Volume 853, June 8 - June 10, 1945

RECISION TRADE MARK MICROSTAT/ MICROFILM BOLL NO. DIARY Book 853 June 8-10, 1945 RECISION TRADE MARK MICROSTAT/ MICROFILM ROLL NO. June 8, 1945 June 8, 1945 11:45 A. X. 2 9:28 A.M. Governor HMJr: Hello. Saymozak: How are you! Congressman HMJr: Fine. Brent Spence: Hello, Mr. Secretary. 8: And how 18 your wife? HMJr: Well, that vas a big day yesterday. HKJr: She's home and getting along - still in bed, of S: Oh, it was, sir. course, but better. HMJr: You certainly came through much better than I had 8: Oh, that's good. hoped for. HMJr: Yeah. S: Ve didn't have anybody against us except the con- firmed isolationists and probably were members of S: I just called to congratulate you on a very splendid the America First. vote in the house. HMJr: Yesh. HMJr: Wasn't that fine! 8: Yeah, I think it was well - we had some good people 8: Oh, that is most wonderful. backing this legislation. Hope you do as well in the Senate. HMJr: Yeah. HMJr: If I did, it would be a big day for me. 8: In fact, I think history making. I never saw any- thing quite like it. 8: (Laughs) HMJr: Well, we are all very happy here about it. HMJr: My heartfelt gratitude to you. 8: And it makes a fine impression on the public and 8: I know that, and I thank you too for the fine 00- on the Senate, and on the other nations. operation you gave us and it was very helpful all around. Ve worked together in harmony and it just HMJr: Yeah. shows what can be done. At one time not at one time but for a long time - we couldn't get it out of 8: And so congratulations, and we are at your service, the committee. and hope that the thing goes through with that kind of a vote in the Senate. HMJr: Well. HMJr: Well, thank you so such. You've all been most B: But it came out with a whirl. Now if I can be of helpful. any service to you in the Senate, I want you to call on me. S: Well, we want to be. HMJr: Well, I certainly HMJr: And I appreciate all the help you've given us. All right, Henry. St I'm going to talk to Barkley about it. 5: HMJr: I wish.. HMJr: Thank you. St And you go - you are going to talk to him, of course. S: Good bye. HMJr: Oh, we have. M.S. Bent of of Federal Reserve System Regraded Unclassified PRECISION TRADE MARK MICROSTAT/ MICROFILM ROLL NO. - 2 - 3 June 8, 1945 11:47 A. M. S: You have. Then I think our hearings, and I think that 345 to 18 will help over there. HMJr: Hello. HMJr: A great deal. Con. Jesse B: Great deal. Well, good luck, to you Mr. Secretary, Wolcott: and you call on se at any time I can be of any How do you do, Mr. Secretary. service. HMJr: Jesse, I just want to tell you you are a patriot. HMJr: Ever so much obliged. Thank you. W: Well, thank you, very, very much, sir. 8: Thank you. HMJr: And I take my hat off to you. V: Well, everything turned out splendidly and I think that 99 44/100 % of the people in the United States are fairly well satisfied. HMJr: I think so, and if I may say so, I think the Re- publican party owes you a real debt of gratitude. W: Well, the boys have been very nice and very fine. They went along and they are very tolerant of my lack of understanding in the whole situation. HMJr: Yeah. Well, it 18 one of the most encouraging ex- periences I've had since I've been in Washington. W: Well, I'm glad to have you say that because I think it should be - I really do. HMJr: It makes me feel that working for the Government is worth while. V: And I think that possibly you feel that it 1a rather a personal victory. HMJr: Well, in that sense - but we're - the bigger thing 1e so important. W: Well, you were very splendid all the way through. I thoroughly enjoyed working with you. HMJr: I'm ever so much obliged, and hope... W: After all the bad things I had heard about you before that. HMJr: Yesh. V: I had to change my mind especially when you were such a gracious host as you were on several occasions. RECISION TRADE MARK MICROSTAT/ MICROFILM ROLL NO. June 8, 1945 11:52 A.M. - 2 - Operator: Speaker Rayburn HMJr: I always heard good things of you and I must say HMJr: Hello. you lived up to them. Mr. San W: (Laughs) Well, thank you very much. Rayburn: Yeah. HMJr: We'll have some more parties. HMJr: Sam? W: I hope we can some time. R: Yes, Henry. HMJr: Right. HMJr: I've just taken my hat off to you in the masterly danner that you put through Bretton Woods. W: Thank you very much, sir. R: Well, that vas a pretty good vote, wasn't it? HMJr: Goodbye. HMJr: Well, they tell me it was one of the most sig- nificant votes in about 75 years on an important piece of legislation. R: That's true - and a brand new thing besides. HMJr: That's right. R: I think you all made a wonderful fight. Let me tell you something. HMJr: Yes, sir. R: 01d Brent Spence is doing pretty well, isn't he? HMJr: Oh, he's fine! R: I'll swear, I think he has done a grand job and I told him that yesterday. And Henry HMJr: Yes. R: think to drop him a little note. HMJr: oh, I've talked to him... R: Vell, that's all right. HMJr: And & letter 1e on the way up there to him besides. R² Hurrah for you! That's just thinking ahead and that's fine. HMJr: But he -- you know on this handling the bankers, he vas just wonderful. Regraded Unclassified - 2 - 7 R: That's right. HMJr: And even this fellow Florence that they sent ne up from Dallas, I understand, from Wright Patman 1sn't sore - he's all right. R: Yeah. HMJr: You know, Florence. R: Oh, Fred Florence, sure. HMJr: You know they sent his up - they thought they could get him to dent me kind of. R: Yeah, yeah. Fred 18 a pretty good fellow. HMJr: Yeah, and at Wright Patman's suggestion, I wrote his a little letter. R: Yes, well that's fine. HMJr: But I've never seen the team work better than they Mr. Joseph O'Connell did on this. read R: Yeah. Well, ours - ve worked a pretty good team on Reciprocal Trade, too, didn't we? HMJr: Yeah, but I - you're darn right you did, but you had to do it in spite of the Republicans. R: That's right. Well, Henry, I appreciate your call. We'll try to cooperate up here. HMJr: Well, we are dann lucky to have you as a leader. R: All right, thank you, Henry. HMJr: Right. RECISION TRADE MARK MICROSTAT REG.U.S.FAT.OFF. MICROFILM ROLL NO. - 2 - 9 June 8, 1945 x. 12155 4. C: Well, what they have is this. They have statements made - I think the 0. P. A. has HMJr: Morgenthau. an O.P.A. case. Mr. San HMJr: Yeah. Clark: Mr. Secretary, I'm calling about the Barry T. Wright case. C: They have statements made by retailers that on occasions overceiling payments were made HMJr: Yes. to Wright in varying amounts, and no con- sistent pattern at all. C: I told you I would call you when we made up our minds about it. We've been giving that HMJr: Yeah. very active consideration the whole week, and yesterday we had a long conference with O: Now that indicates that there were O.P.A. Mr. Wenchell and his assistants about it. violations, but for an income - tax case, of course, we not only have to have the fact HMJr: Yes. of O.P.A. violations, but we have to trans- late those violations into specific amounts C: We feel that the case at the present stage of income. is not quite right for presentation at the Grand Jury. HMJr: I see. HMJr: Yes. C: Now, I'm quite hopeful that their case can be built up and made ready for Grand Jury pre- C: Bo I planned to send a letter to the Commissioner sentation. I doubt that it is going to be as today in which we set forth wherein we think it big a case as the 0. P.A. reported, but if ve- should be further investigated. if the agents can produce specific amounts of income more than nominal, I'll be very glad to HMJr: I see. go ahead and go ahead very vigorously. C: Specifically, we don't have any real proof as HMJr: Now, you are going to write this to Nunan? to the black market payments. That 1s, reduced to specific terms of income. C: I'll send him a letter this afternoon about it. HMJr: I see. HMJr: Good. Well, thank you for keeping me posted. C: We have the statements made that there were 0: All right. Oh, that is fine,Mr. Secretary. payments made to Wright, and we think that upon further investigation those statements can be HMJr: I wish they had prepared it better. translated into specific dollars and cente amounts. C: Vell, that's one of those cases that I think where a little more investigation may well HMJr: Yeah. break into & good case. C: Then there 1s the element of his possible de- HMJr: Ahuh. fense that I would like to get some information on if possible before we got ahend, and that 1s, Thank you very much. besides payments that he has alleged to have made to the packers, or rather the packer's C: All right, goodbye. representatives. I'm not insisting upon that but since that doubtless would be a part of his defense when it is presented to a Grand Jury, I would like to anticipate any possible. HMJr: Yes, I thought the O.P.A. thought they had a case against him. Regraded Unclassified RECISION TRADE MARK MICROSTAT MICROFILM ROLL NO. June 8, 1945 June 8, 1945 3:03 P. M. 1:02 P. X, 10 Mr. J. A. Mr. Wright Krug: Hello. Patman: Yes. HMJr: HMJr: Wright? Krug? X: P: Yes. Yes, Henry. HMJr: HMJr: Henry Morgenthau. If my hind sight had been better, I would have talked to you before. But without mentioning P: Hope you are all right. names, one of my men very anxiously asked se to do that. I didn't want to pass the buck at HMJr: Since you've made your speech I'm beginning to Cabinet. I just want you to know there vas think I'm an important guy. nothing personal about it. P: Why you always have been a very important fellow. K: Oh, I appreciate that. I'm very sympathetic That speech didn't even break the surface. with your problem. Ve happen to have the same difficulty on the production front. HMJr: Well, it was mighty fine of you. HMJr: Yeah, P: Well, I just didn't say enough though. K: We try to keep people on the job, and then day HMJr: No, it vas mighty fine, and I'm going to take by day we tell them about contracts being out advantage and give you some names of the people back, but no one seems to find any other answer I'd like to have it sent to. for it. I'm afraid we will just have to weather it through and make the best of it. P: All right. Now, I'm having it -- I told Luxford to get someone to look after it as to substance HMJr: I guess so. or course, you may find me some day and form. In other words pick out the parts that saying, "why don't you out back more." So I've found myself in an untenable position, 80 as should go in. gracefully as possible, I tried to retreat. HMJr: Yeah. K: Well, I assure you on our part, ve will try to P: And ve are going to fix it up in a nice white say as little as possible, but I do think we envelope no it won't look like a cheap manila, have to tell them when we are going. see? HMJr: Well, I'm for the truth. HMJr: Fine. Well, that's -- I appreciate it very much, and all the work you did on the committee, too. K: I know you are. P: Well, it's a pleasure, my dear sir, you ane you HMJr: But you must feel it on the production end just accommodated me one time and I don't forget friends. the way we do. HMJr: Well, I'm ready to do it again. K: Well, we feel it very much. That 1s the most difficult thing in the world - sustain morale during P: I never have forgotten one and I'm not going to. this period of outbacks. HMJr: I'm ready to do it again. HMJr: Vell P: Thank you, sir. K: The people just can't think that the remaining production is very important. HMJr: Ever 80 such obliged. P: Vell, you are welcome. HMJr: Goodbye. Regraded Unclassified RECISION TRADE MARK MICROSTAT MICROFILM BOLL NO. - 2 - 12 HMJr: Well, but - no secrets between us - it was Dan Bell, and Dan vas quite excited. He said, "How June 8, 1945 many more things are going to be thrown at us?" 3:30 p.m. But just as soon as these things come, we feel it as you must feel it. WAR BONDS K: oh, aire. We feel it definitely. TAX EVASION HMJr: But I just wanted to let you know that I thought Present: Mr. Little you were right, and I wanted to say so. Mr. Fussell K: Well, thank you very much, I appreciate your Mr. Lane calling, Mr. Secretary. Lt. Levy Mr. Gamble HMJr: 0. K. Mr. Feltus X: Bye. HMJr: Thank you. MR. GAMBLE: I taink Coleman of the Bureau of the Budget told Beil the Army was going up for their new appropriation the first of July, and he thought they had B. bad statement. H.M.JR: I did the best I could and got slapped down. Now, this thing here, I won't be e minute. I've got this in my hand. I'm going to release this letter Monday afternoon to the press which goes to fifteen thousand banks, asking for their cooperation in regard to currency, and I wondered if we have some finance people in war bonds. I'm releasing it to the press. It's going out to the banks now. I think your people will be interested, and I'm told that I'm scaring 8 lot of this money into bonds. MR. GAMBLE: That's the worst that's happening in my judgment. I mean by that -- H.M.JR: You know what they're doing. They won't go to the bank. I've got it straight, and maybe after the bond drive is over I may do B. little inquiring about very large figures. I know one case where a fellow bought bonds rather than go to the bank, 80 somebody suggested that I should hit it. I said, "Mait a minute. I've got trouble enough. Wait until the Regraded Unclassified RECISION TRADE MARK MICROSTAT MICROFILM ROLL NO. 15 14 - 3 - - 2 . H.M.JR: Are you in a hurry? bond drive is over, and we'll inquire if there are any MR. GAMBLE: No sir. very large cash transactions, but not in the middle of 8. war. H.M.JR: Just let me clear up this question here. MR. GAMBLE: That's right. Be had some evidences It's on 6 talk on the radio, you see, and I wanted to of that, Mr. Secretary. do it all at one time. Further, I want to say you're welcome. Incidentally, those three Veterans organiza- H.M.JR: But Hap Young said the first day he took tions are coming in tomorrow et eleven o'clock. in twenty million cash, 80 I think this -- this is what I'd like -- I would like this to go out. MR. FELTUS: Do you want a memo to send to the President? MR. GAMBLE: This doesn't impose any new regula- tions? H.M.JR: He S&W then at twelve-thirty today. I had three minutes notice. They called me at twelve H.M.JR: No. This nas announced. This is an twenty-five. "We're terrible sorry me forgot to tell you. explanation to the banks. MR. GAMBLE: Of what you've asked them already MR. FELTUS: I thought they were coming in tomorrow. to do? H.M.JR: They were very nice. They forgot. "It H.M.JR: I'm giving it out Monday afternoon to was entirely ay fault," he said. "I forgot about it." the press. The thing they've kicked about we've Be mosn't like Early, very apologetic, and this one fellow corrected, and we explained it, if you read the thing. started to tell ne everything you told his, and I didn't know n. damn thing about it. You won't be here tomorrow, MR. GAMBLE: Fine. so if you'll leave ne a memo -- will you please? H.K.JR: It's been done very carefully, and it's MR. FELTUS: I didn't tell hin much, but do you an explanation, and I think a good one, and goes to the want e. nemo on what I told him? banks. I think it will nake the banks feel happy. I thought your State Chairmen plus your people who con- H.M.JR: Yes. He seened to think you were good. tact banks ought to know about this. It's one of the I didn't argue with him. (Laughter) Now, let's do background stories, the third one I've given. Here's the first thing first, and the other thing will take something I'a doing that affects the banks, but it's more time, but if it's radio, I wanted Dave to know about it. all right. MR. GAMBLE: You don't care if we have that just so MR. FELTUS: I think he already knows about it. it's in their hands Monday. I think Fussell talked to him about it. Fussell got 5. message from Dan Bell you wanted to go on the air H.M.JR: No, because it will be in the hands of the Sunday. banks by then. The worst public relations is to have a man read it in a paper and get the letter about it H.M.JR: I'm going. the next day. MR. GAMBLE: We'll have this in everybody's hands by Monday. Regraded Unclassified RECISION TRADE MARK MICROSTAT' MICROFILM ROLL NO. 16 17 - 4 - 5 MR. FELTUS: We've ail been somewhat concerned, or I have violations, and I'd even tell generally about 6. case or at least-I'd better speak for myself--because it's two. I'd tell that your responsibility as Secretary of the awfully short notice to get good time, and -- Treasury, your job le to do what you believe one hundred and thirty-five million Americans wanted you to do. I MR. GAMBLE: I think Dave has 8. possible solution think this Gellup Poll supports that kind of statement. to it. We'll know in a half hour. It says seventy-seven percent of the people do not want a tax reduction until after V-J Day, seventy-seven per- H.M.JR: Sunday night, where? derful: cent of the people in the paper this morning. It's won- LT. LEVY: Where? Right here. H.M.JR: Did any of you hear the Warch of Time" H.M.JR: See if it's in these press releases. last night? They did & beautiful job on this. MR. GAMBLE: It supports everything you've done on this operation 88 well as being a survey. MR. FELTUS: I heard about it. I didn't hear it. H.M.JR: The thing I really wanted to talk on was H.M.JR: You didn't hear it either? this. If I W&B going to do this thing, a number of the banks will heed us, you see? This is the story, and MR. FUSSELL: I read the script on it. I didn't like always, Chester Davis WAS among the first, the may hear it. he always it, to help us, and ne have had some of our very best cases and convictions through the banks. MR. GAMBLE: I didn't hear it. There is the one, Fus, of the fellow out of Cincinnati, that three million dollar case. H.M.JR: Let ge get the advice of everyone. If we're going to do it -- we went off half-cocked here MR. FUSSELL: Who? and gave this very difficult order to the banks with no preparation for the banks. Now we're trying to H.M.JR: The currency case. catch up, but I don't know, I don't think it was my fault, but the group that was doing it is publicity- MR. FUSSELL: The Gould case. minded. Bell and Joe O'Connell just rushed ne through on this, got no to sign it when I was going out of the H.M.JR: We got it through the banks, and what room. Bingo, it goes to the banks with no preparation. happened was some of the banks said, "We have this rela- I'm sending fifteen thousand banks a letter. We're tionship between our depositors and ourselves that we trying to catch up, and I wondered whether I shouldn't can't do it," and as I said at my press conference, "Let go on very much the script of that letter and talk Washington order it, and if they don't like it, they'll to the banks. That one is pretty much the script. say, Washington told us to do it, 80 if it's going to be me, I'm going to do it, see, because some of the banks MR. GAMBLE: I haven't read the letter, but my said they wouldn't do this until they were told the same notion of what you ought to do, and Dave has asked for thing. It's the doctor-patient, lawyer-client relation- a five minute spot on lie the People"- it would take ship, and all the rest of that. So I did it, but without between four and five minutes - is not to do Ne the any preparation. Now, I've had two or three telegrams People show," but have % the People" have you tell the from the twelve Federal Reserve Bank Presidents, and story on their program Sunday night, and, Mr. Secretary, with the exception of that Indians case -- and I think it would be an ideal kind of audience and pro- somebody told ne he's & chronic kicker, anyway -- gram to do it. I'd touch on the gravity of these there's been nothing but this, I think. If I was going to do it, then I could say that we're asking a lot of people to help, and naturally one of the places that can help are the banks, and I've Regraded Unclassified MICROFILM ROLL NO. RECISION TRADE MARK 18 19 - 7 - - 6 - MR. LITTLE: I think you ought to have 8. new case. asked the banks to do it, and the banks are helping, and I want to explain to the depositors, I mean, and the MR. LANE: I think you ought to bring in 8. case. banks that this is a protection to the legitimate man of business. The Manager of the New York Times was in H.M.JR: I had an unusual press conference. here yesterday, Arthur Sulzberger. They sent him here at my request, and when I explained it's the cheats that MR. GAV RLE: This Indianapolis and Chicago -- it drive the legitimate fellows out of business, and we're WBS a swell case. That's 8. perfect case to teil the protecting ninety-nine percent of the people, in order public, because the average citizen doesn't have much to do that -- use for that. MR. GAMBLE: You'll gain #: billion dollars in taxes H.M.JR: I had lunch with Chester Bowies, and, too. gentiemen, I mean, the stuff be mants! The first of July, he suggested that he and I and the Attorney General H.M.JR: We'll gain another billion from revenue, and should have & joint press conference. I told Chester, everybody, ninety-nine percent of the people who are honest "I'n riding high. I've ridden low. You're riding low. should say "Amen" to this sort of thing, and the only Let's get together, because I believe in what you're doing. fellows that are going to kick are the people that have Now, we've got to keep you going." something to hide. MR. FELTUS: That's good and MR. GAMBLE: Or where the bankers put some pressure on it as happened in Pulliam's instance. The Herald H.M.JR: We'll pool our interest. Tribune had a swell editorial yesterday on it, compli- menting you for doing the job. VR. GAMBLE: Watch him for 8. while, though, between nom and the next fifteen days. He's riding swfully low, H.M.JR: I didn't see it. will you nake a note of Vr. Secretary. that, Fus? H.K.JR: I know, but it's on the inflation front. MR. GAMBLE: Yesterday morning's Herald Tribune. VR. GAMBLE: lie may not be the answer to it. H.M.JR: Last night the"March of Time" was wonderful! Bowles is like a good many other fellows. I'm sympathetic They had a nan having ne go before the Appropriation's to his. Committee and asking for it, and they dramatized one case and ended up again with my voice. I got the money. H.M.JR: OPA is the answer to it. What do you think, Dave? LT. LEVY: I think it would be very good. I think MR. GAMBLE: I agree, but Bowles may be the whipping post on it, and OPA may have to have another nan to save Mr. Gamble's suggestion 88 to the shape it will take Itself. would be fine. MR. GAMBLE: I'd do it 15 though you had been invited H.M.JR: But if you all agree, I'll be glad to go on Sunday night. to explain it. I wouldn't take a bad spot on the air to do it. If "We the People" would do it, you've got the MR. GAMBLE: If we get that kind of time, I would right platform to do the sort of thing you went to do. recommend it. If not, I'd try to get the same kind of H.M.JR: I can have a brand new case we haven't time for the following Sunday night and do it. talked about and say, "This is the kind of thing the banks help us on, and have 8. brand new case. Regraded Unclassified MICROFILM BOLL NO. 20 21 - 8 - - 9 - H.M.JR: The following Sunday I'll be all mixed MR. FUSSELL: That's dependent upon getting the spot. up with war bonds. MR. GAMPLE: I'd do it entirely on the basis of MR. GAMBLE: We'll know in a half hour. getting the spot. Dave had 8. good talk & half hour ago, H.M.JR: Does anybody disagree about going on Sunday and they were going to let us know. They'd been too far in their script Sunday night. night? MR. FUSSELL: Not if you can get a good program, LT. LEVY: That's their problem. but not if you pick a poor spot. MR. LANE: Every show by now has been built. MR. GAMBLE: It's not as much the poor spot as the MR. FELTUS: Is there anything Monday in case that nature of the program. That's the kind of program fails through, anything good on Monday night? people expect to hear that type of story. H.M.JR: Coca Cola will give me five minutes. MR. LANE: It fits right in. H.M.JR: Say I bring in WBI bonds and lay it on. I'm VR. GAMBLE: It's not a question of getting time. confident they're going to help, not help me out, but help LT. LEVY: We can get the time. out the tax payers. H.M.JR: Al Steele will give you time. MR. GANBLE: That's right. H.M.JR: I read somewhere today that fifty million MR. FELTUS: You can get sustaining time anytime tax payers weren't going to let the people get away with you want. It won't do you any good. this. If we're going to do it, Dave, it's between you and Fussell. Fussell can pump you for all this stuff. H.M.JR: Who do I look to for time? He oozes it out of his ears, the liquor or black market MR. GAMBLE: Dave and Tom. stuff. MR. FELTUS: I don't see any liquor coming out of H.M.JR: So much for that. Now, do you want to go on to the next thing? his ears. H.M.JR: Can I leave it to Levy and you? MR. FELTUS: You don't need no, do you? H.K.JR: You might be interested to see how I work. MR. FUSSELL: Yes. Oatching e train? H.M.JR: Who else? Anybody else? MR. FELTUS: Not until five o" clock. I've got plenty MR. GAMBLE: No. There doesn't need to be anybody of time. else. H.M.JR: You can stay or not. Do you want to see H.M.JR: Between you, you'll write the script for some good fellows work? ne. MR. FELTUS: As you wish. I like to see professionals work. RECISION TRADE MARK MICROSTAT/ MICROFILM ROLL NO, 22 23 - 10 - - 11 - MR. GAMBLE: The show is shaping up all right for MR. GAMBLE: A perfect setting. the seventeenth in New York. Last night I saw Rose Schneider, and she said she'd like to have the question brought up H.M.JR: Certainly. She hasn't been on. Her voice to you as to whether or not it would be proper, despite would be 8. fresh voice, and General Roosevelt has & the fact he bas not yet been approved, to have come magnificent record. I didn't went to ask her. I'm so along as your guest the new appointee for Secretary of scared of you people. (Laughter) Labor, Schwellenbach. MR. GAMPLE: Yes. Le have such strained relations. H.M.JR: I'll tell you why I don't want to do it. I don't want to hurt Frances Perkins' feelings. 1 just H.M.JR: What do you think? can't do it, if you don! mind. I couldn't do it, especially now. LT. LEVY: Excellent. Fine. The sooner we know, the better. MR. GAMBLE: Barthwill have your speech finished this coming Monday. H.M.JR: I'll ask her. What time is it? H.M.JR: I couldn't do it. It would hurt Frances Perkins too much. LT. LEVY: The program is on Wednesday, from ten-thirty to eleven. MR. GAMBLE: Dave has about half of the Pawling H.M.JR: Ten-thirty to eleven? Incidentally, he's show completed, and we can give you that the first of the very good on the radio. week. H.M.JR: On that day, Mrs. Roosevelt said she'd MR. LITTLE: He's good for us. I've heard him speak. come over to hear me, plus General Eiliot Roosevelt. H.M.JR: He's excellent on the radio -- he used to Don't you think it would be nice to put the two of them on? be on for commercials -- being Air Corps and all that. What? LT. LEVY: Wonderful, if they'd like to do it. LT. LEVY: Wonderful. H.M.JR: Well, Mrs. Roosevelt has gone through more hospitals, and more people are devoted to her than anybody (Discussion off the record) else, and General Roosevelt has 8. wonderful record in the MR. GAMBLE: Krs. Roosevelt or General Roosevelt. Air Corps. LT. LEVY: One or both. Exceilent. LT. LEVY: Would they go on? H.M.JR: Oh, sure. I'll ask her tonight at supper. H.M.JR: I'll ask her today. I'll let you know in She's at our house. the morning. LT. LEVY: As soon as you know, we'll make the LT. LEVY: That's very good. necessary plans. MR. GAM BLE: There are two other matters. H.M.JR: I mean, they're all Duchess County, and,"I'd like to hear from one of my neighbors, Mrs. Franklin H.M.JR: He's going to live up there too. He's Roosevelt." moving there to live, so they're both my neighbors. If I'm introducing them--if I'm master of ceremonies-I say, "My neighbor, Mrs. Roosevelt and my neighbor, General Roosevelt," RECISION TRADE MARK MICROSTAT MICROFILM ROLL NO. 25 - 13 - - 12 - 24 MR. GAMHLE: It sounded as though you were speaking but not, "My neighbor, Tom Dewey." in a hall. MR. GAM HLE: I was on a program with Tom last night. LT. LEVY: What network did we take? H.M.JR: Did he push you off the air? MR. GAMBLE: I can't answer that, Dave. MR. GAMBLE: No, ne pushed him off. H.V.JR: I'll be up at Poughkeepsie anyway. What time of day? H.M.JR: So, that's that, Sunday in the Park, or "Up in Central Park" it is, but not on the carousel, hub? MR. GAMBLE: They didn't give ne any day. And the Labor thing, and wasn't there a third one? H.M.JR: So long as It doesn't interfere with my MR. GAMBLE: Yes. Tie left it that we'd nee how it nap, horseback riding or my meals. Must I do that? worked out with the Marine Corps, whether we'd go any further with it. The story on it is that it would MR. GAMBLE: I think it's a nice gesture, Mr. necessitate an invitation and a designation from For- Secretary, and so long as the Canadian Finance Minister restal, this being a Marine case, for you to do it, and wants to do it, I think you should. I thought that was reason enough to drop it. H.M.JR: Well, what else? H.M.JR: It's dropped. MR. GAMBLE: That's everything we have. MR. GAMBLE: One other matter, Mr. Secretary. Some time ago I asked you about cutting you in for a H.M.JR: I was tickled to death with that statement minute or two during the day of June 15 on this Rochester yesterday on eight billion, one hundred and eighty-eight American-Canadian day, and you decided we could do it, million. but it was then abandoned. This norning we got a call from the Canadian Mar Finance people, saying that they'd like MR. GAMBLE: It got lost in a couple of papers to do it, and would we ask you again. They'll have the because of your black market story. (Laughter) Canadian Finance Minister, and ne'd arrenge to have the microphone brought right to your desk and have you H.M.JR: I don't like the accent. Mr. Gamble has talk 8. minute or 8 minute and B. half. insinuated several times I'm giving too much time to black market. H.M.JR: Yes. MR. GAMBLE: I'll teil you why that's 8. good story. MR. FELTUS: You will not have left? That's the kind that motivates editorial comment. H.M.JR: I'll be up at Poughkeepsie, either at the H.M.JR: Nobody wants ne in war bonds. I've got to do house, or I'll go up to the station. something in the papers. Nobody wants me, so I've got to find some activity. MR. GAMBLE: All right, sir. The station would be easier for that spot unless you particularly wanted us VR. GANBLE: We're day in and day out -- to put a line in. We get better broadcasting without the line. That line hean't worked too well a couple of H.M.JR: Nobody wants me so -- the black market times. seens to go, 80 there we go. But maybe you'll get more in the field on that. That's something everybody can H.M.JR: Didn't it work? Regraded Unclassified PRECISION TRADE MARK MICROFILM ROLL NO. - 14 - 26 - 15 - 27 put in a book. MR. GAMBLE: That's everything we have. MR. GAMBLE: Papers like the Times Herald, though, normally don't run anything like that on the front page. H.M.JR: Anything on your mind? H.M.JR: Who brought that in? You did? MR. GAMBLE: No. MR. LITTLE: Yes. H.M.JR: Are you all right now? H.M.JR: I was surprised. The Times Herald has MR. FELTUS: Yes. done several things recently. They wrote a very sweet article on Mrs. Korgenthau which surprised me. H.M.JR: Did you get off your lists? LT. LEVY: Very nice. KR. FELTUS: I'll have them ready. You can't use them until the stuff is printed. It won't be printed H.M.JR: A very nice article about her in the until the middle of next week. We're still working on Society column. the list. LT. LEVY: Yes. I 58% it. H.M.JR: Anybody have anything else? MR. LANE: Maybe their conscience is starting to bother them. MR. GAMBLE: They have some good people, mostly behind the door. They caught Cissy out of town. MR. LITTLE: The same with the Times Herald. They have no policy, just from day to day they change the trend and make the policy. H.M.JR. What else? MR. GAMBLE: That's all. H.M.JR: I'm very pleased. I noticed two, eight, eleven. Am I right? MR. GAMBLE: That's right. H.M.JR: Two, eight, eleven. MR. GAMPLE: You ought to know we'll get a minimum of seven and one half billion dollars. H.V.JR: On that day I'll not talk about black market. June 8, 1945 29 4:45 p.m. - 2 - EXPORT-IMPORT BANK BRETTON WOODS (Mr. Feltus leaves the conference.) Present: Mr. D. W. Bell Mr. O'Conneil H.M.JR: What is it all about? Mr. White Mr. Coe MR. COE: I think it was an inquiry from the Budget Mr. Bernstein Bureau about the Export-Import Bank which I mentioned to Mr. Feltus Harry, and he thought the Bretton Woods group ought to be Mr. Luxford brought together with you on it. Mr. Pehle H.M.JR: Oh, how do you do? Glad to meet you. H.M.JR: You sound like 8. lot of wolves. I thought MR. 00E: The Budget Bureau came over yesterday you went home. and said (a) they were preparing on the thought that Crowley was preparing to start his Export-Import Bank MR. FELTUS: I thought you wanted ne here. expansion next week. So that's the first problem, I think, that should be focused on. H.M.JR: Don't miss your train. MR. O'CONNELL: In the House? MR. FELTUS: I better run then, MR. COE: I think so, yes. The second problem is H.M.JR: I didn't ask you to come. that FEA and State, as they explained it to me, with the Budget concurring, are not prepared to recommend an MR. FELTUS: I got a message to come. increase in lending power for the Export-Import Bank of two point eight billion instead of one point five billion MR. WHITE: They asked for the Bretton Woods people. with which you had agreed. H.M.JR: What time does your train go? H.M.JR: Can't you make it three point two? MR. FELTUS: Five o'clock. MR. COE: That would make it three and one-half billion dollars. MR. WHITE: Be can nake it. MR. BELL: How much? MR. FELTUS: I can make it. If I miss the five o'clock train, I can get the six o'clock train. MR. COE: Three and one-half billion. They have seven hundred million. H.M.JR: Have you 8. seat? H.M.JR: I warn you I an not going to be too serious MR. FELTUS: I'll get it on the train. during my coca cola hour. MR. WHITE: You'll make the five o'clock train If you MR. COE: They also told me they thought Crowley stop talking and get going. was prepared to go along with this two point eight expansion, but had a little feeling that mybe two point three was enough. 30 - 3 - 31 MR. BELL: A three billion dollar bank. - 4 - MR. COE: Maybe that instead of what had been agreed upon, a two billion two bank. As far as the reason for MR. WHITE: You have asked for an opinion. One is to upping it, I think what mainly lies behind it is the decide on whether or not they ought to present this feeling of State that there are an swful lot of things matter before Bretton Woods, and I thought our under- to be taken care of in the next period, and in particular standing with Prowley and with State was it should not they now have the additional factor-- be done. H.M.JR: Say, Frank. Cut out the preamble. What MR. LUXFORD: That's cleared. do you want? MR. WHITE: That's cleared irrespective of the amount. MR. COE: A decision as to whether-- MR. 00E: It wasn't cleared with Crowley. H.M.JR: What do you want? MR. WHITE: It was cleared at the time of discussion. MR. COE: what do I want on this thing? I think I would prefer to hold to the original one point five MR. O'CONNELL: It was cleared that it would be billion expansion. behind Bretton Woods. That doesn't mean it was cleared with Crowley that he won't be able to start it in the (Discussion off the record.) House until Bretton Woods was through. MR. 00E: There are two factors. I think that the MR. WHITE: What does behind mean? bigger this thing is made, if it gets up to Congress at the same time as Bretton Woods, the more questions will MR. O'CONNELL: It wouldn't be considered by either Committee. be raised as to whether the whole story has been told to the Congress and the ballyhoo about Bretton woods. MR. WHITE: What was the reason? VR. BELL: The bigger question, it seens to ne is whether you ought to let his go up at all until Bretton MR. O'OCNNELL: To get Bretton Woods ahead. Woods is through. Some of my boys asked ne, and I said I would prefer to drop back to the lower figure, but I MR. WHITE: Get Bretton Woods over first. wouldn't fuss much about it. But I would say that what you said at your conference that It shouldn't be MR. BELL: It might be argued both ways. You could put in the hopper at all until Bretton Woods is through say behind, ,and, well,it could be introduced now in the Congress-- House and they could have hearings in the Committee. MR. LUXFORD: Why don't we take longer? If you go MR. WHITE: Well, but our reasoning at that time until they hold off-- was that it could only muddy the waters to have the subject of the Export-Import Bank raised at the same time, that there was nothing to be gained. They did not need the money urgently and there was no question of their getting it,and it was merely & chance of making it more difficult for us. That issue ought to be settled quite independently of the amount. 33 32 - 6 - - 5 . MR. WHITE: Mr. Crowley and yourself and I were here. I don't know whether anybody else was here, and he raised In the amount my own felling is we ought to stick two questions, the question of the amount, and he raised to the original amount because a billion and a half is the question of the timing. quite adequate for small loans they will have to make. They will make a lot of small loans and it isn't adequate MR. O'CONNELL: No. I was here, too, and it seems if there are going to be any big loans made to England the matter of the timing wasn't sufficiently cleared in or Aussia or France. My feeling is that that ought to the meeting, because after the meeting the Secretary be a Congressional matter and not a question for decision asked me to call Leo Crowley to be sure it was understood by the Export-Import Bank. that Bretton woods took priority, and I called him and he said of course he understood Bretton Woods went into the MR. COX: Congress isn't going to let them make hopper first. That was why I said I didn't think there great big loans on the discretion of the Bank. was ever an understanding with Crowley that nothing would - be done About the, Export-Import Bank until-- MR. WHITE: My own view is if they do well with a billion and a Congress will let them have some more. MR. WHITE: I am confused between his conversation They never have turned down a good request that the here and the conversation I had prior to that with him alone foreign policy of the State Department and the Treasury at the Jackson Day dinner. wanted to make on the grounds they haven't got the money, and they are not likely to do so, ither, H.M.JR: Something tells me you fellows have not H.M.JR: May I ask a question? had & preliminary meeting. MR. WHITE: Well, whoever told you that knew all MR. WHITE: All right. the facts. We have not had & preliminary meeting. I talked it over with Frank and we had agreed. I had H.W.JR: I was under the impression--maybe it is assumed there was no disagreement. wrong-that this. Jesse Wolcott had very strong feelings on H.M.JR: I think it would be helpful if you had (Mr. Pehle enters the conference.) had a preliminary meeting. MR. LUXFORD: Mr. Secretary, if I could say something-- MR. WHITE: He had with respect to the Administration. it doesn't seen to no it is too important. He wants to make it a separate agency and he wants to also to have its loans coordinated. Well, he accomplished the H.M.JR: You will have to raise your hand. latter. He wants now to make it a separate agency. MR. LUXFORD: All right, I will raise my hand. It MR. O'CONNELL: He has no objection to a billion and doesn't seem important whether this was fussy or not before- a half, assuming he has his way on & separate agency. hand. We know & lot more now than at the earlier time. What is your considered judgment as to whether or not MR. 00E: The American Bankers recommended a billion and a half. you want to throw that thing in the hopper now no matter what the figures. H.M.JR: Well, there is something in my mind. Were we agreed as to when this thing was going to go up. Does somebody know? Regraded Unclassified MICROSTAT MICROFILM BOLL NO. RECISION TRADE MARK 34 35 . 8 - - 7 - MR. PEHLE: Not as a member of the Committee. H.M.JR: You think we can think better if we are Remember, we had one meeting. fussy. MR. O'CONNELL: Just one. MR. LUXFORD: That isn't the important issue, whether there was an understanding at that time or not. H.M.JR: Over there, and what did we bring up at that meeting? Wasn't it this thing? MR. O'CONNELL: I agree. I wanted to point out I do not think, from any conversation I had heard, MR. O'CONNELL: We brought it up and the Committee Crowley had a distinct understanding. approved the whole list of projects. MR. WHITE: You may be right, but I had a con- H.M.JR: Wasn't it this particular thing we talked versation with him beforehand. about? H.M.JR: I love to flash something on this brain MR. O'CONNELL: That Bretton Woods would come ahead trust. It happens that I and everybody else in this of everything else, but my only point is what does that room has forgotten a Committee set up on legislation mean? of which Mr. Stettinius is Chairman. I just sent for it, and this very kind of thing would be 8. very MR. WHITE: What do you mean about coming ahead? proper thing to bring before this Committee if we knew we had the votes before we convened it. MR. BELL: That's where you're fuszy. (Laughter) H.M.JR: The one Mr. Grew didn't want to come to MR. 00E: I could tell you that you are outvoted ay office. on that Committee. MR. COE: I wasn't here then. H.M.JR: Do you know what Dean stands for? MR. WHITE: I was here. MR. COE: He stands for bigger expansion. H.M.JR: What happened? MR. WHITE: No, It's the timing of the legislation. They had nothing to do with that. MR. O'CONNELL: Just what I indicated. There were eight or nine bits of legislation Dean Acheson had, includ- H.M.JR: Timing? ing the St. Lawrence waterways and the food. And the only thing I know of that was decided was that Bretton Woods MR. BELL: He's for bigger and better loans. came first. MR. PEHIE: Me might be all right because he submitted MR. LUXFORD: Mr. Secretary, while Wolcott was giving to Bretton Woods. his speech on Bretton Woods, he was going this way. H.M.JR: The timing. Let ne call Dean up. (Indicating) MR. LUXFORD: On the timing, yes. Regraded Unclassified June 8, 1945 36 4:54 P. N. 37 - 9 - HMJr: We are accepting them and giving them. Mr. Dean Acheson: H.M.JR: Was he? On purpose? Well, that was wonderful. HMJr: Wasn't bad, eh? MR. LUXFORD: When the vote was going on he was going this way. (Indicating) A: I went around yesterday spent all day yesterday afternoon walking around those halls shaking H.M.JR: He was? hands with people. MR. PEHLE: I don't know how that's going to appear HMJr: Wonderful! in the minutes, Mr. Secretary. A: I called on almost every member of the committee. H.M.JR: This fellow on OPA gave ne some advice on HMJr: Wonderful. That 1e very nice. how to handle him. He never sat down and talked with Jesse Wolcott. So, I told him of Jesse and to come around At They were in great humor. They were so pleased to his house around five o'clock at night and have plenty with themselves. of bourbon. He never sat down and talked to him. HMJr: Well, we ought to have another party soon. MR. WHITE: Jesse has the reputation of having the A: Oh, they'd love 1t. same view. HMJr: Well, I appreciate all you did, Dean, more than MR. *CONNELL: He did, last ywar. I can say. MR. BELL: Everybody in the House, certainly on the At Well, I'll keep after it, Henry. Banking and Currency Committee-- HMJr: Well, now - what I'm calling up about 18 this. H.M.JR: He is establishing 8. Foreign Economic We're sitting around here talking about the Import-export or rather the Export-import bank, Policy Board. as to when it comes up, see? (The Secretary holds a telephone conversation with A: Yeah. Dean Acheson, as follows:) HMJr: The Bureau of the Budgets have some communication with our people. Now I'm not arguing how big it is, but I have grave doubte as to whether it would be wise to have that before Congress the same time with Bretton Woods and Lend-Lease, and whether the Export -import legislation shouldn't be held back until at least we get Bretton Woods out of the way. Now with all these figures, they are not going to add them all up, you see? A: Yes. HMJr: And I wanted your advice. Regraded Unclassified RECISION TRADE MARK MICROSTAT/ MICROFILM ROLL NO. - 3 - 39 - 2 - 38 A: Yes, I think ve will. And I'm not quite A: sure where everybody stands over here, but Well, now, I vas going to talk with Clayton about that. I'll get hold of Will. HMJr: Yeah. HMJr: Well, we'll sit tight until we hear from you. A: He went off to Chicago and will be back tomorrow, A: All right, fine. HMJr: Yeah. HMJr: Thank you very much. A: Suppose I get hold of his. I have the same fears A: Henry, there is one other thing. that you have. HMJr: If you please. HMJr: See what I'm afraid of - they'll take whatever it 1s, six billion for Lend-lease, and nine billion At What? for Bretton Woods, three billion for whatever it 18, export- and they'll total them all up. And I HMJr: I said if you please. don't see why export-import couldn't valt a little while until we got our thing through the Senate. A: I vas talking to Joe O'Connell this morning. And I think it is going to hurt Lend-Lease too. I don't see the rush. HMJr: Yes. A: At And I reported to his that I had talked with Well, I think there 1e a great deal in that. There Barkley and Mr. Hill. is some rush because in order to get on with any talks with the Russians or anyone else, you've got to have some money. HMJr: Yes. HMJr: On the export-import? A: And they are all in a state of enthusissm now to keep these hearings fairly short and then A: Yeah. get this thing through quickly while we have got all the enthusiasm, and this big vote and HMJr: Well, I just didn't know that vas in the wind. the popular interest in it. A: Well, I don't know that it is, but it can't be HMJr: Yes. in the wind until they get some money somewhere. A: So the leadership is in good shape on that. HMJr: Well, ....... Well, there 1e one problem. A: Anyway, I do not think it ought to be introduced HMJr: Please. until we have made a very careful canvass. A: And Biffle said he would think that over and give HMJr: us some advice on it. Joe and I both agreed this Will you? Then another --1f we have & mee..ng of minds between State and Treasury then we can morning that as a debater that Senator Wagner is call a meeting of that not going to be terribly wise about this. A: Legislative committee? HMJr: No. HMJr: Yeah. But I didn't want to call them together A: Because he doesn't know very much, and he ought to have a senior Democrat - not a freshman - but until I knew where we stood. somebody who will go to work. At Yes. HMJr: Yeah. HMJr: See? But I think we will have trouble with Crowley. Regraded Unclassified RECISION TRADE MARK MICROSTAT/ MICROFILM ROLL NO. - 4 - 40 41 . 10 - A: Be said he would make a recommendation on Monday and I could talk it over with you, and then we could get this fellow and educate him 80 he can MR. WHITE: I have already gotten in touch with do the work on the floor. It will have to be worked out with Barkley and Wagner. Senator Radoliffe. He is going to give me a ring either today or tomorrow to meet ne Sunday or Monday. HMJr: Well, I talked to President Truman about that He wants to go over the thing. and he went over the list of the committee himself with me, and he vas very much worried. MR. O'CONNELL: The Committee is awfully weak on He thought the best man would be the Senator the Democratic side, as we all know. from Maryland. H.M.JR: Would you people be agreeable? I would A: Radoliffe? like one or two of you, maybe Monday afternoon to come HMJr: Radoliffe. If we could get his enthused. to the house and sort of drill ne and go over the statement for Bretton Woods and then have a little A: Well, I think we might. bit of questions and answers. HMJr: And he said that was his thought. MR. WHITE: Yes. That's a good refresher course. At Yes. Well, that 1s a good suggestion. H.M.JR: Oh, I an all full Monday. Wait a minute. HMJr: And let's see what Biffle comes through with. No, I am not. I can do it Monday. I'll do it Monday morning at nine-thirty. A: All right, Henry. MR. WHITE: I have nade an appointment with Senator HMJr: But I agree that Wagner needa some bolstering Downing for Monday morning at nine-thirty. up. H.M.JR: That's all right if I can have Eddie A: Yes,he does. Bernstein and Luxford, the two of them. HMJr: Well, I'll be hearing from you. MR. BERNSTEIN: Do you want to go over the draft A: All right, fine. we have and statement before Monday or wait until Monday morning? HMJr: Thank you 80 much. H.M.JR: I think we'll do it altogether. I'll save A: Ies, sir. all of Monday morning. I won't make any other appointments. Mobody has to work on Sunday, but from nine-thirty to twelve on Monday I'll just save. This is, I think, the intelligent way of doing it, and you can see Dean was bothered. I thought throwing in and adding up the three things was a good touch. VR. LUXFORD: Taft is going to start adding them if we don't. Regraded Unclassified RECISION TRADE MARK MICROSTAT/ MICROFILM ROLL NO. - 2 - 43 June 8, 1945 42 5:06 P. M. HMJr: Vell, I think we are coming over with good strong backing, and I don't believe there 18 going to be too much opposition. HMJr: Hello. T: Now I went and talked to Taft today about it Senator because I felt that he could get Tobey: Charles Tobey talking. on the hearings a good deal. He 1e a little loath to go along. He said he wanted to con- HMJr: How do you do. duct a very interesting examination for pro- ponents of the measure. T: Just called up to say to you on the progress made so far that House vote vas a HMJr: Yes. pleasing thing, waen't 1t? T: Not as the opponents but the proponents. HMJr: Wonderful. HMJr: Yes. T: And also I as pleased to think that a number of Republicans saw the light enough to go along. T: And so he hasn't dared a course. That will be a simple matter. Charlie Taft's HMJr: I should think it will be most helpful when it attitude 1e such & contrast it 18 sort of a gets over in the Senate. delight, 1sn't 1t? T: Yes. I sited that to my Republican colleagues HMJr: Well, Senator Taft can start on me Tuesday. at luncheon that fact, and one of them was rude enough to say they didn't know what it vas all T: Yes. Vell, we'll aot as a buffer state. about. Well, I thought that vas & general in- dietment, but the party himself doesn't - but HMJr: I'm counting on you. they are going to see you next Tuesday, I assume. T: All the help I can give you. HMJr: Right. Well, I told Jesse Wolcott, I said if you don't mind my saying so, I think you have HMJr: Thank you. done the Republican Party a great service. T: Any suggestions please bring them along and T: There ien't any question about it. I was pleased I'il embody them there. that Tom Dewey came out on our side. HMJr: Thank you. HMJr: Yes. T: Any question you want to ask or any particular In New York. thing brought out, if I have the lead I'll come T: across. HMJr: Yes. HMJr: Thank you so much. T: You know it vas Tom Dewey that said to me at the Statler Hotel some three months ago at a T: Good luck to you. reception that he was against it - that we were giving away a lot of money, etc. HMJr: Thank you. HMJr: Yes. T: How 1e the wife? T: I wrote him back today a letter HMJr: She's 1s making progress, thank you. and told him I vas glad to see that he had had a change of heart and had seen the light. T: Has she come home yet? Regraded Unclassified June 8, 1945 45 5:10 P. M. - 3 - 44 HMJr: Hello. HMJr: Yes, she's home. Mr. Tom Clark: Hello, Mr. Secretary. T: Well, that 18 fine remember me to her. HMJr: How are you? HMJr: Thank you, Senator. C: Pretty good, sir. I appreciated your note T: Thank you. very much. HMJr: Good. Mr. Clark - the reason I'm calling you is this. We had some inquiries around here the last few days about your income tax and all that. See? C: Yes, sir. HMJr: And I want you to know that the people inquired, and I told them that as far as you were concerned in the Treasury that we absolutely had nothing. C: Well, bless your heart. HMJr: And that any story that they were suggesting was pure figment of the imagination. O: Well, bless your heart, Mr. Secretary, that is sighty nice of you. HMJr: I want you to know that the story that appeared in Drew Pearson today.. I know nothing about it - never heard about it, and nobody in the Treasury did. C: Well, that's mighty nice of you, and I do appre- clate your telling me. HMJr: I don't know what Drew Pearson is talking about and it certainly did not come from here. Another reporter came around yesterday - somebody had filled him full of stuff in your law firm - and told ne some stuff and I said it is perfectly ridiculous-whatever you have been told is not true. C: Thank you. I appreciate your backing then for me. HMJr: Well, I don't know - somebody 1s trying to make some trouble for you, but I don't know where it is coming from. - 2 - 46 C: Well, I'd heard some rumore around - Speaker Rayburn, and then Senator Hatch told me he had heard some the other day. HMJr: Well 0: I do appreciate it, Mr. Secretary, and I shall never forget it. HMJr: Vell, I want you to know that, and I vs.e very, very emphatic. If you want at any time to refer anything to me of that nature, and want ne to make a public statement, I'm prepared to do 80. 0: Vell, thank you 60 much. I do appreciate it. HMJr: Right. 0: Bye. HMJr: Bye. = RECISION TRADE MARK MICROSTAT 116. U. PAT. OFF. MICROFILM ROLL NO. 48 2 for it lane been sequired by lde central bank. Voder Section 2, 6 JUN 1945 the currency represents the accruing proceeds of current trade and 1a being presently sequired or will be acquired in the nom future by a private trader. Under flection 4 the currency belances have Sty dear Sir Johns already been sequired by a central bank, and they may represent inlances resulting from recently completed transactions or even This is in reply to your letter of February 1, 1945 inquiring telances long accumilated from part transmations. about a possible incomistory between Section 2(a) and Section 4(b) of Article VIII of the Fund. The financial obligations contemplated by the to sections are of a different order. By their nature, the - involved in 1 can 800 no inconsiatency whatever in these sections. Article lection 2 are coderate in amount) the - involved in Section 4 VIII Section 2 is designed to assure people engaged in international may be envirous in amount, fur they can include the secumlated business that no nember of the Fund will prevent their being paid for inlances of years. Am a practical atter, a country - be salod the goods they export and for other current obligations. The section not to restrict payments and transfers to traders for current states, subject to specified qualifications, that "no nember shall, transpotions. On the other hand, the burden of correcting large without the approval of the Fund, impose restrictions on the saking socumilated belances held by foreign contral banks may be too great of payments and transfers for current international transactions." for a country vhen 1% carnot secure the help of the Fund. With this provision international business can proceed without the restrictions that would result from the imposition of exchange These are the Pensons why restrictions en current regments controls on current transactions. may not be imposed without the corsent of the Pund except in the timo - specified in Section 2, although the convertibility of The exceptions to the general principle of Section 2 are enser- inlances held by foreign central benks our be restricted when a ated very clearly and in undetainble term. If a currency should country no longer has 800000 to the Fund and under the other confi- be declared scaroo, & sective my impose restrictions in accordance tions specified in Section 4. with Article VII, Section 3(b); and any country covered by the tron- sitional arrungements may during the transitional period saintain Am you are mare the distinction between these sections of Article VIII do not become significant until the end of the transf- and adapt to changing circumstances wartine restrictions on paymente and transfero for current international transactions. lio other tional period and my not be of consequence then. exceptions to the general principle of Section a are specified because, I believe, no other exceptions were intenied. le have explained these pointe in prester detail sometime ago in conversations with Trand and lb. Opde. Section 4 of Article VIII doals with a different problem. Under this section each member (or its central bank) 1a obligated to buy Sincerely yours, balances of its currency held by another number (or its central bank) if the belances have been recently acquired as a result of current transactions or the conversion of these balances is needed for mking /a/ H. Morgenthau, Jr. payments for current transactions. There then follow the conditions under which the obligation does not apply, all of the exceptions being specifically listed. In our view Section 2 and Section 4 have different obligations the 11ght Honorable Sir John Anderson, to neet different problems. Section 2 is concerned to see that an Chareellor of the Exchequer, exporter in assured of payment for his exports in his own currency. the F. Treasury, Under Section 4. the exporter no longer came the foreign currency, Coorge Street, London, S. 1. 1, England. 5/30/15 Regraded Unclassified RECISION TRADE MARK MICROSTAT REG. o, PAT. OFF. MICROFILM ROLL NO. lst February, 1945. S. of A question has stisch the interpretation of a certain clause in the Pinal Act of Bretton Woods which is causing me GOEIG difficulty and perplemity. It arises out of a possible conflict or inconsistency between Section 2(a) and Section 4(b) of Article VIII of the Fund. This has been alrendy the subject of come discussion between Lord Keynes and Mr. White. The essential point 18 this. The obligation under VIII h(a) Ispees under VITIA(b)(V) if the number has exhausted his facilities with the Fund. In attch circus- stances, therefore, he resimes his discretion non car and for how long he chall continue to exhaust his ultimate gold reserves by maintaining de Cripto convertibility. I shell be expected to explain whether this is in any way undone by VIII 2(a), with the result that, in the The Rt. Hon. Henry Lorgenthau, Jr. /sbove MICROSTAT/ REG. v. 5. PAT. OFF, MICROFILM ROLL NO. RECISION TRADE MARK 50 50.a document or spion bad not been understood and accepted by 11 those the had signed it. I propose, therefore, to assure Parliament, when the time comes to socit itc judgment, that they are not weing baked to accept any obligation beyond what clearly above the discrettics - The - agreement on the face of the document, and that we shall instend of to the - up To aut have to regard a astisfactory clearing up meanwhile of member whall be any possible ambiguity in the drafting sa one or the (which represent . country check sovential conditions prerequisite to our being in including wur) before AT without. " position to accept eventual convertibility under - should DE Article XIV. optant - the obligation of - CLVB Parliament ACCE clear TE - orfication in John this respons 11 aur De TAX BUSINE that, in the avent - at below your very percery saked to give 1 Codicion waser vin of constitution of the com. there vill Le no qualion of imposing by subtle inter Potation Aig obfigation which AND not appeared shorri, and en the face of the / de supent Regraded Unclassified PRECISION TRADE MARK MICROSTAT/ 886.U.S.FAT.OFF. MICROFILM ROLL NO. 52 57 8 JUN 8 JUN 1945 Dear it. Barry: I as certain that the endorsement Dear Mr. Baldwin: (iven to the Tretton Woods Agreements by the House can be attributed in substantial The cause of international coopera- part to the help you provided in working tion was tremendously encouraged by the out amendments satisfactory to the minority heavy favorable vote of the liouse on the members of the Banking and Currency Com- Bretton Woods bill and I want to thank mittee. I an very grateful to you for your you for the important part you played in efforts in behalf of this legislation which obtaining this endorsement. I sincerely believe will E° a long way toward giving us real international Sincerely, cooperation. Sincerely, (Signed) H. Margonthew, Jr. (Signed) H. Morgenthau, 4a. Honorable H. Streett Baldwin, House of Representatives, Honorable William B. Barry, Washington 25, D. C. House of Representatives, Washington 25, D. C. RB:10] RB:iej 7/6/45 7/6/45 Regraded Unclassified PRECISION TRADE MARK MICROSTAT/ MICROFILM ROLL NO. 54 JUN 1945 8 JUN 1945 Dear hr. Brown: as I as about the extremely favorable I an sure that you are as pleased Dear Mr. Brumbaught vote which the House (ave the Bretton Woods Mll. I know that this is due in It seems to me that the action in the no small part to your untiring effort at House on the Pretton Woods proposals will the hearings and on the floor, and do a great deal to promote International particularly in working out amendments to cooperation. I am deeply gratified that the the bill that satisfied the doubts of the House has approved the Agreements on a non- Currency Committee. Republican members of the Banking and partisan basis and I want you to know that I appreciate your efforts to attain this result. Sincerely, Sincerely yours, (Signed) H. Morgenthau, Ja. (Signed) H. Morgenthaw, 4a. Honorable Paul Brown, Honorable D. Emert Brunbaugh liouse of Representatives, Washington 25, D. C. House of Representatives 7/8/45 83renner:or 6/7/45 Regraded Unclassified 56 8 JUN 1945 8 JUN 1945 Dear Mr. Folger: Dear Mr. Crawford: I want to thank you for your out- standing work in connection with the I know that the bi-partisan vote Bretton Woods bill. I know that the job on the Bretton Woods bill was due in large you did on the Committee and again on part to your able efforts to keep the the floor had & great deal to do with the proposals from becoming & party Issue. large vote that the Bouse cast. I believe that the resounding approval of the House will do & great deal to promote Sincerely, real international cooperation and I want you to know that I sincerely appreciate the fine work you have done to bring about (Signed) H. Morgenthaw, Ja. this gratifying result. Sincerely, (Gigned) H. Morganthaw 3 Honorable John H. Folger, House of Representatives, Washington 25, D. C. Honorable Fred L. Cranford, House of Representatives, Washington 25, D. C. RB:1e] RB:iej 7/6/45 7/6/45 RECISION TRADE MARK MICROSTAT/ MICROFILM ROLL NO. 57 58 8 JUN 1945 8 JUN 1945 Dear Bob: Dear Mr. Ganble: I believe that we can all be justly I just want to "note for the record" proud of the endorsement which the House my sincere appreciation for all you are given to the Pretton Woods proposals. doing with the Bretton Woods bill. The has size of the vote will do a great deal and to promote international cooperation I want to extend to you ay thanks for your Woods bill by a vote of.345 to 18, This as I was that the House passed the Bretton I know that you were just as pleased able assistance in bringing about this result. demonstration, in V opinion, will be for international cooperation. invaluable assistance to all projects Sincerely, (Signed) H. Mergentheu, de. Sincerely yours, (Signed) Henry Honorable halph de Camble, Honorable Robert E, Hannegan House of Representatives, Mayflower Hotel Chairman, National Democratic Committee Washington 25, D. C. Washington, D, C, RB:1e) 7/6/45 RB:AFL:ehb 6/8/45 Regraded Unclassified RECISION TRADE MARK MICROSTAT MICROFILM BOLL NO. 59 60, 8 JUN - 8 JUN 1945 Dear Mr. liays: Dear Mr. Hoch: I want to thank you for the fine Job you did in connection with the Tretton Everyone who has been interested Woods bill. I know that the large non- in the Bretton Woods Agreements is, of partisan vote of the House was due prin- course, very gratified by the fine vote cipally to the untiring efforts of you and cast by the House. I want to thank you your colleagues on the Banking and for the very substantial help which you Currency Committee. gave us in presenting the case for Bretton Woods. Sincerely, Sincerely, (Signed) H. Morgenthew 4 (Signed) H. Morgenthaw, Jr. Honorable Prooks Hays, House of Representatives, Honorable Daniel K. Hoch, Washington 25, D. C. House of Representatives, Washington 25, D. C. R3:1e] RB:1e] 7/6/45 7/6/45 Regraded Unclassified RECISION TRADE MARK MICROSTAT MICROFILM ROLL NO. 62 - 8 JUN 4945 8 JUN 1945 Dear Mr. Hullt Dear Mr. Kilburn: The non-partisan vote of the liouse on the Bretton Boods Agreements is a The non-partisan vote of the House source of great satinfaction to se and I on the Bretton Boods M11 proves conclusively an sure that your reaction is much the to ae that proposals on international same as mine. I want you to know that I cooperation will receive from Congress the appreciate the spirit in which you con- kind of consideration that they deserve. sidered the proposals and the contribution I want you to know that I appreciate very you naée to this fine endorsement of the much the work that you have done to nake plan. this possible. Sincerely, Sincerely, (Signed) H. Mergenthalt, Jr. (Signed) H. Morgenthau, Ja. Honorable Clarence 1. Kilburn, Honorable Merlin Hull, House of Representatives, House of Representatives, Washington 25, D. C. Washington 25, D. C. RB:10) [ 7/6/45 RB:1ej 7/6/45 Regraded I Inclassifi 63 64 8 JUN 1945 8 JUN 1945 Dear Mr. Kunkel: Dear Johns I want to thank you for the fine work you have done in bringing about the I want to express to you my sincere overwhelming vote of the House on the Bretton Woods bill. It is extremely thanks for the fine work you have done on gratifying to 36 to see this non-partisan endorsement of & proposal for international the Bretton Woods legislation. The over- cooperation and I know that your feeling whelming vote of the House will, I believe, about it le similar to mine. Sincerely, greatly encourage people all over the world who I are striving to create conditions in which peace (Gigned) H. Morgenthau, Jr. and prosperity will flourish. Sincerely yours, Honorable John C. Kunkel, House of Representatives, (figned) Henry Washington 25, D. C. Honorable John W. McCormack House of Representatives RB:1ej RB:ALF:ehb 7/6/45 6/8/45 rade RECISION TRADE MARK MICROSTAT/ MICROFILM ROLL NO. 65 66 ) 8 JUN 1945 8 JUN 1945 Dear Mr. Menroney: I want to thank you for the fine Dear Mr. Outland: work you did In connection with the Pretton Woods bill. The enormously favorable The action of the House on the votewas, I know, due in large part to the Bretton Woods bill seems to se to be the labors of you and your colleagues on the most helpful sign for the future that has Banking and Currency Committee. been given to the American people in a long time. I know that you, too, must be Sincerely, greatly encouraged by the result and I want to thank you for your extremely able work during the Committee's consideration $ of the bill and again when the legislation (Signed) H. Morgenthaw, Ja. was on the floor. Sincerely, (Signed) H. Morganthan, Jr. Honorable A. S. Vike Monroney, House of Representatives, Washington 25, D. C. Honorable George E. Outland, House of Representatives, Washington 25, D. C. RB:1ej 7/6/45 RB:1ej 7/6/45 PRECISION TRADE MARK MICROSTAT/ 68 67 JUN 1945 8 JUN 1941 Dear Wright: Dear Mr. Quinnt I want to express my appreciation of I appreciate very much your able the fine work you did in connection with the assistance la the consideration by the House of the Pretton Woods Agreements. I believe that the fine endorsement which Bretton Woods bill both in the Committee and the House (ave them is a demonstration to the world that America intends to on the floor. Your loyal support was, indeed, cooperate fully with its neighbors when a strong contributing factor to the size of the war is over. Sincerely, the final vote. Sincerely, (Signed) H. Morgenthew, Jr. (Signed) Honry Honorable Peter 4. Ginn, House of Representatives, Washington 25, D. C. Honorable Wright Patmen, House of Representatives, Washington 25, D. C. RB:AFL:ehb 6/7/45 7/6/45 69 70 8 JUN 1945 8 JUN 1945 Dear Mr. Ramspeck: Dear Mr. Rainst I know that every one who has worked on the Bretton Goods bill is extremely I sincerely appreciate your con- pleased at the tremendous vote of approval tribution to the fine endorsement of cast by the Bouse. This action seems to Bretton Woods which has been given by ae to be important not only because of its the House. I feel certain that the size effect on the Bretton Woods proposals, but of the vote will do a great deal to assist also because I believe that It will all other efforts which are being made stimulate and encourage those who are to establish a. solid foundation for engaged in working out other plans for international occparation. achieving & peaceful and prosperous post- war world. Sincerely, I want to thank you for the fine work that you have done in connection with this legislation. (Signed) H. Margenthew, des Sincerely, (Signed) H. Mergenthaw, Jr. Honorable Albert hains, House of Representatives, Washington 25, D. C. Honorable Robert kanspeck, lieuse of Representatives, Washington 25, D. C. RB:1e] 7/6/45 RBriej 7/6/45 Regraded 71 72. 8 JUN 1945 8 JUN 1945 Dear Sams The House vote on the Bretton Woods bill Dear Mr. kiley: is & great victory for the cause of international cooperation. I believe that it will do a great I want you to know that I sincerely deal to facilitate America's participation in appreciate the help that you have given all of the pending proposals to establish a us in presenting the case for the Tretton peaceful and prosperous world. Woods Agreements to the House. I an sure that you are as deeply gratified as I an I as extremely gratified to you for all the lg the fine result which has been obtained. work that you have done to achieve this result which is the source of great personal satisfaction Sincerely, 1 to m. (Signed) H. Morgenthau, da. Sincerely yours, (Signat) Beary Honorable John J. Riley, House of Representatives, Washington 25, D. C. Honorable San Rayburn Speaker of the House of Representatives Washington, D. C. RBrenner:er 6/7/45 PRECISION TRADE MARK MICROSTAT MICROFILM ROLL NO. 13 14 / 8 JUN 1945 8 JUN,1945 Dear Brent: Dear Mr. Sundstrom: The extremely favorable vote of the I want to thank you for your fine work House on the Bretton Woods bill is a source in connection with the Bretton Woods bill. of great satisfaction to all of us who have I know that you are as deeply gratified as been concerned with its progress. I want I an by the overwhelmingly large vote by the to express to you my appreciation of the House, This action will, in my opinion, add fine work which you and your Committee have a. great deal to the cause of international done in achieving this great demonstration cooporation. of America's intention to cooperate with the United Nations after the war. Sincerely yours, Sincerely yours, (Staned) Berry (Signed) H. Morgentham 4 Honorable Frank L. Sundstrom Honorable Brent Spence House of Representatives House of Representatives RBrenner: or 6/7/45 RBrenner:cr 6/7/45 RECISION TRADE MARK MICROSTAT/ no. M. PAT. OFF. MICROFILM ROLL NO. 75 76, s 8 JUN 1945 8 JUN 1945 Dear Mr. Talle: The House of Representatives has shown the Dear Mr. Thom: world that the United States intends to cooperate fully with the United Nations after the war by In its vote on the Iretten Woods overwhelmingly approving the Bretton Woods Agree- bill the House gave the world a great ments. I want to thank you for the large part demonstration of America's intention to you played In keeping these proposals from be- cooperate with other nations in the estab- coming a party issue and thus achieving this fine lishment of a peaceful and prosperous result. post-war world. The effectiveness of this demonstration was due, I an sure, to the fine work which you and your fellow Com- Sincerely yours, mittee members did during the hearings and the debate and I want to extend ay thanks to you. (Signees) M. Morganthau, Jr. Sincerely, Honorable Henry O. Talle (Signed) H. Morgenthaw, Jr. House of Representatives Honorable William L. Thom, House of Representatives, Washington 25, D. C. Altiej RBrenner.. 6/7/45 7/6/45 Regraded Unclassified PRECISION TRADE MARK MICROSTAT/ MICROFILM ROLL NO. 78 77 8 JUN 1945 8 JUN 1945 lear Mrs. Woodhouse: Dear Jesse: I feel certain that you are as happy People everywhere in the world sho are working for real international coopera- as I amabout the approval of the Bretton tion have been greatly encouraged by the action of the louse on the Bretton Woods Woods proposals by the House. I know that agreements. I want you to know that I - extremely grateful to you for the fine job you have labored for & long time to achieve that you die as & zenber of the Banking and Currency Committee in connection with this fine bi-partisan endorsement and I want this legislation. you to know that I an extremely grateful for Sincerely, the great job that you have done. (Signed) H. Mergentheu, Jr. Sincerely, (Signed) Manry Honorable Chase Going Woodhouse, House of Representatives, Washington 25, D. C. Honorable Jesse P. Wolcott, House of Representatives, Washington 25, D. C. 13:1e] RB:iej 7/6/45 7/6/45 Regraded Unclassified 79 25, 8 JUN 1945 Dear Dr. Kungs I as most pleased to learn that you are recovering from your operation. with regard to the requests for the trans- for of $60 million from China's credit <ith the U. S. Treasury contained in your letter of April 28, 1945, I - clad to Inform you that the necessary instructions have been given to transfer 035 million to be used for the purchase of bank notes. with regard to the 025 million for the pare chase of textiles, I shall be glad to have transfers made up to this amount at such times as the purchases are made, with best wishes for your speedy recovery. Sincerely yours, (Signed) H. Morgenthau, 4a. Honorable 11. H. RUDG, Room 4201, Waldorf-Astoria Notel, New York, New York. ISF:df 6/1/45 80 TREASURY DEPARTMENT INTER OFFICE COMMUNICATION DATE 7 June 1945 2 Secretary Morgenthau FROM Mr. Coo " Subject: Chinese request for 860 million to purchase textiles and bank notes. 1. No have had under consideration for 2000 time, a request from Dr. Rung to permit the Chinese to use $35 million of their credita for the purchase of bank notes and an additional $25 million for the purchase of textiles. It had been decided to delay action on this request until we had finished our negotiations with Dr. Soong. 2. The Chinese have already placed orders for bank notes totaling about $35 million. 3. In connection with the request to use $25 million for the purchase of textiles, we have been informed by the Parsign Economic Administra- tion that the off-shore purchases of textiles in Brazil and Mexico, for which the Chinese will pay cash, will total about $20 million. = :- I an attaching suggested poply to Dr. Kung on these requests. 0 RECISION TRADE MARK MICROSTAT MICROFILM ROLL NO. 81 AUTH: Pivesi Director SECRET INITIALS: ags DATE & Continued. will make all necessary arrangements to transport the gold to the New York Port of Rebarkation to arrive at the time and place requested by Colonel Wiggin with insurance effected by the final consignee. The Commanding General, India-Burma Theater will be advised by The Honorable, War Department radio the number of the vessel on which the leege were loaded with request that arrangemente be made for the acceptance and The Secretary of the Treasury. delivery India. of the kage to Mr. F. P. Ling, Manager, Bank of China, Calcutta, Dear Mr. Secretary: Sincerely yours, This is in further reference to your letter dated 16 May 1945 relative to the shipment of gold to China. (Signed) 1. H. CARTER This will confirm arrangements made through this office for the A. H. CARTER shipment of an additional four lots which is a portion of the amount Major General, 08C allocated for June shipment by water, details of which have been Fiscal Director furnished by telephone to Mr. Lipman's office, Lot No. 1 consisting of lab kags serially misbered CBC 535 through cac 578, with a total weight of 10,400 pounds, dis- placing lab cubio feet, with a total value of $4,993,410.97. Each keg should be marked BENT-L-OFD-OFD 161. Lot No. 2 consisting of lale kegs serially mmbered CBC 579 through CRC 622, with a total weight of 10,400 pounds, die- placing dela embio feet, with a total value of $4,977,520.88. Each keg should be marked BENT-L-OFD-OFD 162. Lot No. 3 consisting of lake lenge serially numbered CBC 623 through CBC 666, with a total weight of 10,400 pounds, dis- placing his cubie feet, with & total value of $4,970,470.47. Each keg should be marked RENT-M-OFD-OFD 163. Lot No. à consisting of lab logs serially musbered CBC 667 through 080 710, with a total weight of 10,400 pounds, die- placing Male cubie feet, with a total value of $4,989,859.42. Each keg should be marked HENT-W-OFD-OFD 164. / It 1a understood that each lot will be held at the Federal Reserve Bank in New York on call from the New York Port of Embarkation. LA. Col. Morrill Wiggin, 70, Ber York Part of Babarkation, Telephone Windsor 95400, has been requested to advise Mr. Peter Lang, Federal Reserve Bank, Bew York, as to the exact time and place of delivery for each lot. It is then understood that the Treasury Department SECRET Regraded Unclassified MICROFILM ROLL NO. 83 > TREASURY DEPARTMENT INTER OFFICE COMMUNICATION DATE 8 June 1945 TO Secretary Morgenthau FROM Mr. Coo Subjects U. 5. Army expenditures in China. 1. We have now thoroughly discussed with the Chinese the question of U. S. Army expenditures in China. We have not been able to secure agreement on a set of figures. It is felt, however, that uo could proceed with the negotiations since there 10 & substantial area of agreement. 2. We are informed by the Chinese representatives handling this matter that both Dr. Soong and Dr. Kung feel that Dr. Kung should continue to handle this matter as in the past. 3. Dr. Kung to not coming in tomorrow to raise any matter of business with you. It is suggested, however, that you may wish to indicate $ to him that 10 are prepared to begin discussions with him on the amount of U. S. dollars which should be paid to settle U. S. Army expenditures in China during the last quarter of 1944. RECISION TRADE MARK MICROSTAT/ REG. V. 5. PAT. OFF, MICROFILM ROLL NO. 84 85 8 JUN 1945 8 JUN 1945 Dear Admiral Halsey: Dear Admiral Nimita: I want to thank you most sincerely for the excellent statement you made available I want to thank you most sincerely for to the Treasury for our use in promoting the 7th Mar Loan Drive. The newspapers of the the excellent statement you made available nation gave it splendid front page coverage, to the Treasury for our use in promoting the and I am sure it will be helpful to us in 7th Har Loan Drive. The newspapers of the reaching our high quotas for the drive. nation gave it splendid front page coverage, and I an sure it will be helpful to us in Sincerely, reaching our high quotas for the drive. Sincerely, (Signed) H. Morgenthau, Jr. (Signed) H. Morgenthew, Ja. Admiral William F, Malsey Commander Third Fleet U. S. Havy Admiral Chester W. Nimits Navy Department Commander-in-Chief, Pacific Fleet Washington 25, D. C. Navy Department mashington 25, D. c. 50Lteb SOLteb Regraded Unclassified PRECISION TRADE MARK MICROSTAT MICROFILM BOLL NO. 87 86 8 JUN 1945 8 JUN 1945 Dear General Clark: Dear General Doolittle: I want to thank you most sincerely for the excellent statement you made available I want to thank you most sincerely for to the Treasury for our use in promoting the the excellent statement you made available 7th war Loan Drive. The newspapers of the to the Treasury for our use in promoting the 7th War Loan Drive. The newspapers of the nation gave it splendid front page coverage, and I an sure it will be helpful to us in nation gave it splendid front page coverage, reaching our high quotas for the drive. and I an sure it will be helpful to us in reaching our high quotas for the drive. Sincerely, Sincerely, (Signed) H. Mergenthaw, Jr. (Signed) H. Morgenthau, 4a. General Mark ". Clark Lieut. General James H. Doolittle Commanding General, 15th Army Group The Pentagon Commanding General, Eighth Air Forces The Pentagon Washington 25, D. C. Washington 25, D. C. SOLteb SOLieb Regraded Unclassified MICROSTAT/ MICROFILM ROLL NO. RECISION TRADE MARK 87 89 25 25 8 June 1945 e June 1945 My dear General Tradley: It vas with the greatest pleasure that I learned Ky donz General Bradleys of your supointment and I vant to harten to congratu- late you upon 11. I cannot think of anyone who would It vas with the greatest pleasure that I learned full this important and onsrous post to more complete of your appointment and I vest to hasten to congratu- and gemuine satisfaction, and while I know that you late you upon 11. I cannot think of nayone vho vould vill find many difficulties abond of you, I an ware fill this important and enerous post to more complete that you also vill ably carry out the dubies of the and gemine satisfaction, and vidle I love that you position, and that the affairs of the Veterans vill find may difficulties aboad of you, I an sure Administration vill e forvard successfully under that you also vill ably carry out the duties of the your direction. The Administration is to be congrato- position, and that the affairs of the Voternas lated upon your sceeptance of this appointment. Administration vill & forward successfully under your direction. The Administration 1s to be congrato- I shall look forward to our associations here in loted upon your neceptance of this appointment. Vashington and hope that you vill call upon ne If at any time I can be of service to you. I shall look forward to our associations here in Veshington not hope that you vill call upon ne if at my time I onn be of service to you. Sincerely, Sincerely, (Signed) H. Margenthau, dr. (Signed) H. Mergenthau, de, General Oner N. Bradley, 3901 Connecticut Avenue, N.V., Veshington 8, D. 0. General Oner N. Prodley, 3901 Connecticut Avenue, N.V., 037/dbs Vashington 8, D. c. 022/dbs Regraded Unclassified RECISION TRADE MARK MICROSTAT MICROFILM ROLL NO. 90 91 25 June 8, 1945 8 June 1945 Mr. Fussell Secretary Morgenthau simply delighted. I don't know who was responsible for I have just listened to the March of Time and I an bringing this about, but I want to thank them - first, I want to to thank the people in the Treasury and, second, I want My comp General Tradleys thank the March of Time. Finished. It ves with the greatest pleasure that I learned of your appointment and I vent to meter to concrutru- late you upon 11. I annot think of engrone vho vould full this important and enerous post to more complete and gendro antisfrotion, and vidle I lower that you vill find may difficulties about of you, I - suro that you also vill obly CAPTY out the duties of the position, and that the affaire of the Teterans Advisistration vill e format successfully under your direction. the Administration is to be congrato- lotel upon your of this appointment. I shall look forward to our associations here in Vashington and hope that you vill call upon no If at any time I onn be of service to you. Sincerely, (Signed) H. Margenthew, de. General Oner N. Brodley, 3901 Connections Avenue, N.V., Venhington 8, D. C. mr/dhs Regraded Unclassified 92 June 8, 1945 Mr. Feltus Secretary Morgenthau Congressman Wright Patman has offered to send his remarks about no in the House to any group that I want to send them to. I wish you would submit some names to me today of s 020 organizations that you think it would be worth while having then send to. lie said he would send in unlimited numbers and I would like to take advantage of his kind offer. Finished - Fusall is handling RECISION TRADE MARK MICROSTAT/ MICROFILM BOLL NO. 93 94 R 26 0 June 1945 6 June 1945 By loss 1.Leutenant Herengt My case Regrogs 16 ves with the grantest pleasure that It vna with the grantest pleasure that I 1earned of your appointment - Chaires of I 10arned of your appointment - Chairman of the National Later aslations Hourd, and the National labor loand, and 1 - to congratulate you very versity upon I vent to congratulate you very varify upon having been the President's choles for this having born the President's choice for this Important post. I Imov that you vill Assume Important post. I low that you vill nave the duties with a full understanding of their the duties with a full understanding of their Importance end that the work vill en forward Importance and that the vork vill e forward successfully unier your Chairmanship. If nb successfully under your Chairmanship. If at any time my effice one be of service to you, may time my of / toe one be of cervice to you, I hope that you vill call won us. 1 hope that you will call upon - Sincerely, Mincerely, (Signed) H. Morgenthau, Jr. (Signee) H. Margenthau, Ja. Lieutenant Feal H. Hereog, Lieutenant Paul H. Berend, Chairman, National Labor intetions Board, Chadream, National Labor Relations Board, lochambeen Puilding, Pudicine, Vasidagton, 1. c, 2. c. GEF/dbs GEF/dbs Regraded Unclassified RECISION TRADE MARK MICROSTAT/ MICROFILM ROLL NO. 95 96 25 8 8 June 1945 o Im 1945 My dear Mr. Norris: R last Herengt Listening to your March of Time program, It via with the greatest plensure that last night, as I always do when I have the op- I 1 of your appointment - Chairen of portunity, I was simply delighted with the clear the National Labor Asintions Tourd, end and convincing manner in which you presented the I 1 to congretulato you very varify upon black market angle of the Treasury's tax evasion having been the President's choice for this problem. The technique of cutting back and forth important post. I lower that you vill - from your dramatic presentation to the summation the duties with a full universanding of their Importance and that the veric vill e formal of the issue struck ae as particularly effective. supposefully under your If at - time my office on be of service to you, will you be so kind as to convey ay thanks I hope that you vill call non - to your associates In New York and to Mr. Culley of your Washington office. Hanvely, 1 also appreciate the interest of Mr. Hart, (Signed) H. Marganthew, - of Washington, who was instrumental in presenting Treasury material on another of your excellent radio programs which I was, unfortunately, unable to hear. I would be pleased If you would also convey my thanks to Mr. Hart and others responsible for this program. Lieutenant 7wd H. Hereng, Chadren, Wetdonal Labor latations Doord, Yours sincerely, Pudldine. . c. (Signed) H. Morgenthew, Ja. Mr. Frank Norris, Director, Radio Programs Department, Time, Inc., Rockefeller Center, New York, New York. EBF:nmc 017/dbs Regraded Unclassifie 8 June 1945 Mr. Robert A. Dillon Secretary Morgenthau I an informed that you handled, directly, for the Treasury, the arrangements with the March of Time for the very excellent program of Thursday night. I listened with much interest and N&S delighted with the presentation. I want you to know how much I ap- preciate both your efforts and the splendid finished product. (Signed) H. Morgenthaw, da 5 RECISION TRADE MARK MICROSTAT/ MICROFILM BOLL NO. M 98 TREASURY DEPARTMENT TREASURY DEPARTMENT INTER OFFICE COMMUNICATION the INTER OFFICE COMMUNICATION DATE 8 June 1945 Date 8 June 1945 TO Secretary Morgenthau TO Secretary Morgenthau FROM R. B. Fussell FROM Paul McDonald MEN Mrs. Klotz asked me to give you a memorandum concerning Responding to your memo regarding March of Time: the Dorothy M. Weaver letter which you signed yesterday, and were kind enough to offer to present to her personally After you gave us the idea, Charley Shaeffer and this morning in recognition of her meritorious promotion I called upon the March of Time people here. They were very cooperative but told us final arrangements had to for outstanding performance in the Division of Disbursement. be made in New York. It was not until Mr. Charles S. Bell's office called I asked Bob Dillon of Shaeffer's shop to follow Disbursement to request Miss Weaver to appear in your office through for us and he did an excellent job. I think he that we were informed she had resigned 30 May to rejoin her rates the suggested memo of commendation which I have attached for your signature. Incidentally I am asking family in Missouri. The Chief Disbursing Officer had not him to devote attention to radio in general, pending the been advised of the approval of Miss Weaver's promotion selection of a man, such as Lieut. Levy, who has had ex- pending your final concurrence. As you know, you wished to perience in that particular line. Dillon is showing so pass finally on such promotions and the Personnel Division much pep on this assignment that he might be able to apparently felt it would have been premature to advise the answer the bill permanently. originating office prior to your final approval. Also attached for your signature is a thank-you letter to the Time office in New York. Unfortunately, it was assumed by the office which prepared the letter for your signature that Miss Weaver was still on the job, particularly since the originating office EN Funeep did not promptly recall its recommendation on learning of Miss Weaver's resignation. This is particularly embarrassing in view of your personal and enthusiastic desire to recognize outstanding Treasury employees. Proper coordination has been effected to eliminate the recurrence of such an incident in the future. Regraded Unclassified 101 THE SECRETARY OF THE TREASURY WASHINGTON 7 June 1945 Dear Miss Weaver: 100 It gives ne pleasure to Inform you that you have received e. meritorious promotion in This letter was not delivered because recognition of the fine record which you have made in your work in the Pressury Department. the girl had resigned. This promotion is a salary increase of sixty dollars . year, effective 1 June 1945. In notifying you of this promotion I went especially to commend you for your high production record, with . minimm number of errors. Your performance has been en inspiration to others. to improve the quantity end quality of their work. Sincerely) 6 Miss Dorotay M. Wenver Division off Disbursement Bureau of Accounts Treasury Department Unclassit TRADE MARK MICROSTAT! EEG. o, S.PAT. ON. MICROFILM ROLL NO. I = 102 ) 8 JUN 1945 Dear General Marshall: I want to thank you most sincerely for the excellent statement you made available to the Treasury for our use in promoting the 7th Var Loan Drive. The newspapers of the nation gave it splendid front page coverage, and I as sure is will be helpful to us in reaching our high quotas for the drive. Sincerely, (Signed) H. Morgentheu, Jr. $ General George C. Marshall Chief of Staff, U. s. Army The Pentagon Washington 25, D. c. 80Ltab TREASURY DEPARTMENT 104 INTER OFFICE COMMUNICATION DATES June 1945 TO Secretary Morgenthau 103 FROM J. V. Pehle TREASURY DEPARTMENT Charles Bell called in from New York this morning to report on the recruitment drive. He thought you might INTER OFFICE COMMUNICATION vant a progress report for possible use at Cabinet today. DATE 6-7-45 The following is a. summary of Bell's report: TO: Mrs. M. K. MoHugh, Room 3409, Main Treasury Yesterday, 50 former Civil Service investigators, S. George Little JL including 6 women, were appointed and assigned to the FROM: Revenue Agent in Charge in New York. Here are some of the "thank you" letters Machinery for assigning and appointing all classes Secretary Morgenthau wants to send to the of persons needed for Revenue has been set up and is in Admirals and Generals who gave us the War Bond operation today. The machinery consists of four examining messages for newspaper publication. Others boards, staffed with joint personnel of the Civil Service will follow later. Commission and the Bureau of Internal Revenue, who will B call in for interviews 200 persons per day. Of this number, we should be able to recruit between 30 and 40 applicable candidates daily until the New York quota of 900 special agents has been filled. Army officials at Fort Dix were interviewed. They agreed to bring to the attention of every discharged soldier the job possibilities in Revenue. Each veteran is required to fill out a. form which carries a description of his past experience. These forms will be promptly screened and the job possibilities in Internal Revenue brought to the attention of all persons eligible for our work. Fort Dix is the largest discharge center in the United States. It is currently discharging at the rate of 1,000 men a day, and will soon reach 2,000 a. day, or approximately 20% of the total dischargees for the United States. Your letter to Adjutant General Ulio of June 6 has already been printed in the attached information bulletin 105 - 2 - for Army counselors, and is in the hands of all counselors in all camps throughout the United States. Charlie reports that Elmer Irey has been very helpful in working out many of the details with Revenue and the Enforcement staff of New York. Bell said that you ought to know that as far as can be determined, none of the Internal Revenue units in the New York area have contacted the local Civil Service Commission within the last year to fill vacancies from their registers. $ Attachment MICROSTAT REG. o. 5. PAT, ORI, MICROFILM ROLL NO. 12" 6 JUN 1945 Dear General Ulion The atticled letter la self-explanatory, and, If possible, - should like for it to appear is your inform tional Bulletin Number 5. No understand that this Builet:n La now in the bindery, these, 11 any not be ,Goaible for you to have this information included La the current Lesue. If such Le the case, I would appreciate having this letter reproduced and sent either as - supplement to your Bulletim Number 5 or on a separate mailing to the come recipients. Very truly yours, (SIGNED) CHARLES S. BELL acministrative Assistant to the Secretary. Major General James A. Ulio, Adjusent General, Har Department, Washington, D. c. PRECISION TRADE MARK MICROSTAT/ NO. U. PAT. OFF. MICROFILM ROLL NO. 101 "The American people understand that sacrificos 6 June 1945 are necessary. They know the war Le still far from being over. The one thing that night break down their will to keep on to complete victory would be a feeling that a few were profiting from the sacrificos of the many. Te My dear General Ulior must BCO that there La no justification for any such fooling, and that le just what The are poin; to do." The Treasury Department is conducting an extensive campaign The Agents' Jobs will 2°7 $2,500 07 $3,200 depending to approhend tax ovadors engaged in black-market operations. To education and experience qualifications. Briefly, the quall'ica- upon do this work It will be necessary to immodiately recruit 11,000 tions required are 2 to 3 years' experience in responsible employees, including 6,500 Agents and 4,500 clerical and other accounting, auditing, or investigational positions and substitu- employees. The Prosident of the United States has thrown his fill support bohind this argent and important program and be education. tions are allowed In liou of exporience for accounting and logal stated to the pross on 1 June that be desired to give qualified veterans the first opportunity to fill these jobs in Treasury. Deputy Collector positions are available at $2,000. The The following la a copy of the Prosident's statement: requirements for those are = years of business experience, or legal education. A shaple test la given to applicants for preferably bookkeeping or as ounting, or 2 years of accounting "Secrotary Morgenthau has told 30 about the truly these positions. chooldng cases of tax ovagion his aon have discovered. I an thoroughly La sympathy with his plan to calarge The clorical positions offer calaries of $1,440 and 1,320. the Buroau of Internal Revenue forces to whatever extent la required to Insure full compliance with the law. It from $311 to $628 per annual, depending upon the salary rate, as In addition to the salaries shows above all employees are paid will be good business for the Government, because every overtime as long - they are on a 43-hour per wook basis. A fur- dollar we spend in collection and enforcement will pro- ther pay Increase my be approved on 1 July 1915, which would add duco $20 or more in revenue. And much more important is 20 por cent for the first $1,200 and 10 2.P cent for the a cunt the atter of good morals. We are not fighting thiswar between $1,200 and $4,000. The Senate has alroady approved this to make millionaires, and certainly NO are not going to increase and it is now being considered by the House, allow the black market operators or any other racksteers Any one interested in those jobs should insulately unko to be in a favored class, when the men in the armed forces, application on Standard Form 57 to any fiold office of the Dureau and our citizens generally, are sacrificing so heavily. of Internal Revenue of the Treasury Department, to any Sivil for- "The top officials of the Civil Service Commission Treasury Department, Washington, D. :, vice Commission Regional Offloo, or to the Director of Personnel, have been acqualifed with our special tax drive and the nocossity for an accelerated program of recruitment. Your cooperation in this matter will be approciated. Arrangments have been made with the Civil Service Come Sincerely, mission to have placed at every Aray discharge center in the United States a qualified recruitment officer from the Civil Service Commission, fully versed in our Major General James A. Ulio, recruitment requirements, who will stoor to us qualified Adjutant General, voterans n.s they are discharged. War Department, Washington, D. C. MICROFILM ROLL NO. RECISION TRADE MARK MICROSTAT/ 109 110 TREASURY DEPARTMENT Secretary Morgenthau - 2 INTER OFFICE COMMUNICATION DATE 8 June 1945 total that, since the end of 1931. Almost three-fourths this borrowings on 6 June of $579 million. weekly reporting member banks in New York City reported and was in the New York Federal Reserve District: of TO FROM Mr. as Hand Secretary Morgenthau Subject Deposits and the bulk of subscriptions paid for with War Loan opens the sale of marketable securities to corporations drive, before tically occurs during the early part of a war loan Some increase in member bank borrowing characteris- Current Developments in the High-grade Security Markets definite are received. There appears to be, however, for independent of the timing of war loans. One possible 1s upward trend in member bank borrowing which a I. Long-term Governments Rise in Price their this trend 18 a desire on the part of banks to minimize reason excess profits tax. Since the opening of the Seventh War Loan drive on 14 May, prices of the restricted taxable bonde and the 2-1/2's of 1967-72 have scored substantial gains. During are bilities on an invested capital base. Under the law, they Banks generally compute their excess profits tax 11a- this period, the restricted taxable bonde advanced 16/32 on average: and the 2-1/2's of 1967-72 gained 1-9/32 to be rowed capital (on an average daily basis). Deposite permitted to increase this base by half of their bor- establish a new all-time high. At current prices, the Post treated few as borrowed capital for this purpose. During cannot the unrestricted 2-1/2's of 1967-72 yield 2.23 percent; and the restricted 2-1/2's of 1966-71 yield 2.41 percent. banks been indicated in previous memorands; and the number as has years, bank earnings have increased markedly, tax can be seen that banks can reduce their excess profits It subject to excess profits tax has likewise increased. of Some indication of the recent changes in the prices of taxable issues is provided by Chart I. which shows the prices of the securities offered in the Sixth War Loan from Federal. replenish reserves instead of selling certificates to to liability, or even avoid it altogether, by borrowing the day first traded. by the Division of Research and Statistics of the Board of A recent 1ssue of the confidential "Current Comments" II. Certificate Yields Back to December Highs Governors to this: of the Federal Reserve System anys with respect Yields of certificates of indebtedness have risen further (prices have declined) in recent weeks, continuing the trend which has been in progress since the low yields "The situation presents a rather delicate reached on 7 April (Chart II). Yields are nov at about their There are many who have been hoping that the issue to the credit authorities of the System. level of 22 December -- the date of your letter to Chair- Ecoles -- the rise during the past two months having discount privileges of the System might be used man cancelled the improvement registered by the certificate and considered available 80 that excess reserves market during the first quarter of this year. could be allowed to dwindle without creating any feeling among banks of credit tightness. The III. Kember Bank Borrowing at 12-Year High. to promoting a channel of tax evasion. The dif- System, however, would hardly want to be a party This May, in Part, Reflect Tax Avoidance. that separates 'legitimate' borrowing from that ficulty arises because of the very thin margin Discounts and advances by the Federal Reserve Banks to nember banks amounted to $912 million on 6 June. This is has within its hands the power to create the which is unnecessary. The Federal Reserve System the highest level of member bank borrowing since the two peak weeke of the bank holiday in March 1933; and before Regraded Unclassified 111 Secretary Morgenthau - 3 credit conditions that would nake borrowing either more or less 'legitimate'. For example, if the System should tighten reserves, there would be more cases in which nember banks could demonstrate a real need for borrowing." This comment is very pertinent in view of the rise in the yields of certificates of indebtedness which has occurred since early April. Since 7 April, the yield on certificates having a naturity of three months has risen from about 0.42 percent to about 0.70 percent (Chart II). The lending rate of the Federal Reserve Banks on loans secured by certificates is 1/2 of 1 percent; and most of the loans made by the Reserve Banks are 80 secured. It 1a, of course, much easier for member banks to justify such borrowing as "legitimate" when three-month certifi- cates are yielding 0.70 percent, that it was when they were yielding 0.42 percent. IV. Rise of Money in Circulation May Be Slackening The volume of money in circulation continues to rise. On 6 June, it amounted to $26.5 billion. There are some indications, which, however, require to be confirmed by observation covering a longer period, that the rate of increase is slackening. The increase in the year ended 6 June vas less than $4.3 billion, 0.8 compared with $5.0 billion for the corresponding period & year ago. Attachments RECISION TRADE MARK MICROSTAT. MICROFILM ROLL NO. Chart I 112 PRICES OF MARKETABLE TREASURY NOTES AND BONDS ISSUED IN 6th WAR LOAN 1944 1945 DEC JAN FEB MAR APR MAY ANE DOLLARS DOLLARS 101 01 Chart II 1/% Mores 1004 1001 ESTIMATED YIELD OF A 3 MONTH TREASURY CERTIFICATE 100 PERCENT PERCENT IDO document DEG JAN, FEE MAR 5 MAY JUNE Periodically Weekly ID4 104 8 8 1034 1034 103 103 7 7 1081 081 6 6 IDE IDE - Fa ex Bonds - - 1014 1018 5 5 IDI 101 4 A 100j 100g Sept U942 Level Dec 22 Letter to Ches Eccies 100 IDO DEC. JAN FEB. MAR APR. MAY JUNE 3 3 100g 1001 ICE IOS 2 2 M M a 5 N a M a a SEPT. NOV. JAN. MAR MAY ANY SEPT 5 N 4 zj % Bonds 1942 1943 1944 1944 1945 1018 IN IDI 101 Office of the Secretary of the Treasury F-389 - et Reserve - - 113 100j 1004 100 100 DEL JAN FEB MAR APR MAY ANE IS44 1945 - el - Services of - - NMH - Regraded Unclassified RECISION TRADE MICROSTAT MICROFILM ROLL NO. 114 115 - 2 - Memorandum to the Secretary. 8 June 1945 MEMORANDUM TO THE SECRETARY. 8 June 1945 their families about undelivered bonds rose to 12, Mail Report and reports of delays in receiving bond interest to 4. High praise of "Here's Your Infantry" continued to arrive daily and there were still quite n. number Fan mail on which a count was kept and from of promotional ideas for the Seventh Drive. which excerpts were taken totalled 599 communications this past week. This does not include routine mail Neither the Roosevelt bond nor the Roosevelt dime had more than half a dozen comments. In each without comment, which is forwarded in volume every day to the different Treasury offices. instance disapproval outweighed approval. Three out of a dozen communications about the Instructions to Financial Institutions to report currency transactions Attached are quotations as usually included from letters of particular interest, and also a box were in bitter opposition -- the remainder favorable or non-committal. Again several writers warned of score showing how the mil was divided by the subjects covered. the inflationery trend of the stock market. There were 8 rather small donations to the war effort and 3 to the conscience fund. Again the drive against tax evaders took the top spot. The last two days of the week showed a sharp decline in correspondence on the subject, but in all, 132 men applied to the Secretary for jobs During the month of May, 268 pieces of mall were as investigators, about one-third of these being forwarded to us from the White House. This in the lowest we have ever fallen in such receipts, and service men recently discharged or soon to be dis- charged. As soon as word went out that recruiting I believe that the change in Administration at the White House is responsible. Our previous low was for the jobs would be done among veterans, there was a noticeable increase in applications from these men. May, 1937, with 381. The highest WAS 1942, with 1,428. of the 65 communications naming specific tax evaders, As & rule, our May receipts have run between 500 and 37 were anonymous. These letters came from all 800. of the letters we received this past month, 103 sections of the country, but & great proportion were were handled in the Correspondence Division. postmarked New York City. There were 40-odd other letters approving the drive or making suggestions to promote It. or the 3 or 4 who commented on it un- favorably, 2 particularly opposed the special appro- priation to be asked of Congress. The tax mil also included 10 requests for refunds, half a dozen com- plaints about hardships, and & few miscellaneous suggestions. Although inquiries about Adjusted Service Bonds fell off this week, other run-of-the-mill bond matters increased slightly. Complaints from service men or Regraded Unclassified 116 117 - 2 - General Comments depositors. It seens to me that your proposal does nothing except to place the banks in a situation in Dr. I. R. LeSage, Huntington, West Virginia. I cannot which they might easily find themselves in error, refrain from reiterating my approval of your advocacy their officials or representatives embarrassed, and of stern treatment of Germany made some time ago, and good will removed. . 9 4 It is not your purpose to which was given the "hush hush" by some of the spine- which we object. It is the method by which you pro- less big-wigs at Washington. The 7th War Loan would ceed. We sincerely hope that you will reconsider gather more momentum if more speedy action were this matter in its proper light and revise your apparent toward the execution of the arch Nazi fiends instructions to require that disclosures must be and less coddling of the rank and file of prisoners made by individuals rather than by the banks. In in our concentration camps. Then, too, the asininity the meantime we shall, of course, be governed by of court martialing a guard for slapping some of the your instructions and trust that you will correct this inhuman beasts, all these things are disgusting and situation forthwith. tend to take the enthusiasm out of this Bond Drive. I am voicing my own sentiments and those of thousands of others in the above context, and it would be well W. A. Moehle, President, The "01d" Exchange National for the "Powers that be" to get wise to this situation. Bank, Okawville, Illinois. We are today In receipt of notice regarding "Instructions to Financial Institutions in the United States" pertaining to cer- Dayle E. Weller, President, The Bank of Three Oaks, tain transactions. # # # We have no fault to find Three Oaks, Michigan. We received from the Federal with this order except that the order should be more Reserve Bank this morning a copy of instructions issued definite; as it now stands, it is up to each bank to by you under date of May 21, 1945. # I am writing determine whether the transaction shall be reported. this letter to enter a vigorous protest regarding the This places the burden on the banks, which we think method which you propose to use In obtaining this is not the way it should be. You well know the Banks information. In my opinion, if the Treasury Department have done a wonderful job during this war in handling wants such information, it should be willing to assume the various demands made upon It, but this order full responsibility; therefore, should require indivi- should be more specific, not allowing any loopholes. duals involved in such transactions to make a full Under present instructions Banks are more or less disclosure and sign a statement regarding the use of policemen, and I an sure the Banks, ss a whole, will such large bills. As you now propose to obtain these resent following your instructions. # e reports, it places the banks in & position of endeavor- ing to pass judgment on what is and what is not "legitimate and customary conduct of the business, Joseph W. Driscoll, New York Herald Tribune, New York industry, or profession of the person or organization City. I wish to protest emphatically against the concerned". As you will appreciate, many transactions lack of governmental coordination which resulted in pass through a bank of which banks have no knowledge the impounding of my personal funis when I arrived whatever concerning the use to be made of the proceeds, at LaGuardia Field, May 21, 1945, after serving as and in many cases It is none of their business -- their accredited war correspondent with our armed forces function being purely that of paying agent for their since before D-Day. These funds had been duly and legally issued to me by the U. S. Army finance officer 119 118 - 4 - - 3 - Sam Dambrosia, Route 17, Paramus, New Jersey. I em at Orly Airport, Paris, in strict accordance with my enclosing my check for $18.25 which represents a Army travel orders which read: "Military personnel saving of 5₫ a day for one year, and which I put should exchange their French francs to U. S. dollars aside for the privilege of flying our flag. Each and English sterling in the Passengers Terminal morning I hoist the flag to the top of a flag pole Building at the airport immediately prior to de- I had erected on my premises and at sundown I lower parture. A copy of your travel orders must be shown it. I have been doing this for the last six years the Finance Officer at that time." Having faithfully and I expect to do it indefinitely, so long as I an adhered to the Army procedure, I was surprised upon physically able to do so. This is really the land being informed at LaGuardia Field that I could not of opportunity and I came to this country from Italy bring more than $50 into the country without a permit. when I was 17 years of age. I adopted this country Why cannot the Treasury and the Army get together on as my own and I vowed that were I successful, I would such matters and work out a coordinated procedure so show my gratitude and appreciation by being a good that returning citizens will not become enmeshed in citizen and flying the flag daily. My ambition was red tape and delays, and have to apply for a "license" realized six years ago when I became the possessor to recover their own money? I thought, Mr. Secretary, of my own home and the owner of an automobile service that you might welcome this suggestion. station, and I, of course, kept my promise and also started the 5g a day saving, which I want my Govern- ment to use as it sees fit. I hope God will spare Lilliano Albrespy, Oakland, California. I WILS more me for many years so I can continue the custom which than grateful when the articles I requested of you I started. I want to thank God, thank America and were sent to me in such a generous way. I fully thank my customers. understand now that all letters sent to you by ordi- nary citizens do not go unanswered. Thank you again for the photograph and autobiography of yourself. J. F. Luttman, Milltown, New Jersey. Your announce- My classmates, as well as myself, have enjoyed the ment that Roosevelt dimes will be minted comes as a books and we can now more fully understand a little shock to me and I am quite sure also to about half more about our land and its democracy. the people of the United States. I think we should wait about ten years to see if Roosevelt W&S really a nan to be honored 5.8 a great many think, or if he F. H. Smith, Wilkinsburg, Pennsylvania. The writer is Was just the opposite, as just as many people think. active in Veteran Affairs and we know what the G.I. In fact, we don't even know if Roosevelt really died. thinks, and right now he is good and sore over the raw The way I understand it, his corpse was not on display. deal handed him by the State Department, and your The way I see it, if the profile of Roosevelt is to Department on the exchange value of the Franc. Fulton be on one side, then the profile of Stalin should be Lowis, Jr., covered this to the point tonight, and on the other side. ... it sure is a mess. Our boys stand to lose $40.00 or more & month on the alleged plan, and we have asked Congress and President Trunan to take action to remove Congressman Louis Ludlow, (11th District, Indiana), every official who is responsible for this not of Washington, D. C. Many of the people I represent, injustice to our G.I's., and we welcome your version good law-abiding citizens, apparently disagree with of the deal. Mr. Lewis will be glad to tell what he the policy of calling upon the banks of the country knows as he talked to many of the officers over there. 120 121 - 5 - - 6 - to screen their deposits in order to discover ab- normalities which may be examined in a nation-wide Favorable Comments on Bonds campaign to detect tax evasions. e 9 4i Bankers say that enforcement of this request not only would violate the confidential relationship which, from H. B. Tukey, Chief in Research, Division of Pomology, the very foundation of our Government has existed New York State Agricultural Experiment Station, between banker and depositor, but that it would in- Cornell University, Geneva, New York. It occurred to pose a tremendous burden and responsibility on banks, me that you might appreciate a. listener's reaction to which already are heavily burdened with war work. the Treasury Program, "Music for Millions". I think Depositors declare that the order would project the it is splendid, of high quality, and just the sort of inquisitorial powers of the Government into the domain thing that we can well afford to do. It seems to me of the private citizen in a way inconsistent with that it contrasts strongly with many of the commercial American freedom and traditions, and would be viola- programs now on the radio. I presume that the standard tive of the most sacred rights of the individual. ... should be high, as an example of what can be done on the radio. Omer B. Kathmann, Carpinteria, California -- Enclosing clipping of editorial "On The Throwing of Dust", Andrew L. Felker, Commissioner, Department of Agri- suggesting efforts to memorialize President Roosevelt culture, Concord, New Hampshire. Some little time are for personal job-holding reasons. "Enclosed is ago I received a very friendly and much appreciated & clipping from our local small town paper. I con- letter from you carrying your thanks for the service sider It an insult to our departed friend, Franklin D. that we tried in our feeble my to render during the Roosevelt, and also 8. dig at you. After the magnif- previous War Bond Drives here in our state. We could icent job you have done, it seems to be full of ridicule hardly have failed to have done our bit if for no other by referring to your grand gesture in remembrance of reason than to work under the banner of men who headed F.D.R. It does not represent the majority of people up the bond sales work in New Hampshire. # # - They in this country." are all real men, and it WS.S & pleasure to work with them and for them in our small way. # u # I find that It is a little easier for our farmers to understand The Fifth and Sixth Grades (Letter does not state the maning and speak of 8. billion dollars when a name of school), Merrill, Oregon. The fifth and sixth few years ago they caught their breath when someone grades have been saving money in a little jar called mentioned & few hundred thousand dollars. Thanks the "kitty". At the end of the year we bought an much for your letter and the recognition that you have $18.75 bond with it. We wish to donate this to the given us. e U. S. Government to help bring Victory sooner. Arthur 0. Dietz, President, Commercial Investment Trust, Incorporated, New York City. When the war ends and the public can again buy the goods it wants, we face the prospect of a rush to cash War Savings Bonds. This will be particularly true with many of the millions holding small amounts of Series E Bonds. # e # Thus, a trend toward cashing before maturity can be expected, Regraded Unclassified 122 123 - 7 - - 8 - unless stemmed to some degree by anticipatory action. Unfavorable Comments on Bonds This would add immeasurably to the Treasury refinanc- ing problem and will tend to build still further the banking system's holdings of U. S. Government Bonds, K. C. Tanner, Tanner & Clark, Attorneys at Law, while undoing much of the good work which has been Proctors in Admiralty, Portland, Oregon. I am en- done to stimulate habits of thrift. * # # When Regu- closing herewith & copy of my letter to Commander lation W was promulgated in 1941 we faced precisely P. A. Sugg, U.S.N.A.T.T.C., Ward Island, Corpus Christi, the opposite trend - national income was then rising Texas. Because this letter contains in some detail and production of durable consumers' goods was de- a description of some practices at that base with clining toward the vanishing point. I publicly stated reference to War Bond purchases and the coercive at that time that the standards set by that regula- methods used by officers, which I believe are of tion were practical and sound. Now, with the reverse doubtful value, I deen it advisable to bring the trend setting in, I believe that the reasons for its matter to your attention. I am informed inception are no longer applicable. If people were that my boy declined, after repeated demands by your encouraged to buy consumers' durable goods out of executive officer, to disclose his reasons for can- current income or through utilization of established celling his War Bond subscription, and in an inter- sales financing machinery, rather than from the pro- view which lasted several hours he was specifically ceeds of War Bond redemptions, it would have the accused of being unpatriotic and was told that he was advantage of retained savings those savings being being investigated. He Was required to complete a largely in War Bonds. A combined program of urging form giving the names of six character references. people to hold them, and elimination of Regulation W Within two hours after this interview a Naval Intelli- could very well spread the desire for goods over a gence Officer at your base sent for the boy and asked longer time than might otherwise be the case. The him a number of questions touching the work there at great latent demand that exists is a fortunate occur- the base, with the quite obvious purpose of eliciting rence for our general economy, but none of us wants some incriminatory statement. Following this, a recom- it to be manifested in too short B. period. With 50 mendation WB.S made to the Navy Department in Washington million War Bond investors, Regulation W is wholly for his transfer to other service. The entire trans- ineffective as a means of restricting that withheld action seems reprehensible in the extreme. # e # If purchasing power when goods again become available. the boy had the courage and fortitude to resist the The choice will not be between buying on the instal- repeated demands of his executive officer to disclose ment plan or not buying at all. The alternatives, his reason for cancelling his War Bonds, it would seem rather, are purchases on the instalment plan or cash- that this very quality should be appreciated, assuming ing of War Bonds to buy outright. # e Regulation W of course, as I have been informed here, that Naval with its high down-payment and short repayment period regulations did not require him to disclose his will make instalment buying burdensome for the wage- reasons. This quality would be of inestimble value earner. At first glance, that may seen. desirable as to his country in the event the boy should ever fall a means of withholding purchasing power, but its off- into enemy hands. You must, of course, realize setting disadvantage nullifies the gain, if any. It that the purchases made by the boys at your base out places a. premium on cash -- only those in the higher of their small incomes is 8. mere drop in the bucket income groups will be able to afford the privilege of acquiring needed automobiles, refrigerators, wash- ing machines, etc. The only means available to the wage-carner to compete with this class demand will be to cash his War Bonds. ... 124 125 - 9 - - 10 - when compared with the purchases being mde by civilian is overseas, signature is difficult to obtain, and parents. When information reaches us that naval if the beneficiary is killed before his consent is officers abuse their authority, we are bound to wonder obtained, the difficulty is multiplied several fold. if we are not losing at home the very things for which e # # The only relief at the present time, that is We are fighting abroad. e # e I had occasion to talk known to the writer, is to cash the bond. To cash to two radio men that had been trained at your base. the bond, the purchaser must lose a considerable The information I received from them, touching your amount of interest, as the bond interest is on a practice there in the matter of War Bond subscriptions, sliding scale favoring the man who holds the bonds would indicate that your practice is at least open to longest. criticism. They informed me that non who attempt to cancel their War Bond subscriptions because of press- ing financial needs were advised by your War Bond The two letters which follow were addressed to the officer to cash in the bonds as rapidly as they received President, and referred to the Treasury for handling. them. e 6 It seems to ne to develop 8. habit of cash- ing out these bonds is quite as mischievous as to neg- Thomas F. Coakley, Rector, Sacred Heart Church, lect to purchase them in the first instance, and far Pittsburgh, Pennsylvania. I am md all over. I want more wasteful. I an told that you have an enviable to buy $75,000 worth of 7th War Bonds, and no one in record at your base in War Bond purchases. It might this city will sell them to me for Sacred Heart Church. be well to ascertain what record the boys are making Our checks are perfectly good; we have had no diffi- in War Bond retention. culty in purchasing large quantities of War Bonds in every previous War Loan; but this time every effort for nearly a month has resulted in failure. Our checks Captain Walter A. Lammli, TC, Shreveport, Louisiana. have even been returned, through one exasperating Difficulty is being experienced by war Bond purchasers excuse after another. Why does the Treasury Depart- in changing beneficiary or co-owner. At present, ment make it impossible for us to subscribe to the 7th Series E Bonds do not give the purchaser the right to anr Loan? We are & Church, an unincorporated institu- change beneficiary without the consent of beneficiary. tion, with some 1,250 men and women from this parish e # # The purchaser should enjoy the right to change in the Armed Services, 32 of whom have given their the beneficiary if he desires to do so, There are a lives for their country in this War. And yet through lot of single people who list their friends or rela- the asinine stupidity of the Treasury representatives tives as beneficiaries or co-owners, many times with- We cannot subscribe for the 7th War Loan. Mr. President, out knowledge of the friend or relative. Later when why don't you clean out the Treasury Department, and the purchaser marries, or otherwises changes his idea put someone in charge who will make it easy and pleasant as to whom the beneficiary should be, there is con- to subscribe to the War Loans, instead of making such siderable difficulty in making these changes. In & transaction odious, hazardous, annoying, and finally some cases the beneficiaries are not immediately avail- impossible. # # e able; in others, they refuse to sign; in others, the purchaser does not desire to consult them as they do not know they are on the bond and he does not desire Bert Nobles, National Press Building, Washington, D.C. to tell them. o « # In other cases, the beneficiaries This "Ole Sarge" wishes to call your attention to the may be minors, such as & minor niece or nephew, and current method of selling War Bonds - most emphatically are unable to sign. In cases where the beneficiary here in Washington in this 7th War Loan Drive. There is definitely a basis for much of the present criticism MICROFILM ROLL NO. PRECISION TRADE MARK MICROSTAT/ 127 - 12 - 126 € . 11 - Favorable Comments on Taxation of the War and/or the Treasury Departments - criti- cism and public indignation has increased daily because "An American", Postmarked Brooklyn, New York. I, as of the raucous salesmanship from the "Trailer" in an American, an proud of you and your wonderful start downtown Washington. Selling techniques of the in attacking the black marketeers. The wise birds "un-uniformed, within the draft-age civilian barker" and smart-alecs that are not so smart when they are includes a rude insistance of some individuals buying caught. You sure have them on the run. The vaults a $1,000 Bond in order to see 8. man escape from a are busy. Black market boys are busy running to the straight jacket. The salesman continually and sar- vaults and taking out their money. They certainly are scared stiff. e # # castically repeats, "Do you want the soldiers to fight your war and pay for it too?" # e e There just isn't any excuse, however, for using 111 overseas Veterans like Buck Private Raymond Dunlap and the other enlisted Cpl. Roscoe B. Chalker, APO 562, New York City. men to create public bond buying enthusiasm. Those Enclosed clipping appeared in today's Paris edition boys have been 111 with malaria for 30 months - and of the "Stara and Stripes". e # # It is with great right now in Washington four of them are suffering interest that I read where you plan to recruit so daily recurring attacks - and are having to take Atra- nany additional agents to aid the Treasury Department brine before each performance to lessen and control in its drive to assure that each individual pay his the severity of sald attacks. Who is so callous as proper share of the nation's tax burden. I was with to demand that these sick boys crawl on their stomachs, the Bureau of Internal Revenue from 1938 until 1943 firing most every type of combat weapons, including when I entered the armed forces. For two years prior flame throwers at a simulated Jap pillbox out here in to my induction I was an Internal Revenue Agent Potomae Park? Whoever dreamed up such an inhuman assigned to the Office of the Agent in Charge, Detroit, piece of bond selling needs a generous twig of Missouri Michigan. This letter is written on behalf of myself hickory applied to him. o 48 6 (Encloses clipping from and many other former agents who are now in the service Washington Star on use of boys with malaria In War Bond of their country. I have noticed that in the past demonstration.) when industry needed men with certain qualifications because of a shortage of such men, the War Department cooperated and discharged men to alleviate such a shortage. # # . I an certain that experienced men would be of greater value to your Department at this time than new men recruited from the outside. My duties in the Army consist of being company clerk for my organization. I an classed as Limited Assignment and sincerely feel that I could be of far greater service to By country were I permitted to return to my position with Internal Revenue. Sir, I take the liberty of sug- gesting that you petition the War Department for the release of former agents that they make use of their past experience and may assist you in the gigantic task that faces you today, and I personally would take great pride in being one of the men assigned to help carry out that task. Regraded Unclassified 128 129 - 13 - - 14 - Unfavorable Comments on Taxation Ben Wallack, New York City. I note from the papers that you are shocked by the income tax cheating going on all over the country. And well you might be! It is an accepted fact that there is not one R. F. Bausman, c/o Karl D. Pettit & Co., Investment house in fifty in the textile field that is honest Managers and Counselors, New York City. Our papers with the Treasury. Black markets are rampant. Cash have all carried new articles recently about Treasury transactions prevail. Different sets of books are plans to apprehend income tax dodgers. While heartily kept. # # # As for the fur industry, I was talking approving such activities, I should like to point out with at bookkeeper the other day, working for a fur that to be fair, consistent and logical, an attempt house -- and I am told there is not an honest house should be made at the same time to clean up old claims in New York. For instance, when they sell a $4,000 in the Revenue Bureau for income tax rebates. I have coat, or a $2,000 or $3,000 coat, the buyer pays had a just claim in the Department for some two years. half in cash and half by check. Thus, the buyer pays Also, the way to help business -- large and small -- 20% luxury tax on only half the cost, saving the would be to pay approved claims for relief that have other half. The seller, for example, on a $3,000 been filed in accordance with the Excess Profits Tax coat, records having received only $1,500. 4a # regulations. The situation is criminal and treasonous. It is high time that every last textile and fur house in this The following telegram was sent to President Truman city is thoroughly investigated. and referred to the Treasury for handling: "Dear Mr. President. Must I, a poor working nan with & Carol Davidson, Oneonta, New York. I firaly believe family, have my wages attached by your income tax officer here whom I owe 42 dollars for 1943 tax. that taxes should not be lowered until after the war with Japan is over. Small business, though, should They also owe me 60 dollars from 1944. Today they not have to bear the greatest part of this tax took bread out of By family's mouth by taking away By weekly income by attachment. How are you, as burden. President, going to stand by and see this kind of treatment done to me as an American negro who has Edward E. Randall, Attorney at Law, Long Beach, Calif. given all for his country, including twelve times A group of attorneys at luncheon the other day were blood donor. Louis Ryan, 2525 Chauncey Drive, Pittsburgh 19, Pennsylvania." decrying the fact that so many of their clients were guilty of tax evasion and placing such funds in safety deposit boxes in large denominations. We were rather disappointed in the tax agents' lack of energy in Dick D. Quin, Certified Public Accountant, Jackson, investigating such cases and thought that such lack Mississippi. Attached hereto you will find clipping from this morning's newspaper. # # # This is good news of action was perhaps due to the lack of manpower. indeed to the legitimate tax practitioner and to One attorney thought that it was legally possible to legitimate business. As a practicing Certified Public pass an not calling in all larger bills by a certain Accountant it has long been my knowledge that there date and registering same for new issue, which pro- cedure would trap such illegal deposits in the simplest has been considerable tax evasion, in the failure of manner. The above suggestion net with such approval taxpayers to include therein the proper amounts of by the men at the luncheon, that I thought I might pass their income and to include many items of expense it on to you as to how the great majority of us feel in respect to stopping such illegal activities. TRADE MARK MICROSTAT/ MICROFILM ROLL NO. 130 131 Report of Correspondence received in the - 15 - Secretary's Correspondence Division that are not allowable under the law. Too often the June 1, 1945 to June 8, 1945, Incl. legitimate tax practitioner is asked, "just whom are you representing--are you representing us or are you TOTALS representing the Treasury Department. After all, we are the ones who are paying you". # e # Legitimate BONDS: 208 business is trying to do a good job, both in the war effort and paying taxes which are necessary to run Promotional 1dess and materials for the Seventh Drive 32 this Government, but there are many practices which Promotional ideas and materials for the Eighth Drive 1 Replies for form letters of Mar Finance Division are being indulged in that do not have their approval. 2 # - . There is one thing, however, that I think needs Thanks for "Here's Your Infantry* 21 The Roosevelt memorial bonds 6 the very definite attention of the Treasury Depart- Favorable 2 ment. Too often the Internal Revenue Agents are in- Unfavorable 2 clined to be very technical of the returns filed by Smaller denominations 2 legitimate business enterprises. It is a known fact Rumors that bonda will be invalidated 3 that no business today can operate under all of the Complaints about delays in receiving bondar 18 various rules and regulations and laws of the various Service sen 12 Governmental agencies without violating, in some Others 6 technical degree, some provisions of these rules and Complaints about delays in receiving interest 4 Other complaints: regulations. So many of the rules and regulations of 13 Failed to receive recognition for sale of bonds 1 other Departments of the Government are backed up with Navy is foreing allotments for bonda 1 teeth through the Internal Revenue laws, and, there- Organized education not recognized in pamphlet fore, business never knows just exactly where it by WFD 1 stands when their returns have been filed at the end OPA restrictions unwarranted, 80 no more bonda 2 of the year, although every effort has been made to Church is having difficulty investing its funda comply with the spirit of the laws and the regula- in bonds 1 tions. We find too often in the examination of these Two Jima picture marred by Treasury artist 1 tax returns that the Revenue Agents are inclined to Cartoons to sell bonds to farmers are off key 1 Racetrack betting interfores with Seventh Drive 1 take the viewpoint against the taxpayer rather than Safekeeping facilities unavailable 1 look at the spirit of the law and see that he has paid Others 3 his proper and legitimate tax. In other words, the General suggestions: 13 Revenue Agent wants to make a change and show some Give owner right to change beneficiary at will 1 production regardless of whether the change will Issue conversion bonds, non-redemable 10-year eventually be in favor of the Government or in favor maturity bonds, etc. 6 of the taxpayer. # # # If these same Revenue Agents, Make bonda redemable by undertakers so they instead of spending their time looking for technical can be sold as burial insurance 1 violations of some law or regulation, would devote Increase sales by certain seans 5 Routine matters: this time to those taxpayers who had failed to file, 95 Inquiries about Adjusted Service Bonds 12 or those who have actually gone out in an effort to Bonda for redemption o openly and flagrantly violate the tax laws and have Subscriptions 1 flled returns that are absolutely improper, the Problems of inheritance, reissuance, replacement, 82 Treasury Department would not only benefit by collect- ing additional revenue but the legitimate business concern also would be given a break. # PRECISION TRADE MARK 133 132 3 - - 2 - TOTALS TOTALS MISCELLANEOUS PROTESTS: 13 TAXES: 272 Filipino is prevented from opening bank account in Florida 1 Requests for refunds 10 Motion picture strike is depriving Treasury of revenue 1 Tax evaders drives 242 Covernment should collect rebate from Detroit war Applications for jobs 132 industry 1 Reports of evaders 65 Speculation in real-estate and securities should be Comment and ideas: 45 curbed 5 Call in large currency 11 Unfair exchange rate in France 2 Preeze safety deposit boxes 2 Coddling of Nasi prisoners 1 Print names of guilty 2 Fuesia's obligations of 1918-19 should be net or lend- Congress should not grant lease discontinued 1 appropriation 2 Roosevelt estate may be tax free to family for many years 1 Check income of professional people 5 Check income of domestics 2 Others 21 OTHER SUGGESTIONS AND COMMENTS: 33 Questions, protests, etc.: 20 Car use stamp should be abolished 1 Roosevelt memorial dise 6 Excess profits tax claim unreasonably Favorable 1 delayed 1 Unfavorable 5 Present rates cause hardships 6 Currency problems, mutilated money, etc. 13 Longstanding error in assessement not yet Inquiries about foreign funds control 12 corrected 1 Personally abusive 2 Tax-exempt cooperatives should be discouraged as they will destroy private enterprise 1 Others 10 CHECKS FOR REWRITING 41 11 IDNATIONS: To the war effort 8 To the conscience fund 3 BRETTON WOODS PROPOSALS 9 INSTRUCTIONS TO REPORT CURRENCY TRANSACTIONS: 12 Unfavorable 3 2 Favorable Comment, elippings, etc. 7 TRADE MARK MICROSTAT/ MICROFILM ROLL NO. RECISION 135 134 = 2 = Report on White House Correspondence CUSTOMS 2 2 June 1945 to 8 June 1945, incl. Complaints about Customs Inspector 1 Complaint about customs duty on photograph 1 BONDS 12 GENERAL 19 Slogans, comments on 8th War Loan 1 Veterans requesting jobs as Investigators 2 Slogans, coments on 7th War Loan 3 Favorable comments on using Veterans as Unfavorable comment on current method of Tax investigators 2 selling War Bonds 2 Suggestion for issuance of new bank notes Suggestion for borrowing on War Bonds to curb black marketing 1 rather than selling 1 Unfavorable comment on Bretton Woods proposals 1 Request for replacement of lost or stolen War Bonds 2 Suggestion that "Fighting Engle be restored to coins 1 Suggestions for post-war "Depression Bonds", "Health Assurance Bonds", Adjusted Service Opposes cancellation of World Mar I debte 1 Bonds 3 26 Miscellaneous plans for employment, coments TAXES on financial condition, requests for value of foreign funds, etc. 11 Requests for exemption of pensions from income taxes 5 TOTAL RECEIVED FOR PERIOD 63 Requests for refunds of income taxes 4 Suggestions for reduction in taxes for small salaried workers, corporations 3 Aska Presidential support of excess-profits tax bill 1 Favors present tax system until war in Pacific is won 1 Routine tax plans 12 FOR memorial coin 4 Favorable 3 Unfavorable 1 Regraded Unclassified PRECISION TRADE MARK MICROSTAT/ MICROFILM BOLL NO. 136 EXECUTIVE OFFICE OF THE PRESIDENT BUY WAR REFUGEE BOARD WASHINGTON 25, D.C. OFFICE OF H EXECUTIVE DIRECTOR JUN 8 - 1945 My dear Mr. Secretary: I am pleased to send you herewith a copy of the report of the War Refugee Board for the period from May 7 to June 2, 1945. Very truly yours, Welleam O'Dropes O'Cupes William O'Dwyer = Executive Director The Honorable, The Secretary of the Treasury. Enclosure. Regraded Un RECISION TRADE MARK MICROSTAT MICROFILM ROLL NO. 137 138 - 2 - Report of the War Refugee Board for the Period from May 7 to June 2, 1945 April 23 To Landsberg-an-Lech 8,550 May 1 To temporary Intercross V-E DAY deportee camp at Hoechst 1,500 May 11. To incoming convoye of With the surrender of the German armies, much of the Board's rescued detainece from Mauthausen 804 work in Europe has been automatically terminated, inassuch as the Executive Order establishing the Board strictly May 11 To Bolzano area 5,000 limits its activities to the rescue and relief of victims of enemy oppression in enemy-occupied territory. Accordingly, Shortly after the cessation of hostilities, Representatives Representatives Olsen and McClelland were advised that relief Katzki and McCle'land advised us that reports of International and assistance of refugees liberated from the Germans are not Red Cross representatives who recently returned to Switzerland within the Board's jurisdiction and that requests received by from Germany, Austria, and Northern Italy indicated that, then for such help should be referred to the United Nations while Allied military authorities were making every effort Relief and Rehabilitation Administration, the appropriate to assure adequate relief to liberated civil detainees, military authorities, the Intergovernmental Committee on deportees, etc., an unavoidable delay in reaching many of Refugees, private refugee organizations, or other national the persons formerly aided by the Board through Intercross or international groups authorized to deal with matters of 18 being experienced because of the magnitude and complexity this nature. of the task and the difficulties of transportation and distribution which are involved. It was stated that emergency Our representatives were requested to begin immediately to calls for aid for liberated detainees and deportees in wind up all Board activities in Sweden and Switzerland and temporary agglomerations and on the roads have been sent by to prepare final reports. On the basis of their estimates Intercross field workers and that 8 large number of sick of the time required for this purpose and the expected persons remaining in concentration camps were also reported period necessary to accomplish the winding-up process here, to be in need. Apparently, this 18 n. period of emergency appropriate recommendations have been submitted to the Bureau need the duration of which 18 as yet undetermined, and it of the Budget with & view to concluding the Board's activities was reported that local Allied connanders having to deal with and accomplishing its final liquidation within approximately these displaced persons welcome such shipments as the Inter- sixty days after the end of the current fiscal year on national Red Cross has been able to get through to them. On June 30, 1945. the basis of this information, supplemented by reports from other sources, and in view of the fact that Interoross truck OPERATIONS FROM SWITZEHLAND convoys were still leaving Switzerland periodically, so that it 1s technically able to continue relief shipments to neet In view of the foregoing, Representative McClelland was this situation, our representatives strongly recommended that advised that all shipments of Board parcels should cease and the 28,792 undistributed Board parcels remaining in Switzerland was requested to take stock of all Board parcels still in again be made available to Intercross to enable it to fill Switzerland and to report the numbers and location to us. this temporary urgent denand until the situation becomes He cabled in reply that there were approximately 28,792 clearer. The Board promptly cabled its approval of the undistributed Board parcels on hand in warehouses in Geneva shipment of these parcels out of Switzerland on condition and that shipments of 31,208 paroels out of the 60,000 that military authorities permit Intercross to continue originally sent to Switzerland have been nade as follows: relief shipments to concentration camp survivors. March 16 To Theresienstadt 1,170 Because of the great interest of the Board and its representa- March 16 To Vienna area 4,902 tives for no many months in the problem of concentration camp March 19 To Theresienstadt 492 relief, and in order that first-hand current information as April 16 To Mauthausen 900 to the needs in such camps might be obtained, we cabled April 17 To Theresienstadt 4,230 Representative McClelland authorizing him to visit some of April 19 To Dachau and other campa the liberated concentration camps, particularly Dachau, as in Wurttemberg and soon as possible, and to make arrangements with appropriate Bavaria 3,660 military authorities for the necessary permission and travel facilities. RECISION TRADE MARK MICROSTAT MICROFILM ROLL NO. 139 - 4 3 McClelland's most recent report describes the splendid work supplies are urgently required. The United Nations Relief of the International Red Cross in continuing distribution and Rehabilitation Administration was reported to have sent of food relief, including Board parcels, to liberated detainees three planes of supplies from London, and it was indicated that, if the necessary official permission could be obtained in southern Germany and Austria. Four trucks were sent to Line for supplies to be flown in, the International Red Cross will on May 28 with forty tons of food, including 2,650 Board send one plane from Switzerland with supplies chiefly from parcels, for the detainees liberated from Mauthausen. In view the United States. It was stated that in addition the Red of reports that some 27,000 liberated detainees are leading a Cross is sending several trucks of food, supplied in large most precarious existence in the Line area, with from 300 to part by the private agency represented by this informant, 400 persons per day dying from disease and starvation, Mo- and that similar convoys with such supplies are being sent Clelland has requested Intercross to prepare a second truck to Dachau, Landsberg, and other camps for the internees there. convoy to leave for Linz about June 4, when he expects to be in that area himself visiting camps to determine where the More exact figures concerning the inmates at Theresienstadt remaining Board stocks can be most effectively used. On were contained in a late cable from McClelland in which he May 29, twenty-eight trucks left Switzerland for Pilsen, quoted information given to him by an Intercross delegate who with Theresienstadt the final destination. The convoy carried was at the camp in early May. It was stated that there were 3,600 Board parcels with other relief goods and was accompanied 17,556 Jewish deportees in Theresienstadt as of April 6 and by two Ozech officials who will attempt to arrange Crech and that 12,863 new deportees were brought in from camps all over Russian clearance so that the relief goods may proceed to Germany, such as Bergen Belsen, Buchenwald, Dachau, and Theresienstadt. Another Intercross convoy was scheduled to Mauthausen, between that date and May 5. Of the latter number, leave on June 1 with eighty tons of supplies, including 5,000 88 persons were dead on arrival and 221 others died shortly Board parcels, for distribution to released civilian detrinees thereafter, so that the total number of survivors there no in the Salzburg area. of May 5 was 30,110. The camp is now reported to be under Crech control. Reports from Representative McClelland disclose that it was possible for the International Red Cross to utilize for the EVACUATIONS FROM SWITZERLAND relief of Luxembourg deportees and detainees in Geruany only a small portion of the funds made available for this American About the middle of May it was reported that the evacuation Labor-sponsored project. The interested agencies are now of the two groups of Bergen Belsen and Theresienstadt refugees negotiating to have these funds used for the relief of probably would not be completed before the middle of June families of Luxembourgers who were deported and died in at the earliest. On May 24, Representative McClelland cabled Geruan concentration camps or were executed by the Nazis us that the date for the movement from Switzerland of the and to assist returning deportees in the reestablishment first convoy of approximately 1,000 refugees, to go via of their homes. Marseille to Taranto, thence to UNRRA camps in southern Italy, had been definitely fixed for June 4, the second convoy to It 18 understood from a private source that the Swins are follow two weeks later. However, a late cable from McClelland prepared to accept for a temporary stay and to provide for brought the information that, since the authorization on the maintenance of some 2,000 children from Gernan campa. May 30 for seven hundred Palestine certificates to be delivered to Zionist refugees from Bergen Belsen and Theresienstadt now Theresienstadt in Switzerland, some 1,100 persons among the two groups scheduled for evacuation have taken the position that they do From a representative of a private organization we not wish to lenve Switzerland until they can proceed directly learned that an International Red Cross delegate who recently to Palestine. While the scheduled departure of the first visited Theresienstadt reported that of the 30,000 Jews there convoy has been indefinitely postponed as a result of these now, some 17,000 are from the original group of interness developments, it was indicated that efforts will be made to and 13,000 are recent arrivals from other camps. The largest arrange for the departure about the end of June of a convoy national group consists of about 6,000 Czechoslovakians, and of those refugees who do not desire to go to Palestine. approximately 5,000 former Geruans comprise the second largest group. The new arrivals brought typhus into the camp, which has resulted in conditions of great hardship, and medical Regraded Unclassified PRECISION TRADE MARK MICROSTAT MICROFILM ROLL NO. 140 141 - 5 - - 6 - OPERATIONS FROM SWEDEN far returned are of non-French nationalities. Another report According to information which Representative McClelland from the same source indicates that, as a result of negotiations received from the International Red Cross, the 140,000 Board on the part of military authorities and private agencies with parcels which were shipped from Goteborg on the SS MAGDALENA French officials, the French Government has agreed to permit on April 16 arrived in Labeck, and since the Intercross the temporary admission of a thousand children from German delegate at Lübeck had previously distributed an unknown concentration camps. number of parcels under his control from other sources to civil detainees in northern Germany, particularly in Ravensbrück, A private organization representative who recently visited the stock of Board parcels has been diminished to the extent Northern Italy reported that 150 Italians and other nationals necessary to replace these advances. Representative Olsen's who had just come from mountain hideouts were found in Turin most recent information indicated that the Intercross delegate and that there were in Bologna 400 of the 1,200 Jews formerly in Labeck was distributing Board parcels to civilian internees there. Smaller numbers of the Jewish communities in other in the immediate area and whenever possible was dispatching towns have returned, and others are believed to be still in food packages by trucks to various concentration camps within hiding. It was stated that in many instances the clergy was reach. A cable from Representative Olsen advised us that, particularly helpful in preventing deportations. A complete while more exact figures cannot be obtained until communications record of the persons interned at the concentration camp of with Labeck are reestablished, it was known that a fairly Fossoli di Carpi and records of the camps at Monticelli and substantial shipment of parcels was forwarded to Ravensbrack Salsomaggiore were obtained. Of the 400 Jews reported interned quite recently, and that it was the opinion of an American at Bolzano, over 100 have returned to Milan. The others have Red Cross representative and the Intercross delegate in Goteborg been urged to remain at Bolzano temporarily in order to relieve that most of the Board packages in Labeck have now been the overcrowded situation in Milan. Apparently there is some distributed. unorganized movement from camps in Germany to Italy which is creating an additional problem. On behalf of agencies interested in the American Labor-sponsored project for rescue and relief activities in Norway, which were conducted under the Board's supervision and which the Board helped to finance, Representative Olsen's views as to specific needs for a follow-up relief program in liberated Norway were Welleam Welleam O Dezes requested. The Swedish group advanced a. five-point program, for which all the necessary arrangements as to the procurement William O'Dwyer and shipment of supplies have been made, and its proposals Executive Director have been transmitted by the Board to the interested groups here. EMERGENCY REFUGEE SHELTER A group of thirteen persons from the Emergency Refugee Shelter at Fort Ontario, Oawego, New York, left this country on board the GRIPSHOLM on May 31. All of them are nationals of Yugoslavia, and they are the first of the refugees brought here from Southern Italy to be repatriated. REPORTS FROM LIBERATED AREAS A report which reached us from a private source stated that since May 21 deportees have been returning to France at the average rate of one hundred per day. About 25% were enid to arrive from the east through Odessa, the rest from Germany, and it appears that a large majority of those who have thus Regraded Unclassified RECISION TRADE MARK MICROSTAT MICROFILM BOLL NO. 142 143 DEPARTMENT INCOMING DIVISION OF OF CENTRAL SERVICES STATE RECEIVED TELEGRAM TELEGRAPH SECTION DIVISION OF CENTRAL SERVICES PLAIN AdoR-49 1965 JUN 8 AM 10 12 -2-5770 Juno 8, from London London 00/L Dated June 8, 1945 of convention of 1933 both of general character LIAISON Rec'd 7:10 a.m. and in ro to particular individuala Fronch Govt would confer nocessary authority on IOC and Secretary of State, quasi-consular powers on its representative. Tashington. Spanish refugees in Prance como within mandato of IGC and Emorson strongly rocommends that request US URGENT of Prench Govt be approved. I concur in his 5778 31ghth FOR DEPT "R3 AND EARL HARRISON rocommondations and request that I be authorized Date next meeting Executive Committee IOC fixed before Juno 13 mooting to vote for approval. definitely Juno 13. Only business on agenda French Please instruct urgently. - WINANT request that 100 assune legal and administrative protoction Spanish rofugees in Pranco under Convention DJ Oct 28, 1933 benefits of which were extended to Spanish refugoos by Pronch docroo Mar 15, 1945. The Convention contains provisions ro sojourn of rofuges issuance of travol document Cotormination of privato law concorning personal status of rofugoo and rights of refugeo to work and roccivo social benefits. In short Spanish refugees will onjoy 1530 rights 0,8 Hanson refugees. If AGC assumos legal and administrative protoction of Spanish refugees in France it will be charged with taking up with Fronch Govt quostions rolating to application of convontion Regraded Unclassified PRECISION TRADE MARK MICROSTAT/ MICROFILM ROLL NO. 144 - mone GABLE to AMLICATION, 180, FOR HOOLYLLAND THE VAR EXPUGE: DOARD Reference your No. 1063, of June 6. Board to arrenging for sole of Its surplus 306,000 20V pareels La Ovitearland to UEHRA, Accordingly, please advise Intereress that none (repent name) of these 306,000 pareels my be turned over to Intereross, Detailed instructions conserning transfer to UIRRA will be sent to your shertly. healtht La pleased to know that balance of 26,792 three-kile Var Refuges Beard percele vill sous be enhmated, Please expirées appreciation of to Intercross. Ve de not understand your reference to 20,000 gallens of = gueeline (plus lubrisante). Are they new available in Adterlend and owned by the leart, THIS IS was TERM CARLE NO. 534 2130 p.m. June 8, 1945 Visa Ripple (for the Secty), Cobn, Hodel, Ratchison, McCorreck, Files. Filibitive 6/8/45 DEPARTMENT INCOMING DIVISION OF 146 OF CENTRAL SERVICES STATE TELEGRAM TELEGRAPH SECTION -2-2071, June 8, 4 p.m. from Stockholm Stockholm AdoR-237 Distribution of true or parcols sont IRC rep Lubock 53610 on reading only by spocial Dated June B, 1945 arrangement. (SECRET =) hand at latest reporting date. He was, howover, Roo'd 6:10 p.m. Secretary of State, 1/00 "ashington. 81 Il NY 6 NNC SISE CENTRAL SERVICES distributing thoso rapidly as possible to camp opons LIAISON DIVISION OF RECEIVED in roach and also using them holp food 10,000 former camp inmates now in Lubock ares. Honce 2071, Juno 8, 4 p.m. assumable supply "RB parcols in Lubcok virtually The following tolegram has boon sont to Born, 35 exhausted. Local UJC group distribu (*) a kosher June 8, 4 p.m. food parcols as follows. FOR NOCLELLAND FROM OLSEN Borgon-Belsen 7500. Supplementing our 33, May 23 following info (o) Ravonbbruck samo amount. nod by AMCROSS rep Thislor. 224,000 TRB food pareols Various camps Gormany 10835. shipped from Gotoborg distributed 19 follows. Destined Lubock but instoad sont Donmark 10,000. Mar 5, two wagons to Nuongammo 10800 percols. To Dano Jows in Swedon' 2000. Nar 15, by ss M.CDELEN. 5 to Lubock for PO S. Total 37,835. componsato for those givon NOR EG civilians 13200. As indicated above parcols in ten distributed Mar. 16 engon to Nuongammo 5400. by Dano mossie comunity to inmatos Ravonsbruck UNIDIVE For security reasons the Lest of this nonange must Mar. 17, 8070 place some amount. as they passed thru Donmark (o) TRB as 2071. be clossly guarded. Mar 17, two wagons to Ravensbruck 9600. Reports reached us many of those not given food for Mar 17 by ss 7 to Lubock for civ sovoral days and in critical condition. intornos 140376. JOHNSON May 22 to Kooporativo for Bundot for TJC (+) apparent comision 39288. JM Total 224,121 percols. or pareols June 9, 1945 10:55 A.M. 147 148 June 9, 1945 HMJr: I looked for you at Cabinet, then I couldn't 2:30 find you. Postmaster GROUP General Walker: Well, Henry, I waited a few minutes and then I had to leave. It wasn't important, I sort Present: Mr. D. W. Bell of wanted to know if you wanted to see some Mr. Gamble ootton fellows. I don't know whether you would Mr. Pehle be interested in them or not. Mr. blough Mr. Fussell HMJr: What's that? Mr. O'Connell W: Mr. C. S. Bell I said there was a fellow asked me if you Mr. Gaston would see some ootton fellows someday next week. Mr. Luxford Mr. Coe HMJr: Sure. Mr. White V: I don't know whether it is important or not, H.M.JR: Hello. I see you're still up today on but they are very and seem anxious your E bonds. to see you. HMJr: I'll be glad to see them. MR. GAMPLE: Yes. We covered a little more ground. W: I'll tell them to call your secretary. It's 0 (Mr. O'Connell enters the conference.) Colonel Jackson. H.M.JR: Did you see this story on the Secret Service? HMJr: Colonel Jackson. MR. FUSSELL: Yes. W: I'll tell them to call your secretary. Will you be here next week? H.M.JR: Where did that come from? HMJr: I'll be here Monday and Tuesday. MR. FUSSELL: I don't know. It didn't come from W: How is Mrs. Morgenthau? us. Gaston saw it and suggested no change in it and made no comment. HMJr: She 1e getting along nicely, thank you. H.M.JR: I just thought I would close the week. It's V: That's fine. All right, Henry. been a pretty good week. Is everybody here? HMJr: Thank you. MR. PEHLE: Luxford is here. MR. FUSSELL: Charlie Bell is coming in. H.M.JR: Send out a dragnet, MR. O'CONNELL: This is 8. good attendance to what it might have been. 149 150 - 2 - - 3 - MR. D.W. BELL: Joe and I are supposed to be away. H.M.JR: Hello. Gaston is supposed to be away. White is supposed to be here. MR. LUXFORD: How do you do? H.M.JR: We'll give him the "Bronx cheer" when he H.M.JR: Yes, sir, and he called at the last minute. comes in. He had the heads of three veterans organizations over and trotted me over there, and I got there just in time. I an on "We The People" Sunday night ten-thirty to eleven. It's okay to take it just the way it is (Mr. Coe enters the conference.) with no changes. (Mr. White enters the conference and everybody claps.) MR. FUSSELL: All right. H.M.JR: I just said in another minute we will pull H.M.JR: It's supposedly on the bank business. the flag down to half-mast. The Acting Secretary of the Treasury died on June 9th. (Mr. C. S. Bell enters the conference.) MR. WHITE: Oh, that's right. I an supposed to be. MR. PEHLE: What are the exact instructions? That's why I'm here. (Laughter) H.M.JR: Haven't you seen it? Nobody shows you MR. BLOUGH: Because you're dead? anything. MR. WHITE: The flag is at half-mast. MR. D.W. BELL: I see it in the papers. Financial speeches. (Laughter) H.M.JR: Anyway, Truman had the heads of three veterans organizations over and gave a very hurried H.M.JR: Read that much. (Indicating script for "lie talk, whisked out the photographers, and we all had The People" Program Sunday night, June 10.) our ictures taken, which I haven't seen. I hurred Charlie Bell back from New York where he has been (Mr. Gastom enters the conference.) very active out at Camp Dix, and if you are interested, sometime he can tell you how he found things. It's not H.M.JR: "here's the Acting Secretary of the Treasury so good. I mean, the Government as an employer is, today? Isn't that White? Is he supposed to--is it his as I would say, way behind. Aren't they, Charlie? turn? (Laughter) MR. C.S. BELL: A little stinky. MR. GASTON: Danny and I are substituting for him. H.M.JR: In dealing with the veterans and the H.M.JR: We had a sort of surprise call from result of this thing this morning, these various President Truman. Is that all right? veterans organizations, one I know has & magazine with 8 million and & half circulation going to press MR. D.W. BELL: Yes. Monday night and they are going to carry a notice in each one of them. Naturally they are interested, (Mr. Luxford enters the conference.) because this is the first time in twenty-five years that the Government ever tried to find the veteran a job. 151 152 - 5 - - 4 - MR. D.W. BELL: Did he? I think the work that Charlie is doing in the field-- I think when you get 8. little more of the story you ought H.M.JR: Yes. It's the most amazing thing that has to go over and teil it to McKim. happened to me in Washington. I an glad it happened early. I just thought I would warn you guys that I MR. C.S. BELL: Yes, sir. don't think we can expect much from him except a double- cross. But I am glad I got it so early and painlessly. H.M.JR: Because I think the President ought to Were you in the room at the time? know, how bad the Civil Service is. MR. O'CONNELL: I was in the room at the time of MR. LUXFORD: Do you want that on the record? the telephone conversation but not after that. H.M.JR: why not? H.M.JR: He proceeded to double-cross, so I thought I would pass it on for what it's worth. It's too bad, MR. LUXFORD: How bad Civil Service is. and it's been 6. good week. I don't have anything special. There is nothing new across the street. I took an idea H.M.JR: Compared to some of the things I have said on that you gave me about veterans, Herbert, and I called the record-- up General Marshall's office and asked whether he could find for me a. very able General to head up Enforcement, MR. D.W. BELL: He means the Commission. and they are going to look for somebody. H.M.JR: There are only about four of us here who MR. GASTON: General? are (Laughter) not Civil Service. Do you want to start something? H.M.JR: A General who has lost an are or leg. MR. LUXFORD: I heard they are going to make you Civil Service. MR. GASTON: A General might be too old. I'd let it go as low 8.9 a Captain. H.M.JR: And without going into the record, I had H.M.JR: I didn't specify any rank. a very, very--I can't explain It,but I had a very dis- appointing experience with Tom Clark. So I am glad MR. D.W. BELL: General McAuliffe. it came as early as it did, and all I can say is whenever you fellows meet him have both of your fingers crossed. H.M.JR: I specified the qualifications but no rank. MR. D. BELL: I heard & nice conversation between MR. GASTON: He must have picked Bradley for the you and him. veterans job, didn't he? MR. O'CONNELL: Something has happened since then, H.M.JR: I don't know, but I thought you said the apparently. President thought it was better to take & man who was wounded, a veteran, so I called up McCarthy today and H.M.JR: Yes. Well, he proceeded me and double- he said to give him a day or two and he might find crossed me after that afternoon. somebody. Re's the secretary to the General Staff. Regraded 153 hsl - 6 - - 7 - MR. GASTON: Oh. H.M.JR: Charlie, try to work it out to do it with Thomas. H.V.JR: And sort of an aide to General Marshall, secretary to the General Staff. He's got the job MR. C.S. BELL: All right, sir. Bedell Smith originally had. MR. D.W. HELL: Ee came back on the plane the day MR. GASTON: Yes. I considered calling over there I was in Detroit and indicated he was friendly to yesterday. I an glad you did call. Treasury. H.M.JR: And Charlie is getting lots of people for H.M.JR: How about Cochran? us. MR. GAMELE: We have a. lot of post-war plans to MR. C.S. BELL: I don't think we'll have any trouble take care of all our people. getting people for the whole drive. I set the pattern up in New York. That was working well yesterday. We hired H.M.JR: Through Robert Moses? twenty-two out of thirty-nine we interviewed the day before. MR. GAMBLE: Partially. The City voted the other day to go shead with this public project in about fifteen H.M.JR: E bonds are looking up each day. or twenty square blocks downtown. MR. GAMBLE: Yes, sir, they are. Mr. Secretary, H.M.JR: I wondered, Frank, whether we should ask in connection with this employment of these men, the State Department in view of the T. V. Soong and Kung wouldn't it be & worth-while activity to take a couple business, whether we shouldn't tell them about Kung coming of the top labor production centers like Detroit where in here, and ask them if we are doing the right thing? the CIO and AF of L might have a couple of hundred surplus people that this would be public relations- MR. 00E: It would be a good idea. I don't think wise a gesture to move in and find out. they really--inform them and ask them if they know any- thing, but I don't think they do. H.M.JR: That's & good idea. H.M.JR: I didn't want to ask Kung this morning, MR. GASTON: Yes. "Are you the guy I should do business with?" H.M.JR: It's a good idea. MR. COE: I would talk to them, but as I say, I know they don't know. It's as confused to them as it is to MR. C.S. BELL: Detroit is on the list. us. H.M.JR: If we could do it-- MR. D.W. BELL: I think they ought to find out. MR. GAMBLE: Talk to Thomas. H.M.JR: Huh? MR. LUXFORD: Be in consultation with Thomas. MR. D.W. BELL: You might be carrying out. negotiations with Kung the next month or so and find out he has no authority. Regraded Unclassified 155 156 - 8 - - 9 - H.M.JR: Who did you suggest? MR. LUXFORD: Shields. H.M.JR: He's going to get a ruling from the H.M.JR: Shields? Generalissimo, ha, ha, ha! MR. LUXFORD: The fellow the FBI arrested. (Laughter) H.M.JR: It's Service. You were pretty close. MR. 00E: By the way, I think it will come back to Kung, because he is still head of the Bank, I recommend the PM article of Stone's yesterday is and they are the ones who give us the money. very good. Did Krock,or Frank Kent,or any of those men leak? That's all right. it was a good week. H.M.JR: Well, I had nothing. I just thought MR. PEHLE: I think the State Department made a najor blunder by that and paid for it. MR. WHITE: Senator Capper, according to Luxford, H.M.JR: You look awfully satisfied about it. stated that he is on the Committee--the Republicar Committee-and that the vote in the Senate would be MR. PEHLE: Yes, I am. the same as in the House. It's like Rankin's move against the PM report. MR. GASTON: Capper said that? H.M.JR: White, have you got all your Senators lined up, educated, and on their toes, ready to go? MR. WHITE: Yes. MR. WHITE: All but--let's see, there are twenty in the Committee-all but nineteen. Glass is all ready to go. (Laughter) He is liable to go any minute. H.M.JR: Who did he say that to? We made appointments with a few of them, but they don't seem to be interested. reported it. MR. LUXFORD: The press, apparently. The press (The Secretary holds & telephone conversation with Mr. Grew.) H.M.JR: Really? Capper is a smart fellow. Regraded Unclassified 157 158 -10 - - 11 - MR. GASTON: Yes. MR. GASTON: I thought it was 8. pretty good idea because we had to meet him sooner or later. MR. PEHLE: He agrees with us. H.M.JR: I haven't got anything else. I asked MR. O'CONNELL: On this, no hope. the President about leaving the tax bill just as it is and he thought that was all right. H.M.JR: Well, Herbert? MR. GASTON: Isn't he pretty thick with O'Neal? MR. WHITE: Before you went to the House you spoke to Hannegan, the Speaker, and all the rest. Do you feel H.M.JR: I don't know. He's from the Middle West. it is necessary to duplicate that with the Senate? They are fairly important. H.M.JR: Not with this vote now, I don't think. The MR. WHITE: Have you talked to Hannegan since the vote speaks for itself. vote, Mr. Secretary. MR. O'CONNELL: We had lunch with Hannegan and the Senators, remember? H.M.JR: I had him for lunch that day. H.M.JR: Sure. MR. WHITE: I see. MR. PEHLE: The PM says he's a great supporter MR. O'CONNELL: Mr. Hill, Mr. Barkley and-- of yours. H.M.JR: Hannegan had lunch ten days ago on the Hill with all the leaders in the Senate which Mr. H.M.JR: Yes. Joseph O'Connell participated in. MR. WHITE: Well, I thought if it's been since-- MR. O'OONNELL: We talked about everything but Bretton Woods. We talked about Bretton Woods to H.M.JR: I left that to you. (Laughter) some extent, but they wanted to talk about salary MR. D.W. BELL: We are hoping to get that one, John. raises. We talked about Brettom Woods and they talked about something else. H.M.JR: Did you ever see more gigglers? MR. GASTON: I would say naturally you are going to go before the Committee formally. MR. GASTON: No. H.M.JR: I had a very pleasant hour and a half H.M.JR: Tuesday? luncheon with Hannegan, very, very, pleasant. In MR. O'CONNELL: We are going to have a hearing. fact, he would have stayed another hour. MR. GASTON: Did you get my note that I missed H.M.JR: Mrs. Roosevelt is delighted to go on the him today? I am going to call him from Chicago. air and she will ask Elliott whether he will go. H.M.JR: It was your original idea, you know. Regraded Unclassified PRECISION TRADE MARK MICROSTAT/ PAI. OFF. MICROFILM ROLL NO. 159 160 June 9, 1945 2:43 P.M. - 12 - Mr. Joseph Grew: Good afternoon. MR. GAMBLE: We sent a story on this today. It's late, and we won't get a radio page coverage on "We HMJr: Good afternoon. I thought I ought to tell The People" because the Sunday papers have already you that Dr. H. H. Kung, the Chinese gentleman, gone to press, but we'll get something. came in today to see ne and now he claims he is the man who should negotiate for the pay H.M.JR: Don't you think it's good (indicating that the United States Army oves them. Here- script for "We The People" program for June 10, 1945 Y? tofor, we had conducted negotiations with his for the Army in consultation with the State Department, but about a month ago Mr. T. V. MR. D.W. BELL: I don't like the first page. Boong said it was up to his to do it. H.M.JR: You don't like it? G: Well, T. V. is now in town. MR. D.W. BELL: I think it's a little confusing HMJr: Yeah, and I just didn't want to find myself in the way it starts out with Guy Helvering and saying, the middle of the royal family. "I'll teil you what Treasury is going to dq" and then G: (Laughs) I don't blame you. going back to Guy Helvering. I don't know. HMJr: So.. I don't know - I just wanted to be reassured H.M.JR: I an looking at you, Fussell. by you or the Department that we should go ahead with Kung on this phase of it. MR. FUSSELL: What an I supposed to say? G: Well, I think we will have to look into that. JR: You are supposed to say, "Tell him to go to hell! HMJr: Will you? G: It is a little difficult, if I ask T. V. he will MR. WHITE: Now, now, Fus. probably say that he has to do it. MR. D.W. BELL: Be yourselves. Let your conscience HMJr: Vell, I didn't want to do anything that might be your guide. embarrass you because. MR. BLOUGH: Do you want to build up Guy Helvering? G: Well, thank you. This has to do with what - with.. HMJr: The Chinese government for the expenses of the MR. D.W. BELL: I wondered if you didn't want to United States Army in China. say, Former Commissioner of the Internal Revenue?" G: I see. H.M.JR: I suggested that but they say we went in with a former Commissioner of Internal Revenue in order HMJr: We've paid up to the first of October. to make a tax case. G: Yes. Stay behind a minute, Fussell, and we'll look it over. HMJr: And since then we have not paid them. Well, Harry, I wish you luck the rest of the afternoon. G: But you negotiated with Dr. Kung up to that point, is that 1t? MR. WHITE: I've got my pen full of ink. (Laughter) Regraded Unclassified 161 - 3 - 162 - 2 - G: Oh, no, I haven't seen that. HMJr: That's right. Then he vas taken 111. HMJr: And then in it, he also complains that it took G: Yes. ten days to decode it and it was all terrible. He sent a copy of it to the President. I thought HMJr: Then T. V. came in on the scene, and he asked it vas in very bad taste, and I told Reams to tell me about it and I said;Well, who should I you the story. negotiate with. We are waiting." G: Well, I'll... Rease has sent se two or three G: Yeah. memorandums this morning which I haven't had the chance.. HMJr: And he said, "Well, with me." Then,of course, he's been away, and today Kung comes in with a HMJr: Well, if you would have a look at it because I lot telegrame in Chinese which he says are don't think, for the record, either for State or from the Generalissimo saying why didn't ve Treasury, we ought to let that message of Hurley's do it yesterday. stand. HMJr: Bo I said for the very good reason that we G: Have we a copy of that message? have been waiting for some representative of the Chinese government to come in and ask us. HMJr: Yes, you have. G: Well, my guess would be that the only way to G: It_came through us, did 1 t7 do that is to telegram out to Pat Hurley and ask him to get a ruling from the top - from General- HMJr: No, it came, strangely enough, through the Navy. issimo, because if I ask Soong he is almost sure to say that he wants to do it - ask Kung and he G: I see. will say that he wants to do it. HMJr: Our message went out through State and the answer HMJr: Did you see what happened to that message? Did came back through the Navy. Reams tell you about that message from Burley? 0: I see. Well, I'll look into that. G: Yeah. HMJr: If you don't mind. HMJr: I hope you will do something about that. 0: I will. Now about the other thing. Don't you G: Well... think the only thing to do 18 for us to send a telegram to Chungking to get a ruling. HMJr: I mean I thought it vas a rather churlish message from Hurley. HMJr: I suppose so. G: Oh, well, I now let me see, I'm not sure I G: I don't see what else to do. know that. The thing that I asked Rease to speak to you about HMJr: I... HMJr: vae this. I mean I took it upon myself to ask G: Soong is going to be around here until about the State Department to advise Hurley what had been 15th. going on here just as matter of courtesy. HMJr: Yeah. It is a little embarrassing. G: Yes. G: Which we did. Then he comes back with a long Well, would you like to have me do that then? HMJr: message saying why ask his advice and he disagrees. HMJr: I'd appreciate it if you could do it today. It 10 quite a churlish message. - 4 - 163 G: Oh, I can do it right away. It sometimes takes a oouple of days for a telegram to get over there, but I'll do it as quickly as we can. HMJr: Well, I would appreciate it. G: All right I'll do that right away. HMJr: Thank you. G: Thank you. HMJr: Goodbye. G: Bye. RECISION TRADE MARE MICROSTAT/ MICROFILM ROLL NO. 165 164 PAUL BROWN Der. I I COMMITTEE - BANKING AND CURRENCY CLARENCE E. KILBURN I - - CUMMERCY - own - Your Congress of the United States - GEORGE Y. CAPPREY MARION 6. COONEY Congress of the United States Douse of Representatives Douse of Representatives Mashington, D. €. Blasbington, D.C. June 9, 1945 June 9, 1945 The Honorable Henry Morgenthau, Jr., Honorable Henry Morgenthau, Jr. Secretary of the Treasury The Secretary of the Treasury, Washington, D. C. My dear Mr. Morgenthaut- Dear Mr. Morgenthau: I AR pleased to acknowledge receipt of your letter of June 8, 1945, relative to the vote on Bretton Woods. I appreciate your letter of June 8. I have always been for all legislation in the interest of International cooperation. I voted for the draft bill, the Like you, I as gratified that the Bretton Boods extension of the draft; for lend-lease and the extension of proposal passed the House by such a large majority. lend-lease; to repeal the Neutrality and UNREA. I always felt that Brotton Woods was non-partisan and the only thing I was anxious to do was to do a good job and I was delighted Sincerely yours, to see it work out as it did. Sincerely yours, Price Dower Carence E 15ilhum Clarence E. Kilburn, M. C. PB-c CEX/c 166 > 167 COMMITTEER JESSE P. WOLCOTT - - CURRENT TYM Durset - - ) - - PORT MICH Congress of the United States Douse of Representatives Masbington, D.C. June 9th, 1945. 9 JUN 1945 My dear Deans Hon. Henry Morganthau, Secretary of the Treasury, After the overwhelming vote of the Washington, D.C. House on the Pretton Woods Agreements, I think that the course of the legislation Dear Mr. Secretary: should be greatly cased and I know that I sincerely appreciate your splendid this is due in no small part to the enormous effort which you have made. I message of the 8th. I feel repaid for all the want you to know that I an very grateful to you for the fine job you did both at long hard hours we put on this legislation, now that Bretton Woods and throughout the country since last sumer. it has passed the House so overwhelmingly. It 1s indeed kind of you to give ne 80 much credit for its Sincerely yours, passage. With every good wish, I an (Signed) Benry Very sincerely, Honorable Dean Acheson, Assistant Secretary of State, State Department, JPW/n Washington 25, D. C. 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