Volume 187, May – May 3, 1939

DIARY Book 187 May 1 - May 3, 1939 - A - Book Page Alcohol Revision of Treasury policy with regard to specially denatured alcohol in anti-freeze preparations - 5/3/39 187 360 Annenberg, Moe See Tax Evasion Appointments and Resignations Assistant Secretary of Treasury: Myers (Governor, Farm Credit Administration) recommends (1) Hill; (2) Esgate; et cetera - 5/2/39 126 Automobile Industry See Business Conditions - B - Banking Legislation Conference; present: HMJr, McReynolds, Duffield, Foley, Gaston, Hanes, Bartelt, Delano, Upham - 5/2/39 176 a) Copy of HMJr's proposed letter (report on Brown bill) sent to Jones, Crowley, Eccles, Ransom, Hanes, Bell, Foley, and Delano for comment 183 Business Conditions Haas memorandum on situation for week ending 4/29/39 1 Automobile Industry: Seltzer report - 5/2/39 171 - C - China Memoranda - - 5/1/39 a) American motor trucks for China 83 b) Wood-oil transportation arrangements from China to United States 86 HMJr and General Watson discuss "good hard-working colonel to be placed in charge of all transportation" - 5/3/39 334,368 HMJr asks Collins (Procurement) to look over contract with Chinese Government on planes from United States - 5/3/39 342 HMJr, Chen, and Lochhead discuss invitation to American experts to visit China - 5/3/39 346 a) HMJr reports FDR's idea on dynamite factory Cochran, H. Merle Asked to return to United States for discussion 5/3/39. 302 a) HMJr discusses wife's illness - 5/3/39 338 Collectors of Internal Revenue See Internal Revenue Collectors Colombia Treasury and State Department comment on FDR's proposed letter to Spruille Braden - 5/3/39 310 Regraded Unclassified - D - Book Page Donham, Wallace B. (Harvard University) For resund of experience, see page 69 - E - Elwell, Fayette H. (University of Wisconsin) For resume of experience, see page 82 - F - Farm Credit Administration For Myers' recommendations for Assistant Secretaryship, see Appointments and Resignations Financing, Government Home Owners Loan Corporation: Bell and HMJr discuss contemplated financing - - 5/2/39 187 174 Foreign Exchange See War Conditions: Foreign Exchange - G - Germany See War Conditions Gold Shipments See War Conditions: Great Britain Gold Statistics HMJr discusses at 9:30 meeting confusion of figures as given out by Commerce, Federal Reserve Bank of New York, Federal Reserve Board, Treasury, et cetera - 5/2/39 139 Great Britain: See also War Conditions Lothian, Marquess of: Newly appointed British Ambassador to United States - Evaluating memorandum prepared in White's division - 5/1/39 93 Griffin, Clare E. (University of Michigan) For resume of experience, dee page 72 - H - Hancock, Glover C. (Washington and Lee University) For resume of experience, see page 81 Heath, Donald R. Visit planned to Budapest and to Bucharest - 5/1/37 47 Instructions to proceed to Poland, Roumania, and Hungary cancelled - Heath's letter after returning from United States to Berlin - 5/2/39 285 Heflin, Thomas J. Desire to be Internal Revenue Collector at Birmingham discussed at group meeting - - 5/2/39 141,327 Home Owners Loan Corporation See Financing, Government Regraded Unclassified - I - Book Page Internal Revenue Collectors Hanes asks HMJr for instructions concerning proposed investigation into business connections - 5/2/39 187 120 a) Discussed at 9:30 meeting - 5/2/39 142 - J - Jackson, J. Hugh (Stanford University) For resumé of experience, see page 79 - L - Lothian, Marquess of See Great Britain Lyon, Leverett S. (Brookings Institute) For resume of experience, see page 65 - M - McClung, Reid L. (University of Southern California) For resume of experience, see page 78 McCrea, Roswell C. (Columbia University) For resumé of experience, see page 67 Morey, Lloyd (University of Illinois) For resume of experience, see page 71 Munitions Board See War Conditions - N - National Munitions Control Board See War Conditions Neutrality of United States See War Conditions Nicaragua Conference concerning financial assistance between Treasury, State, Export-Import Bank, and Reconstruction Finance Corporation - 5/3/39 385 - o - Olsen, Herluf V. (Dartmouth College) For resume of experience, see page 68 Regraded Unclassified - P - Book Page Panama Canal HMJr transmits to Woodring opinion against issuing additional bonds - 5/3/39 187 354 Poland Conference concerning certain financial arrangements between representatives of Treasury, State, Export-Import Bank, and Reconstruction Finance Corporation - 5/3/39 403 - R - Raper, Charles Lee (Syracuse University) For resume of experience, see page BO Reorganization Proposed Executive Order transferring to heads of executive departments power of appointing of all officers and employees now vested by law in subordinate officers thereof 188 a) Foley comment thereon - 5/2/39 186 Revenue Revision Hanes' draft (approximately 5/1/39) 204 Draft with FDR's suggestions - 5/2/39 217 Draft with FIR's suggestions - HMJr's copy. 250 HAJr reports to Hanes result of conference with FDR - 5/3/39 355 Rhinebeck, New York, Post Office Dedication of - 5/1/39 12,52 a) HMJr's remarks 14 Ruggles, Clyde 0. - Ohio State University (former) For resume of experience, see page 75 - S - Scovill, Hiram T. (University of Illinois) For resume of experience, see page 70 Spain Conference concerning certain financial arrangements between representatives of Treasury, State, Export-Import Bank, and Reconstruction Finance Corporation - 5/3/39 403 Spencer, William H. (University of Chicago) For resume of experience, see page 66 Statements by HMJr At dedication of Rhinebeck, New York, Post Office - 5/1/39. 14 Stevenson, Russell A. (University of Minnesota) For resume of experience, see page 73 Surplus Commodities Corporation Wheat: Haas memorandum: "Causes of the recent upturn in wheat prices" - 5/3/39 306 (See also Book 188, pages 425,435) Regraded Unclassified - T - Book Page Tax Evasion Annenberg, Moe: Foley tells HMJr Justice will recommend that case be presented to Grand Jury so that sufficient facts to prove criminal intent will be uncovered - 5/2/39 187 145 Taxation See Revenue Revision Tippetts, Charles S. (University of Pittsburgh) For resume of experience, see page 77 - U - U.S.S.R. Jones and HMJr discuss swapping cotton for manganese - 5/3/39 345 - W - War Conditions Germany: Heath's letter on situation after returning from United States to Berlin - 5/2/39 285 American Embassy, Berlin, gives report on "voluntary" levies applied on practically all branches of German industry as still being chief source of German export subsidy fund - 5/2/39 289 Great Britain: Foreign Exchange: Foley memorandum giving comparison of Treasury proposed order and British order - 5/2/39 110 Gold Shipments: war risk insurance as worked out by Lloyd's Underwriters bringing in force the so-called pool agreement - 5/2/39 112,303 Loans to Treasuries of foreign countries not in default on payments to United States: Foley memorandum - 5/2/39 99 Munitions Control Board (National): Foley memorandum in regard to HMJr's duties as member - 5/2/39 100 Neutrality of United States: Foley memorandum on consultations with State, War, and Navy concerning neutrality proclamations - 5/3/39 299 Weidler, Walter C. (Ohio State University) For resume of experience, see page 74 Wheat For causes of upturn in prices, see Surplus Commodities Willits, Joseph H. - University of Pennsylvania (former) For resume of experience, see page 76 Works Project Administration Peoples' memorandum on engineers assigned to duty with House subcommittee making investigation of activities - - 5/3/39 371 Regraded Unclassified TREASURY DEPARTMENT AM 1 INTER OFFICE COMMUNICATION CONFIDENTIAL DATE May 1, 1939 TO Secretary Morgenthau FROM Mr. Haas BA. Subject: The Business Situation, Week ending April 29, 1939. Conclusions (1) The current business outlook remains clouded by European uncertainties, which have not been diminished by Hitler's Friday speech. On top of this, the coal strike obscures the underlying business trend, and has begun to affect new orders and activity in the steel industry. (2) The basic business trend strengthened during March, as ovidenced by an upturn in our index of basic demand and a further improvement in the seasonally-adjusted index of consumer buying. (3) It is becoming increasingly evident that the present economy of Great Britain (and of various other countries) can be regarded in no other light than as that of a war economy, with its various probable consequences. British steel opera- tions are at practical capacity, and some steel business has been diverted to this country. Conscription will still further reduce the available labor supply and increase the demand for uniform material and army equipment. Interest rates in Great Britain have advanced sharply; an inflationary type of armament financing is already in effect; and prices of staple commodities in Great Britain have begun to rise, affecting prices in this country. (4) Sharply increased buying of copper and cotton textiles this week, as raw material prices were raised, lends some confirmation to our feeling that the present low inventory situation might conceivably bring on a general buying wave in the event of actual hostilities, rather than a contraction of demand. Regraded Unclassified 2 Secretary Morgenthau - 2 The situation today A firm basic business foundation kept industrial produe- tion in this country relatively steady throughout the first quarter of the year, in the face of unsettling developments abroad. During April, however, some reduction in business activity has been brought about by the more serious situation in Europe and by the bituminous coal strike which has been under way for four weeks. While an actual war in Europe might change the picture somewhat, present indications are that the recent weakening in business activity should not be of long duration. Basic busi- ness indices continue to improve. The demand for war materials is beginning to offer support to commodity prices, with some immediate reflection in domestic buying. While the coal strike continues a depressing factor, its eventual settlement will bring an upturn in business. The European war preparations, particularly in England, appear to be entering a stage where they are beginning to offer support to business activity in this country. In this connec- tion, the present economy of Great Britain BO far as its effect on world prices and business is concerned must be regarded as being on 8. well-advanced war basis, perhaps approximating in various aspects that of about December 1914, several months after the beginning of the World War. In Chart 1 we show a comparison of trends in selected economic indices in Great Britain during the years 1914 through 1921. It will be noted that employment (reflected in unemploy- ment figures) dropped immediately after the outbreak of war, then turned sharply upward. Commodity prices started to rise immediately while stock and bond prices began a declining trend. Interest rates rose sharply at the beginning of the war period. Somewhat similar trends are already developing. Employ- ment in Great Britain, after dropping seasonally in January (See Chart 2), made one of the most rapid gains in recent years during March, as work was rushed on armament and home defense projects. Steel operations have increased to virtual capacity, the output during March being only 8. shade under the all-time record established in November 1937. Recently some orders for finished steel products have been diverted to the United States and Canada, an order for 100,000 tons (equalling about two-thirds of the recent weekly averages for U. S. Steel Corporation) being placed in this country during the past week. Regraded Unclassified 3 Secretary Morgenthau - 3 Interest rates in Great Britain have risen sharply, the rate on 3-months' bank bills showing & marked and unsessonal rise between the middle of March and the middle of April. Bond prices and stock prices have followed & declining trend, as during the World War. Commodity price rise significant Perhaps most important from our standpoint is the recent improvement in British commodity prices. Reuter's index of sensitive commodity prices in Great Britain has for some weeks been rising against the trend of prices here. (See Chart 3.) As an individual example, sugar prices in Great Britain have recently risen to the peak established during the speculative boom of early 1937, while the price in the United States has risen only moderately. Among the factors operating to raise prices abroad has been an increased demand for spot commodities as 8 reserve against the possibility of war. The upturn in sugar prices in Great Britain is credited chiefly to heavy buying by Switzer- land, Norway, Finland and other Continental countries that are taking precautions against an outbreak of hostilities. A second source of price strength has been in the increased demand for actual materials used in the defense and rearmament program. A pronounced upturn in the price of jute, for example, has been partly due to the demand for this material for sandbage used in air raid precautions. Inflationary aspects of the British Govern- ment's deficit financing program have doubtless contributed to an increase in speculative buying. Official estimates suggest that during the current year the Government will have to borrow $1,500,000,000 and perhaps more, (roughly comparable to & deficit of about $4,500,000,000 for the United States). More recently the price improvement abroad has been com- municated to raw material prices in this country. Price trends for a selected group of staple commodities quoted on our futures exchanges, where price influences are most quickly reflected, are shown in the lower section of Chart 3. The upturn in futures prices for wheat, tin, cotton and silk have been particularly pronounced. Improved statistical situations and other influences have accounted in part for the improvement in some commodity prices. Price rise stimulates domestic buying The strengthening of prices this week has been accompanied by more active buying in various commodity markets than had been seen in many weeks. In the textile market, sales of Regraded Unclassified 4 Secretary Morgenthau - 4 cotton gray goods increased sharply, and print cloth sales this week of about 35,000,000 yards are said to be more than double the current production. Sheetings and ootton yarns have been in active demand at rising prices. Buyers of copper, who had shown little interest in the market when copper could be bought for around 10 cents, were surprised into action this week by & mark-up to 10th cents by one large producer. This unexpected price boost, according to trade reports, released the biggest flood of buying orders since last October. Increased buying in other raw material markets has also been reported. It is possible that this may foreshadow a general buying wave in the event of actual hostilities, in place of the contraction of demand for many commodities which followed the outbreak of the World War. The current low level of inventories in most lines seems to favor such a development. The World War brought an immediate heavy export demand for various American foodstuffs, wheat and beef (as shown in Chart 4) being of outstanding importance. Exports of wheat increased in 1915 to more than 400 per cent of the 1912-1913 volume, and exports of beef to more than 500 per cent of that level. Exports of cotton and of lard, which made up a. con- siderable portion of total agricultural exports, declined during the war period, largely because of the elimination of the German market. Steel exports expanded markedly during the later war years. Imports of staple commodities into the United States showed little immediate increase, but expanded during 1916 and 1917. As shown in the lower section of Chart 4, our imports of wool rose to nearly 300 per cent of the 1912-1913 volume, while imports of rubber, coffee, sugar, tin and hides increased moderately. The steel situation Steel orders have apparently not held the substantial gain reported last week. Orders reported by the U. 8. Steel Corporation have declined to 37 per cent of capacity, as contrasted with the previous weekly figure of 53 per cent. Steel operations have also declined to 48.6 per cent of capacity Regraded Unclassified 5 Secretary Morgenthau - 5 from 50.9 per cent last week. Some trade reports, on the other hand, indicate that steel orders during the past week were about unchanged from the previous week, and mention that the trend of orders is levelling out rather than deolin- ing. Structural steel and tin plate buying continues satis- factory. There seems little doubt that the effects of the coal strike have extended this week to the steel industry, and have been & factor in the decline in steel operations, 8.5 well as having some effect on new orders. The Iron Age men- tions that "some of the restriction on steel orders has been caused by the coal situation", particularly in regard to new orders from eastern railroads that are suffering large losses in revenue because of the strike. While a settlement of the strike may be expected to pro- vide some immediate stimulus to business, & further decline in activity in various industries may be expected if present plans of labor leaders for extending the strike immediately to other coal areas are carried out. A sharp decline in retail sales in such cities as Pittsburgh and Cleveland appears to reflect an extension of the effects of the strike to sections outside the coal areas. Basic situation more favorable Further improvement in the basic business situation dur- ing March is indicated by an upturn in our index of "basie demand", which has returned to the high level of last November, and by a further rise in our seasonally-adjusted index of con- sumer buying to a new high since early 1937. (See Chart 5.) Our composite index of new orders rose during March by about the usual seasonal amount. Since industrial production, meanwhile, has been relatively low, an "upward pull" has been created which should operate to raise the business level as soon as retarding influences are removed. Current business news The New York Times index for the week ended April 22 rose fractionally to 86.4, from 86.0 the previous week. Significant movements among the components included substantial upturns in Regraded Inclassified 6 Secretary Morgenthau - 6 the indices of cotton mill activity and lumber production. For the following week, preliminary data indicate moderate declines in the adjusted figures for automobile production and steel production. Automobile output this week declined more than season- ally to 86,640 units, which compares with 90,280 units last week. The conservative production policy followed by the industry this month has apparently held production down to the level of retail sales. Lower steel orders have reduced our weekly new orders index to a new low for recent weeks, despite an upturn in textile orders and some improvement in orders for goods other than steel and textiles. SELECTED ECONOMIC INDICES IN U.K. 1914 - 1921 1914 1915 1916 1917 1918 1919 1920 1921 PER PER CENT CENT (inverted) (inverted) 4. Unesployment Percentages* 4. (inverted scale) 8 8 - - - - 1954 - im 12 12 16 16 20 20 200 200 Wholesale Commodity Prices** 180 180 160 160 140 140 120 120 100 100 80 80 60 3 POUNDS POUNDS BILLIONS BILLIONS Industrial Stock Prices AGGREGATE MARKET VALUE 3.2 OF 387 STOCKS 3.2 MARKET CLOSED 3.0 3.0 2.8 2.8 2.6 2.6 2.4 2.4 PER CENT PER CENT (INVERTED) (INVERTED) Tields of 25% Consols I 3.5 MARKET 3.5 CLOSED 4.0 4.0 4.5 4.5 5.0 5.0 5.5 5.5 PER PER CENT CENT Rate or 3 Month Bank Billet 7 7 5 6 5 5 4 4. 3 3 2 2 - o o 1914 1915 1916 1917 1918 1919 1920 1921 *TeEnTY-FIRST ABSTRACT or LABOR STATISTICS TTHE BANKER'S MAGAZINE # **TNE ECONOMIST STATISTICAL ABSTRACT or U.S. Chart 1 Office of the Secretary of the Treasury 7 - di - - - Regraded FO 118 Chart 2 8 EMPLOYMENT IN U.K. AND U.S. 1929 1931 1933 1935 1937 1939 ERSONS PERSONS ILLIONS MILLIONS RTED SCALE) Unemployment in U.K. (INVERTED SCALE) MINISTRY of LABOR 1.2 (INVERTED SCALE) 1.2 1.6 1.6 2.0 2.0 2.4 2.4 2.8 2.8 3.2 3.2 1929 1931 1933 1935 1937 1939 PERSONS PERSONS BILLIONS WILLIONS Employment in U.S. 38 B.L.S. 38 (excluding agriculture) 36 36 34 34 32 32 30 30 28 28 26 26 24 24 1929 1931 1933 1935 1937 1939 Office of the Secretary of the Treasury Givise of - and - FO - 123 PRICES OF SELECTED COMMODITIES, DAILY MARCH APRIL MAY PER PER FEBRUARY CENT CENT (DOW-JONES) REUTER COMMODITY PRICE INDEX IN U.S. AND U.K. MOODY 49 147 COMMODITY FUTURES (DOW-JONES) 1924 -'26 = foo 48 144 47 141 MOODY'S INDCX IN U.S. DEC. 31, 1931 = 100 46 138 45 135 REUTER'S INDEX IN U.K. SEPT. 18, 1931 = 100 44 132 7 14 21 28 5 12 19 26 5 12 19 26 -2 9 16 23 30 CENTS CENTS PER su. PER LB. (UNEAT) (COTTON) 72 8.6 COTTON 68 8.2 MHEAT* CENTS DOLLARS PER LB, PER LB. (WOOL) (SILE) 56 2.40 92 2.30 88 2.20 SILK 84 2.10 80 2.00 WOOL 76 1.90 (TIN) CENTS PER LB. COPPER (COPPER) 48 9.6 46 9.2 TIN* 44 8.8 42 8.4 (HIDES) (SUBBER) 12.0 16.0 RUBBER 11.5 16.0 11.0 15.2 10.5 14.4 HIDES 10.0 13.6 9.5 12.8 5 12 19 26 5 12 19 26 2 9 16 23 30 7 14 21 28 FEBRUARY MARCH APRIL MAY 1939 *ALL MAY FUTURES, EXCEPT HIDES, BIGI ARE JUNE FUTURES Chart 3 given of the Secretary of the F - 176 I [ 1 I Regraded Unclassified Chart 4 EXPORTS AND IMPORTS OF 10 SELECTED BASIC COMMODITIES, 1912 TO 1919 1912 - 1913 AVERAGE - 100 PER 1912 1914 1916 1918 PEN CENT CENT 900 Exports, Physical Volume MR., 1818 900 800 800 BEEF 700 M DECLARED JULY 1914 700 600 600 500 U.S. ESTIMA Rah APRIL 1917 500 400 400 WHEAT 300 300 200 200 LARD 100 100 900 900 800 800 STEEL 700 700 600 600 500 500 400 400 300 300 200 COPPER 200 100 100 COTTON o o 1912 1914 1916 1918 400 400 300 Imports, Physical Volume 300 WOOL 200 200 COFFEE 100 100 SUGAR 400 400 300 300 RUBBER 200 200 100 100 TIN HIDES o 1912 0 1914 1916 1918 . 1912-1918, FISCAL YEARS; 1919 CALENDAR YEAR. Office of the Secretary of the Treasury I 1 1 I 1 C 268 Regraded Uncla ssified WITH INDUSTRIAL PRODUCTION 1923 - '25 a 100, SEASONALLY ADJUSTED* PER PER CENT CENT 120 120 INDUSTRIAL PRODUCTION, F.R.B. 110 110 100 ESTIMATED BASIC DEMAND) 100 90 90 80 80 70 1935 1936 1937 1938 70 1939 PER CENT PER CENT 120 120 INDUSTRIAL PRODUCTION, F.R.B. 110 110 100 CONSUMER BUYING 100 90 90 80 80 70 1935 1936 1937 1938 70 1939 PER CENT (NEW ORDERS) PER CENT (IND. PROD.) 160 135 NEW ORDERS 1936 = 100, UNADJUSTED 140 125 120 115 100 105 80 95 INDUSTRIAL PRODUCTION, F.R.B.) 60 as 40 1935 1936 1937 75 1938 1939 9 EXCEPT NEW ORDERS 11 Office of the Secretary of the Trumy Debies of - of Regraded Unclassifie 12 DEDICATION OF RHINEBECK POST OFFICE Menday, May 1, 1959 Arrival of the President 3:30 pollo Invocation Secretary Morgenthau turns Post Office over to Postmaster General .2 minutes Postmaster General accepts building. o2 minutes Introduction of the President by Mr. B. Re Frost, Chairman, Reception Come Platoon, Band, Ruffles, Star Spangled Banner Speech by the President Introduction of the Crown Prince & Princess by the President Platoon, Band, Ruffles, Danish National Air Corner-Stone Laying Music Benediction 14 Starling Regraded Unclassified 13 FUTURE ENDADEMENTS of THE PRESIDENT- Review to April e. 1930 April 15 - Gridires Disner 19 - Open ball - Washington, 5:00 P.M. 6:00 p.m. Address to National Purcle Conference, East Room (national hostrup) 20 - 8:30 P.R. American Seciety of Newspaper Editors. 21 and 22 - Charlottesville, Va. - Franklin, Jr. 25. address. Redcross. 26 - 10:00 a.m. Address White House Conference on Children in a Democracy. 26 - 26 - Leave for Ryde Park as - At Hyde Park - Receives Norwagian Crown Prisee and Princess 30 - Norwagians leave in a.m. The President motors to Fair - speech - return to Hyde Park by 6:00 Delho 6:00 p.m. - Crown Prince & Primess of Demark at Hyde Park. May 1 - Dames leave. Dedicate newPost Office at Rhinebook. 3 - Return to Washington (?) 4 - Chamber of Comeres Dinser 8 - President of Nicarague at White lieuse. 6 - - . - leaves White House. n. , - Prime Minister de Valore at White House. 8 - - - . - leaves White House. 10 - 10:00 p.m. Radio broadeast dedicating nov building of the Museum of Modern Ave, N. T. June 8 - King and Queen of England at White House 9 - King and Queen of England leave White House. The President leaves white House for Eyde Park 10 - King and Queen of Raglend at Ryde Park 11 - . . - - - leave Hyde Park 18 - West Point, N.Y. as - Conference of at liyde Park (Mrs. Receivelt to set if the President not there). Nov. 11 - Virginia Military Institute. - speech, Regraded Unclassified 14 Mr. President, Mr. Postmaster General, Citizens of Rhinebeck and Dutchess County and Guests: It 18 my privilege as Secretary of the Treasury to be able to speak for the builders of this structure that is at once new and historic and to deliver it into your care, Mr. Postmaster General, for the use of the people of this community. Among the 2,700 and more Post Office buildings completed and occupied throughout this country this new building at Rhinebeck stands apart as one to which the President of the United States paid special attention when the design of the new building was in contemplation, and in which he continues to evidence great interest. 15 - 2 - The President's researches into all phases of the history of Dutchess County has resulted in his being thoroughly informed about the architectural as well as other traditions of this area. And in the case of this Post Office his interest was so great that he actually went to the remains of the old Beacon House and examined the stone work, and later when experimental panels of stone work were erected at the site of this new Post Office building he took the time to assure himself that the stone work of the new building would practically be a replica of that of the old Beacon House. And before work was actually started on the building he even personally looked over the drawings and specifications for the new Post Office. Regraded 16 - 3 - It is thus that the Post Office in this community has a distinction which is entirely unique in the history of Post Office buildings throughout the country. Of the thirty-three men who have been President of the United States only two of them have manifested a sufficient amount of practical interest in architecture to take part in the design of buildings. It so happens that both of these men were Democrats -- the first one was Thomas Jefferson and the second one is Franklin Delano Roosevelt. During the time that I have been Secretary of the Treasury hundreds of Federal buildings have been constructed by my Department, and I take great personal interest in following the course of these 17 - 4 - projects so far as my other duties will permit. As a resident of Dutchess County I am proud of this new building. It is my hope that the historical associations that cluster around this new Post Office building may lead the people of Rhinebeck to preserve in their buildings the old Dutch character that 1s so thoroughly entrenched in this part of the country. --000-- 18 Mr. President, Mr. Postmaster General, Citizens of Rhinebeck and Dutchess County and Guests: It is my privilege as Secretary of the Treasury to be able to speak for the builders of this structure that 18 at once new and historic and to deliver it into your care, Mr. Postmaster General, for the use of the people of this community. Among the 2,700 and more Post Office buildings completed and occupied throughout this country this new building at Rhinebeck stands apart as one to which the President of the United States paid special attention when the design of the new building was in contemplation, and in which he continues to evidence great interest. Regraded Unclassified 19 - 2 - The President's researches into all phases of the history of Dutchess County has resulted in his being thoroughly informed about the architectural as well as other traditions of this area. And in the case of this Post Office his interest was 80 great that he actually went to the remains of the old Beacon House and examined the stone work, and later when experimental panels of stone work were erected at the site of this new Post Office building he took the time to assure himself that the stone work of the new building would practically be a replica of that of the old Beacon House. And before work was actually started on the building he even personally looked over the drawings and specifications for the new Post Office. Regraded Unclassified 20 - 3 - It is thus that the Post Office in this community has a distinction which 18 entirely unique in the history of Post Office buildings throughout the country. of the thirty-three men who have been President of the United States only two of them have manifested a sufficient amount of practical interest in architecture to take part in the design of buildings. It 80 happens that both of these men were Democrats -- the first one was Thomas Jefferson and the second one 18 Franklin Delano Roosevelt. During the time that I have been Secretary of the Treasury hundreds of Federal buildings have been constructed by my Department, and I take great personal interest in following the course of these Regraded Unclassified 21 - s - projects 80 far as my other duties will permit. As a resident of Dutchess County I am proud of this new building. It is my hope that the historical associations that cluster around this new Post Office building may lead the people of Rhinebeck to preserve in their buildings the old Dutch character that 18 80 thoroughly entrenched in this part of the country. --000-- Regraded Unclassified 22 NOTES REGARDING THE NEW POST OFFICE BUILDING AT RHINEBECK, NEW YORK Among the 2700 and more Post Office buildings completed and occupied throughout this country this new building at Rhinebeck stands apart as one to which the President of the United States paid special attention when the design of the new building was in contemplation, and in which he continues to evidence great interest. The President's researches into all phases of the history of Dutchess County has resulted in his being thoroughly informed about the architectural as well as other traditions of this area. And in the case of this Post Of- fice his interest was so great that he actually went to the remains of the old Beacon House and examined the stone work, and later when experimental panels of stone work were erected at the site of this new Post Office build- ing he took the time to assure himself that the stone work of the new building would practically be a replica of that of the old Beacon House. And before work was actually started on the building he even personally looked over the drawings and specifications for the new Post Office. It is thus that the Post Office in this community has a distinction which is entirely unique in the history of Post Office buildings throughout the country. Of the thirty-three men who have been President of the United States only two of them have manifested & sufficient amount of practical interest in architecture to take part in the design of buildings. It so happens that both of these men were democrats-the first one was Thomas Jefferson and the second one is Franklin Delano Roosevelt. Regraded Unclassified - 2 - 23 During the time that I have been Secretary of the Treasury hundreds of Federal buildings have been constructed by my Department, and I take great personal interest in following the course of these projects 80 far as my other duties will permit. As a resident of Dutchess County I am proud of this new building and it is my hope that the historical associations that cluster around this new Post Office building may lead the people of Rhinebeck to grasp the opportunity given this community to center attention on this portion of the town to the end that any further growth or alterations might preserve the old Dutch character that is so thoroughly entrenched in this part of the country. 4-25-39 Degraded Inclassified 24 used then material for speech as Themeted INTRODUCTION On March 4, 1933 there were approximately 310 contracts in force with architects in private practice, the contracts having been made during the fiscal years prior to that date. Sixty-six contracts with private architects were made during the fiscal year of 1934 as & result of prior commit- ments or obligations. All of these contracts were made by direct selection of architects from all sections of the country. In many in- stances the firms chosen were capable of producing well- designed buildings without dolay but due to their unfamiliarity with the requirements of Federal buildings a considerable de- lay ensued in the placing of the work under construction con- tract. The fundamental objective of the Emergency Construction Program was speed in the construction of buildings and it be- came necessary to organize a large and efficient technical force in the Office of the Supervising Architect in order that the benefits of the program might be made effective immediately. This necessitated the elimination of the services of private architects. In order to enhance the quality of archite ctural design twenty-one architects of recognized standing from different sections of the country were brought to Washington in a con- sulting capacity and a Board of Design was created and four outstanding architects of national reputation were appointed to pass upon the entire production of the Supervising Archi- tect's Office. Many Federal buildings recently completed re- flect the fresh viewpoint and contribution of these consultants and the work of the Board. Although the cost of accomplishing the program under this procedure was considerably less than the cost by any other method the principal gain was the starting of construction over the entire nation without delay. The magnitude of the work may be judged by the following statistics: UInclassified -2- 25 AUTHORIZED CONSTRUCTION MARCH 1934 TO DATE Number Authorized Cost Post Office Buildings: 2119 $291,236,019 Other Buildings, Including: 345 174,357,359 Court Houses Custom Houses Federal Office Buildings Marine Hospitals Quarantine Stations Appraisers Stores Border Inspection Stations Coast Guard Air Stations Federal Projects in the District of Columbia Total Buildings: 2464 $465,593,378 Number Amount Work Completed to Date: Post Offices 1360 $150,115,492 Other Buildings: 223 111,986,462 1583 Buildings Under Construction: 262,101,954 Post Offices 190 29,172,236 Other Buildings 80 35,577,607 Work yet to be placed under 64,749843 Contract: Buildings 611 138,741,581 - With the rapid completion of the Emergency Construction Pro- grams it is now possible to give consideration to securing archi- tectural services as the result of competition among all quali- fied architects and thus afford an equal opportunity to the mem- bers of the profession to participate in the design of Federal buildings. A trial competition was inaugurated in May of 1938 for the selection of designs for small Post Offices followed in July by a national competition for the Post Office and Court House at Covington, Kentucky. After consideration of the result obtained it has been detcrmined to hold a series of regional competitions, the first announcement having been made on March 19. Eleven regions have been designated with the object of limiting the competition to the architects located within each region and thus obtain the benefit of their familiarity with conditions applicable to the proposed building. Regraded Unclassified 26 -3- There will be announced about May 1 the first of this series of competitions and it is hoped that the regional competitions will offer a logical and practicable solution of the employment of private architects for the design of the more important public buildings. In October, 1934 the Secretary created a Painting and Sculpture Section (now Section of Fine Arts) in the Procure- ment Division for the purpose of securing appropriate embell- ishment of Public Buildings with murals and sculpture and at the same time spreading the benefits of the Emergency Construc- tion Program to painters and sculptors. A sum approximating 1% of the total allotment for each building is usually applied to the cost of this decoration. Artists have been selected in many instances by the holding of open competitions. In 93 competitions 5,623 artists have competed, submitting 11,905 sketches. During the period from October, 1934 to date, 724 artists have been awarded contracts involving an expenditure of approx- imately $1,060,000. At the present time eight competitions are being conducted involving 131 artists with an intended obligation of $175,000. 27 Copies of Rhinebeck Post office speech- may 1st 28 Mr. President, Mr. Postmaster General, Citizens of Rhinebeck and of Dutchess County and Honored Guests: It is & privilege for me, as the representative of the builders of this attractive structure, to deliver it to you, Mr. Postmaster General, for the use of the people of this community. Dedication of this postoffice marks the completion of 1,583 buildings constructed by the Treasury Department since I became Secretary. All of these structures share with this new Rhinebeck postoffice the distinction that their design and their construction have been influenced by the desire and the determination not only to build buildings of maximum usefulness but to give them a character and a dignity that will be a genuine contribution to the advancement of architecture in Regraded Unclassified 29 - 2 - the communities in which they have been built. In every step of the building program we have had that objective in mind. I wish to pay tribute to Admiral Peoples, head of Procurement Division, to Louis Simon, the Supervising Architect, and to Rudolph Stanley-Brown, architect of this building, for their loyalty to this objective. In the early days of the program there had to be another objective. That aim was speed, as it was highly desirable to make the greatest possible contribution to the relief of unemployment. Happily we were able to combine the two objectives. We met the requirement of speed in the planning of buildings by organizing a large and efficient technical force in the office of the Supervising Architect. No recruited Regraded Unclassified 30 - 3 - a fine force of able architects and draftsmen who entered with the greatest enthusiasm into this inspiring work. The results of their efforts are shown in hundreds of structures in many states which have been widely commended as high types of public architecture. Later, in order to enhance the quality of architectural design and its suitability to its surroundings we brought to Washington as part of our staff twenty-one architects of recognized standing from different sections of the country. In addition, a board of design consisting of four outstanding architects of National reputation was created to pass upon the entire production of the Supervising Architect's office. Many fine buildings recently Regraded Unclassified 31 - 4 - completed reflect the fresh viewpoint and the artistic judgment of these consultants. This procedure accelerated construction; it resulted in substantial savings and it also produced a high quality of architecture and con- struction. We desired something more, however. We have regarded the construction of public buildings as a truly National building program and we wished to stimulate the contribution of the best architectural concepts and talents from all over the country, wherever they might be found. We wished to make of the Federal program a general stimulant to the best in architecture, by giving all architects an equal opportunity to participate in the design of Federal buildings. Regraded Unclassified 32 - 5 - To do that we have inaugurated a system of competitions for the best designs. A trial competition was inaugurated in May of 1938 for the selection of designs for small postoffices, and this was followed in July by a National competition for the postoffice and courthouse at Covington, Kentucky. After consideration of the results obtained in these first competitions it was determined to hold & series of regional competitions, the first announcement of this intention having been made on March 19 of this year. Eleven regions have been designated, with the object of limiting the competition to the architects located within each region and thus to obtain the benefit of their familierity with the conditions that apply to the proposed building. Regraded Unclassified 33 - 6 - The first of this series of competitions is now being held. It is hoped that these regional competitions will enlist the abilities of private architects in the design of the more important public buildings. Believing that a public building should not only serve practical uses but should also gratify the aesthetic sense of the community, we added in 1934 a new element in our public building program by creating the Section of Fine Arts, It is this Section which made possible the excellent mural being done in this building by Olin Dows in collaboration with In the ideas we have put into effect in the public building program we have followed the lead of Regraded Unclassified 34 - 7 - one whose enthusiastic interest in the project of building beautiful and serviceable and appropriate public buildings never flags. We have had in the history of the United States two Presidents who were sufficiently interested in architecture to suggest features of the design of public buildings -- and both of them with the happiest results. One was Thomas Jefferson. The other, who is with us today, is Franklin Delano Roosevelt. Regraded Unclassified 35 Mr. President, Mr. Postmaster General, Citizens of Rhinebeck and of Dutchess County and Monored Guests: It 1a & privilege for me, as the representative of the builders of this attractive structure, to deliver it to you, Mr. Postmaster General, for the use of the people of this community. Dedication of this postoffice marks the completion of 1,588 buildings constructed by the Treasury Department since I became Secretary. All of these structures share with this new Rhinebeck postoffice the distinction that their design and their construction have been influenced by the desire and the determination not only to build buildings of maximum usefulness but to give them a character and a dignity that will be & genuine contribution to the advancement of architecture in Unclassified 36 - 2 - the communities in which they have been built. In every step of the building program we have had that objective in mind. I wish to pay tribute to Admiral Peoples, head of Procurement Division, to Louis Simon, the Supervising Architect, and to Rudolph Stanley-Brown, architect of this building, for their loyalty to this objective. In the early days of the program there had to be another objective. That aim was speed, as it was highly desirable to make the greatest possible contribution to the relief of unemployment. Happily we were able to combine the two objectives. We met the requirement of speed in the planning of buildings by organizing a large and efficient technical force in the office of the Supervising Architect. We recruited Regraded Unclassified 37 - 8 - a fine force of able architects and draftsmen who entered with the greatest enthusiasm into this inspiring work. The results of their efforts are shown in hundreds of structures in many states which have been widely commended as high types of public architecture. Later, in order to enhance the quality of architectural design and its suitability to its surroundings we brought to Washington as part of our staff twenty-one architects of recognized standing from different sections of the country. In addition, & board of design consisting of four outstanding architects of National reputation was created to pass upon the entire production of the Supervising Architect's office. Many fine buildings recently Regraded Unclassifi 38 4 - completed reflect the fresh viewpoint and the artistic judgment of these consultants. This procedure accelerated construction; it resulted in substantial savings and it also produced a high quality of architecture and con- struction. We desired something more, however. We have regarded the construction of public buildings as a truly National building program and we wished to stimulate the contribution of the best architectural concepts and talents from all over the country, wherever they might be found. We wished to make of the Federal program a general stimulant to the best in architecture, by giving all architects an equal opportunity to participate in the design of Federal buildings. Regraded Unclassified 39 - 5 - To do that we have inaugurated a system of competitions for the best designs. A trial competition was insugurated in May of 1938 for the selection of designs for small postoffices, and this was followed in July by a National competition for the postoffice and courthouse at Covington, Kentucky. After consideration of the results obtained in these first competitions it was determined to hold 8 series of regional competitions, the first announcement of this intention having been made on March 19 of this year. Eleven regions have been designated, with the object of limiting the competition to the architects located within each region and thus to obtain the benefit of their familiarity with the conditions that apply to the proposed building. Regraded Unclassified 40 - 6 - The first of this series of competitions is now being held. It is hoped that these regional competitions will enlist the abilities of private architects in the design of the more important public buildings. Believing that & public building should not only serve practical uses but should also gratify the aesthetic sense of the community, we added in 1934 a new element in our public building program by creating the Section of Fine Arts. It is this Section which made possible the excellent mural being done in this building by Olin Dows in collaboration with In the ideas we have put into effect in the public building program we have followed the lead of Regraded Unclassified 41 - 7 - one whose enthusiastic interest in the project of building beautiful and serviceable and appropriate public buildings never flags. We have had in the history of the United States two Presidents who were sufficiently interested in architecture to suggest features of the design of public buildings -- and both of them with the happiest results. One was Thomas Jefferson. The other, who is with us today, is Franklin Delano Roosevelt. Regraded Unclassified 42 Beturn to Boom $ By 1. 1980. Dear Mr. is the absence of the Secretary I an asknowledging your verify letter dated April m. 1950. Year comments will be brought to M. Margenthau's attention as seem M be returns so the office. Sincerely yours, H.S. Klets. Private Secretary. 1 Mr. Allen tiporess, First View President, Federal Receive Thank of New Tork, New York, Ber York. is to HF ONF/dee Regraded Unclassified TREASURY DEPARTMENT 43 INTER OFFICE COMMUNICATION DATE May 1, 1939 TO Secretary Morgenthan FROM W. H. Hadley Review of the Government Market Week ending April 29, 1939 The government security market was firm and quiet the first part of the week but turned strong and moderately active in the latter part. Gains of 5 to 14/32nds were recorded in intermediate and long Treasury bonds. Demand and buying was in evidence both from insurance companies and various banks in New York and outside. However, supply of issues vas limited and the continued heavy pressure of excess funds forced prices to new highs. The average price of Treasury bonds of over 12 years natur- ity or callable date closed the week 3/8ths of a point above the previous week and 3 1/2 points above levels at the time of the December financing, when the present upward trend began. The rise from this latter date has been one of the sharpest and most persistent upward movements on record in spite of unsettling foreign news, Treasury notes were mixed, the shorter issues moving off 2 and 3/32nds and the longest issues moving up 1 and 2/32nds. Guaranteed issues were 1 to 8/32nds higher, with the exception of the H. 0. L. c. bonds callable in August, which were down 5/32nds as a result of price adjustment in anticipation of some refunding operation. Dealers' Portfolios The only sizeable change in dealers' holdings during the past week vas an increase of about $10 million in Treasury notes maturing over Regraded Unclassified -2- 44 1 year. However, this increase was somewhat counter-balanced by & re- duction of about $6 million in notes maturing under 1 year. Total holdings were up a little more than $2 million. Dealers' Portfolios (in millions) Week ended Week ended April 22 April 29 Net Change Treasury bonds 21.9 24.8 4 2.9 Treasury notes (1 year) 21.9 16,2 - 5.7 Treasury notes (1-5 yrs.) 21.6 32.0 410.4 Treasury bills 10.1 8.0 - 2.1 H. 0. L. C. bonds 22.7 23.0 + 0.3 F. ?. M. C. bonds 5.6 2.2 - 3.4 103.8 106.2 + 2.4 Dealers' trading volume was slightly larger than the previous week, averaging about $130 million daily, of which about $100 million was in Treasury bonds. New Security Issues New corporate bond offerings included two rather sizeable items. The first, a $52 million offering of long term bonds by Gatineau Power Company of Canada, moved very slowly at prices 1 to 1 1/4 points below the offering price of 98 1/4. This issue continued sluggish throughout the week. On the other hand, a $50 million issue of long term bonds by National Steel Corporation vas very well received and quickly sold at prices up to 3/4 of a point above the offering price of 99, A $15 million block of serial notes, which were also well received, accompanied National Steel's bond offer. Corporate Bond Market The corporate bond market was dull and not very active. Medium and lower grade issues lost about 1/4 point on average while high grade issues showed very slight gains. Moody's BAA bond price average, however, is about Regraded Unclassified 45 1 1/4 points above the low point reached in April subsequent to the Italian seisure of Albania, while MAA bonds are now about 5/8ths of & point above prices at that time. Treasury Investment Accounts During the week a total of $33,250,700 bonds and notes were sold in the New York market for account of Postal Savings and F. D. I. 0. of this total, $13,477,000 bonds were sold for Postal Savings while $15,510,000 bonds and $4,263,700 notes were sold for F. D. I. c. The breakdown of this week's sales by accounts and issues is shown below. These transactions clean up the amount of 1941 and 1940-43 bonds held in these two accounts. How- ever, a total of about $18,500,000 3-3/8% Treasury bonds of 1941-43 are still held in these two accounts and could be sold in the market. For account of Postal Savings: 3-1/4% Treasury bonds of 1941 $ 7,549,000 3-3/8% # и и 1940-43 .... 5,928,000 Total $ 13,477,000 For account of P. D. I. C.: 1-5/8% Treasury notes of 3/15/40 $ 513,700 1-1/2% M 6/15/40 3,750,000 3-1/48 Treasury bonds of 1941 6,557,000 3-3/8% If 1940-43 8,953,000 Total $ 19,773,700 In addition to these sales, there was a purchase in the market of $400,000 2-3/4% Treasury bonds of 1960-65 for account of U. 8. Housing Authority. Reinvestment of funds from the sale of bonds were made in Special 2's for account of Postal Savings to the amount of $10,000,000. Regraded Unclassified 46 Federal Reserve System Account Transactions for Federal Reserve System account were limited to purchase of $37,518,000 Treasury bills to complete the replacement of last week's $46,018,000 maturing Treasury bills and an additional purchase of $6,653,000 various July bills in anticipation of this week's bill matur- ity of $39,830,000. Regraded Unclassified OFFICIAL COMMUNICATIONS TO 47 THE SECRETARY OF STATE WASHINGTON, D.C. DEPARTMENT OF STATE WASHINGTON PERSONAL May 1, 1939 MEMORANDUM FOR MR. LOCHHEAD With reference to Mr. Moffat's memorandum of March 15, 1939, transmitting the text of three personal letters written respectively to the Ambassador at Warsaw and the Ministers at Budapest and Bucharest with regard to the activities of Mr. Donald R. Heath, there are transmitted herewith for Mr. Lochhead's records, copy of a reply dated April 4 from the American Minister in Budapest, and of April 6 from the American Minister at Bucharest. Enclosures: Letter from American Minister, Budapest, dated April 4, 1939; Letter from American Minister, Bucharest, dated April 6, 1939. Department of State BURE Eu DIVISION 48 ENCLOSURE TO Letter drafted 5/1 ADDRESSED TO Mr. Lockhead U.S. GOVERNMENT PRINTING OFFICE 1-1000 49 COPY LEGATION OF THE UNITED STATES OF AMERICA Bucharest, Rumania, April 6, 1939. Dear Pierrepont: I take pleasure in acknowledging the receipt of your letter of March 13th regarding the impending visit of Donald Heath. I assure you that he will be given a warm welcome. Both Fred Hibbard and Shelly Mille know him. At one time he served with Fred Hibbard in Warsaw. As you may know, Heath began his career in Bucharest in 1920. Ae of possible interest there 16 attached hereto a list of people we have already thought of as useful contacts for him. I hope that he speaks fluent French as without it he would be seriously handicapped. I shall be glad to get any hints he could give us, also as to how best to keep the Treasury supplied with Just the kind of information it requires. With every good wish, As ever yours, FRANK GUNTHER Enclosure Jay Pierrepont Moffat, Esquire, Chief, Division of European Affairs, Department of State, Washington. 50 COPY 1. Mr. Pow of the Bank of Rumania Ltd. 2. Victor Badulescu of the National Bank of Rumania. 3. Victor Slavescu, "financial brains" of the old Liberal Party now Minister of Armament; for a time President of the Union of Industrialists. 4. D. Jordan, Secretary General of the Ministry of Finance and "understudy" of Constantinescu. 5. Virgil Magearu, "financial mind" of the old National Peasant Party; now Professor at the Commercial Academy. 6. Prof. Raducanu, Rector of the Commercial Academy. 7. Christian Pennescu Kertsch, former head of the Bucharest Chamber of Commerce; now Manager of Leonida. 8. George Cretzianu, brother of Alexander, Manager of Banca Romaneasca. 9. Nicky Chrissoveloni, Manager of Banca Chrissoveloni. 10. Minister Bujoiu. 11. Former Minister Gigurtu, head of Credit Minier. 12. Cesar Popescu, head of Distributia. 13. Malaxa. 51 COPY AMERICAN LEGATION Budapest, April 4, 1939. Dear Mr. Moffat, I have your letter of March 13 with reference to Mr. Donald Heath who will be down this way sometime in the next few months. I hope he will let us know well in advance of the date of his arrival 80 that we can be sure that the proper people are available. We certainly will be glad to do anything we can and also have his help in connection with financial reporting. With warmest regards, Yours sincerely, JOHN F. MONTGOMERY 52 DEDICATION OF THE NEW POST OFFICE or RHINEBECK, NEW YORK MONDAY, MAY 1, 1939 BY THE PRESIDENT OF THE UNITED STATES Regraded Unclassified HE new Rhinebeck Post Office is an authentic reproduction T of the first house of any consequence built in Rhinebeck, having been erected in 1700 by Hendrick Kip on a patent of land from the Dutch government. All of the stone used in the con- struction of this new building was taken from the ruins of the original house and from the adjacent Beckman lands. Colonel Henry Beekman, Jr. became owner of the house in 1726 and improved and enlarged it at that time. He lived in it until his death in 1776. His daughter, Margaret, married Rob- ert R. Livingston, the grandson of Robert Livingston, original patentee of lands adjoining on the north. They were the parents of ten children, whose names are familiar to every student of American history, The Beekmans were leaders in the Continental cause before and during the Revolution. Their house was the gathering place of notables from every section for conferences to formulate plans in the interest of the Colonies. It is interesting to note that the old Beekman House wel- comed the first congregation to hear a sermon preached in the Town of Rhinebeck. At the old Dutch church at four-thirty o'clock- Henry Beekman's grave and Memorial Tablets of the Beekman and Livingston families, Chancellor Livingston Chap- ter, Daughters of the American Revolution directing. Frank D. Blanchard, minister. Address: "The Tradition of Beekman House" by Rev. Regraded Unclassified PROGRAM INVOCATION - REV. HENRY W. SHERWOOD, D.D. PRESENTATION OF NEW POST OFFICE, THE HONORABLE HENRY MORGENTHAU, JR. Secretary of the Treasury ACCEPTANCE OF NEW POST OFFICE, THE HONORABLE JAMES A. FARLEY Postmaster General ADDRESS - THE PRESIDENT OF THE UNITED STATES LAYING OF THE CORNER-STONE, HIS ROYAL HIGHNESS, CROWN PRINCE FREDERIK of Denmark and Iceland SELECTION - 18TH INFANTRY BAND BENEDICTION . - REV. FATHER JAMES M. KANE Regraded Unclassified THE PARADE XEDIUM I Marshal-Willace W. Foster Aider-Mounted State Troopers U.S. M. A. Band Colors and Color Guard Town and Village Officials and Members of Clergy Detachment of 18th Infantry Danish Girls - Seandinavian-American Society SECTION 2 Communder-O. T. Yager Aides-Lea L. Stewart, Roger Doyle Miss Virginia Corcoran Miss Helen Wright Legion Drum Corps American Legiun Posts of Dutchess County American Legion Auxiliary J Commander-Sergt. John Roosa Aide-Ferd Gildersleeve, Fred Miller Rhinebeck Band Detachment of Deputy Sheriffs Rhinebeck Fite Department, Rhinecliff Fire Department, Red Hook Fin Department, Hyde Park Reseue Hook and Ladder Company, Steatsburg Fire Department, Tivoli Fire Department SICTION 4 Commander-Edward Pottenburgh Aidrs-Clyde Swendsen, Steward Goodrich Mo. Deborah Dows Miss Janet Livingston Rhinebeck High School Band Rombeur Munt Club, Northwestern Dutchess Rod and Gun Club, Rhine- beck High School, Northern Dutchess Hospital, Rhinebeck Grange; Hub Garage, Thomas F. Moran & Son, Inc.; Red Hook Grange, Rock City Grange Best Gay-1901 Oldsmobile Sterms 1 Commander-Walter Schad Aide-Tim Yager, Robert Bourne Wassie State School Drum Corps Boy Scouts & Commander-Miss Muriel Shelley Aide-Min Naney Bourne, Irma Heuchele Girl Scouts Regraded Unclassifie 53 DEDICATION OF THE NEW POST OFFICE are RHINEBECK, NEW YORK MONDAY, MAY 1, 1939 BY THE PRESIDENT OF THE UNITED STATES Regraded Unclassified T HE new Rhinebeck Post Office is an authentic reproduction of the first house of any consequence built in Rhinebeck, having been crected in 1700 by Hendrick Kip on a patent of land from the Dutch government. All of the stone used in the con- struction of this new building was taken from the ruins of the original house and from the adjacent Beekman lands. Colonel Henry Beekman, Jr. became owner of the house in 1726 and improved and enlarged it at that time. He lived in it until his death in 1776. His daughter, Margaret, married Rob- ert R. Livingston, the grandson of Robert Livingston, original patentee of lands adjoining on the north. They were the parents of ten children, whose names are familiar to every student of American history. The Beekmans were leaders in the Continental cause before and during the Revolution. Their house was the gathering place of notables from every section for conferences to formulate plans in the interest of the Colonies. It is interesting to note that the old Beekman House wel- comed the first congregation to hear a sermon preached in the Town of Rhinebeck. At the old Dutch church at four-thirty o'clock- Henry Beekman's grave and Memorial Tablets of the Beekman and Livingston families, Chancellor Livingston Chap- ter, Daughters of the American Revolution directing. Address: "The Tradition of Beekman House" by Rev. Frank D. Blanchard, minister. Regraded Unclassifi PROGRAM INVOCATION - REV. HENRY W. SHERWOOD, D.D. PRESENTATION OF NEW POST OFFICE, THE HONORABLE HENRY MORGENTHAU, JR. Secretary of the Treasury ACCEPTANCE OF NEW POST OFFICE, THE HONORABLE JAMES A. FARLEY Postmaster General ADDRESS - THE PRESIDENT OF THE UNITED STATES LAYING OF THE CORNER-STONE, HIS ROYAL HIGHNESS, CROWN PRINCE FREDERIK of Denmark and Iceland SELECTION - - 18TH INFANTRY BAND BENEDICTION - - REV. FATHER JAMES M. KANE Regraded Unclassified THE PARADE SECTION k Marshal-Wallace W. Foster Aides-Mounted State Troopers U.S. M. A. Band Colors and Color Guard Town and Village Officials and Members of Clergy Detachment of 1Sth Infantry Danih Girls - Scandinavian-American Society SECTION 2 Commander-O. T. Yager Aido-Lea L. Stewart, Roger Doyle Mos Virginia Corcuran Miss Helen Wright Legion Drum Carps American Legion Posts of Dutchess County American Legion Anxiliary SISTION 3 Commander-Sergt. John Room Aides-Ferd Gildersleeve, Fred Miller Rhinebeck Band Detachment of Deputy Sheriffs Rhineheck Tire Department, Rhineclift Fire Department, Red Hook Fire Department. Hyde Park Reseue Hook and Ladder Company, Stantsburg Fire Department, Tivali Fire Department SECTION 4 Commander-Edward Portenburgh Aido-Clede Swendsen, Steward Goodrich Mrs. Deburah Dows Miss Janet Livingston Rhinebeck High School Band Rombour Hunt Club, Northwestern Dutchess Rod and Gun Club, Rhine- beck High School, Northern Dutchess Hospital, Rhinebeck Grange, Hub Garage, Thomas F. Moran & Son, Inc.: Red Hook Grange, Rock City Grange Rent Gay-1901 Oldsmobile SECTION 5 Commander-Walter Schad Aide-Tim Yager, Robert Bourne Wassic State School Drum Corps Boy Scouts Herms 6 Commander-Miss Muriel Shelley Aidro-Miss Nancy Hourney Irma Heuchele Girl Scouts Regraded Unclassi d 54 DEDICATION OF THE NEW POST OFFICE RHINEBECK, NEW YORK MONDAY, MAY 1, 1939 BY THE PRESIDENT OF THE UNITED STATES Regraded Unclassified T HE new Rhinebeck Post Office is an authentic reproduction of the first house of any consequence built in Rhinebeck, having been erected in 1700 by Hendrick Kip on a patent of land from the Dutch government. All of the stone used in the con- struction of this new building was taken from the ruins of the original house and from the adjacent Beekman lands. Colonel Henry Beekman, Jr. became owner of the house in 1726 and improved and enlarged it at that time, He lived in it until his death in 1776. His daughter, Margaret, married Rob- ert R. Livingston, the grandson of Robert Livingston, original patentee of lands adjoining on the north. They were the parents of ten children, whose names are familiar to every student of American history. The Beekmans were leaders in the Continental cause before and during the Revolution. Their house was the gathering place of notables from every section for conferences to formulate plans in the interest of the Colonies. It is interesting to note that the old Beekman House wel- comed the first congregation to hear a sermon preached in the Town of Rhinebeck. At the old Dutch church at four-thirty o'clock- Henry Beekman's grave and Memorial Tablets of the Beekman and Livingston families, Chancellor Livingston Chap- ter, Daughters of the American Revolution directing. Address: "The Tradition of Beekman House" by Rev. Frank D. Blanchard, minister. Regraded Unclassified PROGRAM INVOCATION - REV. HENRY W. SHERWOOD, D.D. PRESENTATION OF NEW POST OFFICE, THE HONORABLE HENRY MORGENTHAU, JR. Secretary of the Treasury ACCEPTANCE OF NEW POST OFFICE, THE HONORABLE JAMES A. FARLEY Postmaster General ADDRESS . THE PRESIDENT OF THE UNITED STATES LAYING OF THE CORNER-STONE, HIS ROYAL HIGHNESS, CROWN PRINCE FREDERIK of Denmark and Iceland SELECTION - 18TH INFANTRY BAND BENEDICTION - - REV. FATHER JAMES M. KANE THE PARADE Victors 1 Marshal-Wallace W. Foster Aides-Mounted State Troopers U.S. M. A. Band Colors and Color Guard Town and Village Officials and Members of Clergy Detachment of 18th Infantry Danish Girls - -Scandinavian-American Society SECTION 2 Commander-O. T. Yager Aide-Lea L. Stewart, Roger Doyle Miss Virginia Corcoran Miss Helen Wright Legion Drum Corps American Legion Posts of Dutchess County American Legion Auxiliary SECTION 3 Commander-Sergt. John Roosa Aides-Ferd Gildersleeve, Fred Miller Rhinebeck Band Detachment of Deputy Sheriffs Rhindred Tip Department, Rhinocliff Fire Department, Red Hook Fire Department, Hyde Park Rescue Hook and Ladder Company, Staatsburg Fire Department, Tivoli Fire Department RECEIVED 4 Commander-Edward Pottenburgh Aide-Cirde Swendsen, Steward Goodrich Mrs. Deborah Dows Miss Janet Livingston Rhinebeck High School Band Mombout Hunt Club, Northwestern Dutchess Rod and Gun Club, Rhine- beck High School, Northern Dutchess Hospital, Rhinebeck Grange, Hub Garage, Thomas F. Moran & Son, Inc.; Red Hook Grange, Rock City Grange Best Gay-1901 Oldsmobile Section 5 Commander-Walter Schad Aide-Tim Yager, Roberr Bourne Wassic State School Drum Corps Boy Scouts SECTION N Commander-Miss. Muriel Shelley Aide-Miss Nancy Hourne, Irma Heuchele Girl Scouts Regraded Unclassifi 55 DEDICATION OF THE NEW POST OFFICE want ПГ RHINEBECK, NEW YORK MONDAY, MAY 1, 1939 BY THE PRESIDENT OF THE UNITED STATES Regraded Unclassified T HE new Rhinebeck Post Office is an authentic reproduction of the first house of any consequence built in Rhinebeck. having been erected in 1700 by Hendrick Kip on a patent of land from the Dutch government. All of the stone used in the con struction of this new building was taken from the ruins of the original house and from the adjacent Beekman lands. Colonel Henry Beekman, Jr. became owner of the house in 1726 and improved and enlarged it at that time. He lived in it until his death in 1776. His daughter, Margaret, married Rob- ert R. Livingaton, the grandson of Robert Livingston, original patentee of lands adjoining on the north. They were the parents of ten children, whose names are familiar to every student of American history. The Beekmans were leaders in the Continental cause before and during the Revolution. Their house was the gathering place of notables from every section for conferences to formulate plans in the interest of the Colonies. It is interesting to note that the old Beekman House wel- comed the first congregation to hear a sermon preached in the Town of Rhinebeck. 41 the old Dutch church at four-thirty o'clock- Henry Beekman's grave and Memorial Tablets of the Beekman and Livingston families, Chancellor Livingston Chap- ter, Daughters of the American Revolution directing. Address: "The Tradition of Beekman House" by Rev. Frank D. Blanchard, minister. Regraded Unclassifi PROGRAM INVOCATION - REV. HENRY W. SHERWOOD, D.D. PRESENTATION OF NEW POST OFFICE, THE HONORABLE HENRY MORGENTHAU, JR. Secretary of the Treasury ACCEPTANCE OF NEW POST OFFICE, THE HONORABLE JAMES A. FARLEY Postmaster General ADDRESS - THE PRESIDENT OF THE UNITED STATES LAYING OF THE CORNER-STONE, HIS ROYAL HIGHNESS, CROWN PRINCE FREDERIK of Denmark and Iceland SELECTION - - - 18TH INFANTRY BAND BENEDICTION - - REV. FATHER JAMES M. KANE Regraded Unclassified THE PARADE KFOTMM I Marihal-Wallace W. Foster Aides-Mounted State Troopers U.S. M.A. Band Colors and Color Guard Town and Village Officials and Members of Clergy Detachinent of 18th Infantry Danish Girls - Scandinavian-American Society SECTION 2 Commandet-O. T. Yager Aide-Les L. Stewart, Roger Doyle Miss Virginia Corcoran Miss Helen Wright Legion Drum Corps American Legion Posts of Durchess County American Legion Auxiliary sicros 1 Commander-Sergt. John Roosa Aider-Ford Gildersleeve, Fred Miller Rhinebeck Band Detachment of Deputy Sheriffs Fice Department, Rhinecliff Fire Department, Red Have Fire Department, Hyde Park Reseue Hook and Ladder Company, Staatsburg Fire Department. Tivoli Fire Department SINTION 4 Commander-Ealward Pottenburgh Aide-Clyde Swendsen, Steward Goodrich Mrs. Deborah Dows Miss Janet Livingston Rhinebeck High School Band Rombour Hunt Club, Northwestern Dutchess Rod and Gun Club, Rhine- bock High School, Northern Dutchess Hospital, Rhinebeck Grange, Hub Garage, Thomas F. Moran & Son, Inc.; Red Hook Grange, Rock City Grange Bert Gay-1901 Oldsmobile SECTION 5 Commander-Walter Schad Aide-Tim Yager, Robert Bourne Womale State School Drum Corps Boy Scouts ACTION 6 Andes-Miss Nuncy Bourne, Irms Heuchele Commander-Miss Muriel Shelley Gid Scouts Regraded Unclassifie 26 DEDICATION OF THE NEW POST OFFICE ПГ RHINEBECK, NEW YORK MONDAY, MAY 1, 1939 BY THE PRESIDENT OF THE UNITED STATES Regraded Unclassified T HE new Rhinebeck Post Office is an authentic reproduction of the first house of any consequence built in Rhinebeck, having been erected in 1700 by Hendrick Kip on a patent of land from the Dutch government. All of the stone used in the con struction of this new building was taken from the ruins of the original house and from the adjacent Beekman lands. Colonel Henry Beekman, Jr. became owner of the house in 1726 and improved and enlarged it at that time. He lived in it until his death in 1776, His daughter, Margaret, married Rob- ert R. Livingston, the grandson of Robert Livingston, original patentee of lands adjoining on the north. They were the parents of ten children, whose names are familiar to every student of American history. The Beckmans were leaders in the Continental cause before and during the Revolution. Their house was the gathering place of notables from every section for conferences to formulate plans in the interest of the Colonies. It is interesting to note that the old Beekman House wel- comed the first congregation to bear a sermon preached in the Town of Rhinebeck. A1 the old Dutch church al four-thirty o'clock- Henry Beekman's grave and Memorial Tablets of the Beckman and Livingston families, Chancellor Livingston Chap- ter, Daughters of the American Revolution directing. Address: "The Tradition of Beekman House" by Rev. Frank D. Blanchard, minister. Regraded Unclassifi PROGRAM INVOCATION - REV. HENRY W. SHERWOOD, D.D. PRESENTATION OF NEW POST OFFICE, THE HONORABLE HENRY MORGENTHAU, JR. Secretary of the Treasury ACCEPTANCE OF NEW POST OFFICE, THE HONORABLE JAMES A. FARLEY Postmaster General ADDRESS - THE PRESIDENT OF THE UNITED STATES LAYING OF THE CORNER-STONE, His ROYAL HIGHNESS, CROWN PRINCE FREDERIK of Denmark and Iceland SELECTION - - - 18TH INFANTRY BAND BENEDICTION . . REV. FATHER JAMES M. KANE Regraded Unclassified THE PARADE Secriox I Marshal-Wallace W. Foster Aide-Mounted State Troopers U.S. M. A. Band Colors and Color Guard Town and Village Officials and Members of Clergy Detachment of (8th Infuntry Danish Girls - Scandinavian-American Society SICTION : Commander-O. T. Yager Aido-La L, Stewart. Roger Doyle Miss Virginia Correoran Miss Helen Wright Legion Drum Corps American Legion Posts of Dutchess County American Legion Auxiliary SECTION 1 Commander-Sergt. John Roosa Aide-Ferd Gildersleeve, Fred Miller Rhinebeck Band Detachment of Deputy Sherifis Khinebeck Fire Department, Rhinecliff Fire Department, Red Hook Fire Department, Hyde Park Rescue Hook and Ladder Company, Steathurg Fue Department, Tivoli Fire Department SICTION 4 Commander-Edward Portenburgh Aide-Clyde Swendsen, Steward Goodrich Mrs. Deborah Dows Miss Janet Livingston Rhinebeck High School Band Rombout Hunt Club, Northwestern Dutchess Rod and Gua Club, Rhine- back High School, Northern Dutchess Hospital, Rhinebeck Grange, Hub Garage, Thomas F. Moran & San, Inc.; Red Hook Grange Rock City Grange Bert Gay-1901 Oldsmobile SECTION 5 Commander-Walter Schad Aides-Tim Yager, Robert Bourne Wassaie State School Drum Corps Boy Scouts OPETION 6 Commander-Miss Muriel Shelley Adre-Mins Nancy Bourne, Irma Heuchele Girl Scouts Regraded Unclassifi 57 DEDICATION OF THE NEW POST OFFICE MY n RHINEBECK, NEW YORK MONDAY, MAY 1, 1939 BY THE PRESIDENT OF THE UNITED STATES Regraded Unclassified T HE new Rhinebeck Post Office is an authentic reproduction of the first house of any consequence built in Rhinebeck, having been crected in 1700 by Hendrick Klp on a patent of land from the Dutch government. All of the stone used in the con- struction of this new building was taken from the ruins of the original house and from the adjacent Beckman lands. Colonel Henry Beekman, Jr. became owner of the house in 1726 and improved and enlarged it at that time, He lived in it until his death in 1776. His daughter, Margaret, married Rob- ert R. Livingston, the grandson of Robert Livingston, original patentee of lands adjoining on the north. They were the parents of ten children, whose names are familiar to every student of American history. The Beekmans were leaders in the Continental cause before and during the Revolution. Their house was the gathering place of notables from every section for conferences to formulate plans in the interest of the Colonies, It is interesting to note that the old Beekman House wel- corred the first congregation to hear a sermon preached in the Town of Rhinebeck. 11 the old Dutch church at four-thirty o'clock- Henry Beekman's grave and Memorial Tablets of the Beekman and Livingston families, Chancellor Livingston Chap- ter, Daughters of the American Revolution directing. Address: "The Tradition of Beekman House" by Rev. Frank D. Blanchard, minister. Regraded Unclassifi PROGRAM INVOCATION REV. HENRY W. SHERWOOD, D.D. PRESENTATION OF NEW POST OFFICE, THE HONORABLE HENRY MORGENTHAU, JR. Secretary of the Treasury ACCEPTANCE OF NEW POST OFFICE, THE HONORABLE JAMES A. FARLEY Postmaster General ADDRESS - THE PRESIDENT OF THE UNITED STATES LAYING OF THE CORNER-STONE, HIS ROYAL HIGHNESS, CROWN PRINCE FREDERIK of Denmark and Iceland SELECTION . . 18TH INFANTRY BAND BENEDICTION - - REV. FATHER JAMES M. KANE Regraded Unclassified THE PCUGHERXPSIN EAGLE-NEWS - MAY 8, 1939 58 More Than 5000 Attend Rhinebeck Postoffice Dedication Ceremonies postoffices of atereotyped design. Postmaster General Parkey describ- President Advises Village To ed the ceremony as the first in which both be and the Chief Execu- Use Early Dutch Colonial Live had participated. Honer Guard of Infantry The President arrived at the Architecture In Future acene accompanied by Mrs. Room- well, his mother, Mrs. Bara Delano Roomelt: Mr. James Rocervell Jr. bls daughter-in-law: and Mrs. Min- Prince Frederik of Denmark genthau. deveral aquada of infantry from Lays Cornerstone; Farley; the Fort Hamilton Anny post com- pelant an bener guard - the United States Military Academy benef of Morgenthau Speak West Point played a musical On the platform were Lacrs Del- soo, Rhinebeck, coustn of the Pres- (Special to The Eagle-News) ident; Mrs Tracy Down of this not lage, her son, Olin Dows. who will RHINEBECK, May |-President Roosevelt, the nation' paint murals for the new building: No, I "unlicensed architect," in dedicating the new postoffice and Rudolph Stanley-Brown, the here today looked askance upon "Victorian" architecture and architest The Rev. Henry W. Sherwood 01- advised residents of this village to copy the "early Dutch colo- year-old pastor of the Old Stone nial style" of the new postoffice and the adjoining Beekman Lutheran church. in his invocation Arms hotel. bid his audience to prize the 11b- The dedicatory ceremonies, featuring the President, two erties purchased at so great . cabinet members and an heir to the throne of Denmark, were cost." witnessed by upward of 5,000 persons. The ceremonies considerable Becretary of Morgenthau devoled his talk to the et- thoroughly intimate with the President, "introduced as your forts of the Procurement division in neighbor, setting the tone with his chatty address. stimulating & destre for architectur- In replacing most of Rhinebeck's Crown Prince Frederik of Den- al beauty in postoffices and he told present structures, the President mark, who Inkd the corneratone of how the department had started said, of the IL might "Colonial" be well atyle, to take heed the editice, and Princess Ingrid. an competitions with this objective in with mind. in- dented fronts. The present build- their participation to the program official guast, appeared to enjoy Mr Parks said this dedication ings, he said, are set too close to was unique in that both the Previ- the street and represent & type of greatly dent and the Secretary of the architecture "known es Victorian." The ceremonica closed M Presi- Treasury came from the same Declaring that this type of ar- dent Roosevell returned to time roa- county chilecture Ls "not copied very much trum to inform the gathering that these days." the President sald 11- the Prince WM now "a member la Accepts Building good standing of the unJon." 14ke He added that Rhintberk could is Victorian. referred to "with & amile" M the crowd, the President got & pride Relf on its DEW postomice 01 rhuckle out of the remark of Ben- it was one of only 300 being built Byde Park Nest? son R. Prost, master of ceremonies. in the country this year. The President's talk Will replete requesting that the crowd "please "It is a real pleasure to accept with good-natured banter. At coe clear Route 9 40 the President can this beautiful building." he and time be turned to Postmaster Clea- pass out." promising that it would be used eral Parley and Secretary of the Secretary Morgenihao word it was emelently and well Treasury Morgenthau and warned the 1,583rd postoffice built by the The President recounting his "If they want to keep their john" Treasury during bis term of office, trips as a boy through the town of they had better locate the next and added, Like the President, that Rhinebeck and noucing the old postoffice in Dutchess county at bis the government no longer has any stone houses with long sloping native Hyde Park. desire to continue constructing roats, told how bis liking for ALONE whitecture had developed Regraded Unclassified H) disclosed that he had been The milliary honor guard lined asked by the Postmaster General UP and the Army band played , whether he wanted a postoffice selection as the Prince sealed the Hyde Park but had told him that corneratone. Immediately following Rhinebeck needed a new building the ceremony . member of the more urgently. He Look note of the Weat Point ban/f Sergeant Carl A government's trend away from the Reberhold, who played under Prince of pattern which char- Frederik in 1917 the the Danish Liv- acterized the par: gradena Musik-Corps. stepped up to "The Procurement division of the His Highness to renew acquaint- Treasury." said the President, "has ances. sought to diversify design 10 that Benediction by the Rev. James our newer postomices do not look Kane closed the ceremony. after M though they had been turned hich President Roosevelt and his out by the dosen party entered the portoffice for a fiuggests Architecture hasty Inspection of the interior. Making his architectural admo- maions to the village. the Preaident Unprotected by Secret Service said: men M is the President, Postmaster May I make 1 suggestion to you, General Farley proved fair game my neighbors of Rhinebeck? At this to a. throng of admirers who strove crossroads of the village we now to shake his hand. Mr. Parley, to have the new postomce, the historic whom La attributed a phenomenal old Beekman Arms Inn. and Just memory for names and faces, VM heard to remark on several OCC&- beyond IL the old sione building on the northwest corner. sions, "Surely, I remember you. "As time, goes on some of the Other Ceremonies other on the other side After the dedication the of the buildings street and on this side willcellor Livingaton chapter of the Chan- be replaced by new buildings. These D.A.R. conducted historic cere- other buildings are substantial monies at the Dutch Reformed bil: are L too close to the church. After viewing the grave of - t might add that they Henry Beckman, Jr., the audience repre- MPILT which is not copied entered the church to-hear a talk very much today and WITH La referred 10 on "The Traditions of Beekman $115 . emne M Victorian In his House," by the Rev. Frank D. prepared speech be wrote that this Blanchard, pastor of the church. style was "not exactly in keeping Mr. Blanchard began his talk with what we now call good taste' with pointing out the pews which but allusion NM Cropped when the formerly belonged to families D- speech KM given. mous in Rhinebeck and American When replacements occur, the history. Discussing the Seekman President continued. "M they un- family and its descendants, the pas- coubtedly will in the years to come. tor praimed Robert R. Livingaton, . I hope that new buildings will be signer of the Doclaration of Inde- MR further back from the street pendence, delegate to the Conti- that they will conform more to the uental Congress. administerer of the Colonial type that you in Rhine- oath of office of George Washing- book will have here what in effect tan as president, chairman of the would be a large open aquare ad- Poughkeepale Constitution ratifice- mired for 16 beauty by all who Mon convention, and who the pastor DAM said was chiefly responsible for America's purchase of the Louisiana Introduces Prince territory from France at A cost of The President then introduced $15,000,000. Crown Prince Frederik M the latter :ook up the troxel used in laying The pastor pointed out tablets and portraits on the walls of the the cornersione The Prince was church commemorating the Wustri- warmly applauded by the crowd. ous Beekmans. Posted against the and a group of young women from pulpit was a. list of families who the village attired in Danish cos- were "part of the Craditions of :umes came to the fore during the Beckman house." In the list of ceremony. some 200 names were many familier still laking an active part in the life of Dutchess county. Regraded Unclassified 60 May 14, 1900. Dear Mr. Moores Thank you very much for your letter of May 2nd, which enclosed the exples of the program which you had been se good as to obtain is accord- ance with m request. I as very glad to have those, and also so ... the copy of the Magle News which described the dedication coromation. Thank you also for your word of approxiation is regard to w own part in the event. I as glad to welcome you as a citizen of Datebase County. Sincerely, (Signed) H. Moventhau. Jr. Mr. William s. Moore, Ocastruction Nogineer, Field Force, Public Buildings Branch, Presurement Division, Bee York. GRF/des Regraded Unclassified 61 May 26, 1989. Dear Mr. Moores Thank you very such for your letter of May 2nd, which enclosed the copies of the programs which you had been se good as to obtain in accord- asee with my request. 1 an very glad to have these, and also to ⑉ the copy of the Foughkeepsie Ragle News which described the dedication coremonies. Thank you also for your word of appreciation in regard to w own part in the event. I an glad to welcome you as a citizen of Dutchess County. Sincerely, (Signed) H. Morgenthau, Jr. Mr. William J. Moore, Construction Engineer, Field Force, Public Buildings Branch, Presurement Division, Poughkeepsie, You York. GEF/dbs Regraded Unclassified May 16, 1989. 62 Tear Mr. Moeres Thank you very such for your letter of May 2nd, which enclosed the copies of the programs which you had been no good as to obtain is accord- ande with my request. I an very glad to have these, and also to see the copy of the Foughkeepsie Ragle News which described the dedication coremnies. Thank you also for your word of approciation in regard to my own part in the event. I am glad to welsome you as a citizen of Datchese County. Sincerely, (Signed) H. Morgenthau, Jr. Mr. William s. Moore, Construction Field Force, Public Buildings Branch, Presurement Division, Bene York. GEF/dbs Regraded Unclassified 63 TREASURY DEPARTMENT PROCUREMENT DIVISION PUBLIC BUILDINGS BRANCH OFFICE OF CONSTRUCTION ENGINEER FIELD FORCE in Poughkeepsie, New York. pCs. May 2, 1939 Honorable Henry Morgenthau Jr the Secretary of the Treasury Treasury Department washington, D.C. Dear Mr Secretary: AS requested by you at the Rhinebeck Dedication Ceremonies yesterday I was able to secure the inclosed programs of the ceremonies. I am also inclosing a copy of this mornings Poughkeepsie Eagle News as I believe you would be greatly interested in it. The citizens of Rhinebeck I believe are very proud of the Honor bestowed upon them on yesterdays occasion, may I as one of the new citizens of Dutchess County congratulate you Mr Secretary on the great interest you have shown and given to the County. Respectfully yours, William J. Moore Construction Engineer. Institution, Name Brookings Institute Leverett S. Lyon Chicago William H. Spencer Columbia Roswell C. McCrea Dartmouth Herluf V. Olsen Harvard Wallace B. Donham Illinois Hiram T. Scovill Illinois Lloyd Morey Michigan Clare E. Griffin Minnesota Russell A. Stevenson Ohio State Walter C.Weidler Ohio State (former) Clyde 0. Ruggles Pennsylvania (former) Joseph H. Willits Pittsburgh Charles S. Tippetts Southern California Reid S. McClung Stanford J. Hugh Jackson Syracuse Charles Lee Raper Washington & Lee Glover D. Hancock Wisconsin Fayette H. Elwell TIME ORDER OF ESTABLISHMENT OF 50 COLLEGIATE SCHOOLS OF BUSINESS Number of Years Established (es of 1939) o IO 20 30 40 50 60 University of Pennsylvania [1882] University of Charge (1894) University of Caldene (1099) University of Wiscomen (1900) Dertnouth College (vroof New Fork University (1900) Washington and Lee University [1904] Harnard University [1908] University of Denver [1908] Northweview University (1908) University of Pittsburgh (1908) Manquettie University [1910] University of Georgia (veriz) Berten University (1912) University of Missouri [1914] University of Oregon (1914) Tulena University [1994] University of (1915) Olve State University (PPIS) University of Utah (ma) Columbia University print Washington University [1917] University of Washington (1917) Temple University (1918) College of City of New York grain] University of Concinnati (1919) University of Nebreska (1919) University of Alabama (1919) University of North Carolina [1919] University of Minnesota [PRIN] System University (1919) Letigh University [19:9] Indians University (1920) University of Vegine (1920) Southern Mathodist University (1900) University of Kantachy (1939) University of Section California pass State University of lows University of Tenas (1927) University of Calorado (verse University of Othersma (PRID) Miami University (1423) University of North Debote (1934) University of Kensen (1934) University of Mahigan (1924) I 1 1 I University of Adams [PRIN] University of Male Stattard University (1927) State University (1129) 65 LEVERETT S. LYON Formerly, Dean, School of Commerce and Finance, Washington University. At Present, Executive Vice President, Brookings Institute, Washington, D. C. Born: December 14, 1885, - Sollitt, Illinois. Beloit College 1906-07 Ph.B. Univ. of Chicago 1910 LIB Chicago, Kent College of Law 1915 AM Univ. of Chicago 1919 Ph.D If e If 1921 8, Edward Payson and Charlotte (Rose) 1.; n. Lucille Norton of Lockport, n., June 26, 1915; children: Richard Norton, David Mansfield. Head dept. civic science, Joliet Twp. Righ Sch., 1910-14, 1915-16; admitted to n. bar, 1916; asst. in economics, 1916-17, instr. 1917-19, asst. prof., 1919-23, asso. prof., 1923, U. of Chicago; dean Sch. Commerce and Finance, prof. economics and head of dept., 1923-25, Washington U.; prof. economics, Robert Brookings Grad. Sch. of Economics and Government, 1925-29; mem. research staff and dir. ednl. activities and public relations of the Brookings Institution, 1929-32, exec. v.p., since 1932; dep. asst. adminstr. for trade practice policy, NRA summer 1934. U. S. del. to the International Congress on Business Education, Amsterdam, 1929, London, 1932. Editorial asst., U.S. Food Administrn., World War. Mem. Am, Economic Asan., Am. Statistical Ausn., American Marketing Assn. (pres. 1933), Phi Kappa Psi (nat. pres. 1936-38), Signa Delta Rho, Phi Delta Phi, Beta Gamma Sigma, Alpha Kappa Psi. Clubs: Cosmos, Chevy Chase (Washington); Quadrangle (Chicago). Author: Elemente of Debating, 1913; Eight Lessons (in Bulletin of National and Community Life), 1917; A Survey of Commercial Education in the Public High Schools of the United States, 1919; A Functional Approach to Social Economic Data, 1920; Education for Business, 1922, 3d edit., 1931; Making a Living, 1926; Salesmen in Marketing Strategy, 1926; Hand-to-Mouth Buy- ing, 1929; Some Trends in the Marketing of Canned Foods, 1930; Advertising Allowances, 1932; The Economics of Free Deals, 1933; A Preliminary Analysis for a Program of Economic Education, 1937; Joint Author: Our Economic Organization, 1921; Business Cases and Problems, 1925; Vocational Readings, 1927; ABC of the NRA, 1934; The National Recovery Administration, 1935; The Economics of Open Price Systems, 1936. Joint Editor: Textbooks in the Social Studies (11 vols.). Contbr. to professional and other jours. Homer Persimmon Tree Road, Cabin John, Md. Regraded Unclassified Office: 722 Jackson Place, Washington, D. C. 66 WILLIAM E. SPENCER Dean, School of Commerce and Administration, University of Chicago. Born: April 1, 1888, - Anniston, Alabama. BS Birmingham (Ala.) College 1907 Ph.B University of Chicago 1913 J.D. If # If 1913 S. James Wood and Loulou Evans (Morris) S.; n. Serena Atchison of Gower, Mo., March 20, 1920; children: Elizabeth Rutledge, John Atchison. Instr. in English, Birmingham Coll., 1907-08, in Latin, 1909-11; asst. in polit. science, U. of Chicago, 1914-15; prof. law, Drake U., 1915-16; instr. in business law, U. of Chicago, 1916- 19, asst. prof. business law, 1919-22, asso. prof. 1922-23, prof. since 1923, also asst. to dean of Sch. of Commerce and Administration, 1920-22, asst. dean, 1922-23, dean since 1924, sec. dept. of economics, 1927-28, dir. Inst. of Meat Packing, 1923-26; chmn. Chicago Regional Labor Board, 1934-35; Chmn. Univ. Broadcasting Council since 1935. Capt. Ordnance Depart- ment, U.S.A., in charge ordnance supply, U. of Chicago, later at Camp Hancock, Augusta, Ga., World War. Mem. Delta Chi, P1 Ganma Mu and Omicron Delta Kappa. Democrat. Methodist. Clubs: Rotary, Union League, Quadrangle. Author: Law and Business (3 vols.), 1921-22; A Textbook on Law and Business, 1929; Collective Bargaining under Section 7(a) of the National Industrial Recovery Act, 1935; The National Labor Relations Act, 1935. Editor: Materials for the Study of Business. Home: 9361 Longwood Drive, Chicago, Illinois. 67 ROSWELL C. McCREA Columbia University (Dean, School of Business.) Born: July 30, 1876, - Norristown, Pa. AB Haverford 1897 AM Cornell 1900 Ph.D Univ. of Pa. 1901 LLD Columbia 1929 8. William Henry Harrison and Fredericka (Frankfurter) M.; n. Marian L. Grater of Norristown, Pa., June 19, 1901; children: Edith G., Winston, H. Thompson. Acting head dept. history and civics, Eastern, m. State Normal School, 1901-02; instr. economics, Trinity College, 1902-03; prof. economics and sociology, Bowdoin College, 1903-07; asso, dir. New York School of Philanthropy, 1907-11; prof. economics, U. of Pa., Sept. 1911-16, and dean Wharton School of Finance and Commerce, 1912-16; prof. economics, School of Business, Columbia, since July 1, 1916, dean School of Business since July 1, 1932. Civilian com- missioner on conscientious objectors, War Dept., 1918; dir. commercial examinations, Chamber Commerce State of New York since Feb. 1919. In joint charge of economic survey of New York Regional Plan, 1922-1928. Pres. Am. Assn. of Coll. Schools of Business, 1924-25; v.p. Acad. Polit. Science, 1930 -; mem. Phi Beta Kappa, Phi Gamma Delta, Beta Gamma Signa (grand pres. 1925-30). Clubs Century. Author: The Humane Movement, 1910. Editor of Am. Business Series (Henry Holt & Co.). Writer on economic and social subjects, mainly in tech. publs. Home: 35 Claremont Avenue, New York, New York. 68 HERLUF V. OLSEN Dean, Amos Tuck School, Dartmouth College. Born: August 2, 1899, - Omaha, Nebraska. BS Dartmouth College 1922 Graduate Student, Univ. of Copenhagen 1922-23 If If If " Chicago 1923-25 S. Ole Clausen and Karen (Anderson) O.; m. Elspeth Morton Duncan of Brantford, Ont., Can., April 3, 1926; children: Herluf Vagn, Charlotte Foster Duncan. Fellow of Scandinavian-Am. Foundation, 1922-23; fellow, later asst., in dept. of economics, U. of Chicago, 1923-25; instr. in economics, U. of Del., 1925-26; asst. prof., 1926-28, asso. prof. and acting chmm. dept. of economics, 1928-29; sec. and asst. prof. of business statistics, Amos Tuck Sch., Dartmouth Coll., 1929-37, asst. dean, 1930-37, prof. of business statis- tics and dean since 1937. Served with S.A.T.C., 1918. Mem. Am. Econ. Assn., Am. Assn. of Collegiate Schs. of Business, Phi Gamma Delta. Club: Graduate (Hanover, N. H.). Contbr. to jours. Home: 4 Dana Road, Hanover, New Hampshire. Regraded Unclassified 69 WALLACE B. DONHAM Dean, Graduate School of Business Administration, Harvard University. Bornr October 26, 1877, - Rockland, Mass. AB Harvard 1898 LLB If 1901 8. George E. and Sarah A. (Studley) D.; m. Mabel Higgins of Cambridge, Mass. April 7, 1903. Admitted to bar, 1901, and entered legal dept. of Old Colony Trust Co., v.p. same, 1906-19; dean Grad. Sch. of Business Administration, Harvard, since 1919. Dir. Great Island Corp. Clubs: Harvard, Union. Home: Dean's House, Soldiers' Field, Boston, Mass. 70 HIRAM I. SCOVILL Head, Dept. of Business Organization and Operation, University of Illinois. Born: February 22, 1885, - Lead River, Illinois. AB Univ. of Illinois 1908 8. William Preston and Thresa Josephine (Thompson) S.; m. Edith Eliza Stewart of Urbana, n., Aug. 31, 1912; children: William Stewart, Mary Josephine, Janet Ruth. With McGregor, Chase & Co., pub. accountants, Chicago, 1908-11, Deloitte, Plender, Griffiths & Co., 1911-13; prof. accountancy and head dept. business orgn. and operation, U. of m., since Sept. 1913; spl. accountant m. Pub. Utilities Comm., summer 1914; auditor for constructing contractor, Camp, McClellan, Ala., 1918. Mem. Am. Econ. Assn., Am. Assn. Univ. Instrs. in Accounting (pres. 1920), n. Soc. Certified Pub. Accountants (president 1937-38), Nat. Assn. Cost Accoun- tants, Phi Beta Kappa, Kappa Delta Rho, Beta Garma Sigma (nat. pres.), Alpha Kappa Psi, Beta Alpha Psi (nat. pres.), Am. Inst. Accountants. Awarded gold medal by n. Soc. C.P.A. for passing examination with highest grade. Republican. Presbyn. Clubs: University (sec.), Union League (Chicago). Author: A Uniform System of Accounts for Gas Companies, 1916; Farm Accounting, 1918; Elements of Accounting, 1919; Elementary Accounting, 1923; Accounting Procedure, 1926; also numerous articles in periodicals. Editor: Wiley Accounting Series of Text Books. Home: 605 Michigan Avenue, Urbana, Illinois. Regraded Unclassified 71 LLOYD MOREY Comptroller, and instructor in Finance, University of Illinois. Born: January 15, 1886, - Laddonia, Missouri. AB Univ. of Illinois 1911 CPA Illinois 1916 LLD Lawrence College 1935 8. Hiram and Erma (Carter) M.; m. Edna Cox, August 6, 1912. Bookkeeper, comptroller's office, U. of Ill., 1911-13; auditor, 1913-17, comptroller since 1917; instr. in account- ing, U. of п., 1917-19; asst. prof., 1919-21, prof. since 1921. Organist and dir. music, Trinity Ch., Urbana, Ill., since 1911; teach of organ and piano, 1908-17. Consultant, Ill. Municipal League, 1920-28; specialist in ednl. finance, U.S. Office of Edn. (land grant coll. survey), 1929; chmn. Nat. Com. on Standard Reports for Instns. of Higher Learning, 1930-35; cons. on business orgn. and finance, various Am. univs., since 1921, chief consultant on educational finance American Council on Education since 1935; vice chun. National Com. on Municipal Accounting since 1934; treas. University of Illinois Foundation since 1935. Mem. Am. Inst. Accountants, Ill. Soc. C.P.A., American Accounting Assn., Assn. Univ. and Coll. Bus. Officers (ex-pres.), Nat. Municipal League, Phi Beta Kappa, Beta Alpha Psi, Alpha Kappa Lambda. Methodist. Clubs: University, Urbana Golf and Country, Rotary (Urbana). Author: C.P.A. Problems and Solutions (with W. B. Castenholz), 1918; Manual of Municipal Accounting, 1927; Introduction to Government Accounting, 1927 (rev. 1936); University and College Accounting, 1930. Contbr. to Ednl. Business Manager and Buyer (Chm. editorial staff), etc. Composer of several musical works. Home: 803 W. Oregon Street, Urbana, Illinois. 72 CLARE E. GRIFFIN Dean, School of Business Administration, University of Michigan. Born: March 22, 1892, - Allegan, Michigan. BA Albion (Mich.) College 1914 MA Univ. of Illinois 1915 Ph.D # If If 1918 8. Frank and Ethel May (Lewis) G.; m. Florence Lovina Parsons of St. Clair, Mich., Dec. 27, 1917; children: Frances Ethel, Nancy Letitia. Instr. economics, Dartmouth, 1916-17; instr. transportation, Johns Hopkins, 1917-18; expert U. S. Shipping Bd. and Central Bur. of Planning and Statistics, Washington, 1919; asso. prof. commerce and industry, U. of Mich., 1919-25; professor mar- keting since 1925, dean Sch. of Business Administration since 1927. Ednl. dir., Detroit Chapter, Am. Inst. Banking, 1923-25. Served as lst. lt. U.S.A., Sept. 1918-May 1919. Mem. Am. Econ. Assn., Am. Marketing Assn. Research Club (U. of Mich.), Delta Sigma Rho. Club: University. Author: Principles of Foreign Trade, 1924; Life History of Automobiles, 1926; contbr. Am. Economic Rev., Jour. Polit. Economy, Harvard Business Rev., etc. Home: 21 Ridgeway Street, Ann Arbor, Michigan. Regraded Unclassified 73 RUSSELL A. STEVENSON Dean, School of Business Administration, University of Minnesota. Born: October 31, 1890, - Muskegon, Michigan. BA Univ. of Michigan 1913 Ph.D. If II If 1919 MA State Univ. of Iowa 1915 8. Augustus Walter and Carlie (Gray)S.; me Edna Kampenga, Jan. 1, 1914; children: Robert Edwin, Harold William. Instr. in economics, U. of Mich., 1913-14; instr. in accounting, U. of Ia., 1914-16, asst. prof., 1916-17, asso. prof., 1917-19, prof., 1919-20; prof. accounting and head dept. of commerce, Coll. of Engring. and Commerce, U. of Cincinnati, 1920-26; dean Sch. of Business Adminis- tration, U. of Minn., since 1926, also dir. Employment Stabilization Research Inst. since 1931. Pres. Am. Assn. Collegiate Schs. of Business. Mem. American Assn. Univ. Instrs. in Accounting, American Economic Assn., Beta Gamma Sigma, Delta Sigma Pi, Beta Alpha Psi, Delta Sigma Chi, Acacia. Mason. Author: Principles of Accounting (with William A. Paton), 1918; Problems and Exercises in Accounting (with same), 1918; Problems and Questions in Accounting (with R. Emmet Taylor), 1926; Accounting Principles, 1930; The Minnesota Unemployment Research Project, 1931. Advisory Editor Accountant's Handbook, 1931. Editor: A Type Study of American Banking-Non-Metropolitan Banks in Minnesota, 1934; Balancing the Economic Controls (with Roland S. Vaile), 1935. Home: 1961 East River Road, Minneapolis, Minnesota. Regraded Unclassified 74 WALTER C. WEIDLER Dean, College of Commerce and Administration, Ohio State University. Born: September 26, 1888, - Columbus, Ohio. AB Ohio State University 1913 AM If n = 1915 Austin Scholar, Harvard 1916-17 S. John Adams and Laura Adella (Packard) W.; m. Ruth Catherine McNarney of Columbus, March 31, 1915; children: Betty Ruth, Walter Clark. Instr. in economics and sociology, Ohio State U., 1915-16, 1917-19; prof. merchandising, Tulane U., 1919-20; same Ohio State U., since 1920, chmn. dept. business orgn., 1926-29, acting dean of Coll. Commerce and Administration, 1927-29, dean since Aug. 1929. Mem. Council Nat. Defense, summer 1917. Mem. Am. Econ. Agan., Nat. Assn. Teachers Marketing and Advertising, Alpha Kappa Psi, Beta Gamma Sigma. Club: Faculty. Author: The Principles of Marketing (with H. H. Maynard and J. N. Beckman), 1927; An Introduction to Business Man- agement (with H. H. Maynard and Karl D. Reyer), 1933. Home: 139 East North Broadway, Columbus, Ohio. 75 CLYDE 0. RUGGLES Formerly: Head of Dept. of Business Administration, Ohio State University. At Present: Professor, Public Utility Management, Harvard, also Chairman, Sub-Committee on Business Education, American Council on Education. Born: December 7, 1878, - Jefferson City, Iowa. AB Iowa State Teachers College 1906 AM State University of Iowa 1907 Ph.D. Harvard 1913 S. John Henry and Theodosia (Doggett) R.; m. Maud Vittetoe, Sept. 1898 (she died 1900); m. 2d. Frances Holmes of Waterloo, Ia., Aug. 30, 1906; children: John Holmes, Catherine Grace, Rebecca Dorothy, Richard Francis. Spl. research on federal reserve banking law for Nat. Monetary Comm., Jan.Sept. 1909; head dept. history and social science, Winona (Minn.) State Teachers Coll., 1909-13; asst. prof. economics, 1913-14, prof., 1914-20, head dept. business admin- istration, 1921-26, dean Coll. of Commerce and Administration, 1926-28- All Ohio State U.; prof. pub. utility management, Harvard, since 1928. Also served as head Sch. of Commerce and of dept. of economics, State U. of Ia., 1920-21; and as spl. expert on investigation of terminal charges at U.S. ports, for U.S. Shipping Bd. Dir. of Survey for the Electrical Industry of the Extent of College Instruction in Pub. Utilities, and of the Industry's Demand for College Graduates, 1927-28. Mem. Am. Economic Assn., Alpha Kappa Psi, Beta Gamma Sigma, Pi Gamma Mu, Acacia, Baptist, Mason. Author: (rept.) Terminal Charges at U.S. Ports, 1919; Problems in Public Utility Economics and Management, 1933; Aspects of the Organization, Functions and Financing of State Public Utility Commissions, 1937. Homer 4 Lowell Street, Cambridge, Mass. Regraded Unclassified 76 JOSEPH H. WILLITS Until very recently, Dean, Wharton School of Finance and Commerce, University of Pennsylvania. Born: June 16, 1889, - Ward, Pa. AB Swarthmore 1911 AM If 1912 LLD If 1937 Ph.D. Univ. of Pa. 1916 S. Francis Parvin and Elizabeth Anna (Paschall) Willits; m. Ruth Clement Sharp of Riverton, N. J., May 3, 1913; children: Barbara Kinsey, Clement Paschall, Robin Dana. Instr. georgraphy and industry, 1912-17; asst. prof. 1919- 20, prof. since 1920, Univ. of Pa., dean Wharton School of Finance and Commerce since 1933. Expert in study of unem- ployment for Philadelphia, 1915; sec. and v.p. Phila. Assn. for Discussion of Employment Problems, 1915-21; employment superintendent U.S. Naval Aircraft Factory, 1917-19; director of the Industrial Research Department, Univ. of Pennsylvania, since 1921; expert in charge of studies in labor relations, U.S. Coal Commission, 1922-23; mem. ednl. advisory bd. John Simon Guggenheim Memordal Foundation, 1924-28; mem. exec. com. Personnel Research Fed.; former member State Industrial Bd. of Pa. Mem. President's Emer- gency Com. for Employment, 1930-31; pres. Nat. Bur. of Economic Research, 1933 (exec. dir. since 1936); mem. Federal Advisory Council of U. S. Employment Service; mem. Am. Economic Assn., American Management Assn., Taylor Soc. Author: The Unemployed in Philadelphia, 1915; (with others) What the Coal Commission Found, 1925; Studies of Labor Relations for the U.S. Coal Commission; also various brochures on labor subjects. Editor 3 vols. of Annals of Am. Acad. Polit. and Social Sciences. Homer Ogden Avenue, Swarthmore, Pennsylvania. 77 CHARLES S. TIPPETTS Dean, School of Business Administration, University of Pittsburgh. Born: January 16, 1893, - Glens Falls, New York. Litt. B. Princeton 1916 AM = 1922 Ph.D. If 1924 Law at Harvard 1916-17 5. of William Henry and Emily Katherine (Bell) T.; married Margaret Elizabeth Griffith of Minneapolis, Minn., April 4, 1920; children: Katherine Bell, Charles Sanford. Instr. economics, Princeton, 1919-21 and 1923-34; asst. prof. economics State U. of Ia., 1924-25; prof., 1925-28; prof. business administration, U. of Wash., 1928-29; prof. economics U. of Buffalo, 1929-35; dean Sch. of Business Administrn., U. of Pittsburgh, since 1935; visiting prof. summer sessions, U. of Wash., 1930; W. Va. U., 1931, Ohio State U., 1932; vice chairman Federal Home Loan Bank of Pittsburgh. Director Pittsburgh Chamber of Commerce. Ser- ved as 1st. lt. 304th Inf., 76th Div., A.E.F., World War, 1917-19; capt. inf. O.R.C. 1919-34. Mem. Am. Econ. Assn., Royal Econ. Soc., Am. Assn. for Labor Legislation, Am. Assn. Univ. Profs., Scabbard and Blade, Order of Artus, Phi Beta Kappa, Beta Gamma Sigma, Delta Sigma Rho, Alpha Kappa Psi, Presbyn. Mason. Club: University. Author: State Banks and Federal Reserve System, 1929; Business Organization and Control System, 1932; (with S. Livermore). Revisor (with L. A. Froman) of Horace White's Money and Banking, 1935. Contbr. econ. articles. Homer 405 Morewood Avenue, Pittsburgh, Pa. 78 REID L. McCLUNG Dean, College of Commerce and Business Administration, University of Southern California. Born: November 12, 1885, - Louisa, Ky. B.Pd. Morris Harvey College (W.Va.) 1902 AB If # If " If 1904 Ph.D. New York University 1920 Graduate Student: Vanderbilt for 2 years. If . Univ. of Chicago for 1 year. S. Samuel Floyd and Lorena (Rupert) McC.; me Helen Odell, Nov. 21, 1921; children: Mary Eleanor, John Reid. Instr. in Latin, Willie Halsel Coll., Vinita, Indian Ty. (now Okla.), 1904-05; instr. in economics, N.M. Mil. Inst., Roswell, 1907-09; vop. and prof. economics, Morris Harvey Coll., 1909-15; instr. in economics, Cornell U., 1915-17; instr., advancing to prof. economics, and chmn. dept. 1919- 1927, dean Coll. of Commerce and Business Administration, U. of Southern Calif. since 1927. Served as 2d lt., advan- cing to major Machine Gun Corps, U.S.A., 1917-18; chief personnel statistician, Gen. Staff, Washington, D. C., 1918-19. Mem. Am. Econ. Assn., Beta Gamma Sigma, Phi Kappa Sigma, Phi Kappa Phi, Pi Gamma Mu, Alpha Kappa Psi, Phi Delta Kappa, Skull and Dagger; pres. Pacific Coast Economic Assn., 1935. Southern Methodist. Club: University. Author: Earning and Spending, 1927. Editor: Hull's Industrial Depressions (revised edit.), 1928. Author many articles in scientific and professional publs. Home: 951 Victoria Avenue, Los Angeles, Calif. 79 L. HUGH JACKSON Dean, Graduate School of Business, Stanford University. Born: January 20, 1891, - Warren County, Iowa. AB Simpson College 1912 LLD If = 1930 MBA Harvard 1920 8, James Milton and Ella Viola (Marts) J.; n. Frederica Ann Harned, July 29, 1914; children: Jacob Hugh, Charlotte Frederica. Instr. in bookkeeping, high schs., Davenport, Ia., and St. Louis, Mo., 1913-16; asst, prof. commerce, U. of Ore,, 1916- 17; asst. prof. accounting, U. of Minn., 1918-19; asst. prof. accounting, Harvard Grad. Sch. of Business Administration, 1920-21, prof., 1923-27; prof. accounting, Grad. Sch. of Business, Stanford, since 1926, dean since 1931; acting comptroller Stanford Univ., since 1937; associated with Price, Waterhouse & Co., New York, Boston, and San Francisco, 1921- 30; acting prof. economics, Stanford, summers 1928, 29. Lecturer U. of Chicago, summer quarter 1923; lecturer William A. Vawter Foundation, Northwestern U., 1932. Mem. Am. Inst. Accountants, Nat. Assn. Cost Accountants (v.p. 1937-39), Am. Accounting Assn. (pres. 1929), Am. Economic Assn., Stanford Research Club, Calif. State Soc. of Certified Pub. Accountants, Council on Foreign Relations, Inc., Alpha Kappa Psi. Republi- can. Methodist. Clubs: Bohemian (San Francisco); Faculty (Stanford); Kiwanis (Palo Alto); Los Altos (Calif.) Golf and Country; Rio Del Mar Country (Santa Crus). Author: Audit Working Papers-Their Preparation and Content, 19233 Bookkeeping and Business Knowledge (with T. H. Sanders and A. H. Sproul), 1926; Auditing Problems, 1929; also articles in mags. and tech. papers. Home: 445 El Escarpado, Stanford University, California. Regraded Unclassified 80 CHARLES LEE RAPER Dean, College of Business Administration, Syracuse University. Born: March 10, 1870, - High Point, N. C. AB Trinity College 1892 Ph.D. Columbia 1902 LLD Lenoir-Rhyne College 1917 S. Solomon Andrew and Luzena (Hitchcock) R.; n. Henrietta Frost Williams of Paterson, N. J., 1904. Instr. Greek and Latin, Trinity Coll., N. C., 1892-93; prof. Latin, Greensboro (N.C.) Female Coll., 1894-98; lecturer in history, Barnard Coll. and Columbia, 1900-01; asso. prof. and head dept. of economics and asso. prof. history, 1901-06, prof. economics, 1906-20, dean Grade. Sch., 1909-20, Univ. of North Carolina; prof. transportation since 1920, dean Coll. of Business Administration since 1921, vice-chancellor since 1936, Syracuse University. Authorr The Church and Private Schools of North Carolina, 1898; North Carolina-A Study in English Colonial Government, 1904; Principles of Wealth and Welfare, 1906; Railway Trans- portation, 1912; also papers on taxation, state and local, and on transportation. Connected with traffic bur. of Chamber of Commerce of Syracuse. Mem. N. Y. State Planning Council. Home: 700 Ackerman Avenue, Syracuse, New York. Unclassified 81 GLOVER D. HAN COCK Dean, School of Commerce and Administration, Washington and Lee University, Lexington, Virginia. Born: January 10, 1878, - Los Angeles, Cal. AB William Jewell College, Liberty, Mo. 1898 AM # = = 1899 Ph.D. Univ. of Wisconsin 1908 (Economics) 8. Thomas D. and Laura (Dunn) H.; m. Mabel Kimzey, June 29, 1911. Taught as prin. of high schs. and coll. prep. sch., 1900-05; spl. agt. Wis. State Tax Comm., parts of 1905-06-07; asst. prof. economics, Amherst Coll., 1908-10; prof. economics and commerce and dir. Sch. of Commerce, Washington and Lee Univ., Lexington, Va., 1910-19; dean of Sch. of Commerce and Admin- istration, same univ., 1919-. Spl. lecturer in economics, Johns Hopkins, 1912; prof. economics, U. of Va., summer 1922. Mem. Am. Econ. Agan., Am. Polit. Science Assn., Am. Acad. Polit. and Social Science, Sigma Nu. Mem. State Comm. on State Fund for Workmen's Compensation Insurance, 1930-31; pres. Va.Social Science Assn., 1937-38. Episcopalian. Home: Lexington, Virginia. Regraded Unclassified 82 FAYETTE H. ELWELL Director, School of Commerce, University of Wisconsin. Born: June 27, 1885, - Rural Dale, O. AB University of Wisconsin 1908 CPA Wisconsin State Board of Accountancy 1914 8. William Harry Clayton and Georgia May (Herbert) E.; m. Zora E. Fairchild of Elgin, n., June 30, 1909; children: Nancy May (dec.), Lucy Ann, Mary Elizabeth, Fayette Herbert (dec.). Professor accounting and business administration, Cincinnati College of Commerce, Accounting and Finance, 1908-10, dean 1909-10; prof. accounting, Marquette University, Milwaukee, Wis., 1910-11; with U. of Wis. since 1911, professor account- ing since 1917, director, School of Commerce since 1935: nem. Elwell, Kiekhofer & Co., certified public accountants, Madison and Milwaukee, Wis. Member Wisconsin State Board of Accountancy, 1914-23, pres., 1917-23; mem. Am. Assn. Univ. Instructors in Accounting (pres. 1918), American and Wis. societies of certified public accountants, Am. Economic Assn., Beta Gamma Sigma (grand pres. 1913-19), Theta Chi, Alpha Kappa Psi, Beta Alpha Psi. Mason. Clubs: Madison, Rotary. Author: (with George W. Miner) Principles of Bookkeeping (series of 7 books), 1918; (with George We Miner and Frank C. Touton) Business Arithmetic, 1923; (with J. V. Toner) Book- keeping and Accounting (series of 5 books), 1926; Bookkeeping for Today (series of 4 books), 1932; Brewery Accounting, 1934; Brewery Bookkeeping and Cost Finding, 1935; Personal and Business Record Keeping 1938. Home: 2025 Chadbourne Avenue, Madison, Wisconsin. Regraded Unclassified QUADRUPLICATE 83 No. 198 Rangoon, Burna, May 1, 1959. CONFIDENTIAL SUBJECT: American notor trucks for China, THE HONORABLE THE SECRETARY OF STATE, WASHINGTON, D.C. J SIR: STRICTLY CONTIDENTIAL I have the honor to report that 1,386 American motor trucks for the Chinese Government have now been delivered at Rangoon. The total includes 500 Dodge and 502 General Motors (amo) trusks shipped direct from the United States to Rangoon on American vessels, and 386 Dodge truske originally shipped to Hong Keng and brought here from that place. The trusks includ- ed in the direct shipments are part of the purchases of the Universal Trading Corporation under the credit authorized by the Export-Deport Bank, and are for the use of the Southwest Transportation Company, the con- ourn in charge of the movement of war supplies. only so of the Dodge trusks delivered by Ameri- can vessels have been assembled up to this time. Labor difficulties have interfored with the work, but it is thought that these have been overeone by the imports- tien of aso Chinese mechanics and carpentors from Test- name One hundred more Chinese workmen are said to be on the way to Rangoon. the incrican representative of Regraded Unclassified the Chryaler Export Corporation who is here to super- 84 visa operations hepes to be able to assemble 20 to 15 trueks daily. There are 115 Dedge trusks with cabs and stake bodies (all others consist or chassis only), and these are the vehicles that are now being turned out for service. The work of assembling are tenasise has just been commenced. The first 86 Dodge trucks brought here from Hang Kong have been assembled and equipped with bedies, and - have boen shipped to Lashie an route to Chine. Nothing has yet been done with the other 500, As pre- vioualy reported, these trueks were obtained through Dodwell and Company of Home Kong, and they also are for the use of the Southwest Transportation Company. Not to Assemble Trucks at Lashie. Plans for assembling motor trucks for China at Lashie, the terminus of the Burna Railways in the Morth- era Shan States, have been abandoned, at least for the present, and the work will be done in Rangoon. After being fitted with locally-made bedies, assembled trusks will be shipped to Lashio by rail, and will be loaded there with war materials and sent into china. the - plano hanger of the Irrenally Fletilla Company, which has not bost in use since scaplane service in Burna TM discontinued last year, and part of the foundry of that concern at this part, have been leased for assembly pur- yeses, but additional space is required. the Garyalar representative in Bangton has reseived information that many units of the second 500 Dodge tracks purchased by the Universal Trading Corporation will arrive at Rangeon this month on the merican Regraded Unclassified stemship 85 steemship ATLANTA CITY. These additional trueke will form part of the flest of 1,000 which the Foo shing Trading Corporation of China has agreed to maintain for the exportation of wood-oil to the United States for the Universal Trading Corporation of New York. Four American Ships Deliver Trucks. Direct shipments of American trucks to Rangoom have been made on the American vessels WIGHITA, PRESI- DENT MONROE, STEEL TRADER, and CITY OF RAYVILLE. The last of the four vessels named, which arrived at this port on April 28th, also brought from the Universal Trading Corporation 2,000 truck tires, 36 tons of heavy hommers, 10 tons of shovels, and five tons of read- grading equipment. Three hundred five-ton Thernyoroft trucks pur- chased by Chinese interests under a British credit are expected at Rangoon from England within a short time. According to press reports, the purchase com- prises 1,300 of these trucks. It is also reported that 250 Bedford trucks for China will come here from England, where they are made by General Meters. Respectfully yours, Austin C. BruAy American Consul Distribution: 1. Original and four copies to Department. 2. Copy to American liabasay, London. 3. Copy to imerican Consulate General, Calcutta. 4. Copy to American Consulate, 800 eeer SS YAM ACB/OP Regraded Unclassified THE YRUPAIRT ndt to will QUINTUPLICATE THE Wat 86 NO. 195 THE as Rangoon, numa, May s, 1939. STRICTLY CONFIDENTIAL SUBJECT: Transportation arrangements in con- nection with exportation of wood oil from China to the United states. THE NONORABLE THE SECRETARY OF STATE, WASHINGTON, DeC. SIR: I have the honor to report that it appears that elose cooperation between Chimese road-transport and export agencies will be required to prevent dolay in the movement of wood oil from China to the United States, in conformity with the terms of the agreement between the Universal Trading Corporation of New York and the Feo shing Trading Corporation of China, which is part of the agreement between the Universal Trading Corporation and the Export-Depert Bank. Mr. c. Chem, who came to Rangoon in April as the representative of the Fee shing Trading Corporation, has sent a memerandum on the subject to New York, to Mr. x. P. chen, of the Universal and Fee shing - panies. He points out that although the Southwest Transportation Company has had for some time several hundred tyneks in operation between Kuming (Yunnanta) and Lashie, not a single ten of through eargo has been carried to Lachie. Immediate Negotiations Suggested. He suggesta immediate negotiations with Regraded Unclassified 87 soong (a brother of Madame Chieng Kai-shek), who is at the head of the Southwest Transportation Company, to the end that wood oil may be carried at mos, "witheat further wasting the haulage in our direction". No has teld me that he understands that same supplies of wood oil are now available for shipment at Kumming. Mr. Chen also suggests in his memerandum that the operation of the thousand merican motor trucks which the 700 shing Trading Corporation has agreed to main- tain for the exclusive transportation of wood oil be turned over to the Southwest Transportation Company, on the ground that such cooperation will more then double the corporation's carrying capacity, by giving it the use, also, of the Southwest's trucks. He says, in er- fest, that the transportation company wants to control traffic, and that his concern "might as well save ex- penses and men". A copy of Mr. Chen's memorandum is enclosed here- with. Proposed Use of Route. Mr. Chen reports that he has received a letter from Dr. John Lossing Buck, American citizen and for- ner college professor, who is now in charge of the transportation activities of the Foo shing Trading Corporation and affiliated concerns, informing him that he has spent same time studying the feasibility of using existing reads between Changicing and Haiphens, Indochina, for export chipments, and that as a result he has recomended that the second thousand American trueks purchased by the Universal Trading Corporation Unclassified 88 be shipped to the part of Halphong, not to Rengeon. According to advices reseived by the representa- tive or the Charysler Export Corporation now in Rangbon, same of the second 500 Dedge trueks bought by the uni- versal Trading Corporation, which form part of the second thousand American trusks, have already been shipped to this port. The fact that roads between Chungking and the Indochine border could be more easily reached by Japa- nose bombers is put forward as a reason for the use of the Tunnen-Purma highway in preference to them. Assurances New Read will Be Kept оред. Mr. Chen has received assurances from Mr. Ta'n Po-ying (P. T. Tena), the Chinese engineer in charge of the highway, that the road will be kept open during the coming rainy season. Intimates of the number of men now at work on the read range from 30,000 to 50,000 and more. Lieutenant-Commander Milton 1. Miles, U.S.M., at present stationed at Manila, who arrived in Rangeon on April 29th after traveling by truck over the now road from Kumaing to Lashie, accompanied by his wife and three sons, declared he was certain that for more than 50,000 men were now working on the highway. It is reported that the chi- nase Minister of Communications will make an inspes- tion of the Tunnan-Jurna read within the next week or ten days. and will - on to Rangoom. Mr. Carl Crow, American advertising MAR and auther, is in Rangoon on his way to China over the highway, of which he will with Regraded Unclassified .... 89 1 ⑉ in the new read a short reute to continuentom and contral China, of great commercial yousibilities. Respectfully yours, Amotin 0. I General Enclosure: Memorandum en the China-Duma Mighway Traffic. Bistribution: 1. Original me fear sepies to Department. a. Copy to American beau, Landon, 5. Copy to American General, calcutta. 4. Copy to American consulate, 800 ASB/CP Regraded Unclassified 4 tree copy or alamed 90 (Ungublished) Enalosure no. 1 to despatch no. 179, dated May a, 1959, from Austin c. Brady, American Consul at Rengoon, Burne, on the subject of "Tramsportation arrangements in - nection with exportation of wood oil from China to the United States", source: Mr. c. Ches, representative in Rangoom or Foo Shing Trading Co. THE A HIGHWAY TRAFFIC The Highway. In hardly one month's time the monsoon season will begin, to last until the and of Det. Yet oven today, opinion differs widely as to whether this highway own be kept open during the raining season. At any rate the official statement of its Director, Mr. P. Y. Tan, is that it will be kept open through the raining season, as no less than 30,000 men are now employed to improve the road and to keep 1t open. Secondly, the South West Transportation CO., our official and sole organ for transporting ammunitions into China, is going full speed sheed in strengthening its posts along this Highway. Thirdly, as I wired to New York, Vice-Minister of Foreign Affairs, Mr. T. K. Tseng also advised us to send the 1000 trucks here for this Highway. Taking opinions from all angles and speaking as a transporta- tion man, I finaly believe, during the raining season interruptions may be inevitable but no break shall be so permanent and absolute as to paralyse the whole high- way. It is much like the way we worked the Centon- Hankow Railway last year. Assording to records, the Japanese had been bombing the Line almost every day thy Interruption and yet we mode good use of it for fully ten months. The Traffic Technique to be Employed for This Highway, There are two fasts we have to grant as our hype- thesis: 1) This Line is delicate, liable to break here or there from time to time, especially during the reining season. 8) While trueks require only an inspection and porhaps a minor tuning up, drivers as human beings, must have a 24-hour complete rest after a B-day driving. Henoe, it is necessary to divide the whole journey into sections, which from past experience are divided M under: Section 1 Lashio to Mengshih 1 day = 2 Mangahih to Longling (1 day) Longling to Pooshan (1 day) a days 4 5 Paoshan to Heiskwan a days - 4 Hainkwan to Kumming 8 days (Note: The first part of section 2, Mangahih to Longling, is the most dangerous and deli- eate of the whole Line). Regraded Unclassified At 91 ARE each section a number of spare trucks and driv- Regraded Unclassified are and parts will be stored to meet emergency. Godowne must also be crested. The idea is to have the trusks drive through whenever possible to avoid unnecessary transhipments. when and truck should be unable to pro- seed, a spare truck to to earry on with the load under convey system. Repair is to be done at such points. Godowne are there to meet emergencies. should a line be broken at any case given point, the other sestions can still carry on, until repairs are completed. The aim would be to keep a steady, even flow of traffic like water through a pipe. Godowns are like reservoire at sections to enable sectional flow even when a break takes place at a given point. Since the section be- twoen Mangahih aná Longling is the most dolieate, largest golows will have to be crested at both points. AR Estimate of Capacity on 1000 Trucks. Present experience working on this Line tells us that clmost 30% allowance will be given to repairs, spare, atc. For easy calculation sake, we, say, allow 190 trucks for this purpose and each month all trucks will make two round trips between Kumaing and Lushio. Thus each day we will be able to disputch an average of 54 trucks, or about 108 tone per day each way. Co-operation and Division of Labor. Great sevings and goins can be had through 60- operation. For instance, we ought to co-operate with the South Weet Transportation Co., because while they are solely interested in importation, we are solely interested in exportation, We are complementary to each other. Besides their 1000 trusks, now quickly being put into commission, they also have other trucks. My trip to Lashie unsarthed one feet which deserves your immediate attention and action; and that is at present the South Fest have about 400 trucks to run between Kunning and Chefeng and another 200 or more to run between Chefeng and Lashie. These 600 trucks have been running for name time and NONE ever CARRIED ONE TON OF CARGO ALL THE WAY FROM KUNNING TO LASHIO, I beg to sug- gest that immediate megotiation be made with Mr. To Lot seong, to have their trucks carry our eargo at anoe, without further westing the haulage in our direction. of course for the present we will have to offer to pay a reasonable freight and we also will have to promise not to hold up their trucks for loading or other pur- pose. Then 16 ought to have our our men at Lashie at once to look after our own cargo and to forward DURO by rail to Rangoon. He also must have men at Chefeng to check and tally, etc. where at present transhipment is meessary. When negotiating with Mr. 2. is seeng it would be well also to negotiate for future arrange- nent, that is when our 1000 trusks shall be put into emmission. This 00-operation will more than double our carrying capacity and also eliminate all trouble in connection with carrying commercial cargo. For the 92 time being we will not bother about commarcial cargo. Importation, south West carge for the Government and exportation, our exports. by division of Labor I neen at each section, we will have our om staff and our own godowns. I also mean: the China-Purne highway bureen is to look after the permanent way, the South West Tr. co. to look after traffie and we only need to look after our expert eargo, The South Nest Tr. Co. want to have this power and - night as well save the - penses and men. I have just noted Dr. Buck's letter, saying that the second 1000 trucks have been routed to Heiphong. Even it is decided to work these trucks on the Haiphong route, there is no reason whey we should not negotiate with Mr. To L. soong to co-operate with the South West on both routes; that is to de exportation on both routes for the South West and do imports on both routes for us? Seeing the condition in Lashio as I have, I strong- ly maintain that if our trucks are ever coming to Ram- goon, it is far more practical and economical to have them assembled in Rangoon and shipped to Lashio by rail. (sa/-) C. Chen April 26th, 1939. BECEIAED Regraded Unclassified orog et YAM TREASURY DEPARTMENT 24 93 INTER OFFICE COMMUNICATION DATE May 1, 1939 TO Mr. White FROM Mr. Gass Subject: The Newly-Appointed British Ambassador I think you may be interested in a brief characterization of the newly-appointed British Ambassador, the Marquess of Lothian. My in- formation is based on a limited personal scquaintance, together with facts gathered from people, books and papers when I was in England. The subject is of direct interest to the Treasury since the Marquess of Lothian was made Ambassador to the United States because the British Government believed (quite rightly) that he was more likely than any other Englishman to succeed in getting the United States to support Great Britain financially, should the latter be involved in 8 European war. The Marquese of Lothian, formerly Philip Kerr, is a representative of that slightly chastened group of "liberal imperialists" which came out of Oxford in the years immediately after the Boer War. Kiplingesque imperialism W&E going out of fashion; the deeds of Rhodes were already referred to with a knowing, apologetic smile. As Philip Kerr, he first became prominent in the working out of this new imperialism, under Lord Milner in South Africa. Then, as editor of the imperial quarterly "The Round Table", he was responsible for popularizing the phrase, the British Commonwealth, as opposed to the British Empire. Somewhere along the road he read two thoroughly bad books on the formation of the American constitution, Fiske's "Age of Crisis" and Oliver's "Life of Hamilton". Re has always since regarded them as con- taining the highest political wisdom. From them he took the doctrine of federation, which constitutes to this day the greater part of the rhetorical side of his political philosophy. In the pre-war years he was one of the best known advocates of the idea of imperial federation, a free union among the (white) peoples of the Commonwealth, with an imperial parliament made up of representatives from each of the members of the union. This "project of a commonwealth" is distinguished by its disregard for the problems and aspirations of the native peoples. At bottom, I believe, the Marquess accepts the South African view that the native populations of the empire are to be kept permanently in the status of howers of wood and drawers of water. Latterly, however, it has become politic to cover this view with unctuous words about trusteeship. Regraded Unclassified 94 Mr. White - 2 Lothian has always been known as E Liberal, and ha even makes quite a play at being left-wing. He can make an equalitarian - even a Socialist - Commencement speech with the best of them. But Com- mencement speeches, like sermons, are not allowed to interfere with conduct seven days a week. Lothian has always been able to gain the support of those who are impressed with radical phrases and then go his OWN way. In 1931 he supported the "National" government. In mat- ters of social policy he will be found with his hard-faced co-liberals, Lord Runciman and Sir John Simon. But, unlike them, he will continue to make left-wing speeches. During the war and at the Versailles conference he was Lloyd George's secretary. It was never known then that he should raise his voice in defense of the defeated. He participated in the "hang-the- Kaiser" election. However, like Lloyd George, he began soon thereafter to believe that injustice had been done to Germany and Hungary. This aspect of his outlook on European affairs has become especially promi- nent since the attainment of power by the National Socialist regime in Germany. He has given public approval to the German reoccupation of the Rhineland, to the annexation of Austria, and to the Munich settle- ment. In all of these cases he has said that what the Germans were doing was right, though there might be some objection to the methods which they employed. Even after the annexation of the whole of the Czechoslovak State he has never gone back on his earlier position, never admitting that concessions to aggression have merely encouraged further demands, never appreciating that the attitude one took towards "Germany" ought to be conditioned by the kind of Germany one was con- fronting. On several occasions, Lothian has substituted for J. L. Garvin, perhaps the best known of British pro-Fascists publicists. Garvin's chief weekly publication is a full page editorial in The Observer, the most influential of British Sunday newspapers. During the Ethiopian war and then later during the Civil War in Spain - as well as on other occasions - Lothian has replaced Garvin in writing this Sunday editorial. In each case the line taken, though much more subtle than that of Garvin, amounted to support for the Fascist party. However, it must be noted that Lothian would never concede that he had given such support. He continues to affirm that he is a convinced democrat and a proponent of a world federation supreme over all national States. All of Lothian's pro-fascist editorials, as well as his verbal comments on international affairs, are introduced by a high-sounding prelude in favor of world federation. He never misses a chance to praise the wisdom of Hamilton and Madison and to show its application Regraded Unclassified 95 Mr. White - 3 to the condition of the world today. He expatiates on the anachro- nism of national sovereignties in an interdependent world, He mocks the impudence of nationalisms in the face of a universal culture. He concludes that the world needs a genuine federation after the model of the American constitution. Then, with a swiftness which 1s dis- arming even to the most wary, comes the transition. Existing inter- national law is inadequate. Therefore why try to enforce it? Ite enforcement only perpetuates injustice. Hitler and Nussolini have been righting wrongs for which existing international law provides no remedy. Why should we interfere with them? Any effort to employ sanctions against aggressors is only - to quote his favorite phrase - "being led up the garden path". Let us meditate on the world federation. - It all comes 80 quickly that even very hard-headed persons are thrown off their balance. I predict, therefore, that Lothian will be a big success in the United States. All the peace groups will be for him. He will outdo the State Department in the rhetorical force of his sermons. Be will favor world federation, will speak much of the interdependence of the modern world, and will make fun of egotistical nationalisms. He will be eloquent in defense of democracy and will tell us over and over again that the new times require great institutional changes. He is very good company, likes a drink and can tell a good story. He will TO over very well. - The moral will be, mye are all of us good fellows and let us all support the Chamberlain Government." The Marquess has recently urged strongly that the United Kingdom resume token payments on its war debt to the United States as earnest of a sincere intention to make full payments "as soon as conditions permit". His thought is clearly that one or two token payments (of say 810 million) are worth wagering on the chance that they may smooth the way to new loans of several billion dollars when Great Britain becomes engaged in another European war. Lothian's personality and past record afford a strong presumption that he will be an extraordinarily active ambassador. His appeal will be addressed to the general public, rather than limited to official dip- lomatic channels. His first efforts will be directed towards overcoming widespread American antagonism to the Chamberlain policy of cooperation with Fascist aggression. It will be his job to prepare Americans to accept further "reasonable compromises" in Europe, and at the same time to create the background for American support of Great Britain should the latter ultimately be forced into a war in defense of her imperial interosts. In carrying out his propaganda in the United States, Lothian will be greatly assisted by his position as the head of the Rhodes Foundation. Of course, some ex-Rhodes Scholars will be especially immune to the blandishments of one whom they know as an able member of the "Cliveden set". Regraded Unclassified 96 Mr. White - 4 However, in his work for the Rhodes Foundation, Lothian has met scores of influential Americans, and he does have especially direct access to about a thousand American ex-Rhodes Scholars, who live in all parts of the country and are very numerous in education, journalism and similar professions especially important in the formation of opinion. It is quite possible that the Marquess of Lothian will be as in- fluential an ambassador as has ever been sent us by Great Britain. 97 REB GRAY London Dated May 1, 1939 Rec'd 3:15 P. me Secretary of State, Washington. 588, May 1, 7 P. m. FOR TREASURY FROM BUTTERNORTH. DUE to an unconfirmed story in the DAILY MAIL that Hitler would give the Poles two WEEKS in which to come to an agreement the London Stock Exchange opened weak and the tendency continued throughout the day. Equities were down and war loan loss of half a point to close at 90-7/8. The foreign Exchange market continues relatively inactive with the British control giving dollars at 4.68-1/8 the amounts being comparatively small. Insurance position remains uncertain and consequently only 89 bars were sold at gold fixing at parity of which five were married, Samuel Montagu taking the lot. KENNEDY BECEIAED CSB I'm I YAM THEMTHA930 VRUBANT ch to vallité estrost sei € wast Regraded Unclassified 98 PARAPHRASE OF TELEGRAM RECEIVED FROM: American Embassy, Paris, France DATE: May 1, 1939, 5 p.m. NO.: 868 FROM COCHRAN. This morning the French stabilization fund acquired a fair amount of sterling. There has been a weakening in French rentes and shares. On European markets there is a generally troubled air, lest pressure is brought to bear on Poland by Germany. There was a report in the press, which was confirmed to me by an official of the Finance Ministry, that France is today repaying on maturity the Dutch banking credit of 15 million florins which had been given to the French railways. There is a report in AGENCE ECONOMIQUE that yester- day evening the Finance Minister of Belgium, Gutt, came to Paris. The Amsterdam Stock Exchange Association in its annual report estimates that the total amount of Dutch capital invested in Germany is 970 million florins, and securities make up 550 millions of this total. 03V13038 BULLITT. paraj 1 YAM YIRJBAMAT oft N valid EA:LWW TERMIT ell of special 99 MAY 1939 original mp.118 Secretary Norgenthau Mr. Foley, Acting General Counsel You asked no to look into the question of the Treasury's making loans to the treasuries of foreign countries, which countries are not in defeult on the payment of their obligations to the United States. Under the provisions of Section 10 of the Gold Reserve Act set- ting up the stabilization fund "for the purpose of stabilising the exchange value of the dollar" and authorizing the daaling in "gold and foreign exchange und such other instruments of credit and securi- ties" as may be decemed necessary to carry out the perposes of the section, I balieve that there 1a legal authority for the stabilism- tion fund to make & loan to & foreign country if the loan may fairly be said to have the purpose and effect of stabilising the exchange value of the dollar in relation to the currency of that country. of sourse, there would be an important policy question in thus using the stabilization fund, and in view of your testimony to the congres- sional comuittees, you might wish to consult such committees before thus using the stabilisation funds I have also drafted legislation, & copy of which is attached, which would authorize the Secretary of the Treasury, with the approval of the President, to make loans to foreign governments not in default to the United States. (Initialed) 3. 2. P., 39. Regraded Unclassified BK187 Bx 187 Hanse TREASURY DEPARTMENT M 100 INTER OFFICE COMMUNICATION DATE TO Secretary Morgenthau May 2, 1939 FROM E. H. Foley, Jr. Attached is a memorandum in regard to your duties as a member of the National Munitions Control Board. I am also attaching, for your consideration, a draft letter to Huntington Gairns requesting him to attend in your behalf any meetings of the National Munitions Control Board at which you are unable to be present. E.N.7h. Attachments Unclassified 101 Secretary Norgenthan Bay 2, 1939 B. E. Foley, Jr. Attached is a memorandum in regard to your duties as a member of the National Hunitions Control Board. I an also attaching, for your consideration, a draft letter to Huntingtom Cairns requesting his to attend in your behalf say meetings of the National Sunitions Control Board at which you are unable to be present. Attachments EHF:s Typed 5/2/39 Regraded Unclassified NAD 102 MIMORANDUM Re: The duties of the Secretary of the Treasury as & member of the National Munitions Control Board. (a) The duties of the Board. The Secretary of the Treasury under the terms of the Neu- trality Act of 1937, is an ex officio member of the National Munitions Control Board. Act of May 1, 1937, 50 Stat. 131 (U.S.C., Sup. IV, title 22, sec. 245a, et seq.). The other members of the Board are the Secretary of State, who is Chairman and Executive Officer of the Board, the Secretary of Mar, the Secretary of the Havy, and the Sec- retary of Commerce. Meetings of the Board are convened by the Chair- man and are held at least once a year. 50 Stat. 124 (U.S.C., Sup. IV, title 22, sec. 245b(a)). The Board has the following specific duties: 1. The making of an annual report to Congress consisting of information and data collected by the Board and considered valuable in determining questions connected with the control of trade in arms, ammunition, and implements of war. Included in the report is to be a list of persons required to be registered under the Act as engaged in the business of manufacturing, ex- porting, or importing arms, ammunition, or implements of war. Also to be included is full information con- cerning the issuance of licenses for the exportation Regraded Unclassified 103 - 2 - or importation of arms, ammunition, or implements of war. Also to be included is information concerning licenses issued for the exportation of helium gas, together with such information and data collected by the Board and considered to be of value in the deter- mination of questions relating to exportation of helium. 50 Stat. 126 (U.S.C., Sup. IV, title 23, sec. 245b(j)); Act of September 1, 1937, 50 Stat. 885 (U.S.C., Sup. IV. title 50, sec. 165). 2. The recommending to the President from time to time of a list of articles which the President is authorised to proclaim as arms, ammunition, and implements of war. 50 Stat. 126 (U.S.C., Sup. IV, title 22, sec. 245b(k)). 3. The recommending of the issuance of licenses for the exportation of helium and the proclamation of general regulations governing its exportation. Act of Septem- ber 1, 1937, 60 Stat. 885 (U.S.C., Sup. IV, title 50, sec. 165). 4. To advise with the Secretary of State, as Chairman of the Board, and consent to regulations promulgated by him for the issuance of licenses for the exportation of tin-plate scrap. Act of February 15, 1936, 49 Stat. 1140 (U.S.C., Sup. IV. title 50, secs. 86-88). Regraded Unclassified - 3 - 104 Another duty less specific arises from the provisions of sec. 5(a) and sec. 5(f). Sec. 5(d) of the Neutrality Act makes it unlawful for any person to export or import any arms, ammunition, or implements of war without first having obtained a license therefor. Sec. 5(b) of the Act requires that persons engaged in manufacturing, exportation or importation of such arms, etc., shall register certain information with the Secretary of State. Sec. 5(c) requires the Secretary of State to issue a registration certificate upon payment of a registration fee and upon receipt of the information not forth in sec. 5(b). Sec. 5(f) provides as follows: "Licenses shall be issued to persons who have registered as herein provided for, except in cases of export or import licenses where the export of aras, amminition, or implements of war would be in violation of this Act or any other law of the United States, or of a treaty to which the United States is a party, in which cases such licenses shall not be issued." Sec. 5(a) provides in part: "There is hereby established a National Muni- tions Control Board (hereinafter referred to as the 'Beard') to carry out the provisions of this Act. . * . Except as otherwise provided in this Act, or by other law, the administration of this Act is vested in the Department of State. The Secretary of State shall premulgate such rules and regulations with regard to the enforcement of this section as he may deem necessary to carry out its provisions * * "," (Underscoring supplied.) Under the regulations issued by the Secretary of State he has taken upon himself the issuance of those export and import licenses, Regraded Unclassified 105 - 4 - Regraded Unclas apparently under the authority of that clause of 160. 5(a) which pro- vides that the administration of the Act is vested in the Department of State. April 5, 1938, 3 Fed. Reg. 690, 693. It may be noted in that connection that the Secretary of State is not expressly referred to in sec. 5(f) as is the case in secs. 5(b) and 5(c) where the Secretary of State is given the duty of issuing registration certifi- cates and of receiving the requisite information. The failure to designate who shall issue the licenses under sec. 5(f) of the Act should also be contrasted with 50 Stat. 885, which provides that the Secretary of State shall issue licenses for the exportation of helium, and with 49 Stat. 1140, which provides that tin-plate scrap can be ex- ported only by licenses issued by the President (Executive Order 7297 on February 16, 1936, delegated that power to the Secretary of State, as Chairman of the Board). On the other hand, the State Department undoubtedly has some functions in commection with the administration of sec. 5(f). It is just as clear that the National Munitions Control Board like- wise has functions in that respect since sea. 5(a) by its very terms contemplates just that. The authority of both, 80 far as the enforce- ment of sec. 5(f) is concerned, is derived from the same source, sec. 5(a). Under that provision, the Board is "to carry out the provisions of this Act"; the Department of State is vested with "the administra- tion of this Act". "No rule of statutory construction has been more definitely stated or more often repeated than the 106 - 5 - Regraded Unclas cardinal rule that 'significance and effect shall, if possible, be accorded to every word. As early as in Bacon's Abridgment, sect. 2, it was said that "a statute ought, upon the whole, to be so construed that, if it can be prevented, no clause, sentence, or word shall be superfluous, void, or insignificant." k parte Public Bank, (1928) 278 U.S. 101, 104; Accord: Ginsberg & Sons T. Popkin, (1932) 285 U.S. 204, 208. Admittedly, it is not easy to state just what the functional relation is between the Board and the Department of State: nor is it necessary to do 80 for present purposes. Suffice it to say that the Board has some functions in this respect which, at the very least, include a power to check activities of the Department of State which the Board believes to be contrary to the provisions of section 5(f). Surely the Board cannot "carry out the provisions of this Act" if it fails to curb practices which it believes to be contrary to the provisions of the Act. It follows that each member of the Board has the responsi- bility of bringing any irregularities known to him to the attention of the Board for appropriate action. In order to inform himself as to the legality of any particular practice, he is privileged, of course, to seek the legal advice of those charged by law with rendering him such advice. (b) General duty of the Secretary of the Treasury as a member of the Board. In MacDougall T. Board of Land Commissioners. (Wyo. 1935) 49 (2d) 663, 668, the court said (at page 668) : "It has been well stated that 'diligence, integrity and intelligent discretion, in the discharge of their 107 - 6 - duties, are required of the public officers, par- ticularly where the rights of the public my be jeopardised by their neglect, and their obliga- tion to the public is not discharged by a more perfunctory performance thereof.' It is likewise well settled that where the judgment of a board or commission is required, it must be the board that forms the judgment as the result of the members meeting and conferring with one another. Congress Bank & Trust Co. V. Brockett, (Conn. 1930) 150 Atl. 742; State ex rel. Baria V. Alexander, (Miss. 1930) 130 So. 754; State ex rel. Mayer T. Schuffenhauer, (Wis. 1933) 215 I.V. 767; Lee County 7. James, (Miss. 1937) 174 So. 76. The duties of the Munitions Control Board May be classified as owing primarily to the public, although in some respects the Board may owe a duty to particular individuals. See: Mechem's Public Offices and Officers (1890 ed.) secs. 591 and 592. (c) Who would be entitled to complain in the event that the Secretary should fail to perform his duty. (1) Congress. The Constitution, Article II, sec. 4, provides for removal from office on impeachment for and comvistion of treason, bribery, or other high crimes and misdemeanors. While there has been no judicial definition of the phrase "high crimes and misdemeanors", it would seem clear, as an original prop- osition, that the failure of the Secretary to perform so Regraded Unclassified 108 - 7 - small a portion of the aggregate of all his official duties would not constitute & high crime or & high misdemeanor. of. 3 Hind's Precedents of the House of Representatives (1907) secs. 2009-2024. However, there are, of course, other ways in which Congress could voice its disapproval. No legislation dealing with non-feasance in office has been found. (2) The President. It is clear that the President has the legal power of dis- missing one of his cabinet officers with or without cause. Meyers To United States. (1926) 272 U.S. 58; at. Humbrey's Executor T. United States, (1936) 295 U.S. 603. (3) Private individuals. It is well settled that a private individual, when an in- terest of his is affected, may by mandams compel a public officer to perform a ministerial daty. While mendams can- not be used to compel an officer to exercise his discretion in any particular manner, mandams will lia to compel an officer who refuses to do 80 to exercise his discretion. Wilbur To United States, (1930) 281 U.S. 206. (4) The Public. It would seem quite clear that a member of the general pub- lie could not compel, by legal means, performance by the Regraded Unclassified 109 - 8 - Secretary of his duties to the public. Mechem. supre, sec. 598. While it is obvieus that legal redress against a high public officer who is derelict in his duty is neo- essarily limited in scope, public criticism which is justly deserved may have important and far-reaching consequences. 110 TREASURY DEPARTMENT INTER OFFICE COMMUNICATION DATE MAY 2-1939 TO Secretary Morgenthau FROM Mr. Foley, Acting General Counsel Below is a comparison of the Treasury proposed foreign exchange Order and the British Order: Treasury Order British Order Prohibits: (Except under license) Prohibits: (Except as exemptions are granted by the Treasury) (1) All foreign exchange transactions, (1) Foreign exchange transactions transfers of credit between banking and transfers of credit abroad institutions here and abroad, and the (spelling out in more detail the export of any currency, coin or prohibited transactions); bullion; (2) All bank payments where a foreigner (2) The export of British currency, has an interest. gold, foreign currencies and securities. Exceptions are made for reasonable travel- Exceptions are made for reasonable ing expenses and other personal require- requirements of a trade or business, ments. performing a contract made before a fixed date, and defraying reasonable traveling or other personal require- ments. Requisitions: (1) Gold: Residents of Britain are required to sell gold to the government at market value. This provision does not apply to nonresidents of Britain and exception is also made for gold needed to perform contracts and for reasonable requirements of a trade or business. 111 - 2 - Treasury Order British Order (2) Non-British Currencies: Residents of Britsin owning cur- rencies other than sterling, which are designated by the Treasury, are required to sell such currencies to the government at the price fixed by the Treasury. (3) Securities: British residents owning securi- ties marketable outside of Britain are required, when requested by the Treasury, to sell the securities to the Treasury at a price to be fixed by the Treasury. Requires Reports: Requires Reports: Reports are required to be filed with British residents owning securities respect to all property situated in the marketable outside of Britain are United States in which a foreigner has required to report such securities. an interest. Reports are also required to be filed with respect to transfers of such property. Regulations: Authorized Dealers: The Secretary of the Treasury is Provision is made for authorized authorized to issue regulations to dealers in foreign currencies and gold carry out the Order. to act on behalf of the British Treasury. Searches: Provision is made for the searching of persons and baggage leaving Britain for any of the prohibited articles. E.N.FL. 112 CJ PLAIN LONDON Dated May 2, 1939 Secretary of State, RECEIVED 3:05 M p.m, Washington. 595, May 2, 6 p.m. FOR TREASURY FROM BUTTERWORTH. 1. The situntion regarding the war risk insurance of gold shipments to NEW York which arose out of the Brit- ish Government's action, reported in the 4th paragraph of my 484, April 14, 7 p.m., bringing into force the so-called pool agreement has now been definitely de- fined. Lloyds Underwriters have stated, after con- ferring with the Board of Trade, it has been determined that such insurance has to bE taken out in terms of sterling (not dollars) and that any compensation to bE paid will bE on the basis of the price ruling on the day after the gold would have arrived in NEW York, worked out on the number of fine ounces plus 2 percent, At the same time the Bank of England has informally intimated to some if not all of the banks doing an crbitrage busi- ness that in such an eventuality it would bE prepared to replace in London such gold for the amount of sterling the Regraded Unclassified 113 -2- #595, May 2, 6 p.m., from London the arbitrageur thus received. The ourrent reaction of the four largest American banks operating in London to this situation is as fol- lows: One is discontinuing arbitrage altogether, two are very decidedly reducing their arbitrage operations and probably confining such shipments to American boats and the fourth bank is prepared to operate C.B usual; despite the doubts of the others it regards the Bank of England's informal assurances as adequate protection, 2. Asked in the House of Commons this afternoon "whether in view of the uncertainty prevailing among members of the stock exchanges he would give an assur- ance that he does not propose to discourage transactions in foreign securities where vendor and purchaser are both resident within the United Kingdom, or the purchase abroad of securities of a British dominion Expressed in the terms of the currency of that dominion". The Chancellor of the Exchequer in reply referred to recent statements and added:"I can, of course, give no such assurance." By inference this gives his previous statement TE- corded in my 537, April 21, 7 p.m., more precision. 3. The appearance today of an article in the Midland Bank Review has focussed attention on the money market and the prospects of the British Government's cheap 114 -3- #595, May 2, 6 p.m., from London cheap money policy. MoKenna's contention that the British authorities have been backsliding into deflation, first, by starving the market of treasury bills in February and March, and secondly, by allowing bankers' cash to decline in March and April is widely discussed in the press. Before the appearance of this article the Chancellor of the Exchequer in reply to a question in the House of Commons yesterday as to whether the Government intends to keep rates of interest as low CS possible said: "There is no difficulty in assuring my honorable friend of that. The policy of cheap money as far as it is the result of Government action remains the policy of the Government. The circumstances which affect rates of interest are well known to my honorable friend and I have always felt in connection with this subject that it has to be remembered that London is one of the great financial centers of the world and that any attempt artificially to interfere too much in these matters would defeat the End in view. Subject to that I entirely concur with my honorable friend's remarks.' This statement is 30 guarded in tone that it can hardly bE looked upon as an assurance that interest rates will 115 -4- #595, May 2, 6 p.m., from London will not be allowed to rise further. Since the rise in the Treasury bill rate from just over 10S percent on March 17 to as high as pounds 1 118 2D on March 31 there has been much discussion of money market prospects, the consensus of opinion being that the various factors causing this movement were temporary in character. Though short money rates in the past two WEEKS have Ensed slightly the Treasury bill rate falling to pounds 1 4S 3 1/2D last week largely as a result of official purchases, credit conditions have continued tight and doubts have begun to be felt as to the temporary charac- ter of the rise. Meanwhile, gilt Edged securities which are, of course, also influenced by political factors have declined in price stendily, war loan closed today at 91 1/2 which gives a yield of about 3 7/8 percent. It will be remem- bered that the Munich low was 93. As McKenna points out in his article, the clearing banks have been com- pelled to sell Government bonds to keep their cash and bill ratios at the customary levels. They have also tended to maintain more liquid positions than usual in the fact of international political tension and the fact that between October 1938 and March 1939 the clearing banks had sold pounds 34 million of their investments cannot 116 -5- #595, May 2, 6 p.m., from London cannot bE attributed entirely to their starvation of bills and cash since in part this movement was dictated by the abnormal desire for liquidity. There is no doubt, however, that these sales have tended to weaken the gilt Edged market and the future course of interest rates is so important to the Government, in the face of armament borrowing prospects, that SOME concern is being Expressed CB to the situation. Yesterday's disbursements of pounds 11 million in interest on 4 percent funding and 5 percent conversion loans will tEnd to E.SE the credit situation and accord- ing to the TIMES city Editor "may bE found to have given permanent relief unless further large foreign withdraw- als should once again upset the position". This writer goes on to comment as follows: "Whether it is correct to argue that the authorities should have prevented the squeeze which developed between mid March and mid April is another matter. If the authorities had been liberal buyers of July bills at an sorlier stage, three WEEKS ago, certainly the squeeze might have been less sharp. But is it, it may bE asked, the right policy for the authorities to give the market the impression that any crisis can bE ridden without strain?" It 117 -6- #595, May 2, 6 p.m., from London It would seem that the British authorities could, if they deemed it desirable, maintain short term rates at the cheap levels prevailing before the middle of March but that they feel that SOME of the Effects of the present tension should bE actually felt in the market. The problem from now on will evidently bE to harmonize this policy with the needs of crmament borrowing and the interests of the taxpayer. 4. For no ascertainable reason the London Stock Exchange was firmer today, also for the first time in WEEKS the Bank of England acquired dollars today. When the market opened the British authorities intimated that they would SELL dollars at 4.68 1/8 but Lazards in London and Paris both offered dollars in fairly substan- tial quantities and eventually the rate went to 4.68 5/16 at which point the British authorities intervened to hold it. The exchange dealers assume that this action by Lazards was due to the extent of their long dollar position. 53 bars were sold at gold fixing of which 29 WERE married and Rothschild was the only buyer. KENNEDY BECEINED KLP offi S VaM THEMTHA930 YOU?AIRT notwork 1 to not patient will of taulaices call 118 TREASURY DEPARTMENT INTER OFFICE COMMUNICATION DATE MAY - 1939 TO Secretary Morgenthau Mr. Foley, Acting General Counsel FROM You asked me to look into the question of the Treasury's making loans to the treasuries of foreign countries, which countries are not in default on the payment of their obligations to the United States. Under the provisions of Section 10 of the Gold Reserve Act set- ting up the stabilization fund "for the purpose of stabilising the exchange value of the dollar" and authorizing the dealing in "gold and foreign exchange and such other instruments of credit and securi- ties" as may be deemed necessary to carry out the purposes of the section, I believe that there is legal authority for the stabiliza- tion fund to make a loan to a foreign country if the loan may fairly be said to have the purpose and effect of stabilising the exchange value of the dollar in relation to the currency of that country. of course, there would be an important policy question in thus using the stabilization fund, and in view of your testimony to the congres- sional committees, you might wish to consult such committees before thus using the stabilisation fund. I have also drafted legislation, a copy of which is attached, which would authorize the Secretary of the Treasury, with the approval of the President, to make loans to foreign governments not in default to the United States. E.N.Th. Regraded Unclassified 119 ABILL To authorise the Secretary of the Treasury to make certain foreign loans, Regraded Unclassifi and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That whenever the Secretary of the Treasury, with the approval of the President, shall find that such action will (1) contribute to the resteration of order in international economic relations; (2) facilitate international monetary equilibrium and encourage the mainten- ance of adequate monetary reserves; (3) stabilise the exchange value of the dollar; or (4) encourage and facilitate increased exports and imports and the exchange of commodities between the United States and other countries, the Secretary of the Treasury, with the approval of the President, is auth- orized, on behalf of the United States, from time to time to lend to any foreign government which is not in default in the payment of its obligations or any part thereof to the Government of the United States, money, including gold and silver, upon such terms and conditions as the Secretary of the Treasury, with the approval of the President, may deem reasonable and appro- priate and in the public interests Provided. however, That the total amount loaned hereunder (gold and silver to be computed at the market value thereof at the time of the loan) shall not at any time exceed in the aggregate $500,000,000, and that the total amount loaned to any one government shall not at any one time exceed in the aggregate $100,000,000; and Provided. further, That at least fifty per cent of the amount loaned hereunder or the proceeds thereof shall be used for purchases of goods or services in the United States; and Provided. further, That such loans shall mature within ten years from the date thereof and shall bear interest at a rate not less than the rate borne by the then last-issued obligations of the United States having & substan- tially similar naturity. See. 2. The authority herein conferred shall expire 062 June 30, 1941. 120 May 2. 1939 Tot the Secretary From: Mr. Hance The President has asked you to leak into the matter of business consections of Collectors of Internal Revenue. I am advised w the Buroom that they have no information in their files which will show the extent of the business affiliations of the Cellectors. They advise se, beverer. that they can get this information by sending out question- naires to the 64 Cellectors. It is their opinion that more than half of these Collestors have other business affiliations. I have advised the Bureen to do nothing further until you have had a chance to discuss this matter again with the President. (Initialed) J.W.H. JUH:JR out to Secy at home 5/2/39 TREASURY DEPARTMENT 121 INTER OFFICE COMMUNICATION DATE May 2, 1939. TO Secretary Morgenthau FROM E. H. Foley, Jr. For your information The members of the Subcommittee of the Senate Banking and Currency Committee handling our monetary legislation are: Carter Glass of Virginia, Chairman Alben W. Barkley of Kentucky James F. Byrnes of South Carolina; John H. Bankhead of Alabama Alva B. Adams of Colorado Prentiss M. Brown of Michigan William H. Smathers of New Jersey John E. Miller of Arkansas John G. Townsend, Jr., of Delaware Robert A. Taft of Ohio We can count Senators Barkley, Bankhead and Smathers in favor of the legislation and Senators Glass, Townsend and Taft opposed to it. From all indications, Senators Byrnes, Adams, Brown and Miller are either doubtful or opposed to the continuation of the power to revalue the dollar. While Senator Byrnes has attended no hearings of the Sub- committee, it is possible, because he has been so closely associated with the White House on the Reorganisation Bill, that he might be willing to go along. I know Senator Byrnes quite well and would be glad to talk to him if you think this is desirable. Senator Brown has worked closely with us on our legislation to eliminate tax exemption privileges from public salaries and public securities. Either Mr. Hanes or Mr. Wenchel who have worked rather closely with Senator Brown in connection with this legislation could talk to him. Senator Miller is the former Governor of Arkansas and should be interested in public works or bureau of public road projects. Perhaps the President could do something with him. Bernstein and I talked to Senator Adams about his doubts as to the constitutionality of the delegation to the Chief Executive of the power to revalue the dollar. I an convinced that his doubts in this direction are merely a facade to cover up his unwillingness to continue this power because he believes it has an unsettling effect on business. I feel less optimistic about Senator Adams than any of the others. Perhaps Senator Pittman might be willing to talk to Senator Adams because of Senator Regraded Unclassified 122 - 2 - Pittman's interest in the silver phase of the legislation. Early this winter when Senator Pittman came to Mr. Taylor's office he expressed a doubt as to the ability to purchase newly mined domestic silver at a price higher than the world price under the Silver Purchase Act, but was convinced that this could be done under the Thomas Amendment. It is the continuation of the Thomas Amendment that is involved in the monetary legislation now before the Senate Subcommittee. E.N.FL. 123 May 2, 1939 10:18 a.m. Sumner Welles: I hope you had a good weekend. HMJr: Very nice. W: Not too many festivities? HMJr: Well, I've gotten 80 that I can say "Royal Highness" without stuttering. W: (Laughter) Before I know it you'll be bowing and Mrs. Morgenthau will be curtsying. HMJr: No. Bowing, but not curtsying. W: I wanted to speak to you about the meeting that you were good enough to say that you had planned. I've got to have one more conference with our own people on this Nicaraguan thing which I'm going to have this morning. HMJr: Yes. W: And I think it would be better if I could meet with you and the rest of the people that you want tomorrow morning instead of today. Is that convenient for you? HMJr: Just a minute. Well, I'll make it convenient. What time, 80 I can switch my appointments around? W: What time -- the best time for me would be early in the morning tomorrow. HMJr: Well, I don't know what you call early. W: Well, say nine thirty. HMJr: No, I could -- I could make it ten. W: Ten o'clock tomorrow. HMJr: Yes. W: That'll be fine. I'll arrange for our people to be over there then and I'll be over at that time. HMJr: Now, when you come over, or unless you want to do it before, there's a question of notifying the Italians about the cocoons the President keeps referring to - the silk countervailing duties. - 2 - 124 W: Yes. Well, let me speak to you about that in the morning. HMJr: Will you? W: Yes, indeed. HMJr: Because the President hasn't told the -- Hanes all about it, that we had done it. W: Um-hm. HMJr: He told him yesterday. But you can talk about it tomorrow. W: Yes. HMJr: And I mentioned it to him and I -- I think you'll find he wants to do it now. W: Well, I think we ought to give them thirty days. HMJr: Yes, that's the point, but I think W: Yeah. HMJr: the thirty days should start right away. W: All right. Well, I'll speak to several of our people this morning and I'll be ready for you on that in the morning. HMJr: Thank you. W: All right, thank you, Henry. I'll be over at ten then. HMJr: Right. W: Good bye. 125 May 2, 1939 10:29 a.m. HMJr: Hello. Leon Henderson: Hello, Mr. Secretary. HMJr: Leon? H: Yes. HMJr: Henry Morgenthau. How are you? H: Pretty fair. HMJr: Leon, in going over a very important document with the President yesterday he said he'd like me to show it to you. H: Um-hm. HMJr: And see whether it's in tune with your last job. H: Um-hm. HMJr: Now, what are you doing around three o'clock? H: I'm at your convenience. HMJr: Will you come to my office? H: Sure. HMJr: And -- this 1s just between the two of us and the President. H: All right. I'll be there at three o'clock. HMJr: You better allow an hour. H: All right, fine. HMJr: O. K. I'll be glad to see you. H: I'll be glad to see you too, Henry. HMJr: All right. H: Good bye. May 2, 1939 126 10:32 a.m. Operator: Go ahead. HMJr: Hello. Bill Myers: Hello, Henry. HMJr: Hello, Bill. M: How are you this morning? HMJr: I'm all right. How are you? M: All right. Henry, the best man in Farm Credit 18 Hill. Of course you know that. HMJr: Yeah. M: The next best man -- and I've looked -- I've thought over the national picture -- 18 Esgate. HMJr: Esgate? M: I have no reservations about him. The only difficulty is that he ought to have a career job if you can protect him. HMJr: I Bee. M: He feels sensitive about his boy's handicap. HMJr: Well, I can't guarantee him any career job. M: Well, I know that. We put him -- I took him from -- from the Deputy Governor and made him a -- head of the Mortgage Corporation. He's doing a swell job, but -- he's the same sort of a fellow as Danny Bell, only not quite such a nice personality. HMJr: Because I can't guarantee anybody that comes in anything as assistant secretary. M: I -- I realize that. HMJr: What about Brennan? M: Well, Brennan is all right. He's shrewd and he's amb1- tious and he's able. Of course, Brennan might take it because Brennan's life ambition is to get in -- don't laugh -- to get on the Federal Reserve Board. 127 - 2 - HMJr: Well, would I want him here if that's what he's working towards? M: He's been working towards that for years. Well, you know George, and I know him. He's a good administrator; he's loyal and he's shrewd. HMJr: Has he got -- how about financial judgment? M: He's got good judgment. He's a good credit man. HMJr: Uh-huh. M: He's -- he's been interested all his life in livestock credit, but he likes the -- the banking business. He likes the association with big bankers. HMJr: Well, would you trust him? M: Yes. HMJr: But not sure, huh? M: Yes, I'm sure. He -- he's -- he likes to finagle politically. HMJr: Yeah. Would you call him a New Dealer? M: (Laughter) What do you call me? HMJr: You? M: Yeah. HMJr: With reservations, yeah. M: Well, I'd put an extra reservation or two in. HMJr: I see, I see. M: He's -- he -- of course, you know he's a nephew of that Chicago Brennan -- that -- that political leader. HMJr: Well, that was Indiana. M: All right. HMJr: And he's dead, isn't he? M: All right. - 3 - 128 HMJr: Politically. M: Say have you ever -- I want to make one more suggestion. Have you thought of Charlie Mylander? HMJr: I don't know him. M: Well, it's C. H. Mylander -- M-Y-L-A-N-D-E-R. HMJr: Yeah. M: He's Vice President of the Huntington National Bank of Columbus, Ohio. HMJr: Yeah. M: He's been on the committees of the American Bankers Association. He's between 45 and 50; he came into bank- ing from the Public Relations publicity end. HMJr: I see. M: He is free to move -- and he's -- he is -- has a very good personality. He would -- I tell you who would know him very well -- that's Tom Smith and Bob Fleming. HMJr: I see. M: Both of them have worked with him on committees of the A.B.A. HMJr: How do you happen to know him? M: Well, he's -- he's a friend of the Senator from Ohio and he's -- I appointed him on the Board at Louisville HMJr: Oh, yes. M: ......and he's done a good job. Now, I don't know how much water he'd draw as a banker. HMJr: I see. Well, that isn't as important as can he hold his liquor. M: Yes, I think 80. HMJr: Yeah. But you -- you think that's -- he's worth looking into? - 4 - 129 M: I think he's worth looking into. HMJr: The other one of your Farm Credit prospects don't sound so good, do they? M: Not from your standpoint, Henry. HMJr: No. No. M: I wouldn't have any question, as I say, about Esgate, if he'd be willing to take it. HMJr: Right. M: I do have a reservation or 80 about George Brennan, be- cause he's -- he's -- he doesn't get down and work hard himself, and sometimes a fellow has to. HMJr: Yeah. Well, I'm ever Bo much obliged and you're going to be in Monday? M: Yeah. HMJr: Fine ! M: Could -- would there be a chance of seeing you first thing in the morning? HMJr: What do you call the first thing? M: Well, a quarter of nine, or eight thirty, or nine. HMJr: Oh, you're coming in M: I'm coming in Pennsylvania at eight o'clock. I wrote to you and I -- you don't need to give me an answer now, but HMJr: Yeah. Well, I -- let me think -- you did write me? M: Yeah. HMJr: Okey-doke. M: Sorry I can't help you more, Henry. HMJr: All right. Good bye. 130 GROUP MEETING May 2, 1939. 11:00 A. M. Present: Mr. Hanes Mr. Gaston Mr. Bell Mr. McReynolds Mr. Gibbons Mr. Graves Mr. Lochhead Mr. Foley Mrs. Klotz Mr. Haas Mr. White Mr. Duffield H.M.Jr: Good morning. I don't want you people to think I only play around with royalty. You want to get Mr. White or Mr. Hanes to tell you what kind of a huntsman I am. One shot - a bull's eye. I'll let them tell you in their own peculiar fashion. White: I'd rather not tell it while you're around. H.M.Jr: That's what I thought. All I want to say 1s, while I was stalking this animal of the cat family, my Treasury assistants stood on the top of the hill. Nobody came to my rescue. That's all I want to say. The cheering section was only a hundred yards away. White: I'm going to give an impressionistic view of that episode, Bo I don't want you there. H.M.Jr: I just want you to know that the Treasury, when it comes to hunters - they stay on top of the hill; I've got to go down in the valley. McR: Ought to be more choicy in whom you take with you among the Treasury family. H.M.Jr: Also I was told by the President of the United States yesterday that I'd lose my job if I didn't get him a Post Office in Hyde Park. Gaston: Told it publicly, apparently. 131 - 2 - I H.M.Jr: Farley said, "No appropriation from the Post Office. If So I said, "Well, that was to balance the budget, and I'm no longer interested." (On phone) Hello. (Conversation with Congressman Doughton follows:) 132 May 2, 1939 10:55 a.m. HMJr: Hello. Operator: Mr. Doughton is in a committee meeting. They'll call him out and have him call you. HMJr: Thank you. 0: Right. 11:02 a.m. Robert Doughton: Mr. Doughton. HMJr: Hello, Bob? D: All right, Henry. HMJr: How are you? D: Excellent. Perfect, BO far as health is concerned. How are you? HMJr: I'm all right. D: Good! When did you get back? HMJr: I got back a few minutes ago and I put in a call for you. D: Well, I've been around here since pretty early. HMJr: And -- well, I Just got -- I flew in from Duchess County this morning. D: How's that? HMJr: I came -- I -- I came in by aeroplane this morning from Hyde Park. D: Well, I'm glad you made a safe landing. in HMJr: Now, Bob, I read all about/the papers that the Hill says we've got a program and then you -- this and that and the other thing. D: Yeah. 133 a I # HMJr: When do you think your committee will be ready to hear me? D: Well, it's the hardest matter in the world to say. We're not making the progress we ought to with this Social Security. HMJr: Yeah. D: I would think -- after we get -- my own individual thought is, while I haven't discussed it with my committee -- members of it -- that when we get -- finish our work in executive session, agree on what we want in this -- in the way of amendments to the Social Security Act, it will then take our experts at least a week to draft that in legislative form. And while they are drafting that -- before we brought it down to the House, my thought was we could hear you. HMJr: When would that be? D: Are you ready? HMJr: Now, this is just between -- strictly between the two of us, you see? D: Yeah. HMJr: And -- and no -- I haven't talked to another living soul on the Hill. D: Yeah. HMJr: I think I could be ready Monday. D: You think you could be ready Monday? HMJr: Yeah. I am ready - I left it with the President yesterday. D: How's that? HMJr: I left the program with -- I left the suggestions with the President yesterday. D: Well -- are you hopeful to getting his concurrence, if I may ask? HMJr: Yes, I'm very hopeful. D: Huh? 134 - 3 - HMJr: I'm very hopeful. D: You are? HMJr: Yes. D: Well, that'll -- that'll be a wonderful thing for us, you know. That'll -- that'll clear the decks 80 that we'll know what to start -- what we're starting with. HMJr: Well, what I'm trying to get, just between you and myself, supposing that I got a clearance from the President, say by Thursday -- or even Friday -- could I call you up and say it's all right and that D: Of this week? HMJr: Well, too I mean, if I knew Thursday or Friday, would that be D: Yes, you call me any time. HMJr: Would that be too late to be, say, invited up there Monday? D: To be invited Monday? HMJr: Yes. D: No, it wouldn't be too late, but I don't believe we'll be ready to invite you Monday. HMJr: You don't? D: No, I don't. We might do this -- we -- if you wanted to have a conference with a few of us, we might get together some evening or sometime. It has been -- some suggestion -- I think maybe it came from Mr. Hanes -- that maybe you'd like to get together with Senator Harrison, and Jerry Cooper and just three or four of us and talk over the program before it went before the committee. HMJr: I see. D: Have you thought about that? HMJr: Yes. D: Well, if -- what's your thought on this 135 - 4 - HMJr: Well, I -- I think we'll cross the bridge with the White House first. D: How's that? HMJr: I want to -- I want to come to an agreement with the President first. D: Well, that's -- that's the important thing of all. HMJr: And once he and I have come to an agreement, I'll give you a ring. D: You'll give me a ring and we'll decide on our strategy then. HMJr: That's right. D: That'll be fine. I'd run down any time to talk it over with you and Mr. Hanes. HMJr: Yeah. D: And then as to when -- just when we could arrange for you to come before the committee, now I couldn't tell about that, but I'd be glad to know your program as soon as you reach an agreement with the President. HMJr: But in any event, you're not waiting on me. D: Oh, no, we're not waiting on you. HMJr: All right. D: We're not waiting on you, but of course, any time that -- you see, we can't take up any active work on it until we get through with this -- we get through with this Social Security. But if we knew what it was, why we might get in -- we might get in a little time on it while the drafting service 18 working on our bill. We want to economize on time all we can. It's a shame how slow we're getting along, but I just can't rush it any more than I am. HMJr: Well, I'm going to try to shoot for Monday. D: How's that? - 5 - 136 HMJr: I'm going to try to get everything ready for Monday. D: So you'll be ready? HMJr: Yeah. D: Well, would you -- you haven't decided yet when you're going to have a -- when you find our just where you stand.... HMJr: Yeah. D: ......and what you've agreed on -- whether or not -- what you're going to recommend. HMJr: Yeah, because I don't know what the President may do. He may want to sit in on the conference. D: Well, that's what I thought. Maybe -- that's what -- I think Mr. Hanes had that in mind. HMJr: He's a good man. We don't want to keep him out. D: Who's that? HMJr: The President. D: Fred? HMJr: No, the President. D: Oh, we can't leave him out of anything unless it's under- stood, you know. HMJr: Yeah. D: Yeah. Well, whenever you get your matters clear with him... HMJr: Yeah. D: You call me and then we'll decide what's the next move. HMJr: Yeah, but this conversation, now, is Just between the two of us. D: I understand absolutely. HMJr: O. K. D: I won't pass it on to a single living soul. 137 - 6 - HMJr: That's right. D: All right. HMJr: Right. D: Thank you very much. HMJr: Good bye. D: Good bye. 138 - 3 - Bell: Somebody watch the ticker. H.M.Jr: Countess Von Reventhlow said to me last night when I sat next to her that her father was a diplomat. She's Lady in Waiting to Her Royal Highness the Crown Princess of Denmark. I've learned my lesson. And, as the Countess Von Reventhlow said to me, her father trained her when she was a child - he said, "If you've got something that you want to tell somebody and you find that you have to say - get this, Johnny, this is a good story - If If you've got to say, 'please promise not to tell it to anybody, don't tell the story. And I've always followed that. My father said that if you've got to get a promise. out of a person not to repeat it, don't tell the story." White: Thereupon you told her the Scotch story. H.M.Jr: No, thereupon she started asking me a lot of questions she had no business to. I didn't ask her to make any promise, I didn't tell her any- thing. She's a smart girl. The Crown Prince is just about as - well, he needs a wife and a Lady in Waiting to make up for his shortcomings. Gibbons: You mentioned Bob. Bob Wagner called on Thursday and wanted to catch up with you. I didn't talk to him since. H.M.Jr: Well, we'll get hold of him too. Johnny, you got anything? Henes: Not B. thing. H.M.Jr: Mr. Gaston? Gaston: Mr. Knoke called Archie Friday and said that they wanted to establish a new practice about giving out information on gold; that they proposed to give out daily all the arrivals of gold and weekly the net change in earmark. He suggested that Knoke talk to me. Knoke didn't talk to me, but I got a letter from the other man which was dated Friday - I received it today - Roehlse in which he tells Regraded Unclassified 139 - 4 - what they propose to do. He doesn't ask our consent. This morning the figures are in the Times on the new basis. H.M.Jr: Well, you and Archie aren't going sissy on me. Can't you take care of your own gold statistics? Gaston: We can't control the Federal Reserve. H.M.Jr: Yes, you can. All you've got to do is tell them. Gaston: They just go wild. H.M.Jr: Just fix up a letter. Tell me what you think I should write and I'll write George Harrison a letter. Lochhead: Bernstein ought to be in on that. H.M.Jr: While you're at it, I wish you'd please take a look at all these gold statistics the Department of Commerce gives out. I mean anybody trying to follow it - by the time you read Commerce, Federal Reserve in New York, Federal Reserve Bulletin in Washington, Treasury Bulletin, it's enough to make anybody cockeyed. Lochhead: Well, the Department of Commerce gives out figures once a week. H.M.Jr: Look, gentlemen, I don't want to - you've got Mr. Gaston, Mr. White, and an attorney, and Mr. Lochhead; between you, get together and give me a letter, will you? Gaston: Yes, I think that's right. I think you should sign a letter to Harrison. H.M.Jr: Well, I'm not going to fuss with it, but I mean I'll sign a letter. Anything else? Gaston: The National Emergency Council, as you know, 18 doing a series of broadcasts of Cabinet officers. They began with the President. They are recorded on discs and shipped out around the country. They have recorded the President, Secretary Hull, Attorney General Murphy and Mr. Hopkins. They'd 140 - 5 - like to record you sometime this week if you could find the time, at any hour to be selected by you. And there's a draft here that you can look at if you want to do it. H.M.Jr: Well, do you want to send it up to the house? Gaston: I'll be glad to send it up to the house, yes. H.M.Jr: If the tax statement remains as good as it 18, why, maybe we can give part of that or something on it, just to give them something instead of a lot of blah-blah. Gaston: Of course, the pattern of these others 1s simply describing the routine functions of the Department - no news in them whatever. The thing may be broad- cast any time between now and the end of this year. It will not have timely broadcasting, or may not have timely broadcasting. Bell: They're educational programs. H.M.Jr: Now, you people overheard this tax thing, and again I can't overemphasize the fact that I am in one of the most delicate positions I have been with the White House on this tax matter, and I want to caution everybody: they don't know anything about it, don't know when I'm going up on the Hill, don't know what the condition of it 1s, don't know anything. I'm not in conference with anybody. The Tribune has a story this morning and they have an editorial, and it all just makes my position that more difficult. White: The Post had a story. I didn't see it. Gaston: Associated Press story. They all had it yesterday afternoon and this morning. H.M.Jr: Please, everybody, just play dumb. I mean I can't help it if the newspapermen get sore. I don't care. Gaston: They haven't been getting any help from us. H.M.Jr: I wouldn't try to help them. 141 - 6 - Gaston: I noticed the announcement in the Star that you are to make a speech before the Military Surgeons next Monday. H.M.Jr: Militant Surgeons? Gaston: Yes. H.M.Jr: Do I know anything about it? Gaston: Apparently arranged by Dr. Parran. Dr. Parran and you are to address the army surgeons on Monday, according to the Star. McR: He's the president of the association that's meeting. H.M.Jr: I don't know anything about it. What do you talk to Military Surgeons about? McR: I was wondering how you happened to be talking. I supposed it must be right if it was in the newspaper. H.M.Jr: No. Gaston: Are you sure that in an off moment you haven't accepted this engagement? H.M.Jr: No. (Hearty laughter) It's possible. Johnny, there are two things. There's one from J. Thomas Heflin - "Be delighted to have the appoint- ment of Internal Revenue Collector for Birmingham." You know anything about it? Hanes: Tom Heflin? No. He's talking about that new de- centralized office which I guess was - the announce- ment was made that Birmingham is going to be the headquarters for that southern division. He probably wants to get it. Gaston: We're giving out a story today about the staff for the Birmingham office. 142 - 7 - Hanes: The staff has already been chosen, as I understand it. Gibbons: Civil Service anyhow. McR: It's all Civil Service; no appointments to be made at all. H.M.Jr: And then the President writes me: "Collectors of Internal Revenue must get out of business just like the deputies. Do we have # - he doesn't say what - If do we have Collectors of Internal Revenue in private business?" Hanes: In private business? H.M.Jr: Yes. Hanes: Never heard of one, did you? H.M.Jr: Well, they are. Oh, sure. Graves: They're not supposed to be actively. H.M.Jr: Well, in order to - of course they are. I mean look at your one in New York, Jim Hoey. Gibbons: Jim Hoey 1s - you ought to have his business. H.M.Jr: Well, would you do this, Johnny, so I can answer the President. Would you please find out, and then I can talk to him about it. Hanes: Can I take that? H.M.Jr: Yes. Klotz: I'll have it photostated. Hanes: Heflin wants the job himself. H.M.Jr: I don't know what he means. But our Collectors of Internal Revenue are in business; no question about it. McR: Yes, many of them are. 143 - 8 - Hanes: I thought that was against the law, to be in business and take H.M.Jr: Well, Mrs. Klotz will send you in the memo on it. I don't know what he has in mind, but I'd like to go over it. Duffield: When you went away, we had to postpone that ques- tion of what to do with the various banking bills. Can we know what we are to do with them sometime or other? H.M.Jr: Well, Mr. Hanes - we were both of us rushed. Now, I'm free at 2:30 if you want to do it. I'm not crazy about doing it, but do you want to talk about banking legislation? Hanes: You had all the information. We were Just going to hear from you. H.M.Jr: Yes. Well, do you want to talk a little bit about it? Hanes: Suits me anytime. H.M.Jr: 2:30. What? Hanes: Yes. H.M.Jr: If you've got a letter for me, if I'm to write a letter - anybody who is in on the banking, if they'll be here at 2:30. Have you got a letter for me? Duffield: On the Brown bill. I don't know whether it's all right. I don't know what we want to do. H.M.Jr: I'll tell you now, just keep it to the Brown bill. Duffield: Don't say anything about banking legislation in general. H.M.Jr: No, because the President doesn't want to shut the door. It's all right to write on the Brown bill. He didn't even know what it was, isn't even interested. 144 - 9 - Duffield: I'll have that letter ready for you at 2:30. H.M.Jr: All right. Duffield: That's all I have. H.M.Jr: George? (Haas hands H.M.Jr. various material) Have you touched particularly on commodities? Haas: Yes. That's a very interesting situation there. We're doing some more work on it this week, going to have some more. I mean particularly the relation- ship between the British situation and ours. Seltzer went up to see the automobile people yes- terday. Knudsen couldn't see him because he was out of Detroit; he was in New York at a Directors' meeting. But he saw Keller. And the G.M. people feel about as they did the last time he was up there. And Keller's unbridled optimism - still optimistic, but not quite as optimistic as he was before. H.M.Jr: Well, Keller has gone to a four-day week. Haas: Huh? H.M.Jr: Keller has gone to a four-day week. Hass: I hadn't seen that. H.M.Jr: Well, I did. Haas: The figures on that - well, he's working up some reports. He just got in this morning. I haven't had much chance to talk to him. The crucial sales figure of Chrysler - - I mean for the last week - will not be available until today at 3:00 o'clock, and we'll get those over the telephone; whereas, General Motors' comparable figures will not be available until Thursday. So we'll give you this report and we'll follow it up when the other figures come in. 145 - 10 - H.M.Jr: Watch your commodities now, will you, very closely; you've got a commodity man back there. I mean let him Haas: You might be interested - we're taking out the in- dividual ones that make up these indices to 800 just which ones are rising over there more rapidly. H.M.Jr: I wish you'd talk to somebody over in Agriculture, because this man saying that wheat 1s only going up because of shortage of cropsis Just silly. I wish you'd talk to the best wheat man over in Agriculture. Who's buying the wheat? That's what I'd like to know. Haas: The sugar situation is very interesting. They're storing it - war stores, you know. H.M.Jr: That's the stuff I want to know. And I'm interested in wheat. I mean when I was in Farm Credit I could find out from them who was actually buying the wheat and where it was shipped. I want 24-hour service on that, George. Haas: O. K., I'll do it. H.M.Jr: (To Foley) Yes sir. Foley: Congressman Thomas F. Ford of California, who 1s a member of the Banking and Currency Committee, has written a letter about some legislation to take over the stock of the Federal Reserve member banks, and wants to know what effect that would have on the ownership of the fifteen billion dollars of gold, and 80 on. It isn't clear from the letter just what he has in mind. If it's all right with you, I'll ask one of the boys to drop in and find out what's bothering him. H.M.Jr: All right. Foley: The Attorney General is still away, up in New York. He 1s expected baok sometime today. Jim Morris 18 recommending, in view of our recommendation on the Annenberg Case, that it be presented to a Grand Jury for investigation. He feels that there 1s a good deal of evidence of irregularity, but he 146 - 11 - doesn't think that the case has been investigated sufficiently to establish evidentiary facts to prove criminal intent. However, he believes that such intent may be developed by Grand Jury investi- gation and he is 80 recommending to the Attorney General. Now, that would mean that our people would have to continue to work with their people both before it is presented to the Grand Jury and after indictments are obtained and before the case 1s actually tried. But that is in line with our thoughts on the matter before it was turned over to the Department of Justice, BO I think we're all right. H.M.Jr: Well, we're through other than requests from them for cooperation. The responsibility is the Attorney General's. Foley: It's his responsibility, that's right, but I think he's going to ask that our people in the field continue to work H.M.Jr: That's all right. Foley: with them in developing the case. H.M.Jr: But be awfully sure on your records about requests and everything else. I mean I've been through this before. Foley: Well, there hasn't been anything formal, Mr. Secre- tary. It's simply been telephone conferences between Jim Morris and myself. H.M.Jr: Well, I read in the papers since I've been gone that the Attorney General announced he was going to present this to the Grand Jury - been on the radio and everything else. Foley: Well, the matter hasn't been submitted to him AS a result of those conferences, Jim Morris tells me. H.M.Jr: Well, there is the clipping - look it up for me in the papers, will you, Herbert? I'm under the 147 - 12 - distinct impression that the Attorney General said he wasn't going to present it to the Grand Jury. Gaston: Grand Jury? H.M.Jr: Yes. Gaston: The last I saw he said was that that these con- ferences - that there didn't seem to be much hope of compromise of the case as the result of the conferences with Annenberg and his representatives. H.M.Jr: Well, I mean Gaston: I'll get out the clippings for you. H.M.Jr: But please remember it's his responsibility. Foley: O. K., sir. H.M.Jr: Right, Johnny? Hanes: Right. Foley: I've been keeping in touch with J1m Morris to find out how the matter stood over there, but no action has been taken by them since we formally submitted the case to them. H.M.Jr: I again say it's his responsibility. Foley: Yes. H.M.Jr: Anything else? Foley: Senator Wagner says that Glass 1s holding back in connection with our stabilization continuation, and I thought maybe you might want to think about giving Senator Glass a ring and talking to him about it on the telephone. H.M.Jr: I'll ask Bob Wagner what I should do. Foley: I think he'd like a telephone call from you. H.M.Jr: (On phone) Senator Wagner of New York, please. 148 - 13 - Foley: I have that legislation you asked for over the telephone the other day. H.M.Jr: Oh. Foley: The last paragraph on the first page, sir. H.M.Jr: O. K. Foley: Here's a brief comparison of the British currency control order and our order, together with our conference with Bewley - Archie and Bernie and I. And here's a brief - here's a discussion of your duties as a member of the Munitions Control Board. H.M.Jr: I want that for lunch today. Foley: And a letter designating Cairns to represent you when you are not available. H.M.Jr: (On phone) Hello. (Conversation with Senator Wagner follows:) 149 May 2, 1939 11:23 a.m. HMJr: Hello. Operator: Senator Wagner. HMJr: Hello. Robert Wagner: Hello. HMJr: Hello, Bob? W: Hello, Henry. HMJr: How are you? W: Oh, pretty fair. How are you? HMJr: I'm fine. W: Good! You always are. HMJr: Oh? W: Say, it's funny that you called up -- I called up -- HMJr: Well W: Or didn't you get a note that I called up last week? HMJr: Well, Steve Gibbons W: I called up and you went up to -- up to the country, and I said, "That's where all gentlemen should be." HMJr: That's right. W: Yeah. HMJr: Well, we've got to look after these Royalties -- help them make the New York Fair pay for itself, you know. W: You bet your life! HMJr: You can't leave it all to Grover Whalen. W: (Laughter) Well, he's got it pretty near all, hasn't he? HMJr: So they tell me. - 2 - 150 W: So I see. Ed -- or -- Ed Flynn 18 getting into the pic- ture at least anyway. HMJr: Yeah. W: I didn't get to the Fair -- I know you did. HMJr: No, I didn't. W: Oh, did -- did you duok it? HMJr: I'm going to wait until it's finished and then go up and see it.in W: Yeah, 80 am I. HMJr: about a month from now. W: Yeah. And anyway it was a terrific crowd there. HMJr: And I didn't have any high hat. W: Well, I'll get you one. HMJr: O.K. W: Say listen, I wanted to talk to you about a couple of things. HMJr: Well, that's what I'm calling you up for. W: Yeah. What did you have in mind? HMJr: Well, one our stabilization fund W: Well, I talked to -- I'm handling & very sensitive old gentleman. I talked -- I had a meeting this morning and I talked to him and I asked him if he wouldn't finish up this week and submit it to his sub-committee. Whatever they do -- they -- they are going to report against it, you know. Then I'll have to put it up to the full committee. HMJr: Yeah. W: And I'm trying to -- I'm trying to -- you may have to help there; the President may have to help on it. HMJr: Well, that's what I'm calling up for. I'm willing to help. You just -- if you give me..... 151 - 3 - W: Well HMJr: a hint -- why -- how I can help. V: I talked to Frank Murphy about Brown, but Brown has 80 committed himself, I don't know what he's going to do, you know. HMJr: Yeah. W: In the -- in the hearings in the sub-committee he sort of -- was very definite about the thing. HMJr: Yeah. W: But of course they can always find a reason if -- if they want to. I talked to Frank. Now, I don't know whether Frank talked to him or not. HMJr: I don't know. W: You suggested that -- I didn't want to do it directly. HMJr: Yeah. W: And I'm going to try and get a line on it. It's going to be awfully close. You can't do anything with any of the Republican boys, can you? HMJr: No, if I could you'd shoot me. W: What's that? HMJr: If I could you'd shoot me, wouldn't you? W: Yeah. Well, I know -- I thought you might be just friendly with some of them. HMJr: Not W: Playing the game of politics now, of course, pure and simple. HMJr: Well, Bob, I'm awful anxious to -- to get it out and I'm here and I'll do anything that I can. W: I -- I'll do anything that I can, but mind you, I haven't got -- that -- that's the toughest committee in the Senate. - 4 - 152 HMJr: Yeah. W: I've gotten by pretty well so far, but I'm going to have an awful time with this, and I got ahold of the -- old Carter this morning, because I think he was ready to let the thing slidealong, and I asked him to finish this week his hearings -- there's several more that want to be heard -- and let's have it up next week and we -- we'll just -- they'll report it adversely and then I'll try and get a favorable report. But it isn't -- it isn't -- it -- you know, we've got this line up in the Senate. It's much more effective than in the House. HMJr: Yeah. W: And what -- you can't do anything with Adams, I suppose, can you? HMJr: With Adams? I don't -- I don't think I, personally, can do anything with either Adams or Brown, but W: Of course, I'm -- I'm -- I thought maybe we could interest him in this silver provision. You know, he's strong for the silver thing and I've been sort of leaning against it. HMJr: Well, I tell you -- I expect to see the President again tomorrow and I'll certainly mention it to him, and I -- I do think, though, that -- that it's up to the sub- committee to report the thing out one way or the other. W: Well, thatswhat I -- exactly what I said today, and he has promised to do it the end of the week. That -- because I think I know how the votes are going to be there, but I'll need a little help with the full committee. HMJr: Right. W: I think I can -- I think I -- now, could you do anything with Miller? HMJr: Miller? W: Arkansas. HMJr: No, I don't think 80, W: Can the President, do you know? - 5 - 153 HMJr: Well W: You know, I'm very friendly with all these fellows, but they HMJr: Well, I'll talk it over with W: ..... -- you need a little outside help. HMJr: I know. I'll talk it over with all of them. There's Miller, there's Adams, and there's Brown. We -- we'll look them over and Bee if there's anything we've got pending. We may have some appointments or something. W: Yeah, that's what I mean. HMJr: See? W: That's what I mean. HMJr: Well, we'll look them over -- those three states. W: Yeah, well I might, later in the day, give you one or two more. HMJr: All right. We'll look them all over. W: Now listen, on this inquiry -- Steve got all excited about it -- Gibbons. HMJr: Yeah. W: I wanted to talk to you about that. I think we ought to do something along that line and we ought to have it in friendly hands. You know, there are three resolutions that have been introduced already. HMJr: Yeah. W: And they're going to come up -- it's going to come up sooner or later. HMJr: Yeah. W: And if we'd have it -- I'd rather do it than have somebody do it that isn't friendly or that -- has got crackpot ideas. HMJr: Yeah. Well, I tell you, would you have lunch with me tomorrow? - 6 - 154 W: Tomorrow is Wednesday. HMJr: We'd have it right here in the Treasury. W: You -- you -- it's a bad day for me tomorrow. HMJr: Make it either Wednesday or Thursday; either day that suits you best. W: Will you -- will you make it Thursday? HMJr: I'll make it Thursday. W: Fine! HMJr: One o'clock? W: Yeah, I'll drop up there. HMJr: Right in the Treasury. W: Yeah. HMJr: That'll be swell ! W: I'll -- where will I come? To your office? HMJr: Come right to my office. W: All right. HMJr: And -- if you come W: Yeah, and we can go over some names too. HMJr: Fine. W: All right. HMJr: Thank you. W: You bet. 155 - 14 - H.M.Jr: Now, you fellows get busy and look these fellows over and see if there are any Collectors of Internal Revenue or anything else. Gibbons: Arkansas, Michigan H.M.Jr: And Colorado. Gibbons: Colorado. H.M.Jr: But get the list out on who is on the sub-committee and let's look them over. But those three states particularly. And you might ask - call up Jim Farley and ask him if he's got anything, will you? Gibbons: I was going to suggest that. H.M.Jr: Call up Jim, will you? White: Brown seems to be the one that might be pushed over most easily. Gibbons: I think Jim can handle him. H.M.Jr: Will you call him? Gibbons: Yes. H.M.Jr: What other 1deas have you got? Foley: That's all I have. H.M.Jr: Harry? White: There's a cable that you may not have seen that reported that Chamberlain notified the German Embassy that he is prepared to release most of the Czech gold reserves. H.M.Jr: The Germans laughed at it. I saw it. White: They laughed at that? They were amused, yes. 156 - 15 - There's & letter here from Senator Wagner that may have some significance only because of what you're doing, in which he - it's addressed to me; I don't understand why - says that Mr. Matthes - a young man that he wants to get a job for. Seems to have most of his training in English literature, and I thought maybe Gaston or somebody else might be Gaston: What have we to do with literature? White: I'll send this over to Mr. McReynolds. H.M.Jr: Right. White: The net flow of capital last week, week ending April 20, was 85 million dollars, bringing the total up to 620 million for the year. H.M.Jr: How much last week? White: 85 the week ending April 19; that's the last. That brings the total, since the upturn began on July 20 last year, to a billion four hundred million. This 1s just capital imports, not gold. Gold is much larger That's all; I have some other things I'll give Mrs. Klotz. Lochhead: Foreign exchanges are all quiet. The belgas recovered quite sharply, and they're building up their gold stock; evidently they're going to run it up to 100 million. They've got almost 30 million here and are continuing to ship on every boat. H.M.Jr: Harold? Graves: I spent considerable time last week with Mr. Irey and his people on this Pacific Coast moving picture case. Mr. Oftedal, who is the investigator in charge of that case, was here and has now gone back to the Coast to prepare his reports, which I think probably will be in here by the 22nd. That's two weeks from Monday. H.M.Jr: God! McR: Better than six months that they told you before. 157 - 16 - H.M.Jr: Two or three months. Graves: And I see no reason why, if all goes well in that case, it can't be ready to go to the Department of Justice this month. H.M.Jr: Swell. Can I tell that to the Attorney General? Graves: Well, this has got to be checked here by Mr. Foley's man after the administrative report 18 in, and I would doubt the wiadom of making any commitments to the Attorney General about it, although person- ally I feel H.M.Jr: Does it look good from the Treasury standpoint? Graves: Yes. Gaston: After he sees the papers he can give a better story to the press than he could with just your telling him. H.M.Jr: Well, how are you going to make a Democratic racket- buster? Gaston: That's all right. I approve. But he can have a better story when he sees the papers. H.M.Jr: What papers? Gaston: That Mr. Oftedal 18 going to send him. H.M.Jr: Oh, that's all right. Just before we send it to him, Elmer Irey and Harold Graves and I will fly to Los Angeles and clean it up. Or maybe we could have a sign painted "Los Angeles Airport" and go out to (words not understood). (Hearty laughter) McR: Getting on to these rackets. H.M.Jr: Anything else, Harold? Graves: Yes, I think you'd be interested to note again that on the first of May, which was yesterday, the Bureau of Internal Revenue set up the last of the decen- tralized divisions in this new program. 158 - 17- H.M.Jr: Now you're free to go to work. Graves: Well, we're free to try to make this machine work. It's completely set up. We have, or they have, offices open now in 38 cities. H.M.Jr: 38. Graves: 38. H.M.Jr: That's wonderful. Graves: And I think that from now on H.M.Jr: Well, one of these days not too far off, I hope, Mr. Hanes 1s going to visit some of these, the way we originally talked, and make some talks in these cities, let the country know what we are doing - when you (Hanes) get time. We talked about that six or eight months ago. Bell: Summer vacation. H.M.Jr: All right. Gibbons: Saw that theylet the contract for the Virginia Coast Guard air radio. H.M.Jr: No. Gibbons: Two hundred and five thousand odd dollars. MoR: I just gave Nell a note on it this morning. H.M.Jr: I haven't seen Nell. Gibbons: Both committees of Congress have passed the appro- priations or acted favorably on the request, for the three cutters and the 15 planes. H.M.Jr: Where 1s it now? Gibbons: It 18 now ready to come up on the floor of both Houses. H.M.Jr: It's out of the committees? Regraded Unclassified 159 - 18 - Gibbons: Out of both committees. H.M.Jr: All right. Gibbons: Now, on the Post Office - Treasury appropriations committee, we had a request in there for a long- range plane in North Carolina and one in San Fran- cisco. They allowed us one. See, Ludlow, chair- man of the sub-committee, is a pacifist, and I had to get the Collector of Customs from Indianapolis to come on here and sit down with him and had to do some real politics here. H.M.Jr: See if you can do some real politics on this com- mittee on the stabilization fund. Gibbons: Yes. H.M.Jr: I really wish you'd concentrate on that. Gibbons: Yes. H.M.Jr: I wish you'd concentrate on that, see if Farley can't give us help. Gibbons: Yes. H.M.Jr: Dan? Bell: You of course know we sold out all of the bonds and notes that you ordered. Out of the 55 million dollars that we sold, we made a profit of two million nine. H.M.Jr: Very nice. Bell: About six percent on the postal savings and about four percent on the FDIC. H.M.Jr: Very nice. Bell: Do you want to give any more orders at this time? H.M.Jr: No, I want to sit down with Hanes and you and talk it over a bit. Bell: All right. 160 - 19 - H.M.Jr: I mean I'd Just as lief watch it for a day or 80, but if you'd keep after me - will you? Bell: Yes. H.M.Jr: I didn't know it was 55. I thought it was 45. They said 43 or 45. Bell: It's twenty-five Federal Deposit and about 31 Postal Savings. H.M.Jr: Lochhead sent me a memorandum that, including the five million which would be delivered in May, it was 43 or 45 - April and May. Lochhead: April and May. I think you sold a few of them out before April, didn't you, Dan? H.M.Jr: April and May it was. Bell: This 18 since we started the program. Lochhead: This is from the very beginning of the program. The other was the month of April. H.M.Jr: All right. Bell: Jesse Jones has submitted a new draft of the minutes of the Commodity Credit. I think you can sign these, because it merely appoints Hudson as H.M.Jr: Has my attorney seen them? Bell: No, he hasn't. H.M.Jr: Well, would you let him look over it. I'll sign it in order to - and let him look at it before it leaves the shop. Bell: This is Just putting this man on the Board of Directors to take Jesse Tapp's place that went out. H.M.Jr: Let it clear through the General Counsel. Bell: The only other thing I have 1s, when do you want to talk Home Owners Loan? 161 - 20 - H.M.Jr: Well, I can call those any day, can't I? Bell: Yes. H.M.Jr: Beginning now. Bell: Yes, any day. The question 1s whether we shouldn't call them and let the market settle down before you announce your refunding for four or five days. H.M.Jr: Well, what I think I'll do 1s this, Dan. I want to talk it out, don't want to settle anything today. Maybe around 4:00 or 4:30 if I leave - maybe you'll walk part way home with me. Bell: Fine. H.M.Jr: Huh? I can talk it over. Before we do anything, John, we'll talk with you. But I've got some - I think it's foolish to have that hanging over our heads - I mean having called it and having to meet that - unless we have to, and I'd like to see whether the foreign situation would either get better or worse. It seems silly to make yourself refund - what 1s it, eight or nine hundred million? Bell: Nine hundred million. H.M.Jr: I mean it's something we don't have to do. A week from now we might see more clearly. Why bump your head up against nine hundred million when it isn't something you have to do? I mean that's the way I feel. I mean if we called nine hundred million and then next week we had a war in Europe, we'd think, "My heavens, why did we add that to our burden?" Huh? It's a lot of money, if something should go wrong. Bell: There 18 this Friday Polish situation, liable to change over night. H.M.Jr: Anything can change over night - anything. I just don't see - I mean in a week or two weeks the thing might look perfectly clear and we might see that everything 18 lovely. I'm just going to stall on it. Regraded Unclassified 162 - 21 - Bell: Well, you can do it on June 1. The note issue 1s due June 1. H.M.Jr: How much? Bell: That's three twenty-five million. H.M.Jr: June. I have to do that. Bell: Yes. H.M.Jr: What? Bell: Yes. H.M.Jr: Three twenty-five. Didn't we talk about paying that off? Bell: They have a hundred fifty million cash but they thought they might like to refund the whole thing and save the cash. They've got a hundred fifty million cash. H.M.Jr: But how much is coming due? Bell: Three twenty-five. H.M.Jr: That's & good-sized block right there. What? And when would you do that? Bell: I was hoping to do the whole thing as of May 15, which would have two purposes. One would be to get the three twenty-five out of the Treasury territory around June 1, and then to get the August 1 call date out of August, which 1s a bad month, and bring them back to May. H.M.Jr: Well, you'll get a chance to talk to me when I walk home. Bell: All right. H.M.Jr: But I'm not going to shoot when I don't see the whites of their eyes yet. Huh? Hanes: Not if we don't have to. 163 - 22 - H.M.Jr: What? Mac? MoR: Danny suggested the other day that we might add on this executive order in the reorganization an order that would consolidate in the head of each department all appointive power, taking care of situations where some subordinate officers of the department have authority to appoint. Treasury is involved with respect to H.M.Jr: Is it important? McR: Well, I consider it of considerable importance. H.M.Jr: Who brought it to your attention? McR: Dan Bell. H.M.Jr: What's the nigger in the woodpile? Bell: We were just talking about the various things that might be done, and we have discussed here from time to time, you know, the appointments, particularly the appointments in the Comptroller of the Currency, and we thought it might be B. good time to bring that authority in to the head of the department, where it belongs, not have a subordinate officer appointing personnel of any type. H.M.Jr: Got any feeling on it, Johnny? It's new to me. Want to think about it? Hanes: Yes, I'd like to think about it. McR: Can't think very long and get it in. We're supposed to get it in today. Hanes: Is that in the statute, Danny, the power of Bell: Yes. H.M.Jr: May I suggest this? It's new to me. I'm seeing you fellows at 2:30, see? If you have a little talk with Mr. Hanes about it before that, and then maybe when you come in at 2:30 you fellows can tell me what you think, see? You say today 1s the last day? Regraded Unclassified 164 - 23 - McR: Well, we're supposed to get it over, I think, today. H.M.Jr: At 2:30 come in. It's new to me. Foley: I think it's very important, Mr. Secretary, and I agree with the policy. It cuts right straight across all the departments. We haven't had a chance to check situations that might be affected. You see, it will involve every single one of the executive departments. H.M.Jr: Well, I should think from the President's standpoint he'd jump at it, but I just wondered what it meant, that's all. And talk it over. Foley: It will cause comment when it goes down on the Hill, because it's the thing that they'd be more interested in than almost anything else. It will take away the appointment power on United States Attorneys, transfer it to the Attorney General; appointment power on the United States Marshals, transfer that to the Attorney General. It will take away the appointment power of the people in the Comptroller of the Currency's office, put that in you. I think it ought to be done. I think it's terribly impor- tent to concentrate these things in the heads of the departments. H.M.Jr: With so many things popping I'm trying to go slow rather than be wrong. Gaston: Fine chance to improve the Internal Revenue machine, the Collectors' offices. Foley: Yes. H.M.Jr: Well, if you people would go into Mr. Hanes' office whenever it's convenient to him, then come back and give me 8. recommendation, I'd be glad to receive it. These Civil Service fellows - by God, you've got to watch them, you know. I don't mean maybe. You never know what they're going to pull next. You (Hanes) and I are just a couple of amateurs. Klotz: It's the truth. Regraded Unclassified 165 - 24 - H.M.Jr: Of course it's true. That's my new policy: to tell the truth. Bell: Straight from the shoulder. McR: New policy? Klotz: That goes so far back with you H.M.Jr: Got any other good ideas? McR: No. Bell: Got one on accounting. McR: I haven't got that. H.M.Jr: Well, anyway, anybody that wants an executive order - I've got from 2:30 until 3:00. The banking thing will only take three or four minutes. Anybody that wants to come in on the executive order - I'm. McR: We'll have an executive order on the accounting set-up at that time. 166 May 2, 1939 2:10 p.m. Operator: Go ahead. HMJr: Hello. Gordon Rentschler:Hello, Henry. HMJr: Hello, Gordon. R: How are you today? HMJr: I'm fine. R: Henry, I wanted to call you first about our talk in regard to the Argentine. HMJr: Yes. R: To tell you that Jim Perkins got back all right. HMJr: Fine ! R: But he's very tired from two and a half months of trip. HMJr: I can understand. R: We are sending him up in the country for ten days just to loaf. HMJr: Yeah. R: But I wanted you to know definitely that he was at work on the things that we talked about. HMJr: Yeah. R: And just as soon as he comes back, he's going to make a point of arranging an appointment with you and talk it all over. HMJr: Fine! R: Because he's coming back first. HMJr: Fine I R: Now the next thing that we -- he and I talked this morning -- while we know this is out of your bailiwick, we have nobody whatsoever to suggest. But as step number one, - 2 - 167 I hope they get a very strong Ambassador down there to take the place of Weddell, who was a pretty good bird. HMJr: Well, that's out of my bailiwick. R: I know it 18, but if there is any chance, I -- there's nothing we can do about it. That fellow ought to be a strong man. HMJr: Well R: We're delighted that Weddell 18 going over to Spain because we've got problems there, and we like to work with him, and we think he's going to be an excellent man on the job. HMJr: Well, Gordon, I really don't know. R: I see. That -- but on the other program that you had in mind, why Jim is going to work that out. HMJr: Good! R: And he'll have quite a little memorandum with him when he comes. HMJr: Uh-huh. R: There's Just -- it'll be ten days before he gets back, and as soon as he comes, why then either he alone, or he and I together will arrange an appointment with you and come down and chat with you. HMJr: Give me a couple days' notice. R: Yes, we will do that. HMJr: All right. R: All right, Henry. There's nothing else new? HMJr: Nothing but what happens every day. R: Yeah. Well, you're no more, 0 F less disturbed about the situation abroad than when we talked to you. HMJr: I don't think BO. R: Yeah, I think 80. Just rocking along. - 3 - 168 HMJr: Unfortunately -- no better or worse. R: Well, we've put our things all in order. We've got our thing all set so that if it moves tomorrow morning, why we press a button and get into action. HMJr: Wonderful! R: And I imagine that's all we can do, isn't it? HMJr: I think BO. R: There's not -- on this Chinese currency situation, there's nothing that's concerning -- you're concerning yourself about that, 18 there? HMJr: No, I'm not. R: That's all right. We think you can rock along better than HMJr: No. R: But if there's anything comes up on that that you are disturbed about, I'm keeping it all in line and we'll talk to you about it when you want to. HMJr: Fine. R: And if not, we won't bother you with it. HMJr: All right, Gordon. R: All right, Henry. It's nice to say "hello" to you. HMJr: Thank you. R: Saw your Daddy Sunday. He looked very well-behaved and we couldn't attract his attention. He sat two or three seats in front of us, but I think he got a little bit chilled, but other than that all right. HMJr: All right. R: Bye-bye. HMJr: Good bye. 169 PARAPHRASE OF TELEGRAM RECEIVED FROM: American Embassy, Paris, France MA DATE: May 2, 1939, 5 p.m. NO.: 870 FROM COCHRAN. This afternoon by half-past three Guaranty had bought $2,400,000 for the French control. This currency was somewhat offered against sterling, and there was no clear evidence where it came from. The most active unit on the market is the belga, which continues to dominate the market. Last evening the Belgian National Bank started to acquire sterling, and today it got more. Paris had its most calm and orderly May day in many years, which pleased Paris traders; workmen were content to stay at their jobs. There is developing a fairly active demand for the new three year national defense bonds, the commission for the banks being 1/2 percent. BULLITT. BECEINED off St YAM EA:LWW THENTHARJO YRUSKIRT off to will valuel MM of teching ident 177 Prepared by Lawrence H. Seltzer 171 TREASURY DEPARTMENT INTER OFFICE COMMUNICATION DATE May 2, 1939 TO Secretary Morgenthau FROM Mr. Haas 90A 1AA Subject: The Automobile Situation as Reported to and by Mr. Seltzer I. The Industry as a Whole Although the month's record may be materially affected by the figures for the last eight to ten days of April, not yet reported, retail sales during the first three weeks did not show the usual seasonal gains and are considered mildly disappointing. President Keller of Chrysler is a shade less bullish than he was two weeks ago, but the General Motors people seem to be somewhat less pessimistic, Both Ford and Gen- eral Motors showed increases in the second 10-day period of the month over the first, whereas Chrysler showed three suc- cessive weekly declines - which may well account for the changes in sentiment. In setting its final production schedules during the past two weeks for the remainder of the 1939 models of all of its makes except Chevrolet, General Motors made only minor reductions (ranging from 1-1/2 to 4 percent) in the tentative output schedule contained in Mr. Seltzer's memo- randum of April 18. Neither Chrysler nor Ford has yet determined final production programs for the season. There is very little steel left to be purchased for the remainder of this year's models, The steel makers will begin rolling steel for the new model requirements of some of the parts-makers at the end of May or early June, and, for the motor car manufacturers, in late July and in August. The price situation on automobile steel is reported to be far from strong, with some possibility of a recurrence of last year's price war. 172 Secretary Morgenthau - 2 Trade circles expect the industry's production record for the next two months to be substantially as follows, as compared with 1938: 1939 1938 May 330,000 210,000 June 275,000 189,000 The preceding months' figures were as follows: 1939 1938 January 354,000 227,000 February 312,000 203,000 March 375,000 239,000 April 376,000 238,000 II. General Motors The General Motors people, like Bo many others, feel a great deal better about the business outlook than they felt two or three weeks ago simply because things haven't gone to pieces. Their present expectation is that, barring the outbreak of war, the next few months will see neither a significant rise nor a significant decline in the volume of business activity. They look for an FRB remaining stable between 93 and 95 for the next few months, with a good pos- sibility of an upturn sometime during the summer. A moder- ate such upturn could be brought about merely by the replenishment of inventories. The remaining big decision for General Motors 1939 model season will probably be made by the middle of next week on the volume of Chevrolet output for May, June, July, and August. The decisions arrived at in the last two weeks respecting Buick, Cadillac, LaSalle, Pontiac, and Oldsmo- bile production schedules made only slight downward changes from the figures submitted in Mr. Seltzer's memorandum of April 18, Mr. 0. E. Wilson, who has just been elected Executive Vice President of the Corporation, declared at a policy meeting recently that the Corporation couldn't afford to take too pessimistic an outlook because its own decisions constituted an important causative influence upon the general business situation. Regraded Unclassified 173 Secretary Morgenthau - 3 III. Chrysler President Keller of Chrysler believes that, though the peak of the production and retail season may be past, there is still a very lively retail market for automobiles, and he intends to exploit it this month by a country-wide special sales campaign. When interviewed on Monday, May 1, he was a shade less bullish than he had been two weeks before, presumably because of the declining trend of Chrysler retail sales during the first three weeks of April. The figure for the final week in April, which was telephoned Mr. Seltzer Tuesday afternoon, showed an increase of about 10 percent over the preceding week, Chrysler retail sales during April have been as follows: Week ended April 1 20,389 April OR 19,481 April 15 17,768 April 22 17,487 April 29 19,235 IV. Ford Ford's retail sales 80 far this year, as obtained through a secondary source in close contact with the com- pany, have been as follows: January 51,000 February 46,000 March 75,000 April 1-10 17,000 April 10-20 21,000 Trade circles expect Ford to produce about 90,000 cars in May, 75,000 in June, 50,000 in July, and perhaps 30,000 in August. pean 174 TREASURY DEPARTMENT WASHINGTON May a. 1939. MEMORANIUM ON HOME OWNERS' LOAN CORPORATION FINANCING The Secretary asked me to walk home with him and explain the contemplated financing of the Home Owners' Loan Corporation. I told him that the Corporation has $325,000,000 of 1-1/2% securities maturing on June 1 next and that in addition it has $905,000,000 of 2-3/4% securities maturing on August 1, 1949, but callable on August 1, 1939, or any interest payment date thereafter upon sixty days' advance notice. I explained to him that we had been discussing with the Cor- poration the possibility of offering to the holders of the June maturities a new one-year obligation for 40% of their holdings and a new two-year or ligation for 60% of their holdings. This would about meet the Corporation's requirements. for debt retirement purposes in the next two years. I ex- plained that we had also discussed the possibility of announcing this week a call of the $905,000,000 for payment August 1 and announcing on May 8, in connection with the refunding of the $325,000,000 June maturity, & five- eight or six-nine-year security in exchange for the called bonds. I told him it was hoped that the announcement of these refunding issues could be made Monday, May 8, as of May 15th. This would remove the financial oper- ations of the Home Owners' Loan Corporation from the June 1 period, & time when the Treasury is considering its June 15 financing, and it would also remove the financing operations of the Corporation from the August period, & time when the market is not usually in a good condition for financing large operations. I told the Secretary that he had to refund the $325,000,000 June 1 maturity in whole or in part; that he could use approximately $100,000,000 to $125,000,000 of the cash balance which the Corporation has with the Treas- ury to pay off part of this maturity, but that I thought it might be better if we refunded this entire maturity and allowed the Corporation to keep its cash balance as a safety valve in case we should decide later to refund the $905,000,000. This cash balance would also be available to pay off in cash those holders who did not take advantage of the refunding. After considering the matter at some length the Secretary decided that in view of the European situation he did not want to call the $905,000,000 August 1 issue and have it hanging over his head until a refunding operation could be concluded. He thought the most conservative plan to follow would Regraded Unclassified 175 - 2 - be to refund at this time only the June 1 maturity, announcing it on Monday, May 8, and carrying through the operation as of May 16. He said 18 might take another look at the situation about May 20th to see if the call and now refunding operations could not be conducted as of June lst. After we got to his house he called up Under Secretary Hanes and explained to him what he had decided to do, and Hanes fully agreed with this plan. The Secretary asked me to explain the matter to Mr. Fahey and said that he would announce on Thursday morning at his press conference that he did not intend to call the August 1 issue at this time but that he would announce on May 8 & refunding as of May 15 of the June maturity. I explained the matter to Mr. Fahey this evening and he said it was quite all right with his Corporation as is would have to rely on the Treasury's wishes in the matter. He said he hoped however that this decision did not preclude further consideration of this matter before June 1st, the last day on which & call can be made. I told him that the Secretary would review the sit- uation about May 20th. Dueld 176 May 2, 1939 2:30 p.m. PRESENT: Mr. McReynolds Mr. Duffield Mr. Foley Mr. Gaston Mr. Hanes Mr. Upham Mr. Preston Delano (Mr. Bartelt for part of meeting) HM,Jr: The other day Hanes gave me a list on pending banking legislation (See exhibit #1) and I took it up with the President. On the so-called Brown Bill transferring the Comptroller's office, the President said he never heard of it and it was meaningless 80 far as he was concerned. So on the strength of that I told Hanes that Delano can write his letter and I will write a letter against the Brown Bill. 2. Senator Wagner's resolution - President never heard of it; didn't know what it was. Of course what I am saying 18 all in the room. 3. So-called regulation of bank holding companies. President said so far as he was concerned he was for it, for a bill which would freeze bank holding com- panies. He said, "Put it on 1ce", and then wrote "Dry". 4. Bill to increase the F.D.I.C. from $5,000 to $10,000. He wrote no. 5. Various bills to finance small businesses - didn't seem to know anything about it. 6. Bills subjecting bond issue trust indentures to S.E.C. supervision. -- Didn't know anything about it. He said, "Is that the Barkley Bill?" I said, "Yes." He put O.K. with a question mark after it. 7. A bill to postpone from February 1, 1939 to February 1, 1944 the date after which a director of a Federal Reserve member bank may not be a director Regraded Unclassified 177 - 2 - of more than one other bank. -- President said no. That's to take care of somebody's friends. 8. A bill to extend until 1942 the date on which officers and directors of member banks must have repaid any loans received from their own banks. -- He said no on that. 9. A bill to allow establishment of branch bank offices by national banks under the same capital- requirement terms as apply to State Banka. -- President said, "Well you know how I have felt about this thing ever since I have been Governor. I think you ought to limit branch banks within their trading limit. Let them have branch banks within their limit distance." 10. A bill transferring to the Treasury deposits in national banks which have been dormant for ten years or longer. -- no comment. It does this for me - I can write saying no on the Brown Bill and sit tight and do a little scouting. Mr. Delano: I would like to have a little elabora- tion of that opinion on branch bank. It would help us. HM,Jr: I heard the President talk about that a great many times. He thinks a bank should be limited to have branches within its trading area. Mr. Delano: Could we explore that? Is there a definition? HM.Jr: I think he was thinking in terms of up- state New York. Take Syracuse, its trade area 1s 50 miles. Mr. Hanes: Within state limits? HM.Jr: He didn't say. Mr. Foley: Might take you over the state line. HM,Jr: Did you get any answer from the other agency or do we each write our own letter? Regraded Unclassified 178 - 3 - Mr. Duffield: We write our own. Probably R.F.C. and F.D.I.C. should write one. As we originally said, we do not recommend any banking legislation, I have written it. HM,Jr: Let me read it out loud, (See exhibit #2) Mr. Hanes: That's all right. Mr. Delano: We are on record rather elaborately against it. HM,Jr: Yes, Hanes told me. Anybody 680 why I should not write this kind of letter? Why not write this letter and send a copy to each member of the group? (See exhibit #3) Send this by hand and simply say to Jones and the others if I don't hear from them by tomorrow noon, un- less you have some comment by tomorrow noon, I will send this out. Mr. Hanes: That's all right. HM,Jr: (To Duffield) Will you see that each one gets a copy? All right, Dan. Mr. Bell: That can't be taken as sort of implying approval. Mr. Upham: You would be under the criticism of bankers for approving the removal of the Comptroller's office by the Reorganization Bill to the F.D.I.C. HM,Jr: But I am not recommending to the President. Mr. Upham: But you are saying that this 18 not necessary because it can be done another way. HM,Jr: I will leave it this way: You have until noon tomorrow. Mr. Delano: I think it is & very important point. - 4 - 179 Mr. Foley: If you write this kind of a letter and say, "It is deemed advisable," I can do it but there 18 not any need for any new legislation because we already have the power. HM,Jr: Why don't you, for me, say this - "I think the Comptroller's office should be in the Treasury." Mr. Foley: If you do that then the people who don't want it in the Treasury will be in favor of the Brown Bill. Whereas, you say under the Reorganization Bill the bureau can be transferred to F.D.I.C. if it 18 desirable. Then you are not lining up against the Brown Bill or for certain people. HM,Jr: If you ask me do I want it transferred, then why not say 60? Mr. Gaston: I think we ought to line up against the Brown Bill. You leave your friends in doubt here. The Treasury does not know. HM,Jr: I am against, this year, as far as I can tell, this session, of having any transfer out of the Treasury. Why not say 80? Mr. Hanes: That's the way I read it. I didn't get any doubt. HM,Jr: Take another crack at it before you send it out of the Treasury. Trot out your other executive order. Mr. McReynolds: Johnnie fed us lunch and convinced us -- after all, he fed us 80 much we could not talk after we got through -- he convinced us the best thing to do on this (exhibit #4) was to let Danny take it over to Smith and say, "Here's something that involves all departments, not merely the Treasury. We think you should initiate it rather than have the Treasury initiate it." HM,Jr: I will sign it with him. I think he 18 right. Regraded Unclassified - 5 - 180 Mr. McReynolds; Bo we have nothing for you to sign. (At this point Mr. Delano and Mr. Upham left the meeting and Mr. Bartelt came in.) Mr. Bell: You know we have discussed on several occasions in the past the question of centralizing the accounting authority in the Treasury. The Brownlow Committee went quite a ways last year in trying to centralize it in the Treasury and there was 60 much confusion they transferred to the Budget Bureau. Under this reorganization you can't touch the accounting office but we thought you could transfer from heads of depart- ments the authority of supervising the accounting systems prescribed by the Comptroller General and that would en- able us to get controlling accounts on the books of the Treasury of not only departments and agenoies but oor- porations and enable you to see 8. consolidated financial statement. We would give the President an executive order giving that authority, setting up a Treasury divi- sion of fiscal affairs. HM,Jr: I would have to put myself in your hands. Mr. McReynolds: The only thing we are doing in the order while the President transfers supervision over accounting systems he can't transfer authority to pre- scribe them. We are suggesting the President put in his order a recommendation to Congress that Congress give the Treasury, by legislation, authority to pre- scribe the system. HM,Jr: If this 18 something that Bell and Eddie Bartelt want I am more or less willing to sign blind on it. Mr. Gaston: I am for this very strongly. Mr. Bell: I think I should also tell you that there is a provision in here for you to evaluate the assets of these banks' activities. HM,Jr: I will sign it with the understanding if Mr. Hanes doesn't like it we have a chance to withdraw it. Regraded Unclassified 181 Exhibit II A w April 21, 1939 List of Pending Benking Legislation 1. Senator Prentics Drown's bill to transfer hingrand supervisory functions of the Comptroller's d. the examining functions of the Federal Reserve the Federal Denosit Insurance Cornoration. 2. Senator Worner's resolution end other resolutions ruthorizing an investi stion to deter- onetery and banking policy for the Government. 3. Variour bills to climinate or regulate ban't 100 ho companies. 4. A bill to increase the Federal Debosit In DO Corporation insurance 11 it on each de osit no 000 to $10,000. 5. Various billo to provide financing of still èes by the Government. 6, Bills subjecting bond issue trust indentures writies ané Exciren e Commission supervision. 7. A bill to nostrone from February 1, 1939 Mary 1, 1944 the date after which n. director of 1 Reserve under brn': may not be a director of in one other bank. 8. A will to extend until 1942 the date on fficers and Girectors of member brinks must have NO my loans received fro their our banks. 9. A bill to ^llow estrblishment of branch ices by national benks under the same croital- ent terms 03 andy to Strte banks. 10. A bill tronsferring to the Treasury 4 in notional brate Midel: have been dormant for re or longer. Regraded Unclassified Exhibit II 183 My dear Mr. Chairman: Reference is made to your letter of April 4, 1939, requesting a report on 8. 2045, A Bill "To transfer to the Federal Deposit Insurance Corporation all Federal bank-examining functions, and for other purposes". This bill would transfer the Office of the Comptroller of the Currency and its bank examining and supervisory functions from the Treasury Department to the Federal Deposit Insurance Corporation. I am opposed to the removal of the Comptroller of the Currency or hãs duties from the Treasury Department at this time and accordingly I recommend against enactment of those sections of 8. 2045 which affect the Treasury Department. Very truly yours, Secretary of the Treasury Honorable Robert F. Wagner, Chairman, Committee on Banking and Currency, United States Senate. ESD:hp 5/2/39 Regraded Unclassified Exhibit III 184 May 2, 1939 Memorandum: To: Mr. Jesse Jones Mr. Hanes Mr. Leo Crowley Mr. Daniel Bell Mr. Marriner Eccles Mr. Foley Mr. Ronald Ransom Mr. Preston Delano From: Mr. Duffield Secretary Morgenthau now proposes to send the attached letter as a report on the Brown Bill. If you believe that the Treasury should not send such a report on this Bill, or if you have any comments on this report, would you please call the Secretary or Under Secretary Hanes before noon on May 3. Regraded Unclassified 185 1033 FEDERAL DEPOSIT INSURANCE CORPORATION WASHINGTON OFFICE of THE CHAIRMAN May 3, 1939. My dear Mr. Secretary: Mr. Duffield has been kind enough to send me a copy of your proposed letter to Senator Wagner on the Brown Bill. I concur wholeheartedly with the thought express- ed in this letter. I see no reason for any banking legisla- tion of this nature at the present time. However, should there be hearings and I am asked to testify, I will inform the Com- mittee that as far 8.8 the Federal Deposit Insurance Corporation is concerned the cooperation existing between it and the Treasury is such that there 18 no necessity for any legislation on the matter at this time. Very truly yours, Lub Camily Chairman. The Honorable Henry Morgenthau, Jr., Secretary of the Treasury, Washington, D. C. TREASURY DEPARTMENT Exhibit IV INTER OFFICE COMMUNICATION 186 DATE May 2, 1939. TO Mr. McReynolds FROM 1. H. Foley, Jr., Acting General Counsel I have initialed the attached executive order transferring to the heads of the executive departments the power of appointment of all officers and employees in such departments now vested by law in subordinate officers thereof because I am informed that you are anxious to put it in channels at once. While I am in entire agreement with the purpose sought to be accomplished by the order, I want to point out that this order will draw considerable attention in Congress when presented. For this reason, I would feel much more comfortable about it if I had an opportunity to examine the various statutes involved 80 that I might have an opportunity to bring to your attention all the situations affected by it. F.N.7L. Inclassified 187 May 2, 1959. EMORANDUM TO: Secretary Morgenthau FROM: Mr. Gaston I - enclosing proposed draft of your speech in the National Emergency Council series of departmental broad- casts. I an also enclosing copies of the drafts used by the Secretary of State and the Attorney General. These have already been recorded. The system is to make a phonograph record, which is done in the office of the recording company here. The entire series, including interviews by Lowell Mellett with the President and with each one of the cabinet officers, is to be shipped out to stations throughout the country which have requested the talks. They will be used at the convenience of the broad- casting station. Lowell Mellett is anxious that your recording be made some time this week, if you can find the time. The talk itself is less than fifteen minutes long and a half hour at the recording studio should be sufficient. Regraded Unclassified 188 REORGANIZATION PLAN Bo. TRANSFER TO THE HEADS OF THE EXECUTIVE DEPARTMENTS OF THE FUNCTIONS OF APPOINTING ALL OFFICERS AND EMPLOYEES IN SUCH DEPARTMENTS. WHEREAS, Title I of the Reorganisation Act of 1939 provides for re- organisations within the executive branch of the Government; requires the President to investigate end determine what reorganizations are necessary to effectuate the purposes of section 1(a) of Title I of said Act; and authorises the President to prepare reorgamization plans; and BHEREAS, after investigation I find end declare that the transfer to end consolidation in the head of each department of the functions relating to the ap ointment of persons to offices and positions therein now vested by law in end exercised by subordinate officers or employees of such depart- sents is necessary to effectuate one or more purposes of section 1(a) of Title I of said Act; NOW, THEREFORE, by virtue of and pursuant to the authority vested in se by Title I of said Act, I have prepared the following Reorganization Plans Section 1 - Transfer of Functions. There is hereby transferred to the head of sech department all fune- tions now vested by law in any other officer thereof relating to the appointment of persons to offices and positions in such department, includ- ing agencies thereof, and to the fixing of the compensation, transfer, promotion, demotion, suspension, or dismissal of such persons. Regraded Unclassified 189 - 2 - Section 2 - Definition of Terms. for the purposes of this Reorganisation Plant (a) The term "departments" seens the ten executive departments and the field services thereof. (b) The term "agencies" seens any commissions, corporations, owned or controlled w the United States, boards, bureaus, divisions, services, offices, authorities, or administrations within the departments and the field services thereof. Section 3 - Appropriations. etc. The records, property (including office equipment) and personnel af- fected by any transfer under this Reorgamisation Plan end the unexpended balances of appropriations available for use is connection with any function transferred by this Reorganisation Plan are transferred to the extent prescribed by the Director, Bureen of the Budget, for use in connection with the transferred function. Section 4 - Executions. Nothing contained in this Reorgamization Plan shall be decaed to transfer functions from eay agencies excepted from the Reorganization Act of 1939 by section 3(b) of that Act, or from any officers or employees thereof. Section -- Effective date. This Reorganisation Plan shall become effective in accordance with the provisions of section 5 of the Reorganisation Act of 1939. The White House. Regraded Unclassified 190 TO THE CONGRESS OF THE UNITED STATES: Pursuant to the provisions of the Reorganisation Act of 1939, I submit herewith Reorganisation Plan No. , entitaed "Trensfer to the Reads of the Executive Departments of the Functions of Appointing all Officers and Employees in such Departments". I find that the transfer and consolidation proposed in this Plan is necessary to acromplish one or more of the purposes of section 1(a) of the Act. As you know there are numerous laws which vest the appointment of certain officers and employees in the executive departments in officers inferior to the department heads. Nevertheless, the heads of the depart- sents are responsible for the acts of such officers and employees although they do not have the power to appoint or remove them. This is indeed an anomplous situation which I think should be corrected. The proposed Plan would serve that purpose. It wouldrconsolidate the control of all personnel in the executive departments in the heads thereof by transferring to such of- ficers the powers which are now vested in other officers to appoint and remove officers and employees. I feel certain that the proposed Plan, in addition to increasing the efficiency of the Government, will result in some savings inassuch as the services of all the personnel, whose duties are concerned with appointment of officers and employees and the keeping of records with 16- spect to such appointments, will no longer be necessary. I trust that this Reorganisation Plan will meet with your approval. The White House, Regraded Unclassified 191 TO THE CONGRESS OF THE UNITED STATEM Pursuant to the provisions of the Reorganisation Ast of 1989, I our alt herewith Reorganization Plan No. / extitled "Treasfer to the Meads of the Executive Departments of the Functions of Appointing all Officers and Employees is such Departments". I find that the transfer and consolidation proposed is this Plan 10 securery to accomplish one or mre of the purposes of section 1(a) of the Act. There are Lave - in effect under which the fursides of appointing cartain officers and employees in the executive departments is vested is officers of such departments other than the hoods thereof. The effect of these laws is to create as anomlows situation in which the heads of the departments are responsible for the note of officers end employees when they have a power to appoint or POLITS. It is the purpose of the proposed Plan to correct this oundition. The Plan would transfer to end consolidate in the heade of executive departments all functions relating to the control of personnel - vested in subscrisate officers. I feel eartain that the preposed Plan, is addition be increas- ing efficiency in the departments affected, will result is consentes. I trust that this Reorgenization Plan will neet with your approval. The White Home, 5/1/59 Regraded Unclassified 192 OFFICE OF TREASURY DEPARTMENT WASHINGTON THE SECRETARY The Director, Bureau of the Budget. Sir: There is transmitted herewith a Reorganization Plan, to- gether with an appropriate letter of transmittal addressed to Congress for the President's signature. The Plan would transfer to and consolidate in the heads of executive departments all functions relating to the control of personnel now vested in subordinate officers. The Department is of the opinion that the consolidation of such functions will result in a more effi- cient and economical administration of the affairs of the de- partments affected. Very truly yours, Secretary of the Treasury. Regraded Unclassified 193 The Director, Bureau of the Budget. Sire There is transmitted herewith a Reorganisation Plan, to- gether with an appropriate letter of transmittal addressed to Congress for the President's signature. The Plan would transfer to and consolidate in the heads of executive departments all functions relating to the control of personnel now vested in subordinate officers. The Department is of the opinion that the consolidation of such functions will result in a more effi- cient and economical administration of the affairs of the de- partments affected. Very truly yours, Secretary of the Treasury. LiAsufe 5/1/50 jadge E.N.Th must Regraded Unclassified 194 The Director, Bureau of the Budget, Sire There is trensmitted herewith a Reorganisation Plan, to- gether with an appropriate letter of transmittal addressed to Congress for the President's signature. The Plan would transfer to and consolidate in the heads of executive departments all functions relating to the control of personnel now vested in subordinate officers. The Department is of the opinion that the consolidation of such functions will result in a MOFO effi- cient and economical administration of the affairs of the do- partments affected. Very truly yours, Secretary of the Treasury. 5/1/59 Regraded Unclassified 195 The Director, Bureau of the Budget, Sirs There is treasmitted berewith a Recrganization Plan, to- gether with an appropriate letter of transmittal addressed to Congress for the President's signature. The Plan would tennsfer to and consolidate in the heads of executive departments all functions relating to the control of personnel now vested in subsrdinate afficers. The Department is of the opinion that the conselidation of such functions will result is a more effi- cient and esensuical administration of the affairs of the de- partments affected. Very truly yours, Secretary of the Treasury. 5/2/50 Regraded Unclassified 196 The Director, Bureau of the Budget. Sirs There is transmitted herewith a Reorgenisation Plan, to- gether with an appropriate letter of transmittal addressed to Congress for the President's signature. The Plan would teamsfer to and consolidate in the heads of executive departments all functions relating to the control of personnel now vested in subordinate officers. The Department to of the opinion that the conselidation of such functions will result is a 2020 effi- sient and communical administration of the affairs of the 4 partments affected. Very traly yours, Secretary of the Treasury. Where 5/1/80 Regraded Unclassified 197 The Director, Bureau of the Budget. Hrs There is transmitted berewith a Beorganisation Plan, to- gether with as appropriate letter of transmittal addressed to Congress for the President's signature. The Flam would treasfer to and consolidate in the houds of executive departments all functions relating to the control of personnel now vested in subordinate officers. The Department is of the opinion that the consolidation of such functions will result is a uses offi- cient ead economical administration of the affairs of the 4 partnents effected. Very truly yours, Secretary of the Treasury. bidenfu 8/1/50 Regraded Unclassified 198 The Director, Bureau of the Budget. Sire There is transmitted herewith 1 Reorganization Plan, 10- gether with as appropriate letter of transmittal addressed to Congress for the President's signature. The Plan would transfer to and consolidate in the houds of executive departments all functions relating to the control of personnel now vented in subordinate officers. The Department is of the opinion that the conselidation of such functions will result is B. 1000 offi- cient and comminal administration of the affairs of the do- partents affected. Very truly yours, Secretary of the Treasury. Lidense 5/1/50 Regraded Unclassified 199 The Director, Bureeu of the Budget, Eire There is treasmitted hereeith a Beorgenization Plan, to- gether with as appropriate letter of transmittal addressed to Congress for the President's signature. The Flan would transfer to and consolidate In the hoods of executive departments all functions relating to the control of personnel mov vested in subordinate officers. The Department is of the opinion that the consolidation of such functions will result in a more offi- cient and economical administration of the affaire of the de parteents efforted. Very truly yours, Secretary of the Treasury. Litters 5/1/20 Regraded Unclassified 200 The Director, Bureau of the Budget, Hrs There 10 treasmitted herewith a Beorgenization Plan, to- gether with as appropriate letter of transmittal addressed to Congress for the President's signature. The Plan would Sevenfer to and consilidate in the bends of executive departments all functions relating to the control of personnel are vented in subsidicate officers. The Department 10 of the opinion that the conselidation of such functions will result is a nove offi- sient and communical administration of the affairs of the de- parteents effected. Very truly yours, Secretary of the Treasury. Lidente 8/2/20 Regraded Unclassified 201 The Director, Bureau of the Budget. an There is transmitted herewith a Baurgenisation Plan, to- gether with as appropriate letter of transmittal addressed to Congress for the President's signature. The Flan would transfer to and consolidate In the bands of excestive departments all functions relating to the control of personnel now vented is subordisate officers. The Department 1a of the opinion that the consolidation of such functions will result in a were offi- cient and commatical administration of the affairs of the do- partments affected. Very truly yours, Secretary of the Treasury. Listate 5/1/20 Regraded Unclassified