Volume 486, January 15 – January 20, 1941

DIARY Book 486 January 15 - 30, 1942 Regraded Unclassified - 1. - Airplanes Book Page Shipments - - British Air Commission report - 1/20/42. 486 340 American Bosch Corporation Soe Foreign Funds Control - B - Borth, Alan Editorial Opinion on the War: Preparing to Fight - 1/16/42 73 Bosch Corporation, American Sce Foreign Funds Control British Purchasing Kission Federal Réservé Bank of New York statement showing dollar cighursaments, week ending January ?, 1942. 293 Sritish Government Finance: Hoflich (H. D. White) memorandum - 1/20/42 330 Visting order sales - 1/80/42 342,343 business Conditions Heas memorandum on situation, week ending January 17, 1942 281 - C - Censorship, Office of See Office of Consorship China Loan: Monopolies - Kung program - 1/16/42 124 - D - D - Defense Savings Bonds See Financing, Government Dissey, Welt Sce Revenue Revision - 3 - Doclar, Karriner S. Accress before Annual Conference of Nayora - 1/13/42. 262 exchange Market - 1/15/42, etc. 57,132,185, 318,346 - I - Facte and Figures, Office of Sse Office of Facts and Signature Regraded Unclassified - I - (Continued) Book Page Financing, Government Defense Savings Bonds: Foreign-born groups in United States: HMJr suggeste to Kuhn programs especially for - 1/16/42 486 65 Comparative statement of sales during first 14 business days of November and December, 1941, and January 1942 108 Lombard, Carole: Death of - 1/17/42 150 a) Message to Clark Gable - 1/17/42 176 Field Organization News Letter, No. 35 - 1/17/42 155 Foreign Funds Control American Bosch Corporation: Investigation contemplated - Foley memorandum - 1/19/42. 251 (See also Book 487, page 249 - 1/22/42) - G - General Counsel, Office of Legialative program of Treasury Department - final report on status at end of First Session, 77th Congress - 1/16/42. 82 Germany Debt-clearing trend since 1930 - British Embasey memorandum 1/20/42 325 Gold See Latin America: Venesuela Great Britain See British Purchasing Mission: British Government Finance - H - - Historical War Records of United States See War Records (Historical) of United States - J - Japanese in United States West Coast food situation: Agriculture proposes conference - 1/16/42 170 a) Foley report January 21, 1942: See Book 487, page 88 Discrimination against commission merchants and produce dealers - Justice-Treasury correspondence - 1/17/42 173 - Progress report - 1/16/42 110-A - X - Zaye, Danny See Revenue Revision: "I Paid My Income Tax Today" Knudsen, William S. Appointed Director of Production, War Department - 1/16/42 486 114 - L - Latin America Venesuela: Federal Reserve Bank of New York authorized to buy $8 million worth of gold - 1/15/42 53 Legislative Program of Treasury Department See General Counsel, Office of Lend-Lease Allocations and obligations as of January 12 and 15, 1942.. 37,39 U.S.S.R.: Schedule of availability of material being procured by the Treasury as provided in Protocol Agreement - Stettinius report - 1/15/42 41 Duplication in purchasing - Mack memorandum - 1/17/42.. 177 Lombard, Carole See Financing, Government: Defense Savings Bonds - M - - Melia, Joseph See Revenue Revision Military Reports Reports from London transmitted by Campbell - 1/15/42, 1/16/42, 1/19/42 58,134, 307,347 Coordinator of Information report: "The War This Week" January 8-15, 1942. 61 Monetary Research, Division of Report on projects during October, November, and December, 1941 9 - 0 - Office of Censorship Publications and radio stations - codes of practice - 1/17/42 158 Classes of information in which Treasury is interested - 1/19/42 254 Office of Facts and Figures Radio Division established with William Lewie as chief - 1/16/42, 66 - ? - Book Page Procurement Division See also Lend-Lease Consolidated purchasing program following Nelson's appointment to head War Production Board discussed in Mack memorandum - 1/18/42 486 198 - R - - Revenue Revision Editorial Comment on Tax Problems: Battle Lines Form - Melia report - - 1/16/42 78 Dieney film (Donald Duck) discussed in Buffington memorandum 1/17/42 143 a) HMJr's message to Moving Picture Exhibitors - 1/22/42: See Book 487, page 256 "I Paid My Income Tax Today" - Danny Kaye to sing - 1/22/42: Book 487, page 410 Roosevelt, Franklin D. See Speeches by HMJr - S - Speeches by HMJr Cleveland, Ohio, City Club, January 24, 1942: Taxes a) Draft 1 - 1/19/42 210 b) Conference: present: HMJr, Paul, Blough, and Kuhn - 1/21/42: Book 487, page 3 1) HMJr's own pencilled notes: Book 487, page 28 c) Draft 2: Book 487, page 32 d) Conference; present: HMJr, Kuhn, Odegard, Sullivan, and Blough - - 1/22/42: Book 487, page 177 e) Draft 3: Book 487, page 196 f) M 4: Book 487, page 218 g) Conference; present: HMJr, Sullivan, Blough, Kuhn, and Odegard: Book 487, page 302 h) Draft 5: Book 487, page 309 1) Conference; present: HMJr, Blough, Paul, Kuhn, Odegard, and Sullivan - 1/23/42: Book 487, page 372 President's Birthday Ball: HMJr's pencilled notes concerning FDR's affliction - - 1/19/42. 250 a) Mrs. FDR-HMJr conversation - 1/21/42: Book 487, page 62 Et , I - Taxation See Revenue Revision - U - Book Page U.S.S.R. See Lend-Lease United Kingdom See British Purchasing Mission: British Government Finance United States - Historical War Records See War Records (Historical) of United States - V - Venezuela See Latin America - W - War Records (Historical) of United States Discussed at Cabinet meeting - 1/17/42 486 139 1 TREASURY DEPARTMENT INTER OFFICE COMMUNICATION DATE January 15, 1942 TO Under Secretary Bell FROM Mr. Southard Subject: Resolution on Stabilization Fund of United and Associated Nations to be presented at the Rdo Conference 1. On January B Mr. White prepared a draft resolution for a Stabilization Fund of the United and Associated Nations planning, in accordance Mr. Summer Welles' suggestion, to discuss it with some of the financial representatives at the Rio Conference in order to determine whether the resolution should be introduced. Mr. White discussed the proposal for such E. Fund with the Secretary early in January and received the Secretary's approval of the idea in principle. The draft prepared by Mr. White grew out of several discussions within the Treasury which included Vr. Bernard Bernstein and Dr. Viner. A copy of the draft was sent to the Secretary by Mr. White on January 8, with a covering memorandum explaining that I would go over it with the Legal Division and with Dr. Viner and that if it was decided at Rio to introduce such a resolution Mr. White would cable the Secretary for approval. 2. A cable was received today from Mr. White, sending the Secretary a copy of a draft resolution on the international stabilization fund and informing him that Vr. Welles would like to submit the resolution to the Rio Conference. Mr. White suggesta that if the Secretary approves the draft he should also obtain the approval of Mr. Berle and perhaps Mr. Eccles. Also, since the eventual calling of a Conference of the United and Associated Nations is implied, the draft of the idea implied in it may need the approval of the President. All of this must be obtained and cabled to Mr. White before noon Friday, January 16. 3. The draft resolution as cabled from Rio is only very slightly modified from the one prepared in the Treasury and submitted to the Secretary. It provides only that the Conference recommend: (a) That the Governments of the American Republics participate with the Governments of the United Nations in a special conference of Finance Vinisters to consider the establishment of a Stabilization Fund of the United and Associated Nations. Regraded Unclassified 2 Division of Monetary - 2 - Research (b) That participation in the conference shall be open to all nations subscribing to the objectives of the Atlantic Charter. (c) That the conference shall formulate the plan of organization, powers and resources for the Fund, determine conditions requisite to participation in it and propose principles to guide the Fund in its operation. (d) That among the conditions requisite to participation in the Fund the conference shall consider: Cooperation in adopting harmonious policies looking toward the gradual adoption of free exchanges with reasonable stability in foreign exchange rates, the removal of arbitrary and discriminatory restric- tions on international transactions, and the maintenance of monetary policies that avoid serious inflation or deflation. 40 I attach & draft of a reply which might be cabled to Mr. White after the necessary consideration and approval of the proposal have been obtained. Attachment Regraded Unclassified 3 DRAFT CABLE TO H. D. WHITE AMERICAN EMBASSY RIO DE JANEIRO, The Secretary of the Treasury approves the submission to the Conference of the resolution on a Stabilization Fund of the United and Associated Nations in the form given in Mr. Welles' No. 9, January 14 from Rio. This draft has also been approved for submission by Mr. Berle and Mr. Eccles and was approved in principle by the President. 2 THE UNDER SECRETARY OF THE TREASURY WASHINGTON January 15, 1942 MEMORANDUM FOR THE FILES: I snoke to Secretary Morgenthau on the telephone at 1:45 F.V. today regarding the proposed resolution on international stabilize- tion which Under Secretary Welles would like to present to the con- Serence of foreign ministere now in session at Rio de Janeiro, Brazil. This international stabilization nlan 1e commented on in Dr. White's cable No. 9, section 1, of January 14, 1942, and the resolution is quited in Under Secretary Telles' cable No. 9, section 2, of January 14. The Secretary said that this was a matter which he had suggested e month or two ago to be worked on and have in shape in case We wanted to give consideration to it some time in the future; Dr. White liked the idea and talked to Summer Welles about it, who also liked it and wanted to take it up at this conference. The Secretary stated that White had mentioned it to him the night before he left and the Secretary had told him he had no objections to it being discussed, but he did not have in mind any formal resolution on the metter. The Secretary at first indicated over the telephone that he did not have AND objection to the matter. 1 told him that there was one point which Jacob Viner thought should be cleared with him and that WAR whether the subject of this resolution should be cleared first -itt the British before it is presented down there. and if presented, whether it should be done by the British and Treasury representatives in Washington or by the President to Churchill. The Secretary said that on thinking this over he did not believe this WAY the place for this resolution, that very definitely it should be cleared with the British, and possibly Russia and Chine, before it 1s acted unon. He does not think we should bother the Fregident about this, but we may nivise White that he has no objection to the international stabilization schene being discussed at this conference in order to get the general views of the represente- tives of the South American governments, but he is opposed to the pre- gentation of any formal resolution on the antter mtil it has her Her the other large world yourrs. FORDEFENSE BUY AWB PATTED STATES SAVINGS BONDS pasture Regraded Unclassified 5 January 15, 1942 Mr. Liversy Mr. Souther4 will you please send the following cablegram to Mr. a. D. White, American Delegation, Conference of Yoreign Ministers, Rie to Jametro, Drasil: "Trea the Treasury. In reply to Delegation's No. 9. January 14. Secretary of the Treasury feels that the idea of . Stabilization Fund of the United and Associated Nations could voll be discussed informally at 810 but that 11 should also be discussed with other of the Datied Nations before my formal proposal is made, Disenssions here est- not be arranged vithin your deadline. The Secretary of the Treasury therefore feels that a Stabilization Fund recolution should not be introduced at Rio." over to Mate Department it 4:76 F.M. - 1/75/18 FAMI da:1/15/42 Regraded Unclassified 0 o 2 I 6 PARAPHRASE OF TELEBRAM - TO: American Delegation, Rie de Janeire, Brasil DATE: January 15, 1942, 5 p.m. NO.1 9. Reference is nade to telegram no. 9 sent by the Delegation at 9 p.m. on the 14th of January, 1942. This telegram is transmitting a message from the Secretary of the Treasury to Mr. White. It is the feeling of the Secretary of the Treasury that the suggestion of & Stabilization Fund of the United and Associated Nations should be discussed with others who belong to the United Nations as well as informally at Rie before you mike a formal proposal. No arrangement of discussions within your deadline can be made here. Therefore, 10 is the feeling of the Secretary of the Treasury that a resolution for & Stabilization Put should not be brought up at the Conference in Rio de Janeiro. HULL (FL) This read 2 seen in 7th over phone 1040 am 1/16/42 ch:copy 1-16-42 Regraded Unclassified PARAPHRASE OF TEIEGRAM SENT E incrican Delegation, Rio do Janeiro, Bruzil January 17, 1942, 10 p.z. MO.: 24 This is B confidential message from Secretary corgestuau for tas bacer *ecretary of State Colles, Reference in made to telegram no. 19 sent by the Deseration at 10 R.O. on the 172- or Junuary, 1942. It is still my feeling that there should be no formal prosenta- tion st (10 or the 1dea of a stabilization fund. Since your talegram of the 15th of Junuary, I have been considering 1:0 matter NDC 2019 than ever before I belleve this strongly. In order to assure success, it may be desirable to discuss this question with the appropriate committees in Sougress an sell no to give Great Britain and other nited National 0 chance to roact to the proposition. DULL (....) Regraded Unclassified January 15, 1642. MEMORANDUM TO: Secretary Morgenthau FROM: Mr. Gaston J. Homer Butler, formerly Assistant Treasury Attache at Paris, who was dismissed from the Customs Service with prejudice because of an incident that happened on his return voyage to the United States, came in to see me this afternoon after having talked to Mrs. Klotz. His plea is that he is being made to suffer beyond his deserts in that all his friends, both in the United States and abroad, who hear of the case come to the conclusion that he was dismissed for dishonesty in some form and he denies most firmly there was anything corrupt in the favor he attempted to do for the Frenchman Robert of Coty's. He does not at all dispute the facts in the case as we know them. I toll him that he was not charged with being bribed and that officers of the Customs who knew him believed him to be entirely honest. I added that they explained this trans- action as characteristic of his habit of going beyond the bounds of good judgment in undertaking to do favors for ac- queintances. I told him that he was accused solely of misusing in 8 flagrant way his position as an officer of the United States and the special passport issued to him in that capacity. lle admitted that he was guilty of this and that it was an ex- tremely stupid thing to do, but that in view of his long and faithful service he thought the punishment too harsh. His record now is such, he says, that it is impossible for him to get any kind of a job. In palliation of his offense he said that he had been through an extremely difficult period in France, that he had undertaken many risks to help Americans and other refugees, that he knew very little about the controls established by the British and that he thought some allowance ought to be made for these special circumstances in judging him. I told him finally that I could not give him any promise or offer him any encouragement whatever, but that I would De- port to you on his visit. 1Rr Regraded Unclassified TREASURY DEPARTMENT 9 INTER OFFICE COMMUNICATION DATE January 15, 1942. TO Secretary Morgenthau FROM Mr. White There is attached a list of memoranda and reports prepared in the Division of Monetary Research during October, November, and December, 1941. D 10 Memoranda Prepared in the Division of Monetary Research during October, November and December, 1941. Industrial consumption of silver for 1941. Reports of daily information regarding our trade with Japan, China, and Russia. Status of the Mexican Stabilization and silver negotiations. visit to the Secretary by the Minister of South Africa, Oct. 3. meeting of the Secretary with the Mexican Finance Minister, October 0. Mexico's request concerning defaulted bonds held by the British. Organization of Financial Work in London Embassy. Request of South Africa Regarding Priorities. Memorandum for the Vice President regarding Economic Defense Functions Administered by the Treasury. British Inquiries regarding Gold Payments from Russia. l'emorandum for the Vice President: Can a system of compulsory saving excises be made B satisfactory instrument for the pre- vention of war-time inflation and post-war depression? Conference held in Secretary Hull's office on October 7th, on financial arrangements between the United Kingdom and Russia and the United States and Russia. Summary of report "Amount of Taxes Needed in June 1942 to Avert Infletion." Exports of Philippine Iron Ore to Japan. Clippings on Women's Work in England Triangular Lend-Lease transactions. Preliminary report on census of foreign-owned property. Meeting of Secretary with Mr. Gromyko, of the Soviet Embassy, and Mr. Lukashev, President of the Amtorg Corporation. Axis and Allied Production of Airplanes and Tanks. Regraded Unclassified 11 Division of Monetary Research - 2 - Digests of Statements of the Ministry of Supply with regard to Lend-Lease arrangements for the distribution of small tools, and distribution of Lend-Lease agricultural machinery. Notes on the report prepared by Robert Nathan on defense pro- duction. Exports to Russia, China, Burma, Japan, France and other blocked countries. Exports from the Port of Manila, Philippine Islands, to China, Hong Kong, Burma, Japan and Russia. The Barnard proposal on compulsory saving, England - Food Supplies and Racketeering. Summary of British press opinion on British Production - Restoration of Incentives. British Expenditures compared to National Income, 1940-41 and 1941-42. Mr. Casaday's Mission and Financial Reporting from the American Embassy in London. Great Britain - Criticisms of Production. Attitude of British Exporters to British Export Policy under Lend-Lease. Developments in the British Cash Position. Conversation with Mr. Bewley regarding Anglo-Russian gold. Meeting at Secretary's home, November 9, at 8:45 p.m., with Mr. Philip Murray, regarding captive mine issue. Canada's blocked sterling. Trade Agreements Committee consideration of the proposed agree- ment with the United Kingdom. Summary of Commerce Confidential Report on the Aircraft Industry. Forecast of Canada's gold and dollar exchange position for the coming year, furnished by Canadians. Recent Developments in the United States-China Program. Regraded Unclassified 12 Division of Monetary Research - 3 - Spain - Aviation Lubricating 011 and Petroleum Products. Comments on Mr. Lubin's memorandum regarding the machine tool industry. U. S. Petroleum Exports to Spain. An approach to the problem of eliminating tension with Japan and helping defeat of Germany. Possible sale of British Bomber Contracts to Russia. British Women's War Work. British Film Settlement. Suggesting an informal committee regarding protective food. Proposed Research Committee on Income, Investment Savings and Expenditures. (Prepared by Messrs. Sullivan, Barnard, White, Blough and Haas.) Conference held in the Secretary's office on November 21st with Mr. Gromyko of the Russian Embassy. Distribution of Russian material. Supplementary Cuban Trade Agreement. British Press Summaries. British Excess Profits Tax. Memorandum on Eire. U. S. Petroleum Exports to Japan. German petroleum - - Standard 011 information. Axis oil situation. Oxford Institute of Statistics Article on Employment. British joint taxation of husband and wife and a possible deterrent to the employment of married women. Outline of telegram from American Ambassador, Chungking, reporting suggestions from Sir Otto Niemeyer regarding Chinese financial situation. Regraded Unclassified Division of Monetary 13 Research - 4 - Status of Gold Purchases from Russia. Notes on the Japanese Petroleum Situation. The Secretary's conference with Dr. Soong, December 9th. The Secretary's conference with Mr. Litvinov, Russian Ambassador. The Secretary's conference with Mr. Morris Wilson, of the British Supply Council. Conference in the Secretary's office December 22nd with Sir Frederick Phillips. Conference with Dr. L1, Chinese Embassy. The Banque Worms, Pierre Pucheu and their associates. British Financial Developments. Conference in Mr. White's office with Canadian representatives on revised Canadian exchange outlook for 1942. Conferences in the Secretary's office with representatives of Dodge Local-United Auto Workers regarding employment. Memorandum furnished by Sir Frederick Phillips on Planes for Russia. Answers to questions asked of Mr. Bell by the Committee on Appropriations. Meeting to consider Ecuadoran request for & Stabilization Loan, October 24th. Questions and answers from the Secretary's press conference of June 26th on the sale of British securities and investments pledged to the R.F.C. Government War Risk Insurance for Property Damage. Current Literature on Government War Risk Insurance, Summary of "Civilian Welfare and Civilian Defense in Great Britain". Summary of Determination of Needs Bill Memorandum by the Assistance Board, presented to Parliament by the Financial Secretary to the Treasury. Regraded Unclassified 14 Division of Monetary - 5 - Research Recent U.S. Petroleum Exports. Material to be furnished the Economic Defense Board. Should the Shanghai Power Company be permitted to make pay- ments in dollars to the Kailan Mining Administration. Second Supplementary Trade Agreement with Cuba. French North African Phosphates. Stabilization Fund Developments. Distribution of Lend-Lease Goods. Saving a Billion. State Department memorandum on U. S. oil exports to Spain. Agriculture memorandum on preclusive purchase of Latin American cotton. Visit of Bolivian Minister and list of questions handed him to be answered and sent in. Visit from Ambassador from Ecuador and list of questions handed him to answer and return. Fields of activity of Canadian Committees. Canadian-American Production Committee. The Swedish Air Force Commission's claim of interest due set aside for purchase of aircraft equipment. Correspondence with Joint Boycott Council on subject of enforcement of the Foreign Funds Control. Data provided Secret Service on Japanese Nationals. Small Loan Facilities. Small Defense Loans. Relationship of Stabilization Fund to defense program. Comments on Supplementary Report of the Committee on Non- Defense Bank Loans. Regraded Unclassified 15 Division of Monetary - 6 - Research Comments on "Program for Dealing with Bank Reserves," pre- sented by the Board of Governors of the Federal Reserve System. The Federal Loan Agency, Defense, and Inflation. Current Trends in Silver Imports. Summary of article "Third Quarter Earnings of Large Industrial Corporations." Amortization of home mortgage loans as & rigid factor in individual budgets. The SEC proposal with regard to control over corporate financ- ing. Silver prices. Summary of W. W. Riefler's "Program to Stimulate International Investment." Silver Imports and the Industrial Consumption of Silver. The Handy and Harman Estimate of Industrial Silver Consumption. R. F. C. Loans to Business Enterprise. A fiscal Program for the Calendar year 1942. Specific Objections to the Barnard Plan. TFR-300 Reports in the name of the State of Vatican City. Proposed Changes in Capital Movements Reports. Drafts of resolutions regarding American Republics cooperation in blocked funds. External Loans of Iceland. Stabilization Fund Loan to Iceland. Income Payments, Retail Sales and Sales of Series E Bonds. The issue of Cuban paper pesos. French North Africa and the German War Economy. Imports of U. S. dollar notes into the United States from the Orient. Regraded Unclassified 16 Division of Monetary Research - 7 - Nickel and Copper in Minor Coins. Sweden and the New Order. Coinage in Foreign Countries. Changes in Hours, Production, Employment, and Output per Wage-earner and Wage Hour in Selected Industries. Coinage for Latin American countries. The Circulation of Coin and Production at the Mints 1900-1940. Appointment of Fox as Adviser to the Ministry of Finance. Can Germany derive any benefit from an increase in the useable foreign exchange assets of Switzerland. Conclusions of Economists Group on Defense Production. Are we losing the War? Agreement on Figures on Taxes Needed. Chronology of telegrams sent by Treasury to Fox. Canada's gold. South Africa. Canada's Blocked Sterling. Resolution on gold mining and scarce materials passed by Joint Canada-American Economic Committee. Canadian Production Figures. Fields of activity of Canadian Committees. Canadian-American Production Committee. President's instructions that State, Treasury, and Justice Departments liberalize travel regulations between U.S. and Canada as much as possible. RFC's unwillingness to import scarce metals from Canada on which there is a duty. Conference in Mr. Berle's office on Priorities and Gold Mining. Division of Monetary 17 Research - 8 - Modification of general provisions in the Cuban trade agreement. New Government in Panama. Panamanian note issue, and Panamanian Paper Currency. Developments in Ecuador. Chronology of negotiations with Reuador. Cost of field trip around South America. Mexico. Reaction of Latin American Countries to Japanese War. The effect on Latin America of lower silver prices. Duty on "Brazilian Burlap". Cuban Financial Agenda. questions for submission to the Bureau of Engraving and Print- ing with relation to the printing of Cuban currency. Report of American Technical Mission to Cuba regarding Cuba's immediate monetary problems. United States Currency in Latin America. Sorrowing funds from state Governments, etc. -- The Budget Director's suggestion. The Federal Reserve proposal for an industrial loan corporation. Selling savings bonds to state governments and other large investors. A suggestion for monetary warfare. Should Government contractors be paid in tax-anticipation notes or other Government securities? The reserve supply of U.S. currency and a suggestion for borrow- ing some money. Income and Consumption in Germany during the Rearmament Period, by Frederick Strauss. Germany's Economic Gains in Russia. Regraded Unclassified Division of Monetary 18 Research - 9 - Cork production of the Western Mediterranean Countries in relation to the German and American Armament production. The Japanese "Oriental Economist" attacks Germany's economic plans. Purchase of raw silk from Free China by the United States. Recapture of Ichang by the Chinese may considerably alleviate the food situation in Free China. Meeting to discuss proposals for bringing stronger political and economic pressure to bear upon Japan. How Shanghai serves the Japanese in ways inimicable to American interests. Possibility of Depressing the Quoted Value of the German Mark and the Japanese Yen in Latin America. Portugal permits Timor to be used as air base for Japan. Proposal that yen be sold at devalued rate. Agriculture memorandum on preclusive purchase of Latin American cotton. Attitude of the American Consul General at Shanghai regarding imports into Shanghai and the Stabilization Board. Imports of U.S. dollar notes into the U.S. from the Orient in recent months. Japanese evacuate Chengchow. Banking organization of Hong Kong. The incorporation of Thailand into the yen-bloc would be an important step in Japan's achieving her "co-prosperity sphere". New note issue by Nanking Central Reserve Bank and British recommendation that Stabilization Board immediately announce that exchange for essential imports will continue to be pro- vided for indefinite period. The new China program. Proposal to Integrate U. S. export controls and Chinese import controls. Division Research of Monetary 19 - 10 - X Recent Developments in the United States-China program. Comments on United States-Japanese relations. Problems with which the U.S. Treasury must still deal in con- nection with the China program. State Department Consignee Control. Effect of withdrawal of U.S. Marines on position of Shanghai. Proposed steps to make effective our economic measures against Japan. Comments on the Current Chinese situation. Dollar holdings in Hong Kong. Suggested activities of the Division of Monetary Research in connection with the new situation. Question of treating occupied China as enemy territory. Revocation of Indo-Chinese and Occupied China's licenses. Request for Treasury approval for shipment of petroleum to Free China. Proposal that Netherlands East Indies finance their trade with China in sterling. Proposal that Russia be deleted from the list of blocked countries. Request of Koreans for special treatment by Foreign Funds. Treasury activities in connection with the China program. German requisitions and purchases from the French unoccupied zone. Proposal that an Interdepartmental Committee be formed to study steps necessary for the prevention of inflation and to issue a public statement on this question. Priorities on steel for gold mining. Turkish Foreign Exchange Holdings. Regraded Unclassified Division of Monetary 20 Research - 11 - Private Capital Investment in the Defense Program. Italian Public Finances. Fluctuations in the Reichsmark. Employment and Defense Expansion. Possible effects of complete breaking off of U.S. trade with Switzerland. Defense Industrial Facilities financed with Public and Private funds through September 30, 1941. Reported Defense Construction Schedules. General rationing and the restriction of consumption in the United States. Termination of U.S. trade and financial relations with Spain. Proposal that all Swiss gold be shipped to the United States. Meeting of December 19th with the Swiss Minister. Pointe from recent French consular reports and other printed sources. Capital Flow between the United States and Canada. Capital Movements during the first ten months of 1941. British Purchasing Mission Forecast of Payments: Comparison of various B.P.M. Forecasts of Payments Analyses of B.P.M. Commitments and Payments Changes in Commitments by B.P.M. Comments on memorandum received from Secretary of the South African Legation. The British Dollar Position. Discrepancies between published gold holdings of the Exchange Stabilization Fund and holdings indicated by the Federal Reserve table "Analysis of changes In Monetary Gold Stock". Review of sales of British-owned dollar securities. Importance of by-product mining in the gold and silver industries. Regraded Unclassified Division of Monetary 21 Research - 12 - Possible sale of British Bomber Contracts to Russia. Comparison of new British estimate of their gold and dollar receipts and expendi tures with that presented to Congress by Mr. Bell. Recent Developments In Take-over Problem. Public reaction to White paper on Lend-Lease export policy. An alternative plan for encouraging voluntary defense saving. Effect of SPAR's allocation of tin to Latin America on need for British exports. Notes on the Legality of Lend-Lease Take-Over of British con- tracts. Sir Frederick's memorandum of December oth on Anglo-Russian Payment Procedures. British Gold and Dollar Assets. Gold Holdings of the South African Reserve Bank. Silver available for coinage of 5-cent pieces. Domestic Problems involved in Reducing the Price of Silver. British Ministry of Information Home Press Surveys, London Press, Agreement between Bank of England and State Bank of U.S.S.R. Great Britain - Post-War Planning and Reconstruction. British stamp plan to distribute lend-lease food. U.K. - U.S. Tax Convention. British Experience with the 100% Excess Profits Tax, as indi- cated by Reactions of Business and the Press. British government machinery for economic coordination. Proposed 100. tax on all profits over 6%. British Press Summaries. Eire Assets in the U.S. and U.S. Assets in Eire. Estimated Benevolent Remittances U.S. to Eire, 1939 and 1940. Division of Monetary 22 Research - 13 - British Select Committee on National Expenditure. French North Africa and the German War Economy. Treatment of Switzerland in our Economic Defense Program. Matters which the Economic Defense Board should be consider- ing, if it is not now doing SO. Estimated German production of certain armaments in March 1943. Possible freezing of Ukrainian Insurance Societies. Argentina as & possible subject of Economic Warfare Board action. Information from our Allies. Significance of the Accumulation of Sterling Balances in London for Post-War Trade Policy. U.K. Dollar Expenditures. Analysis of U.K. Government Expenditures paid for out of overseas sources during the first eighteen months of war. Canadian Trade. U.K. Export Figures. Poreign Investments in the United States of Axis Powers and Occupied Countries. Publication of Treasury Statistics of possible use to the Enemy. Possible Effects of & Complete Interruption of trade with Switzerland. Economic Organization of the Danube States. Sweden's contribution to the Axis War Effort. Latin American Sterling Balances. Bolivian Developments. Chronology of Stabilization Credit Negotiations with Bolivia, Regraded Unclassified Division of Monetary 23 Research - 14 Latin American Countries as Intermediaries in Japanese Trade with the United States. Colombia's Complaints about the Proclaimed List. Current Situation in Argentina. New Dominican Republic Reserve Bank. United States Sugar Concessions to Cuba. Offer of credit by Chase and National City to Chile. Extent to which FFC can make use of the Export-Import Bank's recent scheme of export credits for Latin America. Activity in individual Latin American countries inimical to the United States and retaliatory measures of an economic nature which the U.S. can take against these same countries. Credit Control in Australia. Curtailment of loans to civilian industry and trade by com- mercial banks. Interim Report of the Committee on Skilled men in the Service. Stabilization operation with Cuba involving a sale of gold on credit. Export-Import Bank proposals. Procedure recommended in initiating Inter-American Treasury Bulletin. Analysis of the proposed International Wheat Agreement. Coinage Problems. Are Proclaimed List Banks in Latin America enabled by "exchange pools" to drain off their blocked dollars? Elimination of nickel from five-cent coins. Pros and cons of an embargo on exports and imports of U.S. currency. Summary of Director of the Mint's report on 5 cent and 1 cent coins. Division of Monetary 24 Research - 15 - Article requested by Nelson Rockefeller on "How Our Spending Program will affect Latin America". Consideration of questions asked by Mr. Irigoyen, Under Finance Minister of Argentina. Relationship of Stabilization Fund to the defense program. Why the Fund buys gold from day to day. Renewal of $50 million stabilization agreement of 1937 with the Central Bank of China. Cuban monetary and banking proposals. Cuba's Agricultural Credit Problem. Application of Solvay American Corporation for release of $1 million for investment in Brazil. Duty-free entry of defense articles. The effect on Latin America of lower silver prices. Mr. Taub's memorandum regarding deficiencies in our utilization of manufacturing facilities for defense. U. S. firms with German connections. Shipments to Russia. Soviet Cash Needs. Soviet Financial Position. Commerce Report - Merchant Shipping, October 1941. Notes on Standard 01l's comments on the Japanese petroleum situation. Machine Tool Production - Commerce Report for October. Sale of Treasury Silver. Weakness in Unofficial Canadian Exchange Rate. Treasury Support for Removal of Tariff on Defense Articles. Effect of Suspension of Silver Purchases on Canada. Regraded Unclassified Division of Monetary 25 Research - 16 - Coordination of Canadian Allocation System with American Allocation Program. Estimated Dollar Position of Canada, Application by the Chemical Bank and Trust Company to trade claims on German banks for Colombian Government bills held in Germany. Gold and Dollar Notes as Payment for Shipment of 011 to Japan. Disposition of 395 Corporations taken over by the Alien Property Custodian in the Last War. Nature and importance of Liberia's foreign trade. A plan for avoid preferential treatment of American creditors of Germany. Use of Blocked Funds to Service Japanese Dollar Bonds. Export control violation at Martinique involving operations in the United States. Imports of Japanese fish-liver oils by way of Latin America. The importance of certain miscellaneous imports from Japan and China. U.S. Exports of concentrated milk products, cocoa and chocolate to Thailand. Present status of Spanish foreign exchange control. United States currency imports. Japan's proposal to pay for oil with funds from Latin America. Applications to permit the sale of the Winter Austrian Properties to Swiss interests. The importance of bristles, essential oils, and camphor oil imported from Japan. Meeting regarding applications on the Silesian-American Corpora- tion, and the Winter Austrian Magnesite Properties. American Insurance Companies operating in Latin America. Transactions concerning certain foreign dollar bonds. Regraded Unclassified Division of Monetary Research 26 - 17 - Austrian and German Nationals' applications to sell Reichamark bonds of the Conversion Office for German foreign debts. Application to release approximately $100,000 from the earmarked gold account of the Central Reserve Bank of Peru to be shipped to Argentina as 8. means of acquiring Swiss francs from the Swiss National Bank. Transfer of Swiss-owned Gold in the United States. Shipment of cotton tire cord fabries to Sweden. Requests by central banks or exchange control authorities in South America to have funds held in the United States for blocked accounts of "Proclaimed list" nationals transferred to central bank of relative South American Republic. Gold and dollar banknotes as means of servicing Japanese dollar bonds. American exports to Turkey. Purchase of Chinese silk for delivery to Mexico. Blocking of debts due on commercial account to American individuals or concerns by countries coming under Executive Order No. 8289. Application of the BIS to purchase securities and short-term obligations in the market. Advisability of placing Gustemalan coffee interests under Proclaimed List restrictions. American private banking firms in Latin America. Recent price trends in leading commodities exported from the United States to the French West Indies. Withdrawal of Swedish and German banks from a syndicate of Hungarian Standstill creditors. Application by the Standard 011 Company of New Jersey to permit the payment of debts of its subsidiaries in occupied territory. Finnish debt position. Blocked assets of the Danish Government. Problem and techniques of control of foreign business enter- prise in the United States. Axis unblocked funds in Latin America. Regraded Unclassified Division of Monetary Research 27 - 18 - Application to transfer $560,000 of gold bars from the earmarked gold account of the BIS to the earmarked gold account of the Banco de Portugal. Panama holding companies. Comment on the alleged present "b1g demand" for silk waste. American-Danish loan and investment positions. Application by the International General Electric Company of N.Y. to receive $17,000 from the United Incandescent Lamp and Electric Company of Hungary, etc. Russian funds on deposit. Economic aspects of the Proclaimed List problem in relation to foreign funds. Application by the Continental Illinois National Bank and Trust Co. of Chicago to pay $1991.15 to Richardson and Auer for ser- vices rendered in connection with patent applications. Republic of China, secured Sinking Fund Bonds of 1937. Norwegian Financial Position in the United States; Earnings of Norwegian shipping. U.S. Textile Exports to French Africa and French Oceania. Blocked Nationals filing for themselves on TFR-300, Series A. Application by the National City Bank of N.Y. to debit the blocked account of the Banque Nationale Suisse and credit same to blocked account of the Spanish Foreign Exchange Institute. Applications to sell oil royalties to Swiss nationals residing in Switzerland. Increased Import of Swiss Watches. Application by Texas Company of China to transfer sum from Tientsin branch of Chase National Bank to & blocked account with National City Bank of New York. The dollar position of France. Swedish applications to permit the reversal of certain blocked funds. American Private Banking Firms in Latin America. Regraded Unclassified 28 Division of Monetary - 19 - Research The proposal to trustee funds for the French 7's of 1949. Gentlemen's Agreement Between the Swiss National Bank and the Swiss banks concerning dollar transactions. Application by Credit Suisse, N. Y., to sell Swiss francs to Credit Suisse, Zurich, by debit to latter's blocked dollar account with the applicant. American exports to French North Africa. Application by Standard 011 Co. of N. J., to permit the payment of foreign annuity claims out of dividend lire due the Standard 011 from Societa Italo American pel Petrolio. Desirability of importing current technical and scientific literature from Europe. Economic Activities of International Standard Electric Corpora- tion in Europe. Should American nationals be granted licenses allowing them to realize on claims against property in blocked countries? Assets in United States of Netherlands and its Colonies, Importance of Yoshino paper in national defense. Advisability of approving application allowing J. H. Monteath Company to accept U.S. currency in cover of shipment to Chinese national. Short-term Swiss banking assets in the United States. Application by the French-American Banking Corporation to negotiate a liquidation of the-Liability to them of the Hermes General Hungarian Exchange Bank, Budapest. Application by International Business Machines Corporation of N. Y. to acquire an additional interest in its German subsidiary, Deutsche Hollerith Maschinen G.m.b.H. Should American stockholders in French and Belgian Corporations be permitted to receive payments of dividends from these corporations? Foreign Funds Control request for information on 30 German business enterprises in the United States. Division of Monetary Research 29 - 20 - Spain as a Generally-Licensed National. Securities of foreign corporations tradedon national exchanges in the United States. Blocked funds at the New York Federal. Desirability of revoking the general licenses issued to the four neutral European countries. Considerations favoring the revocation of the Swedish General License. Portugal as a Generally-Licensed Country. Sequestration of European and Japanese stocks, bonds and evi- dences of ownership. Switzerland as a Generally-Licensed Country. Applications to Foreign Funds Control to effect transactions involving Worms and Company. American Exports of Petroleum Products to certain French possessions. Current reports in addition to the above: Daily report on transactions in domestic stocks (compiled from S.E.C. figures). Weekly table: "Balances and Earmarked Gold Held for Foreign Account". Weekly table: "Net Capital and Gold Movements". Material for monthly Treasury Bulletin. Correspondence: 162 Letters replied to. In addition to the above, material falling into the following categories is also prepared: 1. A large number of tables on various items. Division of Monetary Research 30 - 21 - 2. Reports on conferences in which this Division participates. 3. Participation in preparation of some of the state- ments and speeches by the Secretary. 31 January 16, 1942. Dear Mr. Wateon: On behalf of the Secretary 1 as acknowl- edging your telegram of January 14th. Mr. Borgesthau is every from Washington, but just as soon as he 10 back, I shall give his this message, and I know that be will be pleased to have the information that you sent. Sincerely yours, (Signed) n. S. Alotz E. 8. Klots, Private Secretary. Mr. Thomas J. Vateon, 590 Madison Avenue, New York, lev York. GEF/dbs Regraded Unclassified Treasury Department 32 TELEGRAPH OFFICE P015 WD 62/61 SER MA NEWYORK NY JAN 14-42 518p 1942J/M 14 PM 5 42 THE HONORABLE HENRY MORGENTHAU JR SECRETARY OF THE TREASURY WASH DC BY HOLDING UP OTHER WORK WE WERE ABLE TO SHIP ONE MILLION BOND ASSEMBLIES TODAY, WHICH IS 250,000 OVER AND ABOVE OUR SCHEDULE. THIS IS IN ORDER TO CREATE AN INCREASED INVENTORY IN THE BUREAU OF PRINTING AND ENGRAVING. WE WILL CONTINUE SHIPPING IN ACCORDANCE WITH THE REGULAR SCHEDULE, AND WHENEVER POSSIBLE TO HOLD UP OTHER WORK WILL SHIP EXTRA ASSEMBLIES THOMAS J WATSON 532p Regraded Unclassified Treasury Department 32 TELEGRAPH OFFICE p015 WD 62/61 SER MA NEWYORK NY JAN 14-42 518p 1942 JAN 14 PM 5 42 THE HONORABLE HENRY MORGENTHAU JR SECRETARY OF THE TREASURY WASH DC BY HOLDING UP OTHER WORK WE WERE ABLE TO SHIP ONE MILLION BOND ASSEMBLIES TODAY, WHICH IS 250,000 OVER AND ABOVE OUR SCHEDULE. THIS is IN ORDER TO CREATE AN INCREASED I INVENTORY IN THE BUREAU OF PRINTING AND ENGRAVING. WE WILL CONTINUE SHIPPING IN ACCORDANCE WITH THE REGULAR SCHEDULE, AND WHENEVER POSSIBLE TO HOLD UP OTHER WORK WILL SHIP EXTRA ASSEMBLIES THOMAS J WATSON 532p Regraded Unclassified Unfilled Orders for Sevings Bonds nt the Federal Reserve Banks and the Post Office Department January 2 to date CONFIDENTIAL (In thousands of pieces) : Unfilled : New orders : : Unfilled Bonds : Stock of : Day :orders at : : : orders at : "5" type IBH received manufactured : ppening of : : : close of bonds deliveries : business today today : : : : : business : on hand this day : Jan. 2 429 932 370 991 61 400 3 991 600 420 1,171 61 400 4 1,171 none-no m11 none-closed 1,171 61 400 5 1,171 257 445 1,255 333 310 6 1,255 425 450 1,408 511 520 7 1,408 639 450 1,597 511 525 8 1,597 460 460 1,597 511 450 7 1,597 649 500 1,471 236 550 10 1,471 155 525 1,101 236 575 11 1,101 none-no mail 560 541 236 600 12 541 859 595 80F 236 625 13 805 423 630 598 236 650 14 598 622 670 550 236 685 Office of the Secretary of the Treasury, January 15, 1942 Division of Research and Statistics. Regraded Unclassified CONFIDENTIAL UNITED STATES SAVINGS BONDS Comparative Statement of Sales During First Ivelve Business Days of January 1942 and December and November 1941 (November 1-15, December 1-13, January 1-14) On Basis of Issue Price (Amounts in thousands of dollars) : : Amount of Increase : Percentage of Increase Sales : : or Decrease (-) : or Decrease (-) Item : : : December November : January : December : January : December January : 1942 : 1941 : 1941 : over : over : over : over : : : : December : November : December : November Series I - Post Offices $ 76,833 $ 25,353 $ 19,874 $ 51,480 $ 5,479 203.1% 27.6% Series I - Banks 208,339 47,376 36,217 160,963 11,159 339.8 30.8 Series 1 - Total 285,171 72,729 56,092 212,442 16,637 292.1 29.7 Series I - Banks 31,088 9,424 9,642 21,664 - 218 229.9 - 2.3 Series G - Banks 124,732 61,650 60,389 63,082 1,261 102.3 2,1 Total $440,991 $143,803 $126,122 $297,188 $ 17,681 206.7% 14.07 Office of the Secretary of the Treasury, Division of Research and Statistics. Jamary 15, 1942. Source: All figures are deposits with the Treasurer of the United States on account of proceeds of sales of United States savings bonds. Note: Figures have been rounded to nearest thousand and will not necessarily add to totals. CONFIDENT UNITED STATES SAVINGS BONDS Daily Sales - January, 1942 On Basis of Issue Price (In thousands of dollars) Post Office Bank Bond Sales All Bond Sales Bond Sales Date Series 1 Series I Series 7 Series G Total Series I Series F Series G Total January 1942 1 $ 3,982 $ 10,229 $ 1,964 $ 7,605 $ 19,798 $ 14,211 $ 1,964 $ 7,605 $ 23,780 2 4,802 10,736 2,056 7.779 20,571 15,538 2,056 7.779 23.373 3 4,457 9,557 1,278 5,453 16,289 14,015 1,276 5,453 20,747 our 5 9,684 26,724 3,240 13,704 43,668 36,408 3,240 13,704 53.352 6 6,711 7,659 1,341 6,778 15.778 14,369 1,341 6,778 22,489 7 6,748 21,267 3,692 18,832 43,790 28,015 3,692 18,632 50.539 OR 7,509 21,297 3,821 12,871 37.989 28,806 3,321 12,871 45.498 9 5,746 12,359 1,798 4,765 18,923 18,105 1,798 4,765 24,669 10 4,398 16,031 1,858 6,355 24,244 20,429 1,658 6,355 28,641 12 10,187 37,483 3,830 14,353 55,666 47,670 3,830 14,353 65,853 13 7,902 15,059 2,507 11,944 29,510 22,961 2,507 11,944 37,412 14 4,706 19,939 3,701 14,293 37.933 24,645 3,701 14,293 42,639 Total $ 76,833 $208,339 $ 31,088 $124,732 $364,158 $285,171 $ 31,088 $124,732 $440,991 Office of the Secretary of the Treasury, Division of Research and Statistics. January 15. 1942. Source: All figures are deposits with the Treasurer of the United States on account of proceeds of sales of United States savings bonds. Note: Figures have been rounded to nearest thousand and will not necessarily add to totals. Regraded Unclassified 36 January 15, 1942 Dear Mr. Stettinius: In the absence of the Secretary, I am acknowledging receipt of your mem- orandum of January 14th with which you transmitted 8. copy of the chart "Prog- ress in obligating and allocating Lend- Lease Funds". I shall present this to the Secretary as soon as he returns. Yours sincerely, (Signed) H. S. Akrz Mr. E. R. Stettinius, Jr., Office of Lend-Lease Administration, 515 22nd Street, N. W., Washington, D. C. File n.m.c. Regraded Unclassified 37 OFFICE OF LEND-LEASE ADMINISTRATION FIVE-FIFTEEN 22d STREET NW. WASHINGTON, D.C. E.R. Stettinius, Jr. Administrator CONFIDENTIAL Jamiary 14, 1942 MEMORANDUM To: Secretary Morgenthau From: E. R. Stettinius, Jr. Subject: Progress in obligating and allocating Lend-Lease funds The attached chart on the above subject is sent you for your confidential information. Attachment E CRET 38 ALLOCATIONS AND OBLIGATIONS LEND-LEASE FUNDS TOTAL WAR DEPARTMENT (Millions) (Millians) $ 14,000 $ 7,000 12,000 6,000 10,000 5,000 Procurement Procurament Authorizations PROGRAM LIMITATION Authorizations 8,000 4,000 APPROPRIATIONS ALLOCATIONS 6,000 3,000 ALLOCATIONS OBLIGATIONS 4,000 2,000 OBLIGATIONS 2,000 1,000 EXPENDITURES EXPENDITURES o o Min Apr May Jun Jul Aug Sep Oct Nov Det Jan Feb Mor Apr May Jun Aug Sep Otf Nov Dec Jan Feb 1941 1942 (94) 1942 NAVY DEPARTMENT MARITIME COMMISSION (Millions) (Millions) $ $ 2,800 1,200 2,400 1,000 Procurement 2,000 Authorizations Procurement PROGRAM LIMITATION 800 Authorizations 1,600 600 PROGRAM LIMITATION IALLUCATIONS 1,200 OBLIGATIONS 400 ALLOGATIONS 800 OBLIGATIONS 200 400 EXPENDITURES EXPENDITURES o 0 Mei Apr May Jun Jul Aug Sep Der Nov Dec Jan Fen Mor Apr Moy Jun Jul Aug Sep Oct Nov Dec Jon Feb 1941 (942 1941 1942 DEPT. OF AGRICULTURE TREASURY DEPARTMENT (Millions) (Millions) $ 1,500 1,000 DIFFERENCE RETREEN APPROPRIATIONS AND ALLOCATIONS - 70 1,250 800 LM MILLION RESERVE. 1,000 Procurement 600 Authorizations Procurement 750 PROGRAM LIMITATION Authorizations 400 PROGRAM LIMITATION 500 *-OBLIGATIONS ALLOCATIONS OBLIGATIONS ALLOCATIONS 200 250 EXPENDITURES EXPENDITURES o o Mor 4pr May an Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jon Feb 1941 1942 1941 1942 Office of Lend-Lease Administration - January 12, 1942 Regraded Unclassified Executive Report No 1 SECRET 39 Office of Lend-Lease Administration STATEMENT OF ALLOCATIONS AND OBLIGATIONS Weekly Report as of January 15, 1942 Adjusted Allocations Obligations Appropriation Category Appropriations Jan. 15, 1942 Jan. 15, 1942 Jan. 8, 1942 Jan. 8, 1942 Ordnance and Ordnance Stores 2,251,300,000 $ 2,146,380,2668 2,212,500,266 $1,060,502,098 dircraft and Aero. Material 2,860,500,000 2,806,133,792 2,756,133,792 1,883,366,451 Tanke and Other Vehicles 971,100,000 914,674,875 892,904,057 415,747,664 ipe 1,657,500,000 1,561,156,667 1,531,016,667 1,143,783,766 Visc. Military Equipment 466,500,000 432,158,409 432,158,409 89,820,797 Production Facilities 1,028,600,000 1,001,542,689 981,092,689 528,694,653 Agric. and Indust. Commod's 3,080,750,000 2,481,117,514 2,481,117,514 1,237,355,514 Mervicing and Repair of Ships 310,750,000 294,219,833 294,219,833 135,871,741 Services and Expenses 325,000,000 262,142,944 250,642,944 18,522,930 Idministrative Expenses 20,000,000 7,729,352 7,429,352 2,325,399 Total $12,972,000,000 $11,907,256,3411 11,839,215,523 $6,515,991,01 Adjusted Allocations Obligations Procuring Agency Appropriations Jan- 15, 1942 Jan. 15, 1942 Jan. 8, 1942 Jan. 8, 1942 War Department XXXXXXXXX 6,498,005,701$ 6,460,854,883 $3,342,152,683 Havy Department XXXXXXXXX 2,494,660,878 2,463,770,878 1,433,739,578 Maritime Commission XXXXXXXXX 1,101,869,000 1,101,869,000 808,817,065 Treasury Department XXXXXXXXX 817,112,879 817,112,879 368,288,412 Department of Agriculture XXXXXXXXX 994,927,939 994,927,939 562,484,002 her XXXXXXXXX 679,944 679,944 509,273 Total $12,972,000,000 $11,907,256,341 $11,839,215,523 $6,515,991,013 Funds for freight and other necessary charges are not included in obligations. *THIN DOCUMENT CONTAINS INFORMATION AFFECTION THE NATIONAL DEFEREE OF TM 081982 STATES WITHIN TEL WEASTRO OF TM ESPIO- SACE act. U.S.C. so, 01 AND II. THE TRANSMINSION on THE REVELATION of 198 CONTRETS IN AFT MATTER TO LF CEACTRONISED 201- NOW 18 PROBISITED ST LAW." $ Regraded Unclassified 40 January 15, 1942. Dear Mr. Stettimius: On behalf of the Secretary, visa is away from Washington, I as acknowledging the receipt of your letter of January 14th, to- gether with the enclosed mterial boaring upon the Protecol agreement for the U.S.B.R. I know that Mr. Morgesthan will appreciate having the information this contains. Sincerely yours, (Signed) H. S. kwiz X. 8. Klots, Private Secretary. Homorable B. 1. Stettinius, Jr., Office of Lend-Lease Administration, Pive-Pifteen 22ad Street, N.V., Vashington, D. c. GEF/dbs Regraded Unclassified 91 OFFICE OF LEND-LEASE ADMINISTRATION FIVE-FIFTEEN 22d STREET NW. WASHINGTON, D.C. Jenuary 14, 1942 My deer Mr. Secretary: 1/16/12 require Enclosed is EL copy of 8 schedule of availability of material being procured by the Treasury, as provided in the Protocol agreement for the U. S. S. R. This schedule has been prepared by Mr. Batt, with TEC react the assistance of representatives of the Treasury Procurement Division and this office. The decisions as to availability are those of Mr. Batt. It is believed that this schedule may be of value X to you in connection with procurement by the Treasury of material to meet the Protocol agreement. Sincerely yours 8. Stettinius, Jr. Enclosure The Honorable, The Secretary of the Treasury. Regraded Unclassified 42 Jenuary 15, 1942. Dear Mr. On behalf of the Secretary, who is away from Washington, I as acknowledging the receipt of your letter of January 14th, to- gether with the enclosed mierial bearing upon the Protecol agreement for the U.S.S.B. I know that Mr. Morgenthan will appreciate having the information this contains. Sincerely yours, (Signed) H. S. Klotz 1. S. Klots, Private Secretary. Nomorable E. R. Stattinius, Jr., Office of Lend-Lease Administration, Five-Fifteen 22nd Street, N.V., Vashington, D. C. GEF/dbs Regraded Unclassified 43 January 15, 1942. Dear Mr. Stattinius: On behalf of the Secretary, who is away from Vaskington, I as acknowledging the receipt of your letter of January 14th, to- gether with the enclosed material bearing upon the Protecel agreement for the U.B.S.R. I know that Mr. Morgenthan will appreciate having the information this contains. Sincerely yours. (Signed) H. S. Klotz N. S. Klets, Private Secretary. Homerable 3. R. Stattinius, Jr., Office of Land-Lease Administration, Five-Fifteen 22nd Street, I.V., Vachington, D. c. GEF/dbs Regraded Unclassified 44 CONDITION OF THE SOVIET ATD PROGRAM AS PROVIDED IN THE PROVIDE AGREEMENT Materiale Division Office af Production Management January 6, 1942 T 1 Comm1 teent Shipped Balance Die Balance Die or Delivered for Time Through Shipment Through Arailaide Through March 31 Jamury 1, 1912 December 31 Marth 31 Through Available Through June 30, 1942 Through January 8 dune 30, 1942 I (1) I (2) E (3) 1 (4) : (5) (6) (7) a 1 7. Field Telephone Apparatus 36,000 pcs. Scheduled release 72,000 pes. 72,000 pca. 105,000 pos. Anticipate to difficulties ID secting total amount of withheld by Strnal Corps has indicated 72,000 pos. will be available Signal Corps 106,000 pcr., providing reprisitions and specifications and shipped by April 1. Primary obstacle has been in are filed. Actury requested uniform parts and equipment specifications. Requisition for sound-powered apparatue from all manufacturers, which is not in accordance with n.s. at 50$ and field telephones increased 50 F by autual manufacturing practices. Signal Corpe and Amtorg repre- I agreement with Anterg. Order delayed for sound-powered centatives have clarred this problem. phones tue to changes in specifications. 91-mal Corps now reports original deliveries can be met. 1, Fleld Telephone Cable (7 strande: type) 167,500 miles 21,400 diles 353,600 alles 166,645 miles : 562,500 vilee Repulsitions have been filed for the Protect amounts. will he available and shipped, made up of British diver- Har Department releases are required to mail comitment etone, Possian private contracts, and Husstan procurements, by June yo. under Lend-Lesse. This le possible shipment under: present conditions accordine to Signal Corps, although surveys ACT being made to locate - producers. 0. Underwater Tele-1 much Cable 150 e, Name 300 in. Impossible to maice definite commitions no availability 450 is. Impossible to name definite commitments on availability (No requisitions) and shipments until detailed specifications for total and shipments until detailed specifications for total anount through June 1942 are received. assum Mirough June 1962 are received. Cable 300 in. Name 500 bs. Requisitions and specifications placed for 70.9 =[leo (ap-= 900 km. Complete specifications and requisitions for balance of (Specifications proximately 190 a.). This will be made available for Protors2 ascunts must be filed impediately in order to just cleared) shipment, socertain availability of types of cable and capacity for production before specific commitments exp be made on volume ef shipmente through June 30. 1 6,000 tensi 3,700 tone 8,300 time 8,300 tons 12,000 Una 12,000 tona (No requisition (Provided requisitive and unders are placed (montately) filed until December 1941) 45 Commi teent Shipped Balance Due Balance Due or Delivered for 2100 Through Shipment Through Available Through March 31 January 1, 1942 Available Through June 30, 1942 December 31 Through January 8 March 31 Through June 30, 1942 (2) (2) (3) (4) (5) (6) (7) n. Alumina (CONT'D) (b) Duralumin. 1,500 tope 1,590 tana 1,410 tone 1,410 tone 2,910 tone 2,910 tom Provided: (a) SPAD imediately authorizes delivery of Provided SPAP authorize release of necessary bard alley 2,000,000 lbs. hard alloy sheet for U.S.S.R. (b) Regnölder steet, and provided Reynolds Metale Company is able to Votals Company overcunes production Minilties which met production schedules. Protocol requirements for have this far prevented It from fully meeting production fabricated material mount - 4,500 tona over the , and schebles. pariod. In fact, 0.5.3.8. placed order to October 1941 for meething in excess of 5,300 tons. Dubject to mots- time indicated in Col. 5, 11 Le expected to be streast of the Protocol requirements by March 31. IS La also hoped that by the and of Juse the major portion of the Russian order for fabricated enterial will be shipped. If this 10 accomplished, - will, of course, be approximately 1,000 tone stead of our consitent on fabricated enterial. With respect to alusime-both ingot end fahricated= it must be rembered that every pound of aluaine delivered for the U.S.S.R. beans that such less for sur - aircraft program, There will be cirrespond- ing pressure against Adfilling the schedule of Buesian deliveries, se pressure increases for accelerating silitary aircraft production, 11. Mickel 1,200 tons 1,200 some Hope Requires further study. Nome (USSR proposes requisition ad- ditional 2,400 tom. Deliveries destred unknown) 15. Molytexum 300 tope 900 time 900 tone 900 tona 1,000 tone 1,500 tona (Provided requisitions and ordere are placed imediately) (Muhject to placing requisitions and orders) 15. Rolled Brass 15,000 tone 3,238 tena 26,762 tena 27,453 total 61,762 tona 41,762 toose Provided requisitions and orders are placed immediately. Provided orders 5 placed promptly and subject to speci- Offer of this amount pade to Rostarchik on 7. 1912.) Cleations which e. 5. facilities are capable of meeting. line 2,250 time 3,000 total 1,500 tona 3,750 topil 3,750 tona La indicated in Col. 5, the full amount of the Protocol (Pruvided requisitions and ordere are placed immediately) commitment can be supplied by March n. Code 900 tens 1,026 tons 774 total 774 tona 1,674 tona 1,675 time (Provided requisitive and indera are promptly placed) 46 Shipped Balance Due Balance Due or Delivered for Item Shipment Through available Through March 31 January 1, 1942 Through Available Through June 30, 1962 Through January a March 31 Through December 31 June 30, 1942 (1) (2) (3) (4) ($) (6) (1) 23. Ferrailicon 900 toos 342 tone 1,458 Lima 1,458 tons 1,800 tons Total gross tornige evailable any affer from Protound bois (Divided equally between 75% and 50$ ferroation) ailison content will be the - as that requested. 1,600 tome 2. Perrochroalum 600 Sona 200 topa 1,000 Cone 1,000 tona 1,600 tume (Provided requisitions filed promptly) (Subject to reasonably prospt filing of requisitions) 25. Armor Flate 3,000 - None 6,000 tone No allocations pade, 9,000 toma Subject to Navy purchases, specifications, and negotiations Problem of specifications and entreach- between Antorg and United States Steal Report Co. sent on Havy orders. 26. Hard Alloy and Cutting Tools $300,000 Notal $600,000 Approcisately $250,000 (500 tons ball wire, requisitioned $900,000 $900,000 (No requisitions December 15, 1961). Only 3 U.S. manifacturers can seet (Subject to conditions indicated is Oal. 51 received until Date- specifications applied for this item. enter 15, 1941) Approximately $58,000 (396 tona cold drum as. so, elec- trie furnace steal) available immediately from warehouse stock, Balance of commitment CAD be supplied provided: (a) Maq- uisitions are in the hands of DMV at least 60 days before first deliveries are to consence and (b) specifications are ressonably conformable to standard U.S. mill partice. 15. 11tab Spart Steel 300 tona Mone-Dus to: 600 Lone 800 tobs 900 U.S.S.N. proposes regulation additional 1,000 secs. U.S. Ertgeantinary (8-13-34) by March 31 and 200 additional tone by end of can emply this additional escunt beyond Protocol repuire- specifications not, April. Requisitions received December b, 1941. went provided U.S.S.S. will accept 25% tangsten type and conformable to 75% mo-called 662 type high speed tool stall, M U.S. core standard 0,5. mill: NUMBER are compelled to do in compliance priority order practices, U.S. M-14, as assisted. mills could at commance work. 21. Toal Hast 1,500 tons Hone 3,000 tona 400 tone of alloy tool steel completed by March 31, 1942. 4,500 total Can be made evailable. Although no requisition has been First requisition Additional 211 Lone by April 30, 1962. filed, D.S.S.R. has given Iron & Steel Branch, CPM, speci- (B-222) dated Nov. 390 tone plain carbon tool stal arailable by March 31, finations for 3,875 tonal drill rod. This CMS be supplied - 27, received Steal 15 tone is now ready for mill dispatch, sesits placing by June 30, 1962, if U.S.S.R. accepte standard v.s. analy- Branch Dec. 19, purchase order by Treasury and inspection, ne drill rod grade, 1961, called for No requisitions received for amounts in excess of the If above order filled, total mount svailable by June 30 611 tons alloy alove 1,001 tone. under this would be 4,876 tons, or 376 tone in excess tool steel. B-22) of commitment. same date, called far 390 tone plains carbon tool steel. :sted loss None None 5,960 toma Bose Additional quantities can be pupplied, depenting (1.182,103, datad 11-27-11 filed with OPM Steel Branch 12-17-41 on sise and analysis requested. 17 Comminant Shipped Balance Due Balance Das Item Through or Delivered lot Shipment Through Available Through March 31 Isnuary 1, 28/02 trailable Through June 30, UW December 31 Through January 8 March 31 Through June 30, 1962 (2) (2) (3) (4) (5) (6) (7) n. not Rolled Oteal 21,000 tone Huze 42,000 tone 42,000 tons 63,000 some 63,000 VOI (No requisitions) of not rolled strip or sheet steel can be made arailable Bubject to conditions not forth se Out, 5 with Lie Arther provided, (a) Requisitions see received In Steel Branch, condition that requisitions everiag the last 3 sonths' OFM, by 1-20-12 for full ascunts (b) Sises, both width and Protocol ascurte be received to the OPM Med Inst by paugh, are widely spread over full range of U.S. production March 1. and (e) Specifications are annformable to U.S. standards. 32. Steal Billets 24,000 tone None 48,000 tope 16,000 tons 72,000 lone 60,000 loss (Chrome-9ilions- lot requisition, by March 1 purment to B-520. available by June 30, dependent on availability of Manganees) B-528,dated 12-10-: Additional 14,000 tone can be nade available by March 31 Realning 12,000 tons can be supplied In July ed August, 41, rea'd OFM 12- subject only to the continued availability of chronium. 1942, again adject to the availability of carcadum. 31-41, allocated 12-31-61 for 16,000 tons for de- livery in Jan. & Feb., 1942. 33. Cold-rolled Steel Strip 24,000 tone None 40,000 Some 805 tone will be delivered in January, fulfilling only 72,000 tons 72,000 tons No requisition 20-1 requisition received to date. Total of 48,000 tons can will be available, subject to conditions outlized in Col. received until be made available provided: (a) Requisitions received by 5, with the Burther provision that requisitions covering December 17. January 20 for full amount. (b) Sizes, width, and page the last 3 sooths' Protocol income to be in the tants of are widely spread over full range of U.S. production in OPM by March 1. accordance with our respective capacities for the vari- mus sises, gauges, etc. (c) Other specifications are conformable to American standards. 3. Cold-rolled Steal Sheet 24,000 tens Rune 48,000 tone 8,050 tons will be delivered in January, fulfilling only 72,000 tant 72,000 tana No requisition requisition received to date. Balance of 39,950 tons can will be available subject to conditions outlined Le Cale celved until Dec- be made available provided: (a) Requisitions are 19- 5, with the further provision that requiritions covering ember 17. celved in OPM Steel Branch by January 20 for full mount, the last 3 months? Protocal escunte be received in the (b) Sises, both width and gauge are spread over full CPM Steel Branch by March 1. range of U.S. production in accordance with our respect- Ive capacities for the various alses, guages, etc. (e) Specifications are confirmable to U.S. standards, 35. Tin Date 12,000 tons 2,000 toma 22,000 tons Total of 18,000 tona has been ordered for shipment in 34,000 tone Mill capacities are sufficient to fill the belance of the January and February thus completing commitments through commitment but é critical situation in tin sig Cause a are February 20. March and later months are mbject to the tailment in Lond-Lease comitants as It has the domestic commitments in Gol. 7. needs, 48 -$- Comitant Shipped Balance Due Inlance Due or Delivered for Item Through Shipment Through Available Through March 31 January 1, 1942 available Through June 30, 1562 December 31 Through January 6 March 31 Through June 30, 1942 (1) (2) (3) a (5) (6) (7) à 36. Steel Wire 21,000 trae None 42,000 tone 6,156 tone have been made available for shipment by March 63,000 Loss Pull Protocol amount will be made available provided not In accordance in requisitions 31. Bilk of this 10 to high tensile mall garge. Impos- acre than 7,000 additional tons is of mall gauge, high with specifica- received until De- eible to make full 42,000 tons available in these speci- twosile strength as requisitioned in B-22h, 225, and 231, tions. cember 17. finations. Full amount can be sade available in low car- See resarks in Col. 5. ton, heavy gauge types, and provided regulations for balance are placed within two weeks. 37- Steal Wire lapee 3,600 tone None 7,200 toma 4,000 tons 10,800 tase Salance will be nade available subject to the following No requisitions will be made available by March 31 provided, (a) requist- conditions: (a) Requisitions are received by OPM not later received. time filed with OPM within next 2 weice. (b) Specifica- than March 1. (b) Specifications are conformable to tinns are conformable to American standards for sise, American standards for also, analyses, and tensile strength. analyses, and tensile strength. (c) Not more than 10% is (e) Net acre than 105 is in alsos 1/2* dieseter and under, in eisee 1/2" diameter and under. 30. Steel Alloy Tubes 600 tone Mone 1,200 tons 1,200 tona 1,800 toma Balance will be and available subject to conditions att- No requisitions can be made available provided (a) Analysis dose not lined in Col. 5 and provided repisitions received by OPM received. exceed us to 6% chrome, 1/2% solybdenm. (b) Sign is not not later than March 15 for April, May, and June deliveries. larger then 5" outside diameter, nor maller than 3/4* outside dismeter, and wall thicknesses for 2ª to 5º dismeter do not exceed 1/2" bot rolled. (c) Cold drews content does not exceed 10%. (d) Requisitions are filed with OPM by January 20. 39. Stainless Steel Wire 60 tone None 120 tone 120 tons 180 tona Balance will Ire available if ordered prosptly. Requisition - will be available if ordered immitiately. celved Dec. 31 for 12 tone. 10. Nickel Chrome Fire 60 tona 80 tone to toom 140 tone 100 tone 100 tons will be made available provided requisitions for the full ascunt are filed in January. 41. Barbed Wire 12,000 Lous 13,672 tone 24,000 tope 13,471 tone will be available for shipment January 31. 36,000 tome Balance will be made svailable by June 30. will be delivered Balance of 10,529 tens will be made available by March n. by February 1. 49 - 6 Comitiment Shipped Balance Dae Balance Due Item Through if Delivered fur Shipment Through available Through March 31 January 1, 1942 Available Through June 30, 1942 December 31 Through January 8 March 31 Through June 30, 1942 (2) (2) (3) (4) (5) (6) (7) 42. Telsel 6,000 tone 2,374.6 tone 9,625.4 tona See Cal. 7. 15,625 tone There will be adequate production facilities to entre fall escunts svailable. Inder edating arrangments with Ordnanos Department, the Army gate first call un each month's allocation of tolmol for TNT. Community, Materials Division namel samure availability. The War Department must de omer 10 diversion of this - for delivery to U.S.B.R. TWT 10,000 total Materials Division has no control over production and (se soon M distribution of TMT which 10 emissively under suntrol of possible) Ordrence Department. Consequently, it will be memory for War Department to arrange for diversion of TWT to Minil 0.5. ommitment. W. Mitroglycarine Powder No definite See Col. 7 Bo definite Same coment applies as to case of TNT. consitment cossitment Missing Pheno] 400 tom 737 fona 1,913 tane 2,250 tone 4,163 tons 4,163 tone will be available for delivery. will be available for delivery, Allocations must be made by January 15. 46. Bibylane Glycol. 360 tons 207 tone 50 tome Requisition should be filed with Chemical Branch, OPM, 073 tom Balance can be shipped if registions filed and alloca- by February 15, and deliveries will be made fulfilling Hone nade - sonth before deliveries are required. Protocol asounts to this period. 57. BortSon Broade 300 toos 54.5 tons 55.5 tona will probably be made evailable through current accelara- &5.5 tona Balance expected be be shipped about of schedule, tion of monthly deliveries. 40. Prosphores 300 tona 302 tone 298 tone Balance will be shipped if procurement agarcy places on- 598 tons Balance will be shipped If precuresses againg places - dere for Ml mount. dere Inc full ascunt. 49. 100 loss Home 1,300 tone Full 1,300 tone 2,200 toma Extinated 2,000 tone éan be sade available through drastic curtailment of at- will be evailable far shipmed under - conditions as to vilian uses and provided procurement agencies place or- Col. 5. dare imadistely with suppliers designated by CPM Chesi- cale Branch. n, Disailylandline. 200 tona 72.7 tons 527.3 tope Balance can be made available for shipment. 1,127.3 tone Belance will be made evailable for 11. 300 tons Home 600 toos Ordnance Department has control of practically all pro- 900 tone Ordnance Department las control of practically all - duction facilities and we are therefore unable to give any) dection facilities and - are therefore unable to give my assurance with respect to evailability. assurance with respect to evailability. 50 -1- Commitment Shipped Balance Due Balance Due or Delivered for Item Through Shipment Through Available Through March 31 January 1, 1942 drailable Through June 30, 1942 December 31 March 31 Through Through January 8 June 30, 1962 (1) (2) (3) (4) (5) (6) (7) St. Colleylin. 300 tone 50 tons 1,750 tane 1,700 Lone 1,650 come 2,400 time (Wet lants) will be made available. Efforts will be made to obtain will be seximo assont that cán be made svailable for cooparation of Ordinance Department for additional 500 tomal shipment. 53. Metal Outting Machine Tools Mo definite None There is very little procise information on this item. 2,625 machine tools valued at $26,639,111.73 have been comitements 194 units total- Due to the character of the item 11 is impossible to eeti-1 cleared on Lend-Lease for purchase by the Ordnance Depart= Inc $1,025,000 sate deliveries except on the barde of completed orders sert. These items have heen cleared eines October 1912 placed by Actorg placed with the manufacturer. Deliveries in general will and deliveries will be made during the current year. In on private orders be made during the year an the sumpleted requisitions addition, approximately $11,000,000 of assidos tools are have been shipped. and specifications filed the latter part of 1961 and dur- on order by Actorg, to be paid for out of private funds (Not under Land- ing the first quarter of 1962. and will be delivered during the year. These do not 4> Lease.) pear under Lend-Lease requisition. NOTE: The only conditions under which such of the equip- sent can the delivered would be by substituting aschines boilt in accurdance with Aperican standard specifications and taking such machines trom 18- portant programs covered by the Waster Preference List. St. Decurie Purnares. See The Si, Col. 5. Requisitions covering 67 electric furnaces in the amount of More 140 pieces initially comit- $1,514,000 have been placed on the Lend-Lease requisitions. As of November 15, 1941, there were 155 electric furnaces ted for delivery with a dollar value of $2,308,582.73 on order for which during 1962. Amtorg had filed a preference ruting on PD-1 form. These are understood to be in addition to those planed under Land-Leasa requisitions. See Item 53, Col. 7- 55- Purging and Soe Be 5), Col. 5. Antorg has on under 26u eachines with a dollar value of Irves Sguipment Hoce $195,035 627 pieces $6,015,508.71 ($195,035 of this ascurrt already shipped). (Mmber of united Initially oas- Bere Item 53, Col. 7. unicirm) mitted for 9 anothe, 56, /arious Indus- No information evailable on this item at. this time. Equipment (livery assist- ance practic- able) 5% stiratives $200,000 Name $1,800,000 Abrosives valued et $900,000 will DE available end shipped $2,700,000 Balance will be cade available if all requisitions are No requisitions No.1 by siddle of March. balance will be available only if filed in March. requisitions are filed unrediately to cover additional resived until Dec.191 51 - 8 Commissent Shipped Balance Due Balance Due Item Through or Delivered for Shipment Through Available Through March 31 Jamury 1, 1962 Available Through June 30, 1962 December 31 Through January e March 31 Through June 30, 1962 (1) (2) (1) (4) (5) (6) (7) 9. despinitized Electrodes 1,200 tona 365 tona 2,012 tons 967 toos 3,212 tone There are tao primary factors influencing echodules of will be available and shipped by March JL. shipments. One 18 the actual time musset in Impossible to minill first 6 months' commitment, 48 100 ing. The other to the specialized nature of this industry. days are contrained in actual process of namifacture. In For emple, only two companded have facilities for pro- fact, 289 toos ware diverted from Dritish shipment. This during the larger rises, which miss up over half the order. must be replaced. The following schedule of deliveries has treat arranged and 1* agresable to Antorg December 1961 368.1 tont July. 1942 380.0 toos January 1962 51.0 tons August 1942 326.8 tone Petruary.1962 197.1 tone September 12 267.8 tone March 1962 330.6 toné October 1962 256.1 tone April 1942 119.6 tone November 1962 174.3 toose May 1962 4143 tone December 1962 157.7 toos June 1962 L19.6 tons January 1963 117.0 toos a. Sole Leather 4,500 tone None 9,000 toos 4,500 tons 13,500 toos 9,000 tope Ln accordance with schedule (Col, 5). Balance Allocation de- will be available and shipped. Schedules of deliveries in equal monthly deliverise of 1,500 tons sech from August layed by failure made up with Russian agreement providing for shipment of through September, Additional requisitions and specifica- 1,900 tona per worth from January through September, tions should be filed immediately in order that afforts MY to secure speci- First month's commitments secured by diversion from civil- be más to answlerate completion of commitments, fleations until December 15. in orders, More will be shipped, If possible, to comply with the Protocol, al though specifications covering 1,500 tona only have been received. 66. Any Boots. 600,000 p. 400,000 pr. 600,000 pr. 1,000,000 pr., 1,600,000 pr. Bill area will be shipped by My JL. total etx sonth Protocol will be shipped by March 15. 67. Ang Cloth See Col. à This compitmt is being fulfilled by the Quartermaster No further 250,000 yds, 1,000,000 yds. (Four months¹ con- Corpa, which has already bought the full 1,000,000 yda. Commitments. altment, 10-1-41 600,000 yda. will be delivered latter part of December MBare to 1-31-\2.) and Junuary and 400,000 yds. in February. 500,000 yda, of reprocessed wool were offered to the Runsians but - fused because of apparent poor quality. ALL of this in- formation has been provided by the Ang. C 0 P 52 Y DEPARTMENT OF STATE WASHINGTON they January 15, 1942 In roply refer to PR 701.3311/234 The Secretary of State presents his compliments to the Honorable the Secretary of the Treasury and informs him of the receipt of a note dated December 30, 1941 from the Ambassador o Uruguay informing the Department that the Uruguayan Govern- ment has appointed Senor Carlos N. Fernandes Goyechea as Financial Attache to the Embassy of Uruguay in Washington. Copy:1c:1/19/42 Regraded Unclassified 53 CABLE In: Caracas Dated: January 15, 1942 Rec'd: January 16, 1942 Federal Reserve Bank of New York, New York. #1 Please buy for our account 22,857 ounces of gold within approximate value $8,000,000 debiting us cost of gold plus expenses. We shall leave gold purchased earmarked with your good selves. Kindly advise execution. Banco Central de Venezuela. HERRERA MENDOZA. (Received by telephone from Federal Reserve Bank, New York, 1:55 P.M., 1-16-42) ec 54 OUTGOING CABLE From: Federal Reserve Bank of New York Dated: January 16, 1942 Banco Central de Venezuela, Caracas. #1 Your no. 1. Cost of 22,857 fine ounces would only be about $802,000. We assume you wish to acquire gold to increase your gold reserve. Please confirm by cable. Federal Reserve Bank of New York, (Received from Federal Reserve Bank, New York, 1:55 p.m., 1-16-42) ec 55 CABLE From: Caracas Dated: January 16, 1942 Rec'd: January 17, 1942 Federal Reserve Bank of New York, New York. #2 Attention Mr. Allen Sproul Purpose of our purchase of gold is strengthen our reserves. (Signed) Banco Central de Venezuela HERRERA MENDOZA. (Received from Federal Reserve Bank, New York, 10:00 a.m., 1-17-42) ec 56 CABLE From: Caracas Dated: January 16, 1942 Rec'd: January 17, 1942 Federal Reserve Bank of New York, New York. Attention Mr. Allen Sproul #3 Refer to our wire no. 1 January 15 interested to purchase about $8,000,000 approximate equivalent 228,571 ounces of gold. (Signed) Banco Central de Venezuela HERRERA MENDOZA (Received by telephone from Federal Reserve Bank, New York, 10:00 a.m., 1-17-42) ec Regraded Unclassified TREASURY DEPARTMENT 57 INTER-OFFICE COMMUNICATION Secretary Thousand Morgenthau DATE January 15, 1942 TO FROM Mr. Dietrich CONFIDENTIAL Registered sterling transactions of the reporting banks were as follows: Sold to commercial concerns £46,000 Purchased from commercial concerns £15,000 Open marked sterling was quoted at 4.03-3/4, and there were no reported transactions. In a very thin market, the Argentine free peso improved another 10 points to close at .2375. In New York, closing quotations for the foreign currencies listed below were as follows: Canadian dollar 11-5/8% discount Brazilian milreis (free) .0516 Colombian peso .5775 Mexican peso .2065 Uruguayan peso (free) .5250 Venezuelan bolivar .2675 Cuban peso Par We purchased $1,700,000 in gold from the earmarked account of the Central Bank of the Uruguayan Republic. The Federal Reserve Bank of New York reported that the Bank of Mexico was making three gold shipments with a. total value of $4,373,000 from Mexico to the Federal, to be earmarked for its account. In London, spot and forward silver were again fixed at 23-1/2d and 23-9/16d, respectively, equivalent to 42.67$ and 42.78#. The Treasury's purchase price for foreign silver was unchanged at 35$. Handy and Harman's settlement price for foreign silver was also unchanged at 35-1/8#. We made no purchases of silver today. A Regraded Unclassified 59 BRITISH EMBASSY WASHINGTON, D.C. January 15th, 1942. PERSONAL & SECRET Dear Mr. Secretary, I enclose herein for your personal and secret information a copy of the latest report received from London on the military situation. Believe me, Dear Mr. Secretary, Very sincerely yours, (For the Ambassador) RJ Cm fbell The Honourable Henry Morgenthau. Jr. United States Treasury, Washington, D.C. Regraded Unclassified 59 Copy No. BRITISH LOST SECRET (U.S. SECRET) OFTEL No. 17 Information received up to 7 a.m., 14th January, 1942, 1. HAVAL Che of H.M. submarines set on fire and sank EX 2,000 ton merchant vessel in bellast in the Eastorn Mediterronsan on January 2nd. Australian Hudson aircraft attacked a Japanese crulsor and transport off the CELEBES Islands and claimed two probable and two possible hits, One medium sized ship of an outward tound convey WAS munk in the Vestern Approaches, In East Coast convoys, one medium sized ship was sunk and one medium sized ship damaged by enemy aircraft, 2. MILITARY LIBYA. By the evening of the 12th, contact had been cade with the anomy in the neighbourhood of zL BRECA. Purther South our forces have come against propared enemy infantry and (un positions roughly along the track from BUES SUERA IDENTIBAT - MAATEN GIOPER, There is much movement of enemy M.T. Teat of BURRUEA with which our armoured cars are alroady in touch. The number of prisoners cap- tired at SOLLUM is given as 7 Officers, 315 Other Ranks of whom approximately half are German, MAIAYA. It now appears that the Japanese have not followed up our withdraml beyond KUALA LUMPUR. 9 Japanese dressed as Malays were captured in South East JOHNRE, The Commander R.I.F. has assumed command of a force to be kno/ All Test Force comprising one Australian Infantry Brigade Group and one Indian In- fantry Brigade Group. An important convoy reached SINGAPORE on the 13th. PORICEO There has been an engagement between Indian troops and Jupanese forces near the SARATAK-DUTCH BORIEO border, No details yet available. it TABAXAN the Dutch forces have surrendered after heavy fighting, the oil denia >cheme having been completed. RUSSIA. There is now some confirmation that the Russians have tal- LYUDIVOVO on the VYASMA-BRYASK railway. German counter attacka in the area Sout- of NURSE is continuing. 3. AIR OPERATIONS MEDITERRATIONAL LIBYA. Right 11/12. TRIPOLI, HOS end military targets near SIRTE nere attacked by a Wellingtons and 8 Liberator, Energy aircraft damaged en Ordnance Depot at TCERUE, 12th, HALFAYA mad tembed at intervals throughout the day. 'light 12/13th, THIPOLI TRAD bombed by 5 Tellingtons. Regraded Unclassified 60 - 2 - During night 12/13th and the following day 6 enemy aircraft banbed BENGHAZI and laid mines in the harbour, MALTA. 13th. 38 bombers and fighters attacked HALFAR area des- troying 1 Amricane and causing some civilian dasualties, Two ME 109's were des- troyed. FAR EAST. 12th, 120 enemy aircraft made 3 attacks on SINGAPORE, 6 enemy fighters were destroyed and 4 more probably destroyed. Our losses were 6 aircraft and 2 pilots. 40 HOME SECURITY During daylight a single airoraft bombed Dorman Long's Iron Works, Redoar, Casualties reported 10 killed and a single aircraft bombed LOVESTOFT with some damage to private property and 35 people killed, 5. Japanese transports have been located in CAMRANH BAY and in MARSHALL ISLANDS, 6a Reported that the daily movement of about 1,800 tons of motor spirit and diesel oil from GERMANY to ITALY which started on 12th December was still con- tinuing on January 3rd. 7g 32 hours is in future to be the normal working week throughout the large textile industry in ITALY. This reduction is the result of increasing shortage of raw materials, 8, MAIAYA. It is understood that owing to damage at TAMPIN conside: able amount of rolling stook has been immobilized to the Nicth of this place, but at GENAS which is now railhead there ie sufficient stock to work the line from SINGAPORE to GEMAS to full capacity. The programs for the destruction of dredger: and rubber stocks at SELANG OR was successfully completed in the main, 61 NUMBER 14 SECRET COORDINATOR OF INFORMATION THE WAR THIS WEEK January 8-15, 1942 PARKING Printed for the Board of Analysts Copy No. 3 Regraded Unclassified January 8-15, 1942 SECRET THE WAR THIS WEEK January 8-15, 1942 In the Far Enst the Japanese continued this week to capi- talize the mobility won by the blows struck in the opening days of the war and their attacks splayed out from Rangoon to Rabaul, a distance of more than four thousand miles, On the Russian front the German withdrawal persisted and should soon reach the point where general military opinion places the so-called Nazi winter line. Elsewhere in Europe indications of coming German moves give as yet no adequate basis for assured prediction. The Drive on Singapore Reaching out toward the strategic center of the Allied effort in the Far East, the Japanese offensive this week pushed relentlessly down the Malay Peninsula toward Singapore. The Japanese have taken Kuala Lumpur, the world's leading rubber producing center; they have forced the British back to positions about 100 miles from the Straits of Johore; and there is as yet no indication of a slackening of the momentum of their drive. The Japanese are pushing forward in an area which produces the major portion of four commodities essential to the conduct of war-rubber, tin, and to a lesser degree kapok, and cinchona bark (for quinine). They have already seized areas producing nearly 55 per cent of the region's rubber and 70 per cent of its tin. Although we have stocks of tin sufficient for more than a year, without restrictions, OPM has ordered a 50 per rent 1 Regraded Unclassified SECRET SECRET curtailment in its use during the first quarter of 1942 and The Menace to Burma its complete discontinuance thereafter for n. number of non- Competent military sources believe an attack on Burma essential purposes (chiefly tin foil), will follow as soon as the situation in Malaya will permit a United States rubber stocks slightly exceed average annual diversion of adequate air support. Three comparatively peacetime consumption of new rubber-600,000 long tons- good routés lead into Lower Burma from Japanese-held but are well below even the 1941 consumption rate of 750,000 Thailand, and these are partly or wholly negotiable by auto- tons. Supplies for 1943 will depend primarily on reclaimed mobile during the dry season (which now obtains). In rubber (300,000 tons annual average) and production of addition there are at least six horse trails over the mountains synthetic rubber, for which our negligible present capacity is in this same region. These routes are vital because Lower to be inereased to 400,000 tons by mid-1943, according to Burma can be invaded much more easily than Upper Burmit, present plans, To fill the inevitable gap, civilian consump- and because in the dry season it is a flat desiccated plain tion is to be reduced in the immediate future by 80 per cent. which. with the exception of three north-south rivers, offers tin geographical obstacles to an invader who has once crossed the mountains, Defense of the Philippines Isolated in the Fortress of Corregidor and on the Bataan The Importance of Burma Peninsula, American forces have brilliantly repelled attacks Rangoon is the political, economic, governmental. and by the Japanese, but it is clear that the enemy is rapidly communications center of the country. It is also the port of bringing up fresh reinforcements in an effort to bring this reception for goods destined for China via the Burma Road. unequal struggle to a close. Rangoon has been repeatedly bombed, its stevedore force The strategic position of the Philippines has been alluded. disorganized, and its traffic apparently notably reduced in to in previous weeks, and is now apparently being exploited volume. to the full in wide-ranging naval and air attacks by the In addition to its crucial importance as the terminus of the Japanese on the Netherlands Indies and beyond. Japanese route to China, Burma produces annually 250 million gallons forces have seized the Dutch oil island of Tarakan off the of oil (and has large refineries); it is a very important rice eastern coast of Borneo. They have made landings on producer and exporter; it would be an excellent base for Minahassa, the northeastern arm of the Celebes, and they bombing India and preying on commerce in the Bay of have repeatedly bombed the Australian outpost at Rabaul. Bengal, and it might be developed as a base for an assault on guardian of the vital sea communications to the east of the India. Moreover, the conquest of Burma would deny to the Netherlands Indies. United States essential tungsten imports. During the first Mix months of 1941 more than half of our total imports of this metal (originating in China and Burma) were shipped from Rangoon. 3 2 SECRET SECRET The Significance of Changes in the Chinese Government and has a Japanese wife. As Governor of Fukien the latter Since the entry of the United States and Britain into the offered indifferent resistance to the Japanese. Far Eastern conflict, the attitude of the Chungking govern- ment has been the subject of the most attentive interest. The recent changes in the higher ranks of the government at German Withdrawal in the East Chungking are believed by Ambassador Gauss to reflect It is not yet clear how seriously Soviet attacks are inter- merely the effort of the Kuomintang to consolidate its power, fering with the Nazi withdrawal on the main Russian front. Chiang Kai-Shek and his polícies remaining unaffected. It An important threat to the Germans will appear only if the is also to be noted, however, that officials known to be Russians succeed in making a notable breach in the line on ardently pro-American and pro-British have been displaced which the Nazis propose to stabilize. Military observers are T. V. Soong has replaced Quo T'ai-ch'i as Foreign Minister. inclined to agree that that line runs, in the north, Lake The latter is a man of American education, and he was Ludoga-Volkhov River-Lake Ilmen-Valdai Hills; in the Minister and Ambassador to Great Britain from 1932 to 1941. south, Kursk-Kharkov-and then generally south to the Since this step was taken in part to strengthen Mr. Soong's Sen of Azov. position in Washington, undue significance might readily be In the center, German intentions are less clear and there attached to it. On the other hand, for Quo T'ai-ch'i to are several alternatives. If the Nazis intended to hold the remain in eclipse would be a blow to democratic interests. line of the Oka River, the Russians have already breached H, H. Kung, who is Minister of Finance and also friendly that at Kaluga. The next line, Rzhev-Bryansk, apparently toward the United States, has been ill and is recuperating. offers the last possibilities of adequate troop shelter east of It is possible that recent changes in office reflect a decline in the Smolensk region. The Soviets have now driven a wide his power, which has been very extensive at Chungking. salient through this line at Lyudinovo and Kirov, and have breached the lateral railroad line from Vyazma to Bryansk. T. V, Soong is his rival. If the Germans lose this line, they may still fall back to the Perhaps connected with Kung's illness is the displacement Smolensk area, but any retreat beyond that point would, in of T.P. Tsiang from the key post of Secretary-General of the Executive Yean, or, in effect, chef du cabinet to the General- the opinion of compotent military observers, mean a disor- issimo. Dr. Tsiang attended n small high school in North ganization of the whole central German defense system and a blow of the most serious character. Dakota and spent eleven years getting his education in the United States. He became the leading historian of Chinese foreign relations and Dean of Tsing Hun University laefore A Line of Vital Railheads entering the government. Like Quo T'ai-ch'i, he represents The Nazi stabilization line is not to be conceived as a the democratic front in China. It is certainly of importance natural barrier in any sense. It would simply represent an that his place no Secretary-General has been taken by Ch'un effort to protect certain railheads which lie in general on the Yi, a notorious opportunist who attended school in Japan elight elevation marking the watershed. Even the rivers 5 4 SECRET SECRET forming part of this line now offer no real protection, since Riviera," sheltered by the abrupt escarpment of the Yaila they are frozen over during the winter months. Mountains and enjoying n milder climate. The nobility of Cities like Smolensk and Kharkov are rail junctions and, 1 Tsarist days had luxurious winter homes there, and the according to the report of a reliable observer, probably mark Germans planned to use the area as a recuperation center for the enstward limit of Nazi track conversion efforts, Rail- their wounded. heads are naturally vital in a campaign such as that in With the exception of the southern mountains, the Crimea Russin, where the Germans have been forced by inadequate is a platform sloping gently to the north. The area north of roads and by gasoline and tire shortages to rely on the rail- the mountains is almost entirely steppe-dry, inhospitable, roads to an upusual degree. and sparsely inhabited. With the exception of the south- Smolensk also offers the only adequate extensive winter mistern region, the Crimen is poorly provided with roads, as shelter for troops on the central front, if half-ruined Vyazma the map shows, and the Russians are already in possession is neglected. In the vicinity of Smolensk the Germans have, of parts of this area. according to reports, constructed winter quarters on a large It is far too early to predict the course of the Russian scale. offensive in the Crimea, Anything like a complete defeat of the Germans in this area would seriously jeopardize the whole Crimean Offensive Nazi position in southern Russia. A close observer of the In the Crimea the picture is clearer. There the Nazis Russian scene believes that the demonstrated weakness of seem definitely to have been taken by surprise and with the German air arm in the Crimea is evidence of a voluntary inadequate air defenses, with the result that the Russians withdrawal. of German air strength from the eastern front. have made successful landings on three faces of the peninsula. He points out that the Crimean winter is not such as to They have relieved the crucial naval base at Sevastopol, have oblige the réduction of air strength (as may have been the taken Balaklava, have made landings at Evpatoriia and Yalta, case further north). He concludes that this voluntary with- and are gradually pushing inland toward Simferopol, the drawal may be connected with a massive German air con- administrative center of the Crimea. At the same time the centration aimed at some all-out objective, such as an attack Russians are moving westward on Simferopol from a line on British naval forces in the Mediterranean or in British counecting the Black Sea and the Sen of Azov, near Feodosiia. home waters. He excludes an immediate attack on Turkey; if the Nazis had intended such an attack, they would not Crimea Suited to Winter War have permitted Russian successes in the Crimea, precisely As the nuap indicates, the Crimea is far more suited to calculated to stiffen the backs of the Turks. winter operations than the more northerly parts of the Rus- sian front. The peninsula as a whole has an average January Nazi Preparations in the Mediterranean temperature of about 32 degrees, and the snow cover in the colder interior region lasts only for some forty days. On the There is positive evidence, as well, of Axis activity in the peninsula's southern tip, however, is the favored "Crimean Mediterranean which might be preparatory to important 7 6 SECRET SECRET action against the British fleet. Concentration of submarines and high speed surface craft, coming through Gibraltar, is Anti-Collaborationiam in France reported to our Consul in Geneva by an informant who has As n concomitant of current German difficulties, anti- just spent some weeks in France, and who goes so far as to collaborationist sentiment in official French circles is reported suggest the possibility of a large-scale attack on the British to have grown notably. It is no longer Pétain alone who is navy in that area. Great activity is also reported at Pan- mentioned. The conservative Bouthillier, Finance Minister telleria where speed boats and two-man torpedo carriers are with Banque Worms connections, is said to regard collabora- being gathered, possibly for an attack on Malta after that tion as a dead issue, an opinion shared by numerous of his stronghold has been sufficiently softened by air attack, In friends. Even Pucheu is hesitating, although loath to admit this connection it is to be noted that Malta has had forty- his earlier error. And Darlan is said to feel sure that the two air-raid warnings during the past week, bringing the Allies will now win. total fur the war to 1218, and that on Thursday no fewer Vichy is reported as calm but expecting further Nazi demands before long. The Germans are said to be furious than sevinteen air nttacks were reported for the previous with Pétain for his New Year's Day speech. General twenty-four hours. Delattre de Tussigny has been ousted as commander of the A German Move Through Spain? French forces in Tunis-a reward for his independence, it is The capital news from western Europe is that Franco has said. But such a concession to the Germans and the French finally yielded to German pressure and agreed to the passage collaborationists would scarcely accord with the above of German troops through Spain, according to the Spanish stories of the growth of resistance to the Nazis. At best the Ambassador in Vichy. The Caudillo has insisted, however, French scene continues to be confused. that this move be delayed until after the termination of the Rio conference, by reason of the resentment it. is expected to Anti-Collaborationism in Spain arouse among the nations of Latin America Spain, too, has anti-collaborationists. General Orgaz is At the same time there are no outward indications of an reported to be taking a more and more independent line in early move in this direction, and conditions in southwestern Spanish Morocean affairs, and is declared to be moved solely France are quiet (two regiments are reported to have left by the interests of Spain, untrammeled by Axis ties. The France for Russia during the past week). A director of the General was recently described as ambitious to succeed French railways points out, however, that a German move Franco, and as placing his own supporters in high adminis- into Spain need not be preceded by a concentration along the trative posts. The retirement of Suñer, which is reported to frontier, since the capacity of the French railways is nine be imminent, would probably strengthen the position of times that of the Spanish railways lying opposite the occupied Orgaz. portion of the Pyrenean frontier. This of course takes DO General Orguz represents in Spain the conservative, account of the probability that German forces would be Catholic, and military tradition, as contrasted to the new moved into Spain in large measure by truck. Inscist trend of the Falangists, just as Pétain represents much 8 9 SECRET SECRET the same tradition in France, in opposition to men of the stamp of Pucheu. This traditionalist background is proba- west-coast countries of South America practically all propa- bly not unconnected with the resistance of Orgaz and Pétain ganda is disseminated by Japanese residents in conversation It. is not considered a problem in Mexico and Chile, but sub- to collaboration with the Axis. stantial numbers of intelligent Japanese in Ecuador and Peru make verbal propaganda there a more serious matter. In Growing Difficulties of the Finna Uruguay, Bolivia, and Paraguay, Japanese propaganda is The position of the Finns is becoming increasingly painful. virtually non-existent. It is in Argentina that the propaganda of the Japanese The difficulties of the food situation are illustrated by the report that, with a promise of butter from Germany, the appears to have been most active. There they have several means of dissemination at Japanese disposal: broadcasts, free Finns will presently increase their fat ration from roughly entertainments and pamphlets, a tourist bureau, a monthly one and a half to three ounces a week, which will, it is said, in Spanish, and three newspapers in which they have occa- make it just over one-quarter of the German ration. With sional sections in Spanish at their disposal. the early winter and the shortage of labor resulting from the mobilization, only half of the vital autumn plowing was completed. Among the laboring class in the citles, a serious Latin America Reacts to the President's Message tide of discontent is reported. Progressive demobilization is The Latin American reaction to the President's annual returning soldiers to civil life, and the Finns as a whole are message was generally favorable. Newspapers in most of the only too obviously war-weary and anxious to enjoy again the countries printed the speech in full or in large excerpts. The lesser difficulties of peace. public reaction appears to have been very favorable in the As to official Finnish intentions, a straw in the wind is northern countries, becoming enthusiastic in the vicinity of offered by the report from our Minister in Stockholm that an the Canal. In general, it appears that both interest and agreement has been reached by the Anglo-Saxon correspond- newspaper headlines dwindled somewhat towards the south. ents in the Swedish capital that, in the matter of Finnish Ecuador and Peru were distracted by the boundary dispute, peace feeters, they will eschew all rumors and communicate Chile by a presidential election. Argentina is enjoying a state to their papers only official announcements. of siege, Paraguay forbids press comment on international affairs, Bolivia is proverbially lethargie. Brazil and Uruguay reacted very favorably. Japanese Propaganda in Latin America Receiving favorable comment were the President's frunk- Unlike Nazi propaganda, that of the Japanese in Latin ness in adversity, his confidence, his stand for the Church and Arreriva has on the whole been limited and ineffectual, accord- for world liberty, and above all the awesome production ing to an official survey. With the exception of Mexico, figures. From Mexico, our OWD Ambassador hailed the there are practically no Japanese in the Caribbean countries, speech as perhaps the most powerful piece of propaganda yet and organized propaganda. is negligible. In Mexico and the seen in that country. 10 62 RESTRICTED 0-2/2657-220: No. 601 K.I.D., T..D. 11:00 Ande, January 15, 1942 SITUATION REPORT 1. Pacific Theater. Philippines: Two determined enemy attacks in force, accom- panied by artillery and aircraft, were repulsed with heavy Japanese Losses, Our losses were light. Corregidor was raided by nine heavy bombers, two of which were shot down. Damage resulting from this raid was slight and casualties few. Hawaii: No further reports of hostile activity. Malaya: The ground situation is unchanged. The press re- ports that Japanese planes have intensified their attacks over lower Malaya, N.S.I.: There have been no further reports on the Japanese landings in the Celebes and at Tarakan. According to the press, the Japanese have made further bombing attacks near Amboina. lest Coast: No further reports of activity have been received. II. Instern Theater. righting continues on the northern and central fronts. There Le no change in the general situation. The Mussiuns claim the capture of edyn (40 miles northwest of Maluga). III. .estorn Ineater. The press reports that the made raids last night on Mamburg and on other objectives in Germany und in the occupied countries. No results were announced. IV. iddle Sastern Theater. Ground: Situation unchanged. Air: AXIS has increased aerial presaure on Inita. RESTRICTED Regraded Unclassified 63 TREASURY DEPARTMENT FOR RELEASE, MORNING NEWSPAPERS, Washington Friday, January 16, 1942. The Secretary of the Treasury, by this public notice, invites tenders for $150,000,000, or thereabouts, of 91-day Treasury bills, to be issued on a discount basis under competitive bidding. The bills of this series will be dated January 21, 1942, and will mature April 22, 1942, when the face amount will be payable without interest. They will be issued in bearer form only, and in denomi- nations of $1,000, $5,000, $10,000, $100,000, $500,000, and $1,000,000 (maturity value). Tenders will be received at Federal Reserve Banks and Branches uo to the closing hour, two o'clock p. m., Eastern Stan- dard time, Monday, January 19, 1942. Tenders will not be received at the Treasury Department, Washington. Each tender must be for an even multiple of $1,000, and the price offered must be expressed on the basis of 100, with not more than three decimals, e. B., 99.925. Fractions may not be used. It 16 urged that tenders be made on the printed forms and forwarded in the special envelopes which will be supplied by Federal Reserve Banks or Branches on application therefor. Tenders will be received without deposit from incorporated banks and trust companies and from responsible and recognized donlers In investment securities. Tenders from others must be accompanied by payment of 10 percent of the face amount of Treasury tills applied for, unless the tenders are accompanied by an express guaranty of payment by an incorporated bank or trust company. Immediately after the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, following which public announcement will be made by the Secretary of the Treasury of the amount and price range of accepted bids. Those submitting tendere will be advised of the acceptance or rejection thereof. The Secretary of the Treasury expressly reserves the right to accept er reject any or all tenders, in whole or in part, and his action in any such respect shall be final. Payment of accepted tenders at. the prices offered must be made or completed at the Federal Reserve Bank in cash or other immediately available funds on January 21, 1942. 29-03 Regraded Unclassified 64 -2- The income derived from Treasury bills, whether interest or gain from the sale or other disposition of the bills, shall not have any exemption, as such, and loss from the sale or other dis- position of Treasury bills shall not have any special treatment, as such, under Federal tax Acts now or hereafter enacted. The bills shall be subject to estate, inheritance, gift, or other excise taxes, whether Federal or State, but shall be exempt from all taxation now or hereafter imposed on the principal or interest thereof by any State, or any of the possessions of the United States, or by any local taxing authority. For purposes of taxation the amount of discount at which Treasury bills are originally sold by the United States shall be considered to be interest. Under Sections 42 and 117 (a) (1) of the Internal Revenue Code, as amende by Section 115 of the Revenue Act of 1941, the amount of discount at which bills issued hereunder are sold shall not be considered to accrue until such bills shall be sold, redeemed or otherwise dis- posed of, and such bills are excluded from consideration as capital assets. Accordingly, the owner of Treasury bills (other than life insurance companies) issued hereunder need include in his income tax return only the difference between the price paid for such bills, whether on original issue or on subsequent purchase, and the amount actually received either upon sale or redemption at maturity during the taxable year for which the return is made, as ordinary gain or loss. Treasury Department Circular No, 418, as amended, and this notice, prescribe the terms of the Treasury bills and govern the conditions of their issue. Copies of the circular may be obtained from any Federal Reserve Bank or Branch. -000- 65 January 16, 1942 MEMORANDUM For the Secretary's Diary: Secretary Morgenthau telephoned from Florida this morning to suggest that we prepare three or four radio programs designed specially for foreign- horn groups in this country. He would like a group of Csech refugees to do one of those programs, Polish refugees another, Yugoslavs another, and make two-thirde of each of these programs in the language of the respective countries. The programs would be addressed by the refugees to their people Ln this country, telling them what is happening to their mothers or brothers or friends in their old homeland. The message would be that we must set these people free, and we can do it by buying Defense Bonds. The Secretary suggested that Miss Hallie Flanagan, Dean of Women, Smith College, might be uneful in helping us prepare these programs, I said that I likedthe idea if we could have transcriptions rather than network programs. The recorded programs could be played in cities where there are large foreign-born groups, such as Buffalo or Pittsburgh, whereas they would be wasted if they were produced over the networks. The Secretary agreed completely, and instructed me to proceed with the idea. F. K. Jr. 7.k. sm. Regraded Unclassified 66 January 16, 1942 Joar Archier In Secretary Morgenthauls alisence from Washington I AM writing to thank you for your letters of January 14th Addressed to him. I know that the Secretary will be much interested in the new procedure dealing with the publication of information on procurement contracts. I have already told him something of it, and I hope to discuss it with 111m in more detail after his return. Regarding the clearing of radio time, I shall tell our information officers about the new arrangement, and I know that they will be happy to cooperate with Mr. Lewis. I Assume that Mr. Lewis will communicate with our radio people 0.3 soon 18 possible to work out the practical spolication of the new policy as it may affect the Treasury. Sincerely, Pertinend Kuho, Jr. Assistant to the Secretary. Mr. Archibald Machetah, Director, Office of Facts and Figures, Library of Congress, Washington, D. C. Regraded Unclassified THE LIBRARIAN OF CONGRESS 67 WASHINGTON January 14, 1942 Honory vle Henry Norgentheu Secretary of the Treasury Washington. D. C. My dear Mr. Secretary: I hove toony received from "r. Stenhen Early B communication rep Inf in part as follows: "The 11ke her come then a contral clearing point within the Government should be crested to give (uidence to Government depart- mente rnd negnoies and to the radio industry AS 8 Vhole concerning insuiries originating within the Government and received by the Government from the broidcasting commanies and stations and to hondle certain Government DEOGIOUS on the nutworks within the United Strtes. "I By tell you therefore, by direction of the President, that the Radio Division of the Office of Facts And Figures, hended by Villing Levis, is designated to cerry out this wore under your supervision. "It 18 requested that you advise All cenartments and agencies of the Government, BS well 8.8 the national networks and the Committee OR Defense Information of the National Association of Broadcesters, that this ess!ment has been givin in the Radio Division, OFF." In nce with this direction I have pleasure in informing you that :he services of Vr. Lewis and the incilities of OFF will be &v ilable for the nurvoses indicated. Mr. Levis vill be hanny to clear requests for radio ti.e, and to advise with respect to radio orograms should you vish to cril upon him. It is suggested that povernment information officers be informed of this arrengement end poltured that the services of Mr. Lowis end staff are at their in connection with any cuestion relating to government Pacio progrems. Feithfully yours, Amountin Archib 24 MacLeish, Director, Office 08 Phote nno Figures Regraded Unclassified 68 THE LIBRARIAN OF CONGRESS WASHINGTON January 14, 1942 CONFIDENTIAL My dear Mr. Secretary: A recent communication from the Wer Department sub- mitted to the Committee on War Information raisee the question of the desirability of a uniform policy covering government publica- tion of information bearing upon the letting of procurement con- tracts and similar matters. The Director of Censorship has indicated his interest in the establishment of such a general policy in order that government publications in this field may not conflict with the self-censorship which press and radio have BO willingly accepted and so loyally practiced. I am therefore sending you herewith a. statement of the action taken by the Committee on War Information upon the proposal submitted by the War Department. From time to time the Committee on War Information vill doubtless reach similar policy conclusions cover- ing other problems of this nature. Departments and agencies will, of course, determine for themselves the application of these general policies to specific proposed publications. If, however, an informa- tion officer is in doubt as to a particular proposed publication, the Committee on War Information directs me to indicate that application may be made to the Office of Facts end Figures which will undertake, et the request of any information office, to do the following things: (a) take up the question of the propriety of a proposed pub- lication with any other agency or agencies having en interest in the subject matter; (b) attempt to devise forms or kinds of publication which will satisfy as nearly as possible the needs of the country for informa- tion while avoiding publication of information of value to the enemy: (c) submit to the Committee on Wer Information questions of un- usual difficulty in which solutions by the methods provided above appear to be impossible. It is unnecessary to add, of course, that the proposed procedure does not contemplate "clearance" of government publications Regraded Unclassified 69 - 2 - through the Office of Facts and Figures or through the Committee on War Information. The action of the Committee on War Informa- tion is taken solely to provide a common policy, the need of which is urgently felt, and to supply simple and informal procedures for working out possible questions 8.8 to the propriety of publication. It is felt by the Committee on War Information that these procedures will be more effective and more useful if they are not made public but are treated as confidential. The enclosure is, of course, not confidential but will be released to the press. Faithfully yours, market Archibald MacLeish Chairman, Committee on War Information Enclosure The Honorable Henry Morgenthau Secretary of the Treasury Washington, D. C. 70 COMMITTEE ON WAR INFORMATION Policy with regard to government publication of information relating to the letting of pro- curement contracts and similar matters In order that the policy controlling government publication of information relating to the letting of procurement contracts and simi- lar metters may be consistent with the policy established by the Di- rector of Censorship for the advice of press and radio, the Committee on War Information has adopted the following statement which has been approved by the departments and agencies represented on the Committee. 1, The policy considerations which should control in all cases of government publication of information during the war period are: (a) Information helpful to the anumy should not be made public. (b) Information helpful to our own people should be published when publication is possible. (c) In case of conflict between those two considerations every attempt should be made to resolve the conflict not by arbi- trary action in either diruction but by employing forms of publication, or kinds of publication, which will provide information holpful to our own people without providing information holpful to our enemica, 2. The publication of specific information relating to procurement and production can be holpful to the enemy if the publication informa of plans for the manufacture of weapons and other supplies of war, the Io- cation of plants, the typos and quantities of materials, the datos of completion and similar data, Publication of general information of this kind can, however, be helpful to our own people in so far 23 it supplies the basis for indc- pondont criticism of the war offort, atimulates production, and, in general, informs the country about the progress of the productive offort the country has boon called upon to make, Furthermore, publication of cortain information of this kind is necessary to specific acctions of the population, ns, for example, sub-contractors, suppliors of labor, common cerriers, public utilities, and others called upon to make specific properations for, or to provide specific services in connection with, procurement and production projects. Regraded Unclassified 71 - 2 - 3. Information with regard to procurement and production should therefore be provided by government departments and agencios and bureaus but subject to the following limitations: (a) There should be no gonoral publication of specific informa- tion as to contract awards, site locations of war industries and military installations, ostimated supplies of strategic and critical matorials available, specific production schedules and dotailod progross reports. The open display of contract awards in public offices should be discontinuod, (b) Where the construction of plants and installations, and the placing of large contracts requiring additional labor forces, are of such nature as to bocome known in the localitios where the work 1a done, information of a non- detailed charactor may be published by local nowspapers and should bo released by government dopartments to interested Membors of Congross for local use. Dotails as to kind, quantitios or delivery date of armaments or munitions or installations should not bo given. (The Diroctor of Consor- ship has advised press and wire services that nation-wide roundups of such locally released procurement data my give material aid to the onomy, but that local publication of the kind horo described is pormissible.) (c) Such information regarding the letting of contracts, the construction of factories and cantonments and the like, as may bo necessary to the proper functioning of suppliors of labor, matorials, facilities, and other servicos should be furnished, for thoir official uso, to the appropriate re- gional officos of the United Statos Employment Services, Army procurenent, OPM, and other dosignated agencios, Such offices should, however, be cautioned against releasos of procurement information to othors than those duly identified as having a bona fido intorost and when such information is so roleased to responsible persons thoy should be caution- od against its publication. (d) To provide ossential public information as to tho progress of the production effort na a wholo, the Office of Facts and Figures, working with tho advico and assistance of the Buroau of Statistics and Resonrch of OPM, the Division of Statistical Standards of the Buroau of tho Budget, and other designated agoncios, which should continue to receive on a 72 - 3 - confidontial basis all information and data regarding pro- curemont and production, will devise forms of publication which, without releasing information of importance to the enemy, would onable the country as a whole to know from time to time whether or not it had net the requirements of tho production program; togother with other forms of pub- lication which would enable particular localities, and factories, etc. to ascertain whether thoy had net or failod to meet or had surpassed thoir quotas of production. Bo- foro release those forms of "Production Communiques" should be cleared through a subcommittee of the Committoe on War Information, composed of roprosentativos of the War Depart- ment, the Navy Department, and the Office of Facts and Figures. All departments, agencies, officials and employees of the administrativo branch of the government are requested to cooporate in carrying out the above policies. It is hoped that mombors of the logislative and judicial branches will also adopt similar principlos in order to prevent valuable information from reaching the onemy. 73 For your information January 16, 1942 To Archibald MacLeish From Alan Barth EDITORIAL OPINION ON THE WAR: PREPARING TO FIGHT Contradiction The press reveals an interesting contrast these days between its news pages and its editorial pages. Editors are Lusily warning readers to beware of headline writers. The commentators, suddenly, have become propaganda- conscious. The Scripps-Howard papers head an editorial "Don't Underrate The Enemy," and praise the counsel recently offered by Donald Nelson, Senator Connally and Secretary Knox to discount stories of German losses. Anne O'Hare McCormick, L31 The New York Times, remarks: "Regardless of the truth or Telsehood of reports of trouble in Germany, it cannot be reseated too often that they should be received with the utmost caution." Many other newspapers echo this theme, urg- ine the public to be on guard against overconfidence or the expectation of an easy victory. Regraded Unclassified - 2 - 74 But the cable editors apparently do not read these inside pages. They continue to treat each successful American bomb- ing raid as an important victory. They are now giving increased prominence to the news of Russian advances on the eastern front, and they go right on brightening the news columns with the dubi- ous tales of diminished German morale. The editorial writers themselves, moreover, exhibit a tend- ency to recite the resources of the United States as reassuring evidence that the Axis is inexorably doomed. They marshal President Roosevelt's figures of planes and tanks and ships to be produced in 1943 to prove conclusively on paper that the United Nations are invincible. Confidence, despite the setbacks in the Far East, is at a high level; it may be on the borderline of complacency. Getting Down To Business The appointment of Donald Nelson to a post commonly referred to in headlines as "War Production Czar" answered a demand ex- pressed by newspapers in every section of the country. Concen- tration of authority has been generally regarded 0.5 a prerequisite to meeting the production quotas set by the President in his messuge on the state of the Union. Regraded Unclassified - 3 - 75 While a variety of candidates, including Wendell Willkie, had been advocated by different newspapers, the press united in endorsement of the President's action. Perhaps the most lyrical note of appreciation was sounded by New York's PM. "With a stroke of his pen," observed Ralph Ingersoll, "President Roosevelt wrote off from the Nazi balance sheet whole industries in Europe. No bombing mission from England was ever as destructive to Hitler's ambition to out-produce us." The Nelson appointment, together with the creation of a War Labor Board, restrictions on the sale of tires and automobiles and Mr. Roosevelt's firm attitude on farm prices, has greatly bolstered the editorial hope that the Administration is prepar- ing to get down to the business of waging war in earnest. Establishment of the War Labor Board also answered 8. wide- spread editorial demand; although there was some carping at the failure to eliminate the closed shop issue from its deliberations, commentators in general expressed satisfaction with its functions and its personnel. Increased and stiffened rationing is advocated by a considerable number of newspapers; some of them, indeed, have taken to extolling the virtues of the simple life to be induced by cuts in civilian consumption. According to The Chicago Times, "It's going to be good for us." Most of the press wants the Regraded Unclassified - 4 - 76 Government to take a tough attitude on rationing and prices. Judging from & recent Gallup poll, the public feels the same way; 78 percent answered "yes" to the question, "In time of war, should the Government have the right to tell factory owners and businessmen what products they can make and what prices they can charge?" This insistence on mobilizing our domestic resources appears to reflect B. deep-seated and genuine editorial convic- tion that assembly lines are now America's front lines in the war. The conviction embraces an awareness of the war's planetary scope. It finds expression also in an angry impatience with the Government's failure to build up adequate stock piles of strate- gic materials and with industry's failure to convert its facilities more rapidly into war production. The concept of the United States as "the arsenal of democracy" seems to be in the process of translation from theory to reality. The press is now preparing for a long war, a hard war and a world war, Revival A guidepost as to the form in which isolationism may be reborn, in marked contrast to the global thinking of most commen- tators, is to be found in an editorial by the New York Daily News Syndicate. Declaring that loss of the Philippines appears to be Regraded Unclassified - 5 - 77 "only 8. question of time" and suggesting that Singapore is likely to fall to the Japanese as well, the Dutch East Indies following as a matter of course, The News urges that American strength be concentrated on Hawaii. "If we don't hold Hawaii," this gloomy prophecy continues, "one guess is as good as another what will happen to us. Our guess is that Jap bomber raids or battleship raids or both will take to harrying our West Coast shortly after Hawaii goes down, and that we will then be on a bad spot indeed. ... The defense of Hawaii -- implacable, last-ditch defense kept supplied remorselessly from the mainland -- is, we believe, war job No. 1 for the American people." This sort of concentration on our narrow parochial defenses appears to be emerging as the new isolationist "line". Regraded Unclassified 78 TREASURY DEPARTMENT INTER OFFICE COMMUNICATION DATE January 16, 1942 TO Ferdinand Kuhn, Jr. FROM Joseph Nelia EDITORIAL COMMENT ON TAX PROBLEMS: BATTLE LINES FORM initorial discussion of wartime taxes centers on the need for 5 reasure that will quickly raise an unprecedented amount of revenue and at the same time act AS a brake on inflation. Nost editorial writers insist that these two goals must subordinate "ability to PAY" as the basic principle of the new program, and accordingly strongly favor a general sales tex. They argue in All seriousness that A sales tax is the only remaining major source of revenue, since Income taxes and excise levies have just about reached the roint of diminishing returns. Even liberal newspapers like the New York Post and Chicago Sta are willing to accept 9 snles tax if necessary. But these demspapers make 8 point ignored by the majority of the press -- 1191 along with deflationary, "spread-the-burden" taxes, drastic Stage must be taken to recapture war profits. Leading labor publications, with the excention of the Reilroad irotherloods' organ, have not as yet commented editorially on the Regraded Unclassified - 2 - 79 impending tax program, although they are traditional and vigorous opponents of withholding taxes and sales taxes. They give promi- nent display in both their news and editorial columns to disclosures of large war profits. Deflation Taxes The proponents of & general sales tax claim that such 8. levy would largely solve the problem of financing the war, meeting perhaps two-thirds of the proposed 7 billion dollar increase in the tax bill. Many also maintain that such a measure would be relatively "painless" and the most "fair" way of distributing the tax burden. The argument that a sales levy is a tax on the poor man's table is met with the rebuttal that the necessities of life -- food, clothing, and medicine should be exempted. A large number of the same newspapers that suggest a sales tax as & deflationary measure and a quick, steady source of income are opposed, however, to either B. withholding tax or enforced savings. The Philadelphia Inquirer sums up the prevailing sentiment in arguing for 8 sales levy and against a withholding tax: "The comprehensive sales tax possesses many advantages both for the government and the taxpayers. It brings in the money and it distributes the tax load in the fairest manner possible. A government check-off or with- holding tax at the source makes no allowance for the individual's Regraded Unclassified - 3 - 80 special circumstances. It takes steady toll in the same amount each week or month from his wages.... But if 8 considerable part of his contribution is to be made in sales taxes, he can adjust his spending." A recent Gallup poll indicates that the man on the street is still far from advocating a sales tax as wholeheartedly as his editors and publishers. According to this survey, 47 percent of the people favor a sales tax, 46 percent disapprove, and 7 percent are undecided. Last January, the score was 42 percent for, 49 percent against, and 9 percent with no opinion. Progressive Taxes Most of the conservative press fears that to increase private or corporate income taxes would kill the goose that lays the golden eggs and would lead to economic and social disruption. It is main- tained that the middle class already is supporting a disproportionate share of the tax load; to add to corporate taxes might so "stifle" the profit motive and private enterprise that production would suffer. "May not the government in its eagerness to tax corporate business -- which is tantamount to reducing the wages of management and capital -- risk the danger of destroying the zest for industrial expansion asks the Boston Herald, while the Chicago News argues: "The social convulsions Europe underwent after the last war were striking evidence of the unwisdom of piling an unbearable burden in taxes and inflation on the middle classes...." - 4 - 81 Opposed to the sentiment expressed by these two newspapers and the conservative press as a whole, the liberal press insists that personal and corporate income taxes must be drastically increased. The Chicago Sun proposes that all personal income above a minimum amount necessary for the essentials of life should be taken by taxation, and the New York Post states: "Excess profits will have to be lifted; we can hardly continue a rate that runs about half that of England's Those who oppose a fair increase in excess profits taxes must ask themselves whether they are defending the profit system or defending temporary profits." 82 TREASURY DEPARTMENT INTER-OFFICE COMMUNICATION DATE JAN 1 6 1942 TO Secretary Morgenthau FROM E. H. Foley, Jr. Re: Final Report on status of the Treasury Department's Legislative Program at the End of first session of 77th Congress. I attach herewith in tabular form 8. final report on the status of Treasury-sponsored legislation at the end of the first session of the 77th Congress. This report is as of the date of adjournment on January 2, 1942. Though some extremely important Treasury legislation was enacted during the past session, the total number of our bills enacted was not quite as large as the total enacted during some of the sessions of Congress since the establishment of the Legislative Section in the summer of 1934, and the centralization in it (with some exceptions) of Treasury legislative activities. This is attributable to the fact that both Houses of Congress and the committees thereof have concen- trated on national defense and war legislation during the past session, and have for the most part been disinclined to consider desirable but non-essential legislation not directly related to the defense or war program. With the recent active entrance of the United States into the war this Congressional attitude Regraded Unclassified 83 -2- will, I believe, be even more pronounced during the new session. The following summary shows the record of this office: Number of Treasury-sponsored Number of Treasury bills actively pending at sponsored bills the end of Congress which Session Year enacted failed of enactment. 1941 20 22 1940 23 8 1939 27 4 1938 13 11 1937 22 10 1936 21 8 1935 19 12 Notable among the important Treasury legislation enacted dur- ing the last session was the Public Debt Act of 1941, increasing the debt limit of the United States to $65,000,000,000, providing for the federal taxation of future issues of obligations to the United States and its instrumentalities, and providing for the issue and sale of United States Defense Savings bonds and stamps. The Congress at our recommendation again extended (till 1943) the time within which the powers relating to the stabilization fund and alteration of the weight of the dollar may be exercised. Regraded Unclassified 84 -3- An important, but little publicized, Treasury bill enacted into law was the one authorizing the Treasurer of the United States to make settlement with payees of lost or stolen checks, which have been paid on forged endorsements, in advance of reclamation. This legislation relieved the inequitable condition arising when the payee or B. special endorsee of a check drawn on the Treasurer of the United States, which has been improperly negotiated through no fault of the payee or special endorsee and paid upon B. forgery of his endorsement, is deprived of the amount due him until such indeterminate iuture time as recovery has been effected from the forger or of the bank or of the party cashing the check by setting up a small revolving fund of $50,000 out of which payment may be made in advance of reclamation. Due to the nation's increasing demand for minor coins, Treasury legislation was enacted to increase from $600,000 to $1,000,000 the so-called minor coinage metal fund, & revolving fund which is available for the purchase of metal (nickel, copper, tin, and zinc), as needed, for the manufacture of minor ooins of the United States. One of the most important bills enacted during this session is the Lease-Lend Bill on March 11, 1941. Although in a literal sense this is not a Treasury sponsored bill, this office prepared the original draft of the bill, committee reports thereon for Regraded Unclassified 86 -4- the Senate Committee on Foreign Relations and the House Committee on Foreign Affairs, numerous short speeches and several lengthy speeches which were made in support thereof, and memoranda on many questions of law involved. Another major bill enacted was the War Powers Bill of December 18, 1941, which conferred upon the President authority to put the Government of the United States on an immediate war footing. This office participated actively in the drafting and handling of this bill. Of particular importance to the Treasury is that part of it which deals with the Trading with the Enemy Act, under which the existing system of foreign property control (commonly known as freezing control) is based. There was added to the existing freezing control, in substance, the powers contained in the Trading with the Enemy Act with respect to alien property, extending those powers, and adding a flexibility of control, which experience under the original act and the recent experience under freezing control have demonstrated to be advisable. This office presented and explained the bill to the House Judiciary Committee, did a major part of the work on both the House and Senate Committee regorts, and assisted the Chairmen and members of the Judiciary Committees in the debates on the floor. Regraded Unclassified -5- 87 Although the legislation relating to foreign accounts in Federal Reserve Banks and insured banks was prepared by the Board of Governors of the Federal Reserve System, the Legislative Section did 8. great deal of work on the subject matter. Our bill to amend the Strategic and Critical Materials Aot of June 7, 1939, to provide that the proceeds of any sales or other dispositions of strategic or critical materials, acquired and held by the Procurement Division of the Treasury Department under the authority of that act, shall be deposited to the credit of the appropriation made by Congress for the purpose of acquir- ing strategic and critical materials under that act and will thus be available to the Procurement Division for further purchases of such materials under the terms of the act instead of going into miscellaneous receipts of the Treasury as would be the case under existing law, was enacted by Congress during this session. Although the Coast Guard was transferred to the Navy Depart- ment on November 1, 1941, a number of important Coast Guard bills prepared and sponsored by the Treasury Department were enacted. These included the bill providing for the establishment, adminis- tration, and maintenance of a Coast Guard Auxiliary and a Coast Guard Reserve, which bill was enacted after hearings before the House Committee on Merchant Marine and Fisheries. Another Coast Deeradod -6- 88 Guard bill enacted auring this session made B. large number of miscellaneous amendments in existing Coast Guard laws in the interest of clarification and better administration. This legis- lation includes provisions: for exchanging rights of way at Coast Guard Stations; authorizing the Secretary of the Treasury to negotiate contracts on behalf of the Coast Guard with respect to vessels and aircraft; clarifying the status of the Coast Guard as a military service constituting a part of the land and naval forces; amending existing laws with respect to financing the expenses of the Coast Guard when operating as a part of the Navy in time of war or when the President so directs; etc. A bill was also enacted authorizing the Secretary of the Treasury to purchase or accept as gifts motorboats, yachts, and similar vessels for Coast Guard use, (It was provided therein, however, that should the Coast Guard operate as a part of the Navy, the authority conferred by this act upon the Secretary of the Treasury shall vest in, and be exercised by, the Secretary of the Navy). Moreover, three bills were enacted to vest control of land in the Secretary of the Treasury, and authorizing the Secretary to ex- change certain lands, for Coast Guard purposes. Of the twenty-two Treasury bills still pending in Congress, seven have passed one house. Since the recent adjournment marked -7- 89 the end of a session and not the end of a Congress, these will retain the same status in the next session which they had achieved in this. We also, of course, did 8. great deal of work on many other pieces of legislation, notably on various defense measures of 1941; the so-called Attorneys Bill, which amends existing law to further restrict the Government practice of former Government attorneys; the Administrative Procedure Bills; the Defense High- way Bills; non-essential expenditure appropriation bills, etc. None of these bills, however, strictly speaking, could be de- scribed as a Treasury bill. Aside from the foregoing, the Legislative Section handled 8. total of 481 Treasury reports on legislation during the past session. Of this number, 297 were reports to committees of Congress, 111 were reports to the Bureau of the Budget on pending or proposed legislation, and 73 were reports to the Bureau of the Budget on enrolled bills to assist the President in determining whether or not to approve these bills. The Legislative Section transacted legislative business with the legislative counsel of both the House and Senate, and worked with, and appeared before, virtually all the major and many minor committees of both Houses of Congress, during the first session of the 77th Congress. In addition, it drafted or as- -8- 90 sisted in drafting, much legislation not covered by this report, such as bills which are still in process, bills which have been submitted to, but not yet cleared by, the Bureau of the Budget, bills which were completed but which, for one reason or another, the appropriate administrative officers decided not to submit to Congress at this time, bills prepared as a courtesy accommodation to members of Congress, etc. The Legislative Section also opposed legislation objectionable to the Treasury Department and drafted, or participated in drafting, 8. considerable number of Executive Orders and Proclamations. In addition, this Section did a large amount of research work on legislative and other problems of interest to the Department, and generally endeavored to keep the various bureaus and branches of the Department advised about all phases of legislative matters in which they were interested. The National Defense Program during the first session of this Congress and the accelerated legislative activity in con- nection therewith resulted in 8. considerable increase in the Legislative Section's work in order to keep the many interested Treasury offices advised about the progress of, and other mat- ters of interest to them in connection with, defense legislation. 9.N.7L FINAL PROGRESS REPORT ON TREASURY LEGISLATION DURING THE FIRST SESSION OF THE 77th CONGRESS A. TREASURY SPONSORED BILLS ENACTED DURING THE FIRST SESSION OF THE 77th CONGRESS (1941) PUBLIC OR BILLS BRIEF EXPLANATION APPROVED PRIVATE NUMBER 1. H.R. 2959 Increases the debt limit of the United Fob. 19,1941 Public No. 7 Public Debt Legislation States, provides for Federal taxation of future issues of the United States and its instrumentalities, and authorizes Defense Savings Bonds and Stamps. 2. S. 187 (H.R. 562) Provides for the establishment, adminis- Feb. 19,1941 Public No. 8 Coast Guard Auxiliary and tration, and maintenance of a Coast Guard Reserve Auxiliary and a Coast Guard Reserve. 3. H.R. 1776 Empowers the President, notwithstanding March 11,1941 Public No. 11 Lend-Lease Act any other law, when the President deems it in the interest of national defense, to authorise the heads of any Government de- partment or agency (1) to manufacture or procure any defense articles, which are de- fined therein, for any country whose defense he deems vital to ours; (2) to sell, transfer title to, exchange, lease, lend, or otherwise dispose of such defense articles to such govern- ments (with limitations); (3) to outfit, in- spect, repair, etc., the defense article of any nation whom we aid under the Act: (4) to communicate any defense information to or for the benefit of those nations; and (5) to re- lease for export any defense article disposed of under the Act to any such government. Authorises the Secretaries of War and Navy to acquire arms, ammunition, and implements of war produced in such countries whenever the President deems such acquisition necessary to the national defense. Authorizes necessary appropriations. Regraded Unclassified these 1111. un In of the ITS Concress (1941) - (continued PUTICION 0" SULLS 36133 EXPIRATION APPLINED THITAS TUMEER 4. 5. 390 (5.R. 4216)4 Regilates the handling of foreign accounts spril 7.1941 Public io. 31 Foreign accounts La in Federal Reserve Banks and insured banks. Federal Reserve Banks and insured banks 5. H.R. 4239 (5. 9003 Carries to the surplus fund of the Treasury May 9. 1941 Public No. 62 Compensating taxes certain trust funds derived from compensat- trust fund ing taxes collected under the Act of May 12, 1933, 48 Stat. 40, upon certain articles coming into the United States 6. S. 994 Provides for the reimbursement of appropria- May 28,1941 Public No. 76 Strategic and criti- tions in cases where sales or transfers of cal materials strategic or critical materials would result from action by the President, pursuant to the Act of June 7. 1939, 53 Stat. 812. thus making revolving funds out of such appropriations. 7. S. J. Res. 74 Authorizes the postponement of payment of June 12,1941 Public No. 110 (H.J. Res. 184) amounts payable to the United States by the Finnish Debt Republic of Finland on its indebtedness. 8. H.H. 4132 Authorizes the púrchase of metals for minor June 21,1941 Public No. 117 Metals for minor coins coins of the United States not to exceed $1,000,000 (instead of $600,000). 9. H.R. 4646 (S. 1540) Continues powers relating to the Stabiliza- June 30,1941 Public No. 142 Stabilization Fund tion Fund, devaluation of the dollar, and purchase of silver. 10. H.R. 531 Authorizes the Secretary of the Treasury to July 9. 1941 Public No. 159 Coast Guard Sites at exchange the existing Coast Guard site located Minmi Beach at Ft. Lauderdale, Florida, for another site determined suitable for Coast Guard purposes. Although this bill originated in the Federal Reserve, it is included because the Ingislative Section of the Treasury Department are a great deal of work on the subject matter. Regraded Unclassified 3 - A. Treasury sponsored bills enacted during the First Session of the 77th Congress (1941) - (continued) PUBLIC OR BILLS BRIEF EXPLANATION APPROVED PRIVATE NUMBER 11. H.R. 4903 (s. 1601) Authorizes the Secretary of the July 9,1941 Public No. 162 Coast Guard Site at Treasury to exchange certain land owned Au Sable, Michigan. by the United States for a site for a road right-of-way needed for access to the Coast Guard Lighthouse Station Reservation, Au Sable, Michigan. 12. H.R. 4658 (s. 1477) Malces a large mumber of miscellaneous July 11,1941 Public No. 166 Omnibus Coast Guard Act amendments of existing Coast Guard laws in the interest of clarification and better administration, The bill includes provisions: for exchanging rights-of-way at Coast Guard stations; extending authority to utilise collections of the value of repairs and replacements of aids to navigation damaged by private persons to all Coast Guard property; authorising the Secretary of the Treasury to negotiate contracts on behalf of the Coast Guard with respect to vessels and aircraft; vest- ing in the Secretary of the Treasury authority to waive the legal requirement of performance and payment bonds in certain classes of Coast Guard contracts; clarifying the status of the Coast Guard as a military service constituting a part of the land and naval forces; amending existing law with respect to financing the expenses of the Coast Guard when operating as a part of the Navy in time of war or when the President otherwise 80 directs; extending the law-enforcement jurisdiction of the Coast Guard; clarifying and extending existing law with respect to enlistments and retentions in the service; effecting certain clarifying amendments to the Coast Guard Auxiliary and Reserve Act of 1941: etc. Regraded Unclassified A. Treasury sponsored bills enacted during the First Session of the 77th Congress (1941) - (continued) PUBLIC OR BILLS BRIEF EXPLANATION APPROVED PRIVATE NUMBER 13. H.R. 4867 Authorizes the sonstruction of 13 Coast July 15,1941 Public No. 178 Coast Guard Cutters Guard cutters, including 3 specially designed for ice breaking in arttic regions. 14. H.R. 5903* Authorizes the U.S. Housing Authority Oct, 30,1941 Public No. 288 U.S. Housing Act to issue obligations in the amount of amendment $800,000,000. exclusive of obligations issued for refunding purposes, such obligations to be prescribed by the Authority with the approval of the Secretary of the Treasury. 15. H.R. 5079 Authorizes the Treasurer of the United Nov. 21,1941 Public No. 310 Lost or stolen checks States to make settlement with payees paid on forged en- of lost or stolen checks, which have dorsements been paid on forged endorsements, in advance of reclamation. 16. S. 1826 (H.R. 5537): Permite seeing-eye dogs, when accompan- Dec. 10.1941 Public No. 330 (H.R. 5459) ied by their blind masters, to enter Seeing-Eye Dogs any Government building. This bill was drafted and handled by us as a result of a request from Mrs. Roosevelt to the Secretary. The final draft of this bill, now Public Law No. 288, was prepared in the Legislative Section of the Treasury Department. Regraded Unclassi A. Treasury shonsored bills sucted dur DE the Bitst Sanzion of the 77th Congress (1941) - (contimied) PUBLIC OR BILLS BRIEF EXPLANATION APPROVED PRIVATE NUMBER 17. B.J.Res. 221 (s. 1794) Declares abandoned the title of the Dec. 16,1941 Public No. 342 Coast Guard at Marquette. City of Marquette, Michigan. to certain Michigan. land, and veste control in the Secretary of the Treasury for Coast Guard purposes. 18. H.R. 5509 (s. 1827) Authorizes the Secretary of the Treasury Dec. 16,1941 Public No. 349 Motorboate and Yachts for to purchase or accept as gifte motor- Coast Quard boats, yachts, and similar vessels for Coast Guard use. 13. H.R. 6233 (H.R. 6206) Confers upon the President authority to Dec. 18,1941 Public No. 354 6. 2129) (s. 2118) put the Government of the United States (Title III) First War Powers Bill, on an immediate war footing. Title III Freering and Alien Prop- of the Act, among other things. amends erty Control and extends section 5(b) of the Trading with the Enemy Act, on which the present system of foreign property control (com- monly known as freezing control) is based, to meet the present war-time conditions. 20+ H.R. 199(s.1405) Authorizes the heads of various depart- Dec. 18,1941 Public No. 354 Negotiated Contracts ments and agencies of the United States (Title II) Bill to negotiate national defense contracts without advertising or competitive bid- ding, authorizes the President to give priority to deliveries under such con- tracts, and requires a report on contracts to be made to Congress. This legislation after being stalled for & long time in the House Judiciary Committee which had not handled and did not have the background to give expedite consideration to this type of national defense legislation WELE finally enacted in even broader form in Title II of the First War Powers Act, 1941. Regraded Unclassified PANDING III L TII 25D OF THE FIRST SESSION 07 THE 7754 CONGRESS (Jamiery 2, 1942) STATUS AT END BILIS BRIEF EXPLANATION OF FIRST SESSION REMARKS 1, S. 1045 Provides that the National Life Passed Senate Vay 1. We expect to get en- (S. 959) Insurance Fund and the U. S. 1941: referred to actment of this Government Life Government Life Insurance Fund, Ways and Means Com- bill at the next Insurance Fund, together with all money accruing mittee, and reported session. The busy to these funds shall be deposited on Oct. 14, 1941; calendar of the Ln the Treasury of the United States. Union Calendar No. House crowded it and shall be available for disbursement 433. out this mssion. to meet expenditures and make invest- mente authorised to be made from such funds, 2. 5. 1602 Places the Annual Report of the Comp- Passed Senate June 30. This bill will Innual Report of troller of the Currency on a calendar- 1941; pending before probably be enacted the Comptroller year basis rather than on an October- House Committee on during the next of the Currency to-October basis. Banking and Currency. session. 3- 9.3. 1409 Designates building guards employed Passed Souse, July 7. The Treasury Depart- Treasury Guards, in buildings under the jurisdiction 1941: pending before ment recommended exten- Increase in of the Federal Works Agency as U. S. Senate Committee on sion of the provisions Salary Building Police. and fixes the annual Public Buildings and of this bill to members salaries of such police. Grounds. of the Guard forces of the Treasury Department in the District of Columbia, which recom- mendation is being in- formally handled B6 an amendment to the bill, Although our proposed amendment did not pass the House, we are op- timistic that if this bill is enacted, it will be included. Regraded Unclassified B, Treasury sponsored bills actively pending in Congress at the end of the First Sension of the 77th Congress (Jamiary 2, 1942) - (continued) STATUS AT END BILLS BRIEF EXPLANATION OF FIRST SESSION REMARKS 4. H.R. 5280 Authorizes and directs the Comp- Passed House, Oct.6, This bill undoubtedly (s. 1742) troller General to allow credit 1941; pending before will be enacted, next Relief of G. F. for the sum of $4,923.50 in the Senate Committee on session. Allen account of G. F. Allen, Chief Claims. Disbursing Officer, Treasury De- partment, and the sum of $26.39 in the account of Cecil M. P. Cross. famer special disbursing agent, Treasury Department, and the sum of $2.70 in the account of Will S. Wood, former special disbursing agent, Bureau of Narcotics. 5. H.R. 5291 Provides that the sum of $2,132.20 be Passed House. Oct.6, This bill has an Relief of Helen paid to Helen Rauch and $500 to Max 1941; pending before excellent chance of and Max Rauch Ranch in satisfaction of their claims Senate Committee on passage next seggion, against the United States for judg- Claims. ments obtained against the Director General of Railroads as a result of personal injuries sustained on May 11, 1919. This is the case in which, after consideration by us of further evidence. the Treasury reversed itself and recom- mended enactment of this bill which WBB vetoed in 1938 on the Treasury's recom- mendation. Regraded Unclassified 5. Treasury sucheored bills actively pending in Congress at the end of the First Session of the 77t): Congress (January 2, 1942) - (continued) STATUS AT END BILLS BRIEF EXPLANATION OF FIRST SESSION REMARKS 6. H.R. 1793 Authorizes the mailing of small fire- Passed House, Oct.6, This bill has a very Mailing of fire- arms to officers and employees of the 1941; pending before good chance of an- arms enforcement agencies of the United Senate Committee on actment next session. States. Post Offices and Post Roads. 7. H.R. 5895 Authorises the Library of Congress Passed House. Nov.3. This bill was not (s. 2021) Trust Fund Board to allocate one- 1941; pending before submitted to Congress Library of half of the income from certain prop- Senate Committee on until Oct. 22, 1941. Congress Trust erty to the Smithsonian Institution. the Library. and no doubt will be Fund Board. Allo- The Secretary of the Treasury is enacted next session. cation of Income. chairman of this Board. 8. H.R. 2599; S.490 Authorizes the Federal Works Admin- Bille pending before This legislation has a Additional Coin- istrator to establish an additional House Committee on slim chance of passage age Mint coinage mint for the United States Coinage, Weights & due to the fact that in the central section of the United Measures. and Senate so many members of States. Committee on Banking Congress would like to and Currency. have the new mint in their districts or are afraid the establish- ment of a new mint will reduce employment in present mints located in their districts. Regraded Unclassified 3. Treasury sponsored bills actively pending in Congress at the end of the First Session of the 77th Congress (January 2, 1942) - (continued) STATUS AT END BILLS BRIEF EXPLANATION OF FIRST SESSION REMARKS 9. H.R. 4934; S.1799 Amende the laws relating to coun- Bills pending be- We hope to secure Conspiracy Counter- terfeiting of currency, stamps, for House and enactment of this feiting Bill etc., by providing conspirators Senate Committees bill during the sec- shall be subject to the punishment on the Judiciary. ond session of the applicable to convictions for sub- 77th Congress. stantive violations of such laws. In other words, it will make the sampenslties applicable to the chiefs of counterfeiting syndicates as now apply to their leg-men, 10. H.R. 5857: S.2023 Authorizes and directs the Comp- Bills pending before Submitted to Congress Relief of Roy ?. troller General to allow credit House and Senate Com- too late in the First Lassly and G. F. for the sum of $7,533.50 in the mittees on Claims. Session to receive Allen account of Roy 7. Lassly, former consideration. Acting Chief Disbursing Clerk, Department of the Interior, and the sum of $20,012.20 in the ac- counts of G. F. Allen, Chief Die- bursing Officer, Division of Dis- bursements, Treasury Department, on account of amounts which were paid by them on fraudulent vouchers. 11. H.R. 6089: S.2075 Authorizes payment of traveling Bills pending before This bill was not sub- Travel Expenses of expenses of families of officers House Committee on mitted to Congress Treasury Employees and employees of Treasury Depart- Civil Service and until Nov. 24, 1941, Serving Abroad ment going to or returning from Senate Committee on too late to receive foreign posts of duty. Finance. consideration in the First Session. Regraded Unclassified 3. Treasury suinlored bills actively andine in Congress at the end of the First Segsion of the 77th Congress (January 2, 1942) - (continued) STATUS AT END BILLS BRIEF EXPLANATION OF FIRST SESSION REMARKS 12, H.R. 107 Authorizes the Secretary of the Bill pending before This bill has a Customs Leases Treasury or any of his authorized House Committee on slight chance of Abroad representatives to lease build- Public Guildings & passage during the ings, parts of buildings, and Grounds. continuance of the grounds in foreign countries for present war, due to periods not to exceed 10 years. the world-wide character of the war. 13. H.R. 1834 Authorizes an increase in the Bill pending before This bill probably Enforcement Of- death and disability compensation House Committee on will not be enacted ficers' Death payable to Federal enforcement the Judiciary. during the present and Disability officers and their dependents emergency, due to the Benefits when such officers are killed or prevailing economy disabled while engaged in hazardous sentiment on the Hill work. with respect to matters not related to national defense. 14. S. 649 Requires International Toll Bill pending before This bill has a very Customs Facilities Bridges (1.e., along Mexican and Senate Finance Com- alight chance of par at International Canadian borders) to furnish free mittee. sage as it has Pen Toll Bridges inspectional facilities for ceived a great deal of Customs and other Federal officers opposition from toll necessarily stationed there, bridge owners and oper- ators, and relatively little expense to the Government is involved ($50,000). Regraded Unclassified E. Treasury sponsored bills actively pending in Congress at the end of the First Session of the 77th Congress (Jamuary 2, 1942) - (contimed) STATUS AT ZND BILL BRIEF EXPLANATION OF FIRST SESSION REMARKS 15. H.R. 4768 Authorizes regular tours of duty Bill pending before Although there will Customs Overtime for customs officers and employees, Ways and Means Com- be 8 fight on this Compensation at night, and on Sundays and holi- mittee. bill, it has & chance days, without extra compensation, of passage during and generally clarifies customs the Second Session. laws relating to services of cus- toms employees at night, and on Sundays and holidays, permitting assignment of customs employees to perform overtime services, and the payment of extra compensation for such services. 16. S. 1603 Provides for the extension of Bill pending before Due to the increase Banking facilities national banking facilities at Senate Committee on in the mumber of at allitary poste military reservations, and at Navy Banking and Currency. military reservations Yards and Navy Stations, upon etc., this bill has authorization of the Comptroller an excellent chance of the Currency and the Secretary of passage next session. of War or the Secretary of the Navy. 17. H.B. 5080 Transfers the jurisdiction over Bill pending before This bill has been District of Columbia District of Columbia Credit Unions House Committee on introduced in three Credit Unions. to the Farm Credit Administration. the District of or four different Columbia. Congresses, and has been stalled each time by opposition of the District of Columbia Credit Unions. Regraded Unclassified 10% B, Treasury sponsored bills actively pending in Congress at the end of the First Session of the 77th Congress (January 2, 1942) - (continued) STATUS AT END BILLS BRIEF EXPLANATION OF FIRST SESSION HEMARKS 18. S. 1671 Authorises national banks to Bill pending before This bill has a Power to pledge pledge assets to secure deposits Senate Committee on very good chance of assets of national of states and political subdivi- Banking and Currency. passage during the banks sions thereof in those states Second Session of having statutes permitting this the 77th Congress. practice. 19. S. 1839 Relieves the Treasury Department Bill pending before We did not expect Orderly payment of from the necessity and responsibil- Senate Committee on this bill to be en- conflicting claims ity of making a judicial determin- the Judiciary. acted this session, against the United ation whenever a creditor or other but it has a chance States claimant against a claimant against for favorable action the United States requests that next session. The the Treasury Department withhold Acting Comptroller payment from the original claimant, General and the At- and relieves original claimants torney General have from the necessity of having to spproved the objec- travel to the District of Columbia tives of this bill. to defend actions commenced there to reach amounts payable to them by the United States. while at the same time protecting the rights of creditors of such claimants. Regraded Unclassified 3. Treasury anonsored billa actively pending in Congress at the and of the First Session of the 77th Congress (January 2, 1942) - (cont toued) STATUS AT 3ND BILLS BRIEF EXPLANATION OF FIRST SESSION REMARKS 20. H.R. 5882 Simplifies accounting procedures Bill pending before This bill was not Unexpended and obli- with respect to unexpended and ob- the House Committee introduced in gated balances of ligated balances of the Emergency on Appropriations. Congress until certain emergency Relief Acts of 1935, 1936, 1937. Oct. 21, 1941, It relief appropria- and 1938 (other than repayments has a good chance tions and recoveries deposited as trust of passage next revolving funds) by providing that session. such funds shall constitute an "Emergency Relief Liquidation Fund". which is reappropriated to pay claims certified by the Comptroller General to be properly payable under those Acts. 21. Foreign Exchange Clarifies the procedure in ascer- No bill introduced, but Although there may for Customs Pur- taining the value of foreign cur- Treasury draft bill and be a fight on this poses. rency for customs conversion pur- letter of submission bill. we are optimis poses while there are dual or pending before House tic that it will be multiple exchange rates. Ways and Means Com- enacted during the mittee. Second Session. 22. Harrison Marcotic Relieves certain hospitale from No bill introduced, but This bill eventually Act Amendment double occupational tax by speci- Treasury draft bill has a good chance fically reclausifying them: clas- and letter of submission of passage. sifies newly discovered morphine pending before Senate derivaties. prevents abusive use Committee on Finance, of narcotic commodity tax stamps. and House Ways and Means and makes other desirable changes Committee. In the laws relating to narcotics, Regraded Unclassified 104 THE AMERICAN BANKERS ASSOCIATION OFFICE OF THE PRESIDENT THE SECURITY BANK OF PONGA CITY PONCA CITY OKLAHOMA H W KOENERE Jenuary 16, 1942 To (zarica's Banks: ilnes Lacember 7th it has become increasingly more important that the Defense Bond program be pushed to the utmost. I am taking this opportunity of asking the banks to pust forth every effort to keep this program continually before the people. There La now more need than ever for the success of the Defense Bond program and we should do everything possible to help. FIVE reports which have come to the officers of the Association, it is gratifying to know that the banks are doing an excellent job in the Defense Bond program. I Juve every confidence that they will continue to do this job in as menner charac- teristic and emblematic of the American way. IN officers of the Association have asked me to communicate with you and urge you to mulce errengements 85 soon as possible for imprinting the "For Victory Minute Man" on the face or back of your customers' and official checks, on customers' monthly statements, on letterheads, envelopes and all other stationery used by your bank. A cut. of the size you desire can be obtained free of charge from the Defense Sev- ings Staff, United States Treasury Department, Washington, D. C. Illustrated be- Low ..TS the two sizes available to banks for the purpose of carrying out this program. Order direct from the Defense Savings Staff of the Treasury and designate by number the size cut you desire. Your hearty cooperation in this undertaking will be appreciated, and there is no in my mind but what it will help matorially to increase the sale of Sonds. 207 your further help in the promotion of these Bonds, the Advertising Department =: the D. B. A. has prepared a completely new campaign with a war-time oppeal. The new acterial is described in the accompanying circular. REMYMBER PEARL HARBOR! Yours sincerely, FORVICTORY HwKarma H. V. Roeheke BUY President UNITED STATES EVERYCTORY SAVINGS BONDS BUY came AND STAMPS STATES SMITSLE Soups al nown style ,1 Style #2 Regraded Unclassified 105 Unfilled Orders for Savings Bonds at the Federal Reserve Banks and the Post Office Department January 5 to date (In thousands of pieces) : Unfilled : : Unfilled Stock of : New orders Bonds IBM : orders at : : orders at "B" type : received manufactured deliveries : opening of : : close of bonds : : business : today today : business on hand : this day Jan. 5 1,171 257 445 1,255 333 310 6 1,255 425 450 1,408 511 520 7 1,408 639 450 1,597 511 525 or 1,597 460 460 1,597 511 450 9 1,597 649 500 1,471 236 550 10 1,471 155 525 1,101 236 575 11 1,101 none-no mail 560 541 236 600 12 541 859 595 805 236 625 13 805 423 630 598 236 650 14 598 622 670 550 236 685 15 550 660 750 455 231 1,000 Office of the Secretary of the Treasury, Division of Research and Statistics. January 16, 1942 Regraded Unclassified CONFIDENTIAL UNITED STATES SAVINGS BONDS Comparative Statement of Sales During First Thirteen Business Days of January 1942 and December and November 1941 (November 1-17, December 1-15, January 1-15) On Basis of Issue Price (Amounts in thousands of dollars) : : Amount of Increase : Percentage of Increase Sales : : or Decrease (-) : or Decrease (-) : : : : January : December : January : December Item January : December # November : over : over : over : over : 1942 1941 : 1941 : December : November : December : November : : Series I - Post Offices $ 83,277 $ 32,538 $ 22,599 $ 50.739 $ 9,939 155.9% 44.0% Series I - Banks 224,935 59,055 40,057 165,880 16,998 280.9 47.4 Series E - Total 308,213 91.594 62,656 216,619 28,938 236.5 46.2 Series ? - Banks 33,331 10,446 10,439 22,885 7 219.1 0.1 Series G - Banks 138,014 66,112 63,648 71,902 2,464 108.8 3.9 Total $479,558 $168,151 $136,743 $311,407 $ 31,408 185.2% 23.0% Office of the Secretary of the Treasury, Division of Research and Statistics. January 16, 1942. Source: All figures are deposits with the Treasurer of the United States on account of proceeds of sales of United States savings bonds. Note: Figures have been rounded to nearest thousand and will not necessarily add to totals. Regraded Unclassifie 107 UNITED STATES SAVINGS BONDS Daily Sales - January, 1942 On Basis of Issue Price (In thousands of dollars) Post Office Bond Sales Bank Bond Sales All Bond Sales Date Series I Series 1 Series y Series G Total Series 1 Series 7 Series 0 Total January 1942 1 $ 3,982 $ 10,229 $ 1,964 $ 7,605 $ 19.798 $ 14,211 $ 1,964 $ 7,605 $ 23,780 2 4,802 10,736 2,056 7.779 20,571 15,538 2,056 7,779 25,373 3 4,457 9,557 1,278 5.453 16,289 14,015 1,278 5,453 20,747 5 9,684 26,724 3,240 13,704 43,668 36,408 3,240 13,704 53,352 6 6,711 7,659 1,341 6,778 15.778 14,369 1,341 6,778 22,489 7 6,748 21,267 3,692 18,832 43,790 28,015 3.692 18,832 50,539 8 7,509 21,297 3,821 12,871 37,989 28,806 3,521 12,871 45,498 9 5.746 12,359 1,798 4,765 18,923 18,105 1,798 4,765 24,669 10 4,398 16,031 1,858 6,355 24,244 20,429 1,858 6,355 28,641 12 10,157 37,483 3,830 14,353 55,666 47,670 3,830 14,353 65,853 13 7.902 15,059 2,507 11,944 29,510 22,961 2,507 11,944 37,412 14 4,706 19,939 3,701 14,293 37.933 24,645 3,701 14,293 42,639 15 6,444 16,597 2,243 13,283 32,123 23,041 2,243 13,283 36,567 Total $ 83,277 $224,935 $ 33,331 $138,014 $396,281 $308,213 $ 33,331 $138,014 $479.558 Office of the Secretary of the Treasury, Division of Research and Statistics. January 16, 1942. Source: All figures are deposits with the Treasurer of the United States on account of proceeds of sales of United States savings bonds. Note: Figures have been rounded to nearest thousand and will not necessarily add to totals. Regraded Unclassified 108 CONFIDENTIAL UNITED STATES SAVINGS BONDS Comparative Statement of Sales During First Fourteen Business Days of January 1942 and December and November 1941 (November 1-18, December 1-16, January 1-16) On Basis of Issue Price (Amounts in thousands of dollars) : : Amount of Increase : Percentage of Increase Sales : : or Decrease (-) : or Decrease (-) Item : : : : January : December : January # December : January : December : November : over : over : over : over 1942 1941 : 1941 : December : November : December : November : : Series E - Post Offices $ 88,998 $ 34,652 $ 23,552 $ 54,346 $ 11,100 156.8% 47.1% Series B - Banks 251,175 63,011 42,740 188,164 20,271 298.6 47.4 Series I - Total 340,173 97.663 66,292 242,510 31,371 248.3 47-3 Series F - Banks 37,650 11,339 11,051 26,311 288 232.0 2.6 Series G - Banks 152,093 68,012 67,673 84,081 339 123.6 0.5 Total $529,916 $177,014 $145,016 $352,902 $ 31,998 199.4% 22.1% Office of the Secretary of the Treasury, Division of Research and Statistics. January 17, 1942. Source: All figures are deposits with the Treasurer of the United States on account of proceeds of sales of United States savings bonds. Note: Figures have been rounded to nearest thousand and will not necessarily add to totals. Regraded Unclassified Unfilled Orders for Savings Bonds at the Federal Reserve Banks and the Post Office Department January 5 to date (In thousands of pieces) : Unfilled : : Unfilled Stock of : New orders Bonds IBM : orders at : : orders at "B" type : received manufactured deliveries : opening of : : close of bonds today today : business : : business on hand this day : Jan. 5 1,171 257 445 1,255 333 310 6 1,255 425 450 1,408 511 520 7 1,408 639 450 1,597 511 525 8 1,597 460 460 1,597 511 450 9 1,597 649 500 1,471 236 550 10 1,471 155 525 1,101 236 575 11 1,101 none-no mail 560 541 236 600 12 541 859 595 805 236 625 13 805 423 630 598 236 650 14 598 622 670 550 236 685 15 550 660 750 455 231 1,000 16 455 773 775 426 204 750 Office of the Secretary of the Treasury, January 17, 1942 Division of Research and Statistics. Regraded Unclassified 110 CONFIDENT UNITED STATES SAVINGS BONDS Daily Sales - Jenuary, 1942 On Basis of Issue Price (In thousands of dollars) Post Office Bank Bond Sales All Bond Sales Bond Sales Date Series I Series I Series 7 Series G Total Series E Series I Series G Total January 1942 1 $ 3.982 $ 10,229 $ 1,964 $ 7,605 $ 19,798 $ 14,211 $ 1,964 $ 7,605 # 23,780 2 4,802 10,736 2,056 7.779 20,571 15,538 2,056 7.779 25,373 3 4,457 9.557 1,278 5,453 16,289 14,015 1,278 5,453 20.747 I 9,684 26,724 3,240 13,704 43,668 36,408 3,240 13,704 53,352 6,711 7,659 1,341 6,778 15,778 14,369 1,341 6,778 22,489 7 6.748 21,267 3,692 18,832 43,790 28,015 3,692 18,832 50,539 8 7,509 21,297 3,821 12,871 37.989 28,806 3,821 12,871 45,498 9 5,746 12,359 1,798 4,765 18,923 18,105 1,798 4,765 24,669 10 4,398 16,031 1,858 6,355 24,244 20,429 1,858 6,355 28,641 12 10,187 37.483 3,830 14,353 55,666 47,670 3,830 14,353 65,853 13 7,902 15.059 2,507 11,944 29,510 22,961 2,507 11,944 37,412 14 4,706 19,939 3,701 14,293 37.933 24,645 3.701 14,293 42,639 15 6,444 16,597 2,243 13,283 32,123 23,041 2,243 13,283 38,567 16 5,721 26,239 4,319 14,078 44,637 31,960 4,319 14,078 50,358 Total $ 88,998 $251,175 $ 37,650 $152,093 $440,917 $340.173 $ 37.650 $152,093 $529,916 Office of the Secretary of the Treasury, Division of Research and Statistics. Jamary 17, 1942. Source: All figures are deposits with the Treasurer of the United States on account of proceeds of sales of United States savings bonds. Note: Figures have been rounded to nearest thousand and will not necessarily add to totals. Regraded Unclassified 110-A January 16, 1942 TO: HAROLD N. GRAVES SUBJECT: PROGRESS REPORT FROM DEFENSE SAVINGS STAFF MALE OF BONDS Actual cash receipts from the sale of E, F and G- Bonds for the first twelve business days of Jenuary totalled 440,991,000, an increase of 206.7 per cent over sales for the corresponding twelve days of December. Sales for the first twleve days of December were 143,803,000, while sales for the same days in November were 126,122,000. Sales of Series E Bonds during the first twelve business days of January were $285,171,000, an increase of 292.1 per cent over Series E Bond sales during the corresponding period in December. Series E Bond sales for the first twelve business days of December were 72,729,000. SPECIAL & study of People's Motives for Buying Defense Bonds and Stange, made by the Psychological Corporation of New York and Chicago, based upon 790 interviews, revesls valuable and interesting information. (A complete copy of the study is attached) PAYROLL SAVINGS PLAN Based on reports from State Administrators, returns from 38 states, as of January 15, showed that 8,216 firms employing Regraded Unclassified 110-B -2- PAYROLL SAVINGS PLAN (continued) 9,778,000 persons either already have adopted or are currently making arrangements to install the Payroll Savings Plan for regular and continued purchases of Defense Savings Bonds. Outstanding reports of recent installations as reported by the Field Office, include: General Electric Co., Schenectady, N. Y., advises that 102,000 out of 132,000 employees are subscribing $1,260,000 each month. Eastern Massachusetts Street Railway Co., with 1,750 employees reports 90 percent participation. One hundred per cent participation is reported by the Fairbanks Scale Company, of St. Johnsbury, Vermont, with 772 employees, and the Gilman Paper Company, Gilmen, Vermont with 512 employees. The Ford Motor Company's Payroll Savings Plan for 127,000 employees has been forwarded to the Treasury. The 60,000 employees of the Aluminum Company of America will enroll in the Payroll Savings effective February 1. Carson-Piorie-Scott of Chicago, with 700 employees, reports 98 per cent are participating, and that in addition they have sold $50,000 worth of bonds in "spot cash" purchases. The Mohawk Carpet Co., Amsterdam, N. Y. invested $216,175 in Defense Savings Bonds through payroll Savings in November and December. Regraded Unclassified 110-C -3- PAYROLL SAVINGS PLAN (Continued) All State Departments in Ohio have installed Payroll Savings, enrolling 16,000 employees. STATE GUIDE BOOKS Twenty-six states have received copies of the State Guide Books prepared jointly by the Office of Government Reports and the Promotional Unit of the Defense Savings Field Office. The remaining states will receive their books within ten days. SECURITY DEALERS Representatives of various associations of security dealers in stock exchange firms have offered their services to the Defense Savings Program. Field Memorandum No. 172 (copy attached) explains tentative plans in detail. RETAIL STORES New York retailers have decided to extend the advertising effort they inaugurated January 1. They will sponsor indefinitely a series of monthly promotions in the interest of Defense Savings. Their plans include newspaper advertising, plus an outdoor cam- paign using space on 500 billboards in the Greater New York Area. Regraded 110-D -4- RETAIL STORES (Continued) The following chain store firms advise that the voluntary Payroll Savings Plan has been adopted, with a major percentage of their employees participating. Sears, Roebuck, 55,000 employees Safeway Stores, 23,000 employees Kroger Grocery & Baking Co., 23,000 employees Economy Grocery Co., 2,000 employees In addition, Sears, Roebuck has set up a $500,000 revolving fund for Defense Savings Stamp purchases. From this fund every regular employee is supplied with $10 worth of Stamps to sell to his customers and acquaintences. Many retail concerns are preparing their own posters and signs, advertising Defense Savings, to display in their stores. Among firms doing this are Schulte Cigar Stores, United-Whalen Drugs, Sears Roebuck, Kroger Grocery and Baking Co., and Safeway Stores. EDUCATION Official handbooks for educational committees, setting forth means for adapting Defense Savings in schools, are scheduled to be off the presses by the first of next week. These handbooks will be distributed by State Administrators. Special Lincoln and Washington Birthday articles of par- ticular interest to school children are being printed in form 110-E -5- EDUCATION (Continued) suitable for insertion in students notebooks. The Lincoln's birthday article features the story of the Lincoln penny, while the other compares the methods of financing George Washington's army and our present and potential armed forces. The Lincoln piece is designed for granmar school children; the Washington story for high school pupils. Both articles are illustrated. An article prepared by the Education Division appears in the February issue of "School Life", published by the Office of Education. Another is scheduled for the March issue of the magazine "Nation's School". SPECIAL FOREIGN LANGUAGE GROUPS Sons of Norway, ofMadison, Wisconsin, voted to purchase $750 worth of Bonds. Hungarian Women's Reformed Sick Benefit Society, Indiana, has appropriated $300 of its fund for Defense Bonds. The Polish National Alliance, Schenectedy, New York, has $12,000 in Defense Bonds. Members of the St. George Greek community in Springfield, Massachusetts, subscribed more than $3,000 worth of Defense Savings Bonds in ten days. The Lithuanian Citizens Political Club of Waterbury, Con- necticut, has voted to buy its third $10,000 Defense Bond. Regraded Unclassified. 110.F -6- SPECIAL FOREIGN LANGUAGE GROUPS (Continued) In Cincinnati, Ohio, German-speaking members of the American Citizens' League helped raise $800 for Defense Bonds in a fort- night. Youngstown's Croatian Fraternal Union, in Ohio, voted a $1000 subscription to Defense Bonds. The Italian Workmen's Club, Madison, Wisconsin, bought a $1000 Bond. The Sacramento, California resident Japanese are participating wholeheartedly in the Defense Program. In The Dalles, Oregon, the postmaster counted 5600 pennies for Defense Bonds turned in by the baby daughter of 8 Japanese restaurant keeper, Ukranian National Association, West Easton, Pennsylvania, voted $300 in Defense Bonds. Members of the Syrian-American Association pledged a $10,000 purchase. In Gary, Indiana, representatives of five Roumanian groups purchased $7000 in Defense Bonds. Members of the Serbian Lodge, No. 129, East Moline, Illinois, have pledged at least $8000 in Defense Bonds. A Philadelphia bootblack, Tony da Grossa, bought $1700 in Defense Bonds - 50 years savings. In Houston, Texas, a Roumanian has sold $700 worth of stamps from store to store. His goal is $5000. Regraded Unclassified 110-G -7- RADIO New "station break" copy has been sent to all radio stations. A total of 5,222 are being used daily. (see Radio Attachment No.2) The following radio programs are now including Bond and Stamps as prizes. a. Red Skelton NBC (Brown and Williemson-sponsor) b. Quiz Kids NBC (Dr. Miles Laboratory-sponsor) 0. Information Please NBC American Tobacco Company-sponsor) d. Vox Pop CBS Emerson Drug Co.-sponsor) e. How Am I Doin' CBS Camel Cigarette- sponsor) f. Hit Parade CBS American Tobacco Co.-sponsor) g. Kay Kyser NBC American Tobacco Co.-sponsor) h. Double or Nothing MBC (Feenamint - sponsor) 540 Foreign Language announcements are being made daily over 186 radio stations, copies of new foreign language announcements are attached. (See Radio Attachment No. 1) Radio Station KTNM (Tucumcari, New Mexico) originated its own Defense show "America Calling" on January 10, and sold bonds at the rate of one per minute. The town has & population of 5,000. A total of $2,650 in bonds was sold during the first program. "America Calling" will be on the air on KTNM every Saturday. David Sarnoff, Director of the National Radio Minute Men Campaign has invited William Paley, President of CBS and Alfred J. McCosker, President of MBS, to serve with him on a joint committee. The RCA office in New York will schedule all Minute Men on network broadcasts, both sponsored and sustaining. Regraded Unclassified 110-H -8- RADIO (Continued) Invitations to nationally prominent religious leaders of all faiths to join the Minute Man Committee were issued this week. A total of 4,300 Minute Man announcements already have been made over the nations radio stations. Radio Station WBZ-WBZA, in Boston and Springfield, Massa- chusetts, have insugurated a half hour Saturday evening program - "REMEMBER PEARL HARBOR"- devoted to securing pledges for purchases of bonds. Western Union is cooperating with the stations in this campaign. Pledges on the January 10th program amounted to $12,000. The program is scheduled to go on indefinitely. Arrangements are being completed to record Minute Man announcements by U. 8, Senators to be distributed to all radio stations in their home states for repeated broadcasts. One hundred and twenty-four radio stations now have 100% memberships in Payroll Defense Savings Plans. TELEVISION The Columbia Broadoasting System reports that the first television Bond Program telecast 8:15 - 9:10 P.M., Friday, January 9, sold $75,000 worth of bonds. In all, 48 contributions were received, the largest one of $50,000 from Bankers National Life Insurance Company. Other purchases in amounts of $5,000 each were phoned in by Larry MoPhail and Dan Topping in the name of the Brooklyn Dod gers and the N. Y. Football Playing Dodgers, respectively. 110-I -9- TELEVISION (Continued) The Defense Savings Staff is also utilizing the ten-minute intermission spot on the NBC telecast of the Monday night fight shows, to promote Bond sales. PRESS Photographs of Dorothy Lamour's varied activities in New York, Philadelphia and Washington were carried by all newspapers and photo services. (Several clippings are attached.) Other pic- tures arranged by the Press Section which received widespread pub- licity include the installation of a Defense Stamp Booth at the Washington National Airport; sale of bond to Sonja Heine by Mrs. Lytle Hull; Joe Louis buying bond on the day of his induction into the Army; and of stars of the Olsen and Johnson shows, visiting Vice President Wallace before starting their Payroll Savings Enter- tainment Caravan. (Clippings are attached.) Voluntary reports from the first mailing of comic cartoons, drawn especially for Defense Savings Staff, were received from 75 editors and publishers of leading daily newspapers asserting that they would use the material regularly. First of a special "Defense Savings hints for housewives" series were mailed to all women page editors of daily newspapers. ACME News Pictures, Inc. took pictures of Chinese buying bonds at the Chinese Post Office in San Francisco and are arranging 8. feature release. 110-J -10- PRESS (Continued) Crockett Johnston, representing a group of magazine cartoon- ists, came to Washington to inform Treasury officials that the nation's magazine cartoonists would provide Defense Savings with cartoons for their Trade Publications and House Magazines. A full page color cartoon of "THE TIMID SOUL" devoted to the Defense Savings Program is attsched. Also attached are clippings of newspapers with unusual publicity "breaks". Editor and Publisher Newspaper trade magazine carried three stories and a full page advertisement about activities of the Press Section. (Marked copy is attached.) NEWSPAPER CARRIER SALES As of January 12, 493 newspapers in 443 cities, with 8 total city circulation of 11,063,290, reported sales of 38,265,370 ten- cent stamps, or their equivalent in Bonds or Stamps of larger denominations. (Cash total - $3,826,537.) These sales were made by 107,303 newspaper carrier boys. Theaverage sales per carrier amounted to $35.60. A table showing the breakdown of sales is attached. LABOR PRESS ADVERTISING To date, 235 labor papers have agreed definitely to publish our Payroll Savings advertising releases. This group has an aggregate circulation of approximately 3,525,000. Regraded Unclassified 110-J -10- PRESS (Continued) Crockett Johnston, representing a group of magazine cartoon- ists, came to Washington to inform Treasury officials that the nation's magazine cartoonists would provide Defense Savings with cartoons for their Trade Publications and House Magazines. A full page color :artoon of "THE TIMID SOUL" devoted to the Defense Savings Program is attached. Also attached are clippings of newspapers with unusual publicity "breaks". Editor and Publisher Newspaper trade magazine carried three stories and a full page advertisement about activities of the Press Section. (Marked copy is attached.) NEWSPAPER CARRIER SALES As of January 12, 493 newspapers in 443 cities, with a total city circulation of 11,063,290, reported sales of 38,265,370 ten- cent stamps, or their equivalent in Bonds or Stamps of larger denominations. (Cash total - $3,826,537.) These sales were made by 107,303 newspaper carrier boys. Theaverage sales per carrier amounted to $35.60. A table showing the breakdown of sales 48 attached. LABOR PRESS ADVERTISING To date, 235 labor papers have agreed definitely to publish our Payroll Savings advertising releases. This group has an aggregate circulation of approximately 3,525,000. Regraded Unclassified 110-K -11- BUSINESS PUBLICATIONS A total of 1,878 requests for complete information about the voluntary Payroll Savings Plan was received as a result of adver- tisements of the Defense Savings Staff published by business publications. These requests all have been answered. HOUSE MAGAZINES A detailed plan, calling for additional emphasis on the Payroll Savings Plan in house magazine publications has been completed by the House Magazine Editors' Committee. The committee's report was based on a two week study here in Washington. LABOR PRESS Bernard Seaman, who draws the "March of Labor," a cartoon feature appearing regularly in 160 labor publications, has noti- fied the Treasury that he will include a pictorial item about Defense Savings in each release. Copies of labor publications showing typical use they make of mats, stories and cartoons sent out by the Press Section, are attached. STAGE AND SCREEN STARS At a statewide Defense Bond rally attended by 20,000 persons in Indianapolis, Indiana, on January 15, Carole Lombard, appearing Regraded Unclassified 110-L -12- IT. E ....D SCREEN STARS (Continued) LE uert star, sold a total of $2,000,000 worth of Defense Bonds during the course of the evening. Dorothy Lamour made special appearances this week for the Defense Sevings Program in New York, Philadelphia, Washington, at B.ltimore. The entire cast of Eddie Centor's "Banjo Eyes," Broadway visic 1 comedy production, has signed up to participate in the Dafonse Payroll Savings Plan. WAS The Defense Savings Staff Newsreel Crew made lictures this week in various cities and towns in Mossachusetts, Rhode Island nd Connecticut. VOTURI PICTURES Employees of Metro-Goldwyn-Mayer, Loew's Inc., Werner Bros., nd Poremount have signed up to participate in the Payroll Sevings Plan. The Defense Savings Staff is sending out copy no layouts to III motion picture producers which they will work into their eivertisements. These advertisements are used in the nation's 16,000 theatres and in the 1,550 daily newspapers. Speci 1 copy ie lso being prepared for use on billboard posters and theatre Lobby disoliys. This copy will be changed fre mently to emphasize need of universal edoption of Payroll Sevings. Regraded Unclassified 110-M -13- HAGERSTOWN CAMPAIGN The Defense Bond and Stamp Campaign for Hagerstown and Washington county, Maryland, established as its goal enough money to buy two Fairchild Trainer planes. The campaign wound up with enough bonds and stamps sold to purchase 28 such planes. DIRECT MAIL Defense Bond sales by direct mail this week were $1,001,331 bringing the total sales as on January 15 through this medium to $16,445,507. LABOR The International Union of Bricklayers, Masona and Plasterers of America (A.F.L.) has purchased $150,000 of Defense Bonds for 1942. They purchased the same for 1941. Los Angeles Typographical Union No. 174 has voted B $10,000 purchase of Defense Bonds. At New Britain, Connecticut, The American Velvet Company has bought 6,300 of Defense Bonds. In Atlanta, Georgia, United Auto Workers, (C.I.O.) have acked the Ford Motor Company to pay all wages in excess of the 5- day week into the purchase of Defense Sevings Bonds end Stemps. In the Sand Coulee-Stockett district of Montena, miners are devoting 0 day's pay, besides their pledges, to the purchase of Defense Bonds and Stamps. Regraded Unclassified 110-N -14- LABOR (Continued) International Brotherhood of Teamsters, (A.F.L.) bought $1,000,000 of Defense Bonds and are pledging $2,000,000 yearly E.S. long as the war lasts. The International Union of Mine, Mill and Smelter Workers (C.I.O.) Birmingham-Bessemer area of Alabama, sets a goal of $200,000 for its quota. SERVICE GROUPS North Dakota's ten Elks Lodges have recently bought over $100,000 in U. S. Defense Bonds. Members of the Fourth Degree Assembly of the Knights of Columbus in Rochester, New York, have undertaken to sell $10,000 worth of Bonds and Stamps the first two weeks in January. Benevolent and Protective Order of Elks in New Bedford, Mass., met to receive instructions for canvassing 40,000 workers relative to payroll savings plan. TRADE PROMOTION The Menasha Products Company of Menasha, Wisconsin, reports that it has provided 12,350,000 Defense Bond Labels to 19 large bakeries in various sections of theUnited States. (Sample attached) SPECIAL FULL PAGE COMIC CARTOON Attached is photostat of full page of Dudley Fisher's "Right Around Home", which will be published in more than 60 newspapers on February 1 in full color, both in standard size and tabloid. Regraded Unclassified EXECUTIVE ORDER 2153 9024 ESTABLISHING THE WAR PRODUCTION BOARD IN THE EXECUTIVE OFFICE OF THE PRESIDENT AND DEFINING ITS FUNCTIONS AND DUTIES By virtue of the authority vested in me by the Consti- tution and statutes of the United States, ns President of the United States and Commander in Chief of the Army and Navy, and in order to dofine further the functions and duties of the Office for Emergency Management with respect to the state of war declared to exist by Joint Resolutions of the Congress, approved December 8, 1941, and Docember 11, 1941, respectively, and for the purpose of assuring the most effective prosecution of war procurement and production, it ishereby ordered as follows: 1. There is established within the Office for Emergency Management of the Executive Office of the President a "ar Production Board, hereinefter referred to as the Board. The Board shall consist of a Chrirman, to be appointed by the President, the Secretary of War, the Secretary of the Nevy, the Federal Loan Administrator, the Director General and the Associate Director General of the Office of Production Manage- cunt, the Administrator of the Office of Price Administration, the Chairman of the Board of Reonomic Terfore, and the Special Assistant to the President supervising the defense aid program. 2. The Chairman of the Yer Production Board, with the odvice and assistance of the members of the Board, shall: Regraded Unclassified 112 a. Exercise general direction over the war procure- ment and production program. b. Determine the policies, plans, procedures, and methods of the several Federal departments, estab- lishments, and agencies in respect to war procure- ment and production, including purchasing, con- tracting, specifications, and construction; and including conversion, requisitioning, plant expan- sion, and the financing thereof; and issue such directives in respect thereto as he may deem neces- sary or appropriate. a Perform the functions and exercise the powers vested in the Supply Priorities and Allocations Board by Executive Order No. 8875 of August 28, 1941. d. Supervise the Office of Production Management in the performance of its responsibilities and duties, and direct such changes in its organization as he may deem necessary. 9. Report from time to time to the President on the progress of war procurement and production; and perform such other duties as the President may direct. 3. Federal departments, establishments, and agencies shall comply with the policies, plans, methods, and procedures in respect to war procurement and production as determined by the Chairman; and shall furnish to the Chairman such information relating to war procurement and production as he may deem neces- sary for the performance of his duties. Regraded Unclassifie 113 - 3 - 4. The Army and Navy Munitions Board shall report to the President through the Chairman of the Har Production Board. 5. The Chairman may exercise the powers, authority, and discretion conferred upon him by this Order through such offi- cials or agencies and in such manner 28 he may determine; and his decisions shall be final. 6. The Chairman is further authorized within the limits of such funds as may be allocated or appropriated to the Board to employ necessary personnel and make provision for necessary supplies, focilities, and services. 7. The Supply Priorities and Allocations Board, estab- lished by the Executive Order of August 28, 1941, is hereby abolished, and its personnel, records, and property trans- ferred to the Board. The Executive Orders No. 8629 of January 7, 1941, No. 8875 of August 28, 1941, No. 8891 of September 4, 1941, No. 8942 of November 19, 1941, No. 9001 of December 27, 1941, and No. 9023 of January 14, 1942, are hereby amendied accordingly, and any provisions of these or other pertinent Executive Orders conflicting with this Order are hereby superseded. FRANKLIN D. ROOSEVELT THE WHITE HOUSE, January 16, 1942. Regraded Unclassified 114 FOR THE PRESS IMMEDIATE RELEASE JANUARY 16, 1942 2154 The President announced today the appointment of William S. Knudsen as Director of Production for the War Department. On Monday, the President will send the name of Mr. Knudsen to the Senate for appointment as a Lieutenant General in the Army. Mr. Knudsen will have entire charge of directing and expediting the gigantic production involved in the War Department munitions program, with special emphasis on the production of airplanes, tanks, (uns and anmunition. He and his staff will in addition visit the great arvenals and munitions factories with the object of helping them constantly to improve and speed up their lines of produc- tion. In announcing the appointment, the President said: "Bill Knudsen is one of the great production men of the world and his acceptance of this new post means that he can give his entire time to the direction and expediting of production, a field in which he has no equal. "The country is already immessurably indebted to Mr. Knudsen and in accepting this assignment at my request, he is undertaking one of the most important tesks of the war. "He will, of course, continue as a member of the new War Production Board." Regraded Unclassified 115 JAN 16 1942 N dear Colonel Denovan: : - enclosing copies of the report on our exports to some selected countries for the weeks ending December 13 and 20, 1941 acul January 3. 1942. Copies will be sent to you regularly in the future. Sincerely yours, for D.W Bell Acting Decretary of the Treasury Colonel William J. Denovan, Coordinator, Office of Coordinator of Information, old National Institute of Yealth Building, 25th and & Streets, 2. S., Washington, D. C. MINC Enclosures Manice Memenager 2:40 where no 1/14/42 Regraded Unclassified 116 JAN 16 1942 My dear m. Secretary: I an melesing copy of report en - experts to - selected countries during the week ending January 3. 1942. Sincerely yours, ts, D.W.Bell Acting Secretary of the Treasury The Memorable, The Secretary of state, Washington, D. c. Enclesure nmc By Messenger Manus zido 1/6/42 copie IN DiWhite Regraded Unclassified 117 JAN 16 1942 My dear Mr. President: I on enclosing report on our exports to some selested countries during the wook ending January 3, 1942. Faithfully, 1st D.W.Bell Acting Secretary of the Treasury The President, The white House. Enclosure Via Secres Service 15 n.m.c. Copies to Di when 1/6/42 Regraded Unclassified January 14, 1942 Secretary Morgenthau Mr. White Bubject: Exports w nuesia, China, Burma, Hong Kong, Japan, France and other blocked countries, as reported to the Treasury Department during the week ending January 3, 1942. 1. Exports to Russia Exporte to Russia BA reported to the Treasury during the week ending January 3. 1942 amounted to about $4,000,000 as compared with approximately $1,800,000 during the previous work. Wilitary tanke and parts accounted for more than one-helf of the total amount. (See Appendix C.) 2. Exports to Ohina, Burma and Hong Kong Exports to Free Ohina amounted to 835,000. (See Appendix D.) Exports to Burms amounted to only $2,000. (See Appendix E.) No exports to Occupied Ohina or Hong Kong were reported during the week under review. 5. Exports to Japan No exports to Japan were reported during the **** under review, 4. Exports to France Jenuary 3. 1942. No exports to France were reported during the n/t ending 5. Exports to other blocked countries zports to other blocked countries are given in Annendix - Regraded Unclassified APPENDI" B Exports from the U.S. to China, surms, Hong Kong, Japan and U.S.B.P. as reported to the Treasury Department, July 8. 1741 - January 3, 194°, (Thousands of Dollars) Exports to China Total To Jamanese To Chinese yorts Exports Emorte Exports controlled controlled to to to to porte porte turas 7 Pong Kong Japan U.S.S.R. July 28 - Aug. 2 937 542 395 654 1,657 4,523 Aug. 4 - Aug. 9 2,794 7.794 - 983 159 551 Aug. 11 - Aug. 16 1,278 969 309 235 42 986 Aug. 18 - Aug. 23 1,352 1,350 2 234 6 2,735 Aug. 25 - Aug. 30 736 235 1 742 - 1,023 Sept. 2 - Sept. 6 #97 693 204 614 - 4,280 Sept. 8 - Sept.13 3,038 757 2,281 456 - 5,217 Sept.15 - Sept.20 3,978 156 3,822 389 6 752 Sept.22 - Sept.27 462 352 110 449 $10 - 2,333 Sept.29 - Oct. & 1,305 so 1,225 684 297 1 32) Oct. 6 - Oct. 11 5,864 552 5,312 1,157 1,233 - 6,845 Oct. 13 - Oct. 18 272 267 5 35 584 - 1,924 Oct. 20 - Oct. 25 660 399 269 403 1,243 - 5,623 Oct. 27 - Nov. 1 5,210 438 4,772 58 624 - 4,404 Nov. 3 - Nov. 8 1,836 164 1,672 342 283 5 4,552 NOV. 10 - Nov. 15 3,009 158 2,851 as 303 - 2,677 Nov. 17 - Nov. 22 1,701 473 1,228 1,021 600 - 3,581 Nov. 24 - Nov. 29 3,359 120 3,239 1,364 1,325 - 2,436 Dec. 1 - Dec. 6 12 61 791 64 - - 3,609 Dec. 8 - Dec. 13 3,025 688 2,337 18 - - 12,040 Dec. 15 - Dec. 20 123 12 111 8 , - 4,580 Dec. 22 - Dec. 27 37 36 1 196 - - 1,029 Dec. 29 - Jan. 3 35 - 35 2 - - 3,993 Total 42,768 11,796 30,972 5,889 11,629 1,869 80,896 1. These figures are is part taken from copies of shipping manifests, 2. Figures for exports to Proe China during these weeks include exports to Rangoos which are presumed to be destimed for Free China. 3. It is presumed that & large persentage of emports to Burna are destimed for Free China. 119 Treasury Department, Division of Monetary Research January 10, 1942 Regraded Unclassified 120 APPENDIX 0 Principal Exports from U.S. to U.S.S.R. as reported to the Treasury Department during the week ending January 3, 1942. (Thousands of Dollars) Total Exports $ 3,993 Principal Items: Military tanks and parts 2,054 Motor trucks and chassis 498 Lathes 205 Wheels of artificial abrasives 120 Explosive shells and projectiles 107 Barbed wire 101 Diesel engines 98 Brass and bronze plates end sheets 97 Thread-cutting and automatic screw machines 94 Forging machinery and parts 73 Drilling Machines 73 Treasury Department, Division of Monetary Research January 9, 1942 Regraded Unclassified 121 APPENDIX D Principal Exports from U.S. to Free China as reported to the Treasury Department during the week ending January 3. 1942. (Thousands of Dollars) Total Exports to Free China $ 35 Principal Item: Landplanes (partial shipment) 35 Treasury Department, Division of Monetary Research January 9, 1942 Regraded Unclassified 122 APPENDIX = Principal Exports from U.S. to Burna as reported to the Treasury Department during the week ending January 3, 1942. (Thousands of Dellars) Total Exports # 2 Principal Item: Paraffin wax 2 Treasury Department, Division of Monetary Research January 10, 1942 SF/efs 1/12/42 Regraded Unclassified 123 SUMMART OF UNITED STATES DOMESTIC EXPORTS TO SELECTED COUNTRIES AS REPORTED TO THE TREASURY DEPARTMENT FROM EXPORT DECLARATIONS RECEIVED DURING THE PERIOD INDICATED 1/ July 28, 1941 to Jemary 3, 1942 (In thousands of dollars) July 28 to Week ended Week ended Total Due. 20 December 27 January 3 Domestic Exports ". R. $74,726 $ 1,829 $ 3,993 $80,548 1700 China 28,333 1 35 28,369 Theres 6,806 196 w 7,002 France 2/ 6 - - s Decupied France 2 - - 2 Unoccupied France oh - - 14 pain 2,329 w - 2,329 Switzerland 5,059 1 1 5,061 Sweden 11,100 414 1 11,515 Portugal 4,450 22 16 4,480 Treasury Department, Division of Monetary Research January 6, 1942. 1/ Vany of the export declarations are received with a lag of several days or more. Therefore this compilation does not accurately represent the actual shipment of a particular week. The longer the period covered, the closer will these figures come to Department of Commarce revised figures. 3/ From September 11, 1941 to date - it is presumed that a large percentage of mate- rial listed hore, consigned to Burns, is destined for Free China. y Includes both Occupied and Unoccupied France through week ending October 4, 1941. Occupied and Unoccupied France separated thereafter. w less than $500. Allines 1/6/42. Regraded Unclassified TREASURY DEPARTMENT 124 INTER OFFICE COMMUNICATION DATE January 16, 1:42 did's Write TO Mr. Friedman FROM squeet: Digest of two cables received from American Embusey in Chungking dated January 12, 1042. 1. Embassy has been informed that Dr. Kung 1s proceeding with plans to institute monopolies. 2. When queried informally regarding reported monopoly of tobacco, Dr. Kung replied trat a cigarette sales monopoly 16 in process of being planned but the legislative procedure has not been finished end the monopoly bes not yet been completed. 3. Ambassador Gause says that he bas little doubt that the plans for monopolies Are related to the proposed loans. The Ambassior SUE ests that tris crovides an occasion for expressing United States objections to the esteblishment of monopolies. Lc. The Embasey hee been advised that effective January 1 the Crinese Gov m ent monopoly of salt W&S established. 5. The Ministry of Finance has assured the Ambassador that the members of the Salt Administration staff who are elective, who are technical experts, and who have Liven setisfactory service 111 be retained as members of the staff and that foreign loans originally secured on the salt tax will not be effected by the monopoly, The Ambsesador says that this involves B question of cood faith since it means a change in the existing status of the Salt Administration. Regraded Unclassified CONFIDENTIAL 12- y PARAPHRASE A strictly confidential telegram of January 12, 1942 from the Apprican Embresy at Chungking reads substantially ae follows: The Chinese Splt Administration's noting associate director general, An American, has advised ne that effective January 1, 2. Chinese Government monovoly of salt was to be established. He seid that the Chinese director regaral of the Chinese Selt Administration had told him that the proposal ised been sede to lower the position of the foreign officers of the Administration to that of advisors, wheress, at resent they had equal authority and joint responsibility with the Chinese officers. Unon learning the foregoing I directed en informal incuiry in regard to the metter to the Minister of Finance. In renly I have been informed that the monomoly would become effective from January 1: that members of the staff who are elective, who are technical experts, and who have given service which LA satisfactory will be retained RE members of the steff: and that foreign loone originally secured on the salt tax will not be affected by the monopoly. It ie my understanding that the Chinese Government assured British Fod, I think, American Interests which hold loans secured on Chineso salt revenue that the Chinese Government Aid not envisage any substontial change in the existing status of the Salt Administration which would result in R change of the status of foreign employees; the foregoing ection of the l'inister of Finance, therefore, involves the cuestion of good faith. More- over it Involves the cuestion of e large outlay of condital to organize Fi government monopoly of salt et a time when the finences of the Government are in e state of disorgenization and when inflation of the currency is winost out of control. chicogy 1-14-10 Regraded Unclassified CONFIDENTIAL 126 PARAPHRASE A confidential telegram of January 12, 1942 from the American Embassy at Chungking reade substantially 6.8 follows: Having been informed that Dr. H.H. Kung, Minister of Finance, notwithstanding advice to the contrary given to him by government advisers, is (proceeding?) with plans to institute monopolies, (I have been informed that there was in fact being established effective January 1 a salt monopoly), I asked Dr. Kung informally for data in regard to a reported monopoly of tobacco, and expressed concern on the part of American tobacco interests, including American lesf tobacco interests. In reply Dr. Kung said that although a cigarette sales monopoly is in process of being planned, legislative procedure has not been finished and the monopoly is not yet completed. He added that there 1e no discrimination and that equal treatment is being enjoyed by all cigarette merchants, both Chinese and foreign. A large financial outlay will be necessarily incurred in connection with the institution of monopolies, end I therefore have little doubt that Dr. Kung's plans for monopolies are in fact related to the loans from Great Britain and the United States which China hopes to receive. If it is our intention to consider seriously a request for financial assistance on the part of the Chinese Government, it would seem to me that we now have an opportunity to say to the Chinese Government that we are not prepared to T costly, demaging, and restrictive monopolies directly or otherwise. FE:JMJ:NHS FE 1-13-42 eh:copy 1-14-42 Regraded Unclassified 127 C o P Y PARAPHRASE OF TELEGRAM RECEIVED FROM: United States High Commissioner to the Philippines, (Manila), Fort Mills via N. R. DATE: January 16, 1942, 8 p.m. NO. I 22. THE FOLLOWING IS FOR TREASURY INFORMATION. 7. Please record that my staff have verified by actual count of large bills and sample count of small the following sums: (U.S. paper currency given to me for safekeeping) NAME AMOUNT Nederlandsche Indische Handels Bank. $ 13,500 Bank of Philippine Islands 175,000 Hong Kong and Shanghai Banking Corporation 50,000 SAYRE EMB Copy:bj:1-16-42 Regraded Unclassified 128 C o P Y PARAPHRASE OF TELEGRAM RECEIVED FROM: United States High Commissioner, (Manila) Fort Mille DATE: January 16, 1942, 3 p.m. NO : 21 This is transmitting a message for the Secretary of the Treasury. Six. It should be recorded, please, that the following sums in Philippine currency pesos have been verified by sample count of the small bills and by actual count of the large ones which were given for safe keeping to me: Amount in pesos Property of 500,000 Hong Kong and Shanghai Banking Corporation 800,000 China Banking Corporation 215,000 Peoples Bank and Trust Company 58,000 Nederlandscheindische Handels Bank 4,035,000 Bank of the Philippine Islands 2,421,000 National City Bank 30,000 Philippine Bank of Communications SAYRE Copy:bj:1-16-42 Regraded Unclassified Treasury Department 129 Division of Monetary Research Date January 19 1942 To: Miss Chauncey From: kr. Southard I understand that Under Secretary Pell 1F teleing care of the matter referred to in this cable. Regraded Unclassified 130 PARAPHRASE OF TELEGRAM RECEIVED FROM: American Consulate General, Batavia, Java, Netherlands Indies. DATE: January 16, 1942, noon. NO. 37. RUSH. The following 10 from Jevesche Bank for the Treasury, 0,8, Treasury MADAY currency and checks, presented chiefly in this country by American armed forces, are nurchased direct by JAVA Bank. Secause the tenk cannot rick loss of & shi and war risk insurance coats Inc, the problem of returning currency and checks to the U.S. :- expensive and difficult. The Yank 1 = desirous of finding a way to serve American arted foress no chenoly and efficiently as Dossible in financial matters. It is succested that: Checke and currency be destroyed by Jave Bank. Consular end Java Bank officials to be present at time of destruction. The total Amount of checks end currency destroyed at any one time to be cabled to Treasury Depart- nent in order that credit in the 11.6. may be obtained by Jova Bank. Treasury Department to have forwarded to it certified liets of currency end checks which have been destroyed; or an account with Java Bank, Retavia, to be opened by Treasury against which Navy and Army officere by draw, or in order to make the return of opper currency and checks to the U.S. unnecessary, anyoint Java Bank " the Treasury 'ecresentative in Netharlands Cant Indies. 1th Regraded Unclassified 131 -8- with the increase of American armed forces here, this problem will become greater. Suggestions by the Treasury Derartment will be appreciated by Java Bank. (This 18 the end of bank message) To avoid delays or even loss, I suggest immediate action. I should like to be advised of any decisions reached in the matter. FOOTE Regraded Unclassified 132 TREASURY DEPARTMENT INTER-OFFICE COMMUNICATION DATE Jenuary 10, 1942 TO gecretary Morgenthau FROM Districh CONFIDENTIAL sterling transactions of the reporting bence were Ea follows: Sold to commercial concerns 37.000 Purchased from commercial concerns 243,000 merset sterling remained at 4.03-3/4. end there were no reported In sxtremely light trading, the Canadian coller discount videned to 125m, 16 EVENTES vita 11-5/83 Inst night. Ia ew York, closing quotations for the foreign currencies listed below AS follows: Argentine peso (free) .2370 Brezilien milreis (free) .0516 Colombian peso -5775 Mexican peso .2065 Uruguayan peeo (free) -5250 Venezuelan boliver -2075 Cuban ceso Par 04168 france may still be purchased at .2331 from Swiss compercial Denks. 12 the excrence is used for compercial eno certain other specified purposes. sut the quotation on Swiss france for 'non-commercial' use hes moved from .2375 10 then .2450 during the past week. Apparently, such france are available only from Swiss balances at present owned by non-residents of Switzerland. The Volume or transactions in 'non-commercial' frence is reported to 06 very smell. According to El Swiss DENT'S new York agency, the ouls or orders to purchase this N/A of exchange AP8 recently been coming from Brasil, Bolivia and Colombia. The 3602.00 in of the opinion that many of the orders represent government requirements. Pive Federal Reserve 3808 of yew York purchased 140,000 Swedleh <ronor in ... York et .2385 for account of the Central BENE of the Uruguayan Republic. There were no gold transactions consummeted by de today. ... Federal Reserve Bank of Bew York reported tAst the BENA of Cereás will 12,152,000 in 6016 from Canada to the Federal for account of DOE Government Carpie, for sele to the New York AEBBY Office. Regraded Unclassified 133 N , 1 The State Department forwarded 6 cable to us reporting that the Bank of [IEV South Wales, Sydney, shipped $124,000 in gold from Australia to the American grust Company, San Francisco, for sale to the Sen Francisco Mint. In London, spot and forward silver. were again fixed at 23-1/2d and 23-9/16d, respectively, equivelent to 42.67$ and 42.78¢. The Treasury's purchase price for foreign silver WES unchanged at 35¢. and Harman's settlement trice for foreign silver wes also unchanged at 15-1/60. 16 made no purchases of silver today. D confidential Regraded Unclassified 134 BRITISH EMBASSY WASHINGTON, D.C. January 16th, 1942. Personal and Secret. Dear Mr. Secretary, I enclose herein for your personal and secret information a copy of the latest report received from London on the military situation. Believe me, Dear Mr. Secretary, Very sincerely yours, (Ror the Ambassador) R I Capbell The Honourable Henry Morgenthau, Jr., United States Treasury, Washington, D.C. Regraded Unclassified 108 Copy No. BRITISH LOST SECRET (U.S. SECRET) OPEN No. 13 Information received up to 7 a.m., 15th January, 1941. 1, NAVAL A modium sized British merchant ship, indepondently routed, mas torpedoed near CAPE RACE. 2, MILITARY LIBYA. In formed area bulk of the enemy are reported on the do- on the general line MERSA EL BREGA-MATEN BRICL/IBAT (20 miles South with West of HERSA EL REGA) - HAATEN GIOFER thence 13 miles alonguide trook Louding South to Our forward troops are maintaining their prossure. (corrupt group) BALE'WYA from Morth Teat and South Bast. EALAY1, On 13th our withdrawal continued according to plan, Bill-ay CAMPIN-GENAS is out in 3 places by bombing on 12th, Japanese claims 3 conture of linjor General Gordon-Bennett are unfounded. RUSSIA. The Russians have widened area of their advance South an towards BRYANSK. In CRIMEA the Russians are continuing to disembark troops at FECDOSIA, 3, JR OPERATIONS TSTAL FROMT. 14th. 4 large barges near DURIRE were hit and casualtion caused to personnel of gun emplacements. 14th/15th. Aircraft ere engaged in attacks on: HALBOURG (727), CDET 18, Aerodromes in HOLLAND 17, ROTTERDA 11 and sea mining 15, 5 of our Fenbors missing. Enery entivity mainly confined to 200 misin/ in "ortern approaches and Thomes Satuer, 1646 LIBYA. 12th/13th. bilingtons successfully Numbed mechanical consport near SL AGRINA. 13th/lith. TRIPOLI this bombed, 14th. Slenheims reported possible hits on 5,000 ten cerchant veasel (749) miles Zost KERKINAH ISLANDS, From foregoing operations 5 of our atr- craft are missing. MALTA. 13th/14th. 22 enemy aircraft carried out 7 ottacks over a period of 12 hours causing slight damage to civilian moperty, 14th, 51 aircraft made 6 attacks with remit that DAILI and SALBAR aerodromes were rendered temporarily unservicoable, Regraded Unclassified 136 - 2 - FAR EAST. BURMA. 13th. Our aircraft damaged 2 enemy aircraft on PRACHUAB KIRKIHUN aerodrome (SIAM 150 miles South of BANGKOK) and destroyed a locomotive. MALAYA. 12th/13th. 3 Catelinas (one of which is missing) bombed SINGCRA. 13th. 50 bombers escorted by 20 fighters attacked SINGAPORE causing slight damage to R.A.F. and civilian property. 20 Buffaloes (of which 3 aircraft and 2 pilots are missing) intercepted them with result 1 enemy bomber probably destroyed and another damaged. Regraded Unclassified RESTRICTED 137 0-2/2657-220: No. 602 M.I.D., W.D. 11:00 A.M., January 16, 1942 SITUATION REPORT :. Pacific Theater, Philippines: Fighting varying from intensive to desultory engages our entire front. The enemy is attempting infiltration tactics and is making full use of its air superiority. Fighters and dive bombers are continuously strafing and bombing our artillery positions and our front lines. The Japanese are systematically devastating the entire countryside. Hawaii: No further reports of enemy activity have been received. Malaya: The ground situation remains unchanged. According to the press, Australian reinforcements have reached the western Malayan front. Enemy air activity continues, with the press reporting that hostile planes were driven away from Singapore, and that Singapore based British planes have carried out attacks on Port Swetten- nam, which ls now in Japanese hands. Burma: Air activity by both sides continues. The press states that the British have bombed a Japanese air base at Mesod on the Thailand-Burma border. Netherlands East Indies: Dutch forces, according to the press, were fighting against enemy invusion forces in the northern tip of Celebes Island. Hostile air raids on Amboina have intensified. Went Coust: No further reports. II. Eastern Theater. Ground: Fighting continues on the central front west and northwest of Moacow. The Russians claim to be pushing their advance. The Germans report hard defensive fighting. The Germana claim that Russian attacks at Insunreg have been repulsed. (No situation map will be Issued today.) Air: The German High Command stutes that German aircraft attacked Russian troops on the Kerch peninsula and also damaged three Russian merchant ships in the Black Sea and in the Sea of ABOV. III. Western Theater. The British Air Ministry reports that the R.A.F. relded many shipysrds last night, two shipyards at Numburg being heavily bombed and the yards and docks there left abiaro. IV. Middle Eastern Theater. Ground: In the Hulfays are SORE look1 successes WORK it- by the British, British lines are new approaching the Past from 20th flanks. In the Agedatia-Agheils sector considerable envoy regist- under is developing along the coastil strip. British troops are not incurrtering such resistance along the southern flank of the AXIS line. Air: The Press reports that Axis air ruids on Multa increased pestorday. Hostile air activity is apparently increasing in the Tripoli- tania-Cyrenaion sector. The R.A.F. continued the bonting of ports, roads, and supplies in the Axis rear areas. RESTRICTED Regraded Unclassified TO: Mrs. Rlotz 138 Mrs. magerian wants an anguial the marked and / copy BG to go to her at the house Sent 1/01/42- From: LIEUT. STEPHENS 139 THE UNDER SECRETARY OF THE TREASURY WASHINGTON January 17, 1942 FOR THE STORETARY: Cabinet meeting - January 15, 1942 :- President said that he was glad to welcome Donald in entimalty nt the Sabinet table, he not a ME job before his, - confidence in Do du it and do It well. 1:0 orid that he had " letter refore him from Mrs. Morgenthau wisher of Nictures attached ne to what might be done in Dre- \intorical The records. he would like each department and - 2/1 VIVA - thought to this nitter. During the lust war, he of 1000 - young painter R. commission in the Havy AP an eneign and mont No abroad to paint pictures of the United States flest at WAY. - number of pictures which are now displayed 59 a collection :- you office 1n the Government service, name of visicli I did not vet. - he culn 11k- to mus anmeone in charge of it to follow 2016. Rll of the departments. I sugrested time Ted Price would 10 scouse nergon to overses it. Tite President satil he thought -- - 200 sucrestion and he "ould refer Mrs. Morgenthaule letter 20 mi Spice with instructions to carry out the ides. Ke wanted ell devertments to congerate 80 he 7GB very must Intergated in it. Secretary Hull said that Kg had the membership on the Prench sevi I assume he referred to the Free Freuch occupying the X 1110 curret of Canada. The President eath that be and Churchill :- discussed the and tot agreed to 1:, and Churchill had =@= " Inlieved be court taxe CATA of the netter when he 20% back to - by talking to DeGarlle. Socretary Rull anid he had unler occoideration the auttre of tite if Miberia. "e have just about completed DI lorge mirfield In Hard and 11 mention T.O.R crimes up of protectipy this mirfield from alliway stanspoint And I'm from as operating attendment. The within Ur. Bill ti Fot toesther with the Army and Tavy and - list recommentation " to what incolled to " 011 In this area. Subtotary Hull then noted the President If 16 SAC 10% the high FORDEFENSE differst from Sateria. He said that le W not, but lice had heard eint him end thought lie had better ROB his before EASY days. There BUY discussion 5-1-800 the Prosident, Secretary Hull, and 2016 President Vallage MA to the attitude of the Date: townds 110% The Regraded Unclassified 140 President said that the Dutch were not pleased at all with our actions, particularly the central command in Wavell and Hart. The President said that it was just necessary that he act on many matters without straining out cables between him and Queen Wilhelmina in England. They were just too slow to act for him to take these matters up with them first, I had nothing to report other than the sale of Defense Savings Bonds, which the President was very much interested in. He was very much pleased to find that we had sold $480,000,000 of these bonds the first fifteen days of January, almost as much as we had sold during the whole month of December. Secretary Stimson had nothing to report. The Attorney General had nothing to report but said that he would like to 868 the President after the conference on the question of some nominations and he also had prepared for the President a memorandum on the ships he had asked about. Secretary Knox said that one of his officers had come to him with a report that Mr. Currie had cleared with the Army the question of sending A full squadron of planes and their crews to China to protect the Burma Road, and the Navy was prepared to go along, but he just wondered if the matter had been cleared with the President. He also raised the question as to the route that should be taken from here to Burma. Secretary Stimson said that he had not heard of it and he questioned as to whether that had not been discussed pretty far down the line. It had not reached the General Staff. The President told him be did not want it to go through until discussed at the joint staff meeting and to let him have a recommenda- tion after the joint staff had approved it. The Postmaster General had nothing to report. Secretary Ickes said that it had been necessary for him to divert tankers from the East to the West Coast and there might be a. temporary shortage in the East. There was also a discussion of how many tankers had been turned over to England. The President wanted to know how many tankers were coming off the ways. Secretary Ickes said he would get this information and report on it. There was a general discussion as to whether or not wooden barges could not be made into tankers and built on the Great Lakes. This question is to be looked into and n. report made. Secretary Ickes brought up the question of the Alaska road. He was wondering if it would not be a good thing to go ahead with this at this time for military reasons, for there were many times during the year that it was rather difficult for ships to get in to certain ports of Alaska because of heavy fogs, that the road when completed might come in very handy for sending supplies to military posts in Alaska. Mr. Wallace was very familier with it and thought the road essential at this time, but he questioned its proposed location. He thought the matter should be studied very carefully before we go ahead with the proposed plan. The President said he would like for Secretary Ickes to discuss the matter with Mr. Wallace and also ascertain the military value of the road from Secre- taries Knox and Stimson and let him have & report on it. 141 Secretary Wickard then raised the question of the Japanese situs- tion in California in its relation to the growing of vegatables for the coastal cities. He said that he understood that the military authorities were going to put the Japanese people outside of the military areas. If this is done, it will be necessary to replace these Japanese laborers with other laborers to grow vegetables for the coming season. He said it was a very serious matter not only from the standpoint of supplying food for that area, but also there were political complications involved. Be said he had written & letter to the Secretaries of State, Treasury, War, Navy, and Labor asking them to appoint representatives to attend & con- ference in his office at 2:30 Monday, to discuss the problem. (I am advising Mr. Vickard that I have appointed Mr. Bernstein of the General Counsel's office to represent the Treasury.) Mr. Wickard then discussed the problem of supplying natural rubber in the Western Hemisphere. He said that he did not think they could meet the present problem from this source as they could only grow about 10,000 tons by 1945. Secretary Jones said that he did not believe it was a matter of relative importance in our own supply and that 1/8 should go ahond with the synthetic plants which probably could produce 400,000 tons in the course of a year or two. The President raised the question BR to whether all of these plants should not be Government-owned, because if they are privately owned and they are not able to meet the foreign prices, it will immediately bring up the question as to whether or not Congress should put on R. tariff on importe to bring the foreign prices up to domestic prices. Secretary Jones agreed to look into this matter, Mr. Wickard then discussed the supply of oils and fats for the next year. He said that he believed they had gotten just about all the oils and fats they would be able to get. Possibly the increase in hoge might add to this, but not in a great quantity. He raised the question 8.0 to whether or not he should authorize an increase in cotton in order to get cotton seed. The President and the Vice Premident agreed that this should not be done 88 we are now raising too much cotton. Secretary Jones said that the national income for the calendar year amounted to $92 billion, which is about $16 billion above last year. He thought that approximately one-third of the increase was due to higher prices and two-thirds to the increase in the volume of production. He said that he would like to comment a little further on Secretary Wickard's rubber problem. He thought it might be possible to produce rubber syn- thetically at elightly less than 30¢- A men had come in to see him & few days ago who had produced good looking rubber, as far as he could tell, from wood, grain, and coal, and that he could produce it in any volume at 27 $ He said he asked the man if he were same and the man said "yes" he believed he was. 142 14 Secretary Perkins said that her office had given a great deal of attention to the problem of labor supply and believes that by the end of this calendar year there will be a. definite shortage of labor. This subject then involved a general discussion of the labor supply, longer hours, CCC camps, etc. Mr. Walker raised the question as to whether he should put the Post Office on & 48 hour week. He said if he did, it would require legislation and he wondered whether they ought to pay time and a half for anything beyond the 441 hour a week. I said that was a procedent, that I believed the Government should not pay time and 5. helf for any overtime. A. Government employee's day is not over until he finishes his day end he should not be paid for overtime any more than compensatory leave now and then when the work will permit. It was pointed out that many of the Government organizations are unionized and have been able to have legislation fixing their hours of work and provide for overtime pay when they work beyond those hours. The Post Office is one of these, also, the Bureau of Engraving and Printing, and the Govern- ment Printing Office. The President said that he would like to look into the question, but he spparently had no objection to the Post Office going on a 48 hour a week, even though it required legislation. He said he felt that there should be 350 CCC camps, for the purpose of maintaining the forest and fighting forest fires, and he had approved $100,000,000 for these camps. He brought this up because of its bearing on the supply of labor. Mr. McNutt had nothing to report. Mr. Nelson discussed the shortage of copper and said that he would like to bring some old mines back into production. One in the northern part of Arizona required the use of water from one of the Government's dame which might infringe upon the water rights of certain irrigation districts. The President said that he would like to increase the supply if it could be done and asked Mr. Nelson and Mr. Ickee to work it out between them. Mr. Ickes said he was familiar with it and was in agree- sent with Mr. Nelson, MEMORANDUM Re: Telephone conversation between Secretary Morgenthau and George Buffington, January 17. 1942 The Secretary telephoned me this morning to know the date that the Disney film would be ready for release to motion picture theatres, I advised him that In accordance with our agreement with Walt Disney, he would provide the production and 1,000 extra prints on or before February 15. In a telephone conversation with Mr. Disney yesterday ne said be hoped they would be available for distribution during the week prior to February 15. I told the Secretary Mr. Disney planned B preview of the film here in the Treasury February 3. I also told him I thought it highly desirable that some representative of the Treasury see the context of the film before it was released to Technicolor in order that any minor changes might be made without loss of time. This would necessitate eomeone going to California shortly for a day. The Secretary raised the question as to how we know that the film will be shown at all important points as promptly as possible. I told him in a conference with Messrs. Disney and Mollett I had been essured that once the picture was approved by the War Activities Committee, it would be shown in approximately 12,000 key theatrea without delay. At that same conference I asked Mr. Mollett what assurance we had that all the theatres would show it. He stated that the Committee had a regular schedule for exhibition and a method of policing the member theatres to ascertain that the plcture had been shown. Disney also assured me that there would be no trouble with distribution even though there were no effort on the part of the War Activities Committee. As I understand it, a majority of that Committee la composed of independent operatore. The Becretary auggested that I contact the president of the Motion Picture Operators Union early next week request- Ing the cooperation of individual operators to 186 that the picture is running and report to us direct any failure of exhibitors to show the picture promptly and pass it on to other theatres. He emphasized the fact that unless come such measures were taken, we would have failed in our objective. It was auggested that possibly an arrangement might De worked out with the President of the Union to make daily reports direct to us. The Secretary asked that I be ready to report to him on the matter when he returned to Washington on Thursday. Regraded Unclassified 144 -2- On thinking over my talks with Mollett and Disney on this same subject, I question whether we would not be in a safer position by relying upon the assurances we now have for prempt exhibition than might pessibly be the case if we contacted the Union. This effort on our part might be mis- understood and possibly retard the cooperative attitude which we now have on the part of the committee. GB Regraded Unclassified 145 TREASURY DEPARTMENT WASHINGTON JANUARY 17, 1941 DEFENSE SAVINGS STAFF EMOKANDUM TO: MRS. KLOTZ rno.: MR. EUGENE W. SLOAN The following is e very brief resume of instructions 120 questions raised by Secretary Morgenthau in a talephone coversation with me, Saturday, January 17, 1942 at about 11:00 A. M. (1) The Secretary is disappointed in dis lay Ed- vertising matter in retail outlets in the vicinity of his vacation headquerters in Florida. he wants us to work out - lan which can be used on E: test in some selected city whereby stamps will be on sele wherever there is a cash register, with signs prominently die leyed on or near such ceals register, and with one 02" more posters indicating that stemps are on sale right there. He sug- rested that we possibly could work something out with the National Cash Register Company. (2) Several weeks ago in 8 meeting in the Secretary's office, Frank Isbey, State Chairman for Michigan, urged roduction of B flas which could be used by clents which vere participating on E really high-percentage besis in PORDEFENSE BUY Regraded Unclassified 146 - 2 - our Payroll Allotment Plan program. The Secretary asked just where this stands and said that he wants us to stop fooling around and have some flags actually made before he returns. He does not just want simply an approved design, but he wants the actual flags available. (3) The Secretary asked what progress had been made in connection with establishment of Payroll Allotment Plans by newspapers for their own employees. This memorandum is furnished to you at the request of Secretary Morgenthau for preservation in his diary. 147 TREASURY department WASHINGTON DEFENSE SAVINGS STAFF January 17, 1942 MEMORANDUM TO: SECRETARY MORGENTHAU FROM: EUGENE W. SLOAN The following is a brief preliminary report on the instructions given me by telephone this morning. (1) I talked with Sydney Mahan, our Associate In- formation Director, who happens to be in New York this morning, and he will see the National Cash Register people immediately and suggest that perhaps they can help us to work out E. test in their own headquarters, city of Dayton, Ohio. Mr. Mahan will, of course, cooperate with them in preparation of the necessary signs for the cash registers and posters for the retail stores, hotels, barber shops, and other outlets. (2) A design for a fleg based on the Minute Man surrounded by thirteen stars was submitted to Tofessor Odegard recently and he has suggested that a trial be given to the same design with forty-eight stars. Mr. Mahan is of the opinion that the thirteen stars will be better and as instructed I am trying to get this settled immediately so that we can proceed with the purchase of flags and have them available at the earliest opportunity. PORDEFENSE BUY using STATES loves - 148 - 2 - (3) Up to this moment I have been unable to get any definite information as to the success of Mr. Howard Stodghill's work with the newspapers on Payroll Allotment Plans for their own employees. I do know, however, that the larger newspapers are included among the firms which are being solicited in our "over-all" drive for installation of Payroll Allotment Plans throughout the country. A subsequent report giving names of some of the papers and other interesting data will be forwarded to you shortly. P. S. I have just been informed by telephone from New York that the following newspapers definitely have Payroll Allotment Plans installed. 1. New York Times 2. World Telegram 3. Herald Tribune. Regraded Unclassified Ford Motor Bompany PAY ROLL DEDUCTION PLAN FOR PURCHASE OF UNITED STATES DEFENSE SAVINGS BONDS To provide o meons by which Ford Motor Company employees may conveniently purchase, on on installment basis, United States Detense Savings Bonds, Series E, described in the enclosed Government leatlet, the Company will cooperate with and assist employees by moking purchases on their behalf out of funds authorized by employees to be deducted from their wages or solaries, effective January, 1942, in accordance with detoils outlined hereinofter, The Pay Roll Deduction Authorization, Form 282, attached hereto, authorizes deductions from each pay for the purchase of bonds of specified denomination. Employees who desire to join the Plan should fill in and sign the authorization and return it to their foreman within three (3) days. The face of this Authorization must be completely filled in, includ- ing employee's correct name and address, os well as the correct desig- notion (Mr., Miss or Mrs.) for both employee's name and that of the co- owner or beneficiary. 1. The minimum deduction under the plan is $1.00 per week, Larger deductions may be authorized in multiples of $1.00, or for issue price of bond. If deduction connot be mode because amount of pay due is insufficient, then deduction for that pay period will not be made. 2. Bonds will be purchased once each month for those employees whose deductions permit and the bonds sent by registered moil by the agent of the U.S. Treasury Department to the address designated on the authorization. The Company will advise the employee of time pur- chose of the bond is made for his account, and Company should be advised in cose of any error. 3. The authorization may be concelled by the employee at ony time. Accumulated deductions then standing to his credit will be refunded os soon after receipt of notice of concellation as practicable. 4. Employees who desire to withdraw from the Plan, or change the amount of deduction, or moturity volue of bonds to be purchased, must cancel their authorization and may not rejoin the Plan for o period of three months from date of cancellation. Regraded Unclassified 5. Changes in address, or name of co-owner or beneficiary, may be mode of any time by executing a new Payroll Deduction Authorization. 6. No interest will be paid by the Company on amounts deducted and withheld for purchase of bonds. 7. No portial withdrowals may be made from accumulated deductions, nor will loans be made against them. 8. The employee's payroll deduction authorization will continue until concelled or changed, but is automatically cancelled when employee leaves the service of the Company, in which case, it is the employee's obligation to call for and receive the balance in his account, if any, In the event of employee's death the accumulated deductions will be poid to the co-owner or beneficiary. 9 The Company assumes no responsibility under this plan after the bonds have been purchased and paid for and the employee notified of the purchase. It will, however, assist in having errors corrected. Since the Company will advise the employee each time a bond is purchased, no periodic statements will be issued os to deductions made or balance of accounts. 10. Any matters in connection with this Plan are to be taken up with the Pay Roll Department, Gate 2, at the Rouge Plont, or Coshier's Office at other locations. The Plan is subject to revision or discontinuance of the discretion of the Company. Ford MotorBompany December, 1941 Regraded Unclassified FORM 201 - PAY ROLL DEDUCTION AUTHORIZATION FOR UNITED STATES DEFENSE SAVINGS BONDS TYPE ON PRINT INFORMATION PLAINLY) Employee Check which: Co-owner or Beneficiary Mr. Mr. Miss Miss Mrs. FIRST NAME MIDDLE INITIAL LAST NAME: Mrs. FIRST NAME) MIDDLE INITIAL LAST NAME) Mailing Address Address NUMBER AND STREET NUMBER AND STREET (CITY) (STATE) (CITY) (STATE) DEDUCTION FROM EACH PAY $ MATURITY VALUE OF BONDS AUTHORIZED $ (Minimum $1.00 per week) I hereby authorize Ford Motor Company is make deductions from my wages or saiory beginning et once, in the amount indicated above, and each time the amount required for the purchase of bond(s) designated has accumulated to my credit, to purchase and have delivered to me by the U, 5. Treasury Department, United States Defense Savings Bond(s), Series E, with moturity value shown. " is understood that no interest is to be poid by Ford Motor Company on my accumulated deductions and that Ford Motor Company has nn responsibility in respect of the bonds purchased under this plen after they have been purchased for me In the event of my death, Ford Motor Company shall pay to the above designated co-owner or beneficiary the amount et accumulated deductions to my credit which have not been expended for the purchase of bonds. This authorization is to remain in effect until cancelled by me in writing. Date Employee's Signature Regraded Unclassified CANCELLATION OF PREVIOUS AUTHORIZATION I hereby request concellation of my previous Pay Roll Deduction Authorization to be effective with the payroll period ending (date). I AM WITHDRAWING FROM THE PLAN AND REQUEST THAT ANY AMOUNT REMAINING TO MY CREDIT SHALL BE: Check Refunded Used to purchase o bond of $ moturity value Proper and any excess refunded. Blocks I AM CHANGING (PER REVISED AUTHORIZATION): Name of Address of Owner Co-Owner Beneficiary Regular deduction amount Maturity value of bonds to be purchased Date Employee's Signature 150 CUIM NO 14A TREASURY DEPARTMENT - THE POLICIENT WASHINGTON DUE TELEGRAM CHARGE THEASURY DEPARTMENT. APPROPRIATION FOR Official - Expenses of Loans OFFICIAL BUSINESS-GOVERNMENT RATES (The spprepriation from which juvable must lie stargé an - Line) will H. Hays President, Motion Picture Producers and January 17, 1942 Distributors of America, Inc. 28 Nest with Street, New York NY ( at the Treasury feel we have lost a real friend end helper in Carole Lombard million stop on active service selling Defenee Tlands in Indianapolis end cold two dollars the - worth for her country stop She was always glad to remond to any call the made upon her and her spirit of service 1/88 an example and en Inspiration Government to sary others stop Her loss must be an 1rre, Incemble one to your colleagues and to the profession which she honored. Henry Morgenthau, Jr. Secretary of the Treasury. FK/hkb e Visa MacDonald, Mr. Shaeffer, and Room 463 Regraded Unclassified TREASURY DEPARTMENT 151 INTER-OFFICE COMMUNICATION DATE January 17, 1942. TO Secretary Morgenthau FROM E. H. Foley, Jr. For your information, my opinion was asked by the Defense Savings Staff as to the enforceability as a contract of the form of pledge for the periodic purchase of defense bonds. In my opinion this form of pledge is not enforceable as B. contract or otherwise. A telegram was sent at the suggestion of Peter H. Odegard to allay doubts which had been raised by lawyers in the Portland, Oregon office of the Defense Savings Staff as to the legal effect of the pledge. A copy of the telegram as attached. 9.1.7L Enolosure. Regraded Unclassified 152 P Y January 17, 1942 10:45 a.m. Ray Conway State Administrator Defense Savings Staff 720-23 Bedell Bldg. Portland, Oregon In reply to your inquiry concerning form of pledge for regular investment in defense savings bonds it is my opinion that such form is not a pledge enforceable as a contract or otherwise by the United States against the pledgor for the amount of the pledge indicated thereon but is merely & promise without legal consideration to purchase periodically defense bonds 80 long as pledgor is financially able to do so. I have given 8. formal opinion to the Secretary of the Treasury to this effect. E.H. FOLEY, JR. General Counsel Treasury Department. Regraded Unclassified TREASURY DEPARTMENT 152 INTER OFFICE COMMUNICATION DATE Jenuary 17, 1042 TO Secretary Morgenthau FROM Mr. Heas DA Number of Firms and Employees Covered by Payroll Sevings Plane 1. Dr. January 10, 1942, payroll sevings nlans were in effect In 9,939 firms, according to recorts from the Defense Savings Staff's State Aministrators in 45 States and the District of Columbia. The number of employees covered wes 10,306,495. A breaklown of these figures by States shoetre in the attached table. 2. The figures shown in the table are known to be incomplete. They do not include State, county end local governmental units in some States because of a misunderstanding on tre -ant of come State Administrators. The Defense Savings Staff sent CA instruction tele reo to the State Ad- ministrators askin that all such units be included, nowever, end they vill amear in the totals sub- mitted e.2 of today. 3. No estisfectory detis were received from the State Alministratore in Delaware, Indiane, Louisions and Tennessee, still figures for these States could not be included in the tsble. The Defense Savings Staff has sent follow-up tele PAGE to these Administrators, nowever, em expects to receive date for these States early next week. Attachment Regraded Unclassified 154 Number of Firms and Number of Employees Perticipating in Payroll Savings Plan January 10, 1942 As reported by the Defense Savings Staff's State administrators : Number : Number State : of : of # firms : employees Alaballe 41 44.347 Arizona 30 11,851 Arkansse 86 11,848 Cylifornia 1203 716,985 Solorado 120 68,212 Comections 296 258,666 -eleware . - district of Columbia 29 26,077 /loria 138 31,960 aeorgin 233 139,425 84 15,406 Illinois 69 09,523 Invians * 4) Iowa 12 18,725 214 80,065 Centuricy 77 50,000 Lovisians e o Laine 4F 52,273 *ryland 25 115,009 430 419,573 adeation 524 1,173,191 simeste 450 1.9,732 lsciasipol 65 16,855 . isecuri 520 228,523 . entena 42 24,207 vobrassa 30 98,500 92 7.436 every Remehire 24 29,675 (ev Jersey 308 544,019 wew wexico +0 7,101 were York 2,649 3,060,640 dorth Carolina 89 115,240 Xerta Dakota 44 2,329 -10 267 770,000 140 63,354 Opegon D 65,253 Fonnaylvania 473 1,011,540 funce Island 121 120,890 ENGLISH Carolina 77 35,862 Suite Dakota 191 10,306 Travelsee - # Takné 202 105,684 "tan 2 23,337 termont 79 25,463 Virginia 224 168,090 823 126,921 dest Virginia 3 2,775 94 150,390 & 8,837 1,939 10,308,495 = 119 Secretary of the Treasury, Attaion of Resenro.. ned Statistics. Jajuary 17, 1942 y Data at available. Regraded Unclassified 150 FIELD ORGANIZATION News Letter HEY DEFENSE SAVINGS STAFF @BEASURY DEPARTMENT, WASHINGTON, D. C. JANUARY 17, 1942 NUMBER 35 Come on- LET'S ALL TAKE A PLEDGE! The Committee of Employees of Philadelphia Industries sponsored the above appeal for universal participation in the Defense Savings Bond cam- paign to protect the freedom we cherish. A country-wide pledge campaign will be launched by the Treasury in February. Regraded Unclassified New Letter Negus Letter Your Dime's In The Army Now "THE BUDGET AHEAD" tot M - From Pours : i - ful Sunday, Jenuary 4, 1942, SECRETARY MORGENTHAU broadoast & challenging 2033460 on "The Job Ahead" (quoted on Pages 3 and 4 of News Letter for Janu- any 10). Service - The next day, PRESIDENT RIOSEVELT brought home to the imentigan public an outline of what the job will meen this coming year in dollars and cents, LON 50f Days RATIONE - WILL A - Buy - The following excerpts suggest the part Defense Bonds play in the budget problems "We must provide the funds to man and equip our fighting forces, We must provide the funds for the organisation of our resources. le net provide the funds to continue our role as an Arsenal of Democracy "Nothing short of a maximum will suffice. I cannot predict ulti- address the mate costa because I cannot predict the changing fortunes of war. I COMPLETE can only any that we are determined to pay whatever price we must to BUTE die - preserve our way of life. - Request. "Total war expenditures are now running at 5. rate of two billion By Jest. dollars a month and may surpass five billion dollars a month during the fiscal year 1943. These estimates reflect our determination to - Ordnence Private Henry Morgenthau Tardley devote at least one-half of our national production to the war effort. ta the Baltimore Morning Sun, January 8, 1942. "We all know that the war will bring hardships and require adjust- IR THIS ISSUE ment, LET'S ALL Take A. Fledge - Page 1 "I appeal for the voluntary co-operation of the consumer In our PRESIDENT Receivelt Outlines the Budget - Page a National effort. Restraint in consumption, especially of scarce prod- FROM The Field - Pages 4, 5 and 6 uote, may mules necessary fewer compulsory measures, AMERICANS All - Pages 7 and B "Hoarding ahould be encouraged In only coe field, that of LABOR Speaks - Page 8 and 9 Defense Savings Bonds." SALES PROMOTIONS From Here And There - Pages 9 and 10 HATS Off To Page 10 Franklin D. Roomevelt PATRIOTS From Eight to Eighty - Pages 11, 12 and 13 EDITORIALLY Spenking - Page 13 including 5, 1942- PAY BOLL Savings - Pnges 14 and 15 TO THE LADIES - Pages 16 and 17 SPECIAL Organizations Page 18 ON The Air - Fage 19 PICTURES or The Week Fage 20 Il N News Letter News Letter Your Dime's In The Army Now AMEADE A 104 From DE APRIL 5 I Sunday, January 4, 1942, SECRETARY MORGENTINAU brondcast 5 challenging 6 - on "The Job Ahead" (quated on Pages 3 and 4 of News Letter for Janu- any 10). Defense to - The next day, PRESIDENT ROOSEVELT brought home to the American public an outline of what the job will sean this coming year in dollars and cento, ******* 104. Days MATURE - WILL A Boy 50F The following excerpts suggest the part Defense Bonds play in the budget problems É "We must provide the funds to nan and equip our fighting forces. United - mot provide the funds for the organization of our resources. - the nust provide the funds to continue our role as an Arsenal of Democracy EXAMP "Nothing short of a maximum will suffice. I cannot predict ulti- thanks nate costs because I cannot predict the changing fortunes of war. I For COMPLETE % VAN only say that we are determined to pay whatever price wa must to RMPLE on - Only preserve our way of life. Finance uné 1000 New Bree To (m) "Total war expenditures are now running at a rate of two billion By dollars a month and may surpass five billion dollars . month during Clur fiscal year 1943, These estimates reflect our determination to - - Ordnance Private Hanry Morgenthau Tardley davots at least one-half of our national production to the war effort. la the Baltimore Morning Sun, January 8, 1942. "We all know that the was will bring hardships and require adjust- IN THIS ISSUE ment LET'S ALL Take A Pledge - Page 1 "I appeal for the voluntary co-operation of the consumer in our PRESIDENT Roosevelt Outlinee the Budget - Page 3 National effort. Restraint in consumption, especially of scarce prod- FROM The Field - Pages 4, 5 and 6 Vota, may make necessary fewer compulsory measures, AMERICANS All - Pages 7 and B "Hoarding should be encouraged In only one field, that of LABOR Speaks - Fages 8 and 9 Defense Savings Bonds. SALES PROMOTIONS From Here And There - Pages 9 and 10 RATS Off To - Page 10 -Pranklin D. Roosevelt PATRIOTS From Eight to Eighty - Pages 11, 12 and 12 EDITORIALLY Speaking - Page 13 lawy 5, 1942. PAY ROLL Savings - Pages 14 and 15 TO THE LADIES - Pages 15 and 17 SPECIAL Orgenizations - Page 18 ON The Air - Pnge 19 PICTURES or The Vee'c - Page 20 M m News Letter News Letter FROM THE FIBLD 720M THE FIELD Walser D. Bellingrath, Mobile, Ala. business man, appointed " chairman Illinois (Continued) of - special committee to promote sale of bonds and stamps mmong employers and employees engaged in the bottling and distribution of soft beverages. Betty Becketsin (in the picture at the said be could carry "the gospel of Defense Bonde" into the most remose right) of the Journal-Tranecript, Peorin, tions of the county, III., welling Defanes Stamps every day 0X- cept Sundays and holidays. San Francisco, Calif. James 0, State Administrator for Northern California, Postmaster John J. McCarthy of Rock called together at the Palace Hotel, Deces- Island, Ill., reports Defense Stamp sales bar 30, the committee of 60 who have assumed average $1,500 daily. responsibility for the Defense Savings Prom UY U.S. DEFER gran in the northern part of this Pacific The vomen's organization of the Indians state, Defense Savings Staff held its first state- wide meeting at the Claypool Hotel in *I thought the stamp and bond windows Indianapolis, Jan. 8. Promotional plans were ware busy prior to Christmas," Postmaster outlined to the more than 100 delegates by Vs. V. Eeagan, Jr. of the James E, Vilson of Secramento declared, Chairman Mrs. Oscar A. Ahlgren of Whiting. treasury Dept.: Administrator *but all day yesterday (Jan. 3) ve bad long lines of persons waiting to buy shares in Ottumes, Iowa (population 28,057) has Sayth; Chairman Edward E. Bel- ler; Co-Chairass Fred 1. the defense of their country." net a goal of at least $500 in Defense Stamps to be sold every day. Viskatt. In Freeno, the Wine Institute has PAY announced that American wine growere have At the Iova State Committee meeting in started an "Invest for Flotory" campaign. Burlington on January 6, farmers-who do not have regular incomes out of which to make Defense Bond sales in Denver, Colo. lesped to $3,705,425. in December, questic purchases of bonds-were urged to set maide a certain plot of as increase of 323 par cent over November sales, a total which State Adain- ground and use the crops raised thereon to buy bends, The same plan could be istrator Nicholas declared to be even greater than he had expected. applied to chickene and livestock. Defense Bonde went on sale in Waterbury, Conn. schools Monday, Jan, 13. In one day, 20 large Baltimore, MA. firms, representing 40,000 workers. 18,000 handbille, explaining the method of purchasing bonds, have been dis- agreed to install pay roll savings plans for the purchase of Defense Bonder tributed under the supervision of Superintendent Thomas J. Condon. "Minute Men® met January 7 in Elke Home to receive instructions for Defense the Stamps between December 5 and January 9, with Billy Burton heading Sewsboys of the Eventing Star, Washington, D. for wold 193,000 ten-cent canvassing 40,000 workers in New Bedford, Have. relative to pay roll asvings plane, honor roll. record 4,684 stamps, Missouri, first state to be organized for the sale of Defense securities, In Georgia. school children by the hundrede are furegoing the lollipup* is holding a series of county meetings, January 1-16, where members of the and bilck-knacks they usually buy and doing their nickels and dimes for Defense Savings Staff and county agents of the Department of Agriculture will Defense Stamps, 20-operate en plane for bringing the Bond program into fare homes. Defense Bond Veek la being observed in Springfield and Central Illinois. Bernalillo County, N, M. has set 4. Defense Bond goal of $2,400,000 for Jan. 11-18, with A goal of $500,000 set for the seven days' drive, 1942, recently announced County Chairman Arthur Prager. State *Ve're digging in," said e. Defense spokesman in 13 Vith all committees named, an all-out Defense Bond drive got under vez Street stores made lisit purchases of $50,000; Chicago, *We as January 5 in Bayonne, N, J. New and Gentile, Protestant and Catholic, every DOB dedicating that ourselves to the task of turning dollare Late vesy- are race, creed and religion, white and black. - . have joined in the preserve will sameb Bitleriam forever." *100 of democratic ideals and the defent of dictatorships." - B - 4 Regraded Unclassified News Letter News Letter FROM THE FIRLD AMERICANS ALL All-out sobilisation of dollars and dises for #ictory was ordered DO New Tear's Day in Rochester, L I. New that America La in World War II, all the way, the universality of our racial heritage becomes more than ever significant, A. bargain-counter rush at stores in New York City witnessed the mis of at lanet $468,701 in bonds and stamps the first four days after New Tear's, From Plymouth Rock to Ellis Island, "Americana" have come from the four quarters of the globe, and in this great national emergency they are all be- Between November 4. and December 29, employees of the Mohawk Carpel bind the Defense Savings Program for victory. Mills, Ameterdem, N. I., purchased $216,175 in Defense Bonds, Reports from "Our Foreigners" are legion - the following only scraton With the hearty endorsement of Archbishop Schrembe, Catholic schools the surface: in the Cleveland, Ohio discese opened an active Defense Bond campaign After Christmas. In the state-wide rally at Cleveland, January 6, representatives Idun Lodge, Sona of Norway, Madison, Wis., Votes to purchase $750 in from all branches of community life vied with each other in pledges for V. S. Defense Bonds. intensive work. The Mungarian Women's Reformed Stick Benefit Society, South Band, Ind., On December 29, with two days to 60, Spartanburg, S. C. paseed the $1,000,000 Defense Bond and Stamp goal set for 1941. has appropriated $300 of its funds for the purchase of Defense Bonds. A. Memphis, Tenn. woman recently was a $25 bond for the best easy on *Viv I Should Buy Defense Bonds." Ber essay began; Unina 53, Polish National Alliance, Schenectaty, N. Y.) already Holde more than $12,000 in Defense Bonds. :1 as selfish. I am lasy. I an intolerant. Therefore, I should buy U. S. Defense Bonds.* It ended: "So what? In any other Members of the St. George Greek comunity in Springfield, Mass., I'M- cently subscribed to more than $3,000 worth of Defense Savings system of government, I'd most likely be liquidated as non-pro- Bonds in ten days. ductive and non-essential. In buying bonds, I an justifying my Today!* existence and assuring myself of e world to live in. Any Bonde The Lithuanian Citizens political club of Waterbury, Com., has voted a third $10,000 Defense Bond. 11a Christmas holiday dance 10 Defense Stamps. The Boys' X Club of Mabton, Wash. High School devoted the proceede of In Cincinnati, Ohio, German-spoaking members of the American Citizens League helped raise $800 for Defense Bonde in a fortnight. Follow-up. Bageratown, Md. not e goal of $35,000 in a week's special campaign to buy Defense Bonde and Stamps. (See page 2, News Letter of Jan. 31, George's Lotge 66, Croatian Fraternal Union, Youngstown, one, 2.) The eights were set too lov. At the and of five days, sales had reach- votes & thousand-doller subscription to Defense Bonds. ed $188,000. One man bought $1,300 in stamps and then took a day off to pasts them in hie book. At the end of the campaign week, salse for Weshing- The Italian Workmen's Club, Maddeon, Ris., announces through its too County amounted so $210,503 in Stamps and $236,212 in Bonds. November President, Theodore Matranga, a $1,000 purchase. "No want bond figure for the county was $30,000. President Roosevelt to know that we are behind his program 100%," said Matranga, Many of the club's membership have the Burlington Teath Council under the heading of Iowa, This should have Correction. Have Letter No. 32 for December 27 carried a atory about relatives in Italy, but they want the C. S. to crush the Axis powers. been Burlington, Farmont. liarry J. French, past communder of the sixth district of the American the Fermont News Letter for January a carries as its alogan a. quote Legion, Sacramento, Cellf., cald January 3, that "Japanese real- denta of the Florin district are participating wholeheartedly in Sice from the recent editorial in Life by Heary R. Luce) the Defense Savings Program." "Are ve straining every last nerve so ... that help, area, material reach our defenders as 8008 BE possible? If In The Dalles, Ore., the postmaster apent the afternoon counting 5600 they die WILL THEY DIE TEROUGH ANT FAULT OF CURST* pennise for Defense Bonds turned in by the baby daughter of a Jananese restaurant keeper. - 6 - 7 - Regraded Unclassified News Letter News Letter AMERICANS ALL LABOR SPEAKS (Continued) (Continued) Behdan Chmelnicky Branch No. 137, Ukranian National Association, One hundred and to employees of the AMERICAN VELVET COMPANY, New London, West Easton, Pa., voted $300 In Deferme Buile and allegiance com., have bought $6,300 of Defense Bonds. to the Government in all possible ways. LOCAL 882 OF THE UNITED AUTO WORKERS (CIO) have asked the Atlanta, Da. Members of the Syrian-Amorican Association and its Ladies Auxiliary, plant of the Ford Motor Company to devote all their wages, in excess of the 5- Fall River, Mann., pledged a $10,000 purchase. day week, to the purchase of Defense Sonds and Stamps. In Gary, Ind., representatives of five Agumenten groups purchased Hore than 200 union minore in the SAND COULEE-STOCKETT district of Mont ana $7,000 in Defense Bonds. voted Lo donate 4 day's pay to the Government, in addition to pledging regular purchases of bonds until the end of the war. Mass purchase of U. 3. Defense Bonde to a total of $38,000 was Made one night in late December by Italian, Polish, and Jewish real- In announcing a recent purchase of $1,000,000 worth of Defense Bonda, denta of Jersey City. Daniel J. Tobin, president of the INTERNATIONAL BROTHERHOOD OF TRANSTERS (AFL), said the union would continue to buy bonds at the rate of $2,000,000 yearly as Proceeds from the ennual ball of the United Irish Counties Associa- long as the was lasts. tion, New York City, are being devoted to the purchase of De- ferse Bonds, as announced by John F. Sheehan, Chairman of the A goal of E $200,000 banber every quarter of 19/2 has been set by the 7,000 Arrangement Committee. sumbers of the INTERNATIONAL UNION OF MINE, MILL & SMELTER WORKERS (cro) in the Riminghan-Bessemer area of Alabams. St. Michael's Russian Denefit Society, Woonsocket, R. I., has voted & purchase of $2,000 in Defense Bonds. Members of the Sarbian Lodge, No. 129, of East Moline, nl., have The Navy looks on in Miami, Fla., pledged to buy at least $8,000 in Defense Bonds. while PLUMBERS UNION LOCAL NO. 519 gives concrete proof of its pledge to "The enemies of America have counted on the varied social origins of support that service by buying $10,000 our people to bring division and disaster in our war effort. But in Defense Bonde. states, brings greater strength." they are fooled. Our union of marry races, like our union of many Officers and grievance committee members of CIO STEEL WORKERS LOCAL 1757 Nows, Kenosha, Wisconsin, December 30, 1941. of Donora, Fa. will be paid in Defense Stampe instead of cash "for the duration of the war," LABOR SPEAKS Sales Promotions From Here and There Over the Country The INTERNATIONAL UNION OF BRICKLAYERS, MASONS AND PLASTERERS OF AMERICA AS Providence, R. 1., a bevy of skating stars from the show "Icecapades" (AFL) of Washington, D. C. has purchased $150,000 of Defense Bonds for 1942, its lured passersby to newsboys selling stamps at the city's Defense Staff headquar- Legal limit under Government regulations. A like amount was purchased last year. tere, "The Little House on the Mall." Tenae ability. Bonds and urges each of its 1,200 members to buy to the limit purchase of their LOS ANGELES TYPOGRAPHICAL UNION NO. 174 has voted a $10,000 of De- At Portland, Ore., Lobo, Junior and Queenie, trained sheep dogs, known in the show-morld as the "Pard" dogo, added their "yips" in a Bond Drive, which translated by Ray Courtright, their trainer, meant they wented their weekly De- feture Savings Stamps, They paid $ visit to Pioneer post office and other places The 600 members of the DENVER & RIO GRANDE WESTERN, with in Salt Lake where Defense Savings Bonds and Stampe were on sale, almost City, Utah, participating in regular Defense Bond purchases, racially shops represent as many countries as did the Langus of National J. H. Welsenberger, Dallas, Tex. realtor, challenged 100 other Dallas busi- nees - Le match $5,000 he intends to put in Defense Bonds. He will raise his ant.e to $10,000 is agreeable to the others. - 8 - - 9 - News Letter News Letter LABOR SPEAKS HORE AND THERE WITH PATHIOTS FROM EIGHT TO MIGHTT Sales Promotions (Continued) in Charlotte, B. O., Simpson Ivy Brown, Jr., 10-year-old schoolboy, wwo. A prize contest on "Why Ve Should Buy United States Savings Bonde for De- Sam Venture, propristor of Oak Lawn Village, swanky Dallas restaurant, Pay twone." Simpson composed & noble little acceptance speech which concluded - the following ad in Dallas "In accepting this sift, 1 feel that it is 6. victory vos for our "Effective et noon Thursday, December 11, and until America school and not for as. I call it A. victory because 10 shows that and her Allies have won complete victory, all patrons of -- children are 100 percent behind the defense program, and that Date Lawn Village will receive their change in United States ve want to do our part to exve our country We shall look Bavings Stamps." beck to this day as a aceue of patriotic enjoyment, when the los- sons of democracy are weening more and more le libe Negro." America's Vinute Man No. 1 Mrs. Margaret Providable of Gary, Ind. received " the first nove from ner son Albert, on duty in Hawaii, - not . letter, but two Defense Bonde, Dorothy Lamour, famous screen star, sailed on December 20, sans song and sarong, 1a on a coast-to- coast tour selling Defense Savings Bonda Anrious to do her daty, Mrs. Nary Carolea of Carnagie, Pa., vas con- and Stamps and otherwise promoting Uncle rused by the warning on e. franked anvelope - *Official Business. Penalty Sam's gigantic taak of financing the cost for private use $300.* As evidence of her good intentions, she forwarded of the war. $5 to the local Collector of Internal Revenue. Voon it vos explained that she vas under an penelty, Mrs. Earolea delightedly put her $6 down on the Speaking in theatres, and at Defense installments toward her second $25 Defense Bond. rallies and wherever ahe is sent, Mas Law mour has given her month's vacation to the C *My Dad always varned se to save for 6 rainy day," said E, C, Smith, 67, task of aiding her nation at war, and all of Dallas, Texas, as be marched into the Times-Herald office with 170 half= at her own expense. She La shown in the dollars bulging his pockets. "Durned If It didn't start raining the other picture at the Left, selling Defense day - at Pearl Harbor," be added, putting the money down on the counter for Stamps at "Victory House", Pershing Square, Defense Bonde and Stamps. Los Angeles. *Semember Pearl Harbor" is both 4. memory and a slogan for Patricia McCarthy, recently of Hawaii, now attending St. Mary's College in South Rend, Ind. She has just bought her first Defense Bond, which will help keep her father, . lieutenant-colonel et Fort Kenehamaha, supplied with the einews of war, HATS CFF TO- 5, Juran of Bouston, Texas, is 79 years old, but he is serving the nation. buy day since December 15, be has started out at 9 c'clock in the morning Rodney Brook, 9, of Syracuse, N. 1., who asked that $200 received for in- Juries in an automobile accident be used to purchase Defense Bonds. A native of Roumania, Kr. Juran has already sold $700 worth of stamps; be is to sell Defense Stamps to "customer" in the street or in department stores. driving toward e. $5,000 goal. counter for ser bonda $1,700 - the roward of 50 years' savings. Bootblack Tony da Grossa of Philadelphia, Pt., who plunked down on the "The people of the country can help win this vaz in their own home lown by Duying Defense Savings Bonde. Every one who buys A. 3ond has a finger 00 their daughter had been "skipping" movies and walking to and from school-to exte The parents of Betty Jeanne Myers, Indianapolis, Ind., learned recently my the trigger." This VAR the pointed statement of Gunner's Mate Eugene Enight. one of the heroes of December ? at Pearl Harbor, as be was convaleacing in money for an $18.75 bord, the Mare Island Hospital. Picture on the following page showe Enight talk- Ang to Lieut. Comár, L. La Stanley, Sary doctor, and Havy suree Fancy Lowe. who live near Looti, Kanaas. flier loat In the Philippines, will be invested in Defense Bonds by his parents $12,000 proceeds of the life insurance policies of Morgan McCowan, an Amt *Bonde are the bullets the people of the United States are furnishing for the gune you fallows manned at Pearl Farbor and other fronts," Dr. Stanley - - 11 - Neget Letter News Letter PATRIOTS FROM BIGHT TO BIGHTY PATRIOTS FROM EIGHT TO RIGHT (Continued) (Continued) told the Havy hero. We're proud of what you fellows did that Sunday morn- 108, but Americane don't just say things with words alene-ve BUY BONDS AND Unable to enlist in the Army because of His age, 46, former heavyweight MORE BONDS. for that Le the Ammunition with which we will win," Dr, Stanley chempion Jack Dempsey is toesing his brawn into the Defense Bond campaign: eaid, he bat purchased $100,000 worth to date. The National Women's Christian Temperance Union has announced its ver- Kenner Nelenn, Wheeling, V. Ya, bond (Lge "logan--"Buy a Bond instead of a bottle." dealer, has devised 6. plan for voluntary Con- EDITORIALLY SPEAKING tributions to the var effort, and 6 bill out- crising the program has Defense Savings Bonds are the chempest insurance against Looting already been introduced and murder by the firing equada of Barope and Avia." Merald Reve, in the House of Repre- sentatives, Passaic, N. J. Unless the enemy 1a defested the collapee of democracy in the Under the plan, the Pearl flarbor Hero Urges Folice At Blose To Buy Bonds United States 1s inevitable." Herald, Spartanburg, 5, C. government would sell special stamps, with the No one can visualize a hundred billion dollars. Such . sum of proceede to be used for building of war fighting equipment for the Aray and Savy, The stamps would soney done not exist in cash. Tet that Le what ve are to spend the sext two be in denominations of from one cent to $5, The stamps would have no value years on a gigentic Victory Pro- for postage or other purposes other than to provide e. means for persons desir- unl - Call, Woopsocket, Ing to make such voluntary contributions for the var with the assurance that i. I, *Ne says he have to sake unders from us etr nore--he brught their money will be used for specific purposes which the dooor intende. They It is not only patri- Defense Bond and that him would be used the same AT Christmas seals. atio to be thrifty these days but stacensider." also . demonstration of what M There would be 14 different stamps to the series. Each would carry en Howe, 'the Sege of Potato Hill,' sugraving of the type of war material the donor sought to contribute, each used to call 'intelligent selfish- APPLIC n.e battleships, heavy cruisers, light cruisers, aircraft carriers, destroyers, GAMP Missoulian. Missoula, minelayars, submarine chasers, beavy tanks, light tanks, heavy bombers, light Mont. Sumbers, interceptors and pursuit planes and anti-aircraft batteries. in This var in costing - Little Inthryn Sue Tago and her big sister, 8740 . second. Help Uncle San men au Batty Ann. 7, had just two cente between them after with his bille." - Post, turning over their savings of two years to Uncle Cincinnati, Ohio. San for Defense Stamps. (See picture at the left.) "Encouraging as the increased Mrs. Elizabeth Xern. one of two Ohio sisters desand for Defense Savings Bonds to receive . "vindfall" of $1,000 from a. missing and Stamps throughout the nation heir, has expressed her intention of buying Defense has been since the Japanese boob- Bonde with the unespected funds. Mrs. Kern and her ad Envall, the real job of selling sister were found through "The Court of Kissing the necessary billions of war Copyrigal 194) by NA Survice, tan - Heirs" program over CBS, The money is to came from bonds Lo the public 19 only just the estate of a brother who died eventy-three years starting.' -- Times, Los Angeles, Calif, ago in World Var I. Down To Their Last if every citizen in the nation were to invest a dime . day in VAT envings stamps the smount of money thus made Le fight our fore would be Two Cental terrific." - Journal-Trenscript, Pacria, III, 12 13 New Letter News Letter PAY BULL SAVINGS PAT BOLL SAVINGS Nation's Industrial Plants low Bagland States (Continued) Preliminary reports from Administratore Ln 31 states show that 6,690 in Goodyear Fabric Company, Saith Brotbers Brewary, Metropolitan Life and corporations, involving approximately 7,300,000 employees, have Installed Insurance Company, Fairpoint Corporation, Continental Screw Company, Pro- Defense Pay Bell Sevings plans. dential Life Insurance Company, and the Acushnet Company, all of New Barta ford, Mass. Flants with an employee list totailing more than 100,000, such as United States Steel, down to the smaller industries with A roster of 25 workers, are The Winchester Repeating Area Company of Sev Haven, Conn.: the Scale reporting installation of the plan with systematic and regular deductions reag- Division of Fairbanks Morse à Company of Burlington, Vt.: and the Saith ing as high as ten percent, In some cases, an even higher percentage of DAV- Paper Company of Pittafield, Mass. ingo has been reported. No plant is too large nor too small for the insuguration of this simple yet business-like method of purchasing Defense Bonds and Stamps, Middle States - Civilian Employees in the Brooklyn Savy Tard; Submarine Base at New London, Conn.1 Naval Ordnance Plant at Baldwin, L. T.: 1,500 The picture at the left shows one fires in New York City with 3,500,000 employees; Western Union Telegraph of Uncle Sam's workers behind the lines, Company with 52,000 employees: United States Steel Corporation: 200 firms who has just converted his Stamps into in Philadelphia; R. C. A. Plant at Camden, 8, J. with 8,500 employees; a $25 Defense Bond. His name 15 J. L. Carnagie-Illinois Steel Company at Pittsburgh; American Steel & Wire Coe- Rache, and he is a skilled un chine pany: Southern Wheel & Foundry Company: Acheson Manufacturing Company: operator at the Northern Pump Company Bethlehem Steel Company: Union Reilroad Company: American Chais é Cable in Minneapolis, Minn. Eighty-seven per- Company: and the Jones & Laughlin Steel Company. cent of the employees of this company Midwestern States - Standard 011 Company of Indiana: Ohio Was Paper have pledged voluntary pay deductions in the Defense Savings Pay Roll plan Company: 1,500 members Ladies Garment Workers, Milwaukee: County Employees permitting Uncle Sam to tap their THE at Flint, Mich.: The G. Hetlman Brewing Company: Fairbanks-Moree Company, Rockford, I11.; 500,000 employees of 476 Chicago firms: National Cash Regis rolls to the tune of approximately Kinnespolis, Mim. $17,500 per week, or $910,000 annually. ter Company, Dayton, Ohio; Mabley & Carew, Cincianati; Thompson Products Company, Cleveland; Brush-Moore Sewspapers of Salem, Ohio; Cincinnati Mill- Officials of the company are purchasing ing Machine Company: Standard oil Company ef Chio; Warser & Swasey, Cleve- bonds totalling some $1,000,000 a year. land; Hall China Company, Sent Liverpool, Ohio: Keystone Steel & Wire Com- Recent Installations of Pay Ro11 Savings Plane pany, Peoria, Ill.; Wisconsin Telephone Company, Milwaukee; Ragle-Picher Lead Company, Cincinnati: Challenge Machinery Company, Grand Rapids, Mich.: Reports coming Into Washington from all sections of the country Include Michigan Bell Telephone Company: Butterfield Theatree and the Macklin Com- these recent Installations: pany, of Jackson, Mich,: Clark Equipment Company and American Marsh Pump Company and the Consumer Power Company of Battle Creek, Mich. Connecticut Brues Company, blake & Johnson, Bristol Company, Chase Brass & Copper Compary, New England Stutes - The Fullor Brush Company, Hartford, Commin The weritan Western States - 15,000 employees of fires in Pueblo, Colorado: Machine Light 6 Tower Company, Eastern Color Printing Company, E.J. Manville Bedmond Mills, Redmond, Ore.: Alex Johnson Hotel, Rapid City, S. D.; 100 Company, Thinsheet Metals Company, Patent Button Waterbury Buckie films In Stoux Falls, 5. D.; Willamette Valley Lumber Company, Sales, Dre. Waterbury Rolling Mills, Ine., Waterbury Republican & American, Waterbury Company, Tool Company, Waterbury Clock Company, Waterbury Farrell Foundry Company, & Machine Southern States - Standard Enitting Mills, Knorville, Tenn.: Norfolk Company, Rowbolton Machine Company, Somere Brans Company, all of Waterbury, Conn. . Vestern Railway, Roanoke, Va.: Florida Pulp & Faper Company, Veis-Fricker Lumber Company and Neyport Industries, Inc., of Pensacola, Fla.: Gulf Oil Arodal pany, HILL Plating Company, Bitter Printing Company, Kenler & Inc., Lener Bunker Company, American Sheet Metal Works, Barlow Bros. Company, Benrus Watch Com- Mao in Waterbury: the Cyantmid and Chemical American Company, Port Arthur, Tax,: end Dallas Retail States. In co-operation with the Defense Savings Staff of Maryland, the Glann Superior Foundry, Manifacturere Finiabing Company, Mattatuk Company, Long, Company, L. Martin Company, maker of the famous Martin bomber, 18 announcing the Company, Mattreas Company, Southern Now England Ice Company, Manufacturing Manufacturing introduction of the pay roll sevings eystem in Its plant which now has Wateroury Waterbury Steel Ball Surrugated Company. Stock Company, Waterbury Paper Box Valley Company, and the more than 30,000 employees. - 14 - - 15 - News Letter News Letter TO THE LADIES TO THE LADISS State Bews Letters From the WASHINGTON STATE NEWS LETTER Mary States now have their own Defense Savings News Letters, some of which Include mean's pages. A few of these local women's pages are following the Pat- À page titled "To The Ladies," written by Marie Young, a member of the wherein the National Nomen's Division trins to- time === by the "To The Ladles" column in the FIELD ORGANIZATION NEW3 LETTER, State Advisory Committee 20 Defense Savings and president of the Washington State Federation of Business and Professional Accen's Clubs, is a feature of the NOME Latter published by the Defense Savinga of Wushington. 1. Cive State Defense Sevings Committee Women information on what the National Komen's Division to doing. In the January lasue of this NEWS LETTER, Miss Young reportai 2, Give illustrations of how "The Ladies Are Lending," and how varings "A Defense Bond for Every Business Woman," has been voted by Buai- State and local committees are organizing Defense Bond and Stemp programs espac- ness and Professional Women's Clubs throughout Washington, and the fally designed to interest women. (logan is being translated into purchases of Defense Bonds and Stampar Other organizations night well artopt. their alogan "Every Club Vionan 3. Give credit to State and local committees and to individual women who For National Defense & U. 3. Defense Bond for Every Club Woman." are taking an active part in the Defense Savings Program. "ATTENTION: ALL WOMEN MEMBERS IF COUNTY DEFENSE COMMITTEES Some State News Letters "){ere in & plan to stimilate the sale of Defense Stampe Among Women! From the Arkansas OFFICIAL BULLETIN "Pirst: Secure a map of every community in your munty and A "Representatives of Women's groupe through list of all Women's organisations, fraternal, church, civic, cultural, out the State have formulated a State Council educational, patriotic, and otherwise. Divide the map into aections. of Women's organizations within the Arkansas De- fense Savings Staff, to promote the sale of "Second: Call a general seeting assing the leader of each Bonds and Stampe in every Arkansas county, the Organization or her representative to attend. R. V. Hall of Texarkana, Chairman of the Women's Division, was named Chairman of the bew Council, "Third: Organize this group Into # Nomeo's Defense Club, and "Under the plans of the Council, verious supply literature on women's par- presidents of Women's organizations will estab- ticipation in the Defense Savings lian local organizations in the State's 75 Program, including "We Gale Have counties and will name county chairmen." To Stick Together," "Madame Chair- man," and "Mrs. Brown Buys a. Bond." Offering a tentative program, Mrs. Hall recomended: "Fourth: Urge that each club represented dedicate one meeting to 1, An educational program to combat inflation a thorough study and discussion of through the purchase of Defense Savings Bond» the Defense Savings Program. and Stamps. 2. A broad program to encourage systematic "Firth: Urge each club to hold sectional meetings to which each no- saving curities. through regular purchase of sevings (b- ber will be asked to bring as her 3. That Borde and Stamps be given instead of guest one or more friends who are not nsual presents and primes. members. At this meeting, emphasize 4. That women accept stamps in lieu of change. the importance of women's united sup- 5. That women throughout the State immediately port. of the Defense Savings crusade. embark on A "word of south" campaign to increasem interest in the entire Savings drive. - 16 News Letter News Letter SPECIAL ORGANIZATIONS ON THE AIR At the convention recently held in New York City, PHIL DELTA EPSILON Radio Programs for the Coming Week: FRATERNITY sold more than $350 worth of Defense Stamps and $21,000 worth of Bonds. Monday, January 19 "FOR AMERICA WE SING" 9:30-10:00 PM (EST) The EL PROGRESSO CLUB of Pilot Point, Tax., voted to buy 4 Defense Boad NBC Blue Network Harbor, in memory of two local boys, Joe and James Fritcher, reported lost at Fearl Dr. Frank Black's Orcheatra and Chorus. GUEST STARS: Frunk Munn and Elizabeth Lennox The JUNIOR LEAGUE of Dallas, Tex., has voted to buy Defense Bonds with reserve fund In excess of $5,000, accumulated over & period of years for a new a club building. Saturder, January 24. VAMERICA PREFERRED" 8:00-8:30 PM (EST) Mutual Network bers of the CO-OPERATIVE CLUB of Baton Rouge, La. The first Monday in every month will be a special "Buy Bonds Day" for Item- Alfred Wallenstein's Orchestra (Andre Kostelaneta, guest conductor); Dema Taylor, commentator, with $50,000 in government bonds have been bought by the CRANSTON (8. I.) PULICE guest star to be announced later, in the press. RELIEF ASSOCIATION. of Defense Bonds for 1941 and will soon repeat. the purchase for 1942. BELOIT COLLEGE (Wis.) has already bought Its legal limit of 850,000 worth Mar Veterans, have increased their bond and stamp holdings to $8,000. Since the attack on Pearl Harbor, CAMP MARCUS D. RUSSELL, Spanish American SPOKAME RADIO EMPLOYESS RECEIVE CHRISTMAS 30NUS IN BONDS of the NORTH JERSEY ASSOCIATION FOR THE BLIND. The purchase of a $100 Defense Bond featured the regular January meeting Louis Wasser, owner of radio statime KHQ and RCA. annoimed that employees of the two stations received their Christmas bonus, amounting la $22,500, in De- Members of the Fourth Degree Assembly of the KNIGHTS OF COLUMBUS in Roches- fense Savings Bonds. two tor, N. I,, have undertaken to sell $10,000 worth of bonds and stamps the first weeks in January, Following the distribution of benus checks, employees voted in institute a pay roll savings plan at the two Spokane stations. fense Bond, and pledged members to all-out efforts in whatever service might 4 be LEXINGTON (Ky.) OPTIMISTS appropriated $100 from their club funds for Da- required for successful prosecution of the war. come January from 2, to open their "Stamp-A-Week" program. The money for on the stamps post will The HIGHLANDER BOYS of Denver, Colo., 500 strong, marched the office HOUSE ORGAN EDITORS PLAN BOND CAMPAIGN the proceeds of waste-paper collections. For every 1,000 tons of Aria shipping destroyed by American Merrick Jackson, editorial director of the Western Electric Company, was named chairman of e Committee of House Organ Magazines to bring the Defense Sav- Island a 10-cent stamp. The club was recently formed by workers of San at Diago, the North will every buy member of the ADMIRAL ISAAC C. KIDD Defense Stamp Club armed forces, Callf, ingo Program before the 15,000,000 readers of the various House Magazines of the Naval Mr Station. nation. Other members of the committee ares A.P. Alexander, JE., Editor of The January Defense 4. Bonds, reported State President San Stem at a Defense over $100,000 conference in on North Dakota's ten ELKS LODGES have recently bought D. 3. Red Barral, Coca Cola Company; Alex Smith, Works News Co-ordinator of the General Electric Company) and Robert Newcomb, Editor of Stet, published by the Champion Paper and Fibre Company. - 18 - 19 Regraded Inclassified News Letter DEPUTY ADMINISTRATOR BRAVES LET YOUR ANSWER TO BOMBS KING OF BEASTS BE BONDS , - AMERICA : / John H. Payne, Jr., of the Virginia Defense Savings Staff, ien't really frightened, although he admits being a bit nervous when he climbed into the cage with King Tara, MGM lion. The lobby display of the Equit- The King of Beasts came to Richmond able Truet Company in Wilmington, along with his trainer in a drive Del., includes an actual 500- to sell Defense Bonde and Stamps. pound demolition Bomb as shown - in the above picture. JOE WILLIAMS NAMED AS SPORTS CONSULTANT ON STAFF Secretary Morgenthau has announced the appointment of Joe Williams, nationally known sports writer, as Sports Consultant in connection with the Defense Savings Program. Left to ght: Eugene V. Sloan, Execu- tive Director, Defense Savings Staff; Joe Williams; Vincent Callahan, Chief, Redio and Press Section, Defense Savings Staff, - 20 - 156 Number of agents in Other Corporations and Investment Industry qualified to issue Series E Savings Bonds. by Federal Re- serve districts - January 10 to date. : : : : : : : : Atlanta : Boston : Chicago Cleveland Dallas Kansas New : Minne- : : Phila- , : : : : : Date : Richmond : San Pran- : St. Louis Total : : : : 2 City : apolis I York delphia : : cisco : : Other Corporations is. 10 4 - 8 - - - - - - - - - 12 31 17 14 90 28 27 1 3 32 101 19 8 11 TN. 7 42 351 20 19 115 33 5 3 41 124 23 14 18 14 23 22 151 40 49 457 9 3 46 135 27 15 43 32 552 21 23 27 170 53 14 3 53 148 27 18 28 23 37 44 4 35 614 198 58 16 55 159 30 21 41 686 lat. 1 25 50 234 46 59 17 4 56 174 31 25 42 763 14 27 54 261 46 62 19 our 5 61 184 36 28 43 826 21 27 64 282 51 62 22 6 64 192 40 30 45 885 Investment Industry is. 24 - - 5 - - 2 - 1 - 2 - - 10 31 - - 10 3 - 2 - 7 1 6 1 8 37 10 7 - - 13 6 - 2 - 9 , 7 3 to 48 14 - - 15 6 3 2 - 10 . 7 3 to 54 21 - - 17 7 3 2 - 14 1 7 3 8 61 25 - 1 17 7 3 2 - 14 . 8 3 to 63 Kar. 7 - 1 17 7 3 2 - 16 , 8 3 8 65 14 - 1 17 7 3 2 - 18 - 8 3 8 67 21 I 1 17 7 3 2 - 17 1 8 3 8 66 Other Corporations authorized as of December 27. 1941 and Investment Industry as of January 17, 1942. Regraded Inclassified 157 Basive of agests is Other Corporations and Investment Industry qualified to issue Series $ Savings Bonds. by Federal 10- serve districts - January 10 to date. 1/ : I I I I t I Boston I Chicago - Kansas Yes : I - - Gloveland # Minne- I 1 Atlanta 2 Ballas I a Phils- Date I I Richmond - Sam Tran- I St. Louis Total $ I I I City apelis Teste I I - 2 I delphis 2 I cisco - 1 Other Corporations " - 8 - - - a. 10 , - - - - - 12 31 17 14 90 26 21 1 3 32 101 19 8 11 351 4. 7 20 19 115 33 a 5 3 41 124 23 14 18 457 14 23 22 151 to W 9 3 46 135 27 15 32 552 21 23 27 170 43 53 14 3 53 148 27 18 35 614 28 23 37 198 44 % 16 - 55 159 30 21 41 686 é 7 25 50 234 46 9 17 4 56 174 n 25 42 763 46 STATESTS 14 27 54 261 62 19 184 Dr 282 62 one 5 61 36 25 43 826 21 27 51 22 6 04 192 40 30 5 in Investment Industry is. 24 - - 5 - I 2 - 1 - 2 - - 10 31 - - 10 Mall - 2 - 7 - 6 1 8 37 7 - - 13 6 e 2 - 9 - 7 3 8 as 14 . - 15 6 3 2 - 10 - 7 3 8 50 21 - - 17 7 3 2 - 14 - 7 3 8 61 26 - 1 17 7 3 2 - 14 - to 3 6 63 5. 7 - 1 17 7 3 2 4 16 - to 3 - $ 14 - 1 17 7 3 2 - 18 - 8 3 5 67 21 - 1 17 7 3 2 - 17 - to 3 8 66 Other Corporations authorised as of December 27. 1941 and Investment Industry as of January 17. 1942. Regraded Unclassified 158 January 17, 1942. Vr. Dyron Price, Director of Consorship, Rashington, D.C. Dear Mr. Price: for Secretary Morgenthau I wish to acknowled,e, id th thanks, the receipt of your letter of January 16 transmitting codes of practice for publications and radio stations. The request in your letter with regard to the procedure to be taken for withholding dissemination of information has bean noted. Very truly yours, (Signal) Hortert K. Gaston Herbert b. l'action Assistant Secretary of the Troasury. FCR/mah Copies of Mr. Price's letter and enclosures, with carbon of this reply, sent to: Mr. W. N. Thompson Mr. Kuhn and Mr. Schwars Original to Visa Chauncey for Secretary's files. she Regraded Unclassified BYRON PRICE 159 DIRECTOR OF CENSORSHIP THE OFFICE OF CENSORSHIP WASHINGTON January 1°, 19&2. the [onoruble Benary Forgenthau, Locrotary of the Treasury, 0.0. Lr. Secretary: upon instructions fre the President, the Office of Cen- corruit 138 undertaken 1- enlist the voluntary cooperation of the ress and racio to prevent the domentic disse inttion of Information of aid to the enemy. Pursuant to that undertaking, this Office has distributed the attached codes of practice for jublications ano radio stations. This voluntary effort cannot possibly succeed Lr there are confusions and contralictions in the dealings of individual - arivents am: agencies of the government with the (TOC) and emin, IL therefore is requested 11 at Any time Any crficial 00 your Department either in washington 02' in the field, dealres - Sod press or radio or any part of It be requested & nit- use alswemination of information, the request be trans.,Itted 10 the Office OZ Censorship, rather than to 4, newspaper or = "Jency or any raúlo station direct. :, should be shal request relates Tolely NO withholding of information from publication 00 broad- and 10 no WAS rofers to any affirmative action or: the 17: F your Department in maiting news available. Sincerely yours, me him Byron Price, director. address (2)- Regraded Unclassified 150 FOR RELEASE IN EVENING PAPERS OF FRIDAY, JANUARY 16, 1942. OFFICE OF CENSORSHIP Washington January 15, 1942 A war-time code of practices for radio broadcasters was issued today by the Office of Censorship. The code was drafted by Director Byron Price and Assistant Director J. H. Ryan after conferences with the radio industry. It asked that some classes of information which might aid the enemy be withheld. The government further requested that broadcasters exercise careful control over certain types of programs which are potential espionage tools for the enemy. Most of the precautions emphasized in the statement are being exercised already by broadcasters on a voluntary basis. It was announced that Mr. Ryan would be in direct charge of adminis- tratica of the code, aided by assistants selected from the industry and an Advisory Council of Broadcasters, soon be appointed. The Office of Censorship issued this statement: In wartime it is the responsibility of every citizen to help prevent the enemy, insofar as possible, from obtaining war, navy, air or economic intolligence which might be of value to him and inimical to our national effort. The broadcasting industry has enlisted with enthusiasm in the endoavor, and the following is intended to be helpful in systematizing cooperation on a voluntary basis during the period of the energency. Two possibilities exist: (1) Enemy exploitation of stations heard only within our borders, to expedite the work of saboteurs, and (2) Enemy exploitation of stations heard internationally (both short and long wave) to transmit vital information. All American stations desire to prevent such exploitation. The statement herewith set forth is presented under three headings: (1) News programs (2) Ad 11b programs (3) Foreign language programs. Radio management can do much in other ways to win the war. It car. act, in the light of experience, as Its own cenxor above and beyond the suggestions contained in this statement of conduct. Regraded Unclassified 161 NEWS PROGRAMS It must be remembered that all newspapers, magazines and periodicals are censored at our national borders, No such post-publication censor- ship 18 possible in radio. Scores of stations operating on all classifi- cations of frequencies are heard clearly in areas outside the United States. These stations especially should exercise skill and caution in preparing news broadcasts. Ninety-nine per cent of the commercial stations operating in the United States are serviced by one or more news agencies. News teletyped to stations and networks by these agencies will be edited at the source, with a view to observing certain requests set down by the press section of the Office of Censorship. These precautions notwithstanding, the Office of Censorship stresses the need for radio to process all news in the light of its own specialized knowledge. Broadcasters should ask themselves the question, "Would this material be of value to mo if I were the enemy?" Certain material which may appear on the news service wires as approved for nowspapers may not be appropriate for radio. It is requested that news falling into any of the following classifi- cations be kept off the air, except in cases when the release has been authorized by appropriate authority. (1) Weather reports, This category includes temperature readings, barometric pressures, wind directions, forecasts and all other date relat- ing to weather conditions. Frequently weather reports for use on radio will be authorized by the United States Weather Bureau. This material is permissible. Confirmation should be obtained that the report actually came from the Weather Bureau. Special care should be taken against inadvertent references to weather conditions during sports broadcasts, special events and similar projects. Information concerning road conditions, where such information is essential to safeguarding human life, may be broadcast when requested by a Federal, State or Municipal source. (2) Troop movements. The general character and movements of units of the United States Army, Navy and Marine Corps, or their personnel, within or without the continental limits of the United States; their location, identity or exact composition, equipment or strength; their destination, routes and schedules; their assembly for embarkation or actual embarka- tion. Any such information regarding the troops of friendly nations on American soil. (The request as regards location and general character does not apply to training camps in the United States, ner to units assigned to domestic police duty.) (3) Ships. The location, movements and identity of naval and merchant vessels of the United States and of other nations opposing the Axis powers and of personnel of such craft; the port and time of arrival of any such vessels; the assembly, departure or arrival of transports or conveys, the existence of mine fields or other harber defenses; secret orders or other secret instructions regarding lights, bucys and other guides to navigators; the number, size, character and location of ships Regraded Unclassified 162 in construction, or advance information as to the date of launchings or commissionings; the physical setup of existing shipyards, and information regarding construction of new ones. (4) Planes. The disposition, movements and strength of army and navy units, The time and location of corps graduations or the equipment strength of any training school. (5) Experiments. Any experiments with war equipment or materials, particularly those relating to now inventions. Any name of the where abouts of camouflaged objects, (6) Fortifications. Any information regarding existing or projected fertifications of this country, any information regarding coastal defense emplacements or bomb shelters; location, nature or numbers of anti- aircraft guns, (7) Production, Specific information about war contracts, such an the exact type of production, production schedules, dates of delivery, or progress of production; estimated supplies of strategic and critical materials available; or nation-wide "round-ups" of locally-published pro- curement data except when such composite information is officially approved for publication. Specific information about the location of, or other information about, sites and factories already in, existence, which would aid saboteurs in gaining access to them; information other than that readily gained through observation by the general public, dis- closing the location of sites and factories yet to be established, or the nature of their production. Any information about new or secret military designs, or new factory designs for war production. (8) Casualty lists. Total or round figures issued by the government may be handled. If there is special newsworthiness in the use of an individual name, such as that attending the release concerning Captain Colin Kelly, it is permissible material. Stations should use own judg- ment in using names of important personages from their own areas killed in action. The government notifies nearest kin BEFORE casualty's name is released to the press. (9) Release of figures on selective service enrollments. (10) Unconfirmed reports. Reports based on information from uniden- tified sources as to ship sinkings or land troop reverses or successes should not be used. In the event enemy claims have been neither confirmed nor denied by established authority, the story ordinarily should be handled without inclusion of specific information; there should be no men- tion of ship's name - only its classification; there should be no mention of army unit designation - just its general description (tank, artillery, from infantry, etc.). Commentators, through sensible analyses of reports enemy origins, stressing the obvious fallacies, can do much to correct any false impressions which might be created. (11) Communications. Information concerning the establishment of new international points of communication should be withheld until officially released by appropriate federal authority. Regraded Unclassified 163 4 (12) General. Information disclosing the new location of national archives, art treasures, and so on, which have been moved for safe- keeping; damage to military and naval objectives, including docks, rail- roads, or commercial airports, resulting from enemy action; transporta- tion of minitions or other war materials, including oil tank cars and trains; movements of the President of the United States, or of official military or diplomatic missions of the United States or of any other nation epposing the Axis powers -routes, schedules, or destination, within or without the continental limits of the United States; movements of ranking army or naval officers and staffs on official business; movements of other individuals or units under special orders of the army, navy or state department. Summation: It should be emphasized that there is no objection to any of these topics if officially released. These restraints are suggested: (1) Full and prompt obedience to all lawful requests emanating from constituted authorities. If a broadcaster questions the wisdom of any request, he should take it up with the Office of Censorship. (2) Exercise of common sense in editing news, meeting new problems with sensible solutions. Stations should feel free at all times to call on the Office of Censorship for clarification of indi- vidual problems. -II- AD LIB PROGRAMS Certain program structures do not permit the exercise of complete discretion in pre-determining the form they will take on the air. These are the ad lib or informal types of programs. Generally they fall into four classifications: (a) Request programs. (b) Quis programs. (c) Forums and interviews (ad 11b). (d) Commentaries and descriptions (ad lib). As experience dictates the need of changes, they will be made, and all stations notified. Stations should make certain that their program departments are fully acquainted with these provisions. (a) Request programs. Certain safeguards should be adopted by the broadcaster in planning request programs. It is requested that no tele- phoned or telegraphed requests for musical selections be accepted for the duration of the emergency. It is also requested that all mail bearing requests be held for an unspecified length of time before it is honored on the air. It is suggested that the broadcaster stagger replies to requests. Care should be oxercised in guarding against honoring a given request at a. specified time. 5 181 Special note is made here of "lost and found" announcements and broadcast material 02 e nature, Broadcasters are asked to PORA acceptance of such material when it is submitted via telephone or tele- graph by a private individual. If the case involves 8 lost person, lost dog, lost property or similar matter, the broadcaster is advised to domand written notice. It is suggested that care be used by station continuity departments in re-writing all such personal advertising. On the other hand, emergency announcements asked by police or other authorized sources may be accepted. Announcements bearing official authorization seeking blood donors, Inst persons, stolen cars, and similar material may be accopted by telephone, but confirmation of the source is suggested. It is requested that announcements of mass meetings not be honored unless they come from an authorized representative of an accredited governmental or civilian agency, Such requests should be accepted only when submitted in writing. (b) Quiz programs. It 19 requested that all audience-participation type quiz programs originating from remote points, either by wire, trans- cription or short wave, be discontinued, except as qualified hereinafter. Any program which permits the cublic accessibility to an open microphone is dangerous and should be carefully supervised. Because of the nature of quiz programs, in which the public is not only permitted access to the microphone but encruraged to speak into it, the danger of usurpation by the enemy is enhanced. The greatest danger here lies in the informal interview conducted in a small group - ten to twenty-five people. In larger groups, where participants are selected from a theatre audience, for example, the danger is not so great. Generally speaking, any quiz program originating remotely, wherein the group is small, and wherein ne arrangement exists for investigating the background of participants, should be discontinued. Included in this classification are all such productions as man-in-the-street interviews, airport interviews, train terminal interviews, and 60 forth. In all studio-audience type quiz shows, where the audience from which interviewees are to be selected numbers less than fifty people, program conductors are asked to exercise special care. They should devise a method whereby no individual seeking participation can be GUARANTEED PARTICIPATION, (c) Forums and interviews. This refers specifically to forume in which the general public is permitted extemporaneous comment; to panel discussions in which more than two persons participate; and to inter- Although the likelihood of exploitation here 1s slight, there are certain views conducted by authorized employees of the broadcasting company. forums during which comments are sought "from the floor" or audience, that demand cautious production. reporters are advised to avoid specific reference to locations and struc- (d) Commentaries and descriptions. (Ad 11b) Special events tures in on-the-spot broadcasts following air raids or other enemy offen- sive action. Both such reporters and commentators should beware of using Regraded Unclassified - 6 - 165 any descriptive material which might be employed by the enemy in plotting an area for attack. THE BROADCASTER IN SUMMARY, IS ASKED TO REMEMBER THAT THERE IS NEED FOR EXTRAORDINARY CARE ESPECIALLY, IN CASES WHERE HE OR HIS AUTHORIZED REPRESENTATIVE IS NOT IN FULL CONTROL OF THE PROGRAM. -III- FOREIGN LANGUAGE PROGRAMS It is requested that full transcripts, either written or recorded, be kept of all foreign language programs; it is suggested that broad- casters take all necessary precautions to prevent deviation from script by foreign language announcers and performers. ("Foreign language" is here taken to mean any language other than English) MISCELLANEOUS Prem time to time, the Office of Censorship may find it necessary to issue further communications, which will either interpret certain exist- ing requests, emend or delete them, establish new ones or cover special emergency conditions. These communications will be addressed to managers of radio stations and networks. They should have preferential handling and it 1s therefore advisable that certain alternate executives be appointed to execute them in the absence of the regularly constituted authority. All such communice- tions will be coded in numerical order, 1,0,: R-1; R-2; R-3; etc, Stations are advised to keep them in careful filing order. The American broadcasting industry's greatest contribution to victory will be the use of good common sense. Too frequently radio in general instead of the individual offender is blamed for even the most minor dereliction. If material is doubtful, it should not be used; submit it to the Office of Censorship for review. Free speech will not suffer during this emergency period beyond the absolute precautions which are necessary to the protection of a culture which makes our radio the freest in the world. Broadcasters are asked merely to exercise restraint in the handling of news that might be damaging, for the army behind the army represents 8. great force in the war effort. Radio is advised to steer clear of dra- matic programs which attempt to portray the horrors of combat; to avoid sound effects which might be mistaken for air raid alarms. Radio is one of the greatest liaison officers between the fighting front and the people. Its voice will speak the news first. It should speak wisely and calmly. In short, radio is endowed with a rich opportunity to keep America enter- tained and interested, and that opportunity should be pursued with vigor. The Office of Censorship, Byron Price, Director. Regraded Unclassified FOR RELEASE IN MORNING NEWSPAPERS OF THURSDAY, JANUARY 15, 1942. 166 OFFICE OF CENSORSHIP Washington January 14, 1942. A code of war-time practices for newspapers, magazines, and other periodicals was announced today by the Office of Censorship. Under the code, which was drafted by Director Byron Price and Assistant Director J. He Sorrells after conferences with the industry, the asks that certain classes of information which might be of aid to the enemy be withheld from publication except when officially given out, Many of the practices proposed already have been put into effect by publications on a voluntary basis. It was disclosed that Mr. Sorrells would be in direct charge of admini- stration of the erde, assisted by a small Board of Editors and an Advisory Council of the publishing industry, soon to be appointed. The Office of Censorship issued the following statement: This statement responds to the many inquiries received by the Office of Censorship, asking for an outline of newspaper and magazine practices which the Government feels are desirable for the effective prosecution of the war, It is essential that certain basic facts be understood from the beginning. The first of these facts is that the outcome of the war is a matter of vital personal concern to the future of every American citizen. The second is that the security of our armed forces and even of our homes and liberties will be weakened in greater or less degree by every disclosure of information which will help the enemy. If every member of every news staff and contributing writer will keep these two facts constantly in mind, and then will follow the dictates of common sense, he will be able to answer for himself many of the questions which might otherwise trouble him. In other words, a maximum of accomplish- ment will be attained if editore will ask themselves with respect to any given detail, "Is this information I would like to have if I were the enemy?" and then act accordingly. The result of such a process will hardly represent "business as usual" on the news deaks of the country. On the contrary, it will mean some sacri- fice of the journalistic enterprise of ordinary times. But it will not mean a news or editorial blackout. It is the hope and expectation of the Office of Censorship that the columns of American publications will remain the freest in the world, and will tell the story of our national successes and shortoomings accurately and in much detail. stands the need for temporary sacrifice, and is prepared to make that sacri- The highly gratifying response of the press BO far proves that it under- fice in the spirit of the President's recent assurance that such curtailment as may be necessary will be administered "in harmony with the beat interests of our free institutions." Regraded Unclassified 167 - 2 - OFFICE OF CENSORSHIP Below is 8. summary covering specific problems. This summary repeats, with goinG adifications. requests previously made by various the Federal Government, and it may be regarded as superseding and consolidating all of those requests, Special attention is directed to the fact that all of the requests in the aummary are modified by a proviso that the information listed may properly be published when authorized by appropriate authority. News on all of these subjects will become available from government sources; but in war, timeliness is an important factor, and the government unquestionably is in the best position to decide when disclosure is timely. The specific information which newspapers and magazines are asked not to publish except when such information is made available officially by appropriate authority falls into the following classes: TROOPS The general character and movements of United States army units, within or without the continental limits of the United States - their location; identity or exact composition; equipment or strength; their destination, routes and schedules; their assembly for embarkation, prospective embark- ation, or actual embarkation. Any such information regarding the troops of friendly nations on American soil, Note: The request as regards location and general character does not apply to troops in training camps in continental United States, nor to units assigned to domestic police duty. SHIPS The location, movements and identity of naval and merchant vessels of the United States in any waters, and of other nations opposing the Axis powers, in American waters;' the port and time of arrival or prospective arrival of any such vessels, or the port from which they leave; the nature of cargoes of such vessels; the location of enemy naval or merchant vassela in or near American waters; the assembly, departure or arrival of transports or convoys; the existence of mine fields or other harbor defense; secret orders or other secret instructions regarding lights, buoys and other guides to navigators; the number, size, character and location of ships in con- struction, or advance information as to the date of launchings or commission- ings; the physical set-up or technical details of shipyards. PLANES The disposition, movements, and strength of army or navy air units. FORTIFICATIONS The location of forts and other fortifications; the location of coast defense emplacements, or anti-aircraft guns; their nature and number; loca- tion of bomb shelters; location of camouflaged objects. Regraded Unclassified - 3 OFFICE OF CENSORSHIP 168 PRODUCTION Specific information about war contracts, such as the exact type of pro- duction, production schedules, dates of delivery, or progress of production; estimated supplies of strategic and critical materials available; or nation- wide "round-ups" of locally-published procurement data except when such com- posite information is officially approved for publication. Specific information about the location of, or other information about, sites and factories already in existence, which would aid saboteurs in gain- ing access to them; information other than that readily gained through observation by the general public, disclosing the location of sites and factories yet to be established, or the nature of their production, Any information about new or secret military designs, or new factory designs for war production. WEATHER Weather forecasts, other than officially issued by the Weather Bureaup the routine forecasts printed by any single newspaper to cover only the State in which it is published and not more than four adjoining States; por- tions of which lie within a radius of 150 miles from the point of publica- tion. Consolidated temperature tables covering more than 20 stations, in any one newspaper. NOTE: Special forecasts issued by the Weather Bureau warning of unusual conditions, or special reports issued by the Weather Bureau concerning temperature tables; or news stories warning the public of dangerous roads or streets, within 150 miles of the point of publication, are all acceptable for publication, Weather "round-up" stories covering actual conditions throughout more than one State, except when given out by the Weather Bureau. PHOTOGRAPHS AND MAPS Photographs conveying the information specified in this summary, unless officially approved for publication. Detailed maps or photographs disclosing location of munition dumps, or other restricted Army or Naval areas. Note: This has no reference to maps showing the general theater of war, or large scale zones of action, movements of con- tending forces on a large scale, or maps showing the general ebb and flow of batcle lines. Note: Special care should be exercised in the publication of aerial photos presumably of non-military significance, which might reveal military or other information helpful to the enemy; also care should be exercised in publishing casualty photos so as not to reveal unit identifications through collar ornaments, etc. Special attention is directed to the section of this summary covering information about damage to military objectives. Regraded Unclassified - 4 - OFFICE OF CENSORSHIP 169 GENERAL Casualty lists. Note: There is no objection to publication of information about casualties from a newspaper's local field, obtained from nearest of kin, but it is requested that in such cases, specific military and naval units, and exact locations, be not mentioned, Information disclosing the new location of national archives, art treasures, end 80 on, which have been moved for safe-keeping. Information about damage to military and naval objectives, including docks, railroads, or commercial airports, resulting from enemy action. Note: The spread of rumors in such a way that they will be accepted as facts .will render aid and comfort to the enemy. It is suggested that enemy claims of ship sinkings, or of other damage to our forces, be weighed carefully and the source clearly identi- fied, if published. Information about the transportation of munitions or other war materials, including oil tank cars and trains. Information about the movements of the President of the United States, or of official military or diplomatic missions of the United States or of any other nation opposing the Axis powers - routes, schedules, or destina- tion, within or without the continental limits of the United States; move- ments of ranking army or naval officers and staffs on official business;' movements of other individuals or units under special orders of the army, navy or state department. Note: Advertising matter, Letters to The Editor, interviews with men' on leave, Columns, and so on, are included in the above requests, both as to text and illustration. If information should be made available anywhere which seems to come from doubtful authority, or to be in conflict with the general aims of these requests; or if special restrictions requested locally or otherwise by vari- ous authorities seem unreasonable or out of harmony with this summary, it is recommended that the question be submitted at once to the Office of Censor- ship. In addition, if any newspaper, magazine or other agency or individual handling news or special articles desires clarification or advice as to what disclosures might or might not aid the enemy, the Office of Censorship will cooperate gladly. Such inquiries should be addressed to the Office of Censorship, Washington. Should additions or modifications of this summary seem feasible and de- sirable from time to time, the industry will be advised, The Office of Censcrahip, Byron Price, Director. ∞000 Regraded Unclassified