
their phones mainly because they have -
deal at credit, as 579 other members of
"Which doctor shall 1 get? Shall I pet
que central prior adjustment board, a
will necessitate the discuntimante of
C. Truse ranging from $25,000 to
$50,000.
of Estier relatives in the smet firms -
the committee who worked on this most
the expensive doctor?" "Well, there to
auf to crests uniform policies through-
telephone service En nutacrous farm and
Test that they must have the wishom
difficult problem we have in connection
only one in town. You run and get him
out the program for all agencies 000-
rural homes
D. Those having less than $25,000 an-
Bane, many have told - that of DATE
with war financing.
and do not usit what is la going to cost."
cerned and provision la made for termi-
Mr. Chairman, the telephone la a ne-
past opirating revenue,
on telephone enke are intressed yain DMF
Benegotiation vas developed to the
The father asid, "We have to have &
natine repegetiation when the war ends,
desoly, it not a tolower. The telephone
In groups A and B together there are
was the forced to the
War Department Appropriation Bub-
doctor right away. This " a case of life
not $ years sfterward.
industry has been classified by the War
something over 200 companies. Groupe
ADd that If this 13- to 20-mat increase -
to med a special and extraor-
and death."
I know my time is about la expire
and D. therefore, represent about 6,200
toto effort time is nothing - til the
Mangower Complesion as case of the 33
finary problem. D vas . problem that
A tot of the war emiracts were made
sgain, but let me my sealn that there to
companies and these are typical of small
to
do.
mort mental to the prosecution of the
We fail that this proposed lume a
las searnity been truched upon here to-
in that fashion. 1 de not justify them.
no perfect to the problem of a
war.
business enterprise about which there
misstive tax and & discrimination and " è
fay, the problem of vast and extrair-
I supported the effort of the genürman
war profits. You may have ideas
Local telephone service is essential to
has been 00 much said and NO Uttle done,
fair to the insustry and to addition # 10
disary profits being made en war -
from Michigan (Mr. Essal to eliminate
that will fursher improve the stature, and
the dumestic and business life of every
These 6,200 companies have a total of
WRASHO the motale nf the Fund and -
tracts It is - problem IMS which the
cust plus and toot plus-Bard-fee COD-
THE you know . better hole, go to 16.
ommunity. D 1a visal to the national
telephones, or wn aterage of
town people, who eximpt affert a
public has ben getting but one ande,
tracts before we got into the war. But
There is not a Member of this House
welfare.
204 telephonis per company, In other
In large cities and large this
labily. Here is & circular put out by Mr.
that Inst. and later 19 got tuto the var
who has not repostedly, publicly and pri-
The independent telephone
words, une typical independent small
might work not but small e
already sex burdened almost beyind of +
that G. Budd, president of the Budd
and restracts were let right and left.
valuly. said that he would do all in bis
et the country operate in about 12.000
rural telephone company has an annual
pacity to pay and still know sur - 19 M
Manufacturing Co., and the Budd When
Many times neither the contractor not
power to prevent excessive war profits If
of the 16,300 communities Must Bild)
operating retenue of less than $50,000
the statement - wish to boxe.
DL colled "The Dangerum Injustice
the Government had any Iden of what
we ever end insu war again. The law was
telephone arrvice.
and an average subscriber list of 384
We maintain that a. telephone in nal
of Renegotiation," which was on your
the cost world be to change & washing
new: It was not perfect and these amend-
The arrvice in-
telephones.
communition is . premity and - = -
delo this morning, I presums. Now,
machine factory to a munition factory.
menta, while they improve It, will not
cludes more than 4,000,000 telephone or
Mr. Chairman, it would neem that in
lurury. 1 MI writing to your when 1 tell -
the direction in the Bodd companies la
Bo we sent for the doctor-any doctor we
make st. perfect. But 16. works. n has
about one-Bith of the total telephone in
all fairness, and in proportion to ability
the kind of rituation that produced . de-
could get. After the doctor came, per-
saved over $5,000,000,000 of the be
the United States
to mret the costa of the tax burden and
stand bere, as am your call a go
behalf protest to too if the -
tasi for something to esmb excessive
hape he was an expensive doctor. Per-
payers' mobey and is getting better prices
Mark than so persent of these 4,000,000
continue in business, the small indepen-
No ordenditures and since this circular
haps he found his costs were not M much
on DAW contracts
telephone are in residences,
dent rural telephone company with
and Motor Cummittar
We hape para will be able la help MA
spound resterday and tistay, 1 use и
as expected and that his prices were
You take any one of the celebrated
One millen are in rural
subscriber lat of Denn 850 telephones
M § movement illustration of the prob-
high.
cases and get the facts from the War De-
home service farmen.
should be exempted from further tax In-
Versits n. product Link
Im, After reading the eircular I called
The CHAIRMAN. The time of the
partment or the Navy Department and
Devidling paroline and lire supplies
e live War Department for their figures
gentleman from South Dakota (Mr.
you will NETES with me that were R ml
creases above three as present in force.
make the telephone att the more ESTED-
The failure of small bustness concerns
to the Budd case and I have here .
CAST) bei expired.
for resepetiation there is not . Member
that to farmers.
is A. calamity which mar country cannot
GALLATIF, MD., a (14)
Struk-down of the profit street of the
Mr. ENUTSON, Mr. Chairman. I
of this Hyme who could eu tack to the
Willhart the Delephone the farmer
afford to les come tax pars To give small
the Wer
Budd Manufacturing Co. Contrary to
gield the gentleman 3 additional min-
district and defend the excessive profits
Congresman, First District
the Depression coe might receive from
that would have been made from War
Would not only be handicapped in farm
independent telephone companies a puit
use.
operations, necesditing frequent 000-
toward fediure by congresional act le
House of Washington,
the In this dreular that they
Mr. CASE 60 what did VE propose?
and Navy and ship centracts, without no-
tants with neighbors and Business people
unthinkable. And yet that la what we
Please pentact us the MI - - is -
had cade a. profit of only 1 percent or
Ou back to the father who amt for the
negotiation.
in town, the health and safes) of bis
will be doing or WE approve these tax in-
werething like that, listen to these fig-
doctor to treat Isla child, After ha get
The CHAIRMAN. The time of the
selective sales tax at the sub
family would be Despardiard for vent of
creates.
of our Davide and De Exis country permit
from the recurds in possession of
the dreser's bill. It is postible that be
gentleman from Smith Dakita bas seain
ready communication with the family
In this matter, the Compress has a
enibme, of which at el
the War Department:
found the WII pretty wiff. Re renegott-
expired.
physician.
great opportunity to protect small bus-
are farmets. This service la nei . IDENT
Regraded Unclassified
10070
CONGRESSIONAL RECORD-HOUSE
NOVEMBER 24
1943
CONGRESSIONAL RECORD-HOUSE
10071
Mr. DOUGHTOK. Mr. Chairman, 1
Mr. GBANT of Indiana. This letter
denomination, Protestant and
vas dated August 4. n sald the Ind-
In the very few introtes at by dispose
- de 6 jeb of n tabor.
is all probability, work the MB. A las
have einoere appreciation for the fact
State euch time as he may desire to the
& lawyer And * Stranghal
MII, beling highly ledbsical, needs care-
genteman from Oklahoma (Mr. Juins-
dent happened the day before,
I de not have time to go lata this the
that the members of that committee,
The CHAIRMAN. The time of the
coghly. I could rand restrutina Ina
account to make out one of the
AG and phinotaking emelderation, and IT
year after year. have been patient and
and (B) unanimosi ement. Mr. 20HH-
gentlemen from Indiana has expired.
the Protestants, the Lithers the
years and event then them is NO EMO
would Keyn impomiste to write with 5 bill
kind mouth te Haten to me come before
Mr. ENUTSON. Mr. Chalrman, I
Christian the Catholics, the
dell everyinly the return Is surrect.
upon the thor. No. I em net objecting
them and tertify.
806 of Oklahoma was granted person-
pepir do not mine paying taxes bet they
to the eas rule. - far M It applies to that
BCD to revise and extend his remarks.)
yirld à minutes to the gentleman from
American Association of Collinges, and
The must clear chiligation of the Crie-
Netrosika [Mr.
various hospital masuriation Yet the
e into DU of profound despondency
part of the time relaing taxes. What I
Des has net bem fulfilled in this NO.
(Mr. JOHNSON of Calaboros ad-
Mr. CURTIE. Mr. Chairman, a little
committee turned . does and to Unit m.
- beg contemplate maleing the
50 objecting to le lacking tatle VII ento
The tob that Congress should Dave done
the für and attempting to ENE me into
dround the Committer By newb ap-
pual. Eventually 11 with cheme, We
resurns, Mr. DOUGHTON. Mr. Chairman, I
in taxation bas tisk been dene in this
while IMPO when members of the Commit-
voting Enr or against the will as a whole.
pear in the Appendix of indiag's Record)
cannos 80 un taxing exempt income and
NIL I name with the chairman of the
Les on Ways and Means wire asking
field with time as be may desire to the
IX. has bas charged, and I understand
unshamous email to extend their re-
then expect people to file a claim for 1.
Ways and Means Committee white be
un MARON addressed the Commil-
marks I was earnestly in the hope that
- from Pentiry/vania (Mr.
upon good suiberity, that while the ME
said that there Das lesses ten much talk
Les. His remarks will appear hereitter
refund at the and of the year. We no-
EMIGY
under consideration will raise ensured
about inflation. These has ben Los
in (5r Appendix
surre member of the committee would
not - on destroying the - Das
make fur a strong eltimenty and have any
Mr. RELLEY. Mr. Chairman, 1 am
$3,000,000,000. the opening up or bun-
mum of the wrong kind of talk about
nek unantmones consent to expange
everything the cummittee had drive up
national income or property left If 12th
appoint to (ble to bill. There are RV-
drede of cases, CRED that
Mr. KNUTSON M/ Chairman. I
There has tren to much talk
and The principal reason is
have been finally settind, and repapiti-
rield 1 minute to the gentlemen from
tax thre. I realtar, however, they had a
enuntry.
about box . change m . farm price of
she inchision of the tax provi-
mine settlements of these CMM under the
Indiana (Mr. Guirti,
tough JOB and I am very much pleased
The CHAIRMAN. The the of the
& change in a wage level is eving in name
Mr. GRANT of Indians. Mr. Chair-
gentleman has expired.
MAR whereby the families of lowest to-
per rules set furth in title VII, will in all
inflation. I de net believe It does.
over the [act that we are emätng this
man. I nik documents ement to pro-
Mr. EDUTION Mr. Chairman, 1
- are (ubject to taration. The as-
probability cost the Government same
These the are the resilt of an infia-
hill DIRE tu the Senste today, I feel
$3,000,000.000. Are - about too caise
ceed out of order for 1 minute,
yield such time as be may desiry in
seption for 5. married man Is true 8500
Denary situation
that the taxpayers are entitled
and but $100 les each child. Does no
$2,080,000.000 too laxes, give 1992 30.-
Purihermore inflation - net marly or
The CRAIRMAN The gentiaman
to a tax un that is not retroactive and
the entleman from Michigan Mr.
Irom Indiana NO - consents
I hope the bill names back and becomes
Micrism),
- ever give s-thought to the struggles
000,550,000 un opening up and recepts-
ruinous to a nation as deflation Is. 1
or the poor to win meet, bread, and bit-
war contracts. and wind up
have warned before of this, and I worn
to proced error of erder.
a law before the calendar year 1043 -
Whibout abjection. II e 8 ordered.
(Mr. MICHENER addressed the Con-
Mr. and their consequent institity te per
some $3,000,000,000 was of than when
that our grestest danger to the
pire.
There nas no objection.
The chairman or the sommittee told
milter. His remarks will appear -
will This imades of rank Injuities.
se I worder.
ranit und file of the prople in this mun-
Mr. GRANT al Indians. Mr. Chair-
after in the Appendix.)
(Mr. EXILEY asked sad - pro
If it is rigbt for these closed cases to
try-and especially to agriculture-in
us that in the last 5 yes re the tax hand
revise and extend his own
be opened up, why did not the committee
groting to be from ab attempt to trime
pan, as August a from the din-
of Unde tan base reached down into time
(Mr. MICHENER asked and we the
permission to revise and extrat be th
remarks in Line
tering in a separate bill on the subject,
about & deflation after this was is over.
true whirts I have the hear to represent,
informes, pay envelopes. and other prop-
Pvt. Cirarlei 11. Run. ni Misbawake,
marks to the Racoxa.)
Mr. DODORTON, Mr. Chatrman, I
and give the membership of the House an
But that stlempt will not certainly be
erties of the American people to the a
reportanity be look thoroughly into the
elemger to the extrat that - permit
Ind, via with the American Reventh
Mr. ENUTSON. Mr. WM
you 5 minutes - the gettinmen from
tent of changing our tax revenues from
Vegula (Mr.
matter? Way Segistate on the la
as Inflation to take place DANF. Purther-
Army in Brdig. He en then confined
80,000,000,000 a year 50 $43,500,000,000.
a minutes to the gentirman Imp Dilla
Mr. FLANNAGAR. Mr. Chairman, I
. tax N. Are - about to put through
more, the Government Das taken the No
la a hospital effective term malaria and
winder who was hurt let taking that
fornia (Mr.
un discurted over this tal in more ways
ingisiation by tacking ft. ento a tax but
spensfulity for determinime by and large
shell On August 4 be write his
additional $18.000.000.0007 I believe for
Mr. HINSHAW. Mr. Chairman, 1 de
Ran state
that # would be trapossible 5 put
the leni of income of almost entry single
family: anying
the mont continue to consume
not intend to take the full 5 minutas by
in De Cril place, I - straid that "
through If considered independently
person in this Nation As Img - that
Device PROCE Augoni way the
food: où doubt they continue la buy
any means. I hope an one will terrodar
us dodging mir tax responsibility.
after fine and open debate and with the
is true, W have , corresponding obliga-
and known - in the passe, and cument DA.
clothing-st least what la available to Le
me . fee minutes to express my gratitude
Unier the tax ыт passed semetime 94%
right to sevent?
ties to - to it that the they
The: family tel the better and that
bought-but I believe, Mr. Chairman,
for this moment of vindiestion.
in formate tuillione of dollars and DOV to
Mr. Chairman, because this MD con-
repeire to ant defiated or directed in value,
unfortumate incident, that buri. to Itself.
that more than any other one group in
A. use over a year BED when VE ven
risponse La the demande of the President
taure title VII. I cannot note for it.
which 3% what will happen to the extent
Following the publicity
that has been hurt by this ex-
considering the conference report un the
and the Treasury far a will that would
Mr. SAUTHOFF. Mr. Chairman, will
we permitt inflation to happen.
given the incidente relating to Lt. Ora
releave tax program, our religious and
tax bill for which I had previstally FOUR
produce ten or eleven billings of dollars,
the gentleman yisid?
The mased I think the tax bill sheuld
George 11. Patton, 21, to the last several
charitable institutions have been hurt.
the conference report came into the
Mr. PLANNAGAN. I yield to the -
have - written from the standpoint
w come in wus a hill estimated to bring
hours. this funily bas made known the
IL her bein the endowed colleges, the
House from the Benste etat
tn - $2,000,000,200. Do not furget
theman from Wisennair.
of Um real need of wartime revenue of
contacts of that lister, Of roune, they
hospitals of America, the orphanages, if
la now known and what sas then knows
Mr. SAUTHOFF. The geutleman
the Nution on the une bard and the d-
that #: are spending billions of dollars,
cruld not help but fell as any American
you please, and the churches of America
as the Victory tax. 1 believed that us
the ester part of which - are borrow-
trom California (Mr. and the
version beteren the potential supply of
father and mother would feel ever such
that have taken the brunt of this cui in
was the most unworkable, the most acts-
lag. and that some day we have en un pay
gentleman trom (Mr.
commer goods and the trums of the
an Indident, but like every other Ameri-
the national Income by reason of cur tax
thing you want to call It, phone of
tack every cent we terme. The time, in
objected to any I wasted
people - the other is tariefy at fiellows:
can, their parament thoughs LA the
program.
tion I had ever seen and I had the Light-
by opinion, to Increase taxe la when our
to ask the if they tells that the valdier
The coly real ACCIPT to inflation, since
early and successful end to the war.
In 1942 the contributions to réligious
By, with only une ether Member of the
she ⑉ drafted into the active had
inflation - & mountary problem, is to
perple are making maney, as they are to-
It is with considerable pride that I
Institution were the lowest on # percent-
House, to vuse sgainst it. Two of the
the right to represtiste?
remove the promize upon prices. The
der. and can stand the additional bur-
read to you, Mr. Chairman, 4 statement
age basis in the history of America. In
most affable gentlemen of the toursa
Are we meding our responsibility
Mr. PLANNAGAN. The charge was
way to remove the pressure on prices to
which terms issued today in Mishawaka,
the is will be still lower. An unfor-
estate who preside over the destinies of
as representatives of the penple, when
made have yestertar that in paying a
nut fundamentally by setting up so
Ind., by the father of this young soldire:
tunate thing happened when are passed
nur words approached me following that
the Treasury neude maney like 16 DEFER
we vm suicing the address bnys
o. P. A., pot fundamentally by partng
1 but na personal fellicas agust Date
the withholding tax-something that
vote and asked: "DA you vide grains.
et before, br fungiving billions of dellars
not only do the Aghting trus to DAY a
subsidies-Use an mond-best arth-
end Patien. If for la a god man, $ they
that Victory tax?" I mid. I did."
part of our tard an. I am worderlag
ude that you have to use if you not use
violated L principle song established in
to we or in the tirst tax bill, and then in
my, les's keep him. We need ged nan
Amerira. We have always held that IS
Those words went far and wide me
Provide tax 6 request from our Benetary
shall the anldier boys are going to MY
the fundamental funds-
I - willing ta let the FRAM Peri M M and
the country and this gentismen was set
of the Treasury for a we providing for
when they come back and find that to
mental method - to write your tas law
service of an Individual's Income If an-
drip the while thing. and get - with 104
bitterly condenined at home That -
the drst tax bill we forgave BIVID or
a it does the job, That 130 the burden
tributed to religious and charitable Instl-
tre se cleven billions of dollars, bringing
war. I want to make 4, deu that - ale
not make public the letter true Choise to
just before election and una of #
eight billine drilars, then came sims
of my testimony to the committee seme
tutasa was eximpt from taxation; but
to a bill for only $2,000,000,000.
friends and political appoints stated
with 5 sur providing for recegnitiation
veti MP. I advocate then a program
apine. the promá: ciberaise, - sould have
consider the individual-and there are
On resterday, when the autoridy will
"Hrearaw has voted against victori by
of contracte that will probably on the
different from the Treasury grupaial, but.
made it polu trag age All is MM, " sept
millions of them-whom acte Income is &
YOU before the House, the argument was
voting against the Victory tax Not,
taxpayers $5,000,000,500. Are are ask-
one which would have gleided about the
atlent steut the while affair until a man
salary to the withholding tax
Into that, in paying we were
or the Incident TM marie in the new
I find that the noble Commiller a Wath
Moy or addre boys to ert enly do the
line them - du the Rabling and the a-
name emount et INTERNE to belo par -
In order for them to carry on paying to
Then " falt that - abouts interes the
and Means, the Treasury Department
Behing but to DAY a part of our tood bill
ins alou? I wonder.
for this sar.
Bouth Bend Tribuse of the Inter - had
these aplendid Institutions they must pay
and everybnity in the Unital Staries
(Mr. FLARRAGAN sucked and was
Briefly, the figures are as InDiews:
a tax on exempt Income and then at the
as will While I thought the argament
received trum our en We doo't want to
end of the year file a. claim for refund or
sereer that is EM a minerable tax a
and demagogie, to forgtving in
given permission to revian and estemé his
$136,000,000,000 of income paid out, KII.-
stand in the way et & if Clessing
the fint tax hill and in this tax bill esir
own reserto to the Recreas.)
000,000,000 of personal taxes, leaving .
Patien.
credit spainst the United States Govern-
start with.
I therefore appreciate these les unl
Mr. DOUGHTON Mr. Chairman, I
total of $115,500,000,008 of spendable m-
ment. The result is that it is making a
name the Treasury two of the ten or
That Mr. Chairman, a the kind of
time billions asked for, I - not - (er-
yield 19 minutes to the gentleman from
name in the hands of the people. turt
Inmindous inread upm the Income of
montents of visidication. The vided
tax is repealed by this Bill. D and
tain that the segment cannet be ad-
Caltfornia (Mr. Vocami).
eventy distributed, of It distributed
stuff of which Americans are made Let
these spiended institutions
the Army handle its own problems and
not have been enacted in the first plan
Mr. VOORIUS of Caltfornia. Mr.
to the people getung fairir good incomes.
I offered & bül to the committes which
vericed that in purming mach a are ve
let us get on with the winning of the
Mr. Chairman, this bill we are - Mr.
Chairman, the remarks of the
M the name Ume, the en-
would provide that an employee may no-
are fording our bese to both the Eght-
war.
sity NA imployer of his anticipated non-
sidering today will please no -
- and the parting.
from Virginia, via just addressed the
sumer goods we can produce will be 500.-
Miss SUMMER of Elinois. Mr. Chair-
and Mrs. John Public are entation to a
Committive. culline une of the reserve
if we continue to produce for
at the beginning of a taxable
In the around place, I do net Valok
man, will the gentleman sield?
year and have that amount subtracted
simplification of us returns. Il y -
side VII, which provides Aur the remago-
why I appaied . closed ruis en this MI.
the wat, M. of ocurse, - - and will.
Mr. GRANT of Indians. I rield.
gested that the Ways and Means Cop -
Unlian of war has any gúace
First of all, may I say that my regard
We could raise more muney by taxes,
from his vase at each pay-roll period
Miss SUMNER of Illinuis. Would the
before the withholding tax was applied.
miltée take a long vacation - -
in a. tax au Why? Wall, les - will
for the embers of the Ways and Means
I believe, and 1 thank - mught to It
That prioriple has the support of the
sidering new forms of NO shall
Jua why, A tax NEI has te be bronght in
Committee to & very sincere non and mtal
would be hard. I know II world be tard.
Leil - the date of that Ind-
may be able to return user
Weder a clound Tule. This is accuracy La
am going to say to criticiam el this NO
I agree with everything anybody and
dent?
colleges of America of practically every
I are sure they will all understand. I
about its being hard But this is . hard
Order to prevent amendments that would,
Regraded Unclassified
10072
CONGRESSIONAL RECORD-HOUSE
NOVEMBER 24
1943
CONGRESSIONAL RECORD-HOUSE
10073
time, the hardess time America has ever
equidable all the was along the
vided be de the la single and has
known. If we had that kind of 6. tax
that, bot I would make It to accordance
with the ability to pay. After all, It la
dependente and makes $1,200 zu 7th as
I so straid of the siability of this
pointima are Sire - to npiration of
Boddey
Milers
program, than 6 bill such as was enacted
or less.
country uhro we were spending $4,000,-
spartment how office brildings, and other
Eyme
Referse
Franing
more per year than we were get-
business which disnetily occupate with mêi-
houstricks
Streets
by the House yesterday would not neod-
not true that people with large Incomes
If the individual la single and has as
una in tram teration, Now when we are
Vituale and orporstions required to pay
Mis.
Heide
Product
sarily result to Docting prices MA because
de not spend is, 15 to not true that people
dependent be would be if be
gending $40,000,000,000 more per year
taxes - - derived from the ques-
Carine
Ramped
Oder
the preseure topo prizes would have been
with large Incounts do not contribute to
made $1,500 at Ins: If married and -
Holders 7ML
Name, This
an inflationary demand for goods. Ther
other dependenta, be would le charge
(batt R are gettins in from lazation, I
There reserms are alward if so attrogt
Charges
Jackson
Bant. DL
removed to & great estent With & 200-
Champion
Jarman
tas program supply and demand
if he made 61.500 or U be was may-
II to Umr for Congress to Ughten
should to made to apply them to Inbor -
D.
do. Everybody does, except that group
document thet.
Hortern. Ps.
am beit and bring to . real vartime tax
and unless - ultering mothi
Cullen
Johnson,
Bngin. call.
would generally balance and much more
of low and fixed income people who were
ded and had nos or mure
@
Das behind the reserved the interpresting
Drave
June
-
freedom could be allowed in the whole
forgetten by the House on yesterday.
he would be exempt If be made 12,400
Mr. DOCGHTON. Mr. Chairman, I
rush language In the - - under-
Disartery
Sm
Mr. DISNEY. Mr. Chairman, will the
or lest.
economy.
sland. why later registrations with net -
Do
En
Pr.
People cannot really save the Income
gleid such time M he may delire to
Dissen
gentleman yield?
Let us MM exactly what this Thease,
studed in the in SMITH III.
Ends
Our
Mr. VOORHIS of California. I yield
A single person making $1,260 ce less
the sentleman from Louisiana Liver.
DUUDA
Kennedy
Belth Fill
they are receivise now except if they
We fully that - & - rishe table In
Baton
Exit
Styder
save it for expenditure over long perioda
to the génilaman from Oklahoma.
who but had net as much as - 20-per-
Baneral.
granted for the consideration of this bill
Elbren
Mr. DIENEY. How would the gentle-
cent increase in tala earnings little Jan.
Mr. BROOKS asked and FM given
that Party little as the diss stout in when the
Per
Blue
fitarpas. A/A
of time. I think en expansion of the
ancial-security program doold be pro-
man make an equitable tax 00 abality to
perminium to revise and extend his re-
Nome modical the vol. trus nevertheise -
First
Elgin
United
unry 1. 1941, would actually noin &
wus to impostically register - print
Ristu
vided for with long-term savings of a
pay where the variation between Incomes
yearly ruise of $147.10 in bis miney, or
marks in the
spárai - us
Popirty
Taber
Mr. BROOKS. Mr. Chairman, I veted
Pum
employery nature 80 that they would
la so grant under 45,000? A world of
approximately 81325 per month,
Lamberiem
Themas M. di
the murning for an open rule to the
Bluevely yours,
Puller
Thomas Tec.
cume back to the people gradually over
people are not making any more now
If a person with one dependent TM
Yes
Parent
bectime of this bill I am opposed to
-
Titlets
- period of time M they faced the zon-
than they did prior to-the war.
earning $1,500 and had received less this
Pronidest, American Admin of Labor,
Furling
E
Todas
Mr. VOORHIS of California. That ta
a 20-percent Increase in his Income since
em/ of the provisions of H. R. 3687 and
date
Martin, Milem,
Trucaid
of old NET, 18 health, and
The CHAIRMAN. Under the rale
Callegther
Mains
January 1, 1941. the would actually -
in ardiv to obtain a. separate vote on
Viram, Ga
as
on,
right.
I do not believe . proposal such as the
Mr. DISNEY. A grant many are mak-
celve $131.50 for the or - Increase
the sections, an open rule was twoes-
under which the bill is being considered.
May
Own
Marritt
Walser
of approximately $10.55 per month.
In the vote this morning, the over-
st the conclusion of general debate the
Ollintie
Miller, One
Weise
Treasury made would have worked, for
Ing musts more.
majority of the House Indi-
bill is considered 5.3 road, and anted-
Girlsis
Miller, X
Wype
you would have had great refunds right
Mr. VOORHIS of California. That is
A person married with not other des
manta may be offered only at the dire-
is
Whetchel, On
nated its dedre for a clased rule which
after the war. Ithis that would have
right.
pendents, making $1,300 per pear under
Grant, Alm.
Whitten
bem o dangerints WAY to do 11, because a
Mr. DISNEY. What formula would
TO adopted As à result of this action,
too of the Committee on Wage and
Mursity
Orwn
Mom
Wingtowerth
the same circumstances, would receive
11 MEYES THI curdul purpose la continue
Means.
-
Nome
Williams Pm.
large part of the value ni these refunds
the gentleman suggent by which tax reach
$115.95 for the or $0.65 per month,
Mr. DOUGHTON, Mr. Chairman, I
Name
those who can pay, and not burt those
appailtion to certain rections of this but
Excess the
would almist surely have been
A perma married and with time de-
O'Brim, T.
Whether VA.
who have not had any bigher Income?
and in voteng the membership of the
offer a committee amendment,
BATTA, 7a.
O'Latry
away in a brief but violent post-war in-
pendent, making $2.400, would receive
House must accept or reject the hill in
The Clerk read as follows:
Mari
fistion
Mr. VOORHIB of California. The
$165.10, or $13.75 per month
will I liave smaht this time menty to
Committee sissedment deved by Mr.
The SPEAKER. Do this mil call. 205
In this whole problem Congress has
gentlemen asks me that question when I
Naturally, the more dependents the
make plain any position m reference to
Document: On DAEP IF, to the third -
have maybe & half minute remaining
Members have anreend to their tames,
gollen itself fairly badly confused in the
less they weeld receive by the exemp-
adoption of the rule under which the
of the table, states got and learn
chanking. On pesterday the debate ren-
and when I have promised the Chalf-
e quorum is present.
man that I would not ask him for any
tion. The highest flaure of $13.75 per
"28181"
sil ill being bandled.
On page 16, Use a before "Berlian". bant
Purther privatings under the call
tered around the question of infistion.
further time. ao I shall do a thing I ordi-
month for & man, wife, and one de
Mr. McCORMACK. Mr. Clairman, I
*(a) la and - - ST, aber
sere dispensed with
The majority voung for the bill perfer-
parily would not like to do. refer the EVD-
would be less than a 10-percent 280M,
are in receipt of & letter from William
line 1, teans the
The EPEARER The question to -
day contend the people all bad ample
which you ean plainly - world -
(leman to my testimony before his own
Grent: president of the American Prints-
"(b) Textile pars to which applicable:
to the amendment.
buying DOWER to stand sharp increases in
within the Little Steel formula.
tion of Labor, protesting against the pro-
The conditions nais by subsection (A) tn-
The emendment was agree! to
prices. On today debate bM centered
committee, where I attempted le outline
how I would solve that problem. He will
This would help the
Via/ca of section 112 of the pending bill
actor MI = relative to that graphile shall TMI
The SPEAKER. The question M on
around the question of the tax burden
workers se bear no much about We
Any views or opintons of Mr. Orden
application with perpet to years De-
the engrusement and third reading at
with Members contending the country
find Unere my soswer to this question,
are always worthy of deep sunsideration.
glosing after Deminiour n. NO"
heard many to the well of this House
Page 121. line F. striks our "(4)" sont (part
the bill
Is bled while. Yet in this but triday we
Mr. DOUGHTON. Mr. Chairman, I
yield such time as be may destre to the
any they could not vote for subsidies ter
This letter states the position of the
The um was ordered Le be engrowed
renfranz the one (vodamental measure
"In/"
gentleman from Florida (Mr. Panal.
cause they would be really paying the
A. F. of L. to opposition to sertice 111
and tead a third time, and was read the
that could be taken. the me effective
Mr. PRICE Mr. Chairman, I have
grootry bill for the rich M well as the
In lbe event the Beante aments section
Mr. DOUGHTON. Mr. Chairman,
united time.
measure that rould be takio in combat-
poor. Now we have & proposition bn
112 , manner satisfactory to the A. F.
these are clarifying that
The SPEAKER. The question is a
Ing inflation As I suid - moment IMPO,
ocotinually tried to help the white-collar
that will help mly these who are
el L. I know the contenta of this Intite
sarry et the Intent of the committae.
the pumps of the Mn.
unless that measure, courageous taxa-
worker, and If Unite had ben so upen
rule I would have offered the following
ally suffering, and I believe We will all
will receive the regulderation of
The CHAIRMAN. The question la co
Mr. GRARHART. Mr. Speaker, I offer
time, In taken se are forced back on Inter
agree they need help.
IM Bise conferees when the bill la tm
the committee amendment.
a mollsn to recontamit.
destrable methods, methode that are not
amindment:
The committer amendment vias agreed
The SPEAKER la the gentlemin op-
as effective, methods that da employ a
& part 2, line II, of H. IL 2017, Introduced
I hope we will find nome way to being
Fenure or
to
posed
to
the
bill
greater digree of governmental control
by Mr. Domanes, chairman of the Commit-
those who are really bearing the houriest
of the economy. But we have to use
burdens on the home front. To exempt
Washington, D. Nownbo 22, THE
The CHAIRMAN. Under the rule, the
Mr. GEARHART. I um appoied to
use on Ways and 19, 1949.
them from paying en treome tax would
Bin June W.
Committee rises,
the bill. Mr. Breaker.
them methods if we do not effectively
REVIEW out the erilion and add the following:
of Representative,
Accordinaly the Committee ram: and
The SPEAKER The Clerk will 20-
use the Fundamental one. Generally
"De 4 primidal farther, That on individuals
give them a raise that their employers
visa por name for the tasable your to
Parkington, II. c.
the Speaker having resumed the chair,
part the tankies to recommit.
(pesiting We have to have the O. P. A.,
have been unable to grant. There would
MY Data Commission: I was to direct
Mr. Gout. Chairman of the Committee
The Clerk read all follows:
bot para than 135 percent of bis grom
eubaides, and all the read, for the simple
be no color of B dale stiached to this
your to amision 111. as pup
- for the taumble year beginning in
of the Whole Bouse on the state of the
M: GRABILITY moves to exemmit the
remon that we have not passed a scien-
relief and there would be DO expense et
43, 5 IL a lhe tax bill new pending
1941: And provided further, That be has no
Union, reported that that Committee.
NO R. n. sear to the Committee on Ways
Hão and effective Las program.
dependents and that tita - Income for the
far as administering 18 connerned.
the United States of Impro-
having had under consideration the Mil
and
As a matter of actual fact, from the
tablité par la and - #1,200: Provided fur-
(Mr. PRICE asked and ess given per-
(H. R. 3637) to previde revenue, and for
Mr. DOUGHTON. Mr. Spruker, I
mission to revise and extend his remarks
This section requires any organization,
figures I qualed a. moment ago I can
Planty That an individual who has one or more
10 . first enteptions, who are esempe from
other purposes. persuant to House Jun-
move the previous question on the
point out that the amount of Income
dependents and that bis given Innume for
in the Recome.)
mader exction BI. to the so antrial -
dution seo. reported the same bank
motion to recommail,
received on the afters by Amer-
the texable your la not liver 81.500: Provided
Mr. DOUGHTON. Mr. Chairmail, I
first, stating specifically De - of goe
to the House with an amminiment
The previous question was undered.
loan families today is about $4,005,
partner, That en Individual who hM a bus-
yield 2 minutes to the geotleman (mm
- holps, and
band or wide. and no other dependenta and
adopted for the Committee of the Whole
The SPEAKER. The question is on
But it is by means eventy dis-
that bis pm Innome for the taxable year la
Oklahoma (Mr,
Oil, CREW 24 of Be committee report = the
The SPEAKER Under the rule, the
- your allimiting to directed to the questi-
the motton to recommit
tributed of course. Pillson million
- one 81,800; And provided, That 4D tab-
(Mr. MONRONEY stated and will
this revices for requiring these
previous question = ordered.
The motion to recommit var rejected.
families receive lesa than $1,000.
videal who has & bushand or wife and une or
given permission to revise and estend
Mr. PRIEST Mr. Speaker. 1 make the
The SPEAKER. The question is DD
Some receive, of course, high in-
There dependente and that this por income
his resparks to the Berms.)
Onter exining tax e large of age-
point of under that a quarum is not
the passage of the bill.
commis Total Income to persons who re-
far Use tadable your la not are 82,400, and the
Mr. MONRONEY. Mr. Chairman, 1
Miller enjor 100 exemption end daty of
present,
The question was taken: and on a
cative in excess of 45,000 of indocre in this
provation shall prevail (that is each cast
Intend to vote for this bill but I carriot
this - pot required to the information
The SPEAKER Evidently . querum
divisim (demanded by Mr. Hers) there
sountry amounts to one-fifth sa much
member Individual's Income shall be 120 pro-
est of 5/8 por Instime for the tatable year
vute for It without first sayure that T
minima
is net present
were-ares 200, boes 37.
as Lhe income received by people who get
To Total come la the attention of your
Mr. McCORMACK. Mr. Speaker, I
Bo the bill was passed.
less than $5,000. A good deal has been
beginning in shall not be eubject to
think 12 to a wesk and faint-bearied ap-
1 that the of these exempt any
the tax Imposed by Utis shapter for the TRE-
- and organizations are disnelly our
move a call of the House.
A avotion to reconsider was laid on
made of that point, It has been said
able year, if the tatable year begins price
wartime tax bill 1 think It M work to
prosch to 5. real.
Pibe with companies required to par In-
A. call of the Regre was ordered.
the table
that mer tax burden on the people below
to the firmization of bustilities in par-
extire of the amount of
- taxes, and that 153 ginanties is become
The Clerk called the roll, and the fal-
GENERAL LEAVE TO EXTEND SEMARKS
00,000 is not commensurate even under
NELS var, M pronlaimed by Line Preddent."
the Treasury proposal. 1 do and quite
revenue = provides la relationship to
by - widnepread and afforting . -
egree. because after all there are 38 times
our expenditures in this year of the TAB
Ade - tax mains and avoidance,
lowing Members failed to answer to their
Mr. DOUGHTON. Mr. Speaker, I ask
This amendment simply provides that
These organizations - originally give
names:
comment that all Members
a person who has not received m much
I think 11. la faint-hearted beaut think
the tas exemption on Ue therry that by
(Rell Mr. 185]
may have 0- Ingistriative days in which to
as many people getting incomes Tesa that
60,000 M there are those getting more
M a 20-percent Increase to Inter Income
It marks another congressional petrol
- But operated for profit, int that
Alien LA.
tuen
Belien
extend their own remarks an the Tex-
than $6,000. I would make the tas pro-
since January 1, 1941, shall be exempt
in action " shmuld be to or
en Date procesda toured to the twnefit of
Mass
Beyata
endo at
from paying a tax on häs income pro-
to hold the line against Inflasion.
- Bower, many ut these en
M.
I
No. 102-0
Regraded Unclassified
A5468
CONGRESSIONAL RECORD-APPENDIX
NOVEMBER 21
1943
CONGRESSIONAL RECORD-APPENDIX
A5469
sur extradad by htm - mail MI that Non
vide similar definite responsibilities of
Americans This la the great Brown
- extel = the any had not Invoices
military expert. 1 have policed
United (laimi tenn to 54 M
to surging the
We have tried promises to doare. We
und the radio. The collining perspação of
in you - . milliary - - . nate
sanda spres through al - Borga
- . negister - any original un the whole
have premises net to up war. We
In both justice and aquity 4a this
- is the with entently classed.
of the Noon Appropriations Committee taxe
in Palmitine who base base pleading The .
change to Chete - be have bern
-
of people, 1 have Interested II. R. KITNS
Army
have time TRAF vosid strugs hugard them
relate for every dillar the Anay in request-
+d. resitsing any desire in be et the -
preventad time - edge - of political
Commi Format med the not to with was
M scrept of paper.
which will permit them to receive in is.
"De bolders be vied -
considerations. au - - this - -
- TM ENT them WILD the materi fortest
belied - of Its - bettle leaders -
manda of and withe military
20 was you get una m/w AME you ENE
Three respect strength. If - temp Amit-
Imi and materials - high limite of
the salary they were drowing as of has of
crease of not mom than is Dervest
crée of Menicada ut training Italian -
parret early a August vitue the Ricities vaci-
I frei that - have a great Any, kind I want
diem wanting cery tu expeciation and
there Ent. If you base all
estd 10 any so (to belly-
foir nor follow mrs. there will be an
ary 1, 1941.
paint - at e etital period. Patien, -
IL to continue to be great and wells discriptiond.
mest IL makes to BAR of alles of
N - the withing
I do not have a personal with
Clines - milline of Tentaes who might
He - partially right. Totay's service -
sur
This is in keeptog with the Little Mist
- the writed pating - - the
General Pattern, trus I have - reposited-
be PROTEMC. 21 make - una of the tax
In . - age streugth drjesti -
en a of sill.
formula as applied to
- and with Vona, this be
Ity to our - - - in uniform, - -
that Canada and - - of the Drive
Miler la to Security na
MAC We world be pain simple If we used (III)
the MD without prevision to 15a
mediately, It a Urgent that this till be New in
- upon . withing en . at with has
as to the Dathers wid mothers of our country
Date no drati the arrica
has into nie being aus - be use
- - will this est end willted any from
ind in LM liands, verging.
defenders.
AND that CARADA, within the pairt 4D days, -
Bothing is en into them
"In rigity to Patter's qualico - to visa
I wordd not cast any IVA the po-
- past of be Aray with the fall
The Anna are beginning la march to -
replectment.
TM the via line, the audier the
erails passions remit Reporta from the
of our It nain us
tury because tois EATE marshaled the as
We - our to swithful to that boy on
quiet - replying It's my I plan
fighting Increas 100% paior No this Is-
that of the fact that the Arma overyti-
- of the sold.
the mini Use who wints his father that be
on stand delling
educt, General Pesition tad demotatrated
- were et par by -
piscued the perfer: evinve against
hand Aunrima etaleimen would Insk out
A Buck Private's View of the Good
wording w the premit the general
retainding shilling - . but is
then
the world Like any munder from Caley
THE the acvil butter of future Americans
Patton Incident
part into & rap. ass, employer
sticuld be circus that Visa unprovised at-
is main de thing of all - Childes -
to Livergin 154 cream -
If - jel. tum comp home to 8. Nation without
privity, calida Que midier a. and and
task que . primate anlidier - distroyed the
in begin to worder. We wonder LE the Ind-
BOX data) name mission
EAR Tur be store and pr for bis or. We
paire billy and other epithela and ordered
general's as . of the
es of a Amy may have our
who to suga & mechanized was withints -
termitted have divuble-crumed that boy if we
SPEECH
in the to The same attracted
Sevent Any or any other division.
pents - they did. our Besocial
time el time world's ml.
bill Intim FOR - in a Nation that via -
OF
error persies, indiving the commending
In stew of the wide and goblic-
cards, We if very other postitity
The Aller greatest stroke as - - to
smont poor because II did not non of
dire of the baspital. the doctor who had
Its the brident the received I de and -
of hilling sur mandoem member - -
spoit the AATI Addition bird and in
The leaghed at President Wilson in-
HON. JED JOHNSON
the sed . -
- st to suggest that Ost-
baurted fathers were called: We wus-
Mother Beture = cur side, Our bundred
ESTIMP the Unied Blaim was unit.
"20 a 51 of Pary Patton struck the middler
Patter - mind of his libe
der If the Anny. - # la - -
OF
victane, all ISM at 40 before or
pm Prouklin D. the "he
in the HAT of the hand en the back of his
mediatriy.
adder copy milliary sepects, standar - los
120 above INT. and потала prodeum
24" Deceitive the United States was work.
in THE HOUSE OF REPRESENTATIVE
The (a) ever signtly, and .
pours,
subjected to same sivtlian superviso. And
estant B protecting the patient, made
der
lastly - worder and - without vary MY
protura MI besting Enter to Tue know.
Ext us nime que risk the los et liberty
I the hundrede of of
Wednesday, November 26, INI
OF toward aux - pullet tarit by
easty, whether - view of Mos premas mill-
and the - of American lives bene Acter-
legal Americana surbing in the ell industry
, destitt. The commander of the hospital
taily situation, # Whaty were et the nom of
lice M with Let - male forever on the
The House in Committee at the No
In See in in These ⑉
um Intervement.
et et fatherines chil-
with of America's President pleating the
House on the state ot the Utile bad lide
Celternir, to the high MIA - - them
The cuil in bigh temper, Ind ether
peáce will - respected because America is
The Drafting of Fathers
com at the cost of economic chow, will
emalderation the - (If R. (MM) e -
sictime est sinesting state and distry tag-
and for uther purpose.
patients - views, then whine to beste
Indimed las & victory. It to to think
prepared. Bezue Aderica has an sibiguate
exná trum Long binin. the Home
the again. the addies
about
english of natures
and with all and min all Day
All I en these and American Mord is
Mr. JOHNSON of Oklahoma, Mr.
superved berk offered to return to the
EXTENSION OF REMARKS
attes day. month wher momb. person after
Chairman, I have missd the indúpso
and trud. to galm. his feel a Pailim
or
nowage in Asia. in Bunge and e the enen
your they tam fought nn. As and
of members of the Committee at to
left the haspital without noking Date to-
This very primest man with exping
of the case.
HON. ANDREW C. SCHIFFLER
Dirt Farmers Reosevelt and Margenthan
sustoms they same risitted that that
world are lying in hom und - Date
time to read 6. letter I have written a
"In - Inter americated that the midier
and the seys true their - in
or way -
Under New Farm Labela
tent Since I tepus to spenk many
our popular and able Chief at Staff of
last been disgnosed - a medical car à
en MICK, to tanks. and fn plazas
bee widows and arghana have been created.
the United States Army, to which 1 to
intere the hospital but be refused
IN THE DOUSE OF REPREMENTATIVES
Chat might fall le lack of - and off. They
All this places a heavy debt on our two
is my painful duty to discuss the General
to - the - - be finally - ordered
EXTENSION OF REMARKS
have that fallure smild mean delhi to them.
Ours the text that DIE one of them ever
herd by his valt doctor ARE Pattro info
Tuesday, November 23, 1943
bechage the las of the perhaipe
Patton Incident and request that in visa
falls us the future the inst et the bod or
of the wide publicity given same, the 415-
the trapital the mildler demanded to return
even the loss of - comparen. Without fac-
Mr. SHIPFLER. Mr. Speaker, under
the or the bullet or the wespon
eral in question be removed tma to
to the finat immediately, but no food to
leave to extend my remarks in the Rec-
HON. HAMILTON FISH
les, without etráin, the min ent while
Dos -- might have given them. Ours the
2005 - another with."
et vil. the at nevers. pour Corrdinator, Mr.
EME te - that these who return Bod &
The further address that doctors
can, 1 include the following edilarial from
of NEW YORK
command immediately.
Icken. prior Deputy Coordicator. Mr. Balgh
démantacy where the peoples' will is dans
The letter follows:
at the berrital disgnosed the pinis the
the Wheeling News-Register, Wheeling.
IN THE BODGE OF REPRESENTATIVES
K. Davis and his staff have played the gema.
Durs the lest to rate for the mangled and
24, 1948.
- emte malaria and mid be was partially
W. Vs.:
Blocking, interfering carrying the will NOTE-
Wednesday, November 14, 1942
Kirein Ours the task tu make
Ing esta sorms formation AR in sight
Des Deract c.
w: the time of the givent's in-
THE of FATHERS
ficer, prement classier, and
of the gial at richary, the team pay of an -
Chief of Staf.
naw report revested.
Now that roung nen - all know-young
Mr. FISH. Mr. Spenker, under leave
uning better
- mignifictor
War Department General not
New, Orneral, them facia apesit for them-
- whole attle children - all - are
granted me to extend my remarks to the
Flatine with et It had. all has called -
Let on perform our tasta with the ferror
Washington, a c
Assuming Una funt-line reporta are
articlly being abd, IS miss LAP think 11
Racoro, 1 tectude an article from the
sea the legalty and the Imagination or our
Data Cereit I NOV saking the
true. I am amend and chagriend st the
cake think man more durply than when
Washington Times-Herald of November
my That has CIRD a. newry drain
- who an Buss and way Jaga to knep us
liberty of writing you with regard to -
Abdement that General Patten is still in
-- - the proposed drafting of
en our Vireigth für the activitie
24, 1343, toy John O'Demnell, based am
trum eppresation.
dispirable indident involving 11. Des One
of the Seventh Any. and the
fathers the - punsty objective manipoint.
In making that America - -
further statement that the to closed.
seme remarks I made in the House of
Cio behalf of a millico end a quarter serv-
B. Patton, It., who avidencily in . as of -
It M beartreading to . father toro
need the some e the all resures et Usa
wene We Date - für Asia - the -
framen end of the last war I name
sussed and struck . - a
Permit me to any that I and se B. Instructions
trom his time and children, but when the
Representative yesterday concerning
a hospital sens in Bicily taxi August
primite = Progre for more than & year with
Larger mend and remimit argerta in -
two of my distinguished restitements who
et of Whre Une treate of penne is
our pindes to BRIVE Out and outry uness
- it must key she hall in Discing the
Bluer and Birthille an burded in the ruins
I have med - number of accounts of -
the Thirty-ends Division during World War
attend, the etation excede the party per-
have bitherio claimed to be dirt farmers
al at a the because of the nations
Insident since the story - firm will the
m. 1, and NEW active service tn the friend
of Bertin and Tokyo.
email and Income ut BINTH comminal -
but have Intely been empelled, through
well-known radio LAMIT suide
I know first-hand of the haurum and
O. P. A. restrictions and regimentation,
that NSDT piso.
2 have in THE la . Inch Time a have
eventing. The billowing dan.
pata of stielle all about
What with be the et the per
te change their classifications, cas as a
of Die cumplay publishint what - suit
- If the offorts and man to the Brenth
emilim of children too betwen the - of
Atention error the www.as % This
Anny mally know the flurta in commetion
formater or producer of Christmas trees
an official Army stairment. M
1 end 14 am to por to maturally VISDOM
father A Charge fait as be -- the war
with unfertunate meddent and of the
and the other as a. horticulturist or apple
The Plight of the White-Collar Worker
the beath of . bürn guidant What are
the tought la (1) . better liting the nis
follows: "General Patter u lbs -
sed despicable setz of the -
the monomic of young una up
grumer,
people No times mis: "Wime - whip mis-
EXTENSION OF REMARKS
smith Army, has a until H - e
NM = qualim, : lesse term parsonal -
to и years of Ap: bring tom 1937 trum the
It is a sad commentary and & VERY bad
ler. I - west Excel to
example tu the dalrymen of the Nation,
activated and in performing to customer
that thry world not went DEL to
business which they have IMP DUE NUM-
protes the EYES of our
or
- et their but whether they
NO ang the by General or "
Orgeral Patton - DETET been
credit to getting upon their fees? What of
who are asked to produce more milk and
The Animal legine advicior
are cause of the trtal farts or not the muthers
the no-extied Industries will
butter in the was remember. for the Sec-
between Ins and nations to
HON. JOHN P, NEWSOME
and fashers et the palment Dada NOTE entitled
- in which the pung men hild
retary ef the Treasury, Henry Morgen-
amaintain poste, and la regise agreemina by
anyone also in this
- know that their communding officiers eno
sgrement
e ALABAMA
Trusty the country w cold list -
Tot dirperated eyes under auy and all a
long podlinns? West of the Grands of
that Jr. to sell out his datry herd et 100
which Cate young fathers ace just
That poes has already begue mail-
IN THE HOUSE OF REPRESENTATIVES
the general had. not bird -
Hanne to protect them and when humanity
pedigred eilt when the country
new paying too. the payments upan visa
(ary and and attivities et the United
minded. that Cheneral open de
- to An NO- Buch insidents might be
la threatened with a sbortinge of milk.
Ritates and Oral the have agreed that
Wednesday, Nostmber 24, 1943
me of the ensident with -
the young wins MG the # inposible to
and class with ETT:
3 intell
Harrer, the country le skill safe, be-
the western Atlantic ent the Pacific shall
Mr. NEWSOME. Mr. Speaker, every
generali dennancios - representative - at
FORMATIVE Le Misler's anay, tark - In United
When - of thousands
cause " will still have Christmas trees
les by ms and MP wire Anarican
dars and ordered him to mass de
Ross
Member of this House la fully aware and
E have . boy-a tax wrytan
of firmides being up. tera of the
and apples, unless the o. P. A. interferes
and that the mitero Atlantic,
be removed trom no - - - -
sende of being tena of USED-
and regionals all producers of Christ-
and Indian Organ shall the
deeply ennermed about the plight of
that ereat group of American citizens
country la assured the good Md -
by trand from Inform who a now MIDIA-
own willtion." The Leave - -
where to the Bungan tigenter. the also m.
senda of be being tens of
mas trues and places further restrictive
patrolled by Brick Desmand of Mas and are
They when any ship or plane enters the
known as white-collar workers.
cording to truns-line - M
limits - & buck private. No devist with
of - being wiged DOE
registires - apple gruwers along
me other Invid - - end else-
to main - thank a mikm the think of the
with all the other farmers. It would be
woes B. is anformatically under the bah
This concern base been expressed in
fortherming until the general - The -
rumment Indientes.
Name M well - the lived com of exitions
of UNIVERSITA of 1
unfair and & shame if Forester Rosevelt
The representative at Chine Busta, One
the remarks 60 this floor made by many
do NO NY - of
front-line disputations of -
of «Che trave young offers and - wrs
are bokting direm and jubs. who
Briwin, and the United State have at No.-
Members.
event to have that ne casts meldand will
probably be regismo - IV-P1
and Barticulturist Morgenthau sere
are agreed that this attangment shall mo-
These are the people who are being
facts of the incident - - or
Fire - to the future
It males us this of thousande upon that
sgain formal to change their farm class-
smoke entire division, the -M -
officers and - - -
times stlar the surrender of our ton until
Let the MIX General Montal that I -
estada of Gevernments employees was have
finations due to further New Deal regi-
squented ky the from salaries and the
the execution of a toal agreement to
closed tor as months IL - VP
not now, nre have I ETAI wt myself up, as a
been deferred. It makes un of the
mentation.
That Basi agreement for years must prov.
Increasing state et living and higher
taxes.
There = listle doubt that if gover
Unclassified
A5470
CONGRESSIONAL RECORD-APPENDIX
NOVEMBER 24
The article follows:
AA We understand is. old Parmer Benry
Mismi la only the falles Gatant A Cass Name
1943
CONGRESSIONAL RECORD-APPENDIX
A6471
emisld livelip 159 hand # has only bad - -
CAPITIS -
can do at in Ima than - hour, Ang Utile
and Palm Back have - I city
- Injulidian by to beep the
This - all entrad pora ent other
mailing and family,
premint productime que when
distimation which barr les estantial la
Bill joi est I have, - that them
(R) John O'Densill)
"Dairying La . namily affair in the DAL"
grounds the the International
a - - is needed por 201 M Che
you by the Do sei print elic-
india kind if planting pilta un, a and
In Done days when Capital BOAR palpitates
checked the BARRY - of the Fishkill and
whom our teland within dost 9482 your
- an - required in 1918.
nutury to delay The monthly
that nisim to the Internal excess of Acte-
wish the true Chrile of giobal thinking and
The his with, end absidren have 50 ges
years ago the Immigration Runny -
post-tear planning. It la teartaning to - MG
will was all know, - the COML
les the noble laty, Countes by la
- name = su AND a 1442
nturs of RE intrumes la the propez
la after the WE There ATS the whe for
department, time - by
a a wither no compaised -
earnest Congrestion rise in the socient well
On that with 12 or 18 area that can
this country for them of no -
A We - and to
pu. If - 10 Xpm in
= the mise of RM, e by plans to the
of the - plant the - or two up-
main . dairy
ted curing tax trial
them Utate which De -
an emid have continued their ut-
- - die to - production and to
within must to made esigo
billing de of the American people. In fart,
present constiturate, - of - and hath,
We restitued that If smild be . ME difficult
the was to an representation a
true all of the II quan that the
meatining the by name and demanding
for Merry to jump up from bis Treasury disk
- de we prigram. KFCS If they tad
spend the transary time et the
plan M a Willing car. Rup by sup 6 a
reilef the the WORK
5 ========================= and out to the barnyard
We believe that this community no the
American perple will 4PM WILD - Intrie in
- the repratog direlopmente
Ornament N and to train there
being jad Into des The port-ear period
Representative Past. Repations,
M great the Jenery's and Sald
Mia Vuice of the People 00 this - TM
and - immediately following the
the - supme filly
with comity tring the frishing finales. The
of fire York, representa the Twenty-sisth
Henry andity:
"My exighbon have 12. 13. or 30 cow. and
power that be mest certainly da & Fabe
della Was and adversire-
time seud be de-
registration under the vertine company
District if the Enger State, in which reside
thing in amping Card of Pat. e
tiares Dirgit
with in the places, mate the
to MAY will a the MDS.
Hyde Parks es-tarmer. == activitation,
The whole family pitches la and works. I
- EMMIRIATE DEVELOPMENTS
Rve & imerbing der mide it
pin of Deir plan BAI my
these United States, Rev bet a - is the
our
Frankile D. Received (sibose distory -
can't espete wish that kind of labor. They
- powers will keep mit the e
uner et MI darge entititions de
11 - this internal plan to Am-
will " the While Bowe), and that apple-
en make - good living that way. I MOT
Name: We don't want him has
8. Re followed in quick sup-
etc. which have (2) your
knowled and dairy herdeman of Fishkill,
Then munagestaly:
- at the armistion a November 11,
information and min Man sure
ena das 1 WASL ta - will 64 en a
Heary Jr., greatment Serviary ut
"But I en unite . good living raising sp-
that - directive in provis required a
hirty and Expiriciality as I an,
att. Der surpried was sustrative en
il tna the pdit of new of the
the Treasury use the Into William Wootla
plas. I've est to make & living I'm going
- of their their estant, and
written evidentation trail the inputy
Last alection day Squire of
Government department.
that the ICOP to has
to spend the not of my Its 00 the plan in
Leasens From World War No. 1
de works
Duschess wrote himanit dewn M A. "Oree-
and I no make . very good living
IN and of termination and can-
Fiftz Du not slice Immuel
The bage is Bet stilf or priorrupe-
at the village election broth. andity
releing apples."
- a was custrada.
to
ding.
les if error with our eyes bount
passing 9 bis sontent que of dut TAXISAT
Team. with o touch of sentiment in bise
send The poblem of keping later -
Math Settle - for the
» the international ene it an ping to
EXTENSION OF REMARKS
averlais is bung data to on -
bys cheerfully and countries feeing . to-
honet farmer's brushteg aside
payed the reposatibility of the pusi-
nah of contrair innin at tar
centry - the If An-
ture dedicated to the of growns of
A tear sith to hand. Parmet
to
- problem tu more
and st this each claims WILL la lest in
trim is to pay per proper part in wild
Christma trem.
Henry game the confident
HON. WALTER C. PLOESER
abs security et hand on a large state
the billions ni dritive z entiment date-
after or sur to kryi strong 400 and
Squire Recement didn't about 11, but
"Every - of those COWE is going to find &
that whin in the M
minstines.
- Them quities that tam her
neighboring familiers product waste and
good boest. Im enufident of IL And they
a MISSION
abish via hippen in the future.
Beventh. Registro mind M premit
they per must be present, not any for
gummed IDAI the sign old AQUITE load picked
will be milked, too to you can - there
up a Int. of Conde knowledge on
will to no to the Nation AD for na milk
IN THE HOUSE OF REPRESENTATIVES
the The resigned of burneta procedure
"hold-ups en and "Belage to tar-
ise but de to that if the wirld at
end relivit the receival of
mination artisments M up the restrá
brg.
time not their - from bis study of lend-
production la -
Wednesday, November 24, INI
replace id respinsibility and
group for edinauring thre nutters missing of
h to the persiber and any if un-
Items and the U. n. A. But anyway. the
By as to Gevernment personal, and
the Present landency The varima Empa to
port rubmit, to En need to the VISAL mil-
aquive quit dut farming and that name
Mr. FLOESER. Mr. Speaker, as sible
lie emiling of all wirld
- eu creas payment
im If en instrutional princes la en-
pubed neighbor Pan of
Bt. Legis Industrialist, Mr. n. J. Rund,
tal born advant e order to make the por
if the rigina of the people ate Mig
This come the titlings from Fub-
Keep De Marigary Oct of the United States
vice president and secretary of the Co-
ado of und material the find and 100
introduct a the fountrica of the Republic
es. M the very time when the Engire Brate
tury Electric Co., in 8t. Louis, Mir, tax
-
are being underminad, then # la the lawyers
Frenth A dew-down - paymente se Des-
The Lawyer's Place in as Upset World
of Amerin who nat n/w the bus and of.
and Nation Der . ella familine, abread and
EXTENSION OF REMARKS
went me & prepared memmandum e-
entrecta which with many war can-
As 1 FOOL - LT Use only professional
uld on farmer Heruy has
titled "Lessons From World War No. L"
-
trisin proited in the stopping of paymenta
vie fair an caib to support,
pus his dairy herd = far evention and -
which I think la worthy of the attention
to 4 to e
EXTENSION OF REMARKS
and the Countrution, % are the
notified be will attick to apples. Menry has
HON. JOHN M. COFFEE
et the Members of the Congress:
NE . ta the internation pro-
suly class of VITIZEN on = The public a
be casting = en et time apple
put or New Dal tritae Receive
Lessem From World Was No. 1-8am -
emas with regird to the antiment of the
mills who table that - IIVE, Purther-
CF WARNETOS
BEFORMENTATION
portima of contrata and Agree-
HON. JOHN JENNINGS, JR.
DIE If is 130 anyer who a beil. qualified
IN TRE HOUSE OF REPRESENTATIVES
- required This required The EXIASA or
for this trit. Be ta a true - Schouled
Dras of Virginia and to has - personal
OF
wresing with mother wirth time . la
in . knowledge et the or eur
WHAT WILL BATTER WHEN TICO will -
- to ID mueths for the amatier ver pour
will bereafter on ⑉
Wedneiday, November 24, 1343
Exclare wid delaga of e to LB munths to en
IN THE move or RETRESENTATIVES
- crim. be de prime what
plan and to belt with that hundred brad of
1. If the war =
Mr. COFFEE Mr. Speaker, recently,
will study Lhe SHIP
lego - contractors.
is gring = breath the startice and stat
Monthd and
Turatay, Apumber 24. less
when tvo to wife 21 a the payer who
the dirmande for Pastice rataed To-
to a Miami, Fla, newspaper, there AD-
Immediately after Armistice Day,
- CONSTITUES NON SUBAT
Mr. JENNINGE Mr. Speaker, under
Esidly and visa all
territay by Representative Para in behalf of
peared a striking editorial regarding the
IL 1916, be will be fortified in has expens-
: All of the signature which brought shout
eihers mayor bitten citizam If para
so-called Count Alfred de Mariany, who
titimal regarding bis probiema when this war
leave to extend my remarks in the
Ma Above signature et eventa Are product
from bigh
Honserst end Is
was all very - aux. - far es -
has indicated A desire to emigrate from
enda. Al DATE them developments.
may Tom etage is set for = repret performe-
Recosp I include a creat and timely nd-
n has - % or Chrich that D 124
the Bahamas to the United States.
Inumediately after World Wir No. L were an
- en ding the Item. The only sufated-
dress by The Honstrable Maleolm McDer-
Inwyer primary the duty No use
know, there RATE here very few time When
wither Expure Insurent or nid Mine Benry
unexpected to war contractors as they was
lat titure today to that this volume ist
most, dean of the achool of law of Duke
cut Info the open the 1 abili persent,
I am convinced that the American
of helped not HAM to his political
difficult for them tu
- Mill - reminated will la not Ima
University. This address was delivered
to enlighten the purple of laen la
- We resil - when both Date
people, by a large majority, are bitterly
REPUBLICE or STATUTUAT
name 1. Utres Larger the servat than they
before the North Carrdina Dar Associa-
mind stending the what to believes la -
opposed to providing an asylum for such
- in Normiber This cancelation
the right for is the lawgers place in Bils.
that rould be taken as qualino-
tion In Rajoigh on Ortaber IL 1541.
the the prilitied windom et Representative
2. At the end of World War No. I. the -
- -- miller - to I or 30 times
upset wirld - 1 NA 12. Prin - other
tridestrables as this man, De Mariany.
Dean MeDermott was Ama of the law
Fun But HASE BIT true 10 trair a grudge
and his pain We have enough problems
mediate change in attitude 20 Covernment
the Stans für women War No. 1.
acuroe não De prople gel. - -
in this oventry without taking on the
contract and payment procedure MM "
department et the University of Tennes-
or a I milke - shall
when - prople of farmar evertituents get Into
sharp as the difference between day and taght.
- is ARD SETTLEMENTS CAR
- before soins to Due University Re
me et agree Lawyers - - but Us
transitie HAM spoke HERE mit in everting
burden of suplying food and the necessi-
M acon M the Dovernment's nest to we
34
is a learned lawyer and a great Anim-
sm than any other were
and placed the blame where it belongse.
Use of life to much as these. His recent
materials ended, the presentive changed from
4. Mest of the hardehips which war -
by and dedrestand di Gat BMT - said
can.
"Due to the eractions of New Dest and
conviction of using "bot" all, stolen from
CL 2º. A regimentation, Pracking D. Roomment
now fer production so empirate m statust
7 and informatración suffired to tata
the was enraced No many years in the
again NX men viras. That la the sappy
the Regal Air Force, is alone sufficient to
to my has hast to standon the claim
and procedural sincine
- the Tworth con ano developmento OUT>
STRUIT of - profession, I em tax
- in 5. as be situinated.
active practice of the law in Knownelle,
prierved by the tast that : may im be de
of being e cus farmer and * are Title
justify bile being excluded from the
BULINON or THE COMPTROLLER OF FILE mumt
Tenn. where be was high rank ID the
mailing "mmiroversial - We are -
of formeter or distributor of them."
United States, The testimony taken in
3. When World War No. ented the -
profession.
to both end a What se
said Para madiy. The announcement will
his recent murder trial Indicates that be
soller of the Treasury jeriod the
The Price all verbal andime,
Mr. McDermoll's address fullown:
mant M. - in. What - the rull and
but Pana recovered bis com-
does not possivas the character to warrant
poure and continued:
his being welcome here. But the edi-
accounting reins with . tarte which -
Miglions win, memorantum orders, the
Mr. Rice. Mr. President tother. spó pulle-
MIP the DESIT
mailted Government payments to war -
weal - and all production -
tan et the Berth Cirillas a Association,
I pou that 1 Barre an
Tillers miles sway, sucther or my con-
tarial speaks for staelf. Here 11 As:
An - of Congrem - required
Ing. the Army. MARIER
BUTT WANTED ISEXS
Capa, Name Commission -Lesse, est
" is with a delling of that -
- have to quit to way spun of partien
Heary Margrathou of -
- e - limes like these Our
You 12 give me credit. : we sure
while to ciga with New Deal price regulations
so open the gates and use the -
. months after the by the -
1 departments. Make sure
our minds. and all - company are
for recognizing the proprietira of the
- the a P. A. willing price on cors, has
The verdin in the BAY Marry Online murder
- livels all kants informal commissione
in Priparty mainted in withing,
upon - great set property so.
ein. Brancer, let ne my AT the that
relloquabes his this - . dirt twomer, -
- em told . singular place = Interne-
of the Dent Art.
the quinty and termination et as
I propise No agesa with user tranknew and
milling this dairy bent. and becomes . harti-
Tional not for the acquirital of
POR DELATE ES of
the « . Devertment crde -
the assued Alfred de Mariguy but for the
- is - cale,
WAT eut to a and envolved
vie so für the visa advanced,
sim. withing se be allowed w direct -
When gestlemen - Washington main DO
TERMINATION
minumendation the Name: permit attached
bines of retting about to plan. our are for
We tried to case Parmer up
3
INT
4. A. part of the delay = payments whis
Has Onvernment purchase -
true that estar.
us, then the next to speak EMT belongs to
ty wring him to Tuda onto bis - for -
"Not guilly, by . vote of a to 9. with NO
war contractors suffered et the ml of guil
(Mrs . Timed only modial by
% NEV townt. I part-wat plan-
intile while because 9a had . sip that Our-
Wax No. 1 - about through that - all
de forms submitted
ning a Miss natures BI. it is ail. end
the "placcial" quità - much 4d fai the
error Dawey - trying to get the New Deal
End deportation."
The people of the Dated States are Inder-
so mantat the - affort without required
" 4a Consements Milittary -
rightly as, the - ego tu more
ested in the renumendation of the verdice.
& being part Citrat (sternational pnò-
plantet. The truth is that what - are here to enti-
to (if) the com price milita and NO
transactions to be fully coverni by -
Departify NEA un in properting this paper vot
the Miegenthay hard from starration.
De Marigny balla - the Prencis Island of
enders end contracts.
in Chase notraes firms No the
Imm sus be sind = M for as
ride party politica. If stat I
We por tack from the Treasury's public no
Maintaine in the Indian Omail These .
A targer part of the payment
for AU - - WATER deland
possible. = que end that the kind of passe
ham to et time an attach upeu Our
ling, long way from Names where . murder
a was couled by telemal and
"Impl" be friewing the Artistion on
this be mind as this up of
present administration. les - remind you
lations department , first-person disclasion
pay asked that be te - ME the Ba-
it, THE Investigate with understed
planning does net ou ser din.
BAS nan = the high commette of the party
by Parmer Marry a tax status of Zie dairy
procedural requirements. over which the a
att will NETT that a y some na time $1
mm = prem are special un spenly of the
bird.
bacine. The United Blance is com habey by.
contractors had = control
the la tide crews and make certain that
formal contract papera have
man airthe to the atterment tn win the pm.
perio sur medical guren-
- Deferred to them.
ment If you have not streety doba so, reside
tii belatf of cont
Regraded Unclassified
254
New24,1943
HOTEL WADE HAMPTON
Operated By South Carolina National Hotel Co.
COLUMBIA, SOUTH CAROLINA
Lee wisness :
says we have made mistals
Affiliated
NATIONAL
HOTELS
that we have not called
-
HOTEL
THOMAS
them "War" taxes instiad
HOTEL ADMIRAL -
*
-
Valiage
NOTEL AMERICTON
*
of excess brofit taxes
-
]
NOTEL PAUNT
*
-
intergato
HOTEL CLATROL
no man should make
*
-
Now
HOTEL INC
NOTEL - NOTO
*
-
Maridas
NOTEL LAMAR
.
was. Find out what
any mmey ant of this
Inhale
Checke
HOTEL PASTOM
*
- -
Class
I have said about this
NOTEL GOTH
-
Oklahoma
Other (as
OLLANOMA
Trade
HOTEL ALDRIDO
*
- Code
HOTEL
VALE HAMPTON
*
Type
Also
HOTEL ALKE
am
mines AUTOS
-
7+ g. made available Bank
NOTEL IDION
- -
artus
-
to time deposit
HOTEL MOTOR
HOTEL NUTIERN
&
nom LACENA
" he
HOTEL CORTES
for
10% of thin a 100, ovo
NOTEL TESM
Cáme
NOTEL RECAMER
NOTEL RAN If
CORONADO
which even is larger
JACK TAX COURT
MILANAR COURT
Nom CATALES
Losis
Nom PLACA
letter
- una
Mede
NOTEL PALLA
- Augula
nom
- -
ANGELES cours
*
Train
E I
HOTEL
MOUNTAIN LABE
Regraded Unclassified
255
1
ASSOCIATION OF NATIONAL ADVERTISERS INC.
285 MADISON AVENUE, NEW YORK CITY, N.Y.
OFFICE OF THE PRESIDENT
November 24, 1943
Hon. Henry Morgenthau, Jr.,
Secretary of the Treasury
15th Street & Pennslyvania Avenue
Washington, D. C.
Dear Mr. Morgenthau:
That was a great talk you gave us at the con-
cluding dinner of our Wartime Conference last week and
now that I am back at my desk I want to express the
thanks of all of us along with my personal appreciation.
I heard nothing but the most favorable comments
on all sides and I am sure it will do a lot of good. We
are sending out your talk to all of our members and all
of the advertisers of the country and I know it will re-
sult in better understanding of the continued need for
supporting the War Loan Drives as well as other Govern-
ment campaigns.
Sincerely yours,
Baul B. West
Regraded Unclassified
256
November 24, 1943
Dear George:
I got a good laugh out of your letter of
November 22nd. I often wondered why you were
80 helpful to me in preparing War Bonds speeches.
Now I know that you have inherited that gift
from your Uncle Rob.
You may be pleased to know that I met
your boss, Bill Hart, in New York, and whether
it was the influence of my speech or the "spirits"
of New York - be that as it may, he thinks you
are a great guy, and volunteered your services for
the Fourth War Loan Drive. So in the language
of Uncle Rob, he has swallowed the Treasury
propaganda, hook, line and sinker, and you will
be my bait for the month of January.
With kindest regards,
Sincerely yours,
(Signed) Henry Morgenthau, Jr.
Mr. George Albee,
Route #1,
Accord, New York.
P.S.: Have you accepted the advice of the
Secretary of the Treasury and disposed of your
chickens?
Regraded Unclassified
257
Route #1
Accord N.Y.
22 Nov 1943
Hon. Henry Morgenthau Jr.,
Secretary of the Treasury,
Main Treasury Building,
Washington, D. C.
Dear Mr. Secretary:
I have read - twice - the draft of the speech
you delivered before the advertising men.
1 think you were wise, first of all, to make
a speech before them and, second, to give them a
straight narrative. I assume that Fred prepared the
draft. (1 recognize a few cliches.) Whoever did It
gave you an excellent Job - straightforward, direct
and marching along in easily assimilable sequence 11ke
a short story.
My congratulations, for what they are worth.
It was kind of you to call Governor Lehman.
I am afraid he has already found a public relations
man, to Judge from the excellent releases that XXX
find their way into the newspapers, but If he has
not I am sure that 1 shall hear from him. Actually
Mrs. Albee's health demands that we stay in the
country. But I am so strongly impelled to find a
place for myself In some such group as Governor Leh-
man's that - If he agreed to take me on trial for
six months or so - we would try Washington for that
length of time . The Federal services are the only
place for a man like me. I inherit it, I guess. 1
had an uncle who took care of fish in the Bureau of
Plants and Fisheries. He was very happy there, was
Uncle Rob.
I hope that Mrs. Morgenthau is herself once
more, and that all news of your boys remains good.
with kindest ? Tskes to all --
All.
Regraded Unclassified
258
November 24, 1943
Dear Frank:
Several months ago in discussing a cooperative
arrangement between the Navy Department and the Treasury
Department for promoting the sale of War Bonds through the
financing of actual equipment, we agreed that War Bond
campaigns having as an objective the raising of sufficient
money to pay for various types of naval vessels should be
confined to campaigns conducted by states, cities, counties
or other political divisions of the population. We had in
mind such campaigns as were conducted in the cities of
Chicago and Atlanta to finance the replacement of lost
cruisers bearing the names of those cities, end also
smaller campaigns conducted by county and local organize-
tions to finance and just commemorative plaques in smaller
war vessels, such as submarine chasers, P.T. boats, ete.
The question now comes before me in a somewhat dif-
forent form through the desire of the National Maritime
Union, CIO, to finance and put a commemorative plaque in
a submarine chaser. I an very sympathetically inclined
to this campaign, because I believe that it is natural and
Regraded Unclassified
259
- 2 -
logical for members of an organization of American seamen
to wish to finance a war vessel. The Maritime Commission
is entirely willing to have them finance and name Liberty
Ships, but this is too much like 8. "buswan's holiday" to
carry a particularly strong appeal to members of the
National Maritime Union.
Wheress I can see the logic of limiting the finane-
ing of naval vessels so as to eliminate many types of
citizen organizations from feeling that they have e special
interest in any given vessel, I will be much pleased if you
will make an exception in the case of the maritime unions
and shipbuilding unions of both the CIO and the AT of L.
Members of those unions certainly have a special interest
in ships of war.
I make this recommendation particularly because we
have encountered real problems in developing Payroll
Savings Plans for American seamen. These seamen are apt
to work for B. different employer on each voyage and it
18, therefore, not possible to sign a payroll deduction
authorization which will be continuous, as in an industrial
plant. Sales of War Bonds to merchant seemen cen usually
only be negotiated at the time their ships return to port
and they are paid off. We are very dependent for the
success of this program on the cooperation of their labor
Regraded Unclassified
260
- 3 -
organizations. Therefore, when the National Maritime
Union undertakes to organize a campaign to sell enough
War Bonds to finance a submarine chaser or other war
vessel, the Treasury Department finds this a good answer
to a difficult problem and wishes to back the union up in
every possible way.
For this reason I hope that you will feel justified
in relaxing the rule heretofore agreed to, to the extent
of allowing the National Maritime Union to sponsor and
put a plaque on a submarine chaser in case its members
buy the required amount of War Bonds in their present
campaign.
Sincerely yours,
(Migned) H. Morgenthau, Jr.
Honorable Frank Knox,
Secretary of the Navy,
Washington, D. C.
JLH:myrifgt
Regraded Unclassified
261
TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION
DATE
November 24, 1943
TO
Secretary Morgenthau
FROM Randolph Paul
We have completed the Lazard case along the lines
indicated in my previous memoranda, to you.
We are now informed that Lazard intends to offer
illiam H. Schubart of the Bank of Manhattan a partnership
on terms that he is likely to accept. Unless you direct
otherwise, we will advise Lazard that we have no objection
to Mr. Schubart becoming a partner.
no objection affromes Byk
3
Regraded Unclassified
Treasury Department
262
Division of Monetary Research
0
Date November 22, 1943 19
To: Secretary Morgenthau
From: Mr. White
How
Our stabilization agreement with
Brazil, which runs to 1947, provides
for the sale of gold to Frazil, at
its request, to the amount of $200 million
at the price in effect under the Pro-
visional Regulations of the Gold Reserve
Act. Under this agreement we have already
sold Brazil more than 8170 million in
gold.
The Minister of Finance of Prazil
has asked that the agreement ue smended
to increase the amount of gold to be
sold to a maximum of $300 million.
There is no credit aspect to these ¿old
sales, as payment is made in dollars st
the price prescribed by the Regulations.
Regraded Unclassified
263
NOV 24 1943
Sir:
Pursuant to a request from the Minister of
Finance of the United States of Brazil and current
discussions which have been held with the Brazilian
Embassy in Washington, it is agreed as follows:
The letter of July 15, 1937 of the Secretary
of the Treasury of the United States of America to the
Minister of Finance of the United States of Brasil, as
said letter has been previously supplemented and modi-
fied, is further modified by changing the figure in
item (1) from "$200,000,000" to "$300,000,000".
It is understood that the authority of Banco
do Brasil to act as fiscal agent of the Brasilian
Government in connection with all transactions under-
taken under the arrangement provided for by said letter
dated July 15, 1937, as supplemented and modified, shall
continue in full force and effect.
Very truly yours,
(Signed) H. Morgenthaw, Jr.
Secretary of the Treasury.
Honorable Fernando Lobo,
Charge d'Affaires of the
United States of Brasil,
Washington, D. c.
The foregoing is agreed to on behalf of the
United States of Brazil and the Minister of Finance of
the United States of Brazil.
our TO 03.1943
States of Brazil.
RB:ec 11/15/43
Regraded Unclassified
264
PROPOSED LETTER TO BE SENT FROM THE CHARGE D'AFFAIRES
OF THE UNITED STATES OF BRAZIL TO SECRETARY HULL
BRAZILIAN EMBASSY
Washington
Your Excellency:
I have the honor to refer to the letter dated
July 15, 1937 from the Secretary of the Treasury of the
United States of America to the Minister of Finance of
the United States of Brazil, as supplemented and modified,
relative to the sale of gold and the purchase of cruzeiros
with dollars.
2.
I an directed by my Government to certify to your
Government that I was authorized to modify the aforementioned
Agreement by means of the Agreement of
1943, executed by me and the Secretary of the Treasury of
the United States of America, the duplicate originals of
which Agreement have been delivered to the respective
parties. I an also authorized to declare that the now
Agreement represents the valid and binding obligations
of the Brazilian Government and the Minister of Finance
of the United States of Brazil, in accordance with its
terms.
3.
I shall be grateful to Your Excellency if a
copy of this letter be sent to the Secretary of the
Treasury.
I take the opportunity to renew to Your Excellency
the assurances of my highest consideration.
His Excellency Cordell Hull,
Secretary of State of the United States of America.
RB:ee 11/15/43
Regraded Unclassified
THE SECRETARY OF THE TREASURY
WASHINGTON
November 24, 1943
Sir:
Pursuant to a request from the Minister of
Finance of the United States of Brazil and current
discussions which have been held with the Brazilian
Embassy in Washington, it is agreed as follows:
The letter of July 15, 1937 of the Secretary
of the Treasury of the United States of America to the
Minister of Finance of the United States of Brazil, as
said letter has been previously supplemented and modi-
fied, is further modified by changing the figure in
item (1) from "$200,000,000" to "$300,000,000".
It is understood that the authority of Banco
do Brasil to act as fiscal agent of the Brazilian
Government in connection with all transactions under-
taken under the arrangement provided for by said letter
dated July 15, 1937, as supplemented and modified, shall
continue in full force and effect.
Very truly yours,
Secretary of the Treasury.
Honorable Fernando Lobo,
Charge d'Affaires of the
United States of Brazil,
Washington, D. C.
The foregoing is agreed to on behalf of the
United States of Brazil and the Minister of Finance of
TORY
the United States of Brazil.
BUY
DATE:
Inance nes
FAR
ONDS
AND
Charge d'Affaires of the United
HANDS
States of Brazil.
Regraded Unclassified
266
- 25 -
NOV 24 1943
My dear Mr. Ambassador:
Reference is made to the letter dated
September 22, 1943 from the Secretary to the
Presidency, Mr. Amadeo Lopez Castro, to the Assistant
to the Secretary of the Treasury, Mr. Harry D. White,
and to conversations which Mr. Baron and Mr. Pasos
have had with representatives of the United States
Treasury Department, relative to the sale of gold
by the Government of the United States to the Govern-
ment of the Republic of Cuba.
It has been indicated that the Government
of the Republic of Cuba will wish to purchase from
the Government of the United States approximately
$100,000,000 of gold during 1944 at the price provided
by section 44 of the Provisional Regulations issued
under the Gold Reserve Act of 1934, as the same may
be in effect at the time of each sale. I interpret
our Agreement of July 6, 1942, as amended, to cover
the sale of that quantity of gold, provided that the
aggregate amount of gold for which payment has not
been made shall not exceed $5,000,000 at any one time.
If payment for the gold is made at the time of the sale
and delivery thereof, the $5,000,000 limitation does
not apply. Accordingly, I do not believe that any
further agreement between our Governments is necessary
at this time.
Very truly yours,
(Signed) Henry Morgenthau, Jr.
Secretary of the Treasury.
His Excellency,
The Ambassador of Cuba,
Washington, D. C.
RB:ee 11/22/43
Regraded Unclassified
267
EMBAJADA DE CUBA
Washington, D. C.
September 22, 1943.
Dear Mr. White:
This is to confirm our conversation of this morning. As I stated then,
the Cuban Minister of the Treasury, Ing. Eduardo I. Montoulieu, has re-
quested me to consult your Department on the possibility of increasing our
gold purchases under our agreement of July 6, 1942, as extended on July 1,
1943, in order to meet the abnormal situation that is expected to develop
next year.
The Cuban Government is concerned about the effects of the strongly
favorable balance of payments expected next year, which if not adequately
dealt with will increase the accumulation of foreign balances in the banks,
the dollar circulation, and consequent disturbances in our monetary market.
We wish to prevent these disturbances and at the same time to continue to
build up at a faster rate a reserve in gold and foreign exchange under
the scheme recommended by your technical mission in November 1941 and put
into effect by our law of May 2, 1942. In this connection, we are con-
sidering the advisability that the Sugar Institute might sell to the
Cuban Treasury part of the New York funds to be paid to it for the next
crop by Commodity Credit Corporation, receiving pesos at Havana with
which to make part of its payments to the producers. In this way, we might
avoid unnecessary transfers of funds and obviate the possible ill effects
of paying all these sums in dollars to the producers.
Though we have not yet determined to what extent it would be advisable
to carry ahead the plan during the next year, we are contemplating operations
of from $100,000,000 to $150,000,000, and thus we need the agreement of the
United States Government to sell us gold to this amount, and the facilities
of the United States Bureau of Engraving and Printing to print peso notes to
an amount of $100,000,000. As you know, the Bureau is at present filling
an lorder from us for $30,000,000. The denominations of the notes would be
further determined in accordance with the needs of the market.
As I know the difficulties involved in this plan, mainly because of
the great stress under which the Bureau is working, I wish to thank you
for the kind cooperation which you offered us this morning, in line with
your already long record of service to our country.
with warm personal regards from Mr. Montoulieu, in whose behalf I am
writing you this letter, I remain
Sincerely yours,
(Signed) Amadeo Lopez Castro,
Secretary to the Presidency.
Mr. Harry D. White,
Assistant to the Secretary,
Treasury Department,
Washington.
Regraded Unclassified
268
11/24/43
SRORET
Dear Mr. Stattinduse
The following type of frans currency has been proposed
for use by the Allied military forces in connection with the
French operations:
(1) the currency would be issued by the French
Coulte but this fast would not appear on the
face of such currency)
(2) the currency would bear the following legends
"Republic Française
Tresor Central"
In the view of the Treasury and Har Departments such
currency will meet the monetary requirements of the opera-
tions in France, and we feel that of the alternatives avail-
able, currency with the above inscription will prove the
meet satisfactory. The British Treasury has indicated that
such currency will be entirely acceptable to their Covernment.
is you Income, this natter is most urgent and it is hoped
that we may have your immediate deaision as to whether this
currency is acceptable from the political point of view.
Very truly yours,
(Signed) Henry Morgenthau, Jr.
Secretary of the Treasury
Secretary of Her.
Honorable & He Stattinium, Jrop
Under Decretary of State,
Washington, Do 0.
/24/43
Regraded Unclassified
269
25
November 24, 1943.
Dear Mr. Cox:
The Secretary is away from Vashington
and I an therefore acknowledging your note
of November 19, which encloses a copy of
material contained in a cable in regard to
occupied Europe.
Sincerely yours,
(Signed) H. S. Klotz
1. s. nots,
Private Secretary.
Nonorable Occar Cas,
Office of the Administrator,
Foreign Administration,
Vashington, 25, D. a.
GEF/dbs
Regraded Unclassified
270
FOREIGN ECONOMIC ADMINISTRATION
OFFICE OF THE ADMINISTRATOR
WASHINGTON 25. D. C.
November 19, 1943
Dear Mr. Secretary:
You may possibly want to consider the release of
some information of the kind that appears in the attached
cable at one of your press conferences.
I should think that security reasons would not block
the issuance of most of this material.
Sincerely yours,
Oson lot
The Honorable
The Secretary of the Treasury
Enclosure
Regraded Unclassified
271
BUTTISH CONE IDENTITY
CO.DI.LD CO, JITTEL POL FREICH NORTH A.I. .LST APRICAL CIVIL AFFAIRS
The following communication vine received 17 November, 1943
DC 142, 11 November, 1943
Att. OBCHARD
"rom:
MAEB
NR. SINGIONS
MITCHELL (8)
101
Decretary of Treasury and CONA
No. - ENTERSON (a)
I
Subject:
Conditions 211 sccupied Europe,
/
Nof:
BX Airgram 103; BC Migram 1141 300 singram 119
The follo. bin information has been glended from intercepted
mil relating to conditions in Prence and the other occupled ocuntries
of Incope, The mill ocn intercopted during the months of and
October and covers the meried from early Any to the middle of . ctober ,
It in subject to the date coveate with respect to accuracy and relishil-
ity as DAS the necessal tionsmitted in previous airgramo
ICOND D. CONDITIONS IN
It was reporte! in Tune that, as a general setter, French industry
cas suffering preatly from ack of rate caterials and & short 1:00m sup-
ply. in exception noted appe ru to have been in the cheqical (rtilizer
industry, which seo descrited in some detail by B. Sales witer. & fac-
Agille While the output of another was stated to have been reduced about
tory fa the production of fertilizer v.n.s sale to be in Full operation near
30,, 11, was regarded 11 functioning effectively. In still another area
chemical funtilizer alounts vere reported to be in full operation, albeit
suffering from a shortage of packing gaper.
Chortoges of fets nore the principal causes for civilian complaint to
in the lotters excirited. In early July it was said to be imporsible
obtain into unloss one tas prepared to pay 507 to 600 france a kilogram.
One reported that he had been able to obtein pergarine but once
since third that he had DONE for Aix months. Farmero, 50 before, suffered 1.0 the
vi January, 1943, another, that he had no oil since October, 2942, und
$ leas? from these shortinges 7 nly for the reason that they жето able
obtain hutter.
t ment was could be obtained but once a week; and, for when residents, sell- that
It variously reported that, in some areas, there zero no wines;
at of butter WOTD ovailable each month. Egi: new reported no In
ing ) grain: at 40 franco B dosen and chickens at from 100.000 Tranca pisco.
11-17-354
Page One
(over)
Regraded Unclassified
BRITISH CONFIDENTIAL
a town in the region of the Pyrenses, it vas said that, for each child,
one half to two pinto of milk could be obtained daily.
Several letters noted that, in many areas of France, the summer
neason had been unusually dry, thus curtailing the output of fresh
vegetables and fruits. In place of these products people were drawing
upon stooks of dried vegetables and canned fruits.
1.3 was the case in previous correspondence monitored, there were
many complaints based upon the shortage of clothing and shoes. Illus-
trative of this 123 a letter from one writer stating that his father had
one gair of choes, while he and his sister had nothing but slippers.
Tany writere attributed the extreme shortage arising in various areas
to acts of pillage, of varying degrees of refinement, by the occupation
authorities. One town received reports that, despite the dry season, the
local fruit crop would be quite good. Then the time for harvest had passed
without the expected fruit reaching local markets, it WE3 reported that it
had all been shipped to Germany. The tactics of the Nazi authorities were
making themselves more severely felt in many other mays, According to one
writer who had escaped to Turkey, the Germans were peremptorily expelling
many people from their apartments and homes to make the space ovailable for
billoting purposes. An Alsatian reported that his brother had been drafted
into the German army and sent to the Russian front and his family deported
because another member was in the French navy. Surthermore, the bombing
operations were the cause of wholesale evacuations reported in areas around
Puris and in places such as Lorient, in Bretagno, the latter said to have
been completely destroyed.
A letter dated L October, 1943, reported that epidemics of infantile
jaralysis had broken out in the sections of le Fuy de Licme, near Clermont-
Ferrand, and in L'Allier, in the Vichy region.
MANPOTER
Reports from France itself indicated that during the months of the in
summer and early fall, the recruitment of civilians for forced labor
Germany or in German factories continued unabated. in July it was re-
ported that the 21, 22 and 23 year old males had virtually all been called
to Germany. The condition of men sent to Cermany DGO siated to be do-
plorable, and the conditions of civilion laborers in Cormany was caid to be
risk involved. Toward the end of August the drafting of women of 21 years
sufficiently bad to induce thousands to escare to Spain, despite the great
of for forced labor in Germany was stated to be imminent. It was
said age that in the forced labor campo people from all of the occupied nations
were mixed together, - and that men and women more housed in the same rooms
Page Two
Regraded Unclassified
272
BRITISH CORP IDENTIAL
The trend toward prisoners of var in Germany becoming civilian
workers appeared to increase during the summer and early fall, A
civilian worker was said to be paid 70 pfennigs an hour instead of 70
[femigs n day, which nas stated to be the pay of prisonern of war.
Thile general conditions of discipline, etc. remain about the come ns
under the military, guards were removed. Civilian orkers are permitted
to nove about freely, are ((iven two neeks' leave upon their agreement to
become civilina workers, and, contrary to previous report, they reported
receiving better food and more food and clothing packages. Civilian
workers vere also granted more privileges such as the "MSE of
postal system, admission to coffee houses, etc.
hether or not the notmal food conditions had improved upon 8
prisoner of var becoming B. civilian porker is somewhat evertionable,
although on the be is of the correspondence recently examined fl uppeare
that some improvement can Is noticed. In this connotion, it right be
noted that the so-called "Putain parcels", & schete deviced by hrshall
Petain to send parcels to each French prisoner of ear, never paterialized.
Prisoners of tar receive / few parcels through the Frenci ited Cross and
the British Led Croan, on complain because nothing VES received through
the American Red Cross. in the other hand, civilier workers ST factories
were served lunch at the factory, occasionally had resh vegetables, and
reported generally that they received botter food win but had as crison+
ers of mar. In Inte optember, 1943, it was reported the civi inn work-
ors received nore trend. However, shortages of cloims NG shoos con-
tinued to be subject of coment.
is significant conclusion might be drawn "ron the devespendence was
that 1t appears ensier for civilien workers to obtain 10 packages from
France than for prisences of tar, Civilian wicker ere varmitted to.
receive a package each time they had a ticket ruthorists the receipt.
These ticketo tere obtained from the Director of - camp and
each worker and allotied three tickets a month; the of the tickety ::ere
good for focd percols not one for clothing. 4 sample for powerl con-
sisted of 2 packages ni sardines, 2 pounds of sugar, 1 of cocon,
1 package of tobacco, / cigarettes, 4 packages of VISERIA tableto 1
piece of scap, 1 juestige of coffee, 2 canj of lest extra 1 Inckage of
beans and 1 peckage of nate. Thile this gane food sickers eyst-am was N/50
available to prisoners of mr, the letters indicated the it nomewhat
easier for civilien markers to obtain packages. In the liberty
accorded civilian vorkers meant that they could obtain gone 1001 olsenhere,
a privilego not available to priconers of VET
It was octimated that approximately 250, :00 o: sur Lave
become civilian workers in the period from June to latober, 1943,
ORCHARD
ACTION: Treasury and State
BUTCHELL (8)
n. ENTRISON a
"A"
B. KURTH
Throe
NO. WASHINGTON
Regraded Unclassified
273
paraphrase OF TELEGRAM SENT
To:
American Embassy, Chungking, China.
Date:
November 26, 1943, 10 p.m.
Number: 1690
FROM THE SECRETARY OF THE TREASURY FOR ADLER
1. The Treasury has been informed by Mr. T. L.
Soong and Mr. Esi Te-mou that Dr. Kung concurs with
Treasury that the 1941 Agreement should not be renewed
under present circumstances.
2. You are requested herewith by Treasury to
submit your resignation to Dr. Kung as of December 31.
You say, however, at your discretion postpone date of
resignation until the last day of January 1944, if it
is your opinion that another month may be necessary to
conclude the Board's affairs.
HULL
(w)
Regraded Unclassified
274
HEL
Chungking
This telegram must bE
paraphrased before being
Dated November 24, 1943
communicated to anyone
other than a Governmental
Rec'd 10:06 a.m., 25th,
agency. (SCOO)
Secretary of State,
CONFIDENTIAL
Washington.
text For security reasons
be of this message must the
closely guarded.
U.S. URGENT
2228, November 24, Midnight, (SECTION ONE)
FROM ADLER TO SECRETARY OF TREASURY.
OnE. Saw Dr. Kung yesterday and asked him for
quotation on price at which Chinese Government would bE
willing to make CN dollars 400,000,000 monthly available
to United States Government. WE had long and amicable
conversations though Kung tended to bE Evasive EXCEPT
toward close. HE reviewed Chinese financial situation
at some length, claiming that change in official rate
would undermine confidence in fapi and accelerate rise
in prices, to which I replied Treasury Was not raising
question of official rate and that it made no difference
to internal prices whether United States Government
Expenditures wererfinanced at price of twenty to one or
of hundred to one. Kung, after commenting that Experts
could understand that but not laymen and that it was
impossible to keep secret price at which Chinese Government
sells fapi to us, stated that China has advanced CN
dollars
Regraded Unclassified
275
-2-, #2228, November 24, Midnight, (SECTION ONE) from
Chungking.
dollars 3,000,000,000 since outbreok of Pacific war
for constructing airports and providing transportation
facilities, Et cetera, for USAAF, that China was
preparing to ask us for another loan, and that any
increase in the Expenditures for USAAF would merely
mean an increase in amounts he would ask for.
Two, at this stage I mentioned the three
alternative methods of payment indicated in your
point three (re your 1672 of November 20th.). Kung
first rejected all three and offered as alternatives:
(A) His going over USAAF Expenditures with
Generalissimo and General Stilwell--which hE is to do
in near future--finding out where it was possible to out
them: and agreeing to bear a proportion, which hE did
not specify, under reverse Lend-Lease. I pointed out
that reverse Lend-Lease negotiations had bEEn protracted
and that it might take some time to conclude them, to
which he claimed that his government had already decided
to agree in principle and that agreement might bE
consumated in near futurs.
(B) His not objecting to Treasury shipping U. S.
currency to China to bE sold in black market, adding
that sales in quantity would push down price. But he
did not recur to this suggestion in his final offer.
GAUSS
NPL
Regraded Unclassified
276
PARAPHRASE OF TELEGRAM RECEIVED
FROM:
AMERICAN enbassy, CHUNGKING, CHINA
TO:
Secretary of State, Washington
DATED:
November 24, 1943.
NUMBER: 2228 (SECTION TWO)
3. I went on to point out that USAAF expenditures are
being financed at the official rate, that expenditures of the
Government of the United States in China are out of all proportion
to return on them and that the United States 18 selling gold now
in the Middle East to finance its expenditures, These remarks
emphasised your point two. In reply Dr. Kung indicated that he
had no objection in principle to the selling of gold on our
account in China, but sales in any quantity would push the price
down and also compete with the gold selling policy of China
without yielding enough to cover our needs. I pointed out that
sale of gold for account of the United States need not compete
with China's sales if they were conducted through one selling
agency. In agreeing with this point he indicated that the
Central Bank is at the present time selling gold for the Govern-
ment of China. He commented in passing that the cost of shipping
gold is so high he is considering selling certificates representing
claims on gold rather than selling the gold, which would be kept
on earmark with the Federal Reserve Bank.
4. DF. Kung finally said he was willing that the choice of
one of the following alternatives be offered to the Treasury
Department:
A. 2A above.
B. Your SC (Department's 1672 November 20) subject to the
consent of the Generalissimo and paying 40 to 1 in exchange for
United States dollars for needs of the United States Government
over and above what is obtained by selling gold on our account.
5. My comments on the offer are as follows: For 4A refer
to my comment on SA above) for the reason stated above - apart
from the fact that Dr. Zung would not specify the proportion of
United States expenditures China would be willing to finance by
Lend-Lease in reverse--12 is not worth serious consideration us
an alternative, though as a supplementary measure it may be worth
consideration. For comments on 4B:
(A) From the above conversation and from other a urces It is
clear that China does not propose to sell much gold and that
Dr. Rung does not expect us to succeed by this neans In relaing
Regraded Unclassified
277
+
nearly enough currency to cover the expenditures of this Govern-
ment. It might be possible, however, with the exertion of
sufficient pressure to push the sale of gold to the point where
an appreciable part of our needs would be yielded.
(B) 40 to 1 is & miserably low price. My suggestion on this
is that the Treasury Department request at least 100 to 120 to 1
in which case it might be possible that not less than 80 could
be finally settled upon.
6. with Dr. Kung's remark that this was a preliminary
discussion the conversation was concluded.
GAUSS
Regraded Unclassified
278
DVM
Chungking
This telegram must bE
paraphrased before being
Dated November 24, 1943
communicated to anyone
other than a Governmental
Rec'd 2:37 p.m., 26th
agency.
(BR)
Secretary of State
Washington
2231, November 24, 5 p.m.
TO SECRETARY OF THE TREASURY FROM ADLER
Raised question with Dr. Kung in accordance with
your instructions in conversation yesterday. HE replied
that missionaries had been receiving thirty to one for
missionary Expenditures since May l'and that all
famine (repent famine) relief expenditures had been
receiving forty to one from some date. HE was in
course of negotiating with Foreign Missionary philan-
thropic and cultural organizations about further adjust-
ment in rate they receive (re your 1474, October 13).
Above confirmed by reliable source according to
which missionarits had been receiving forty for famine
relief Expenditures. According to SAME source Dr. Kung
will probably give above organizations forty for all
their Expenditures in China.
GAUSS
BB
Regraded Unclassified
279
NOI 10 be
U.S. SECRET
CUPY No
12
BRITISH MOST DECRET
OPTEL NO. 385
Information received up to 10 A.M. 24th November, 1943.
1. NAVAL
Mediterranean 21st/22nd. Allied Constal Craft sank n. Potrol Light
South of LEGHORN.
22nd. One of H.M. Minesweepers, mined and sun't off BARI.
Levant 20/21st. A further 3,000 Greeks and Italiand vor. evacuated to
TURKEY from SAMOS.
2. MILITARY
Italy 8th Army. In Constal Sector 78th Division has strengthenen
Bridgehead over SANGRO and completed three bridges. Indian
troops have established Bridgebead Jest of ATESSA. Further South Canadian troups
have captured S. AllGeLO (16 mlles S.L. of ATESSA). Our vatrols have also advanced
in miles est of ALFEDONA (15 miles M.B. of ISERTIA).
5th. Army In patrol action near Nouth of R. GARIGLIANO heavy
casualties were inflicted on unemy at coast of one nounded.
Russia 23rd. Russians extended their Dridgebed North oi GOLL.
Situation in ZHITOMI9 is obseure at Ruscians have procebly
given some ground.
Burma - CHT HILLS 19th. Jamenese occupied nouitions 42 b. our
Legy troops 1/ miler a.l. KAS.A. Tuth. In FORT Area
company of Intian Proops carried out successful rat' reclast Jaymiese.
3. AIR OPERATIONS
Western Front 22nd/23rd. 2,366 tons dropped on BERLIN. 23 d. 96
Marauders (0.26) (2 nissing), boubed tro Airfields to
N. FRANCE. Mitchells (R.25), Bostons (A20) and Typhoms dropped (1) tone on
military objectives near GRIS NEZ. 23 Beauflyhters (4 missing) attacked Convoy
off TEXAL seriously damaging five Escort Vissels m leaving an 8,000 ton
Tanker sinking.
23/2/th. Aircraft duspstched:- WERLIN 38.2 (20 missing) (4 crashed)
COLOONE 6 (1 missing), Intruders U/7. Prolininary reports on clou'
over target, Markers concentrated and firas still burnin from previous night.
Italy 22nd. 155 Medium, Light and Fighter Rombers attacked
communications in Central IfAM an 222 attacker. Targeta in
Rattie Area.
TREASURY
PEP Regraded Unclassified