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President's Secretary's File (Franklin D. Roosevelt Administration)
Departmental Correspondence
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PSF
Agriculture: Henry A. Wallace
PSF
agr
HIGHLY
August 23, 1937
The trouble anticipated developed this afternoon. It turned out to be
n. case of Henry Wallace's aspirations for the Presidency vs. the President's
prestige. Here's the story in detail:
There was a meeting attended by Paul Appleby (and two others) from the
Department of Agriculture; Duggan from State, and Gruening from Interior.
(Treasury said that they did not care about the terms of the veto message).
After agreement on the terms of the message, Appleby then stated that
Agriculture seriously contemplated filing n separate memorandum with the
President, urging that there be no veto. He made the highly formal point
that the word received from Dan Bell was merely that the Departments should
agree on a veto message but that there was nothing to indicate that each
Department should not (as is the usual case in connection with n. bill) file
n. separate report as to its views as to whether or not the bill should be
vetoed. Accordingly, he said, Agriculture might file a separate memorandum
stating that the bill was satisfactory so far as Agriculture was concerned
and should be signed.
Duggan and Gruening stated that it was their understanding that the
President merely wanted 5. veto message jointly prepared by the Departments
because he had already decided on n. veto. Appleby indicated that he had not been
so advised and stood on the fact that Dan Bell had sent Agriculture the usual
formal request for its views on the bill. He did not disclose the following
which Gruening, later, learned from Bell:
Bell received from the President and read to Appleby on the telephone a
memorandum saying: "Obviously, I cannot sign this bill", and asking that the
three Departments should agree on a veto message. Appleby then (prior to the
conference) asked Bell whether that would preclude Wallace from expressing his
separate views to the President, to which Bell replied that of course any
Secretary was at liberty to advise the President about anything.
In discussing the desirability of not vetoing the bill, Appleby stressed
that Agriculture "had to keep in mind" the political aspects of the situation."
Very cold-bloodedly he made the pointed remark that there was no use in the
President trying to beat Congress on this or on anything else -- that a
President in his second invariably had little power over Congress and got nothing
done in his second term except through acquiescence, and that it was very important
for the Department "to keep in right with these Congressmen".
It was obvious that he was thinking primarily to the welfare of Henry
Wallace 0.8 a potential candidate for the Presidency.
Appleby refused to comment on the fact that the President had virtually
told Pat Harrison, and had otherwise let it be known, that he would veto the
bill, if the refining discriminations were not eliminated, and that a failure
to veto the bill would mean that Harrison had called the President's bluff and
had won. In other words, Appleby was plainly more interested in Wallace's
-2-
political fences than in the President's prestige, in effect saying that, since
this WOO the President's second term, he was on his way out and his prestige
was not the paramount consideration.
Significantly, Appleby said that the suggestion that Agriculture should
recommend against a veto had not come from Hutson, one of Wallace's subordinates
close to him politically. Since no one had mentioned Hutson, that was a case
of the lady protesting too much. For Hutson is n. weak sister, who always wants
to yield in any fight, and is always working for his personal and Wallace's
good will on the Hill and therefore always urges Wallace to give in whenever
there is any heat.
It's a cinch that, If the President signs the bill, Wallace will claim
political credit with the beet Congressmen and Senators for having won over
the President.
Duggan stated that Hull was almost certain to be for a veto, and that
he thought that, if Agriculture had n. contrary view, there should be a dis-
cussion among the three Secretaries and a joint recommendation. Appleby fought
that suggestion and made it plain why; for be said that, if there was a joint
recommendation, Agriculture would feel obliged to abide by the majority view.
If n. jam is to be avoided, it would be very wise if the President were to
advise the three Departments, through Bell or otherwise, that be had fully
decided to veto the bill and merely wanted the Departments to agree on the
terms of the statement.
S.C. Form No. 11
Signal Corps, United States Army
War Department Message Center,
Receibed at
Room 3441, Munitions Building,
Washington, D.C.
9313 U.S. GOTERNMENT PRINTING OFFICE
P 1 WVP CA
33WD
Wallace
FORTMONMOUTH NJ 11 AM JULY 29 1939
PSF storic,
THE PRESIDENT
THE WHITE HOUSE WASHINGTON DC
THE SEVENTH WORLDS POULTRY CONGRESS HAS JUST BEEN FORMALLY OPENED IT
IS APPROPRIATE THAT THIS MESSAGE BE SENT THROUGH COURTESY OF THE WAR
DEPARTMENT BY HOMING PIGEON THE ORIGINAL METHOD OF FAST COMMUNICATION
HENRY A WALLACE
CLEVELAND OHIO JULY 28
1125A
PSF ballace
THE WHITE HOUSE
WASHINGTON
agrie
August 5, 1939.
MEMORANDUM FOR
MRS. ROOSEVELT
.
FOR YOUR INFORMATION.
IT IS HIGHLY CONFIDENTIAL. WILL
YOU PLEASE RETURN FOR MY FILES?
F. D. R.
Here seen
ER_
THE WHITE HOUSE
WASHINGTON
August 3, 1939
MEMORANDUM FOR F.D.R.
I am told that the Department
of Agriculture was considering taking
over the whole of the Rogers place as
an experimental station which would have
given a number of projects for the State
N.Y.A. work. Did this ever materialize
or is there no chance of its coming about?
E.R.
DEPARTMENT OF AGRICULTURE
STATE THE DEPARTMENT OFFICE
file folls mal.
WASHINGTON
RECEIVED AUG 3 8 THE 55 WHITE AM 39 HOUSE
August 2 1939.
The President
The White House
Dear Mr. President:
You asked in your note of July 28 whether we had ever
found any use for the Rogers place at Hyde Park. I believe
M. L. Wilson spoke to you informally about his idea of es-
tablishing five or six research centers in different regions
for the study of self-sufficient farming, suburban farming,
and other subjects not covered at present. He also thinks
that somewhere we should be preserving in growth the varieties
of plants and breeds of live stock which do not now seem to
have commercial value. For example, varieties of fruits are
passing out of existence because they have no commercial value
in competition with types bred for the modern market. Mr.
Wilson feels that these varieties may be needed sometime because
of possible diseases that may attack the commercial breeds.
Our understanding is that you gave approval to the plan,
end clearance of efforts to get legislation introduced. We
have prepared the attached bill to be introduced, we hope, in
this session of Congress, preferably by Senator Mead of New
York. Of course it will not be adopted in this session but we
feel that it will have some educational value if it is intro-
duced now. Later on we will urge its adoption. The bill as
now drafted would make the Rogers estate eligible for use as
one of these research centers.
Sincerely yours,
Hawallace
Secretary
Enclosure
A BILL
To provide for establishing five regional agricultural research centers,
for investigations and demonstrations in self-sufficing farming, the
preservation of plant and animal varieties for use in event of outbreaks
of new diseases or development of new commercial uses, suburban land use,
and the application of power-driven appliances on the self-sufficing farm
and in the farm-home.
WHEREAS,
1. Approximately 1,500,000 farm families in the United States are
engaged in self-sufficing farming, living on small farms on which they
raise most of the meat, vegetables, dairy products and other food they
consume,
2. These non-commercial farms are about 22 percent of the number
of farms in the United States,
3. This type of agricultural living has not received adequate
scientific investigation and study, because changing economic conditions
and a changing technology have directed most of the attention of the
Department of Agriculture and of the Land-Grant Colleges to the problems
of commercial farming, and
4. It is sound national policy, in keeping with the fundamental
principles of democracy, to protect opportunities for families to maintain
homes on small tracts of land on which they can produce food for family
consumption to supplement other income; and
to /
to
02
- 2 -
WHEREAS,
1. Families carrying on self-sufficing or part-time farming
need some source of supplementary cash income, and
2. The possibilities of supplying such income through home
industries, rural arts and crafts, and rural small-scale industry have
not been adequately explored; and
WHEREAS,
1. Virulent plant and animal diseases appear unpredictably from
time to time, either spontaneously or through importation, as in the
case of Dutch Elm disease, the apple blight and the strawberry mildew,
and
2. New commercial uses appear from time to time which require
varieties of plants and animals other than the predominating commercial
types, and
3. In cases of such sudden emergency or new development, it
becomes necessary to discover or develop new varieties resistant to
such diseases or appropriate to the new commercial uses, often at a
great cost of research or world-wide exploration, and with losses
suffered during the delay, and
4. It often happens that new varieties of agricultural plants
and breeds of domestic animals are developed, but are not preserved
because they lack commercial value at the time of discovery, and thus
are not available when new diseases or new commercial uses occur, and
ASSHW
- 3 -
5. The land and resources of existing agricultural experiment
stations are so urgently needed for meeting pressing current problems
of agriculture that they cannot be used for perpetuating such apparently
non-commercial varieties of plants and animals; and
WHEREAS, there are special research problems which, because of the
dangers of spreading disease from experimental plants and animals to
others, or for other reasons, do not fit readily into the research pro-
grams of existing agricultural experiment stations or regional research
laboratories, such as the breeding of disease-resistant chestnut trees
and of elm trees resistant to Dutch Elm disease, but which require
further investigation; and
WHEREAS,
1. There are ten million city-, village- and suburban-dwelling
families in the United States who are directly interested in agriculture
primarily as it applies to the small tract of land within a city, village
or a suburb, and to home-ground and road-side beautification, and
2. Research in the possibilities of this type of land-use is now
inadequate to meet the needs of these families; and
WHEREAS,
1. Recent developments in technology, and particularly in rural
electrification, have made possible as yet unused applications of this
issue
- 4 -
new knowledge, to lighten farm and home burdens and to improve standards
of living, and
2. Investigations are needed to develop power-driven machinery
and appliances appropriate for such farm and home use, and otherwise to
make full use of the new technology as in new methods of home-canning,
preserving, quick-freezing and other practices,
Be it enacted by the Senate and House of Representatives of the United
State of America in Congress assembled, That the Secretary of Agriculture
is hereby authorized to establish not to exceed five regional agricultural
research centers. In order to improve the demonstration value of these
centers, each of them shall be located not far from heavily travelled
highways, close to densely populated areas, on land appropriate for the
types of work to be performed, and, where possible, within an area
already largely devoted to self-sufficing or part-time farming, but in
places where adequate precautions can be taken that the prosecution of
research on diseased plants and animals will not create the danger of
the spread of such diseases. One of the centers shall be located in the
northeastern, one in the southeastern, one in the middlewestern, one in
the southwestern, and one in the northwestern, parts of the United States.
Sec. 2. The Secretary shall appoint an advisory board for each
regional center, to be made up of men and women representatives of
families practicing self-sufficing farming in the region, the agricultural
colleges, and other citizens or groups within the region interested in
DON
- 5 -
the objectives of this Act.
Sec. 3. The program of work at each center shall include such
work of research and demonstration as may be appropriate for the surround-
ing area in self-sufficing and part-time farming, the preservation of
varieties of agricultural plants and animals for use when new diseases
occur or new commercial needs develop, the breeding of varieties of plants
and animals resistant to new diseases under conditions appropriate to
prevent spread of disease from the objects of experimentation, suburban
land use (including development of vegetable and flower gardens, fruit
trees, shade and ornamental trees and plants, and special problems of
parkways and road-landscaping in connection therewith), homesteading,
rural arts and handicrafts and their value in improving rural living,
the application of technology and power-driven machinery and appliances
to tasks on the self-sufficing farm and in the farm home, and such other
special research tasks as the Secretary of Agriculture shall find can not
be readily included within the work of the existing experiment stations
and laboratories.
Sec. 4. For the purposes of this Act, the Secretary of Agriculture -
(a) Shall have authority to acquire the necessary lands or
interests therein, by purchase, lease, donation or otherwise, to repair
or construct necessary buildings or other structures, and to acquire
necessary equipment, implements, furnishings, plants, and animals;
(b) May secure the cooperation of any governmental agency;
and
adit
- 6 -
(c) May make expenditures for personal services and rent
in the District of Columbia and elsewhere, for the purchase of books of
reference, for printing and binding, for the purchase, exchange, opera-
tion, and maintenance of passenger-carrying vehicles, for supplies and
equipment, for traveling expenses, and for other administrative expenses.
Sec. 5. The Secretary of Agriculture, in administering the pro-
visions of this Act, shall utilize the officers, employees and facilities
of agencies within the Department of Agriculture whose functions are
related to the work provided for in this Act, and may allot to such
agencies or transfer to such other agencies of the Federal Government as
he may request to assist in carrying out any of the provisions of this
Act, any funds available for the purposes of this Act.
Sec. 6. There is hereby authorized to be appropriated not to
exceed $1,000,000 per annum for the purposes of this Act. Appropriations
made pursuant to this Act shall remain available until expended.
9-11-39
PSF stopic
MEMORANDUM
The German Food Situation
1. Because of accumulated stocks and rationing of consumption
German food supplies now appear ample to cover the more urgent require-
ments of the nation for one year at least. After the first year certain
aspects of the food supply will have become quite vulnerable, but other
factors are likely to prove more important in determining Germany's
ability to continue the conflict over an extended period.
2. The most vulnerable feature of the food situation is fats, and
more particularly the supplies for margarine, which are largely dependent
upon overseas imports. A reduction of approximately 25-30 percent in fat
supplies and in turn consumption can be reasonably expected during the
second year of war and probably a somewhat higher percent thereafter, de-
pending upon (1) German boundaries, (2) livestock numbers, and (3) coun-
tries involved in war at that time.
3. The meat supply is a second vulnerable feature of the German
food situation. For the current year livestock numbers (also feed sup-
plies) are practically equal to domestic needs, especially considering
the probable continuance of some imports from neighboring neutral coun-
tries. After the first year a decrease in feed supplies is expected to
cause some liquidation of livestock, & move which would be expected to
gain impetus the longer the war is continued.
4. Breadgrain, potato, and sugar supplies are very favorable, and
no serious difficulties may be expected for these foods for two to three
years at least, unless harvests are very unfavorable. Some reduction in
the potato and sugarbeet acreages and yields may be expected as the war
- 2 -
continues, due largely to intensive cultivation necessary for these
crops. However, both are on a surplus basis at present, so unless and
until a marked decline occurs (not now foreseeable) such food needs
should be met.
5. Compared with 1914 and the World War period the following
favorable and unfavorable factors effecting German agriculture and food
may be noted: Favorable - (1) the Reichnehrstand organization (a most
efficient agricultural and food organization); (2) increased mechaniza-
tion of agriculture; (3) more extensive use of artificial fertilizers;
(4) army plans not to conscript farm men and horses except when and
where absolutely necessary; (5) considerably expanded and improved trans-
portation system; (6) greatly increased storage and processing facili-
ties; (7) a significantly improved agricultural industry in the Danubian
and Baltic area, also Russia, which is not subject to blockade conditions.
Unfavorable - (1) early and complete blockade of all essential products
from overseas; (2) less economic reserves, especially gold, with conse-
quent difficulties in paying for such imports as can be obtained; (3) an
increased human and livestock population per square mile; (4) the unpopu-
larity of war; (5) somewhat reduced resistance and less stoicism on the
part of consumers; (6) possible invasion of German territory; and (7)
new developments and difficulties arising out of a modern war which cannot
be anticipated.
PSF starter
Wallace
October 4, 1939
Letter to the President from Senator Josiah W. Bailey
Re-Germany placing Tobacco on the contraband list-ststement
of President and See Wallace encouraged him but fears the
British Gov won't return to our market etc et e etc.
Attached are figures on tobacco-United Kingdom end France
See:Josiah W. Bailey-Senate folder-Drawer 2-1939
Original of this carbon copy is
filed in Warm Springs folder-
Drawer 3-1939
PSF wallacke balla
November 2 0, 1939.
The President
The White House
Dear Mr. President:
In response to your informal inquiry about the
possibility of obtaining nursery stock for a bare hill-
side at Warm Springs, for the Warm Springs Foundation,
there is some doubt as to whether this could be done
under the budget item for Cooperative Distribution of
Forest Planting Stock, but if you will indicate with
whom the Forest Service may get in touch personally
on this at Warm Springs, they believe it may be possible
to work out some cooperative arrangement, under this or
some of the other Acts, under which the hillside might
be planted. As soon as we hear from you, the Forest
Service will get in touch with whomever you designate.
Sincerely yours,
secratary's File Room
(Bigned)
Hawallace
Secretary
PSF
wallad
December 25, 1939.
Dear Henry:-
A delicate suggestion
not to forget the tobacco
raisers and the oorn-cob
pipe industry!
My best wishes to
you for a Merry Christmas.
As ever yours,
PSF Aqualative
The resolutions which were adopted by more than 40 farmers and
tobacco men from the flue-cured belt are:
Be it resolved by representative farmers, business men and warehousemen
of the flue-cured tobacco area in meeting assembled:
1. That we go on record as being in favor of the repeal of the
present Embargo Act and approve in principle the neutrality
legislation proposed in the last session of Congress by the
President and Secretary of State;
2. That we appeal to our Government to request the British
Government to encourage its Nationals to resume the purchase
of tobacco in this country;
3. That we request the Agricultural Adjustment Administration to
ascertain and make available every resource of the Federal
Government which may be helpful in supporting the price of
tobacco occasioned by the withdrawal of English buying interests;
4. That we go on record as favoring a referendum on tobacco crop
control for 1940 to be held as soon as the Secretary of
Agriculture finds it practical;
5. That we go on record as being in favor of a favorable vote on
tobacco crop control for 1940 and that we urge our associates
and friends to work for a favorable vote;
6. That we go on record as favoring the opening of the Old Belt
flue-cured tobacco markets on the same date that markets in
the other flue-cured tobacco belts reopen and that such opening
be as soon as possible;
7. That the Governors, Members of Congress, farm organizations,
Extension Division, the Department of Vocational Education,
the Farm Security Administration, the State Departments of Agri-
culture, the warehousemen and other businessmen be requested
to give the Agricultural Adjustment Administration the fullest
possible cooperation in explaining the situation and terms of
the referendum to the tobacco growers and businessmen of the
flue-cured tobacco belt.
PSF Wallace
1
for
December 27, 1939.
MEMORANLUM FOR THE SECRETARY 02 AGRICULTURE:
On the basis of on examination of the accounts
and statutes of the various credit agencies in the
Farm Credit Administration, I believe that it 1a
feasible for then to pay into their revolving funds
in the Treasury approximately $385 million out of
their capital funda during the fiscal year 1941.
Please aue that plans are nade to accomplish
this and. If need should later arise, they can
regain the funds,
(FDR)
LC:en
PSF
THE WHITE HOUSE
WASHINGTON
agrin
January 2, 1940
PRIVATE AND
MEMORANDUM FOR
THE SECRETARY OF AGRICULTURE
This is for your eyes only.
It 1s interesting. Please send it
back to me.
F. D. R.
Enclosure
Let to Mrs. R. 12/29/39 from Gardner
Jackson, 1037 Earle Building,
Washington, D. C. re suggestions for
man to be appointed to succeed Silcox.
Suggests Raphael Zon, head of Forest
Experiment station in Minnesota; Lyle
Watts, Portland, Oregon; Christopher
M. Grainger, one of Silcox' assts;
Edward N. Munns, Chief of the Division
of Forest Influences; etc.
Tile
DEPARTMENT OF AGRICULTURE
STATE THE REPARTMENTO )
WASHINGTON
January 4, 1940.
The President,
The White House.
Dear Mr. President:
I am returning Mr. Jackson's letter. It is
interesting that some of his recommendations are so
similar to my own observations, as expressed to you
in a memorandum some days ago.
Respectfully,
Hawallace
Enclosure
Secretary.
Personal
1037 Earle Building
Washington, D. C.
December 29, 1939
Mrs. Franklin D. Roosevelt
The White House
Washington, D. C.
Dear Mrs. Roosevelt:
In accordance with my agreement in our conversation last
night I herewith set forth the judgments which have been given
to me on a successor to Ferdinand A. Silcox as Chief of the
U.S. Forest Service. The excuse for sticking my nose into
this is four-fold.
First, Robert Marshall, who was Chief of the Division of
Recreation and Lands in the Forest Service, was, as I told
you, the most intimate friend my wife and I had in Washington.
He had often discussed with us the personnel of the Forest
Service. His ideas were the most objective and public-spirited
and intelligent of any man we knew anywhere in the Government
Service.
Secondly, Silcox himself was a very close friend of mine
and had talked his problems over with me many times, and had
himself spoken of various men in the Service.
Thirdly, Gifford Pinchot, through Bob Marshall, became
one of our close friends and had talked with me of the Ser-
vice, and since Sil's death has been in touch with me about
a successor to S11.
Fourthly, a number of men in the Forest Service have
discussed the problem with me since Sil's death and have
urged me to help in any way I can to assure the appointment
of a successor to S11 who will maintain and extend the prin-
ciples in the Forest Service which Sil exemplified. Pre-
eminent among these is one of Bob Marshall's closest friends
who has become one of our closest friends, Raphael Zon, head
of the Forest Experiment station in Minnesota. Zon, you will
probably remember, collaborated with the President in putting
across the Shelter Belt against the ridicule and wise-cracking
of reactionaries in the Forest Service as well as outside.
The President, I am sure, has lived to chortle at the expense
of the know-it-alls of those days. The day of S1l's death
Zon wrote a confidential letter to me, excerpts from which
follow:
Mrs. Roosevelt
-2-
December 29, 1939
"Our ranks are thinning; so much more reason that
we stick closer together. My first impulse, upon hear-
ing of Sil's death, was to go to Washington. For fear
that it would be too much of a strain on me, Mrs. Zon
insists on delaying the trip until my presence, in your
opinion, will be essential.
"S11 is dead, but it is up to us, Pat, to see that
the liberal ideas with which he had so much difficulty
to permeate the Forest Service must go on. You have a
rendezvous with the destiny of the Forest Service and
can do much to prevent the appointment of a successor to
Sil who is likely to wreck whatever liberalism still re-
mains in the ranks of the organization.
"There is danger from three directions: Ickes may
press for the appointment of Rutledge, who used to be
in the Forest Service and is now in charge of Grazing
in the Department of Interior; Professor Nelson Brown
of Syracuse, who boasts of being a friend of the Presi-
dent; and Tinker, who just resigned from the Forest
Service to take a $15,000 job as Secretary of the Ameri-
can Pulp & Paper Association, but who would not hesitate
to jump back, with the assistance of his lumbermen
friends, into the Forester's shoes. I need not tell
you that the appointment of any of these three would be
calamity.
"There is also danger that the Secretary himself may
want to appoint someone who is not a forester, so 8.8
to bring the Forest Service closer into the fold of his
agrarian program. The Forest Service, as you know, was
more or less of a thorn in the flesh of some of the
simon-pure agriculturists in the Department."
"I shall be ready to go to Washington if you think
that I can be of any assistance to you."
So that 1s why I presume to make the following suggestions:
Lyle Watts, Chief of the region with headquarters at Portland,
Oregon, seems to be agreed upon by all my friends as a person
not only of liberal and public-spirited 1deas in forestry, but
also in the general social and economic situation in which our
country is at present. He, moreover, is credited by all my
friends with being a person of very great personal charm, who
Mrs. Roosevelt
-3-
December 29, 1939
has a fast-moving intellect which operates quite as well when
he is on his feet under pressure, as when he has opportunity
for calm, reflective study.
Christopher M. Grainger, one of S1l's assistants, is the
kind of person who would most certainly want to hold everything
that has been gained under S1l's administration. He happens
to be one of our family's close friends, having married my
wife's most intimate school crony in Denver. We first came
to know him during our years in our home state of Colorado and,
of course, have seen much of him and his wife, Louise, since
we have been here in Washington. He is a man of absolute in-
tegrity and sincere devotion to the public interest as he sees
it. He is somewhat older than Lyle Watts, I believe, and is
probably more sot in his ways.
A forester for whom I, personally, have the greatest res-
pect and affection is Edward N. Munns, who is now Chief of
the Division of Forest Influences here in Washington. Ed has
been in the Forest Service 28 years, and is an Illinois boy,
a graduate of Bradley Institute at Peoria, with his Master of
Forestry degree from the University of Michigan. Immediately
following graduation from Michigan he entered the U. S. Forest
Service as field assistant in the Shasta National Forest in
California, and subsequently rose through various ranks to be-
come principal silviculturist here in the Washington head-
quarters. He has been in the Washington office since 1923.
All my other forestry and conservation friends, such as Gifford
Pinchot and Raphael Zon, think extremely highly of Ed Munns.
He is man of 51 or 80 years of age.
Finally, the suggestion has been made to me by certain
fellows in the Forest Service that Rexford G. Tugwell, be-
cause of his long and close association with Sil, might be
a possibility. I pass that suggestion on without comment.
The lack of comment must not be taken by you to mean that I
don't have a high regard for Rex. So many factors enter into
any serious consideration of suggesting him that I do not
think it 1s my place to embark upon a discussion of them.
Please forgive the extent of this communication. My rea-
son for having been so long-winded is that I want you to know
why I butt in, and also how deep an obligation I feel, both
to the memories and principles of Bob and Sil, and to the
Forest Service itself, which is one of the really top-notch
examples of administrative efficiency in the Government. I
hope you will be able, as you suggested last night, to transmit
Mrs. Roosevelt
-4-
December 29, 1939
such portions of this communication to the President as you
think advisable.
I do not need to tell you how deeply my wife and I appre-
ciated the cordial hospitality which you and the President ex-
tended to us last evening.
Yours sincerely,
9am GandnerJackson
Gardner Jackson
P. S. On the chance that you did not see my letter in the
Nation about Bob Marshall, I am enclosing a copy of it.
GJ:CD
Enc.
3
Agriculture
Wallace
DEPARTMENT OF AGRICULTURE
STATE MASSACHUSETTS )
WASHINGTON
Man
19
March 18, 1940
RECEIVED
THE WHITE \ HOUSE 48
&
The President
The White House
Dear Mr. President:
I am sending you herewith three clippings, dealing with
the farm political situation in the middlewest. One of them is
written by William Allen White, one by W. W. Waymack and the other
appeared in the "Kansas City Journal." These clippings together
with the Gallup Poll which appeared in the March 17 "Washington
Post" furnish considerable material for political and agricultural
reflection.
Three quarters of those midwest farmers who have & definite
opinion believe, according to the Gallup Poll, that the adminis-
tration farm program has been helpful. At the same time, fifty-
four per cent of these midwest farm voters indicate they would
like to see the Republicans win the Presidency in 1940. This is
in spite of the fact that the percentage of middlewestern farmers
who now want a. Democratic President is enormously greater than ever
was the case prior to 1932. Once these farmers were almost unani-
mously iron-clad Republicans. The trend to the Democratic party
in recent years has been tremendous, but it will require another
eight years to carry the process to its logical point. At present
many of the farm voters of the middlewest tend to judge the Repub-
lican party nationally on a basis of its actions locally. In other
words, if the local Republican congressmen support the farm program,
there is danger of these farmers voting for a Republican president.
General Wood wrote me the other day: "I believe these facts are
beginning to be generally realized and that regardless of party -
Republican or Democratic - the farm program will go ahead with
only slight modification for the next few years." This is the
attitude of many whose allegiance was long to the G.O.P. and who
wish to find an excuse for returning to their Republican gods.
Senator McNary may know and hate the machinations of Joe
Pew and Ernest Weir but the farmers of the middlewest know nothing
about these gentlemen. Not one in 100, probably not even one in
1000, is familiar with the analysis made by William Allen White as
enclosed herewith. The middlewestern Republican congressmen, gen-
erally speaking, have played along with the New Deal in about the
manner described by Bill White. Waymack, who writes for a paper which
is traditionally Republican but which has been friendly to both the
- 2 -
farm and the trade agreement programs, displays the same suspicion
as White of the current tactics of the eastern wing of the Republican
Party.
In much more hypocritical form than ever before, we shall see
the effort made by the Republicans in 1940 to bring about an accommoda-
tion between the eastern wing of the Party, which honestly wants
nothing whatever to do with the farm program, and the western wing
which will fight for the continuation of the present farm program
virtually unchanged but under Republican control.
I presume that whatever the nature of the Republican platform
and the candidate, William Allen White will be out supporting both.
But the manner of support by him and men like him will have & lot
to do with determining where the seven million independent voters to
whom he refers will eventually land. No man has such a great appeal
to these seven million voters as yourself.
I trust you can eventually take a little time to study these
three clippings because they present in quite clear form the outline
of things to come.
Respectfully yours,
HQWallace
Secretary
Springfied Republican
NATIONAL NEWS
6
3/14/40
THE
East and West Seen Fighting
To Control G. O. P. Strategy
lesues that from large in the 1910 presidential compaign
and the problems that confront the national party conventions
are discussed here by "the ange of Emporia," and editor scho has
been ox observer of the American acene for more then half a
century and 4 confident of the nation's political and industrial
chiefs.
On the other hand, the conserva.
By WILLIAM ALLEN WRITE
tives would denounte the new deal
Emports, Kan March I-(NANA)-
from top to bottom, would Teave the
The tread of the next national plat-
Inference that they would abolish the
form of the Republican party will de-
national labor board, repeal the wages
pend entirely upon two things: First,
and hours law, leave Wall street us.
who controls the Republican conven-
regulated and the great public uris-
tion: and accond. who controla the
the to go their free war. If the
Democratic convention.
conservatives control the Repulitiese
platform committee. they will make
Which is to my, there are in
their fight directly upon Franklin
crowds, anciant enemies, struggling
Rensevelt and his beire and anelgns.
for control in the Repoblican con-
They will assume that he will the
vention: One crowd, the group that
wither the nomisee or will name the
controled the national Republicas
Democratic candidate.
central committee and located the
If Dested Third-Term Issue
1940 national Republican convention
in Philadelphia, the sent of black ne-
If Roosevelt does not rus est they
Action: the other crowd that low
are denied the third-term the
our in the Republican national CED-
Republican platform under the ma-
tral committee and that would have
tril of the right wingers will be a
taken the convention West.
wheep of rage At the new del and
The two crowds are the stealled
a promise to return to the good eld
liberals, or programires, on Lite -
days. prenumably of William Mo-
hand. and the conservatives and for
Kinley.
But now for the second alternative
actionaries on the other. Brondts
speaking, It is the Enet sealnet the
factor Republican platform writers.
West, the Atlantic Igying in
I mean the control of the Democratic
persuade the valley, the
ennvention. The president may fool
mountain states and the states of the
thrm. The Repoblican convention
Far West to the usetern viewpoint.
meets first and It to not likely that
The Republican conservative crowd
President Roosevelt will solve the rid-
has the money and with the mones
die of the third-term aphins with
will gu the Houth in the Republican
that convention is adjourned. The
convention. But the western crowd
Repoblicans will have to write their
has the electoral votes DECEMARY to
platform guesing about their rest
elect a Republican President.
epponent. If they should ryer and
The strugggle for domination of the
rage at the new deal and the third
Republican platform committee In
term and at the last, Roosevelt should
Philadelphia will be finished during
make the great renunciation, the con-
the first two days of the convention.
servatives writing the platform might
when . permanent chairman le elected.
step off the deep end of nowhere.
The Bouth and the East, voting to
And a smart politician like Ronsevelt
gether, may easily dominate the or
is likely to do everything in his power
to confuse his Republican enemies.
ganisation of the conventies. But
That may Account for his allence.
the West, being crowded at the plat-
Hoomevell's allence may be amount
form, may concentrate upes the can-
Democratic politics. But by the last
didate.
Proposals Please West
of June oven amart politics carrot
prevent the Democratic leaders from
The platform suggestions whitenit-
revealing somewhat their attitude.
ted by the Glens Frank committee
The Democratic primaries will have
on the whole pleased the West. The
bero named The Republicane can
West could take that platform as .
see what may happen, but they must
Bist draft and a to Bat. The Ear:
take a chance. They must be willing
desply resented Glenn Frank's pro-
to bet upon the Impact of Roosevelt
posals. That controversy boils down
on the Democratic convention and Its
to this The western Republicans.
conclusions.
whose few representations in Con-
It is fairly therefore, that,
EYes survived the landatidés of "RI
whether Rousevelt or his epeciles con-
and '24, had voted for most of the
trel the Democratic convention, the
new deal measures in principle. They
moderate course of the western
were careful to gift on record uphold.
liberals would write a. platform with
Ing collective terguining, a Bone for
a wider appeal than that which the
wages, and a root for hours of labor
wantern conservatives would write,
the control of patitic utilities, the
For whether Roomevelt owns or 000-
regulation of the stock exchange and
trols the convention, the unemploy-
the principle of old-age pensions and
ment Issue may easily become the
some kind of unemployment Insur.
paramount domestic issue in the cam-
ance Western Republicans, on the
paign. And with Receivelt no the
whole, would les that portion of the
ticker. off the ticket, controling the
new des! stand na A fact access-
ticket, or defented by the Democratic
plished, without promising to repail
convention, It will be wine for the
these laws, but rather to strengthen
Republicabe to calse the parament
them. make them more workshie and
lesue of unemployment by adepting
equitable.
A. definite constructive program to out
The Westerners would make un-
down unemployment. Upon that Issue
employment the major leege, Their
la the hettlegred.
they would differ deoply with the new
Want to Keep Out of War
deal The westerners would trg to
If the President attempts to inject
stop lending and spending. They
foreign relations Into the campaign, Et
would guit scaring bustness to death
will be evident that be expecte to win
and, after returning the administra-
by some sort of hookup with one of
the of putitle mist for the states, with
the beiligerente the Europe. Once the
federal and, the Westerpers would at-
American people ⑉ the notion that
tack unemployment from a new snale,
President Roomevelt, on the ticket or
the engle of returning providerity
controling the ticket, is trying to shift
Three - Am
the fight from the dumestic scene to
Willd -
Europe, the Democratic party is gone
plattorm to
For the voters, above everything sise
abottening penitive taxes upon
en earth, want to keep out of war.
DEM. They Would soccurage the re-
AM the Republican platform-makers
opening of industry through the -
will be mafe if they concentrate upon
moval of the clement of fear that has
domentic
hovered over big business for the last
In the end. the campulgo of 1941
seven years.
WILL be was by the Independent vote.
In 1936 Landon pollet approximately
17.000,000 and polled 29.-
600,000, Haven milline Independent vot-
are can shift alightly to the right and
throw the election to the Republicana
Even a smaller number, well dis-
in the electoral college might
turn the 130a. But the Independent
vote will to IL The independent voter
la may to hold with the wastern
43 he has held with them
for if years, from the first Brose-
to fay through the LA Folletie
regime, down to Letifon's secendancy
PAGE FOURTEEN
The Moines Register
Published ***** workday murning by
THE REGISTER AND TRIBUNE CO.
713-55 Local EL
Ristered et the Postation to Das Moines
To., .. - class matter
In the third now we
(TM Des Maines Leader,
are getting to something im-
⑉ 1840.)
(TM Town Blate Register,
portant-it is not true that the
Relablished is 1856.1
"farm policy of Secretary Wallace
SUBSCRIPTION RATES,
was likewise an issue."
FATABLE EM ADVANCE
And we don't like the experiess
Daily Register FEAZ, se
Due Tribute- One FORT, 1A.
with which Mr. Hamilton and
Bunday Register-Com year. se
BY MAIL OUTSIDE IOWA,
some other national Republican
Date Beging year. 87.
spokesmen leap to the conclusion
Date Mointe Tribung One sear, ST.
Runday Register-Ow pear, ST.
that this was true.
THURSDAY. MAR 7. 1940.
We don't think such demonstra-
FEBRUARY CIRCULATION, NET PAID,
tiona of engerness are going to
Daily
REGISTER
AND
help the G.O.P. this year.
307,102
TRIBUNE
For if it creates among farm-
pay Register
Date Tribune
129.272
are the impression that what these
DESMOINER
357,613
leaders really ache for La an ex-
Sunday
REGISTER
CUM to junk the whole federal
la Des Mators,
farm program-If It shows that
Bunday Register
Daily Register and Tribune $2.465 98.142
they are looking for even the
Namber of the Associated Press.
thinnest excuses to convince them-
The Associated Prime le entitled excis-
selves that this la A politically
EVERY to LN for publication of all seve
diapetches credited le in the pager and
mafe thing to do-well, in that
published herein Blughte of registration
of all other matter published - Into area-
case it is going to be, for the
paper are sin reserved.
G.O.P., "too bad
A Bureau of Accuracy and Fair
Play organized to assure is every
Because-take note of this, Mr
case prompt and immediate atten-
tion to any complaint is main-
Hamilton and colleagues-thie
faired by The Register. It is open
special congressional election in
every day except Sunday. The Reg.
the Sixth lows, district emphatical.
later soill gladiy correct any errors.
ly did not prove that ANY Re-
I
publican candidate standing on
EASYI EASYI DON'T
ANY old kind of platform can
earry ANY agricultural district
CONCLUDE TOO MUCH.
In 1940.
Ten seconds after it was known
What It really showed la that a
that Robert Goodwin, Republican;
particular kind of Republican
had won the race for the vacant
nominee standing on a particular
congressional post of Cassius
kind of platform can hold the
Dowell in this Bixth Iowa district,
normal Republican vote and can
some of the G.O.P. brass hats in
make an excellent showing in even
the cast began crowing that the
the farm counties of a district
1940 national fight is over-that
that la half urban and half rural.
the drift to the Republicans la so
By "particular kind of nominee"
clear and overwhelming now that
we mean one who has the genuine
b
nobody can doubt the result.
confidence of most farmers, in-
0
The tostant pronouncement of
cluding numerous farm leaders
John D. M. Hamilton, chairman of
who are very strong for the fed-
the Republican National commit-
eral-farm program and even for
tee, our like this:
Secretary Wallace himself.
By "particular kind of plat-
"Not only was the New Deal a
form" we mean one, consisting in
clearent Issue In fals special
part of what the candidate said
lowa election, but the farm poll-
in speeches and in part on what
ey of Secretary Wallace was
was actually known about him,
Elkewise an Issue. Let It be re-
that the farm people emphatically
membered that the Sixth Iowa
did NOT interpret as & program of
district is Mr. Wallace's OWN
junking the Triple-A and the other
congressional district. The re-
parts of the present national set-
sults speak for themselves."
up for the farm.
Whos! Back, Mr. Hamilton!
In short, what the G.O.P.
Whos! Back!
nationally most needs in order to
recapture the farm vote was pres-
Bure, the "results speak for
ent in this election.
themselves." if you will just take
It was present in the person of
pains to find out what they are
a nominee whom most of the
and what lies behind them.
In the first place, this is one
farmers believed to be FOR their
of those "normally Republican
cause, honestly.
districts." Capturing it again eer-
There, Mr. Hamilton, in the
tainly importe that the G.O.P.
thing for you and your associates
to not losing any ground. But that
to reflect upon seriously.
fact nione does not MARUFO .
In It there in encouragement for
national Republicar landatida,
you-provided you learn the les-
In the excend? place, the New
son.
Deal WAS made an Issue. And
-
But merely uttering Band-wagon
the result does show that a Demo-
yelps, which by their nature create
cratic candidate in this normally
the suppicion that you are deter-
Republican district cannot in a
mined to read into everything .
special election, which to not as-
proof that the whole farm vote
sociated with a general national
can be got this year without estab-
campaign, aweep the district by
lishing the firm Intention of the
just Identifying himself strongly
G.O.P. to play fair with the
with New Dealism. This may be a
farm-
good indicator that the same
THAT won't help any. That will
would hold true in a general elec-
just hurt.
tion. We rather think It is. But
it lan't quite proven.
Page 16-Editorials
KANSAS CITY JOURNAL
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Published Daily and Bunday by the
KANSAS CITY JOURNAL-POST COMPANY
22nd at Oak
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KANSAS CITT. MISSOURI
ORVILLE s. M-PHERSON, President and Publisher
1. c. JOHNSEN, Vice Pres-Aus'L Publisher
RUSSELL a. MILES, Vice Pres.-Oeneral Manager
B. P. CAMPRELL, Executive Editor
2. W. WEST. Managing Editor
BAT BUNNION, Editor
Representatives: 410 North Michigan Avenue, Chicago, m.
513 Fina Avenue, New York, N. Y.
Rearst Building, tian Francisco
HARVEY a. MALOTT, Advertising Director
SUBSCRIPTION BATES
BY CARRIER: 15 centa a week, 65 denta a month on estab-
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ST MAIL: 63 cente & month, $7.80 & year, in Missourt,
Kensas, Iowa, Nebraska and Okis-
homa; alsewhere, double above rates.
Entered as Becond-Class Matter at Port Office
March 8, 1940
Farmer Dewey
Candidate Dewey spoke in Lincoln the
other night. Since Lincoln is the center
of a farm area, he exhaled the New York
air from his lungs and became chummy
with the farmers. Mr. Dewey has a
form
program There in little question
as to where he got it.
He favors & fair parity between farm
prices and industrial prices. Every poli-
tician has been for farm parity since the
beginning of time. This is Mr. Dewey's
idea of how it can be attained:
1. A crop loan program. Such &
program is already in effect.
2. A program of soil conservation.
Thousands of farmers in his Nebraska
audience are already participating in
such 8 program.
3. Conversion of submarginal land to
more economic uses. Thousands of
acres of submarginal land are being con-
verted to more economic uses by the
CCC and other agencies.
6. A program of marketing agree-
ments. Nothing new in that to Nebraska
farmers. Most of them are participating
in one already.
7. Research to provide new uses for
farm products. This is already being
done by the Department of Agriculture
in its chemurgy program.
8. Extension of the farm co-opera-
tive movement. It is difficult to surmise
what more Mr. Dewey could do in this
field than has already been done, unless
he compelled farmers to participate in
co-operative marketing whether they
wanted to or not.
Mr. Dewey promised the Roosevelt
farm program to Nebraska farmers as
if they had never heard of it. Perhaps
it is good politics, but it speaks little for
Mr. Dewey's originality in the field of
agriculture.
Stare culture
THE WHITE HOUSE
DEPARTMENT OF
AGRICULTURE PH
'40
STATE STATE DEPARTMENTOR )
WASHINGTON
RECEIVED
March 30, 1940
The President
The White House
Dear Mr. President:
Sometime ago Isador Lubin, who, as you know, is one of
Madame Secretary's right hand men, requested me to write for
an economic journal a review of Thorstein Veblen's "Imperial
Germany", a book which was written in 1915 and which I read at
that time but which I re-read recently. While most of this
book was written before the great war broke out in 1914, Veb-
len's understanding of the German institutions was such that
he foresaw in essence almost all of that which has taken place
between 1915 and 1940. Those who think that getting rid of
Hitler will clear up the situation simply don't know what they
are talking about.
I would not ask you on your vacation to go to the labor
of reading all of Veblen's "Imperial Germany". You can perhaps
get sufficient of the drift by reading my review. However, I
would suggest that at your earliest opportunity you get from
the Congressional Library Veblen's book "The Nature of Peace"
which he completed in late 1916 or early 1917 just before we
entered the war. His full appreciation of what it is that
produces the bandit character of Germany and Japan, and what
is required to offset their destructiveness is most amazing.
Mind you, he foresaw in 1917 that at the next turn of the wheel
Germany and Japan were almost certain to be working together.
I would not recommend that you read all of this book "The Nature
of Peace" but if you will dip into it on page 238, I feel con-
fident you will find it difficult to lay it down until you have
read many pages. This book will cause you to relive much of
the history of which you were A part and to project yourself
-2-
forward into the history of which I trust you will be an even
more vital part.
In the next peace, the mistakes of the last one must not
be repeated. Even if you don't agree with all that Veblen says,
your mind will inevitably be clarified by the profundity of his
analysis. Unfortunately his style is a little difficult.
Respectfully yours
HQWallace
Secretary
REVIEW OF THE BOOK "IMPERIAL GERMANY AND THE
INDUSTRIAL REVOLUTION" WRITTEN BY THORSTEIN VEBLEN
IN EARLY 1915.
By Henry A. Wallace.
Of all the men who prior to the great war studied the forces
growing out of heredity, oustom, anthropology, statecraft and econom-
ios in an effort to project a trend, Veblen was one of the most suo-
cessful. He had in him the prejudices of an educated Norwegian
farmer who feels that he is as good as anyone but has nevertheless
been preyed upon by the citizens of the nearby small towns who have
unfairly used against him their superior knowledge of law, politics
and American customs. This slight and perhaps justified bias on
the part of Veblen did not interfere in any material way with the
brilliance of his analysis 25 years ago of the trend in such nations
as Germany, England, the United States and Japan.
The book on "Imperial Germany and the Industrial Revolution"
was projected before August of 1914 and the writing was hastily
completed in late 1914 and the first month or two of 1915. Apparent-
ly Veblen added a few penoiled footnotes to the proof-sheets in
April of 1915. I read the book when it first came out in 1915 and
have reread it again in March of 1940. As a result I want to give
it as my considered opinion that the book has fully as great sig-
nificance in the present world situation as the devastating criticisms
made of Hitler by Rausohning. The man who reads both Veblen and
- 2 -
Rauschning will have his perspectives greatly deepened and sharpened.
Only by having both points of view in mind can we deal sensibly with
the Germany of today.
Veblen's book is probably the most acute analysis of modern
Germany which has ever been written. And yet strangely enough the
Solicitor of the Post Office Department of the United States denied
to the book "Imperial Germany" mailing privileges while the United
States was in the great war. The Post Office Department in that day
apparently was unable to appreciate that Veblen's book was a harder
blow at Germany for the very reason that it was fair, objective and
did not say a single word against Germany.
The Veblenian thesis with regard to Germany is roughly as follows:
The hybrid people of Germany by heredity in any given degree of
latitude are about the same as the people in a corresponding degree of
latitude in any of the adjoining countries. From England to St. Peters-
burg the people at birth have about the same characteristics. Those of
us who are well acquainted with the Germans of the third and fourth
generation in the United States know that Veblen is substantially
right. As a. geneticist I am convinced he is right. Most, though
perhaps not all of the anthropologists, will agree with him. There
is no basis whatsoever for the myth that the Germans by heredity are
a superior race.
Whence, then, comes their reputed superiority in certain matters
of science, technology and military capacity? In developing his thesis
along this line Veblen spends most of his energies contrasting Germany
with England. Politically and technologically, England is far more
- 3 -
mature than Germany. Germany was living in the spirit of the Middle
Ages up until the second quarter of the 19th Century and she didn't
really wake up until 1870. She then found ready to her hands a.
system which England, and to a lesser extent, France had already
worked out. But in taking over the technological system, she had
all the advantages which are enjoyed by a manufacturer who is con-
structing a new plant. The Germans, therefore, promptly became
more efficient than the British in many fields of endeavor. But the
most notable advantage existed because of the high sense of duty of
the German people and the faot that they had become accustomed to a
frugal standard of living and did not expect much. The British system
had accumulated a lot of sand in the bearings and the most notable
handicap of all was the British gentleman and his expensive, irrele-
vant habits. Veblen's irony with regard to British sport is really
priceless. Here we see the Norwegian farm boy turned professor ab-
horring the waste of the upper classes and yet under the necessity
of holding on to his job as a. professor, bitterly in earnest and
enjoying himself in the following words:
"Sport, on the scale, and with the circumstance attending
its cultivation in the United Kingdom, cannot be incorporated in
the work-day scheme of life except at the cost of long and per-
sistent training of the popular taste. It is not to be done by a.
brusque move. It is quite beyond the reach of imagination that any
adult male citizen would of his own motion go in for the elaborate
futilities of British shooting or horse-racing, e.g., or for such
- 4 -
a tour de force of inanity as polo, or mountain-climbing, or ex-
peditions after big game. The deadening of the sense of proportion
implied in addiction to this round of infantile make-believe is
not to be achieved in one generation; it needs to have all the
authenticity that tradition can give it, and then its inculcation
in the incoming generation must be begun in infancy and followed
up throughout the educational system. Nor would it be tolerated
by popular sentiment if it were not that popular sentiment has
gradually been bent to the same bias by slow habituation, Yet so
far has the habituation done its work that the community at large
not only tolerates these things, but all this superfluity of in-
anities has in the course of time been worked into the British
conception of what is right, good, and necessary to civilized life."
Veblen goes on to say that sports have bent the British
population, "in the direction of trivial emulative exploits and
away from that ready discrimination in matters of fact that con-
stitutes the spiritual ground of modern technological proficiency,
It is not so much that this perversion of the British population
by sportsmanlike preccoupations wastes the product and the energies
of the industrial system, as that it perverts the sources from which
the efficiency of the industrial system is to come. Its high conse-
quence as a means of destruction lies in its burning the candle at
both ends. Again it is to be noted that the generation and estab-
lishment of such a pervasive and stubborn habitual bent takes time,
- 5 -
and that to get rid of it would also require time, stress and ex-
perience.'
"Gentlemen commonly have no industrial value. Indeed, as
bears on the net industrial efficiency of the community they have
appreciably less than no value, being typically unproductive con-
sumers."
In the normal course of events, the Germans in a few more
generations would have taken on most of the wasteful habits of the
British. Their workmen would have gradually become infected with
the same ideas with regard to "freedom and insubordination" as among
the British. Financiers would gradually have taken the place of
technological experts at the head of German industrial enterprises.
Political graftwould have siphoned off some of the efficiency.
The women would no longer work in the fields and the Germans, like
the British, would then be occupying their minds with matters that
are worse than useless for the purposes of industry. In 1914, how-
ever, Veblen felt that the English gentleman of the better sort still
cost several times as much as the corresponding German gentleman. In
view of the hereditary identity of the English with the Germans,
Veblen felt, however, that it would not take the German gentleman
long to become as useless as his British compeer. Unless accidents
came into the picture, Veblen anticipated that the disposable margin
between the industrial output and the current consumption in Germany
might be expected shortly to disappear.
The attention is then turned to the Hohensollerns and the
- 6 -
Dynastic State. Remarks along this line apply just as well today
as they did 25 years ago if the word "Hitler" is substituted for
"Hohensollerns" and the word "Nazi State" is substituted for
"Dynastic State." The imperialistic Dynastic State can live only
as long as the people are imbued with romantio philosophies of the
prescientific period. The fundamental dootrine is, of course, that
each individual lives only for the State and that he serves it with
his utmost in order to make its war-like enterprises successful.
Veblen freely admits that German imperialism has been more successful
from nearly every point of view than any other with the possible ex-
ception of the Japanese. But he does not think that this success has
been due in any way to the superior heredity of the Germans. The rela-
tive freedom from graft and inefficiency in Germany has resulted merely
from the accident of German bureaucratic imperialism having been built
up in rather recent times. Translating from Veblen's rather obscure
language, I get the following: Give the Germans time and their im-
perialistic bureaucratic system will be 8.8 full of graft as the
Russian, the Turkish or the Persian and 8.8 stale as the Austrian. We
must admit, of course, that the German bureaucracy due to certain
accidents which Veblen foresaw might come to pass, has not today in
1940 taken on all of the inefficiencies and graft which Veblen anti-
cipated would come to pass. Veblen's broad analysis would make room
for all of this and I am sure he would be among the first to admit
- 7 -
that he could easily be wrong on the time factor. The precise words
of Veblen are interesting "what may be the rate of growth and the
final degree of such senescence to be looked for in the Prussian-
Imperial bureaucracy is, of course, only a matter for conjecture,
at the best; but its extreme volume, comprehensiveness and elabora-
tion would suggest that something very appreciable in that way is
fairly within the probability, since this state of things leaves
relatively little of German life outside the sweep of the bureau-
cratio system, and 80 affords little purchase for any combination
of forces that might conceivably hinder its perfect decrepitude."
And then Veblen put on the following footnote, "It is true, the
present (April 1915) conjuncture may so turn that speculations as
to the future of the Imperial bureaucratic system will have little
more than speculative interest." If Rauschning is correct the
Late
Nazi Germans of the last 30's had already acquired a considerable
amount of the graft foreseen by Veblen in 1914.
Any nation whose people have the education to do a first
class job of building up B. good standard of living out of science
aster a time
and technology will inovitably/repudiate autocratic and dynastic
institutions. War is the chief force which can delay that outcome.
It is good to read the eighth chapter of Veblen's book to
refresh our minds as to the extent to which war had been worshipped,
- 8 -
prior to 1915 as the ultimate purpose of the German Reich. The key
economic policies in times of peace were directed toward the ultimate
eventuality of war. The tariff was used deliberately as a weapon of
economic warfare, Long prior to 1915 Germany set out on the path to
encourage her people to produce as nearly as possible everything at
home even though the cost might be much greater than importing from
abroad. An especial effort was put forth to enable the German farmers
to produce for the German market 80 that imports of agricultural products
could be confined as nearly as possible to nearby nations. Railroads,
roads, and a merchant marine were constructed with war in mind. Great
educational and propagandistic efforts were put forth long before the
great war to prevent the German people from asking, "what do we get
out of all this?" The press was censored and education was distorted.
The powers of the police and the courts were freely used. The Gestapo
is not something new under the sun; it is merely a perfecting of
that with which the Germans were quite familiar prior to 1915. Both
in 1914 and today most of the Germans look on the British, the American,
and the French attitude toward free institutions as sheer foolishness.
The Prussian Imperial State and more recently the Nazi State have both
been so successful in fostering a united military spirit that it is
easy to see how the Germans might temporarily fool themselves.
- 9 -
Veblen is confident of the ultimate downfall of the Prussian
war machine, saying "It has been the usual fortune of military
establishments and war-like class organizations presently to fall
into a certain state of moral decay, whereby rank, routine,
perquisites and intemperate dissipation come to engage the best
attention of the specialists in war. Like other works of use and
wont this maturing of the war-like establishment takes time and the
corps of war specialists under the Imperial auspices has not yet
had time to work out the manifest destiny of war-like establishments
in this respect; although it may be admitted that 'irregularities'
of the kind alluded to have by no means been altogether wanting.
The corrosion of military use and wont, in the way of routine,
subordination, arrogance, indolence and dissipation, has perhaps
gone so far as would unfit this picked body of men for the duties
of citizenship under any but an autocratic government, but they
have probably suffered no appreciable impairment in respect of
their serviceability for war and its advocacy."
Veblen knew enough about the Prussian universities of the
pre-war period to realize that there would be a continuing effort
to bend the mind of the on-coming generation in the direction of
believing that war is a supreme good. The qualities which are
brought to the surface by a warlike power which glories in its
strength are - coercion, personal dominion, self-abasement, subjec-
tion, loyalty, suspicion, duplicity, and ill-will. The attitude
- 10 - -
of the warlike establishment whether it be illustrated by the
Elizabethan gentleman soldier, the Spanish conquistador, or the
Prussian imperial statesman, is, so far as weaker nations are con-
cerned, the moral attitude of the pot-hunter toward fur-bearing
animals. Veblen observes in one of his footnotes that "One does
not keep faith with the fur-bearing animals."
It has always been exceedingly difficult for the people of
the United States since 1870 to size up Germany correctly, because
we have so many excellent people of German ancestry among us,
people who represent a fine home life, industry, decency, and in
many cases an unusual appreciation of the arts. The Germany of
Goethe, Kant, Beethoven, and Heine has always commanded American
affection. Even the experience of the World War has scarcely disabused
our minds. The American people like the Germans who live in the
United States. But if Veblen were living today he would almost cer-
tainly look on Hitler merely as the current expression and extension
of the pre-war Prussian Imperial spirit. The German people of the
United States for the most part are descended from the men who, when
they left Germany, either had no knowledge of the Prussian Imperial
spirit or who actually were fleeing from it. German-Americans who
prior to 1917 sympathized with Germany, and who at the present time
are sympathizing, are in most cases not familiar in the slightest
with what has happened to Germany in the past eighty years. In say-
ing this I do not want to imply moral censure on any nation. So far
- 11 -
as diplomatic prevarication and duplicity is concerned there is no
reason for not agreeing with Veblen that under like ircumstances
and provocation many other nations would be able to give just as
good an account of themselves as the Germans.
Veblen apparently uses the word "provocation" so far as
Germany is concerned with the idea in mind that Germany even in 1914
felt that her time of a special advantage was short. From her own
particular point of view she should have struck in 1912 instead of
waiting two years. Veblen in early 1915 apparently overrated Russia;
at any rate he takes the Germans to task for not rating the eventual
economic and military organization of Russia high enough.
I have never read anything of Veblen's in which the thought
was not rather deeply buried with a multiplicity of ironic, scholarly,
words somewhat difficult to understand. Just what the real man
thought, I do not know, and perhaps no one knows. Probably he was
more anarchistic than socialistic in his thinking. He believed our
minds and bodies were evolved under rather small farm and village
conditions, and that Germans, Englishmen, Frenchmen, Americans, and
western Russians would all be happiest in living under those condi-
tions. With German heredity as it is, and with modern technology of
necessity sooner or later destroying the base for Prussian Imperialism,
he can see no outcome in the long run other than a breakdown of German
autocracy. The same would apply to Japanese autocracy, because Veblen
- 12 -
believed that the modern Japanese state was essentially similar to
the German state and that the Japanese statesmen were perhaps "even
more shrewd, more callous, and more watchful in their practice of
unashamed statecraft."
Veblen is almost as critical of the United States as he is
of lands overseas, feeling that the American business man has proved
himself notably inferior to his German compeer. In his supplementary
note No. 4 he has taken the hide off the American business man as
typically a real estate promoter, politician, and financier. He be-
lieves that less than half as much has been produced by the American
business machine as could be produced. Describing the qualities
of a successful American business man he says, "To survive, in the
business sense of the word, he must prove himself a serviceable
member of this gild of municipal diplomats who patiently wait on the
chance of getting something for nothing; and he can enter this gild
of waiters on the still-born increase, only through such apprentice-
ship as will prove his fitness. To be acceptable he must be reliable,
conciliatory, conservative, secretive, patient, and prehensile. The
capacities that make the outcome and that characterize this gild of
self-made business men are aupidity, prudence and chicane - the
greatest of these, and the one that chiefly gives its tone to this
business life is prudence. And indispensable among the qualities
that command that confidence of his associates without which no man
can make himself as a business man, is a conservative temper ****
- 13 -
America is the land of unlimited possibility, it is believed, both
in respect to material resources and in respect of inventive genius.
But it is a notorious commonplace that the mechanical inventions
which have in a sense made America what it is in the industrial
respect have not only not been made by the business men - they are
astute and conservative, pecuniary strategists, with neither insight
nor aptitude in technological matters - but have also not been made
with their support. **** And connected with this selective bidding
up of pecuniary astuteness and quietism is the well known inefficiency
of business management in American industry - well known among men
competent to speak on these matters, though not well credited among
the business men at large, who commonly lack even the degree of
technological insight necessary to appreciate the pecuniary loss
involved in their own astute mismanagement."
Comparing the United States with Germany and taking into
account the very great American advantages in resources, he reaches
the conclusion that "The American achievement in this field within
the same period has been notoriously less conspicuous and less
substantial for example than that of Germany since the formation of
the Empire."
Veblen then goes on to comment on the abuses committed in the
name of industry by financial people interested in stock jobbing,
which he calls "Large-scale strategy for the interception of the
'rake-off'."
- 14 -
I have the feeling that one of the motives animating Veblen
in writing of Imperial Germany was to have another chance to take a
well concealed but somewhat effective poke at one of his pet abhor-
rences, the American business man. During the period between the Civil
War and the great war, the Scandinavian farmers of the Northwest were
suspicious of the practices of small town business men. They were
not familiar with the language or the legal customs and undoubtedly
many of them felt they had been cheated. Moreover during the time
when Veblen was on the farm, prices were continually going down and
most of his neighbors doubtless felt the trouble was largely due to
manipulation in the cities. While Veblen himself was too wise to
share superficial delusions, his philosophy must have found its
origin in some measure in this background. As a Norwegian farm boy
attending college with the sons and daughters of the local business
men, he was oftentimes ill at ease because of his farmer-like
clothes. Out of this psychological situation no doubt came his
ever-recurring phrase, "Wasteful conspicuous consumption." Veblen's
animus, even though somewhat unfair, played undoubtedly a great part
in unleashing his genius. Unfortunately Veblen rarely tries to find
a constructive solution. He is satisfied for the most part with
analysis, most of which is remarkably accurate. Frankly, I think
there is more possibility of good in the American business man than
Veblen would care to admit. Since 1915 many of our business men,
notably the Du Ponts, have shown a willingness to throw exceedingly
- 15 -
large sums of money into scientific research. Involuntarily,
perhaps, they have cleaned up many of the abuses of stock jobbing.
In spite of the rather terrible inefficiencies of our economic
system we have made progress in devising a great variety of machinery
to raise the standard of living. While most of the Veblenian
criticisms of our business economy still remain valid, we can find
little suggestion in Veblen's works as to what to do to cure the
situation. Some of his writings would lead us to think that he
believed in returning our business and our way of life to the village.
But with the Germans and Japs actively pushing we cannot help
wondering if the so-called Democratic nations can be saved merely
by following a program of breaking up large corporations and return-
ing the economy to small business operations. It may all be true
that our minds and bodies were evolved under simple conditions and
will eventually have to return to simple conditions. In the meantime
it would seem to me that Veblen's own analysis of Germany and Japan
would indicate that we in the United States must strain every nerve to
make our democracy efficient while at the same time we do not abandon
it.*
* Friends who have read Veblen's works more extensively than I tell
me that he had a strong appreciation, as exemplified in his "Theory
of Business Enterprise", of the unworkability of small-scale competi-
tive business enterprise under modern technology. While he had no
patience with the building up of great trusts purely on a financial
basis, he did realize that modern machine technology had rendered ob-
solete the ancient small order of things. It may be, therefore, that
my emphasis on Veblen's homesickness for the village and farm economy
is not completely warranted. His researches in anthropology led him
in that direction but his appreciation of modern technology led him
to understand the need for bringing rapidly and continuously up-to-date
the customs and institutions based on a small scale economy in order
that modern civilization might not destroy itself.
- 16 -
No one can read Veblen's "Imperial Germany" without realizing
in a perfectly dispassionate way, that the German war machine at the
present time must be psychologically very strong. The strength is
derived only superficially from Hitler. It has its roots in several
generations of systematic Imperial Prussian military indoctrination.
More recently the German strength is derived from a tremendous con-
centration of industrial power first in huge cartels, and later under
Schacht, and Hitler. This situation is probably temporary (perhaps
one year - perhaps thirty) and the outstanding question is as to what
will happen to the rest of the world when and if Germany smashes.
Also there is the question of how far the other nations will have to
go in imposing economic controls during the period while Imperialistic
Nazi Germany continues with the system now in effect.
Nothing that has occurred in the last 25 years tends to cast
any serious doubt on the correctness of Veblen's penetrating analysis.
If, however, his basic thought should prove to be wrong and if Germany
should display an ability to maintain for several generations a high
degree of economic efficiency as well as a capacity for military
enterprise in an extreme form, then the entire world, including this
hemisphere, would be confronted with a situation fraught with diffi-
culty, danger, and the possibility of ultimate tragedy.
On the other hand, there appears to be nothing peculiarly
inherent in the German mind (as distinct from the Prussian tradition)
that would make it impossible for the people of Germany to exorcise
- 17 -
the evil spirit of militant imperialism. Should that occur,
Germany could become a valuable asset to the family of nations
and a powerful factor in economic and social progress.
Postscript to Review
After I finished this review, I became possessed with a
great desire to take a fresh look at Veblen's work, "The Nature
of Peace" which I had read 20 years ago but had forgotten. This book
which was published in early 1917 before the United States entered the
war is just as remarkable in its prophetic insight as the book on Ger-
many. Curiously enough when I opened the book, the first passage on which
my eye fell was one dealing with the requisites of a league of nations.
The passage follows:
"It is true, the more genial spokesmen of the project
are given to the view that what is to come of it all is a
comity of neutral nations, amicably adjusting their own re-
lations among themselves in a spirit of peace and good-will.
But this view is over-sanguine, in that it overlooks the point
that into this prospective comity of nations Imperial Germany
(and Imperial Japan) fit like a drunken savage with a machine
gun. It also overlooks the patent fatality that these two are
bound to come into a coalition at the next turn, with whatever
outside and subsidiary resources they can draw on; provided only
that a reasonable opening for further enterprise presents it-
self."
Veblen in "The Nature of Peace" gives evidence of having studied
the shorter catchecism when he speaks cynically of the British gentleman -
investors as being men of blameless propriety whose place it is "to glor-
ify God and enjoy him forever" whereas the function of the German gen-
tleman - adventurers of prowess and proud words, is "to glorify God and
disturb the peace." In no sense is Veblen pro-British. But he is con-
vinced that the British gentlemen are reaching the end of their rope and
that the ruthlessness of the Germans and Japs in utilizing modern tech-
nology in a factual instead of a gentlemanly wasteful manner will force
the whole world to face certain eventualities.
-2-
If Veblen were writing today, he would doubtless make a num-
ber of changes in his analysis. And yet in the nain his understand-
ing of the trend of economic and political events is so profound
that his two books "Imperial Germany" and "The Nature of Pence" should
be required reading for the statemen of all the democratic countries
of the world. They can't afford to make at the time the next peace
comes, the same errors that were made in 1919 and the early 20's.
Veblen is verily a modern Isaiah and as such is without suffi-
cient esteen in his own land.
DEPARTMENT OF AGRICULTURE
STATE STATE DEPARTMENTO OREGON
WASHINGTON HE WHITE HOUSE
APR 2 8 57 AM '40
RECEIVED
April 1, 1940
The President
The White House
Dear Mr. President:
I forgot to mention to you when sending you my review
of Veblen's book "Imperial Germany" that I sent a copy of
this review to Secretary Hull. He had it carefully read in-
dependently by two of his best men. The suggestions which
they made have been incorporated.
The postscript, however, referring to Veblen's book,
"The Nature of Peace" has not been passed on by the State
Department.
No one can read Veblen's book "The Nature of Peace"
without being gravely concerned with what will eventually
happen if England and France make a premature peace with Ger-
many. Veblen, writing in late 1916 and early 1917 before we
entered the World War, feared what ultimately came to pass.
He feared that a premature peace would be made with Germany
and that eventually she would again break the peace.
Respectfully yours
Hawallace
Secretary
Ps F: Aqualture
filling free tile
Wallpres 940
THE WHITE HOUSE
WASHINGTON
5/1 1940
Sec. Wallace 'phoned:
"I just heard from Bill
Thatcher that the New Deal had
won the mayorality race out in
St. Paul. He feels it is
significant of the Minnesota
trend."
PSF Aquareture
3
DEPARTMENT OF AGRICULTURE
A
STATE I DEPARTMENTO ))
WASHINGTON
May 6, THE 1940 WHITE HOUSE
MAY 7 10 37 AM '40
RECEIVED
The President
The White House
Dear Mr. President:
Guy Gillette gave me today a copy of a telegram he has
just received, apparently a duplicate of a message sent to the
other Democratic Members of Congress from Iowa, copy of which I
enclose herewith.
This message seems to reflect the situation about which
I talked to you on the phone when you were in Warm Springs, when
I told you I had word of a movement in Iowa which I did not wish
to embarrass either you or me. The names on the telegram are
representative of the leadership of the party in Iowa and col-
lectively are of such strength as to require the most serious
consideration by the Iowa Congressional Delegation. The list
seems to cover just about all varieties of policy attitude. I
note, for example, the names of T. E. Diamond and C. F. Murphy,
who are two of the only three attorneys in Iowa that I know of
who went vigorously and completely to bat in support of your
court program. There are names of some others who are definitely
New Dealers, enthusiastically your followers, there are some few
who are reported to be rather strongly anti-third term. There
are others whose main interest is in the agricultural policy, and
still others whose interest is simply that of characteristic
county chairmen and local party leaders - interested primarily
in party harmony and party success.
It seems to me that a telegram of this sort bearing these
signatures offers the possibility of rather serious embarrassment
for me, possibly embarrassment for you.
I am writing simply to let you know that if and when the
Iowa Delegation makes an effort to see you, this will be what is
in mind, and to say to you most emphatically that I am ready to
do anything possible in this connection that you may wish me to do.
Sincerely yours,
HaWallace
Secretary
1940 MAY 5 PM 11 40
DUBUQUE IOWA
SENATOR GUY M GILLETTE
TRY SOB WASHINGTON D C
WE ARE TODAY ASKING YOU AND THE OTHER THREE IOWA MEMBERS OF THE CONGRESS
TO SUBMIT THE FOLLOWING MESSAGE TO PRESIDENT ROOSEVELT:
"WE BELIEVE ARRANGEMENT SUCH AS IOWA PAPERS REPORTED YOU APPROVED FOR
TEXAS WOULD GREATLY HELP TICKET IN IOWA AND THROUGHOUT FARM STATES AND
WOULD BE MUCH MORE LOGICALLY AND EFFECTIVELY IN SUPPORT OF YOUR
ADMINISTRATION: - A STRONG ENDORSEMENT OF YOUR ADMINISTRATION IN PLATFORM
AND INSTRUCTIONS FOR WALLACE FOR PRESIDENT. IT WOULD MAKE FARM PROGRAM
AND DEMOCRATIC PARTY IDENTICAL AND WOULD ENTHUSE FARM VOTE. FAILURE TO
DO THIS WOULD BE CONSTRUED AS A REPUDIATION OF FARM PROGRAM BY THE IOWA
DEMOCRACY AND WOULD ENORMOUSLY WEAKEN APPEAL OF PARTY TO FARM VOTE,
NO MATTER WHO THE NOMINEES MAY EVENTUALLY BE. MAY WE HAVE YOUR PERMISSION
TO ANNOUNCE YOUR APPROVAL OF SUCH A PROGRAM FOR OUR CONVENTION
MAY ELEVENTH,"
WE EARNESTLY ASK YOU, IN THE INTERESTS OF PARTY HARMONY AND SUCCESS IN
IOWA, AND FOR THE BEST INTEREST OF THE NATION AT LARGE, TO GO TO THE
PRESIDENT AT THE VERY EARLIEST POSSIBLE MOMENT, PERSONALLY SUBMIT THIS
MESSAGE, AND earnestly REQUEST HIM TO AUTHORIZE YOU TO ANNOUNCE HIS
APPROVAL OF AN INSTRUCTED IOWA DELEGATION FOR WALLACE. WILL YOU PLEASE
ATTEND TO THIS AT ONCE SO THAT IF APPROVAL IS OBTAINED, SUCH ANNOUNCEMENT
MAY BE MADE AT THE EARLIEST MOMENT AND THAT WE MAY ACT ACCORDINGLY
SENATOR EARL DEAN CERROGORDO COUNTY CHAIRMAN G H
GALVIN FLOYD COUNTY CHAIRMAN T E DIAMOND OBRIEN COUNTY
CHAIRMAN, C B MURTOGH MEMBER STATE COMMITTEE, ERWIN
LARSON FORMER MEMBER STATE COMMITTEE, IVER
CHRISTOFFERSEN FORMER MEMBER LEGISLATURE, FRANK M MATAS
SAC COUNTY CHAIRMAN, MRS MARY E FERGUSON SAC COUNTY
CHAIRMAN, DR L B AMICK, DR J R dewey, RAY REED MEMBER
STATE COMMITTEE, DR J K STEPP member STATE COMMITTEE,
FRED BIERMANN FORMER CONGRESSMAN, LAMAR FOSTER FORMER
SPEAKER IOWA HOUSE OF representatives CEDAR COUNTY
CHAIRMAN, DR D J GOEN DELAWARE COUNTY CHAIRMAN, MRS
FRANCES KAUPEL HOWARD COUNTY CHAIRWOMAN, CHARLES P
VOGEL POWESHIEK COUNTY CHAIRMAN, FRED HAGEMANN FORMER
NOMINEE FOR GOVERNOR AND MEMBER STATE HIGHWAY
COMMISSION, MEL GRAHAM AUDUBON COUNTY CHAIRMAN,
MRS ETHEL PETERSON AUDUBON COUNTY CHAIRWOMAN,
FRANK O'CONNOR FORMER UNITED STATES ATTORNEY,
RAY DOUGLASS ALLAMAKEE COUNTY CHAIRMAN,
CHARLES REILLY CHICKASAW COUNTY CHAIRMAN,
JAKE TAYEK CLAYTON COUNTY CHAIRMAN,
MRS HELEN FITZPATRICK CLAYTON COUNTY CHAIRWOMAN,
W B PILKINGTON FORMER CLAYTON COUNTY CHAIRMAN,
L J EHRHARDT FOURTH DISTRICT CHAIRMAN YOUNG DEMOCRATS,
J T HYDE CLAYTON COUNTY CHAIRMAN YOUNG DEMOCRATS,
ATTORNEY C F MURPHY, CLARENCE MCDONALD BUCHANAN COUNTY
CHAIRMAN, WM KENNEDY CHICKASAW COUNTY ATTORNEY (BETTER
THAN COUNTY ATTORNEY TOM DEWEY) JOHN F KENNEDY
DEMOCRATIC BANKER, FRANK OWEN IOWA COUNTY CHAIRMAN,
MRS RAY BAXTER MEMBER STATE COMMITTEE,
FRANK GILLOON DUBUQUE COUNTY CHAIRMAN,
MRS LAWRENCE SMITH MEMBER STATE COMMITTEE,
W E CONNORS WORTH COUNTY CHAIRMAN, DR W E WALSH FAYETTE
COUNTY CHAIRMAN, MRS LEO COLEMAN FAYETTE COUNTY CHAIRHOMAN,
MRS FRANCES BICKERT MONROE COUNTY CHAIRWOMAN,
RAY SCHAEFER LEE COUNTY CHAIRMAN, MRS PAUL HUSTON
LINN COUNTY CHAIRWOMAN, FRED X HAWLEY MEMBER NATIONAL
FARM TENANCY COMMISSION, EDWARD F. MCCARTONCANDIDATE
POCOHANTAS COUNTY ATTORNEY, CHAS A HOUSH CANDIDATE FOR
SECRETARY OF AGRICULTURE, D J GALLERY MADISON COUNTY
CHAIRMAN, SAM J NELSON STORY COUNTY FARMERS INSURANCE
COMPANY, CHARLES benesh TAMA COUNTY CHAIRMAN,
WILL J JACKSON JOHNSON COUNTY CHAIRMAN, F J KENNEDY
EMMETT COUNTY CHAIRMAN, DR W A LEE HANCOCK COUNTY
CHAIRMAN, WM ? HOUSEL HUMBOLIT COUNTY CHAIRMAN
M H MCENROE KOSSUTH COUNTY CHAIRMAN, FRANK MURRAY
WINNEBAGO COUNTY CHAIRMAN MRS MARY GILLEAS CHEROKEE
COUNTY CHAIRWOMAN, J W DICKINSON LYON COUNTY CHAIRMAN,
W J JOHANNES OSCEOLA COUNTY CHAIRMAN, DR R J JOYNT
PLYMOUTH COUNTY CHAIRMAN, o J REIMERS FORMER STATE
representative, MRS FLORENCE LYNCH MEMBER STATE COMMITTEE,
LEROY RADER, FRANK MCGILL, L M MCGIVERN, HOMER HUSH,
CHRIS REESE, BARNEY ALLEN, J A SCHNEIDER, HOWARD COUNTY
CHAIRMAN, JOE MEKOTA LINN COUNTY CHAIRMAN
PSF: Agriculty area
ju
DEPARTMENT OF AGRICULTURE
STATE THE DEPARTMENTOR )
full
WASHINGTON
June 26, 1940
Come
The President
The White House
Dear Mr. President:
In response to your request, a copy of the memorandum
which we discussed yesterday is enclosed. Revisions based upon
your suggestions have been made.
Respectfully,
dd a Wallace
Enclosure
Secretary
Politically speaking we
must be prepared, of course in
case of need, to buy up at equivalent
pri clo pric products in the u.s.
using probably "reciprocal dollars"
rather than & U.S. dollars
Basic Considerations for a Permanent Inter-American
Cartel Corporation
1. The surpluses of this hemisphere must be kept moving
into consumption:
A. As much as possible, taking military considerations
into account, should be exported from both continents
to the rest of the world.
B. Judicious amounts should be stored on an ever-normal
granary basis within the hemisphere.
C. Whatever is left over should be distributed as promptly
as possible to the impoverished families of both North
and South America. Without such & "safety valve" out-
let for surpluses within the two continents, huge in-
ventories might wreck the whole cartel scheme.
2. The Cartel Corporation ultimately must act as a clearing
house for all export and all import transactions between the New World
and the Old if Germany controls Europe. To achieve this purpose it
should use two kinds of dollars:
A. "Reciprocal" dollars would be used exclusively in foreign
trade between this hemisphere and the rest of the world.
These "reciprocal" dollars could be used to buy goods from
countries outside this hemisphere and such countries
in turn could use them to buy hemispheric surpluses
- 2 -
through the Cartel Corporation. As soon as possible
we should get on a basis where total imports would
equal the total exports; "reciprocal" dollars therefore
could not be hoarded. Gold might be used to back this
world trade currency. Part of it actually might be
sent to those Republics where purchases were being made.
Psychologically, that would bring about a new confidence
in the value and usefulness of gold here at home. It
would give our neighbors to the south of us the feeling
that the New World was using the traditional economic
power of gold aggressively.
The Cartel Corporation would break even in all
world trade with "reciprocal" dollars. After buying
surpluses for export outside the hemisphere with them,
it could offer to exchange them at established rates
for the internal currencies of each American Republic.
To get the program started, the Cartel Corporation could
set up a revolving fund of "reciprocal" dollars.
B. Since "reciprocal" dollars would be the only money which
could be used in trade between the New World and the Old,
"regular" American dollars, as we have known them, would
automatically become a hemispheric currency limited to
circulation in North and South America. The Cartel
- 3 -
Corporation would use these dollars to buy surpluses
over and above what could be exported from the New World.
Most of these goods ultimately would be distributed to
needy families on both continents under programs of sur-
plus removal similar to those now in operation in this
country, but adjusted to the national needs of each
Republic. This is the only place where a subsidy from
our Federal Government would be necessary. The cost
to the American tax-payer would be partially offset by
the fact that "regular" dollars used to buy surpluses
for distribution within the hemisphere ultimately and
automatically would have to be spent in our own country
largely for our industrial goods.
3. Anyone within this hemisphere desiring to make purchases
outside it, would exchange "regular" dollars, or the currency of his
own Republic, for "reciprocal" dollars in order to do SO. Those
"reciprocal" dollars would then be available in other countries for
purchases of goods available within this hemisphere. Similarly, anyone
outside this hemisphere obtaining "reciprocal" dollars which were not
immediately needed for purchases from the New World, could exchange them
for the currency of his own country if he desired to do so. That country
could then make them available to anyone who did want to buy from this
hemisphere.
4. Appropriate agreements should be entered into between the
Cartel Corporation and each American Republic covering such matters as:
- 4 -
A. Production control figured on some fair "base period".
B. Contributions to the stock of the Cartel Corporation.
C. Lessening of trade barriers within the hemisphere so
far as practical.
D. Programs for distribution of surpluses to the needy.
E. Use of normal business channels, working through the
Cartel Corporation to take advantage of their practical
knowledge of the complicated problems of world trade,
commodity by commodity.
The new era beyond this conflict will no more permit the hoard-
ing of commodities in the face of want than it will the hoarding of
money in the face of poverty. A western hemisphere which is commodity-
rich and consumption-poor can not survive. A western hemisphere which
has the genius to make its real wealth available to all its peoples
will be impregnable. For the first time in history, because we have
learned how to produce abundantly, men no longer have to grab from each
other to have enough for themselves.
sF:
Jilynamel
wallace
UNITED STATES
DEPARTMENT OF AGRICULTURE
OFFICE OF THE UNDER SECRETARY
WASHINGTON, D.C.
July 10, 1940
Memorandum to the Secretary
Dear Mr. Secretary:
Herewith is submitted a few suggestions for the conduct of
the Democratic campaign this year.
1. Immediately make known the Republican candidate's
entire record with public utilities, pointing out
at the same time that the Republican candidate is
without experience in either public office or in-
ternational affairs.
2. The President should confine his campaign efforts
entirely to keeping the people informed on the in-
ternational situation, and our progress in national
defense. The President should avoid making poli-
tical speeches because:
8. He is not seeking the office but is accept-
ing a mandate from the people in a critical
hour. This can be pointed out in due time.
b. The seriousness of our present situation
demands his undivided attention and he is
sticking strictly to the job during this
time.
C. The vice presidential candidate and others
can constantly, and even more effectively
than the President, point out the President's
record and experience. It is particularly
important to call attention to his grasp of
the international situation, his experience
in the previous war, and to the fact that he
has consistently foreseen and has been pre-
pared, insofar as possible, for the events
which have occurred.
-2-
3. Get to the people tangible evidence of the extent
to which we are prepared to defend ourselves. This
might be accomplished in numerous ways. It would be
possible, for instance, to stage air shows in strategic
points throughout the country, in which army and navy
planes would take a prominent part. It might also be
possible to have a "preparedness day" at state fairs.
Movies could be used to show actual production of
defense materials, and all activities of the Defense
Council should be highly publicised.
4. Build the theme of the campaign around the slogan
"Peace Through Preparedness." The people want peace
and they are willing to pay for preparedness to
insure peace. The "big stick," 80 big no country
will dare attack us, has great appeal.
Sincerely yours,
Under Secretary.
(m.f. wilson)
PSF stgnature
ivallace
August 20, 1940
Respectfully referred for the
files ofthe Department of State.
EDWIN M. WATSON
Secretary to the President
hm
Transmitting for the files of the Department, copy of letter
from Hon. Henry A. Wallace, 8/15/40, to the President,
tendering his resignation 6.8 Secretary of Agriculture,
effective at the close of business on September 5, 1940,
together with a copy of the President's letter of August 17,
1940, accepting the resignation as tendered. Mr. Hess has
& memorandum regarding the matter.
Aboard the President's Train,
August 17th, 1940.
Dear Henry:
In different circumstances I should have deep
regret in consenting to your withdrawal as Secretary of
Agriculture. But, giving due weight to the consideration
that the step you are impelled to take represents rather a
change in relations than a severance of close ties, I have
no alternative. Therefore, in accordance with the terms
of your letter of August fifteenth, I accept your resigna-
tion effective at the close of business on September 5,
1940.
You and I are content to leave determination of
the issues in the campaign this year to the calm judgment
of the voters. Under our form of government there is no
higher arbitrament than the bar of public opinion.
I cum delighted that you are to be freed of all
official duties so that you can devote your time and talents
exclusively to an interpretation of your agricultural pro-
gram to the American people. You found agriculture pros-
trate in March, 1933. The vicious wheel had turned full
circle when you came to the rescue. Markets had been ruined;
purchasing value was gonet the farmer was penniless. Fore-
closures and tax sales had done the rest.
The farmers of the country are not likely to for-
get this. Their minds are seared with bitter memories of
official neglect and official incompetence which brought
them and the Nation to disaster.
I know, and the farmers of the Nation likewise
have knowledge, of the deliberation, true wisdom and states-
manship which have gone into the formulation of your agricul-
tural program. I know and they know that bankruptcy, ruin,
despair and disaster, which had been their previous portion
through long years of neglect and incompetence at Washington,
gave way under your guiding hand to & greater prosperity,
security and, above all else, to a return to self-respect
and sane thinking.
-2-
Although you have devoted years to the study of
our agricultural problems and brought rich experience to
their solution, yours has not been a nardow specialization.
You have been able to view the problem of the farmer in its
relation to other problems -- economic, industrial and
international. You have adhered without deviation to the
settled processes of democracy. You and I remain unshaken
in our faith in those processes and in the efficacy of the
policy of the good neighbor in the field of foreign affairs.
Your habit of thought has enabled you always to see with
singular clarity the needs of the country as 4a. whole.
I think it particularly fortunate that throughout
the weeks of the autuan you are to be free and unhampered to
go about at will. This will give you an excellent oppor-
tunity in public addresses, and through conferences with
groups and individuals, to discuss the work you have been
doing in behalf of agriculture.
Such a presentation will be of benefit alike to
the farmers, and to the rank and file of the citizens. With
them rests judgment as to the work you have been doing during
the past seven years and more in behalf of agriculture and
in behalf of the Nation.
Very sincerely yours,
Honorable Henry A. Wallace,
Secretary of Agriculture,
Washington, D. C.
DEPARTMENT OF AGRICULTURE
DEPARTMENTO ))
WASHINGTON
August 15, 1940
The President
The White House
Dear Mr. President:
I am tendering you herewith my resignation to take effect
on September 5, 1940, the day on which I shall probably begin
active campaigning. I look forward gladly to the rare opportun-
ity I shall have to discuss with the American people the matters
in which you and I are 80 profoundly interested and which are of
such grave importance to the country.
I believe thoroughly in your unique capacities to lead the
American people in these troublous times when experience and wis-
dom are so essential. Therefore, I approach the work of the
campaign with eagerness.
Although this represents only a change in our relationship,
I can't write this letter without expressing to you By deep grati-
tude for the extraordinary experience of the past eight years. The
opportunity to work on so broad a front under your leadership in
times of extraordinary national need has been immensely satisfying.
To have had in the Department of Agriculture the material of fine
personnel, excellent traditions and technical preparation, and to
be able to use all this equipment, all the services of this able
personnel, because of your support, in the development of the
really enormous action programs for the benefit of agriculture,
has been an opportunity and an experience that could come only
once in a millennium. Now I am looking forward to another period,
another opportunity of even greater significance.
Sincerely yours,
Hawallace
Secretary.
0
THE WHITE HOUSE
I
WASHINGTON
Aboard the President's Train,
August 17th, 1940.
Dear Henry:
In different circumstances I should have deep
regret in consenting to your withdrawal as Secretary of
Agriculture. But, giving due weight to the consideration
that the step you are impelled to take represents rather a
change in relations than a severance of close ties, I have
no alternative. Therefore, in accordance with the terms
of your letter of August fifteenth, I accept your resigna-
tion effective at the close of business on September 5,
1940.
You and I are content to leave determination of
the issues in the campaign this year to the calm judgment
of the voters. Under our form of government there is no
higher arbitrament than the bar of public opinion.
I an delighted that you are to be freed of all
official duties so that you can devote your time and talents
exclusively to an interpretation of your agricultural pro-
gram to the American people. You found agriculture pros-
trate in March, 1933. The victous wheel had turned full
circle when you camo to the resoue. Markets had been ruined;
purchasing value was gone; the farmer was penniless. Fore-
closures and tax sales had done the rest.
The farmers of the country are not likely to for-
get this. Their minds are seared with bitter memories of
official neglect and official incompetence which brought
them and the Nation to disaster.
I know, and the farmers of the Nation likewise
have knowledge, of the deliberation, true wisdom and states-
manship which have gone into the formulation of your agricul-
tural program. I know and they know that bankruptcy, ruin,
despair and disaster, which had been their previous portion
through long years of neglect and incompetence at Washington,
gave way under your guiding hand to a greater prosperity,
security and, above all else, to a return of self-respect
and sane thinking.
- 2 -
Although you have devoted years to the study of
our agricultural problems and brought rich experience to
their solution, yours has not been & narrow specialization.
You have been able to view the problem of the farmer in its
relation to other problems - economic, industrial and
international. You have adhered without deviation to the
settled processes of democracy. You and I remain unshaken
in our faith in those processes and in the efficacy of the
policy of the good neighbor in the field of foreign affairs.
Your habit of thought has enabled you always to see with
singular clarity the needs of the country as a whole.
I think it particularly fortunate that throughout
the weeks of the autumn you are to be free and unhanpered to
go about at will. This will give you an excellent oppor-
tunity in public addresses, and through conferences with
groups and individuals, to discuss the work you have been
doing in behalf of agriculture.
Such & presentation will be of benefit alike to
the farmers, and to the rank and file of the citizens. with
them rests judgment as to the work you have been doing during
the past seven years and more in behalf of agriculture and
in behalf of the Nation.
Very sincerely yours,
(Signed) FRANKLIN D. ROOSEVELT
Honorable Henry A. Wallace,
Secretary of Agriculture,
Washington, D. C.
1.71,
THE WHITE HOUSE
WASHINGTON
0176,1940
Dear Henry:
In different circumstances I should have deep regret in consenting to
your withdrawal as Secretary of Agriculture. But, giving due weight to the
consideration that the step you are impelled to take represents rather a change
in relations than a severance of close ties, I have no alternative. Therefore,
in accordance with the terms of your letter of August fifteenth, I accept your
resignation effective at the close of business on September 5, 1940.
You and I are content to leave determination of the issues in the campaign
this year to the calm judgment of the voters. Under our form of government
there is no higher arbitrament than the bar of public opinion.
I an delighted that you are to be freed of all official duties so that you
can devote your time and talents exclusively to an interpretation of your agri-
cultural program to the American people. You found agriculture prostrate in
March, 1933. The vicious wheel had turned full circle when you came to the
rescue. Markets had been ruined; purchasing value was gone; the farmer was
penniless. Foreclosures and tax sales had done the rest.
The farmers of the country are not likely to forget this. Their minds
are seared with bitter memories of official neglect and official incompetence
which brought them and the Nation to disaster.
I know, and the farmers of the Nation likewise have knowledge, of the
deliberation, true wisdom and statesmanship which have gone into the formulation
of your agricultural program. I know and they know that bankruptcy, ruin,
despair and disaster, which had been their previous portion through long years
of neglect and incompetence at Washington, gave way under your guiding hand to & quater
prosperity, security and, above all else, to a return to self-respect and sane
thinking.
I think it particularly fortunate that throughout the weeks of the autumn
you are to be free and unhampered to go about at will. This will give you an
excellent opportunity in public addresses, and through conferences with groups
and individuals, to discuss the work you have been doing in behalf of agriculture.
Such a presentation will be of benefit alike to the farmers, and to the
rank and file of the citizens. with them rests judgment as to the work you have
been doing during the past seven years and more in behalf of agriculture and
in behalf of the Nation.
Honorable Add Henry A. Wallace,
Very sincerely yours,
Secretary of Agriculture,
Washington, D. C.
August 18th, 1940.
FOR THE PRESS --
HOLD FOR RELEASE --
Released for papers appearing on the streets not earlier than
9 o'clock A.M., Eastern Standard Time, Monday, August 19th, 1940.
The same limitation applies to use by radio broadcasters or radio
news commentators.
PLEASE SAFEGUARD AGAINST PREMATURE RELEASE.
William D. Hassett.
-
The following correspondence was made public in connection
with the resignation from the Cabinet of Henry A. Wallace, Secre-
tary of Agriculture.
Secretary Wallace submitted his resignation in a letter of
which the following is the text:
"August 15, 1940.
The President,
The White House.
Dear Mr. President:
I am tendering you herewith my resignation to take
effect on September 5, 1940, the day on which I shall
probably begin active campaigning. I look forward gladly
to the rare opportunity I shall have to discuss with the
American people the matters in which you and I are so pro-
foundly interested and which are of such grave importance
to the country.
I believe thoroughly in your unique capacities to
lead the American people in these troublous times when
experience and wisdom are so essential. Therefore, I ap-
proach the work of the campaign with eagerness.
Although this represents only a change in our relation-
ship, I can't write this letter without expressing to you
my deep gratitude for the extraordinary experience of the
past eight years. The opportunity to work on so broad a
front under your leadership in times of extraordinary
national need has been immensely satisfying. To have had
in the Department of Agriculture the material oi fine per-
sonnel, excellent traditions and technical preparation, and
to be able to use all this equipment, all the services of
this able personnel, because of your support, in the develop-
ment of the really enormous action programs for the benefit
of agriculture, has been an opportunity and an experience
that could come only once in a millennium. Now I am look-
ing forward to another period, another opportunity of even
greater significance.
Sincerely yours,
H. A. WALLACE,
Secretary."
The President, in accepting the resignation, wrote
Mr. Wallace as follows:
"Aboard the President's Train,
August 17th, 1940.
Dear Henry:
In different circumstances I should have deep
regret in consenting to your withdrawal as Secretary of
Agriculture. But, giving due weight to the consideration
that the step you are impelled to take represents rather a
change in relations than a severance of close ties, I have
no alternative. Therefore, in accordance with the terms
of your letter of August fifteenth, I accept your resigna-
tion effective at the close of business on September 5, 1940.
-2-
You and I are content to leave determination of
the issues in the cumpaign this year to the calm judgment
of the voters. Under our form of government there is no
higher arbitrament than the bar of public opinion.
I am delighted that you are to be freed of all
official duties so that you can devote your time and talents
exclusively to an interpretation or your agricultural pro-
gram to the American people. You found agriculture pros-
trate in March, 1933. The vicious wheel had turned full
circle when you came to the rescue. Markets nad been ruined;
purchasing value was gone; the farmer was penniless. Fore-
closures and tax sales had done the rest.
The farmers of the country are not likely to for-
get this. Their minus are seared with bitter memories of
official neglect and official incompetence which brought
them and the Nation to disaster.
I know, and the farmers of the Nation likewise
have knowledge, of the deliberation, true wisdom and states-
manship which have gone into the formulation of your agricul-
tural program. I know and they know that bankruptcy, ruin,
despair and disaster, which hud been their previous portion
through long years of neglect and incompetence at Washington,
gave way under your guiding hand to a greater prosperity,
security and, above all else, to a return to self-respect
and sune thinking.
Although you have devoted years to the study of
our agricultural problems and brought rich experience to
their solution, yours nas not been a narrow specialization.
You have been able to view the problem of the farmer in its
relation to other problems -- economic, industrial and
international. You have adhered without deviation to the
settled processes of democracy. You and I remain unshaken
in our faith in those processes and in the efficacy of the
policy of the good neighbor in the field of foreign affairs.
Your habit of thought nas enabled you always to see with
singular clarity the needs of the country as a whole.
I think it particularly fortunate that throughout
the weeks of the autuan you are to be free and unhampered to
go about at will. Tnis will give you an excellent oppor-
tunity in public addresses, and through conferences with
groups and individuals, to discuss the work you have been
doing in behalf of agriculture.
Such 4 presentation will be of benefit alike to
the farmers, and to the rank and file of the citizens. With
them rests judgment as to the work you have been doing during
the past seven years and more in behalf of agriculture and
in behalf of the Nation.
Very sincerely yours,
FRANKLIN D. ROOSEVELT.
Honorable Henry A. Wallace,
Secretary of Agriculture,
Washington, D. C."
PSF
Walline
THE WHITE HOUSE
WASHINGTON
agrie
September 13, 1940
CONFIDENTIAL
MEMORANDUM FOR
HON. MYRON TAYLOR
I think this will interest
you -- extremely confidential.
Will you let me have your thought?
F. D. R.
Enclosures
fdr/tmb
Let. to the President from Acting Sec.
Paul H. Appleby, 9/11/40 enclosing
additional material concerning the
relation of the present regime in
France to various religious groups
in other countries about which Mr. Wallace
discussed with the President before
leaving.
file Person Intial
KILLINGWORTH
Locust VALLEY
LONG ISLAND
September 15 1940
Dear Mr. President:
I found the memoranda which you sent very
interesting indeed, and am returning them
herewith.
As you have asked me for my thoughts, I
am attaching a memorandum which at least
presents a conclusion as to policy to be fol-
lowed, at any rate for the present.
Also I enclose a newspaper clipping which
you have probably already seen, and which in-
dicates the relationship between Bonnet and
Abetz.
Very sincerely yours,
The Honorable,
Franklin D. Roosevelt,
The White House,
Washington, D.C.
September 15 1940
L
MEMORANDUM
FOR THE PRESIDENT:
As to the person described in the report, I
have met him in Paris at Ambassador Bullitt's
and at Versailles-- I think, in the home of
James Hazen Hyde. I have no personal impres-
sion about him, but I believe Ambassador Bullitt
could give you full information.
When I left Rome, three weeks ago, there
was no indication of a radical change of Vati-
can policy although, as I intimated to you in
our conversation, there was evident despair over
Britain's ability to withstand her enemies, in
view of the more recent German conquests, which
embraced the loss of her principal ally, of the
use of a large accumulation of war materials,
of fully developed munitions plants and other
useful works, and, not the least, of control of
the Channel ports.
With all of these factors, and with Italy
awaiting its opportunity to become aggressive
in many places, the outlook, as envisioned by
--2--
those in question, was not encouraging for British
interests.
At that time I had no reason to believe that
the Vatican would support the principles of Nazism
or of Fascism, although I have always kept before
my own mind the fact that the leading influences
in the Vatican were Italian. This fact never ap-
peared to influence action.
I heard on the radio today (Sunday), in the
National Broadcasting Company's Berlin review,
that next Sunday a Catholic Bishop in Germany
would announce the collaboration of the Catholic
Church with the Nazi Government. This, if true,
would of course be a shock to many in Germany,
Austria and elsewhere. The attitude of the Vati-
can would probably be that they are more con-
cerned with the conduct of a government toward
its people, both in their religious life and in
the practice of the humanities, than in devising
particular forms of government. The large Catho-
lic populations of Holland, Belgium, Poland and
France are in such a predicament, and with SO
uncertain a future, that I should think if the
--3--
Vatican puts in any sense the stamp of its ap-
proval on the Nazi regime in Germany or the
Fascist regime in Italy, it will have very un-
comfortable repercussions in those countries. In
any event, the present situation of the Church in
Europe is most uncertain.
As I indicated to you, my information was that
the Petain Government was being undermined by
both the French and the Germans. No one in position
of authority whom I contacted felt that it would
last very long. That fact I should think would be
of considerable influence in determining the course
of action which you will take by way of formal rec-
ognition of that Government, and which as a neces-
sary consequence solves, at least for the time be-
ing, the problem of the proposed Ambassador. As you
have asked for my thought on the subject, I would
say that for the moment I would do nothing.
NEW YORK TIMES
September 6 1940
RETURN OF BONNET
The Matin, after asserting that
"There is much discontent In
the French Constitution of 1875 was
German circles that nothing has
violated when the then Premier
been done ao far on the Polish side
TO POST INDICATED
Edouard Daladier declared war on
for conciliation. It is feared the
Germany without convening Parila-
Reich may order her troops to
ment, said that, besides three
launch an attack if there is still no
"clear-sighted statesmen," Pierre
reply at noon. It is necessary that
Laval, Gaston Bergery and Pierre-
Polish Ambassador Lipski (Josef
Visit in Paris, Article There
Etienne Flandin, who "attempted
Lipski, then envoy to the Reich,
on His 1939 Peace Effort
to avert the catastrophe," there was
who had gone to Warsaw at the
a fourth, Georges Bonnet, who
time) be sent (back) to Berlin urg-
Seen as Political Steps
would have succeeded in preventing
ently to start the negotiations M
war if It had not been for "the war-
plenipotentiary."
like spirit of the British and the
"There was not a minute to
stubbornness of the Polish Govern-
spare," according to the Matin,
MIGHT REPLACE BAUDOIN
ment."
"and M. Bonnet immediately In-
M. Bonnet, through five difficult
formed London, while instructing
days before the outbreak of war,
M. Noël in Warsaw to make an-
did his utmost to quell the war
other démarche upon Colonel Beck,
Ex-Foreign Minister, Hinted for
spirit, the Matin said.
who promised to reply at noon.
Place at Vichy, Did Best to
"On Aug. 28 (1939) the crisis "At noon M. Bonnet was still alt-
reached & climax," the article stat- ting In his office overlooking the
Avert War, Says Le Matin
ed. "In Britain, France, Germany, gardens of the Qual d'Orany await-
Poland, millions of men, face to ing developments, after more fram-
face, were mobilized in tragio ex- the calls to London and Berlin and
pectation.
after telephoning Rome. It was not
By GEORGE AXELSSON
"It seemed then that war was until 6 o'clock in the evening that
Wireless to THE NEW YORK Times,
unavoidable, but It could have been M. Lipski called on the Wilhelm-
PARIS, Sept. 2 (Delayed: via
averted If two essential truths had strasse, and then without full pow-
Beriin)-Assertions that former
been understood in Paris, London ers to negotiate, which led [Reich
Foreign Minister Georges Bonnet
and Warsaw: First, that Chancel- Foreign Minister Joachim] von
did his best to preserve peace In
lor Hitler was not bluffing and that Ribbentrop to refuse the conversa-
the tragle last days of August,
he wanted & complete settlement of tions."
1939, were made for the first time
German-Polish problems; second,
in a Paris newspaper today by the
that suppression of "the foolish
Matin. It printed what It claims
terms of the Versailles treaty
is a true account of diplomatic
could no longer be postponed."
The Matin said Adolf Hitler left
events that precipitated the war &
the door open for further discus-
year ago.
M. Bonnet returned to Vichy to-
sions of the "Polish problems," and
that M. Bonnet at 1 A. M. on Aug.
night after spending a few days in
30 wired the then French Ambassa-
Paris, during which he met an In-
timate friend. Count Fernand de
dor in Warsaw, Leon Noel, that
Brinon, and Heinrich Abets. Ger-
Herr Hitler was agreeable to direct
man Ambassador to France and
conversations, and also wired Berlin
High Commissioner for the occu-
and Warsaw urging the German
pied territory, and other prominent
and Polish troops to withdraw sev-
eral miles from the border to avoid
German officials.
Although no statement of M. Bon-
an incident,
net's activities could be obtained,
However, M. Bonnet's personal
the writer understands from au-
Initiative, it was asserted, was met
thoritative sources that the coinci-
with #kepticism by the French Am-
dence of his presence in Paris with
bassadors in Berlin and Warsaw-
that of Vice Premier Pierre Laval
especially Robert Coulondre, the
of the Pétain regime and talks of
envoy at Berlin, who was said to
have wired back:
reshuffling the Viehy Cabinet, as
"Chancellor Hitler's reply too
well as the Matin's article, might
mean M. Bonnet's comeback to play
brutal; more like the dictate Im-
a prominent role in French politics
posed on vanquished State than
-perhaps as Foreign Minister again
agreement to negotiate with NOV-
to replace Paul Baudoin.
ereign State."
"How under such conditions could
M. Bonnet, whose family remained
the recommendations of the head
at Perigueux in the Bordeaux dis-
of French diplomacy be transmitted
trict, after the German forces
marched on Paris, is regarded by
with sufficient energy to the Polish
Government?" the Matin article
some political observers here as &
went on.
"coming man" in the new French
However, M. Bonnet reportedly
politics. Anyway, they say a. Bonnet
Insisted on urging at London the
offensive started with the Matin
same day joint Franco-British rep-
article.
resentations to Poland. This move
While he headed French diplo-
was agreed to by the British Gov-
macy at the Qual d'Orsay, Count de
ernment and Ambassador Noel was
Brinon often took unofficial trips to
instructed to see Colonel Josef
Berlin in M. Bonnet's behalf in
Beck, then Polish Foreign Minis-
efforts to concillate Franco-German
ter, and urge him to make an Im-
viewpoints, agaist the bellicose
mediate and favorable reply to the
spirit of preparation that was brew-
German suggestion of direct con-
ing in Western Europe.
versations.
Thus It is believed his eventual
"Berlin awaited all day the ap-
appointment to the Vichy Cabinet
proach by the Polish plenipoten-
would not be frowned upon in Ger-
tiary," said the Matin.
man circles, and Marshal Henri
On the morning of Aug. 31. the
Philippe Petain, the Chief of States,
article continued, there was still no
always appreciated the skill he dis-
Polish reply in Berlin, and Ambas-
played as a diplomat while Ambas-
sador Coulondre reportedly tele-
sador to Washington and as econo-
mist in the Laval-Flandin Cabinet
phoned M. Bonnet from Berlin:
in 1935 as Minister of Commerce.
DEPARTMENT OF AGRICULTURE
SEAL If DEPARTMENTOR ))
WASHINGTON
September 11, 1940
The President,
The White House.
Dear Mr. President:
I understand that before Mr. Wallace le ft Washington,
he discussed with you in person certain information that had
reached him, concerning the relation of the present regime in
France to various religious groups in other countries.
Tie have now received additional material from the same
responsible source as this earlier information. Since this
latest information bears particularly on the character and pre-
vious activities of the new representative from France to this
country, and on possible policies that we might follow with re-
spect to the recognition of the government which he represents,
I an forwarding this material to you for your own personal
information.
I understood from Mr. Wallace that you were greatly
interested in what he had to say to you on the subject before,
and believe for that reason you will wish to see this additional
material yourself.
Sincerely yours,
Acting Secretary
Enclosures
Grace:
Will you hand this confidentially
to the President? It is from Secretary
Wallace.
Jim Rowe
September 8, 1940
M. Henri Haye was known to be in close relations to the notorious
Nazi agent, Abetz, who was expelled by the French government before the war,
and who is now Hitler's representative to the Petain government. Abetz,
with the help of the most active "intellectual" Nazi agent, Sieburg, was
mainly responsible for the organization of the Fifth Column in France, and
Mr. Haye is said to have been one of his chief advisors and most enthusiastic
supporters. His position became very difficult after the beginning of the
war, but he managed, with the help of friends, to keep out of danger. His
appointment as ambassador to the U.S.A. is directly connected with his
former activities which he is expected to continue in this country in
cooperation with his friend Abetz. One of his first tasks will, however,
consist in enlisting sympathies for the new government by refuting the
allegation that they have gone Fascist. This policy is in accord with the
new tactics of the Nazi propaganda to advise even the German Bundists to
drop their Nazi connections, and even to deny any allegiance to the Nazi
ideology, with the purpose to better serve their cause for the Nazis in
this country. But the main mission of M. Haye will be, as I told Mr. Wallace,
to make the greatest efforts to get as much as possible of the French gold
and other assets deposited in this country.
I must say that my Spanish and Portuguese friends, and even many
Frenchmen, are amazed that the U.S.A. could give their agreement to the
appointment of such a man; and they are sure that unless M. Haye's position
be made, from the outright, untenable, he will cause much trouble. I
therefore repeat that the only way to counteract such designs is to delay
&
official recognition of the Petain government. Against any claim of
legality and constitutionality of the Petain government, the fact must be
advanced that the resolution of the French Senate not to allow the newly
proposed constitution to be introduced without a referendum, is a great
obstacle to normal relations between the U.S.A. and the Petain govern-
ment; and that therefor the result of the referendum is to be awaited
first. On the other hand, every endeavor must be made to delay the carry-
ing through of the referendum. One of the most promising means to that
end, is to induce the French colonies in the U.S.A. and Latin America
to claim the right of participation in the referendum. This can be best
supported by the precedent set up by Hitler himself, when he claimed
such right for all the Saarlanders outside Germany. As you will remember,
special German ships were employed to take the Saarlanders to exterritorial
waters in order to enable them to cast their votes. If similar arrange-
ments could be enforced on the Petain government, much time would be gained.
I had a long conversation about this matter with the French head
of the newly instituted committee in defense of a liberated France under
the chairmanship of Dr. Sholto Watt, 610 Fifth Avenue, Room 220, New York
City, and he promised to consider this matter very carefully with the
committee as he thought that my suggestions were very interesting.
I am waiting to hear from him and I think that something may be
undertaken by the committee in connection with the referendum.
Of course, the U.S.A. government can reserve their rights to
consider the value of the results of a referendum held under the pressure
-3-
of the enemy, even in the non-occupied parts of France.
The refusal, or, at least, the delaying, of the official recog-
nition of the Petain government is most essential, chiefly to provide a
legal foundation for refusing, by the Treasury, to yield any of the
French assets, especially if these assets exceed the amount which the
U.S.A. may claim as war debts. Because in such an event I do not see
any justification for refusing the handing over of such an excess, if the
Petain government would be regarded as the actual representative govern-
ment of the whole of France.
But the refusal of such recognition will also be of far-reaching
consequences for the idea of a Fascist-Catholic-Bloc which is constantly
gaining ground in France, Belgium, Spain, and, to a certain extent, also
in Portugal. As I told you, the Portuguese Prime Minister Salazar,
though far from having any sympathies with Fascism, would favor in
principle such a bloc as a staunch Catholic who made all possible efforts
to strengthen Catholic influence in Portugal. That the Portuguese
Catholics had, together with the Spanish Catholics, a hand in reconciling
Fascist Italy with the Vatican, is a clear indication that also Portugal
is supposed to cooperate to make such a bloc successful.
In this connection, the latest manifestati on of the Pope urging
all Catholics to fulfill their patriotic duties towards their fatherland,
reveals the new spirit of the Vatican; and is, indeed, couched in quite
a different language as his previous proclamations. This means not only
a concession to the Petain government, who are reinstituting in France
the power of the Catholic church, in a measure which would not be
-4-
possible even before the separation of church and state in 1904, but it
lends enormous strength to Mussolini and the whole Fascist regime.
Of what effect a successful formation of such a bloc would be in
Catholic circles in this country, and most especially in Latin America,
needs hardly a special emphasis. According to my observation there is
already now a change in the attitude of some Catholics I had occasion to
meet. The same people who some time ago were spitting fire and flame
against Hitler and Mussolini, have become very much more moderate in their
condemnation of Fascism. This is a very significant symptom for the new
winds which are blowing in certain Catholic circles.
As I am told, Spanish emissaries are working very hard under differ-
ent disguise in the propagation of the new idea of a Fascist-Catholic-Bloc
in some of the Latin countries, especially in Colombia, and Argentina,
where Catholic influence is still powerful. The danger of such activities
being spread to this country is obvious, and though at present the election
campaign makes it difficult to take any action, means and ways ought to
be prepared to prevent the infiltration of such ideas in this country with
a Catholic population of French and Italian origin, and many millions of
Irish Catholics who in their anti-British attitudewould side with the
Fascists rather than see England victorious against her enemies.
In this connection, I should like to draw attention to a further
important issue which would make the idea of a Fascist-Catholic-Bloc plausible
even to such Catholic elements who, in principle, would not favor Fascism.
-5-
It is thought that a bloc composed by the main Catholic countries of
Europe, and supported by other Catholic countries in Latin America,
would increase the power of the Catholic Church to such an extent that,
within time, she would be able to weaken the influence of the Protestant
nations throughout the world. That the Vatican would prefer a defeated
Catholic France and Belgium to a triumphant Anglican England and Protestant
America, is a consideration which should not berejected offhand. It is
characteristic of Catholic policy of adjustment to surrounding conditions,
that while Cardinal Hinsley of London is thundering against the godless
enemies of Great Britain, in Italy prayers were recently ordered by two
Bishops for the victory of Italy in the near East, so that she may restore
the Holy Places to the Catholic Church and put Jerusalem under the protec-
tion of the Pope. All these facts and some others which could be quoted,
are a clear indication of the new tendencies and hopes of the Catholic
Church which must be very closely watched and efficiently curbed before
it is too late.
P.S. I see from the papers that M. Haye assured the pressmen at the
World'sFair that the "main efforts of Marshal Petain are to keep the
ideals of French democracy." It is a rather peculiar role to organize
Fifth Column and Fascism in France and to allege representing democracy
in America.
PS F
signature felepenonal
PSF: agriculture
DEMOCRATIC NATIONAL COMMITTEE
NATIONAL PRESS BUILDING
WASHINGTON
OFFICE OF
HENRY A. WALLACE
THE SEP 23 23 WHITE RECEIVED 9 HOUSE 53 AM "40
September 23, 1940
The President
The White House
Dear Mr. President:
I am hoping that between now and the election, in the
administration of the draft law, there will be no need for
taking action to investigate the resources of married men.
This kind of action could be magnified out of all proportion
to cause an extreme reaction among hundreds of thousands of
young married men.
Respectfully yours
Ha E Wallace
Wallace
by mt
Dictated by Mr. Wallace but
signed in his absence