WORLD WAR II

Organized Crime?
Great Depression & The Rise of Fascism

By William P. Litynski

From the Grassy Knoll in Miami, Florida:

Lone Gunman or Patsy?

The Assassination of Mayor of Chicago Anton J. Cermak & the Attempted Assassination of American President-elect Franklin Delano Roose elt on Fe!r"ary #$% #&''

(eft photo) Anton J. Cermak *center+% Mayor of Chicago% is assisted after !eing ,o"nded in an assassination attempt on President-elect Franklin Delano Roose elt !y talian mo!ster Giuseppe "an#ara in Miami% Florida% -...A. on Fe!r"ary #$% #&''. Anton J. Cermak ser ed as the Mayor of Chicago from #&'# "ntil his death on March /% #&''. The Reichstag Fire in 0erlin ,o"ld occ"r #1 days later% on Fe!r"ary 12% #&''. Prominent gangsters s"ch as .am 3iancana and Jack R"!y *,ho assassinated (ee 4ar ey 5s,ald in Dallas% Te6as+ li ed in Chicago in #&''. Chicago gangster and !ootlegger Al Capone ,as imprisoned for ta6 e asion in 5cto!er #&'#. *Photo) 0ettmann7C5R08.+ Right photo) talian mo!ster Giuseppe "an#ara% clad only in a to,el% is seen here ,ith officials "nder arrest in Miami% Florida% -...A. on Fe!r"ary #/% #&''% after he had fired fi e !"llets in an attempt to assassinate President-elect Franklin Delano Roose elt at 0ay Park in Miami% Florida. Fi e people ,ere in9"red !y the shots% incl"ding Mayor Anton J. Cermak of Chicago. .tanding on the left is .heriff Dan 4ardie: standing on the right is (.3. Cre,s holding the pistol ,ith ,hich the shooting ,as done. *Photo) 0ettmann7C5R08.+

Franklin Delano Roosevelt (center), Governor of New York an !resi ential can i ate for t"e Democratic Party, t"rows o#t a $ase$all #rin% t"e last %ame of t"e &'() Worl *eries $etween t"e +"ica%o +#$s an t"e New York Yankees in +"ica%o on ,cto$er ), &'(). Franklin Delano Roosevelt is flanke $y "is son -ames Roosevelt (ri%"t) an .ayor of +"ica%o /nton +ermak (left). (P"oto0 Bettmann1+,RB2*)

Benito .#ssolini (left), t"e ictator of Fascist 2taly, ri es in a motor$oat wit" 3.*. *ecretary of *tate 4enry L. *timson in 2taly in -an#ary &'(&, #rin% t"e mi le of t"e Great De!ression. 4enry L. *timson was a mem$er of *k#ll 5 Bones, a secret society at Yale 3niversity. (P"oto $y New York 6imes +o.1Getty 2ma%es)

GR$%T D$PR$&& '( & (%T '(%L &') %L &M: 8nternational 0ankers and the Rise of ;orld ;ar 88

.or%an, *tanley 5 +o. !resi ent 4arol *tanley (left) c"ats wit" -.P. .or%an !artners Geor%e W"itney (center) an R#ssell +. Leffin%well at t"e .ono!oly +ommittee "earin% in Was"in%ton, D.+. on Decem$er )7, &'('. /ll t"ree men were mem$ers of t"e +o#ncil on Forei%n Relations. 4arol *tanley was a mem$er of *k#ll 5 Bones at Yale 3niversity. (P"oto0 Li$rary of +on%ress Prints an P"oto%ra!"s Division)

Front !a%e !"oto0 From Tokyo With Love: /merican Presi ent Franklin Delano Roosevelt meets wit" -a!anese $ankers an i!lomats at t"e W"ite 4o#se in Was"in%ton, D.+., 3.*./. on .ay )8, &'((. Left to ri%"t0 9isco#nt :ik#;iro 2s"ii ("ea ele%ate an former -a!anese /m$assa or to t"e 3.*. (&'&<=&'&')), -##k#io :a$ono (economic a viser), Presi ent Franklin Delano Roosevelt, -a!anese $anker >i%o F#kai (Governor of t"e Bank of -a!an from &'(? to &'(8), an :ats#;i De$#c"i, -a!anese /m$assa or to t"e 3nite *tates of /merica. (6"e lo%o of t"e +o#ncil on Forei%n Relations is flanke $y t"e fla% of t"e :in% om of 2taly (Fascist 2taly) (left) an t"e fla% of t"e >m!ire of -a!an (ri%"t).)

,wen D. Yo#n% watc"es >mile .orea# (left),Governor of t"e Bank of France, s"ake "an s wit" 4;almar *c"ac"t (ri%"t), Presi ent of t"e Reic"s$ank (Germany@s central $ank), in &')' after t"ey acce!te t"e terms of t"e Yo#n% Plan. 4;almar *c"ac"t was trie in N#rem$er%, Germany for war crimes an colla$oration wit" t"e NaAis after Worl War 22. ,wen D. Yo#n% was t"e +"airman of t"e $oar of General >lectric +om!any (&'))=&'B7), Deputy Chairman of the Federal Reserve Bank of New York !"#$%!"&$'( Chairman of the Federal Reserve Bank of New York !"&)%!"*+' , Director of t"e +o#ncil on Forei%n Relations (&')8=&'B7), an 6r#stee of t"e Rockefeller Fo#n ation (&')<=&'('). (P"oto0 Owen D. Young: A New Type of Industrial Leader $y 2 a .. 6ar$ell)

<8n each co"ntry the po,er of the central !ank rested largely on its control of credit and money s"pply. 8n the ,orld as a ,hole the po,er of the central !ankers rested ery largely on their control of loans and of gold flo,s. 8n the final days of the system% these central !ankers ,ere a!le to mo!ili=e reso"rces to assist each other thro"gh the 0.8...% ,here payments !et,een central !anks co"ld !e made !y !ookkeeping ad9"stments !et,een the acco"nts ,hich the central !anks of the ,orld kept there. The 0.8... as a pri ate instit"tion ,as o,ned !y the se en chief central !anks and ,as operated !y the heads of these% ,ho together formed its go erning !oard. >ach of these kept a s"!stantial deposit at the 0.8...% and periodically settled payments among themsel es *and th"s !et,een the ma9or co"ntries of the ,orld+ !y !ookkeeping in order to a oid shipments of gold. They made agreements on all the ma9or financial pro!lems of the ,orld% as ,ell as on many of the economic and political pro!lems% especially in reference to loans% payments% and the economic f"t"re of the chief areas of the glo!e. The 0.8... is generally regarded as the ape6 of the str"ct"re of financial capitalism ,hose remote origins go !ack to the creation of the 0ank of >ngland in #/&? and the 0ank of France in #@A'. As a matter of fact its esta!lishment in #&1& ,as rather an indication that the centrali=ed ,orld financial system of #&#? ,as in decline. 8t ,as set "p rather to remedy the decline of (ondon as the ,orldBs financial center !y pro iding a mechanism !y ,hich a ,orld ,ith three chief financial centers in (ondon% Ce, Dork% and Paris co"ld still operate as one. The 0.8... ,as a ain effort to cope ,ith the pro!lems arising from the gro,th of a n"m!er of centers. 8t ,as intended to !e the ,orld cartel of e er-gro,ing national financial po,ers !y assem!ling the nominal heads of these national financial centers. The commander in chief of the ,orld system of !anking control ,as Montag" Corman% 3o ernor of the 0ank of >ngland% ,ho ,as !"ilt "p !y the pri ate !ankers to a position ,here he ,as regarded as an oracle in all matters of go ernment and !"siness. 8n go ernment the po,er of the 0ank of >ngland ,as a considera!le restriction on political action as early as #@#& !"t an effort to !reak this po,er !y a modification of the !ankEs charter in #@?? failed. 8n #@$1% 3ladstone% then chancellor of the >6cheF"er and later prime minister% declared% <The hinge of the ,hole sit"ation ,as this) the go ernment itself ,as not to !e a s"!stanti e po,er in matters of Finance% !"t ,as to lea e the Money Po,er s"preme and "nF"estioned.G This po,er of the 0ank of >ngland and of its go ernor ,as admitted !y most F"alified o!ser ers. n *anuary, +,-., Re#inald McKenna, /ho had !een chancellor of the $0che1uer in +,+23+,+4, as chairman of the !oard of the Midland 5an6 told its stoc6holders: 7 am afraid the ordinary citi8en /ill not li6e to !e told that the !an6s can, and do, create money9999 %nd they /ho control the credit of the nation direct the policy of Go:ernments and hold in the hollo/ of their hands the destiny of the people9; 8n that same year% .ir Dr"mmond Fraser% ice-president of the 8nstit"te of 0ankers% stated% <The 3o ernor of the 0ank of >ngland m"st !e the a"tocrat ,ho dictates the terms "pon ,hich alone the 3o ernment can o!tain !orro,ed money.G 5n .eptem!er 1/% #&1#% The Financial Times ,rote% <4alf a do=en men at the top of the 0ig Fi e 0anks co"ld "pset the ,hole fa!ric of go ernment finance !y refraining from rene,ing Treas"ry 0ills.G Hincent Hickers% ,ho had !een a director of the !ank for nine years% said% <.ince #&#& the monetary policy of the 3o ernment has !een the policy of the 0ank of >ngland and the policy of the 0ank of >ngland has !een the policy of Mr. Montag" Corman.G 5n Co em!er ##% #&12% the ;all .treet Jo"rnal called Mr. Corman <the c"rrency dictator of >"rope.G This fact ,as admitted !y Mr. Corman himself !efore the co"rt of the !ank on March 1#% #&'A% and !efore the Macmillan Committee fi e days later. Montag" CormanEs position may !e gathered from the fact that his predecessors in the go ernorship% almost a h"ndred of them% had ser ed t,o-year terms% increased rarely% in time of crisis% to three or e en fo"r years. 0"t Corman held the position for t,enty-fo"r years *#&1A#&??+% d"ring ,hich he !ecame the chief architect of the liF"idation of 0ritainEs glo!al preeminence.G I Tragedy and Hope !y Carroll J"igley% p. '1?-'1$ <8n the #&1AEs% they /ere determined to use the financial po/er of 5ritain and of the <nited &tates to force all the ma=or countries of the /orld to #o on the #old standard and to operate it throu#h central !an6s free from all political control, /ith all 1uestions of international finance to !e settled !y a#reements !y such central !an6s /ithout interference from #o:ernments9 8t m"st not !e felt that these heads of the ,orldEs chief central !anks ,ere themsel es s"!stanti e po,ers in ,orld finance. They ,ere not. Rather% they ,ere the technicians and agents of the dominant in estment !ankers of their o,n co"ntries% ,ho had raised them "p and ,ere perfectly capa!le of thro,ing them do,n. The s"!stanti e financial po,ers of the ,orld ,ere in the hands of these in estment !ankers *also called <internationalG or <merchantG !ankers+ ,ho remained largely !ehind the scenes in their o,n "nincorporated pri ate !anks. These formed a system of international cooperation and national dominance ,hich ,as more pri ate% more po,erf"l% and more secret than that of their agents in the central !anks. This dominance of in estment !ankers ,as !ased on their control o er the flo,s of credit and in estment f"nds in their o,n co"ntries and thro"gho"t the ,orld. They co"ld dominate the financial and ind"strial systems of their o,n co"ntries !y their infl"ence o er the flo, of c"rrent f"nds thro"gh !ank loans% the disco"nt rate% and the re-disco"nting of commercial de!ts: they co"ld dominate go ernments !y their control o er c"rrent go ernment loans and the play of the international e6changes. Almost all of this po,er ,as e6ercised !y the personal infl"ence and prestige of men ,ho had demonstrated their a!ility in the past to !ring off s"ccessf"l financial co"pe% to keep their ,ord% to remain cool in a crisis% and to share their ,inning opport"nities ,ith their associates. 8n this system the Rothschilds had !een preeminent d"ring m"ch of the nineteenth cent"ry% !"t% at the end of that cent"ry% they ,ere !eing replaced !y J. P. Morgan ,hose central office ,as in Ce, Dork% altho"gh it ,as al,ays operated as if it ,ere in (ondon *,here it had% indeed% originated as 3eorge Pea!ody and Company in #@'@+. 5ld J. P. Morgan died in #&#'% !"t ,as s"cceeded !y his son of the same name *,ho had !een trained in the (ondon !ranch "ntil #&A#+% ,hile the chief decisions in the firm ,ere increasingly made !y Thomas ;. (amont after #&1?.G I Tragedy and Hope !y Carroll J"igley% p. '1/-'12

Germany@s Cc"ancellorD / olf 4itler walks wit" 4;almar *c"ac"t, t"e Presi ent of t"e Reic"s$ank, on .ay ?, &'(B. (P"oto0 "tt!011%erman"istory ocs.%"i= c.or%1s#$Eima%e.cfmFima%eEi G&'HB5lan%#a%eG%erman)

<Co s"!9ect occ"pied a larger portion of statesmenBs energies than reparations d"ring the decade after the ,ar. For this reason% and !eca"se of the impact ,hich reparations had on other iss"es *s"ch as financial or economic reco ery and international amity+% the history of reparations demands a certain portion of o"r attention. This history can !e di ided into si6 stages% as follo,s) #. The preliminary payments% #&#&-#&1# 1. The (ondon .ched"le% May #&1#-.eptem!er #&1? '. The Da,es Plan% .eptem!er #&1?-Jan"ary #&'A ?. The Do"ng Plan% Jan"ary #&'A-J"ne #&'# $. The 4oo er Moratori"m% J"ne #&' l-J"ly #&'1 /. The (a"sanne Con ention% J"ly #&'1 The preliminary payments ,ere s"pposed to amo"nt to a total of 1A%AAA million marks !y May #&1#. Altho"gh the >ntente Po,ers contended that only a!o"t @%AAA million of this had !een paid% and sent 3ermany n"mero"s demands and "ltimat"ms in regard to these payments% e en going so far as to threaten to occ"py the R"hr in March #&1# in an effort to enforce payment% the ,hole matter ,as dropped in May ,hen the 3ermans ,ere presented ,ith the total reparations !ill of #'1%AAA million marks. -nder press"re of another "ltimat"m% 3ermany accepted this !ill and ga e the ictors !onds of inde!tedness to this amo"nt. 5f these% @1 !illions ,ere set aside and forgotten. 3ermany ,as to pay on the other $A !illion at a rate of 1.$ !illion a year in interest and A.$ !illion a year to red"ce the total de!t. 3ermany co"ld pay these o!ligations only if t,o conditions pre ailed) *a+ if it had a !"dgetary s"rpl"s and *!+ if it sold a!road more than it !o"ght a!road *that is% had a fa ora!le !alance of trade+. -nder the first condition there ,o"ld acc"m"late in the hands of the 3erman go ernment a F"antity of 3erman c"rrency !eyond the amo"nt needed for c"rrent e6penses. -nder the second condition% 3ermany ,o"ld recei e from a!road an e6cess of foreign e6change *either gold or foreign money+ as payment for the e6cess of her e6ports o er her imports. 0y e6changing its !"dgetary s"rpl"s in marks for the foreign-e6change s"rpl"s held !y her citi=ens% the 3erman go ernment ,o"ld !e a!le to acF"ire this foreign e6change and !e a!le to gi e it to its creditors as reparations. .ince neither of these conditions generally e6isted in the period #&1#-#&'#% 3ermany co"ld not% in fact% pay reparations. The fail"re to o!tain a !"dgetary s"rpl"s ,as solely the responsi!ility of the 3erman go ernment% ,hich ref"sed to red"ce its o,n e6pendit"res or the standards of li ing of its o,n people or to ta6 them s"fficiently hea ily to yield s"ch a s"rpl"s. The fail"re to o!tain a fa ora!le !alance of trade ,as the responsi!ility eF"ally of the 3ermans and of their creditors% the 3ermans making little or no effort to red"ce their p"rchases a!road *and th"s red"ce their o,n standards of li ing+% ,hile the foreign creditors ref"sed to allo, a free flo, of 3erman goods into their o,n co"ntries on the arg"ment that this ,o"ld destroy their domestic markets for locally prod"ced goods. Th"s it can !e said that the 3ermans ,ere "n,illing to pay reparations% and the creditors ,ere "n,illing to accept payment in the only ,ay in ,hich payments co"ld honestly !e made% that is% !y accepting 3erman goods and ser ices. -nder these conditions% it is not s"rprising that the (ondon .ched"le of reparations payments ,as ne er f"lfilled. This fail"re ,as regarded !y 0ritain as proof of 3ermanyEs ina!ility to pay% !"t ,as regarded !y France as proof of 3ermanyBs "n,illingness to pay. 0oth ,ere correct% !"t the Anglo-Americans% ,ho ref"sed to allo, France to "se the d"ress necessary to o ercome 3erman "n,illingness to pay% also ref"sed to accept 3erman goods to the amo"nt necessary to o ercome 3erman ina!ility to pay. As early as #&1#% 0ritain% for e6ample% placed a 1/ percent ta6 on all imports from 3ermany. That 3ermany co"ld ha e paid in real goods and ser ices if the creditors had !een ,illing to accept s"ch goods and ser ices can !e seen in the fact that the real per capita income of the 3erman people ,as a!o"t one-si6th higher in the middle #&1AEs than it had !een in the ery prospero"s year #&#'. 8nstead of ta6ing and retrenching% the 3erman go ernment permitted an "n!alanced !"dget to contin"e year after year% making "p the deficits !y !orro,ing from the Reichs!ank. The res"lt ,as an ac"te inflation. This inflation ,as not forced on the 3ermans !y the need to pay reparations *as they claimed at the time+ !"t !y the method they took to pay reparations *or% more acc"rately% to a oid payment+. The inflation ,as not in9"rio"s to the infl"ential gro"ps in 3erman society% altho"gh it ,as generally r"ino"s to the middle classes% and th"s enco"raged the e6tremist elements. Those gro"ps ,hose property ,as in real ,ealth% either in land or in ind"strial plant% ,ere !enefitted !y the inflation ,hich increased the al"e of their properties and ,iped a,ay their de!ts *chiefly mortgages and ind"strial !onds+. The 3erman mark% ,hich at par ,as ,orth a!o"t 1A to the po"nd% fell in al"e from 'A$ to the po"nd in A"g"st #&1# to #%A1A in Co em!er #&1#. From that point it dropped to @A%AAA to the po"nd in Jan"ary #&1'% to 1A million to the po"nd in A"g"st #&1'% and to 1A !illion to the po"nd in Decem!er #&1'. 8n J"ly #&11% 3ermany demanded a moratori"m on all cash payments of reparations for the ne6t thirty months. Altho"gh the 0ritish ,ere ,illing to yield at least part of this% the French "nder PoincarK pointed o"t that the 3ermans had% as yet% made no real effort to pay and that the moratori"m ,o"ld !e accepta!le to France only if it ,ere accompanied !y Lprod"cti e g"arantees.L This meant that the creditors sho"ld take possession of ario"s forests% mines% and factories of ,estern 3ermany% as ,ell as the 3erman c"stoms% to o!tain incomes ,hich co"ld !e applied to reparations. 5n Jan"ary &% #&1'% the Reparations Commission oted ' to # *,ith 0ritain opposing France% 0elgi"m% and 8taly+ that 3ermany ,as in defa"lt of her payments. Armed forces of the three nations !egan to occ"py the R"hr t,o days later. 0ritain deno"nced this act as illegal% altho"gh it had threatened the same thing on less alid gro"nds in #&1#. 3ermany declared a general strike in the area% ceased all reparations payments% and adopted a program of passi e resistance% the go ernment s"pporting the strikers !y printing more paper money. The area occ"pied ,as no more than /A miles long !y 'A miles ,ide !"t contained #A percent of 3ermanyBs pop"lation and prod"ced @A percent of 3ermanyBs coal% iron% and steel and 2A percent of her freight traffic. 8ts rail,ay system% operated !y #2A%AAA persons% ,as the most comple6 in the ,orld. The occ"pation forces tried to r"n this system ,ith only #1%$AA troops and #%'@A cooperating 3ermans. The non-cooperating 3ermans tried to pre ent this% not hesitating to "se m"rder for the p"rpose. -nder these conditions it is a miracle that the o"tp"t of the area ,as !ro"ght "p to one-third its capacity !y the end of #&1'. 3erman reprisals and Allied co"ntermeas"res res"lted in a!o"t ?AA killed and o er 1%#AA ,o"ndedMmost of the cas"alties *'AA and 1%AAA respecti ely+ !eing inflicted !y 3ermans on 3ermans. 8n addition almost #$A%AAA 3ermans ,ere deported from the area. The 3erman resistance in the R"hr ,as a great strain on 3ermany% !oth economically and financially% and a great psychological strain on the French and 0elgians. At the same time that the 3erman mark ,as !eing r"ined% the occ"pying co"ntries ,ere not o!taining the reparations they desired. Accordingly% a compromise ,as reached !y ,hich 3ermany accepted the Da,es Plan for reparations% and the R"hr ,as e ac"ated. The only ictors in the episode ,ere the 0ritish% ,ho had demonstrated that the French co"ld not "se force s"ccessf"lly ,itho"t 0ritish appro al.G I Tragedy and Hope !y Carroll J"igley% p. 'A$-'A@

<The Da,es Plan% ,hich ,as largely a J. P. Morgan prod"ction% ,as dra,n "p !y an international committee of financial e6perts presided o er !y the American !anker Charles 3. Da,es. 8t ,as concerned only ,ith 3ermanyBs a!ility to pay% and decided that this ,o"ld reach a rate of 1.$ !illion marks a year after fo"r years of reconstr"ction. D"ring the first fo"r years 3ermany ,o"ld !e gi en a loan of N@AA million and ,o"ld pay a total of only $.#2 !illion marks in reparations. This plan did not s"persede the 3erman reparations o!ligation as esta!lished in #&1#% and the difference !et,een the Da,es payments and the payments d"e on the (ondon .ched"le ,ere added to the total reparations de!t. Th"s 3ermany paid reparations for fi e years "nder the Da,es Plan *#&1?-#&1&+ and o,ed more at the end than it had o,ed at the !eginning. The Da,es Plan also esta!lished g"arantees for reparations payments% setting aside ario"s so"rces of income ,ithin 3ermany to pro ide f"nds and shifting the responsi!ility for changing these f"nds from marks into foreign e6change from the 3erman go ernment to an agent-general for reparations payments ,ho recei ed marks ,ithin 3ermany. These marks ,ere transferred into foreign e6change only ,hen there ,as a plentif"l s"pply of s"ch e6change ,ithin the 3erman foreign-e6change market. This meant that the al"e of the 3erman mark in the foreign-e6change market ,as artificially protected almost as if 3ermany had e6change control% since e ery time the al"e of the mark tended to fall% the agent-general stopped selling marks. This allo,ed 3ermany to !egin a career of ,ild financial e6tra agance ,itho"t s"ffering the conseF"ences ,hich ,o"ld ha e res"lted "nder a system of free international e6change. .pecifically% 3ermany ,as a!le to !orro, a!road !eyond her a!ility to pay% ,itho"t the normal sl"mp in the al"e of the mark ,hich ,o"ld ha e stopped s"ch loans "nder normal circ"mstances. t is /orthy of note that this system /as set up !y the international !an6ers and that the su!se1uent lendin# of other people>s money to Germany /as :ery profita!le to these !an6ers9 -sing these American loans% 3ermanyBs ind"stry ,as largely reeF"ipped ,ith the most ad anced technical facilities% and almost e ery 3erman m"nicipality ,as pro ided ,ith a post office% a s,imming pool% sports facilities% or other nonprod"cti e eF"ipment. ;ith these American loans 3ermany ,as a!le to re!"ild her ind"strial system to make it the second !est in the ,orld !y a ,ide margin% to keep "p her prosperity and her standard of li ing in spite of the defeat and reparations% and to pay reparations ,itho"t either a !alanced !"dget or a fa ora!le !alance of trade. 0y these loans 3ermanyBs creditors ,ere a!le to pay their ,ar de!ts to >ngland and to the -nited .tates ,itho"t sending goods or ser ices. Foreign e6change ,ent to 3ermany as loans% !ack to 8taly% 0elgi"m% France% and 0ritain as reparations% and finally !ack to the -nited .tates as payments on ,ar de!ts. The only things ,rong ,ith the system ,ere *a+ that it ,o"ld collapse as soon as the -nited .tates ceased to lend% and *!+ in the meantime de!ts ,ere merely !eing shifted from one acco"nt to another and no one ,as really getting any nearer to sol ency. 8n the period #&1?-#&'#% 3ermany paid #A.$ !illion marks in reparations !"t !orro,ed a!road a total of #@./ !illion marks. Cothing ,as settled !y all this% !"t the international !ankers sat in hea en% "nder a rain of fees and commissions.G I Tragedy and Hope !y Carroll J"igley% p. 'A@-'A& <The Da,es Plan ,as replaced !y the Do"ng Plan at the !eginning of #&'A for a ariety of reasons. 8t ,as recogni=ed that the Da,es Plan ,as only a temporary e6pedient% that 3ermanyBs total reparations o!ligation ,as increasing e en as she paid !illions of marks% !eca"se the Da,es Plan payments ,ere less than the payments reF"ired !y the (ondon .ched"le: that the 3erman foreign-e6change market had to !e freed in order that 3ermany might face the conseF"ences of her orgy of !orro,ing% and that 3ermany Lco"ld not payL the standard Da,es payment of 1.$ !illion marks a year ,hich ,as reF"ired in the fifth and follo,ing years of the Da,es Plan. 8n addition% France% ,hich had !een forced to pay for the reconstr"ction of her de astated areas in the period #&#&-#&1/% co"ld not afford to ,ait for a generation or more for 3ermany to repay the cost of this reconstr"ction thro"gh reparations payments. France hoped to o!tain a larger immediate income !y <commerciali=ingG some of 3ermanyBs reparations o!ligations. -ntil this point all the reparations o!ligations ,ere o,ed to go ernments. 0y selling !onds *!acked !y 3ermanBs promise to pay reparations+ for cash to pri ate in estors France co"ld red"ce the de!ts she had inc"rred for reconstr"ction and co"ld pre ent 0ritain and 3ermany from making f"rther red"ctions in the reparations o!ligations *since de!ts to pri ate persons ,o"ld !e less likely to !e rep"diated than o!ligations !et,een go ernments+. 0ritain% ,hich had f"nded her ,ar de!ts to the -nited .tates at ?./ !illion dollars in #&1'% ,as F"ite prepared to red"ce 3erman reparations to the amo"nt necessary to meet the payments on this ,ar de!t. France% ,hich had ,ar de!ts of ? !illion dollars as ,ell as reconstr"ction e6penses% hoped to commerciali=e the costs of the latter in order to o!tain 0ritish s"pport in ref"sing to red"ce reparations !elo, the total of !oth items. The pro!lem ,as ho, to o!tain 3erman and 0ritish permission to Lcommerciali=eL part of the reparations. 8n order to o!tain this permission France made a gross error in tactics) she promised to e ac"ate all of the Rhineland in #&'A% fi e years !efore the date fi6ed in the Treaty of Hersailles% in ret"rn for permission to commerciali=e part of the reparations payments. This deal ,as em!odied in the Do"ng Plan% named after the American 5,en D. Do"ng *a Morgan agent+% ,ho ser ed as chairman of the committee ,hich dre, "p the ne, agreements *Fe!r"ary to J"ne #&1&+. T,enty go ernments signed these agreements in Jan"ary #&'A. The agreement ,ith 3ermany pro ided for reparations to !e paid for $& years at rates rising from 8.2 !illion marks in #&'# to a peak of 1.? !illion marks in #&// and then declining to less than a !illion marks in #&@@. The earmarked so"rces of f"nds in 3ermany ,ere a!olished e6cept for //A million marks a year ,hich co"ld !e <commerciali=ed%G and ail protection of 3ermanyBs foreign-e6change position ,as ended !y placing the responsi!ility for transferring reparations from marks to foreign c"rrencies sF"arely on 3ermany. To assist in this task a ne, pri ate !ank called the 0ank for 8nternational .ettlements ,as esta!lished in .,it=erland at 0asle. 5,ned !y the chief central !anks of the ,orld and holding acco"nts for each of them% the 0ank for 8nternational .ettlements ,as to ser e as <a Central 0ankersE 0ankG and allo, international payments to !e made !y merely shifting credits from one co"ntryBs acco"nt to another on the !ooks of the !ank.G I Tragedy and Hope !y Carroll J"igley% p. 'A&-'#A

<The Do"ng Plan% ,hich ,as to ha e !een a final settlement of the reparations F"estion% lasted for less than eighteen months. The crash of the Ce, Dork stock market in 5cto!er #&1& marked the end of the decade of reconstr"ction and opened the decade of destr"ction !et,een the t,o ,ars. This crash ended the American loans to 3ermany and th"s c"t off the flo, of foreign e6change ,hich made it possi!le for 3ermany to appear as if it ,ere paying reparations. 8n se en years% #&1?-#&'#% the de!t of the 3erman federal go ernment ,ent "p /./ !illion marks ,hile the de!ts of 3erman local go ernments ,ent "p ##./ !illion marks. 3ermanyBs net foreign de!t% !oth p"!lic and pri ate% ,as increased in the same period !y #@./ !illion marks% e6cl"si e of reparations. 3ermany co"ld pay reparations only so long as her de!ts contin"ed to gro, !eca"se only !y increasing de!ts co"ld the necessary foreign e6change !e o!tained. ."ch foreign loans almost ceased in #&'A% and !y #&'# 3ermans and others had !eg"n a <flight from the mark%G selling this c"rrency for other monies in ,hich they had greater confidence. This created a great drain on the 3erman gold reser e. As the gold reser e d,indled% the ol"me of money and credit erected on that reser e had to !e red"ced !y raising the interest rate. Prices fell !eca"se of the red"ced s"pply of money and the red"ced demand% so that it !ecame almost impossi!le for the !anks to sell collateral and other properties in order to o!tain f"nds to meet the gro,ing demand for money. At this point% in April #&'#% 3ermany anno"nced a c"stoms "nion ,ith A"stria. France protested that s"ch a "nion ,as illegal "nder the Treaty of .aint-3ermain% !y ,hich A"stria had promised to maintain its independence from 3ermany. The disp"te ,as referred to the ;orld Co"rt% !"t in the meantime the French% to disco"rage s"ch attempts at "nion% recalled French f"nds from !oth A"stria and 3ermany. 0oth co"ntries ,ere "lnera!le. 5n May @% #&'#% the largest A"strian !ank% the Credit-Anstalt *a Rothschild instit"tion+% ,ith e6tensi e interests% almost control% in 2A percent of A"striaEs ind"stry% anno"nced that it had lost #?A million schillings *a!o"t $1A million+. The tr"e loss ,as o er a !illion schillings% and the !ank had really !een insol ent for years. The Rothschilds and the A"strian go ernment ga e the Credit-Anstalt #/A million to co er the loss% !"t p"!lic confidence had !een destroyed. A r"n !egan on the !ank. To meet this r"n the A"strian !anks called in all the f"nds they had in 3erman !anks. The 3erman !anks !egan to collapse. These latter !egan to call in all their f"nds in (ondon. The (ondon !anks !egan to fall% and gold flo,ed o"t,ard. 5n .eptem!er 1lst >ngland ,as forced off the gold standard. D"ring this crisis the Reichs!ank lost 1AA million marks of its gold reser e and foreign e6change in the first ,eek of J"ne and a!o"t #%AAA million in the second ,eek of J"ne. The disco"nt rate ,as raised step !y step to #$ percent ,itho"t stopping the loss of reser es !"t destroying the acti ities of the 3erman ind"strial system almost completely. 3ermany !egged for relief on her reparations payments% !"t her creditors ,ere rel"ctant to act "nless they o!tained similar relief on their ,ar-de!t payments to the -nited .tates. The -nited .tates had an "nderstanda!le rel"ctance to !ecome the end of a chain of rep"diation% and insisted that there ,as no connection !et,een ,ar de!ts and reparations *,hich ,as tr"e+ and that the >"ropean co"ntries sho"ld !e a!le to pay ,ar de!ts if they co"ld find money for armaments *,hich ,as not tr"e+. ;hen .ecretary of the Treas"ry Mellon% ,ho ,as in >"rope% reported to President 4oo er that "nless relief ,as gi en to 3ermany immediately on her p"!lic o!ligations% the ,hole financial system of the co"ntry ,o"ld collapse ,ith ery great loss to holders of pri ate claims against 3ermany% the President s"ggested a moratori"m on inter-go ernmental de!ts for one year. .pecifically% America offered to postpone all payments o,ed to it for the year follo,ing J"ly #% #&'#% if its de!tors ,o"ld e6tend the same pri ilege to their de!tors. Acceptance of this plan !y the many nations concerned ,as delayed "ntil the middle of J"ly !y French efforts to protect the payments on commerciali=ed reparations and to sec"re political concessions in ret"rn for accepting the moratori"m. 8t so"ght a ren"nciation of the A"stro-3erman c"stoms "nion% s"spension of !"ilding on the second pocket !attleship% acceptance !y 3ermany of her eastern frontiers% and restrictions on training of Lpri ateL military organi=ations in 3ermany. These demands ,ere re9ected !y the -nited .tates% 0ritain% and 3ermany% !"t d"ring the delay the 3erman crisis !ecame more ac"te. The Reichs!ank had its ,orst r"n on J"ly 2th: on the follo,ing day the Corth 3erman ;ool Company failed ,ith a loss of 1AA million marks: this p"lled do,n the .chrOder 0ank *,ith a loss of 1? million marks to the city of 0remen ,here its office ,as+ and the DarmstPdter 0ank *one of 3ermanyBs L0ig Fo"r 0anksL+ ,hich lost 1A million in the ;ool Company. >6cept for a credit of ?AA million marks from the 0ank for 8nternational .ettlements and a Lstandstill agreementL to rene, all short-term de!ts as they came d"e% 3ermany o!tained little assistance. .e eral committees of international !ankers disc"ssed the pro!lem% !"t the crisis !ecame ,orse% and spread to (ondon. 0y Co em!er #&'# all the >"ropean Po,ers e6cept France and her s"pporters ,ere determined to end reparations. At the (a"sanne Conference of J"ne #&'1 3erman reparations ,ere c"t to a total of only ' !illion marks% !"t the agreement ,as ne er ratified !eca"se of the ref"sal of the -nited .tates Congress to c"t ,ar de!ts eF"ally drastically. Technically this meant that the Do"ng Plan ,as still in force% !"t no real effort ,as made to restore it and% in #&''% 4itler rep"diated all reparations. 0y that date% reparations% ,hich had poisoned international relations for so many years% ,ere !eing s,allo,ed "p in other% more terri!le% pro!lems.G I Tragedy and Hope !y Carroll J"igley% p. '#A-'#1

Lor .onta%# Norman, t"e Governor of t"e Bank of >n%lan , an "is assistant *ir +"arles / irectors of t"e Bank for 2nternational *ettlements in Basle IBaselJ, *witAerlan in .ay &'(7. (P"oto0 Finance and Empire: ir !"arles Addis# $%&$'$%() $y Ro$erta /ll$ert Dayer)

is atten t"e first meetin% of t"e $oar of

6"omas -. Watson (sittin% to 4itler@s left), t"e Presi ent of 2nternational B#siness .ac"ines +or!. (also known as 2B.), meets wit" NaAi Germany@s ictator / olf 4itler in &'(8. Thomas ,- Watson was a Class B Dire.tor of the Federal Reserve Bank of New York from !"&& to !"*+ an a mem$er of t"e +o#ncil on Forei%n Relations. 6"omas -. Watson an "is 2B. !rovi e / olf 4itler an t"e NaAis wit" !#nc"= car mac"ines. 6"e NaAi German %overnment, military, an cor!orations #se !#nc"=car mac"ines to create an assi%n serial n#m$ers for !risoners workin% as slave la$orers in t"e concentration cam!s.

NaAi Germany@s ictator / olf 4itler stan on a !atio wit" :#n% 4sian%="si I4.4. :#n%J, Nationalist +"ina@s .inister of Finance (&'((=&'BB) an Governor of t"e +entral Bank of +"ina (&'((=&'B?), #rin% :#n%@s visit to Berc"tes%a en, Germany in &'(8. 4.4. :#n% earne a Bac"elor of /rts e%ree at ,$erlin +olle%e in &'7H an a .aster of /rts e%ree at Yale 3niversity in &'78. 4.4. :#n% was marrie to *oon% /i=lin%, t"e sister of .a ame +"ian% :ai=s"ek (*oon% .ei=lin%). NaAi German officers traine Generalissimo +"ian% :ai=s"ek@s army #rin% t"e &'(7sK Generalissimo +"ian% :ai=s"ek@s a o!te son +"ian% Wei=k#o serve in t"e We"rmac"t an !artici!ate in t"e /nsc"l#ss. (6ime Life !"oto)

.onta%# Norman, t"e Governor of t"e Bank of >n%lan , s"akes "an s wit" 4;almar *c"ac"t, Presi ent of t"e Reic"s$ank, at Liver!ool *treet *tation in Lon on in Decem$er &'(<. 4;almar *c"ac"t was trie in N#rem$er% for war crimes after Worl War 22.

Great De!ression (&')')0 ,r%aniAe +rimeF

/ crow %at"ers at t"e Fe eral 4all in New York +ity o!!osite t"e *tock >Lc"an%e in ,cto$er &')' on t"e ay t"e New York *tock >Lc"an%e cras"e . (/P1Wi e Worl P"otos)

The scene on ;all .treet ,hen the Ce, Dork .tock >6change crashed in 5cto!er #&1&. Pre io"s economic crises and depressions in America occ"rred in #@#&% #@'2% #@$2% #@2'% #@@?% #@&'% and #&A2. *0ettmann7C5R08.+

Central !ankers meet in do,nto,n Manhattan% from left to right) 49almar .chacht *President of the Reichs!ank+% 0en9amin .trong *President of the Federal Reser e 0ank of Ce, Dork+% Montag" Corman *3o ernor of the 0ank of >ngland+% and Mr. Rist appear on the rooftop of the Federal Reser e 0ank of Ce, Dork headF"arters in Ce, Dork City in J"ly #&12.

,wen D. Yo#n% (center), De!#ty +"airman of t"e Fe eral Reserve Bank of New York (&')8=&'(8), an -.P. .or%an 5 +o. $anker 6"omas W. Lamont (secon from ri%"t) watc" 4;almar *c"ac"t (ri%"t), t"e Presi ent of t"e Reic"s$ank, si%n t"e Yo#n% Plan at t"e 4otel Geor%e 9 in Paris, France on -#ne 8, &')'. (P"oto0 M Bil arc"iv Pre#Nisc"er :#lt#r$esitA)

,wen D. Yo#n%, /merican re!aration eL!ert an De!#ty +"airman of t"e Fe eral Reserve Bank of New York, s"akes "an s wit" Dr. 4;almar *c"ac"t, German ele%ate to t"e Re!arations +onference an Presi ent of t"e Reic"s$ank (Germany@s central $ank), at a train station in Paris, France on -#ne &8, &')', from t"e win ow of a train w"ic" carrie "im to t"e *.*. O#itania, w"ic" carrie "im to t"e 3nite *tates. (P"oto0 M Bettmann1+,RB2*)

3erman dignitaries attend the f"neral of the late 3"sta .tresemann% Foreign Minister of 3ermany% in front of the Reichstag in 0erlin% 3ermany on 5cto!er /% #&1&. *Photo) 0"ndesarchi 73erman Federal Archi es+

&')' ,$it#aries

/l0ert 1trauss (/#%#st )H, &<HB= .arc" )<, &')') 9ice +"airman of t"e Fe eral Reserve (,cto$er )H, &'&<= .arc" &?, &')7)

2en-' 2ii.hi Tanaka (-#ne )) , &<HB= *e!tem$er )', &')') Prime .inister of -a!an (/!ril )7, &')8=-#ly ), &')')K Forei%n .inister of -a!an (/!ril )7, &')8=-#ly ), &')')

2ustav 1tresemann (.ay &7, &<8<= ,cto$er (, &')') +"ancellor of Germany (/#%#st &(, &')(P Novem$er )(, &')() an Forei%n .inister of Germany (/#%#st &(, &')(P,cto$er (, &')')

Bernhard von B3low (.ay (, &<B'= ,cto$er )<, &')') +"ancellor of Germany (,cto$er &H, &'77=-#ly &(, &'7')K Forei%n .inister of Pr#ssia (&<'8=&'7')

2eor4es Clemen.eau (*e!tem$er )<, &<B& P Novem$er )B, &')') Prime .inister of France ()< ,cto$er &'7H P )B -#ly &'7', &H Novem$er &'&8 P )7 -an#ary &')7)

;illiam 4o,ard Taft *left+% Chief J"stice of the -... ."preme Co"rt% administers the oath of office to incoming -... .ecretary of .tate 4enry (. .timson in ;ashington% D.C. on March 1@% #&1&. ;illiam 4o,ard Taft and 4enry (. .timson ,ere mem!ers of .k"ll & 0ones% a secret society located at Dale -ni ersity in Ce, 4a en% Connectic"t% -...A. *Photo) (i!rary of Congress+

Mem!ers of the American Reparations Commission% ,ho recently ret"rned to America after negotiating a settlement ,ith the >"ropean nations% ,ere in conference ,ith -... .ecretary of .tate 4enry (. .timson on J"ne 1$% #&1&. 8n the front ro,% seated% left to right) John Pierpont Morgan Jr. *Partner of J.P. Morgan & Co. !ank+: -... .ecretary of .tate 4enry (. .timson: and 5,en D. Do"ng *chairman of the Federal Reser e 0ank of Ce, Dork+% chairman. 8n the !ack ro,% left to right) Thomas ;. (amont *Partner of J.P. Morgan & Co. !ank+: Thomas Celson Perkins: -nder .ecretary of .tate Joseph P. Cotton: and Assistant .ecretary of .tate ;illiam R. Castle. .timson% Do"ng% (amont% Perkins% and Cotton ,ere mem!ers of the Co"ncil on Foreign Relations. *Photo) 4arris & >,ing Collection: (i!rary of Congress+

8nd"strial men meet ,ith President 4er!ert 4oo er at the ;hite 4o"se in ;ashington% D.C. on Co em!er 1#% #&1&. 8n the gro"p% fifth from the right is the .ecretary of the Treas"ry Andre, Mellon: ninth from the right% .ecretary of Commerce Ro!ert P. (amont: and se enth from the right is 4enry Ford. 5thers in the gro"p are% J"li"s Rosen,ald% Clarence M. ;oolley% ;alter Teagle% 5,en D. Do"ng% Matthe, .. .loan% >"gene 3. 3race% Myron C. Taylor% Alfred P. .loan% Jr.% Pierre D"pont% ;alter 3ifford% .am"el ;. Rey!"rn% Jesse 8. .tra"s% ;illiam 0"tter,orth% >.J. Q"las% 3eorge (a"ghlin% A.;. Ro!ertson% Redfield Proctor% Philip 4. 3adsen% >rnest T. Trigg% 4enry M. Ro!inson and J"li"s 0arnes. ?oo:er, Mellon, Rosen/ald, @oolley, Aoun#, Grace, Taylor, &loan, Gifford, Rey!urn, &traus, 5utter/orth, Ro!ertson, Ro!inson, and 5arnes /ere mem!ers of the )ouncil on Forei#n Relations9 *Photo) 4arris and >,ing Collection: (i!rary of Congress+

Adolf 4itler% leader of the Cational .ocialist 3erman ;orkersE Party% sal"tes to his s"pporters d"ring a isit to M"nich% 3ermany in #&1&. *Photo !y 4"lton Archi e73etty 8mages+

6"e War$#r% Brot"ers (from left to ri%"t) Pa#l War$#r%, FeliL War$#r%, .aL War$#r%, FritA War$#r%, an /$y War$#r% !ose for a formal !ortrait on /#%#st )&, &')'. Pa#l War$#r% was t"e 9ice +"airman of t"e Fe eral Reserve from &'&H to &'&<. Pa#l War$#r% an FeliL War$#r% were mem$ers of t"e +o#ncil on Forei%n Relations. (P"oto0 T"e *ar+urgs $y Ron +"ernow)

Panicke stock tra ers crow o#tsi e t"e New York *tock >Lc"an%e in New York +ity on t"e ay of t"e market cras" on ,cto$er )B, &')'. (Bettmann1+,RB2*)

+row at New YorkQs /merican 3nion Bank #rin% a $ank r#n early in t"e Great De!ression. 6"e Bank o!ene in &'&8 an went o#t of $#siness on -#ne (7, &'(&. +on%ress !asse t"e Bankin% /ct of &'((, also known as t"e Glass=*tea%all /ct, w"ic" calle for t"e se!aration of commercial an investment $ankin%K reR#ire t"e #se of %overnment sec#rities as collateral for Fe eral Reserve notesK an esta$lis"e t"e Fe eral De!osit 2ns#rance +or!oration (FD2+). +on%ress re!eale t"e Glass=*tea%all /ct in &'''. (P"oto0 *ocial *ec#rity / ministration)

,cto$er )B &')'0 6"e front !a%e of t"e Brooklyn Daily >a%le, !#$lis"e on t"e ay of t"e initial Wall *treet +ras", known as Black 6"#rs ay. (4#lton1Getty 2ma%es)

/ s!ec#lator tries to sell "is car after losin% all "is money in t"e market. (Bettmann1+or$is)

Re!arations eL!erts meet to isc#ss German war e$t in Paris, France on Fe$r#ary )7, &')'. From left to ri%"t, seate 0 ,wen D. Yo#n% of /merica, -.P. .or%an of /merica, *ir -osia" *tam! of >n%lan . *tan in% in t"e rear is 6"omas W. Lamont of /merica. Lor Revelstoke of >n%lan was in atten ance #rin% t"e o!enin% of t"e German Re!arations +ommittee. 5wen D- Youn4 .hairman of 2eneral 6le.tri. Co-' and ,-7- 8or4an 9 Co- partner Thomas W- Lamont were mem0ers of the Coun.il on Forei4n Relations- (P"oto0 M Bettmann1+,RB2*)

*ecretary of t"e 6reas#ry /n rew W. .ellon, co#nter c"airman of t"e Boar of 6r#stees, isc#sses t"e Re +ross en orsement f#n !ro%ram wit" t"e mem$ers of t"e Boar #rin% t"eir ann#al conference recently in Was"in%ton, D.+., 3.*./. on Decem$er &(, &')'. Left to ri%"t0 Walter ,rr Woo s, 6reas#rer of t"e 3nite *tatesK ,% en L. .ills, 3n er *ecretary of t"e 6reas#ryK FeliL .. War$#r%, New YorkK *ecretary /n rew W. .ellonK -o"n B. .iller, L/, -ames Parmelee, Was"in%tonK -o"n B. Larner, Was"in%ton (stan in%)K -o"n B. +remer -r.K /ssistant

secretary of t"e Boar K 4owar -. *imons, secretary an W.4. Bo en, 6reas#rer. /ndrew W- 8ellon( 54den L- 8ills( and Feli: 8- War0ur4 were mem0ers of the Coun.il on Forei4n Relations- (M Bettmann1+,RB2*)

Notorio#s %an%ster /l +a!one attem!ts to "el! #nem!loye men wit" "is so#! kitc"en, Bi% /lQs :itc"en for t"e Nee y, in +"ica%o on Novem$er &H, &'(7. (Bettmann1+,RB2*)

3nem!loye /merican men eatin% in a so#! kitc"en circa &'(7. (Bettmann1+,RB2*)

<;orldEs 4ighest .tandard of (i ingRG -nemployed Americans of African descent ,ait in a so"p line.

A L0on"s ArmyL encampment in ;ashington% D.C. in #&'1. *Photo) -P87Cor!is-0ettmann+

.ome of the #$%AAA mem!ers of the L0on"s ArmyL I ;orld ;ar 8 eterans reF"esting their !on"s money that ,as promised to them d"ring ;orld ;ar 8 I rest in front of the Capitol in ;ashington% D.C. in #&'1 as they o, not to lea e "ntil the !on"s promised them for ser ice d"ring the ;ar ,as paid. *Photo) Cor!is70ettmann I -nder,ood+

-... Army 3eneral Do"glas MacArth"r *right+ and -... Army Ma9or D,ight >isenho,er *left+ in "niform prior to the forci!le dispersing of the 0on"s Army in #&'1. *Photo) Cational Archi es+

L0on"s MarchersL and police !attle in ;ashington% D.C. in J"ly #&'1. *Cote) This photograph ,as taken !y an "nkno,n Associated Press photographer. *Photo) Cational Archi es+

Federal troops tear-gas mem!ers of the 0on"s Army in J"ly #&'1 *Photo) Cational Archi es+

An estimated 1/? Chicago police officers attacking a Memorial Day picnic of appro6imately #AAA "narmed strikers and family mem!ers at the Rep"!lic .teel plant in Chicago on May 'A-'#% #&'2. #A ,ere shot dead% another 'A ,ere ,o"nded% and nearly the same n"m!er s"ffered serio"s head in9"ries from police !eatings. *AP Photo+

/t a steel !lant in /liR#i!!a, Pennsylvania, 3.*./. on .ay &(, &'(8, t"e Reveren 4.L. O#een, storekee!er at t"e -ones an La#%"lin +or!oration steel !lant, c"ose to work, alt"o#%" )8,777 men were i le w"en t"e +ommittee of 2n #strial ,r%aniAations calle a strike at t"e !lant. 6"is is w"at "a!!ene w"en Rev. O#een trie to !ass t"ro#%" !icket lines. /lt"o#%" $eset $y inf#riate !ickets, "e fo#%"t $ack valiantly, $itin% t"e "an s of one. 4e s#ffere only a $lack eye in t"e fi%"tin%. (M Bettmann1+,RB2*)

A !loody !attle !et,een strikers and sca!s in a strike at Rep"!lic .teel in Cle eland% 5hio in #&'2. At least eighteen ,orkers lost their li es that day. *;ide ;orld Photo+

Cle eland cop attempt to !reak "p an effort !y strikers to o ert"rn a foremanBs car d"ring a strike in the #&'As. *8nterphoto+

Ford Motor Company to"ghs hired !y 4arry 0ennett of FordEs <.er ice DepartmentG approach "nion leaders Ro!ert Qanter% ;alter Re"ther and Richard Frankensteen% ,ho are passing o"t "nion pamphlets at the Ri er Ro"ge plant% in May #&'2 *Photo taken !y James R. Qilpatrick of the Detroit Ce,s - The Archi es of (a!or and -r!an Affairs% ;ayne .tate -ni ersity+

<.it do,nG strike of -nited A"to ;orkers at the 3eneral Motors Plant in Flint% Michigan in #&'2. *0ettmann Cor!is+

A mother and her t,o children li e in a tent in r"ral America d"ring the 3reat Depression.

A d"st storm en elopes >lkhart% Qansas on May 1#% #&'2. Prolonged dro"ght thro"gho"t the #&'As red"ced the Qansas ,heat fields to d"st. *Photo) (i!rary of Congress+

A d"st storm in Te6as in #&'$

An a!andoned farm in Ce, Me6ico hit hard !y the d"st storms *Photo) Dorthea (ange 7 F.A+

-nemployed Americans li e in shanty home d"ring the 3reat Depression.

A shantyto,n% also kno,n as 4oo er ille% in .eattle d"ring the 3reat Depression *-ni ersity of ;ashington (i!raries .pecial Collections+

(eft) A ;PA pro9ect) 3old depository% Fort Qno6% Qent"cky Right) A ;PA pro9ect) (incoln T"nnel% Ce, Jersey to Ce, Dork City

(eft) A ;PA pro9ect) The Mall% ;ashington% D.C. Right) A ;PA pro9ect) Soo% ;ashington% D.C.

;ealthy Americans cele!rate the end of Prohi!ition at a local saloon in #&''. *Photo) 0ro,n 0rothers+

A ery ,earied President 4er!ert 4oo er at a gridiron dinner in March #&'1. *Photo) Pre"ssischer Q"lt"r!esit=% 0erlin+

Franklin Roose elt deli ers his ina"g"ral address in front of the Capitol in ;ashington% D.C. on March ?% #&''. *Photo) Franklin D. Roose elt (i!rary+

A city police officer is seen maintaining order as a gro"p of merchants distri!"te !o6es of apples to "nemployed men so that the "nemployed men can sell apples on street corners. *Photo) 0ro,n 0rothers+

>6cerpts from The Memoirs of Herbert Hoover: The Great Depression, 1929 19!1 !y ?er!ert ?oo:er *p"!lished in #&$1+% Chapter '/ *Collecti ism Comes to the C"rrency I and 8ts ConseF"ences+% p. '&A-?A2 <Altho"gh Roose elt had denied any s"ch intent d"ring the campaign of #&'1% he stepped as soon as possi!le into managed c"rrency% the po,er to create fiat money% and the a!andonment of the con erti!le gold standard 9"st as 8 had forecast. 8n e ery case% that ,as the first step to,ard fascism% comm"nism% socialism% statism% planned economy% or ,hate er other name collecti ism happens to !e "sing at the moment. C"rrency con erti!le into gold of the legal specifications is a ital protection against economic manip"lation !y the go ernment. As long as c"rrencies are con erti!le% go ernments cannot easily tamper ,ith the price of goods% and therefore the ,age standards of the co"ntry. They cannot easily confiscate the sa ings of the people !y manip"lation of inflation and deflation. They cannot easily enter into c"rrency e6pansion for go ernment e6pendit"res. 5nce free of con erti!le standards% the e6ec"ti es of e ery Lmanagedc"rrencyL co"ntry had gone on a spree of go ernment spending% and the people there!y lost control of the p"!lic p"rseMtheir first defense against tyranny. ;ith Lmanaged c"rrency%L international e6change rates come "nder the control of the go ernment. The conseF"ence is c"rrency ,ar% as their manip"lators in the end in aria!ly seek to shift international prices to the s"pposed ad antage of their o,n co"ntry. -ncertainty of al"es ro!s people of their po,er to test al"es and lessens their initiati e. Depri ing the people of confidence in their c"rrency plants a fear in their hearts ,hich ca"ses them to hesitate in p"rs"ing prod"cti e enterprises and renders them dependent "pon the go ernment. A con erti!le c"rrency is the first economic !"l,ark of free men. Cot only is this a F"estion of economic freedom% !"t more deeply is it a F"estion of morals. The moral iss"e lies in the sacredness of go ernment ass"rances% promises% and g"arantees. )i:ili8ation mo:es for/ard on promises that are 6ept9 t #oes !ac6/ard /ith e:ery !ro6en promise9 Durin# my administration refused to compromise /ith the principle of the con:erti!le #old standard9 Gold at B-C94D an ounceE-F9-- #rains to the dollarE/as the relati:e measurin# stic6 of our /a#es, our ser:ices, our pensions, our de!ts, and our assets9 n a /orld of a!andoned standards and fluctuatin# currencies, the transactions, the faith, and the confidence of the /hole earth /as thus a!le to rest upon the %merican dollar9 @hat sta!ility there /as in international trade resulted from this Gi!raltar>s clin#in# to its con:erti!le #old standard9 A prime reF"isite of ,orld reco ery ,as the maintenance and strengthening of this fortress of financial integrity. 0"t% !eyond all that% it ,as the protection of the citi=enBs primary freedom from money peonage and the disg"ised sei="re of his assets ,itho"t compensation !y his go ernment. 8 ha e already recorded o"r charges in this matter in the campaign of #&'1 and .enator 3lassBs attack on me for s"ggesting that Roose elt intended to manip"late the c"rrency. 8 may ,ell recall here that in this attack 3lass e6hi!ited a sadly failing memory of the circ"mstances of o"r s"ccessf"l !attle against !eing p"shed off the gold standard in the ,inter of #&'1. ;e easily pro ed that 3lass himself had taken part in o"r pre enti e meas"res !y the doc"mentation and legislation in that !attle. Despite 3lass and his oratory% ,e dro e Roose elt to his LCo enantL speech of Co em!er ?% #&'1% ,hich can ,ell !e repeated here) 8t is ,orthy of note that no adeF"ate ans,er has !een made to the magnificent philippic of .enator 3lass the other night% in ,hich he sho,ed ho, "nso"nd this assertion TRoose eltBs intention to a!andon the gold standardU . . . ,as. And 8 might add% "enator Glass made a devastating challenge that no responsible government #o$ld have sold to the co$ntry sec$rities payable in gold if it %ne# that the promise&yes, the covenant&embodied in these sec$rities ,as as d"!io"s as the President of the -nited .tates claims it ,as. This speech is omitted from the ol"mes of Roose eltBs speeches a"thori=ed and edited !y him. 8t can !e fo"nd in the 'e# (or% Times of Co em!er $% #&'1. After this speech% prior to the a!andonment of the gold standard% Roose elt appro ed an iss"e of N@AA%AAA%AAA in sec"rities of the -nited .tates go ernment paya!le in L-nited .tates coin of present al"e.L 4o, he reconciled this action ,ith his intent to destroy ?& per cent of their al"e has ne er !een disclosed. ABANDONMENT OF THE GOLD STANDARD The march to,ard Lmanaged c"rrencyL came F"ickly in legislation follo,ing Roose eltBs ina"g"ration. 8t is desira!le here to re ie, !riefly these acts. The >mergency 0anking Act of March% #&''% not only reaffirmed the do"!tf"l ;orld ;ar 8 act of 5cto!er /% #&#2% in the "se of ,hich Roose elt had ref"sed to s"pport me. 8t ga e the President in a national emergencyMas to the e6istence of ,hich he ,as made sole 9"dgeMa"thority to ass"me complete control o er all Ltransactions in foreign e6changeL and Ltransfers of credit !et,een% or payments !y% !anking instit"tions.L 5n April $% #&''% the President iss"ed an >6ec"ti e 5rder reF"iring all persons to deli er all gold coin% gold certificates% and !"llion to the !anks in e6change for c"rrency% the !anks to deli er the gold to the Federal Reser e. 4e set "p fines of "p to N#A%AAA and imprisonment as a penalty. 4e claimed as a"thority !oth the Trading ,ith the >nemy Act of #&#2 and the >mergency 0anking Act. 8t can !e said at once that the Congress did not kno, they ,ere gi ing a,ay any s"ch a"thority. > en a d"mmy Congress ,o"ld at least ha e raised some protest had it kno,n it in time. 4o,e er% the thing ha ing !een done% the r"!!er-stamp Congress specifically condoned the action ten months later !y .ection #' of the 3old Reser e Act of Jan"ary 'A% #&'?. The amo"nt of gold in the !anks and

the Treas"ry at that time ,as o er N?%AAA%AAA%AAA. The act"al amo"nt of gold scraped "p from personal holdings pro ed to !e "nder N?AA%AAA%AAAMa tri ial ret"rn for s"ch a gross go ernmental iolation of pledged ,ord and personal li!erty. 5ne of the poignant episodes in the co"rse of these c"rrency actions ,as the scathing den"nciation of them !y .enator 3lass as a !etrayal of the promises he had !een gi en in ret"rn for his agreement to attack my administration d"ring the #&'1 campaign. ;hen Roose elt a!andoned the gold standard .enator 3lass% on April 12% #&''% attacked the President in one of his most !itter statements on the floor of the .enate) 8 reproached the then President of the -nited .tates T4oo erU and the .ecretary of the Treas"ry for saying that this co"ntry ,as ,ithin t,o ,eeks of going off the gold standard. . . . Franklin D. Roose elt% no, President of the -nited .tates . . . said the speech ,as to him an inspiration. . . . 4e te6t"ally commended the speech ,hich so !itterly critici=ed his political ad ersary. . . . >ngland ,ent off the gold standard !eca"se she ,as compelled to do so% not !y choice... ;hy are ,e going off the gold standardR ;ith nearly ?A per cent of the entire gold s"pplies of the ,orld% ,hy are ,e going off the gold standardR ;ith all the earmarked gold% ,ith all the sec"rities of o"rs that they hold% foreign go ernments co"ld ,ithdra, in total less than N2AA%AAA%AAA of o"r gold% ,hich ,o"ld lea e "s an ample f"nd of gold% in the e6tremist case to maintain gold payments !oth a!road and at home. To me% the s"ggestion that ,e may de al"e the gold dollar $A per cent means national rep"diation. To me it means dishonor: in my conception of it% it is immoral. All the legalistic arg"ments ,hich the la,yers of the .enate% men of eminent a!ility and refinement% may make here% or ha e made here% ha e not dislodged from my mind the irre oca!le con iction that it is immoral% and that it means not only a contra ention of my partyBs platform in that respect% !"t of the promises of party spokesmen d"ring the campaign. . . . . . . there ,as ne er any necessity for a gold em!argo. There is no necessity for making stat"tory criminals of citi=ens of the -nited .tates ,ho may please to take property in the shape of gold or c"rrency o"t of !anks and "se it for their o,n p"rposes as they may please. . . . 8f there ,ere need to go off the gold standard% ery ,ell% 8 ,o"ld say let "s go off the gold standard: !"t there has !een no need for that. (ater on .enator 3lass sent me% thro"gh 5gden Mills% a er!al apology for his address d"ring the campaign and ,ord that he had made it at Roose eltBs reF"est and "pon a solemn ass"rance that there ,o"ld !e no tinkering ,ith the gold standard. Mr. Mills s"ggested he ,rite me a note% !"t he ne er did. 4o,e er% he did sho, me good ,ill !y ,arning me of a harmf"l and ,icked action directed against me. >rnest Q. (indley% a col"mnist s"pporter of the Roose elt administrations% pro ides an interesting description of Roose eltBs intellect"al processes) Mr. Roose elt at no time said that !y so$nd money he meant the e)isting gold content of the dollar* * * * The conser ati es nat"rally ass"med he meant a dollar of the e6isting gold content% and Mr. Roose elt "ndo"!tedly ,as glad to ha e them think so ,itho"t completely F"ashing the hopes of the inflationists of ario"s schools. That hardly corresponds ,ith the promises to .enator 3lass or the LCo enantL speech of Co em!er ?% #&'1. D>HA(-AT85C The second great shift into managed c"rrency ,as the Thomas amendment to the Agric"lt"ral Ad9"stment Act of May #1% #&''% ,hich a"thori=ed the President *a+ to direct the .ecretary of the Treas"ry to enter agreements ,ith the Federal Reser e 0anks for them to cond"ct Lopen market operationsL in p"rchase of go ernment !onds to the additional holding of N'%AAA%AAA%AAA: *!+ to iss"e N'%AAA%AAA%AAA of "nsec"red c"rrency ,hich sho"ld !e legal tender: *c+ to fi6 the ,eight of gold in the dollar at not less than $A per cent or more than /A per cent !elo, present rate: *d+ to fi6 the ,eight of sil er in the dollar: *e+ to determine the ratio of gold and sil er: *f+ to adopt "nlimited coinage of sil er: *g+ to adopt "nlimited iss"ance of sil er certificates: *h+ to set different prices for domestic and foreign sil er. Congress th"s ga e to the President legal a"thority o er money as a!sol"te as that of Ti!eri"s Caesar or 4enry H888% .talin or 4itler. 8t cons"mmated the dreams and promises of e ery American tinkerer ,ith the c"rrency since the fo"ndation of the Rep"!lic. As to the LThomas amendment%L Raymond Moley records for April #@% #&'') That night there ,as sched"led a conference at the ;hite 4o"se for disc"ssion of the coming meetings ,ith MacDonald and the other 0ritish representati es ,ho ,ere on the Atlantic en ro"te .to ;ashington. ;e 9oined the President promptly after dinnerM.ecretary 4"ll% .ecretary ;oodin% .enator Pittman% 4er!ert Feis% James ;ar!"rg% 0"dget Director Do"glas% 0ill 0"llitt% and myself. 0"t ,e ne er did get do,n to the !"siness for ,hich ,eBd gathered !eca"se% as ,e filed into the room% Roose elt handed me the copy of the amendment Thomas had gi en him. . . . At that moment hell !roke loose in the room. Do"glas% ;ar!"rg% and Feis ,ere so horrified that they !egan to scold Mr. Roose elt as tho"gh he ,ere a per erse and partic"larly !ack,ard school!oy. $ The sinister character of this action so m"ch inspired and ,elcomed !y the President has no !etter ill"stration than .enator >lmer ThomasB o,n e6position of the amendment in the .enate on April 1?th% ,hen he said% among other things) Mr. President% it ,ill !e my task to sho, that if the Amendment shall pre ail it has potentialities as follo,s) 8t may transfer from one class to another class in these -nited .tates al"e to the e6tent of almost N1AA%AAA%AAA%AAA. This al"e ,ill !e transferred first from those ,ho o,n the !ank deposits: secondly% this al"e ,ill !e transferred from those ,ho o,n !onds and fi6ed in estments. 8f the Amendment carries and the po,ers are e6ercised in a reasona!le degree% it m"st transfer that N1AA%AAA%AAA%AAA in the hands of persons ,ho no, ha e it% ,ho did not !"y it% ,ho did not earn it% ,ho do not deser e it% ,ho m"st not retain it% !ack to the other side% the de!tor class of the Rep"!lic% the people ,ho o,e the mass de!ts of the nation.

This ,o"ld ha e !een a transfer of the sa ings !y self-denial of the thrifty to the ha e-nots ,ith engeance attached. All of ,hich ,as reminiscent of ;illiam Jennings 0ryanBs LCross of 3oldL speech% ,hich had ,on for him the nomination of the Democratic party for President thirty-se en years !efore% in #@&/. .enator Thomas ,as o! io"sly ignorant of the fact that a large part of the de!ts ,hich he ,ished to transfer from the Lha esL to the Lha e-notsL ,ere o,ed !y go ernments *national% state% and local+ to #AA%-AAA%AAA holders of ins"rance policies% $A%AAA%AAA sa ings!ank depositors% and other small creditors. The latter incl"ded tens of millions of pr"dent persons ,ith ordinary !ank deposits% together ,ith #1%AAA%AAA mem!ers of !"ilding and loan associations. F"rthermore% more than N#A%AAA%AAA%AAA of s"ch de!ts ,ere o,ed to ed"cational% hospital% and other p"!lic-endo,ed instit"tions. Another effect ,as to lessen the de!ts of large corporations% to the !enefit of their stockholders. These de!ts also lay !ehind the sa ings of millions of people. This ,as ro!!ing the LCommon ManL for the pri ileged Lha es.L Moley f"rther records that after the passage of the Thomas amendment (e,is Do"glas% Director of the 0"dget% said% L;ell% this is the end of ;estern ci ili=ation.L The disaster ,as not F"ite that !ad% !"t its reperc"ssions ha e !een !ad eno"gh. A f"rther step in managed c"rrency ,as the Congressional P"!lic Resol"tion Co. #A% of J"ne $% #&''% !y ,hich any of the actions of the President altering the o!ligations of private and p$blic contracts ,ere gi en force of la,% no matter ,hether those contracts ,ere entered into !efore or after the actions of the President. 8t resem!led an e) post facto la,. 8t pro ided for a!rogation of the gold cla"se in all go ernment and pri ate contracts and s"!stit"ted inflated paper money for their discharge. / The President% ha ing a!andoned the gold standard and o!tained the a"thority of the Thomas amendment% ,ent into action. 8n the fall of #&''% farm prices had !een dropping rapidly and "nemployment ,as increasing. .ince .eptem!er the price of ,heat had dropped !y 1$ per cent and "nemployment% according to the American Federation of (a!or fig"res% ,as greater than ,hen Roose elt ,as elected. 5n 5cto!er 11nd the President made an optimistic LfiresideL chat entitled% L;e Are on 5"r ;ay.L 4e anno"nced the de al"ation of the dollar as the remedy% and affirmed his intention to see that this ,as carried o"t. 4is important sentences ,ere) 8t !ecomes increasingly important to de elop and apply the f"rther meas"res . . . to control the gold al"e of o"r o,n dollar. . . . 8 am a"thori=ing the Reconstr"ction Finance Corporation to !"y gold ne,ly mined in the -nited .tates at prices to !e determined from time to time. . . . ;hene er necessary to the end in ie,% ,e shall also !"y or sell gold in the ,orld market. . . . This is a policy and not an e6pedient. 8t is not to !e "sed merely to offset a temporary fall in prices. ;e are th"s contin$ing to move to#ard a managed c$rrency* The a"thority of the RFC to !"y gold can !e F"estioned% !"t ,e ,ill let that pass. ;e may gi e the inside story in .ecretary of the Treas"ry Morgentha"Bs o,n ,ords) 0"t a more !asic program to meet the commodity price sit"ation ,as the attempt to raise the price of gold !y go ernment p"rchase of gold at high prices. This program ,as !ased on the theory of Professor 3eorge ;arren of Cornell that if the price of gold ,ere to increase% commodity prices ,o"ld rise again. . . . . . . 8 had a telephone installed in the Ca!inet room to keep track of the p"rchases. F. D. R. ,as in a grand h"mor. L8 ha e had shackles on my hands for months no,%L he said% Land 8 feel for the first time as tho"gh 8 had thro,n them off.L > ery morning Jesse Jones and 8 ,o"ld meet ,ith 3eorge ;arren in the PresidentBs !edroom to set the price of gold for the day. Franklin Roose elt ,o"ld lie comforta!ly on his old-fashioned three-F"arter mahogany !ed. . . . The act"al price Tof goldU on any gi en day made little difference. +$r o!9ect ,as simply to keep the trend grad"ally "p,ard% hoping that commodity prices ,o"ld follo,. 5ne day% ,hen 8 m"st ha e come in more than "s"ally ,orried a!o"t the state of the ,orld% ,e ,ere planning an increase from #& to 11 cents. Roose elt took one look at me and s"ggested a rise of 1# cents. L8tBs a l"cky n"m!er%L the President said ,ith a la"gh% L!eca"se itBs three times se en.L 8 noted in my diary at the time) L8f any!ody e er kne, ho, ,e really set the gold price thro"gh a com!ination of l"cky n"m!ers% etc.% 8 think they ,o"ld really !e frightened.L . . . 0"t he rather en9oyed the shock his policy ga e to the international !ankers. Montag" Corman of the 0ank of >ngland% ,hom F. D. R. called Lold pink ,hiskers%L ,ailed across the ocean) LThis is the most terri!le thing that has happened. The ,hole ,orld ,ill !e p"t into !ankr"ptcy.L . . . The President and 8 looked at each other% pict"ring foreign !ankers ,ith e ery one of their hairs standing on end ,ith horror. 8 !egan to la"gh. F. D. R. roared.2 This method of de al"ing the c"rrency of the American people !y steadily increasing the !"ying price of gold contin"ed from 5cto!er% #&''% thro"gh Jan"ary% #&'?. The general philosophy seemed to !e that if the n"m!er of inches in the yardstick ,ere lessened then there ,o"ld !e more cloth in the !olt. 8nstead of confidence and sta!ility% it prod"ced ,ide fl"ct"ations and chaos. Concerning the month of Decem!er% James P. ;ar!"rg% one of Mr. Roose eltBs assistants at the time% states) J. Maynard Qeynes% ,ho had earlier prono"nced Roose elt Lmagnificently right%L came o"t ,ith a stinging criticism. Qeynes% "pon ,hom Fisher and ;arren leaned hea ily for s"pport% descri!ed the Lgyrations of the dollarL "nder the 3o ernmentBs manip"lation as Lmore like a gold standard on the !oo=eL than an ideally managed c"rrency. And% horror of horrors for ;arren% he characteri=ed as LfoolishL the idea Lthat there is a mathematical relation !et,een the price of gold and the price of other things.L @ 5n Jan"ary 'A% #&'?% the r"!!er-stamp Congress passed the L3old Reser e ActL already referred to. The ne6t day an >6ec"ti e 5rder fi6ed the gold dollar at #$ $71# grains of gold% nine-tenths fine: that is% a price of N'$ per o"nce of fine gold. The Treas"ry ,as to p"rchase all gold offered at this price% !oth domestic and foreign% and to sell at this price to foreigners only. The LprofitL from the de al"ation !y the increase in paper money al"e of gold in go ernment hands ,as a!o"t N1%AAA%AAA%AAA. 5f this% N#%@AA%AAA%AAA !ecame a f"nd for the sta!ili=ation of foreign e6change% and N1AA%AAA%AAA ,as "sed to retire some o"tstanding Treas"ry c"rrency. Roose elt a!olished gold coins !"t maintained sil er coins.

A passage in .enator 3lassBs a"thori=ed !iography thro,s light on this transaction) 5ne night% on s"mmons% 3lass ,ent to the ;hite 4o"se. The President disclosed he ,as planning to capt"re the gold stocks o,ned !y the Federal Reser e 0anks. 4e e6plained !y !"ying these gold stocks at the then price of N1A.$A an o"nce for gold% and immediately re al"ing the gold at N'$ an o"nce% the Treas"ry ,o"ld ha e a LprofitL of N1%@AA%AAA%AAA: or% as he said% Lnearly N'%AAA%AAA%AAA.L 3lass ,as shocked. For a moment he said nothing% scarce !elie ing his ears% then protested) LThat isnBt a Bprofit%B as yo" call itMit is nothing !"t a !ookkeeping mark-"p. F"rthermore% that gold yo" are proposing to confiscate !elongs to the Federal Reser e 0anks% and the Treas"ry of the -nited .tates has ne er in ested a penny in it. Do" are proposing to appropriate something that does not !elong to the 3o ernment% and something that has ne er !elonged to the 3o ernment.L LThe Treas"ry ,ill pay the Federal Reser e 0oard for the gold at its present market al"e%L ret"rned Roose elt. LAnd confiscate the difference% setting "p a fictitio"s BprofitB on a fictitio"s priceRL . . . Roose elt . . . inF"ired) L;hat do yo" think of itRL L8 think it is ,orse than anything Ali 0a!aBs forty thie es e er perpetrated%L angrily snapped the Hirginian. & As a res"lt of Roose eltBs manip"lations% ,hat the stat"s of gold is to o"r American c"rrency and go ernmental o!ligations is not clear% e en to this day. The so-called gold reser e for the c"rrency consists of gold certificates iss"ed !y the .ecretary of the Treas"ry to the Federal Reser e 0anks. These are not certificates of specific dollars in terms of gold or s"!9ect to demand !y the Reser e 0anks. They cannot sec"re possession of the gold. James ;ar!"rg descri!es all this) 8t is 9"st as if 8 said) LDo" p"t fo"r do=en eggs in my ,areho"se and 8 ,ill gi e yo" a receipt for eggs. Cot fo"r do=en eggs. J"st eggs.L That is not all. -nder the terms of this Lgold certificateL the .ecretary of the Treas"ry% in his sole discretion% determines ,hether the Federal Reser e 0anks may get any gold at all for their certificates. .o it is not e en a receipt for 9"st eggs. 8t is for eggsMmay!e.#A 5n Fe!r"ary #@% #&'$% the ."preme Co"rt "pheld the gold legislation in respect to pri ate contracts !"t declared it "nconstit"tional as to go ernment o!ligations. The Co"rt% ho,e er% o!ser ed that no damages co"ld !e reco ered% on the gro"nd that holders of s"ch o!ligations ,ere not damaged. This ,as an e6traordinary assertion for if the p"rchasing po,er of the citi=ensB money ,ere to !e diminished !y ?A per cent% they certainly had lost something on their holdings of go ernment gold-con erti!le o!ligations. .8(H>R R>A(8S>. 0RDACB. DR>AMMACD M5R> 5n J"ne #$% #&'?% Roose elt sent a long message to Congress asking for a f"rther e6tension of the po,ers to de al"e the gold dollar. 5ne of the incongr"o"s conflicts of intellect"al "nderstanding ,as his e6pressed determination to make the c"rrency incon erti!le into gold% !"t at the same time make it con erti!le into sil er. Congress passed a f"rther act promoting sil er on J"ne #&% #&'?. The act pro ided for enlarging the sil er !ase to 1$ per cent of the al"e of the metallic reser es. The .ecretary of the Treas"ry ,as a"thori=ed to p"rchase sil er "ntil the ratio of gold al"e to sil er al"e in the reser es reached ' to #. .i6 ,eeks !efore this act% May '% #&'?% Roose elt ga e an address at a memorial to ;illiam Jennings 0ryan. 4e did not mention the #/ sil er to # gold ratio ,hich ,as the impassioned demand in 0ryanBs LCross of 3oldL speech. 4o,e er% one of the Ce, Deal o!9ects of gold de al"ation and moneti=ation of sil er ,as apparently to reach for the 0ryan form"la of a -topia that ,o"ld transfer ,ealth from the Lha esL to the Lha e-nots%L increase ,ages% and generally do good. D"ring the thirty-se en years after 0ryan anno"nced the LCross of 3oldL the American people had re9ected this idea !y holding to a con erti!le gold c"rrency. 8n this period ,e had made more progress in the standard of li ing and increased comfort than in the ,hole of the pre io"s h"ndred years. 0"t the administration certainly failed to find sal ation on the rene,ed 0ryan ro"te. At the time of his agitation in #@&/% the price ratio of gold to sil er ,as a!o"t 'A to #. 8nstead of red"cing gold to a ratio of #/ to #% Roose eltBs de al"ation increased the ratio from $A to # to Va ratio of @A to #. 3old ,as N1A./2 per o"nce and foreign sil er a!o"t ?A cents per o"nce prior to these acts% and gold ,as N'$ an o"nce and sil er ?A cents an o"nce after them. 8t certainly did not prod"ce 0ryanBs millenni"m.G 5ne p"rpose of all this h"!!"! a!o"t sil er ,as to satisfy the eighteen sil er senators% ,ho o!tained a higher price for domestic sil er on the specio"s arg"ment that they ,ere increasing employment in sil er mines. As a matter of fact% most domestic sil er then and since has come as a !y-prod"ct% and prod"ction increases or decreases ,itho"t m"ch regard to the price of sil er. The total n"m!er of ,orkmen in predominantly sil er mines that might ha e !een affected ,as less than 1%AAA. The domestic premi"m cost the go ernment more than N#1%AAA%AAA a year% and N/%AAA per man per ann"m ,as a high price for pro iding these 1%AAA 9o!s. Moreo er% some of them ,o"ld ha e kept their 9o!s at the foreign price of sil er. D"ring Roose eltBs first eight years% ,e spent more than N#%AAA%AAA%AAA !"ying foreign sil er and !"rying it at ;est Point. 5ne tragic effect of this policy of "nlimited sil er p"rchases ,as to drain China and 8ndia and Me6ico of sil er and th"s force them to a!andon their sil er standard% to the demorali=ation of their economies. Director of the 0"dget (e,is Do"glas resigned in A"g"st% #&'?% and later ,rote) The 3o ernment% !y its fiscal policies% has deli!erately laid the !ase for another inflation on a scale so gigantic that the !"!!le of the #&1ABs may finally seem small !y comparison. ;e are no, e idently going to ha e !igger and more painf"l inflation "nder 3o ernment sponsorship and ind"ced !y direct 3o ernment action. The Ce, Deal is only the former LCe, >raL dressed "p in different clothes. ;hen the ne6t !"!!le !"rsts% let it not !e forgotten that the responsi!ility lies directly at the door of the present Administration.##

.5M> .-0.>J->CT >C5C5M8C 48.T5RD 5F D>HA(-AT85C The s"!seF"ent economic history of Roose eltBs rep"diation of the Lco enantL has some interest. 4is !elief that prices and ,ages ,o"ld rise ,ith de al"ation ,as% as 8 ha e said% the same ill"sion that !y red"cing the yard to 1#.1 inches from '/ inches% there ,o"ld !e more cloth in the !olt. 8t did not ha e this effect. Dr. Rufus S. Tucker, after examining t e !ata fr"m man# s"urces, concl"des#1 that there ,as no apprecia!le relation !et,een c"rrency de al"ation and reco ery. An inF"iry !y a competent gro"p of economists "nder Dr. >d,in ;. Qemmerer demonstrated that prices and ,ages did not rise apprecia!ly in the -nited .tates from de al"ation. 4o,e er% there ,ere fo"r other immediate conseF"ences of great importance arising from managed c"rrency and de al"ation. .48FT. 8C PR5P>RTD 5;C>R.48P Altho"gh it has not !een in estigated statistically% .enator >lmer Thomas et al* did% 8 !elie e% make some shift from the Lha esL to the Lha e-notsL !y a shift in relati e al"e of prior-lien sec"rity holders *,ho ,ere the de!tors+ o er to the eF"ity holders. 8 ,as a tr"stee of a n"m!er of charita!le tr"sts. 8 ,o"ld not pre io"sly ha e dreamed of appro ing spec"lation !y s"ch instit"tions thro"gh in esting in common stocks. A month after the Thomas amendment and Roose eltBs declaration% 8 felt compelled to ad ise these instit"tions that their only possi!le protection lay in con erting !onds into common stocks. The financial position of those instit"tions ,hich follo,ed this ad ice ,as greatly impro ed. .ince then most charita!le tr"sts ha e steadily con erted their !onds into common stock. The ,hole of these transactions is a commentary "pon confidence in !onds after #&''. R>(AT8H> HA(-> 5F 5-R C-RR>CCD T5 F5R>83C C-RR>CC8>. An"t er effect "f !e$a%uati"n &as t e c ange in t e '"siti"n "f "ur m"ne# re%ati$e t" t at "f f"reign c"untries. T at &as imme!iate, '"siti$e, an! !isastr"us. T e f"reigners c"u%! 'a# t eir !e(ts t" t e )nite! States &it *+ 'er cent %ess g"%! t an (ef"re. Like&ise t e# c"u%! (u# t e same am"unt "f g""!s fr"m t e )nite! States &it *+ 'er cent %ess g"%! t an (ef"re. A%s", t e# c"u%! (u# American securities an! "t er 'r"'ert# f"r *+ 'er cent %ess g"%! t an (ef"re,an! t e# !i!. -"ntrari&ise, American (u#ers "f f"reign g""!s a! t" 'a# m"re g"%! f"r t em t an (ef"re,an! t eref"re ("ug t %ess "f t em. T e imme!iate effect &as a $ast increase in t e m"$ement "f g"%! int" t e )nite! States. 35(D M5H>M>CT T5 T4> -C8T>D .TAT>. Roose elt al,ays seemed to !e in a general fog a!o"t gold mo ements. 8n the campaign of #&'1% he said) De!tor nations% no longer s"stained !y o"r impro ident loans and no longer a!le to e6port goods% ,ere drained of gold for de!ts and% one !y one% ,ere forced to a!andon specie payments.#' This ,as an a!sol"te pre arication% as 8 pointed o"t in a campaign address) The gold of >"rope ,as not drained: it has increased in total e ery year . . . and is right no, N#%$AA%AAA%AAA greater. . . . #? The act"al gold holdings in the -nited .tates ,ere N'%@$?%AAA%AAA on Jan"ary #% #&1&% and N?%11/%AAA%AAA on Jan"ary #% #&''M an increase of only N'21%AAA%AAA. 0"t Roose eltBs de al"ation did ca"se a flood of gold from the ,orld into the -nited .tates. D"ring the first eight years of his administration ,e ,ere flooded ,ith more than N#$%AAA%AAA%AAA of foreign gold% for reasons 8 ha e stated a!o e. 8t represented foreignersB p"rchases of o"r goods or assets at a ?& per cent disco"nt. ;e p"t the gold in the gro"nd at Fort Qno6 ,here it !ro"ght no interest or ret"rnsMand ,e paid interest or di idends on the foreignersB in estment. .-0.8D8S8C3 .P>C-(AT5R. There ,as still another !y-prod"ct of de al"ation. .hre,d American spec"lators either ded"ced from the attit"des of Roose elt and his associates that it ,as coming or had inside information. They !o"ght h"ge amo"nts of foreign c"rrencies !efore de al"ation and sold them after,ards at h"ge profits and little risk. .ome of the men close to Roose eltBs campaign did !ea"tif"lly in this past"re. Hug ." ns"n, "ne "f R""se$e%t/s greatest su''"rters in t e cam'aign "f 0+12 an! a su(se3uent ig "fficia% in t e Ne& Dea%, u%timate%# recante!. On t e !e$a%uati"n, e sai!4 .ome siren had slipped in and sold the Administration the age-old fallacy that if it ,o"ld tinker ,ith the c"rrency L9"st-a-leetle%L it co"ld !lo, al"e !ack into deflated assets% and !y LcontrolledL monetary inflation relie e the !"rden of all de!t. . . . 8t did not ,ork as planned% Lto restore prices to the #&1/ le el.L That fail"re ,as important !"t not fatal. The fatal thing ,as that a pledge had !een dishonored: that the priceless ingredient of the ,hole Ce, Deal form"laM integrity, ,hich makes confidence& had !een ad"lterated.#$ There can ne er !e 9"stification of a de al"ation of c"rrency e6cept in national !ankr"ptcy or national de!t too great for the co"ntry to !ear. Co s"ch sit"ation e6isted in #&''. D>HA(-AT85C 8CCR>A.>D T4> TAR8FF. 8n the #&'1 campaign% the Democrats had made a great iss"e o"t of the disasters they predicted ,o"ld flo, from the modest increases in the .moot-4a,ley Tariff *mostly agric"lt"ral prod"cts+. The fact ,as that /$ per cent of imported goods "nder that tariff ,ere free of d"ty% and that legislation increased the tariffs on the '$ per cent d"tia!le goods !y some,here a!o"t #A per cent. 0"t the greatest tariff !oost in all o"r history came from Roose eltBs de al"ation. The res"lt of de al"ation ,as eF"i alent to increasing the American tariffs !y ?& per cent. And this applied to goods hitherto free of d"ty */$ per cent+ as ,ell as to d"tia!le goods. The ca"se of this ,as that the de al"ation did not raise prices in the -nited .tates% !"t raised the price of foreign c"rrencies to American !"yers. For instance% one D"tch g"ilder co"ld !e !o"ght for ?A cents prior to

de al"ation. A fe, months after,ards% it cost /2 cents. The prices of foreign goods ,ere not sensi!ly affected. Therefore% an American merchant importing foreign goods had to pay a!o"t $A per cent more for them. The effect ,as the same as if a "ni ersal tariff of $A per cent had !een imposed. This increased charge applied also to p"rchases of foreign ser ices s"ch as shipping and ins"rance. The ,hole operation made a mockery of all the Roose elt red"ction-of-tariff promises. On Marc 22, 0+1*, t e 5resi!ent rec"mmen!e! aut "rit# t" c"nsummate Reciprocal Trade agreements. This ,as his s"pposed compliance ,ith campaign promises to red"ce tariffs. The act ,as passed on J"ne #1th% a"thori=ing agreements to red"ce American tariffs "p to $A per cent. Agreements ,ere concl"ded ,ith se eral co"ntries from ,hich it ,as claimed ,e recei ed reciprocal ad antages. The o erriding fact ,as that ha ing effecti ely increased the tariffs !y a!o"t $A per cent thro"gh de al"ation of the dollar% the end res"lt kept the tariffs a!o"t the same as the .moot-4a,ley le el% and the reciprocal tariffs did not affect the ne, ,all of $A per cent aro"nd the /$ per cent of o"r d"ty-free imports. Aside from these indirect increases in tariffs% Roose elt in his ario"s acti ities imposed special tariffs on s"ch e6tensi e imports as cr"de oil% gasoline% l"!ricating oils% coal% coke% l"m!er% copper% and ,hale oil ,hich had pre io"sly !een on the free list. The act"al res"lt of these special increases ,as later sho,n !y the Department of Commerce to ha e lifted the a erage portion of imports s"!9ect to tariff to ?#.? per cent from ''.1 per cent d"ring the 4oo er Administration. This does not take into acco"nt the indirect tariffs thro"gh de al"ation either on d"tia!le or on free imports. ;e can also e6amine from act"al e6perience the effect of the Roose elt policies of de al"ation and s"pposed lo,ering of the tariffs. 8f ,e compare the fo"r years from #&12 thro"gh #&'AMa period prior to depression infl"ences and prior to all the tariff actionM,ith the fo"r years from #&'$ thro"gh #&'@% after all Mr. Roose eltBs and Mr. 4"llBs tariff tinkering% ,e find that !oth o"r imports and o"r e6ports decreased instead of increased. ,)ports -mports .er /apita .er /apita #&12-#&'A . . . . . N'@.1' N'1.A$ #&'$-#&'@ . . . . . 1A.&& #2.&? Th"s the heated promises in the campaign of #&'1 to increase foreign trade !y reciprocal trade and red"ced tariffs ,ere not f"lfilled. 8n fact% Roose eltBs actions greatly destroyed o"r foreign trade. 6t mig t (e a!!e!, Secretar# Hu%%/s great t eme t at is reci'r"ca% tariffs &"u%! 'r"!uce 'eace in t e &"r%! a%s" !i! n"t &"rk. 8ndeed !y this c"rrency tinkering the -nited .tates go ernment rep"diated its pledged ,ord% the Democratic party rep"diated platform pledges% the President of the -nited .tates rep"diated his p"!lic ass"rances. S "u%! Mr. R""se$e%t meet Senat"r Sm""t in t e next &"r%!, is first act s "u%! (e an a'"%"g#.7

Benito .#ssolini (left), t"e ictator of Fascist 2taly, ri es in a motor$oat wit" 3.*. *ecretary of *tate 4enry L. *timson in 2taly in -an#ary &'(&, #rin% t"e mi le of t"e Great De!ression. 4enry L. *timson was a mem$er of *k#ll 5 Bones, a secret society at Yale 3niversity. (P"oto $y New York 6imes +o.1Getty 2ma%es)

3.*. Presi ent 4er$ert 4oover (left) a!!ears wit" 3n er *ecretary of t"e 6reas#ry ,% en L. .ills (center), an *ecretary of *tate 4enry L. *timson on Novem$er <, &'(&. /ll t"ree men were mem$ers of t"e +o#ncil on Forei%n Relations, a !rivate or%aniAation in New York +ity.

Franklin D. Roosevelt (left), t"e Governor of New York, meets wit" C+olonelD > war .. 4o#se in &'(). (6"e Bettmann /rc"ive)

+o#ncil on Forei%n Relations irectors /llen D#lles (far left) an Norman 4. Davis (center) arrives in Berlin, Germany in /!ril &'(( to meet wit" Germany@s new c"ancellor / olf 4itler. /llen D#lles was t"e Director of t"e +entral 2ntelli%ence /%ency from &'?( to &'H&. (*o#rce0 ,entleman py: T"e Life of Allen Dulles $y Peter Grose)

4;almar *c"ac"t, t"e Presi ent of t"e Reic"s$ank (Germany@s central $ank), visits Presi ent Franklin Delano Roosevelt at t"e W"ite 4o#se in Was"in%ton, D.+. on .ay H, &'((. From left to ri%"t0 +olonel -ames /. 3li#, .ilitary /i e to t"e W"ite 4o#seK 4ans L#t"er, /m$assa or from GermanyK 4;almar *c"ac"tK Presi ent RooseveltK an +a!tain Walter 9ernon, W"ite 4o#se Naval /i e. Franklin Delano Roosevelt was a mem0er of the Demo.rati. 7arty- 4;almar *c"ac"t was trie for war crimes at N#rem$er% after Worl War 22. (Bettmann1+,RB2*)

3.*. Presi ent Franklin D. Roosevelt si%ns t"e Gol Bill in Was"in%ton, D.+. on -an#ary (7, &'(B. Witnesses stan in% in t"e rear incl# e 6reas#ry *ecretary 4enry .or%ent"a# -r. (secon from left) an Geor%e L. 4arrison (secon from ri%"t), t"e Presi ent of t"e Fe eral Reserve Bank of New York. Geor%e L. 4arrison was a mem$er of t"e +o#ncil on Forei%n Relations, an internationalist or%aniAation in New York +ity, an a mem$er of *k#ll 5 Bones, a secret society at Yale 3niversity. (M Bettmann1+,RB2*)

Presi ent Franklin D. Roosevelt si%ns "is Bankin% >mer%ency Bill, in t"e W"ite 4o#se in Was"in%ton, D. +. on .arc" ', &'(( w"ile *ecretary of t"e 6reas#ry William 4. Woo in looks on, after t"e meas#re "a $een !asse t"ro#%" t"e 4o#se an *enate at #n!rece ente s!ee , in or er to relieve t"e !resent financial strain. Woo in was a mem$er of t"e +o#ncil on Forei%n Relations. (P"oto0 M Bettmann1+,RB2*)

Left to ri%"t0 -ames 4. Do#%las (/ssistant *ecretary of t"e 6reas#ry), William 4. Woo in (*ecretary of t"e 6reas#ry), an /lvin W. 4all (Director of 3.*. B#rea# of >n%ravin% an Printin%) smile for t"e camera on /!ril &8, &'(( #rin% t"e !ro #ction of t"e new c#rrency, w"en t"ey ins!ecte t"e first o#t!#t of $ills w"ic" "as ke!t t"e $#rea# $#sy for several ays. 6"e $#rea# t#rne o#t S),777,777,777 in c#rrency to s#!!lement t"e $ills in circ#lation !rior to t"e $ank "oli ay. William ;- Woodin was a Class B Dire.tor of the Federal Reserve Bank of New York from /pril !( !"#$ to 8ar.h &( !"&&- (P"oto0 M 6"e Bettmann /rc"ive1+,RB2*)

3.*. Presi ent Franklin Delano Roosevelt si%ne t"e T4ome ,wners Loan /ct of &'((T at t"e W"ite 4o#se on -#ne &(, &'((, w"ic" "e sai was anot"er ste! towar s en in% t"e eflation w"ic" is ra!i ly e!rivin% millions of farm an "ome owners from t"e title an eR#ity of t"eir !ro!erty. Pict#re (L=R) stan in% are0 /.>. 4#tc"isonK Walter NewtonK William F. *tevensonK William F. Br#nnerK -ose!" 6. Ro$insonK +arroll .erriamK 6. Dwi%"t We$$K 4orace R#ssellK an R#ssell 4awkins. (M Bettmann1+,RB2*)

3.*. Presi ent Franklin Delano Roosevelt affiLes "is si%nat#re to t"e Glass=*tea%all $ank reform $ill on -#ne &H, &'((. Be"in t"e Presi ent are (left to ri%"t)0 *en. /llen Barkley, *en. 6"omas Gore, *en. +arter Glass, +om!troller of +#rrency -.F.6. +onnors, *en. William G. .c/ oo (former *ecretary of t"e 6reas#ry), Re!. 4enry *. *tea%all, *enator D#ncan 3. Fletc"er, Re!. /lan Gol s$oro#%", an Re!. Ro$ert L#ce. (M Bettmann1+,RB2*)

Presi ent Franklin D. Roosevelt si%ns t"e 1o.ial 1e.urity Bill in Was"in%ton, D.+. on /#%#st &B, &'(?. From left are0 Re!. Ro$ert Lee Do#%"ton (D=Nort" +arolina), +"airman of t"e 4o#se Ways an .eans +ommitteeK *en. Ro$ert F. Wa%ner ($orn in Germany, D=New York), co=a#t"or of t"e $ill, *ecretary of La$or Frances Perkins, *en. Byron Pat 4arrison (D=.ississi!!i), +"airman of t"e *enate Finance +ommittee, Re!. Davi -. Lewis (D=.arylan ), co=a#t"or of t"e meas#re. (/ssociate Press)

Left to ri%"t0 Reic"s$ank Presi ent an NaAi German >conomics .inister 4;almar *c"ac"t, former 3.*. Presi ent 4er$ert 4oover, an /merican /m$assa or to NaAi Germany 4#%" R. Wilson ress for t"e occasion at a rece!tion "el in Berlin on .arc" <, &'(<. 4er$ert 4oover an 4#%" R. Wilson were mem$ers of t"e +o#ncil on Forei%n Relations. 4#%" R. Wilson was a mem$er of *k#ll 5 Bones at Yale 3niversity. ;er0ert ;oover was a mem0er of the Repu0li.an 7arty- (/#strian /rc"ives1+,RB2*)

Plans to gi e !"siness and ind"stry and important oice in the c"rrent Ce, Deal monopoly in estigation ,ere form"lated at a meeting of the PresidentEs ad isory co"ncil at the Department of Commerce in ;ashington% D.C. on 5cto!er /% #&'@. 8n the pict"re% left to right) ;. A erell 4arriman% Chairman of the ad isory co"ncil and Chairman of the !oard of -nion Pacific Railroad Co.: .ecretary of Commerce Daniel A. Roper: ;illard (. Thorp% Ad isor to the Department of Commerce on >conomic .t"dies and a mem!er of the Monopoly Committee: and Assistant .ecretary of Commerce Richard C. Patterson% also a mem!er of the committee. A erell 4arriman% ;illard (. Thorp% and Richard C. Patterson ,ere mem!ers of the Co"ncil on Foreign Relations: A erell 4arriman ,as a mem!er of .k"ll & 0ones. *Photo) 4arris & >,ing Collection7(i!rary of Congress+ http)77,,,.loc.go 7pict"res7item7hec1AA&A##@?A7RsidW@a&e2f?!'cff?f$!aA#2&/@e/a11&ae$

-... .enator John 3. To,nsend *left% Rep"!lican-Dela,are+% 5,en D. Do"ng of 3eneral >lectric Company *center+% and -... .enator Carter 3lass *right% Democrat-Hirginia+ attend a !ank !ill hearing on May '#% #&'$. 5,en D. Do"ng ,as a mem!er of the Co"ncil on Foreign Relations. *Photo) 4arris & >,ing Collection: (i!rary of Congress+

A photo of .ilas 4. .tra,n *left+% of Chicago: James ;. .pangler *center+% of .eattle: and >liot ;ads,orth% of 0oston: snapped as they attended the ann"al meeting of the 0oard of Directors of the -... Cham!er of Commerce in ;ashington% D.C. on Jan"ary 1@% #&'@. .ilas 4. .tra,n and >liot ;ads,orth ,ere mem!ers of the Co"ncil on Foreign Relations. *Photo) 4arris & >,ing Collection7(i!rary of Congress+

5,en D. Do"ng% Chairman of the !oard of 3eneral >lectric Company% takes an oath !efore testifying !efore Monopoly 8n estigating Committee on May #2% #&'&. 5,en D. Do"ng ,as a mem!er of the Co"ncil on Foreign Relations. *Photo) 4arris & >,ing Collection: (i!rary of Congress+

Appearing !efore the .pecial .enate Committee on "nemployment in ;ashington% D.C. on Jan"ary ?% #&'@% Federal Reser e 0oard Chairman Marriner >ccles declared that payment of the soldiers !on"s in #&'/ helped create price distortion that p"shed reco ery o"t of !alance and led to,ard the c"rrent !"siness recession. *Photo) 4arris & >,ing Collection7(i!rary of Congress+

American Cational De!t d"ring the #&1As% 3reat Depression% and ;orld ;ar 88 J"ly #% #&#& - N12%'&A%&2A%##'.#1 J"ne 'A% #&'' - N11%$'@%/21%$/A.#$ J"ly #% #&1A - N1$%&$1%?$/%?A/.#/ J"ne 'A% #&'? - N12%A$'%#?#%?#?.?@ J"ne 'A% #&1# - N1'%&22%?$A%$$1.$? J"ne 1&% #&'$ - N1@%2AA%@&1%/1?.$' J"ne 'A% #&11 - N11%&/'%'@#%2A@.'# J"ne 'A% #&'/ - N''%22@%$?'%?&'.2' J"ne 'A% #&1' - N11%'?&%2A2%'/$.'/ J"ne 'A% #&'2 - N'/%?1?%/#'%2'1.1& J"ne 'A% #&1? - N1#%1$A%@#1%&@&.?& J"ne 'A% #&'@ - N'2%#/?%2?A%'#$.?$ J"ne 'A% #&1$ - N1A%$#/%#&'%@@2.&A J"ne 'A% #&'& - N?A%?'&%$'1%?##.## J"ne 'A% #&1/ - N#&%/?'%1#/%'#$.#& J"ne 1&% #&?A - N?1%&/2%$'#%A'2./@ J"ne 'A% #&12 - N#@%$##%&A/%&'#.@$ J"ne 'A% #&?# - N?@%&/#%??'%$'$.2# J"ne 'A% #&1@ - N#2%/A?%1&'%1A#.?' J"ne 'A% #&?1 - N21%?11%??$%##/.11 J"ne 1&% #&1& - N#/%&'#%A@@%?@?.#A J"ne 'A% #&?' - N#'/%/&/%A&A%'1&.&A J"ne 'A% #&'A - N#/%#@$%'A&%@'#.?' J"ne 'A% #&?? - N1A#%AA'%'@2%11#.#' J"ne 'A% #&'# - N#/%@A#%1@#%?&#.2# J"ne 'A% #&?$ - N1$@%/@1%#@2%?A&.&' J"ne 'A% #&'1 - N#&%?@2%AA1%???.#' J"ne 1@% #&?/ - N1/&%?11%A&&%#2'.1/ .o"rce) http)77,,,.treas"rydirect.go 7go t7reports7pd7histde!t7histde!tXhisto'.htm
Cotes) >"gene Meyer ,as the Chairman of the Federal Reser e 0oard from .eptem!er #/% #&'A to May #A% #&''. >"gene R. 0lack ,as the Chairman of the Federal Reser e 0oard from May #&% #&'' to A"g"st #$% #&'?. Marriner >ccles ,as the Chairman of the Federal Reser e 0oard from Co em!er #$% #&'? to Jan"ary '#% #&?@.

Directors of t"e +o#ncil on Forei%n Relations #rin% t"e Great De!ression (&')'=&'(')

R#ssell +. Leffin%well

Pa#l War$#r%

,wen D. Yo#n%

,tto 4. :a"n

Norman 4. Davis

-o"n W. Davis

Frank L. Polk

Geor%e W. Wickers"am

/llen W. D#lles

Pa#l D. +ravat"

2saia" Bowman Pa#l D. +ravat" -o"n W. Davis

&')&=&'?7 &')&=&'B7 &')&=&'??

Norman 4. Davis *te!"en P. D#%%an > win F. Gay ,tto 4. :a"n Frank L. Polk W"itney 4. *"e!ar son Pa#l .. War$#r% Geor%e W. Wickers"am /llen W. D#lles R#ssell +. Leffin%well Geor%e ,. .ay Wesley +. .itc"ell ,wen D. Yo#n%

&')&=&'BB &')&=&'?7 &')&=&'B? &')&=&'(B &')&=&'B( &')&=&'HH &')&=&'() &')&=&'(H &')8=&'H' &')8=&'H7 &')8=&'?( &')8=&'(B &')8=&'B7

4amilton Fis" /rmstron% +"arles P. 4owlan Walter Li!!mann +larence .. Woolley Frank /ltsc"#l P"ili! +. -ess#! 4arol W. Do s Leon Fraser -o"n 4. Williams

&')<=&'8) &')'=&'(& &'()=&'(8 &'()=&'(? &'(B=&'8) &'(B=&'B) &'(?=&'B( &'(H=&'B? &'(8=&'HB

Presi ent of -o"ns 4o!kins 3niversity (&'(?=&'B<) Director of /merican Geo%ra!"ic *ociety INew YorkJ (&'&?=&'(?) +"airman of t"e $oar of Westin%"o#se >lectric +or!. (&')8=&')')K +"airman of 6"e >conomic +l#$ of New York (&'(H=&'(<)K 9ice Presi ent of t"e +o#ncil on Forei%n Relations (&')&=&'(() .em$er of Davis, Polk, War well, Gar iner 5 Ree Ilaw firmJ (&')&=&'??) Presi ent of t"e +o#ncil on Forei%n Relations (&')&=&'(() Presi ent of t"e >n%lis"=*!eakin% 3nion of t"e 3.*. (&'(7=&'(<) Presi ent of t"e New York +ity Bar /ssociation (&'(&=&'(() 9ice Presi ent of t"e +o#ncil on Forei%n Relations (&'((=&'(H) Presi ent of t"e +o#ncil on Forei%n Relations (&'(H=&'BB)K +"airman of /merican Re +ross (&'(<=&'BB) Director of 2nstit#te of 2nternational > #cation (&'&'=&'BH) Professor of >conomic 4istory at 4arvar 3niversity (&')B=&'(H) Partner of :#"n, Loe$ 5 +o. I$ankin% firmJ (&<'8=&'(B) .em$er of Davis, Polk, War well, Gar iner 5 Ree Ilaw firmJ (&'&B=&'B() 6reas#rer of t"e +o#ncil on Forei%n Relations (&'((=&'B&) 9ice +"airman of t"e Fe eral Reserve (&'&H=&'&<) .em$er of +a wala er, Wickers"am 5 6aft Ilaw firmJ (&'&B=&'(H) Presi ent of t"e +o#ncil on Forei%n Relations (&'((=&'(H) .em$er of *#llivan 5 +romwell (&')H=&'?&, &'H)=&'H') Partner of -.P. .or%an 5 +o. I$ankin% firmJ (&')(=&'?7) *enior Partner of Price, Water"o#se 5 +o. !#$lic acco#ntants (&'&&=&'H&) Professor of >conomics at +ol#m$ia 3niversity (&'&B=&'&', &'))=&'BB) +"airman of t"e $oar of General >lectric +o. (&'))=&'(', &'B)=&'BB) +lass + Director of t"e Fe eral Reserve Bank of New York (&')H=&'B7) De!#ty +"airman of t"e Fe eral Reserve Bank of New York (&')8=&'(8) +"airman of t"e Fe eral Reserve Bank of New York (&'(<=&'B7) > itor of Foreign Affairs ma%aAine (&')<=&'8)) Professor of Government at Yale 3niversity +ol#mnist for New Yor- .erald Tri+une +"airman of t"e $oar of /merican Ra iator +om!any Partner of LaAar Freres 5 +o. I$ankin% firmJ (&'&H=&'B?) Professor of 2nternational Law at +ol#m$ia 3niversity (&'(B=&'BH) Presi ent of Princeton 3niversity (&'((=&'?8) +"airman an Presi ent of Bank for 2nternational *ettlements (&'((=&'(?) 9ice Presi ent of Fe eral Reserve Bank of New York (&'(H=&'B8) Dean of t"e Gra #ate *c"ool of P#$lic / ministration at 4arvar 3niversity (&'(8=&'B8) Nat"aniel Ro!es Professor of Political >conomy at 4arvar 3niversity (&'((=&'?8)

Coun.il on Forei4n Relations 8em0ers and Their 5..upation durin4 the Wall 1treet 1to.k 8arket Crash in 5.to0er !"#"
Name Bankers: 6"omas W. Lamont R#ssell +. Leffin%well 4arol *tanley Geor%e W"itney 4enry *. .or%an 4enry P. Davison -r. ,tto 4. :a"n FeliL War$#r% Frank /ltsc"#l +"arles > win .itc"ell Wint"ro! W. /l ric" /rtem#s L. Gates -o"n L. *im!son -#les *. Bac"e *am#el R. Bertron Geor%e 4. Walker Geor%e L. 4arrison +larence .. Woolley *am#el W. Rey$#rn Fre erick -. Lisman Businessmen: ,wen D. Yo#n% Gerar *wo!e 6"omas -. Watson >#%ene G. Grace -ames /. Farrell B. > win 4#tc"inson Walter *. Giffor -ames G. 4ar$or -esse 2si or *tra#s -#li#s Rosenwal *ilas 4. *trawn *olomon R. G#%%en"eim Lawyers: -o"n W. Davis Frank L. Polk /llen War well -o"n Foster D#lles >#stace *eli%man /llen W. D#lles *evero .allet=Prevost 4enry W. e Forest 4enry Waters 6aft 4enry e Forest Bal win Fre eric R. +o# ert Rolan L. Re mon Rolan *. .orris Geor%e R#$lee Corporate 8edia: -o"n 4. Finley 4amilton Fis" /rmstron% Geoffrey Parsons Geor%e B. Parker 5r4ani<ations: Raymon B. Fos ick -ames G. .cDonal -ames Brown *cott *te!"en P. D#%%an .em$er (Year) &')&=&'B8 &')&=&'?' &')?=&'?' &')8=&'(' &')<=&'<& &')<=&'B7 &')&=&'(B &')&=&'(8 &')&=&'8( &')B=&'(( &')8=&'8( &')'=&'B7 &')8=&'8) &')&=&'(), &'(B=&'BB &')&=&'(B &')H=&'(7 &')'=&'?( &')H=&'?? &')B=&'() &')B=&'(< &')&=&'B7 &')B=&'?7 &')B=&'?? &')?=&'?< &')'=&'() &')8=&'H7 &')<=&'H? &')8=&'() &')B=&'(H &')8=&'() &')<=&'B? &')<=&'B' &')&=&'?? &')&=&'B( &')&=&'?( &')&=&'?' &')H=&'8H &')8=&'H' &')&=&'B< &')&=&'(< &')&=&'B7 &')<=&'B8 &')&=&'B7 &')B=&'H( &')&=&'(), &'(<=&'B? &')?=&'?& &')&=&'B7 &')&=&'8) &')?=&'?( &')'=&'B7 &')&=&'8& &')&=&'H( &')&=&'B7 &')&=&'?7 Primary ,cc#!ation Partner of -.P. .or%an 5 +o. (&'&&=&'B<) Partner of -.P. .or%an 5 +o. (&')(=&'?7) Partner of -.P. .or%an 5 +o. (&')<=&'(?) Partner of -.P. .or%an 5 +o. (&')7=&'??) Partner of -.P. .or%an 5 +o. (&')<=&'(?) Partner of -.P. .or%an 5 +o. (&')'=&'B7) Partner of :#"n, Loe$ 5 +o. (&<'8=&'(B) Partner of :#"n, Loe$ 5 +o. (&<'H=&'(8) Partner of LaAar Freres 5 +o. (&'&H=&'B?) +"airman of t"e $oar of National +ity Bank of New York (&')'=&'(()K +lass / Director of t"e Fe eral Reserve Bank of New York (&')<=&'(&) Presi ent (&'(7=&'(B) an +"airman (&'(B=&'?() of +"ase National Bank Presi ent of New York 6r#st +o. (&')'=&'B&) >Lec#tive 9ice Presi ent of -. 4enry *c"roe er Bankin% +or!. (&')?=&'?&) 4ea of -.*. Bac"e 5 +o. I$ankin% firm in New York +ityJ (&<')=&'BB) Presi ent of Bertron, Griscom 5 +om!any, 2nc., international financiers INew York +ity, P"ila el!"ia, an ParisJ (&'&)=&'(<) *enior Partner of G.4. Walker 5 +o. (&<''=&'?()K Presi ent of W./. 4arriman 5 +o. Presi ent of t"e Fe eral Reserve Bank of New York (&')<=&'B7) +lass + Director of t"e Fe eral Reserve Bank of New York (&')&=&'(H) +lass B Director of t"e Fe eral Reserve Bank of New York (&')?=&'(() .em$er of New York *tock >Lc"an%e (&<'?=&'(7)K 4ea of F.-. Lisman 5 +o. (&<'?=&'(7) +"airman of t"e $oar of General >lectric +o. (&'))=&'(', &'B)=&'BB) Presi ent of General >lectric +o. (&'))=&'B7, &'B)=&'B?) Presi ent of 2nternational B#siness .ac"ines +or!. (&'&B=&'B') Presi ent of Bet"le"em *teel +or!. (&'&H=&'B?) Presi ent of 3.*. *teel +or!oration (&'&&=&'()) 9ice Presi ent of +"rysler +or!. (&')?=&'?() Presi ent of /merican 6ele!"one an 6ele%ra!" +o. I/656J (&')?=&'B<) Presi ent of Ra io +or!oration of /merica IR+/J (&')(=&'(7) Presi ent of R.4. .acy 5 +o. I.acy@s e!artment storeJ (&'&'=&'(() +"airman of t"e $oar of *ears, Roe$#ck 5 +o. I+"ica%oJ (&')?=&'()) +"airman of t"e $oar of .ont%omery War 5 +o. I+"ica%oJ (c.&'))=&'(&) .em$er of G#%%en"eim Brot"ers Iminin% com!anyJK Director of 3ta" +o!!er +om!any .em$er of Davis, Polk, War well, Gar iner 5 Ree Ilaw firmJ (&')&=&'??) .em$er of Davis, Polk, War well, Gar iner 5 Ree Ilaw firmJ (&'&B=&'B() .em$er of Davis, Polk, War well, Gar iner 5 Ree Ilaw firmJ (&'7'=&'?() .em$er of *#llivan 5 +romwell Ilaw firmJ (&'&&=&'B') .em$er of *#llivan 5 +romwell Ilaw firmJ (&')(=&'8H) .em$er of *#llivan 5 +romwell Ilaw firmJ (&')H=&'?&) .em$er of +#rtis, .allet=Prevost 5 +olt Ilaw firmJ (&<'8=&'B<) .em$er of eForest Brot"ers Ilaw firm in New York +ityJ (&<'(=&'()) .em$er of +a wala er, Wickers"am 5 6aft Ilaw firmJ (&<''=&'B?) .em$er of Lor , Day 5 Lor Ilaw firmJ (&'77=&'B8) .em$er of +o# ert Brot"ers Ilaw firm in New York +ityJ (&<'?=&'??) .em$er of +arter, Le yar 5 .il$#rn Ilaw firm in New York +ityJ (&')?=&'??) .em$er of D#ane, .orris 5 4ecksc"er Ilaw firm in P"ila el!"iaJ (&'7B=&'B?) Professor of 2nternational Law at 3niversity of Pennsylvania (&')B=&'B?) .em$er of +ovin%ton, B#rlin% 5 R#$lee Ilaw firm in Was"in%ton, D.+.J (&')&=c.&'BH) /ssociate > itor of T"e New Yor- Times (&')&=&'(8) > itor of Foreign Affairs ma%aAine (&')<=&'8)) +"ief > itorial Writer for New York 4eral =6ri$#ne (&')B=&'?)) > itor=in=+"ief of *cri!!s=4owar News!a!ers INew York +ityJ (&')8=&'B') 6r#stee of 6"e Rockefeller Fo#n ation (&')&=&'B<) +"airman of t"e $oar of Forei%n Policy /ssociation, 2nc. (&'&'=&'(() *ecretary of +arne%ie >n owment for 2nternational Peace (&'&7=&'B7) Presi ent of 6"e /merican *ociety of 2nternational Law (&')'=&'(') Director of 2nstit#te of 2nternational > #cation (&'&'=&'BH)K 6r#stee of Worl Peace Fo#n ation (&')7=&'B8)K Director of t"e National +ommittee for .ental 4y%iene

-erome D. Greene

&')&=&'?7

+"arles L. *lattery Colle4e /dministrators: /. Lawrence Lowell -ames R. /n%ell 4arry /. Garfiel William /. Neilson >lmer >. Brown 4enry .. Wriston -osia" 4. Penniman +"arles *eymo#r /. Wellin%ton 6aylor >.R./. *eli%man *am#el .c+#ne Lin say Wesley +. .itc"ell +arlton -.4. 4ayes Geor%e Grafton Wilson > win F. Gay +live Day > win W. :emmerer Walter W. .cLaren *am#el N. 4ar!er 2overnment 5ffi.ials: Learne 4an William +lark /n rew W. .ellon ,% en L. .ills F. 6r#$ee Davison Ray Lyman Wil$#r +"arles -. R"oa s -. 4enry *catter%oo +"arles G. Dawes -ose!" +. Grew -o"n W. Garrett Dwi%"t W. .orrow Ro$ert Woo s Bliss 4#%" Gi$son 4er$ert 4. Le"man

&')8=&'(7 &')?=&'B) &')<=&'B< &')&=&'B) &')&=&'BH &')&=&'(B &')H=&'8< &')8=&'(( &')&=&'H& &')&=&'BH &')&=&'(' &')&=&'(' &')B=&'B< &')?=&'?& &')'=&'?7 &')&=&'BH &')&=&'?& &')8=&'B? &')H=&'?B &')'=&'B) &')?=&'BB &')H=&'B7 &'((=&'(H &')B=&'(H &')&=&'() &')'=&'B< &')8=&'?? &')'=&'(( &')<=&'?7 &')<=&'?' &')&=&'B7 &')B=&'(& &')<=&'H& &')&=&'?B &')&=&'H(

6r#stee of t"e Rockefeller Fo#n ation (&'&(=&'&8, &')<=&'(')K 6reas#rer of /merican *ocial 4y%iene /ssociation (&')7=&'())K 6r#stee of t"e General > #cation Boar (&'&)=&'(')K 6r#stee of t"e Brookin%s 2nstit#tion (&')<=&'B?)K +"airman of t"e /merican +o#ncil of t"e 2nstit#te of Pacific Relations (&')'=&'())K .em$er of Lee, 4i%%inson 5 +o. I$ankin% firm in New York +ityJ (&'&<=&'()) Protestant >!isco!al Bis"o! for t"e >!isco!al Diocese of .assac"#setts (&')8=&'(7) Presi ent of 4arvar 3niversity (&'7'=&'(() Presi ent of Yale 3niversity (&')&=&'(H) Presi ent of Williams +olle%e (&'7<=&'(B) Presi ent of *mit" +olle%e (&'&8=&'(') Presi ent of New York 3niversity (&'&&=&'(() Presi ent of Lawrence 3niversity I/!!leton, WisconsinJ (&')?=&'(8) Provost of 3niversity of Pennsylvania (&')(=&'(') Provost of Yale 3niversity (&')8=&'(8) Dean of Gra #ate *c"ool of B#siness / ministration at New York 3niversity (&'&'=&'BB) .c9ickar Professor of Political >conomy an Finance at +ol#m$ia 3niversity (&'7B=&'(&) Professor of *ocial Le%islation at +ol#m$ia 3niversity (&'78=&'(') Professor of >conomics at +ol#m$ia 3niversity (&'&B=&'&', &'))=&'BB) Professor of 4istory at +ol#m$ia 3niversity (&'&'=&'?7) Professor of 2nternational Law at 4arvar 3niversity (&'&7=&'(H) Professor of >conomic 4istory at 4arvar 3niversity (&')B=&'(H) :noL Professor of Political >conomy at Yale 3niversity (&'))=&'(H) Walker Professor of 2nternational Finance at Princeton 3niversity (&')<=&'B() Professor of >conomics at Williams +olle%e (&'&B=&'B?) Professor of R#ssian Lan%#a%e an 2nstit#tions at 3niversity of +"ica%o (&'7H=&'B() -# %e of t"e 3.*. +o#rt of /!!eals for t"e *econ +irc#it INew York +ityJ (&')B=&'?&) -# %e of t"e 3.*. District +o#rt for New -ersey (&')?=&'(<) *ecretary of t"e 6reas#ry (&')&=&'()) 3n er *ecretary of t"e 6reas#ry (&')8=&'()) /ssistant *ecretary of War for /ir (&')H=&'(() *ecretary of t"e 2nterior (&')'=&'(() +ommissioner of 2n ian /ffairs (&')'=&'(() /ssistant +ommissioner of 2n ian /ffairs (&')'=&'(() 3.*. /m$assa or to Great Britain (&')'=&'(&) 3.*. /m$assa or to 6#rkey (&')8=&'()) 3.*. /m$assa or to Fascist 2taly (&')'=&'(() 3.*. /m$assa or to .eLico (&')8=&'(7) 3.*. /m$assa or to /r%entina (&')8=&'(() 3.*. /m$assa or to Bel%i#m (&')8=&'((, &'(8=&'(<) Lie#tenant Governor of New York (&')'=&'())

Coun.il on Forei4n Relations 8em0ers and Their 5..upation durin4 the 2reat Depression !"#"%!"&"'
Name Bankers: 6"omas W. Lamont R#ssell +. Leffin%well *. Parker Gil$ert -r. 4arol *tanley Geor%e W"itney 4enry *. .or%an 4enry P. Davison -r. 6"omas *. Lamont ,tto 4. :a"n FeliL War$#r% Fre erick .. War$#r% >lis"a Walker Frank /ltsc"#l Wint"ro! W. /l ric" 4. Donal +am!$ell +"arles > win .itc"ell -ames 4. Perkins Gor on *. Rentsc"ler F. /$$ot Goo "#e /rtem#s L. Gates >. Rolan 4arriman -o"n L. *im!son -#les *. Bac"e Pierre -ay *am#el R. Bertron Leon Fraser >#%ene .eyer Geor%e L. 4arrison *"e!ar .or%an Fre erick -. Lisman Businessmen: ,wen D. Yo#n% Gerar *wo!e 6"omas -. Watson >#%ene G. Grace .yron +. 6aylor B. > win 4#tc"inson -#li#s Rosenwal Walter *. Giffor /rt"#r W. Pa%e /lfre P. *loan -r. -#an 6erry 6ri!!e /lanson B. 4o#%"ton William B#tterwort" 4enry W. e Forest W. /verell 4arriman Daniel Willar Patrick >. +rowley W"itney 4. *"e!ar son Bear sley R#ml Ral!" 2. *tra#s Bra ley W. Palmer *olomon R. G#%%en"eim -ames D. .ooney /ttorneys: .em$er (Year) &')&=&'B8 &')&=&'?' &')B=&'(< &')?=&'?' &')8=&'(' &')<=&'<& &')<=&'B7 &'(&=&'HH &')&=&'(B &')&=&'(8 &'((=&'87 &')8=&'?7 &')&=&'8( &')8=&'8( &'(H=&'H< &')B=&'(( &')&,&')H=&'B7 &'(7=&'B8 &')?=&'B7 &')'=&'B7 &'((=&'H' &')8=&'8) &')&=&'(), &'(B=&'BB &'(&=&'B7, &'B?=&'B8 &')&=&'(B &')<=&'B? &'(7=&'?< &')'=&'?( &'()=&'H( &')B=&'(< &')&=&'B7 &')B=&'?7 &')B=&'?? &')?=&'?< &')?=&'?< &')8=&'H7 &')8=&'() &')<=&'H? &'()=&'?' &'((=&'H? &'((=&'8H &'(7=&'B7 &')&=&'() &')&=&'(< &')(=&'<H &'(7=&'B7 &'(7=&'(H &')&=&'HH &')8=&'?' &'(B=&'') &'((=&'BH &')<=&'B' &'(&=&'B7, &'BH=&'?H ,cc#!ation #rin% t"e Great De!ression Partner of -.P. .or%an 5 +o. (&'&&=&'B<) Partner of -.P. .or%an 5 +o. (&')(=&'?7) Partner of -.P. .or%an 5 +o. (&'(&=&'(<)K ie on Fe$r#ary )(, &'(< Partner of -.P. .or%an 5 +o. (&')<=&'(?) Partner of -.P. .or%an 5 +o. (&')7=&'??) Partner of -.P. .or%an 5 +o. (&')<=&'(?) Partner of -.P. .or%an 5 +o. (&')'=&'B7) Partner of -.P. .or%an 5 +o. (&')'=&'B7) Partner of :#"n, Loe$ 5 +o. (&<'8=&'(B) Partner of :#"n, Loe$ 5 +o. (&<'H=&'(8) Partner of :#"n, Loe$ 5 +o. (&'(&=&'8() Partner of :#"n, Loe$ 5 +o. (&'((=&'?7) Partner of LaAar Freres 5 +o. (&'&H=&'B?) Presi ent (&'(7=&'(B) an +"airman (&'(B=&'?() of +"ase National Bank Presi ent of +"ase National Bank (&'(B=&'BH) +"airman of t"e $oar of National +ity Bank of New York (&')'=&'(() +"airman of t"e $oar of National +ity Bank of New York (&'((=&'B7) Presi ent of National +ity Bank of New York (&')'=&'B7) Presi ent of Bank of .an"attan (&'(&=&'B<) Presi ent of New York 6r#st +o. (&')'=&'B&) Partner of Brown Brot"ers 4arriman 5 +o. (&'(&=&'8<) >Lec#tive 9ice Presi ent of -. 4enry *c"roe er Bankin% +or!. (&')?=&'?&) 4ea of -.*. Bac"e 5 +o. I$ankin% firm in New York +ityJ (&<')=&'BB) +"airman of t"e $oar of Fi #ciary 6r#st +om!any INew York +ityJ (&'(7=&'B?) Presi ent of Bertron, Griscom 5 +om!any, 2nc., international financiers INew York +ity, P"ila el!"ia, an ParisJ (&'&)=&'(<) +"airman an Presi ent of t"e Bank for 2nternational *ettlements (&'((=&'(?)K 9ice Presi ent of t"e Bank for 2nternational *ettlements (&'(7=&'(() +"airman of t"e Fe eral Reserve (&'(7=&'(()K P#$lis"er of T"e *as"ington /ost (&'((=&'BH) Presi ent of t"e Fe eral Reserve Bank of New York (&')<=&'B7) 9ice Presi ent of +"ase National Bank (&'(7=&'B') .em$er of New York *tock >Lc"an%e (&<'?=&'(7)K 4ea of F.-. Lisman 5 +o. (&<'?=&'(7) +"airman of t"e $oar of General >lectric +o. (&'))=&'(', &'B)=&'BB) Presi ent of General >lectric +o. (&'))=&'B7, &'B)=&'B?) Presi ent of 2nternational B#siness .ac"ines +or!. (&'&B=&'B') Presi ent of Bet"le"em *teel +or!. (&'&H=&'B?) +"airman of t"e $oar of 3nite *tates *teel +or!. (&'()=&'(<) 9ice Presi ent of +"rysler +or!. (&')?=&'?() +"airman of *ears, Roe$#ck 5 +o. (&')?=&'()) Presi ent of /merican 6ele!"one an 6ele%ra!" +o. I/656J (&')?=&'B<) 9ice Presi ent of /merican 6ele!"one an 6ele%ra!" +o. I/656J (&')8=&'B8) Presi ent (&')(=&'(8) an +"airman of t"e $oar (&'(8=&'?H) of General .otors +or!. Presi ent of Pan /merican Worl /irways, 2nc. (&')8=&'HB) +"airman of t"e $oar of +ornin% Glass Works (&'&<=&'B&) +"airman of t"e $oar of Deere 5 +o. (&'(7=&'(H) .em$er of eForest Brot"ers Ilaw firm in New York +ityJ (&<'(=&'())K +"airman of t"e $oar of *o#t"ern Pacific Railway +o. (&')'=&'()) +"airman of t"e $oar of 3nion Pacific Railroa +o. (&'()=&'BH) Presi ent of Baltimore 5 ,"io Railroa +o. (&'&7=&'B&) Presi ent of New York +entral Lines Irailroa J (&')B=&'()) 9ice Presi ent of 2nternational Railways of +entral /merica (&'(&=&'B)) 6reas#rer of R.4. .acy 5 +o. I.acy@s e!artment storeJ (&'(B=&'B?) *ecretary of R.4. .acy 5 +o. I.acy@s e!artment storeJ (&'((=&'B&) +"airman of t"e eLec#tive committee, 3nite Fr#it +om!any IBostonJ .em$er of G#%%en"eim Brot"ers Iminin% com!anyJK Director of 3ta" +o!!er +om!anyK Director of Y#kon Gol +om!any Presi ent of General .otors >L!ort +o. (&')(=c.&'B7) 9ice Presi ent in c"ar%e of overseas o!erations, General .otors +or!. (&')(=c.&'B7) Note0 .ooney met wit" 4itler on .arc" B, &'B7 an wit" Goerin% on .arc" 8, &'B7

-o"n W. Davis Frank L. Polk /llen War well Lansin% P. Ree -o"n Foster D#lles >#stace *eli%man /llen W. D#lles *evero .allet=Prevost 4enry e Forest Bal win /llen 6. :lots 4enry L. *timson 6"omas D. 6"ac"er Geor%e W. Wickers"am 4enry Waters 6aft Fre eric R. +o# ert 6"omas :. Finletter Rolan L. Re mon 6"omas .. De$evoise Bronson Wint"ro! Geor%e R#$lee 5r4ani<ations: Raymon B. Fos ick Norman 4. Davis Geor%e 4. Blakeslee > war +. +arter -ames G. .cDonal -ames Brown *cott *te!"en P. D#%%an -erome D. Greene

&')&=&'?? &')&=&'B( &')&=&'?( &'(7=&'(H &')&=&'?' &')H=&'8H &')8=&'H' &')&=&'B< &')<=&'B8 &'(B=&'HB &')B=&')', &'(B=&'?7 &'(?=&'?7 &')&=&'(H &')&=&'B7 &')&=&'B7 &'(?=&'8' &')B=&'H( &'()=&'?< &'()=&'BB &')?=&'?& &')&=&'8& &')&=&'BB &')B=&'?( &')8=&'?B &')&=&'H( &')&=&'B7 &')&=&'?7 &')&=&'?7

.em$er of Davis, Polk, War well, Gar iner 5 Ree Ilaw firmJ (&')&=&'??) .em$er of Davis, Polk, War well, Gar iner 5 Ree Ilaw firmJ (&'&B=&'B() .em$er of Davis, Polk, War well, Gar iner 5 Ree Ilaw firmJ (&'7'=&'?() .em$er of Davis, Polk, War well, Gar iner 5 Ree Ilaw firmJ (&'&?=&'(8) .em$er of *#llivan 5 +romwell Ilaw firmJ (&'&&=&'B') .em$er of *#llivan 5 +romwell Ilaw firmJ (&')(=&'8H) .em$er of *#llivan 5 +romwell Ilaw firmJ (&')H=&'?&) .em$er of +#rtis, .allet=Prevost 5 +olt Ilaw firmJ (&<'8=&'B<) .em$er of Lor , Day 5 Lor Ilaw firmJ (&'77=&'B8) .em$er of Wint"ro!, *timson, P#tnam 5 Ro$erts Ilaw firmJ (&')&=&'H?) +o#nsel of Wint"ro!, *timson, P#tnam 5 Ro$erts Ilaw firmJ (&<'&=&'7H, &'&(=&')8, &'((= &'B7, &'B?=&'?7)K 3.*. *ecretary of *tate (&')'=&'(() Partner of *im!son, 6"ac"er 5 Bartlett Ilaw firmJ (&'&B=&')?, &'((=&'B()K *olicitor General of t"e 3nite *tates (&'(7=&'(() .em$er of +a wala er, Wickers"am 5 6aft Ilaw firmJ (&'&B=&'(H) .em$er of +a wala er, Wickers"am 5 6aft Ilaw firmJ (&<''=&'B?) .em$er of +o# ert Brot"ers Ilaw firm in New York +ityJ (&<'?=&'??) Partner of +o# ert Brot"ers Ilaw firmJ (&')H=&'B&, &'BB=&'?7, &'?(=&'H&) .em$er of +arter, Le yar 5 .il$#rn Ilaw firm in New York +ityJ (&')?=&'??) Wall *treet lawyerK irector of +"ase National Bank .em$er of Wint"ro!, *timson, P#tnam 5 Ro$erts Ilaw firm in New York +ityJ (F=&'BB) .em$er of +ovin%ton, B#rlin% 5 R#$lee Ilaw firm in Was"in%ton, D.+.J (&')&=c.&'BH) .em$er of Fe eral 6ra e +ommission (&'&?=&'&H)K ,verseer of 4arvar 3niv. (&'(<=&'BB) Presi ent (&'(H=&'B<) an 6r#stee (&')&=&'B<) of 6"e Rockefeller Fo#n ation Presi ent of t"e +o#ncil on Forei%n Relations (&'(H=&'BB) Presi ent of Worl Peace Fo#n ation (&'(7=&'BH) *ecretary General of t"e 2nstit#te of Pacific Relations (&'((=&'BH) +"airman of t"e $oar of Forei%n Policy /ssociation, 2nc. (&'&'=&'(() *ecretary of +arne%ie >n owment for 2nternational Peace (&'&7=&'B7) Presi ent of 6"e /merican *ociety of 2nternational Law (&')'=&'(') Director of 2nstit#te of 2nternational > #cation (&'&'=&'BH)K 6r#stee of Worl Peace Fo#n ation (&')7=&'B8)K Director of t"e National +ommittee for .ental 4y%iene 6r#stee of t"e Rockefeller Fo#n ation (&'&(=&'&8, &')<=&'(')K 6reas#rer of /merican *ocial 4y%iene /ssociation (&')7=&'())K 6r#stee of t"e General > #cation Boar (&'&)=&'(')K 6r#stee of t"e Brookin%s 2nstit#tion (&')<=&'B?)K +"airman of t"e /merican +o#ncil of t"e 2nstit#te of Pacific Relations (&')'=&'())K .em$er of Lee, 4i%%inson 5 +o. I$ankin% firm in New York +ityJ (&'&<=&'()) .em$er of t"e !ermanent central $oar of t"e Lea%#e of Nations (&')'=F) .em$er, *#!ervisory Boar of Lea%#e of Nations (&'((=F) +o#nselor to t"e 4i%" +ommissioner for Ref#%ees from Germany (&'((=&'(?) Director of Worl Peace Fo#n ation (&')8=&'(H) Presi ent of 4arvar 3niversity (&'7'=&'(() Presi ent of 4arvar 3niversity (&'((=&'?() Presi ent of Yale 3niversity (&')&=&'(H) Presi ent of Yale 3niversity (&'(8=&'?7)K Provost of Yale 3niversity (&')8=&'(8) Presi ent of Princeton 3niversity (&'((=&'?8) Presi ent of Brown 3niversity (&'(8=&'??) Presi ent of +ornell 3niversity (&'(8=&'B') Presi ent of -o"ns 4o!kins 3niversity (&'(?=&'B<) Presi ent of *tanfor 3niversity (&'&H=&'B()K *ecretary of t"e 2nterior (&')'=&'(() Presi ent of Dartmo#t" +olle%e (&'&H=&'B?) Presi ent of /m"erst +olle%e (&'()=&'BH) Presi ent of Bow oin +olle%e (&'&<=&'?)) Presi ent of Williams +olle%e (&'7<=&'(B)K 6r#stee of Worl Peace Fo#n ation (&'(7=&'B)) Presi ent of *mit" +olle%e (&'&8=&'(') Presi ent of New York 3niversity (&'&&=&'(() Presi ent of .assac"#setts 2nstit#te of 6ec"nolo%y (&'(7=&'B<) Dean of 4arvar B#siness *c"ool (&'&'=&'B)) Dean of Gra #ate *c"ool of B#siness / ministration at New York 3niversity (&'&'=&'BB) Professor of 4istory at +ol#m$ia 3niversity (&'&'=&'?7) 4amilton Fis" Professor of 2nternational Law an Di!lomacy, +ol#m$ia 3niv. (&')?=&'B?) Professor of *ocial Le%islation at +ol#m$ia 3niversity (&'78=&'(') Professor of >conomics at +ol#m$ia 3niversity (&'&B=&'&', &'))=&'BB) Professor of 2nternational Relations at +ol#m$ia 3niversity (&'(&=&'(H) B#r%ess Professor of P#$lic Law at +ol#m$ia 3niversity (&')'=&'?') Professor of 4istory at +ol#m$ia 3niversity (&')B=&'?&)

4er$ert L. .ay Raymon 6. Ric" Colle4e 7rofessors: /. Lawrence Lowell -ames B. +onant -ames R. /n%ell +"arles *eymo#r 4arol W. Do s 4enry .. Wriston > m#n >. Day 2saia" Bowman Ray Lyman Wil$#r >rnest .. 4o!kins *tanley :in% :ennet" +... *ills 4arry /. Garfiel William /. Neilson >lmer >. Brown :arl 6. +om!ton Wallace Brett Don"am /. Wellin%ton 6aylor +arlton -.4. 4ayes +"arles +"eney 4y e *am#el .c+#ne Lin say Wesley +. .itc"ell Parker 6. .oon Lin say Ro%ers Ro$ert L. *c"#yler

&'(7=&'(B &'(&=&'?( &')?=&'B) &'(B=&'8H &')<=&'B< &')&=&'H& &'(B=&'H< &')H=&'8< &'()=&'BB &')&=&'?7 &')'=&'B< &'(7=&'?( &'(B=&'?7 &'(<=&'?( &')&=&'B) &')&=&'BH &')&=&'(B &'(H=&'?( &'((=&'?B &')&=&'BH &')?=&'?& &')H=&'?& &')&=&'(' &')B=&'B< &')?=&'(H &')8=&'87 &')<=&'B'

>.R./. *eli%man Leo Wolman FeliL Frankf#rter > win F. Gay +larence 4. 4arin% Geor%e Grafton Wilson 6yler Dennett > win W. :emmerer +live Day Walter W. .cLaren *am#el N. 4ar!er -esse *. Reeves 4e$er R. 4ar!er Corporate 8edia: /rt"#r 4ays *#lA$er%er -o"n 4. Finley 4enry R. L#ce William *. Paley Geoffrey Parsons Geor%e B. Parker Davi Lawrence +ass +anfiel 4amilton Fis" /rmstron% 2overnment 5ffi.ials: +"arles >vans 4#%"es Learne 4an William +lark /n rew W. .ellon ,% en L. .ills F. 6r#$ee Davison Ro$ert :. *tra#s +"arles -. R"oa s -. 4enry *catter%oo +"arles G. Dawes -esse 2si or *tra#s William +. B#llitt W. +ameron For$es -ose!" +. Grew -o"n W. Garrett William P"illi!s -o"n 9an /. .ac.#rray Nic"olas Roosevelt Dwi%"t W. .orrow Ro$ert Woo s Bliss 4#%" Gi$son 4er$ert 4. Le"man

&')&=&'(' &'(B=&'?< &'()=&'HB &')&=&'BH &'(&=&'?B &')'=&'?7 &')'=&'B' &')8=&'B? &')&=&'?& &')H=&'?B &')'=&'B) &'(&=&'B7 &'()=&'B7 &')8=&'H< &')&=&'B7 &'(B=&'HH &'(H=&'<' &')?=&'?( &')'=&'B7 &'(&=&'87 &')(=&'<? &')&=&'8) &'(7=&'BH &')?=&'BB &')H=&'B7 &'((=&'(H &')B=&'(H &')&=&'() &'((=&'') &')8=&'?? &')'=&'(( &')<=&'?7 &')B=&'(H &'(H=&'?B &'(7=&'?' &')<=&'?' &')&=&'B7 &'(&=&'H8 &'(&=&'?' &')B=&'H8 &')B=&'(& &')<=&'H& &')&=&'?B &')&=&'H(

.c9ickar Professor of Political >conomy an Finance at +ol#m$ia 3niversity (&'7B=&'(&) Professor of >conomics at +ol#m$ia 3niversity (&'(&=&'?<) Byrne Professor of / ministrative Law at 4arvar 3niversity (&'&B=&'&8, &')7=&'(') Professor of >conomic 4istory at 4arvar 3niversity (&')B=&'(H) Professor of Latin /merican 4istory an >conomics at 4arvar 3niversity (&')(=&'?() Professor of 2nternational Law at 4arvar 3niversity (&'&7=&'(H) Professor of 2nternational Relations at Princeton 3niversity (&'(&=&'(B) Presi ent of Williams +olle%e (&'(B=&'(8) Walker Professor of 2nternational Finance at Princeton 3niversity (&')<=&'B() :noL Professor of Political >conomy at Yale 3niversity (&'))=&'(H) Professor of >conomics at Williams +olle%e (&'&B=&'B?) Professor of R#ssian Lan%#a%e an 2nstit#tions at 3niversity of +"ica%o (&'7H=&'B() W.W. +ook Professor of /merican 2nstit#tions at 3niversity of .ic"i%an (&'(&=&'B)) Professor of > #cation at 6eac"ers +olle%e, +ol#m$ia 3niversity (&'(&=&'(H) Re%ional irector, *ocial *ec#rity Boar (&'(H=&'B<) P#$lis"er of T"e New Yor- Times (&'(?=&'H&) /ssociate > itor (&')&=&'(8) an > itor=in=+"ief (&'(8=&'(<) of t"e New Yor- Times > itor=in=+"ief of Time ma%aAine (&')(=&'HB) Presi ent of +ol#m$ia Broa castin% *ystem I+B*J (&')<=&'BH) +"ief > itorial Writer for New York 4eral =6ri$#ne (&')B=&'?)) > itor=in=+"ief of *cri!!s=4owar News!a!ers INew York +ityJ (&')8=&'B') Presi ent an > itor of 3nite *tates News Inews!a!er in Was"in%ton, D.+.J (&'((=&'B<) Presi ent of 4ar!er 5 Brot"ers Ilater 4ar!er 5 RowJ (&'(&=&'B?) > itor of Foreign Affairs ma%aAine (&')<=&'8)) +"ief -#stice of t"e 3.*. *#!reme +o#rt (&'(7=&'B&) -# %e of t"e 3.*. +o#rt of /!!eals for t"e *econ +irc#it INew York +ityJ (&')B=&'?&) -# %e of t"e 3.*. +o#rt of /!!eals for t"e (r +irc#it IP"ila el!"iaJ (&'(<=&'B()K -# %e of t"e 3.*. District +o#rt for New -ersey (&')?=&'(<) *ecretary of t"e 6reas#ry (&')&=&'())K 3.*. /m$assa or to Great Britain (&'()=&'(() *ecretary of t"e 6reas#ry (&'()=&'(()K 3n er *ecretary of t"e 6reas#ry (&')8=&'()) /ssistant *ecretary of War for /ir (&')H=&'(() De!#ty / ministrator of National Recovery / ministration (&'((=&'(?) +ommissioner of 2n ian /ffairs (&')'=&'(() /ssistant +ommissioner of 2n ian /ffairs (&')'=&'(() 3.*. /m$assa or to Great Britain (&')'=&'(&) 3.*. /m$assa or to France (&'((=&'(H)K Presi ent of R.4. .acy 5 +o. I.acy@s e!artment storeJ (&'&'=&'(() 3.*. /m$assa or to France (&'(H=&'B7)K 3.*. /m$assa or to t"e *oviet 3nion (&'((=&'(H) 3.*. /m$assa or to 2m!erial -a!an (&'(7=&'()) 3.*. /m$assa or to 6#rkey (&')8=&'())K 3.*. /m$assa or to 2m!erial -a!an (&'()=&'B&) 3.*. /m$assa or to Fascist 2taly (&')'=&'(() 3.*. /m$assa or to Fascist 2taly (&'(H=&'B&) 3.*. /m$assa or to 6#rkey (&'(H=&'B&)K 3.*. .inister to Lit"#ania (&'((=&'(H) 3.*. .inister to 4#n%ary (&'(7=&'(() 3.*. /m$assa or to .eLico (&')8=&'(7) 3.*. /m$assa or to /r%entina (&')8=&'(() 3.*. /m$assa or to BraAil (&'((=&'(H)K 3.*. /m$assa or to Bel%i#m (&')8=&'((, &'(8=(<) Lie#tenant Governor of New York (&')'=&'())K Governor of New York (&'((=&'B))

Prominent .em$ers of t"e +o#ncil on Forei%n Relations #rin% t"e Great De!ression (&')'=&'(') Bankers an B#sinessmen0

4enry *. .or%an Partner of -.P. .or%an 5 +o. (&')<=&'(?)K -.P. .or%an@s %ran son

4arol *tanley Partner of -.P. .or%an 5 +o. (&')<=&'(?)

6"omas W. Lamont Partner of -.P. .or%an 5 +o. (&'&&=&'B<)

R#ssell +. Leffin%well Partner of -.P. .or%an 5 +o. (&')(=&'?7)

Geor%e W"itney Partner of -.P. .or%an 5 +o. (&')7=&'??)

+"arles >. .itc"ell +"airman of t"e $oar of National +ity Bank of New York (&')'=&'(()

Wint"ro! W. /l ric" Presi ent (&'(7=&'(B) an +"airman (&'(B= &'?() of +"ase National Bank

Frank /ltsc"#l Partner of LaAar Freres 5 +o. (&'&H=&'B?)

FeliL War$#r% Partner of :#"n, Loe$ 5 +o. (&<'H=&'(8)

,tto 4. :a"n Partner of :#"n, Loe$ 5 +o. (&<'8=&'(B)

-ames 4. Perkins +"airman of t"e $oar of National +ity Bank of New York (&'((=&'B7)

W. /verell 4arriman Partner of Brown Brot"ers 4arriman 5 +o. (&'(&=&'BH)

>#%ene .eyer +"airman of t"e Fe eral Reserve (&'(7=&'(()K P#$lis"er of T"e *as"ington /ost (&'((=&'BH)

Geor%e L. 4arrison Presi ent of t"e Fe eral Reserve Bank of New York (&')<=&'B7)

Pierre -ay +"airman of t"e $oar of Fi #ciary 6r#st +om!any INY+J (&'(7=&'B?)

Gerar *wo!e Presi ent of General >lectric +o. (&'))=&'B7, &'B)=&'B?)

6"omas -. Watson *r. Presi ent of 2nternational B#siness .ac"ines +or!. (&'&B=&'B')

/lfre P. *loan -r. Presi ent (&')(=&'(8) an +"airman of t"e $oar (&'(8=&'?H) of General .otors +or!.

>#%ene G. Grace Presi ent of Bet"le"em *teel +or!. (&'&H=&'B?)

.yron +. 6aylor +"airman of t"e $oar of 3nite *tates *teel +or!oration (&'()=&'(<)

B#sinessmen an Lawyers0

Walter *. Giffor Presi ent of /merican 6ele!"one an 6ele%ra!" +o. I/656J (&')?=&'B<)

*ilas 4. *trawn +"airman of t"e $oar of .ont%omery War 5 +o. (c.&'))=&'(&)

-#li#s Rosenwal +"airman of *ears, Roe$#ck 5 +o. (&')?=&'())

-esse 2si or *tra#s Presi ent of R.4. .acy 5 +o. I.acy@s e!artment storeJ (&'&'=&'(()

Bear sley R#ml 6reas#rer of R.4. .acy 5 +o. I.acy@s e!artment storeJ (&'(B=&'B?)

William B#tterwort" +"airman of t"e $oar of Deere 5 +o. (&'(7=&'(H)

/lanson B. 4o#%"ton +"airman of t"e $oar of +ornin% Glass Works (&'&<=&'B&)K 3.*. /m$assa or to Germany (&'))=&')?)

-#les *. Bac"e 4ea of -.*. Bac"e 5 +o. I$ankin% firm in New York +ityJ (&<')=&'BB)

Daniel Willar Presi ent of Baltimore 5 ,"io Railroa +o. (&'&7=&'B&)

*am#el R. Bertron Presi ent of Bertron, Griscom 5 +om!any, 2nc., international financiers (&'&)=&'(<)

-o"n W. Davis .em$er of Davis, Polk 5 War well (&')&=&'??)

Frank L. Polk .em$er of Davis, Polk, War well (&'&B=&'B()

/llen War well .em$er of Davis, Polk 5 War well (&'7'=&'?()

Geor%e W. Wickers"am .em$er of +a wala er, Wickers"am 5 6aft (&'&B=&'(H)

4enry Waters 6aft Partner of +a wala er, Wickers"am 5 6aft (&<''=&'B?)

-o"n Foster D#lles .em$er of *#llivan 5 +romwell (&'&&=&'B')

/llen W. D#lles .em$er of *#llivan 5 +romwell (&')H=&'?&, &'H)=&'H')

*evero .allet=Prevost .em$er of +#rtis, .allet= Prevost 5 +olt (&<'8=&'B<)

6"omas D. 6"ac"er Partner of *im!son, 6"ac"er 5 Bartlett Ilaw firmJ (&'&B=&')?, &'((= &'B()K *olicitor General of t"e 3.*. (&'(7=&'(()

/llen 6. :lots .em$er of Wint"ro!, *timson, P#tnam 5 Ro$erts (&')&=&'H?)

Government ,fficials0

/n rew W. .ellon *ecretary of t"e 6reas#ry (&')&=&'())

,% en L. .ills *ecretary of t"e 6reas#ry (&'()=&'(()K 3n er *ecretary of t"e 6reas#ry (&')8=&'())

+"arles G. Dawes 3.*. /m$assa or to Great Britain (&')'=&'(&)

4#%" Gi$son 3.*. /m$assa or to Bel%i#m (&')8=&'((, &'(8=&'(<)

+"arles >vans 4#%"es +"ief -#stice of t"e 3.*. *#!reme +o#rt (&'(7=&'B&)

Ro$ert Woo s Bliss 3.*. /m$assa or to /r%entina (&')8=&'(()

Dwi%"t W. .orrow 3.*. /m$assa or to .eLico (&')8=&'(7)

W. +ameron For$es 3.*. /m$assa or to 2m!erial -a!an (&'(7= &'())

-ose!" +. Grew 3.*. /m$assa or to 2m!erial -a!an (&'()=&'B&)

-o"n W. Garrett 3.*. /m$assa or to Fascist 2taly (&')'=&'(()

+olle%e Presi ents an Professors0

/. Lawrence Lowell Presi ent of 4arvar 3niversity (&'7'=&'(()

-ames R. /n%ell Presi ent of Yale 3niversity (&')&=&'(H)

Ray Lyman Wil$#r Presi ent of *tanfor 3niversity (&'&H=&'B()K *ecretary of t"e 2nterior (&')'=&'(()

4arry /. Garfiel Presi ent of Williams +olle%e (&'7<=&'(B)

>lmer >. Brown Presi ent of New York 3niversity (&'&&=&'(()

>rnest .. 4o!kins Presi ent of Dartmo#t" +olle%e (&'&H=&'B?)

+"arles *eymo#r Provost of Yale 3niversity (&')8=&'(8)

Wallace Brett Don"am Dean of 4arvar B#siness *c"ool (&'&'=&'B))

> win R./. *eli%man .c9ickar Professor of Political >conomy an Finance at +ol#m$ia 3niversity (&'7B=&'(&)

Wesley +. .itc"ell Professor of >conomics at +ol#m$ia 3niversity (&'&B=&'&', &'))=&'BB)

,r%aniAation >Lec#tives an -o#rnalists0

*te!"en P. D#%%an Director of 2nstit#te of 2nternational > #cation (&'&'=&'BH)

-erome D. Greene 6r#stee of t"e Rockefeller Fo#n ation (&'&(=&'&8, &')<=&'(')

-ames Brown *cott *ecretary of +arne%ie >n owment for 2nternational Peace (&'&7=&'B7)

Raymon B. Fos ick Presi ent (&'(H=&'B<) an 6r#stee (&')&=&'B<) of 6"e Rockefeller Fo#n ation

W"itney 4. *"e!ar son Director of t"e +o#ncil on Forei%n Relations (&')&=&'HH)

/rt"#r 4ays *#lA$er%er P#$lis"er of T"e New Yor- Times (&'(?=&'H&)

-o"n 4. Finley /ssociate > itor (&')&= &'(8) an > itor=in=+"ief (&'(8=&'(<) of t"e New Yor- Times

4enry R. L#ce > itor=in=+"ief of 6ime, 2nc. (&')(=&'HB)

F. 6r#$ee Davison /ssistant *ecretary of War for /ir (&')H=&'(()

4er$ert 4. Le"man Lie#tenant Governor of New York (&')'=&'())K Governor of New York (&'((=&'B))

Paris Peace +onference, 2nternationalism, 5 (P"ony) Disarmament

> war .. 4o#se (stan in%, far left) a!!ears wit" mem$ers of t"e +ommission on Lea%#e of Nations in /!ril &'&'. Prime .inister of 2taly 9ittorio ,rlan o is seate t"ir from ri%"tK 3.*. Presi ent Woo row Wilson is stan in% at center. -a!anese /m$assa or to Great Britain *#temi +"in a an -a!anese i!lomat No$#aki .akino are seate , res!ectively, on t"e far left. Ro$ert +ecil, a .em$er of t"e Britis" Parliament an a mem$er of t"e .ilner Gro#!, is seate fo#rt" from left. +"inese i!lomat Dr. 9.:. Wellin%ton :oo is stan in%, fo#rt" from ri%"t. (P"oto0 .an#scri!ts 5 /rc"ives, Yale 3niversity) No$#aki .akino@s a#%"ter was marrie to *"i%er# Yos"i a, t"e !ostwar Prime .inister of -a!anK No$#aki .akino@s %reat= %ran son is 6aro /so, t"e former Prime .inister of -a!an.

.em$ers of t"e 2nR#iry a!!ear to%et"er at t"e Paris Peace +onference in &'&'. *eate , from left to ri%"t0 +"arles 4omer 4askins, 2saia" Bowman, *i ney .eAes, -ames Brown *cott, an Davi 4#nter .iller. *tan in%, from left to ri%"t0 +"arles *eymo#r, Ro$ert 4. Lor , W. L. Westermann, .ark -efferson, > war .. 4o#se, Geor%e Lo#is Beer, Do#%las W. -o"nson, +live Day, W. >. L#nt, -ames 6. *"otwell, an /llyn /. Yo#n%. >veryone in t"at !"oto eLce!t for Westermann, -efferson, Beer, an L#nt were mem$ers of t"e +o#ncil on Forei%n Relations. > war .. 4o#se was t"e fo#n er of t"e +o#ncil on Forei%n Relations, an internationalist or%aniAation locate in New York +ity. (P"oto0 .an#scri!ts 5 /rc"ives, Yale 3niversity) Prominent mem$ers of t"e +o#ncil on Forei%n Relations w"o serve as /merican am$assa ors to Great Britain $efore an after Worl War 220

-o"n W. Davis, Frank B. :ello%%, /lanson B. 4o#%"ton, +"arles G. Dawes, /n rew W. .ellon

W. /verell 4arriman, Lewis W. Do#%las, Walter *. Giffor , Wint"ro! W. /l ric", -o"n 4ay W"itney, Davi :.>. Br#ce

From left to ri%"t0 Prime .inister of Great Britain Davi Lloy Geor%e, Prime .inister of 2taly 9ittorio ,rlan o, Prime .inister of France Geor%es +lemencea#, an Presi ent of t"e 3nite *tates of /merica Woo row Wilson meet at t"e Paris Peace +onference in 9ersailles, France, near Paris, in &'&'.

(eag"e of Cations Assem!ly in #&'1. The -nited Cations s"cceeded the (eag"e of Cations in #&?$.

(eag"e of Cations 4eadF"arters in 3ene a% .,it=erland

>"ropean en oys ascend the steps to the -... .tate% ;ar% and Ca y !"ilding in ;ashington% D.C. in #&1# to !egin the ;ashington Ca al Conference designed to set limits on na al fleets. *Photo) Cational Archi es+

0ritish% French% and 3erman diplomats meet at (ocarno% .,it=erland in #&1$ to impro e diplomatic relationships !et,een the three nations. *Photo) 0ildarchi Pre"ssischer Q"lt"r!esit=+

6"e first official !"oto%ra!" of t"e +onference on Limitation of /rmaments on Novem$er )), &')&, at t"e o!enin% of t"e t"ir Plenary session in t"e 4ea R#arters of t"e B./.R. is s"own. *eate at t"e "ea of t"e ta$le are left to ri%"t Premier /risti e Brian , of FranceK *enator ,scar 3n erwoo K 4on. >li"# Root, an *enator 4enry +a$ot Lo %e, t"e /merican Dele%ationK *ecretary of *tate +"arles >vans 4#%"es, t"e +"airmanK 4on. /rt"#r -ames Balfo#r, Lor Lee of Fare"am an *ir /#cklan Ge es, (Britis" /m$assa or at Was"in%ton). /l$ert *arra#t, an Rene 9iviani, Frenc" ele%ation. *eate on t"e ri%"t si e left to ri%"t are *enator /l$ertini, /m$assa or Rolan o Rioot, an *enator +arlo *c"anAer, of 2talyK *rinavasa *astri, of 2n iaK *ir -o"n *al"on , of New Uealan K *enator Geor%e Pearce, of /#straliaK an *ir Ro$ert Bor en of +ana a. *eate at t"e ta$les in t"e fore%ro#n , (facin% 4#%"es), are left. >li"# Root an +"arles >vans 4#%"es were mem$ers of t"e +o#ncil on Forei%n Relations. (3n erwoo 5 3n erwoo 1+,RB2*)

W"ile 3.*. *ecretary of *tate 4enry *timson looks on, -a!anese /m$assa or :ats#;i De$#c"i si%ns t"e :ello%%=Brian Pact an "o#r !rior to t"e ratification ceremony on -#ly )B, &')'. (+,RB2*)

Frank B. :ello%% (center), 3nite *tates *ecretary of *tate, si%ns t"e :ello%%=Brian Pact in t"e +lock *alon in Paris, France on /#%#st )8, &')<. (M 3n erwoo 5 3n erwoo 1+or$is)

3.*. Presi ent +alvin +ooli %e (seate , t"ir from ri%"t) an 3.*. *ecretary of t"e 6reas#ry /n rew .ellon (seate , ri%"t) look on as 3.*. *ecretary of *tate Frank B. :ello%% (seate , secon from ri%"t) affiLes "is si%nat#re on t"e :ello%%=Brian Pact (also known as t"e Pact of Paris), in t"e >ast Room of t"e W"ite 4o#se in Was"in%ton, D.+., 3.*./. on -an#ary &8, &')'. 6"e treaty, w"ic" calle for t"e reno#ncement of war, was rawn #! $y :ello%% an Frenc" Forei%n .inister /risti e Brian . (M 4#lton=De#tsc" +ollection1+,RB2*)

FeliL War$#r% (left), 9era WeiAmann, Frie a *c"iff War$#r%, an +"aim WeiAmann a!!ear at a Boston conference for t"e 3nite Palestine /!!eal in &')<. FeliL War$#r%, alon% wit" "is $rot"er Pa#l War$#r%, was a mem$er of t"e +o#ncil on Forei%n Relations an a !artner of :#"n, Loe$ 5 +o., a $ankin% firm in New York +ity. (*o#rce0 T"e *ar+urgs $y Ron +"ernow)

Lor /rt"#r Balfo#r (center) stan s wit" Fiel .ars"al Lor > m#n /llen$y (left) an 4i%" +ommissioner of Palestine *ir 4er$ert *am#el (ri%"t) #rin% "is visit to -er#salem for t"e o!enin% of t"e 4e$rew 3niversity in /!ril &')?.

FeliL War$#r% an "is $rot"er .aL War$#r% visit -er#salem on /!ril )<, &')'. From ri%"t to left0 FeliL War$#r% of :#"n, Loe$ 5 +o. in New York +ity an +"airman of t"e -oint Distri$#tion +ommitteeK .aL War$#r% of t"e .... War$#r% $ank in 4am$#r%, GermanyK Dr. +yr#s / ler, mem$er of t"e >Lec#tive +ommittee of t"e -oint Distri$#tion +ommitteeK Rev. 4. Pereira .en esK .orris >n%elman, .em$er of t"e >Lec#tive +ommittee of t"e -D+. .aL War$#r% was a irector of 2.G. Far$en.

6"e War$#r% $rot"ers !ose for a %ro#! !"oto on /#%#st )&, &')'. From left to ri%"t0 Pa#l War$#r%, FeliL War$#r%, .aL War$#r%, FritA War$#r%, an /$y War$#r%. Pa#l War$#r% was t"e 9ice +"airman of t"e Fe eral Reserve #rin% WW2K .aL War$#r% was Germany@s re!resentative at t"e Paris Peace +onference in 9ersailles, France in &'&'. (P"oto0 T"e *ar+urgs $y Ron +"ernow)

.em$ers of t"e Re!arations +ommission a!!ear to%et"er at t"e Paris Peace +onference in &'&'. *eate from left to ri%"t0 4er$ert 4oover, Gen. 6asker Bliss, W. *. Benson, Bernar Bar#c", an 4enry .. Ro$inson. *tan in% from left to ri%"t0 6"omas W. Lamont ( 7artner of ,-78or4an 9 Co-), W"itney 4. *"e!ar son, Norman 4. Davis, > war .. 4o#se, Gor on /#c"incloss, an 9ance .c+ormick. >veryone in t"is !"oto eLce!t for Bernar Bar#c" an W. *. Benson were mem$ers of t"e +o#ncil on Forei%n Relations. 6"e Re!arations +ommission im!ose "ars" re!arations on Germany w"ic" wo#l lea to t"e *econ Worl War.

Brown Brot"ers 4arriman 5 +o. !artners (from left to ri%"t) >. Rolan 4arriman, Prescott B#s", :ni%"t Woolley, an Ro$ert Lovett meet !rivately at t"e Brown Brot"ers 4arriman office on -#ly )<, &'HB. Bot" Prescott B#s" an >. Rolan 4arriman serve as irectors of 3nion Bankin% +or!oration !rior to Worl War 22K t"e 3nion Bankin% +or!oration maintaine NaAi German financier FritA 6"yssen@s Cnest e%%D of S(,777,777 in &'B&. (P"oto0 /artners in 0an-ing: A .istorical /ortrait of A ,reat /ri1ate 0an- 0rown 0rot"ers .arriman 2 !o.# $3$3'$%&3 $y -o"n /. :o#wen"oven)

Governor of New York an Democratic Party !resi ential can i ate Franklin D. Roosevelt (left) meets wit" C+olonelD > war .. 4o#se in &'(). C+olonelD > war .. 4o#se was a mem$er of t"e +o#ncil on Forei%n Relations. (6"e Bettmann /rc"ive)

3.*. 3n ersecretary of *tate an Presi ent Franklin RooseveltQs s!ecial envoy to >#ro!e, *#mner Welles (left), wit" 3.*. /m$assa or to Great Britain, -ose!" P. :enne y (ri%"t), say %oo $ye to First Lor of t"e / miralty, Winston +"#rc"ill, after !ayin% "im a visit in Lon on on .arc" )8, &'B7. Winston +"#rc"ill was t"e Prime .inister of Great Britain from .ay &7, &'B7 to -#ly )H, &'B? an from ,cto$er )H, &'?& to /!ril 8, &'??. (P"oto0 Ran y Faris1+,RB2*)

Government officials from >n%lan , t"e 3nite *tates of /merica, an France meet in Paris on -#ly &H, &'(& for t"e /n%lo=Franco /merican +onference. Left to ri%"t0 /n re Francois Poncet, Walter > %e, 3.*. *ecretary of *tate 4enry L. *timson, Forei%n .inister of France /risti e Brian , /rt"#r 4en erson, Pierre Laval, Pierre=>tienne Flan in, an William 6yrrell. /risti e Brian was a Frenc" statesman w"o serve as t"e Prime .inister of France (&'7'=&'&&, &'&(, &'&?=&'&8, &')&=&')), &')?=&')H, &')') an Forei%n .inister of France (&'&?=&'&8, &')&= &')), &')?=&')H, &')H=&'()). (P"oto0 4#lton=De#tsc" +ollection1+,RB2*)

Britis" Forei%n *ecretary *ir -o"n *imon (left) s!eaks wit" *ecretary of *tate 4enry L. *timson in Geneva, *witAerlan in &'(). (P"oto0 L#cien /i%ner1+,RB2*)

.or%an Partners meet in t"e ca#c#s room of t"e *enate ,ffice B#il in% in Was"in%ton, D.+. on .ay (&, &'(( as t"e .or%an 4earin% reo!ene . Left to ri%"t0 -#ni#s *. .or%an, son of -.P. .or%an, 4arol *tanley, Geor%e W"itney, 6"omas W. Lamont, an Fre *c"wartA of t"e Davis IPolk, War wellJ law firm (co#nsel for .or%an). >veryone eLce!t for Fre *c"wartA was a mem$er of t"e +o#ncil on Forei%n Relations. (P"oto0 Bettmann1+,RB2*)

-.P. .or%an 5 +o. !artners 6"omas W. Lamont (left) an Geor%e W"itney (center) a vise t"eir $oss -.P. C-ackD .or%an -r. in -an#ary &'(H. 6"omas W. Lamont an Geor%e W"itney were mem$ers of t"e +o#ncil on Forei%n Relations.

Former Britis" Prime .inister Davi Lloy Geor%e (left, *e!tem$er (, &')() an former /merican Presi ent Woo row Wilson (ri%"t, Novem$er &), &')() a!!ear on t"e front cover of Time ma%aAine.

+o#ncil on Forei%n Relations fo#n er > war .. 4o#se (left, -#ne )?, &')() an former Prime .inister of France Geor%es +lemencea# (-an#ary B, &')H) a!!ear on t"e front cover of Time ma%aAine.

Britis" Prime .inister -ames Ramsay .ac onal (left, ,cto$er 8, &')') an Britis" +"ancellor of t"e >Lc"eR#er Neville +"am$erlain (ri%"t, /!ril )?, &'()) a!!ear on t"e front cover of Time ma%aAine.

Governor of t"e Bank of >n%lan .onta%# +. Norman (left, /#%#st &', &')')K Britis" *ecretary of *tate for t"e +olonies Leo!ol +. CLeoD /mery (ri%"t, -an#ary (, &')8) a!!ear on t"e front cover of Time ma%aAine.

6"e Rise of 2m!erial -a!an

From the Grassy Knoll in ?ar!in, )hina:

Lone Gunman or Patsy?

The Assassination of 8to 4iro!"mi% Former Prime Minister of Japan% !y Qorean Patriot Ahn J"ng-ge"n *5cto!er 1/% #&A&+

7 Gm =ust a patsyH;: Qorean patriot Ahn J"ng-ge"n assassinates and kills Japanese diplomat 8to 4iro!"mi% ,ho ser ed as Resident 3eneral of Qorea from Decem!er 1#% #&A$ to J"ne #?% #&A&% at the 4ar!in Rail,ay .tation in 4ar!in% China TManch"riaU on 5cto!er 1/% #&A&. *Painting) http)77,,,.pennfamily.org7Q..--.A7korean-on-stamp-$.html+

J.P. Morgan & Co. partner Thomas ;. (amont *T;(+ *third from right+ and 0oston la,yer Jeremiah .mith Jr. *second from right+% a mem!er of 4errick% .mith% Donald & Farley la, firm in 0oston% isit the Mei9i *.hinto+ .hrine in Tokyo% Japan in 5cto!er #&12. Thomas ;. (amont and Jeremiah .mith Jr. ,ere mem!ers of the )ouncil on Forei#n Relations in #&12. 0oth Thomas ;. (amont and Jeremiah .mith Jr. earned a 0achelor of Arts degree at 4ar ard -ni ersity in #@&1. *.o"rce) The 0mbassador from 1all "treet: The "tory of Thomas 1* 2amont, 3* .* Morgan4s /hief ,)ec$tive !y >d,ard M. (amont+

.em$ers of t"e -a!anese ele%ation to t"e Worl >conomic +onference in Lon on $i %oo $ye to 3.*. Presi ent Franklin Delano Roosevelt at t"e W"ite 4o#se in Was"in%ton, D.+., 3.*./. on .ay )8, &'((. Left to ri%"t0 9isco#nt :ik#;iro 2s"ii, "ea ele%ate an former -a!anese /m$assa or to t"e 3.*. (&'&<=&'&')K -##k#io :a$ono, >conomic a viserK Presi ent RooseveltK -a!anese $anker >i%o F#kai (Governor of t"e Bank of -a!an from &'(? to &'(8)K an :ats#;i De$#c"i, -a!anese /m$assa or to t"e 3.*. (2ma%e0 M Bettmann1+,RB2*)

Cro,n Prince 4irohito of Japan *left+ appears ,ith Qing 3eorge H of 3reat 0ritain in (ondon in #&1#. *Photo) Hirohito: 5ehind the Myth !y >d,ard 0ehr+

R#ssian an -a!anese i!lomats ne%otiate t"e 6reaty of Portsmo#t" in Portsmo#t", New 4am!s"ire in &'7?. From left to ri%"t0 t"e R#ssians at far si e of ta$le are :orostovetA, Navo"off, *er%ei Witte (former Finance .inister of R#ssia), Roman Rosen (R#ssian /m$assa or to t"e 3nite *tates of /merica), PlancoffK an t"e -a!anese at near si e of ta$le are / ac"i, ,c"iai, -#taro :om#ra (Forei%n .inister of -a!an an %ra #ate of 4arvar Law *c"ool), :o%oro 6aka"ira (later -a!anese /m$assa or to 2taly), *ato. 6"e lar%e conference ta$le is to ay !reserve at t"e .#se#m .ei;i .#ra in 2n#yama, /ic"i Prefect#re, -a!an. (P"oto $y P. F. +ollier 5 *on)

3.*. Presi ent 6"eo ore Roosevelt (center) meets wit" !eace envoys from R#ssia an -a!an at t"e si%nin% of t"e 6reaty of Portsmo#t" in Portsmo#t", New 4am!s"ire in &'7?.

(eft to right) Capt. 8sorok" Damamoto% Japanese na al attachK in ;ashington% D.C.% -... .ecretary of the Ca y C"rtis D. ;il!"r% another Japanese na al officer% and Adm. >d,ard ;. >!erle% Chief of -... Ca al 5perations% on Fe!r"ary #2% #&1/. *Photo) (i!rary of Congress% ;ashington% D.C. *digital. id. npcc 12$A?++ *.o"rce) http)77media-1.,e!.!ritannica.com7e!-media7?@7#1@2?@-A$A-'@?F$A01.9pg+

Hisitors at the 5range 5il Field% near 5range% Te6as% -...A.% circa #&1'% photo taken !y .h"nkichi Com"ra. From left to right) Qats"nori ;akasa *>ngineer% later changed to Takahashi+% soro6u Aamamoto *Commander% 8mperial Japanese Ca y+% "nkno,n *possi!ly Commander Qak"% 8mperial Japanese Ca y+% Qichimats" Qishi% and Qen9i 8de *Admiral% 8mperial Japanese Ca y+ *Photo) http)77hirasaki.net7FamilyX.tories7Takahashi.htm+

Hisitors to the 5range Petrole"m Company% 5range% Te6as% -...A. circa #&1'% photo taken !y .h"nkichi Com"ra. From left to right) soro6u Aamamoto *Commander% 8mperial Japanese Ca y+ Qichimats" Qishi% Qen9i 8de *Admiral% 8mperial Japanese Ca y+% "nkno,n *possi!ly Commander Qak"% 8mperial Japanese Ca y+% Qats"nori ;akasa *later changed to Takahashi% >ngineer+. *Photo) http)77hirasaki.net7FamilyX.tories7Takahashi.htm+

2m!erial -a!anese Navy 9ice / miral ,sami Na%ano lays a wreat" at t"e 6om$ of t"e 3nknown *ol ier at t"e /rlin%ton National +emetery in /rlin%ton, 9ir%inia, 3.*./. in circa &')8. /t t"e ri%"t en of t"e -a!anese ele%ation is +a!tain 2sorok# Yamamoto, t"e Naval /ttac"V to t"e 3nite *tates. 6"e 3.*. Navy officer stan in% "atless ;#st $e"in t"em is Lie#tenant +omman er Pa#l#s P. Powell, /i e to 9ice / miral ,sami Na%ano #rin% t"is visit. (+ollection of Rear / miral Pa#l#s P. Powell13.*. Naval 4istorical +enter P"oto%ra!") "tt!011www."istory.navy.mil1!"otos1!rs=for1;a!an1;a!rs=LA1i=yamto."tm

Frank .c+oy !re!ares to ne%otiate wit" esi%nate >m!eror of .anc"#k#o 4enry P#=Yi. 4enry P#=Yi is seate in t"e centerK .c+oy is seate two !ersons from P#=Yi@s ri%"t. Frank .c+oy was a mem$er of t"e +o#ncil on Forei%n Relations.

.em$ers of t"e -a!anese ele%ation to t"e con%re%ations $etween -a!an, 3nite *tates an Great Britain in !re!aration for t"e &'(? Lon on Naval +onference, are seen leavin% t"eir "otel for t"e first conference in Lon on on ,cto$er )B, &'(B. Left to ri%"t front, +a!. 6ain ,kaK / miral 2sorok# YamamotoK an +a!tain 2was"ita. Back, left to ri%"t0 -. >nomoto an +omman er 6. .it#no$#. 6"e -a!anese ele%ates aske for f#t#re elimination of Naval TratiosT from all treaties. (2ma%e0 M Bettmann1+,RB2*)

Partici!ants from 2taly, France, /merica, Britain, an -a!an atten t"e Five=Power Naval +onference isc#ssin% limitations on naval armaments in t"e Locarno Room of t"e Forei%n ,ffice in Lon on in Decem$er &'(?. (P"oto0 4#lton=De#tsc" +ollection1+,RB2*)

6mperor ;irohito at Yasukuni 1hrine in Tokyo in !"&=- 6mperor ;irohito sto!!e visitin% t"e Yas#k#ni *"rine in &'8< after the Yasukuni 1hrine .ustodians enshrined several Class%/ ,apanese war .riminals( in.ludin4 >mperial ,apanese Forei4n 8inister Yosuke 8atsuoka served from !"*+%!"*!' and former >mperial ,apanese /m0assador to Fas.ist >taly Toshio 1hiratori served from !"&)%!"*+'- 6mperor /kihito( the son of the late 6mperor ;irohito( has not visited Yasukuni 1hrine sin.e assumin4 the throne in ,anuary !")""tt!011www.;a!anfoc#s.or%1ima%es13serFiles12ma%e1)<8&.sel en.yas#k#ni1"iro.yas#.&'(?n.;!% "tt!011www.;a!anfoc#s.or%1E.arkE*el en= -a!anEEt"eE3nite E*tatesEan EYas#k#niENationalismEEWarEE4istoricalE.emoryEan Et"eEF#t#reEofEt"eE/siaEPacific1 (*o#rce0 6"e /sia=Pacific -o#rnal)

The newly appointed War 8inister of ,apan 2eneral 1eishiro >ta4aki .enter' appears with ?i.e War 8inister of ,apan 2eneral ;ideki To@o se.ond from ri4ht' and pro%British( pro%/meri.an Navy 8inister of ,apan /dmiral 8itsumasa Yonai se.ond from left( in 0la.k military uniform' in !"&)-

>m!eror 4iro"ito of -a!an a!!ears on t"e front cover of t"e -#ne H, &'() e ition (left) an .ay )&, &'B? e ition (ri%"t) of Time ma%aAine.

Left0 / miral 4ei"ac"iro 6o%o a!!ears on t"e front cover of t"e Novem$er <, &')H e ition of Time ma%aAine. Ri%"t0 / miral 2sorok# Yamamoto a!!ears on t"e front cover of t"e Decem$er )), &'B& e ition of Time ma%aAine.

6"e WFe$r#ary )H 2nci ent@ occ#rre in 6okyo, -a!an from Fe$r#ary )H=)', &'(H. 6"e WFe$r#ary )H 2nci ent@ was an attem!te co#! @etat con #cte $y ra ical, #ltranationalist officers of t"e 2m!erial -a!anese /rmy. >m!eror 4iro"ito s#!!resse t"e re$ellion $y Fe$r#ary )'.

Left !"oto0 *ol iers settin% #! martial law "ea R#arters in t"e /kasaka istrict #rin% t"e WFe$r#ary )H 2nci ent@ in 6okyo, -a!an. Ri%"t !"oto0 :eis#ke ,ka a, a former -a!anese Navy a miral, was t"e Prime .inister of -a!an #rin% t"e WFe$r#ary )H 2nci ent@ an was tar%ete for assassination. ,ka a esca!e assassinationK "owever, "e resi%ne as Prime .inister of -a!an on .arc" ', &'(H.

JapanEs (ord Qeeper of the Pri y .eal Makoto .aitY *% #@$@-#&'/+% isits his close friend% Finance Minister Qorekiyo Takahashi *% #@$?-#&'/+ at his official residence on Fe!r"ary 1A% #&'/. (ess than a ,eek after this photograph ,as taken% !oth men ,ere assassinated !y "ltranationalistic Army officers in the Fe!r"ary 1/ 8ncident * +. *.o"rce) 6e%ishi "hashin April #&'/ <Fe!r"ary 1/ 8ncidentG special iss"e+ .o"rce) http)77commons.,ikimedia.org7,iki7File)QorekiyoXTakahashiXandXMakotoX.aitoXlastXpicXtogetherXcropped.9pg .o"rce) http)77syasinsy"".cool.ne.9p7sei9i71@.9pg

*ol iers occ#!y t"e Na%ata=c"o an /kasaka area in 6okyo #rin% t"e Fe$r#ary )H 2nci ent ()H=)' Fe$r#ary &'(H). No$#aki .akino, -a!anese envoy w"o atten e t"e Paris Peace +onference in &'&', esca!e assassination attem!t #rin% t"e WFe$r#ary )H 2nci ent.@ Finance .inister :orekiyo 6aka"as"i an General -otaro Watana$e were also kille in t"e WFe$r#ary )H 2nci ent@.

Qinmochi .aion9i *seated in the !ack of an a"tomo!ile+ ret"rns from the 8mperial Palace in Tokyo% Japan on May ?% #&'/ after ha ing recommended Qoki 4irota as the ne, Prime Minister of Japan. Qinmochi .aion9i ,as the last s"r i ing genr7% or elder statesman: .aion9i ,as appointed genr7 in #&#'. .aion9i ,as the Prime Minister of Japan on t,o separate occasions *#&A/#&A@% #&##-#&#1+. .aion9i led the Japanese delegation at the Paris Peace Conference in #&#&. .aion9i ,as targeted for assassination !y "ltranationalist 8mperial Japanese Army officers d"ring the <Fe!r"ary 1/ 8ncidentG in Fe!r"ary #&'/: .aion9i managed to escape assassination !y fleeing his home. .aion9i died at the age of &# on Co em!er 1?% #&?A.

9ictims of t"e WFe$r#ary )H 2nci ent@, left to ri%"t0 :antaro *#A#ki (s#rvive ), :inmoc"i *aion;i (s#rvive ), *aito .akoto, :orekiyo 6aka"as"i :antaro *#A#ki, a former 2m!erial -a!anese Navy a miral, was severely wo#n e #rin% t"e WFe$r#ary )H 2nci ent@ yet s#rvive t"e assassination attem!t. :antaro *#A#ki was t"e Prime .inister of -a!an from /!ril 8, &'B? #ntil "is resi%nation on /#%#st &8, &'B?. :antaro *#A#ki o!!ose -a!an@s war wit" t"e 3nite *tates of /merica $efore an t"ro#%"o#t Worl War 22. Lor :ee!er of t"e Privy *eal *aito .akoto serve as Prime .inister of -a!an (&'()=&'(B) an Governor=General of :orea (&'&'=&')8, &')'= &'(&). :orekiyo 6aka"as"i, t"e Finance .inister of -a!an in &'(H, serve as t"e Prime .inister of -a!an from &')& #ntil &'))K 6aka"as"i was t"e secon -a!anese +"ristian to serve as t"e Prime .inister of -a!an.

>m!eror 4iro"ito of -a!an elivers "is messa%e to War .inister Lie#tenant General 4i eki 6o;o, followin% t"e military !ara e "el on t"e Yoyo%i Para e Gro#n s in 6okyo, -a!an on ,cto$er )&, &'B7 to mark t"e )H77t" anniversary of t"e fo#n in% of t"e -a!anese >m!ire. +"ief /i e= e=+am! General Ban 4as#n#ma stan s $e"in t"e em!eror. (Bettmann1+,RB2*)

>m!eror 4iro"ito of -a!an reviews "is troo!s #rin% t"e im!erial ins!ection in 6okyo, -a!an on -#ne &), &'B&. 6"e ins!ection feat#re t"e fifteent" anniversary of t"e esta$lis"ment of t"e Yo#n% Peo!lesQ *c"ools in -a!an. .ore t"an (7,777 Peo!lesQ re!resentatives %at"ere in 6okyo for t"e cele$ration. (Bettmann1+,RB2*)

Lea in% -a!anese officials an t"e /merican /m$assa or to -a!an s!oke to t"e 3nite *tates of /merica via tele!"one for t"e first time on Decem$er (7, &'(B, w"en an international service was com!lete in 6okyo. Pict#re at t"e ceremony, are left to ri%"t0 6ake;iro 6okonami, .inister of +omm#nicationsK Forei%n .inister :oki 4irotaK /m$assa or -ose!" +. GrewK an .r. > win Neville, +o#nsellor of t"e /merican >m$assy listenin% in on messa%es comin% from Was"in%ton, D.+. (Bettmann1+,RB2*)

-ose!" +. Grew (stan in%), t"e /merican /m$assa or to 2m!erial -a!an, elivers a s!eec" at an /merica=-a!an *ociety inner in .arc" &'(H. Prime .inister of -a!an :oki 4irota ( ), w"o serve as t"e Prime .inister from .arc" ', &'(H to Fe$r#ary ), &'(8, is seate t"ree !ersons from Grew@s ri%"t. 6"e -a!anese naval officer at t"e eLtreme ri%"t is / miral .ineo ,s#mi ( ), .inister of t"e Navy. :oki 4irota was convicte of war crimes at t"e 6okyo 6rials in &'B< an eLec#te $y "an%in% at *#%amo Prison in 6okyo on Decem$er )(,

&'B<. / miral .ineo ,s#mi, w"o serve as t"e .inister of t"e Navy from &'(& to &'() an from &'(( to &'(H, was kille in action in +"ina #rin% t"e *econ *ino=-a!anese War on Fe$r#ary ?, &'B&.

. 3.*. /m$assa or to -a!an -ose!" +. Grew c"ats wit" :ic"isa$#ro Nom#ra, t"e esi%nate -a!anese /m$assa or to t"e 3nite *tates of /merica, at t"e 6okyo train station in 6okyo, -a!an in -an#ary &'B& as Nom#ra leaves for /merica. -ose!" +. Grew was a mem$er of t"e +o#ncil on Forei%n Relations, an internationalist or%aniAation in New York +ity, at t"e time t"is !"oto%ra!" was taken. (Provi e $y .ainic"i News!a!er) "tt!011www.;acar.%o.;!1en%lis"1nic"i$ei1ne%otiation1in eL?."tml

Left !"oto0 2m!erial -a!anese Forei%n .inister Yos#ke .ats#oka (left) visits / olf 4itler in .arc" &'B& Ri%"t !"oto0 Yos#ke .ats#oka si%ns t"e *oviet=-a!anese Ne#trality Pact in .oscow on /!ril )? &'B& wit" *oviet +ommissar -osef *talin an *oviet Forei%n .inister 9yac"eslav .olotov watc"in% in t"e $ack%ro#n .

*oviet +ommissar -osef *talin an *oviet Forei%n .inister 9yac"eslav .olotov watc" -a!anese Forei%n .inister Yos#ke .ats#oka si%n t"e *oviet=-a!anese Ne#trality Pact in .oscow on /!ril &(, &'B&. (P"oto0 "tt!011victory.r#sarc"ives.r#1in eL.!"!F!G(&5!"otoEi G''H)

/ olf 4itler talks to 2m!erial -a!anese Forei%n .inister Yos#ke .ats#oka #rin% t"e latterQs recent visit to t"e German ca!ital in Berlin on /!ril )&, &'B&, wit" Dr. *c"mi t (in #niform) actin% as inter!reter. -oac"im von Ri$$entro!, t"e German forei%n minister, looks on (eLtreme left). (+,RB2*)

Japanese Minister of Foreign Affairs Dos"ke Mats"oka isits 0erlin% 3ermany on April #&% #&?#. *Pro ided !y Qeiyosha+ http)77,,,.9acar.go.9p7english7nichi!ei7negotiation7inde6$.html

Japanese Minister of Foreign Affairs Dos"ke Mats"oka appears ,ith Fascist 8talyEs Prime Minister 0enito M"ssolini in Henice% 8taly on April 12% #&?#. *Pro ided !y Qeiyosha+ http)77,,,.9acar.go.9p7english7nichi!ei7negotiation7inde6$.html

Left to ri%"t0 Prime .inister of -a!an Prince F#mimaro :onoe, Forei%n .inister Yos#ke .ats#oka, .inister of t"e Navy / miral Uen%o Yos"i a, an .inister of War General 4i eki 6o;o meet !rivately in 6okyo, -a!an on /#%#st H, &'B7. (M Bettmann1+,RB2*)

Di%nitaries !artici!ate in t"e si%nin% ceremony of t"e -a!an=Germany=2taly 6ri!le /lliance in *e!tem$er &'B7. From left to ri%"t0 -a!anese /m$assa or to Germany *a$#ro :#r#s#, 2talian .inister of Forei%n /ffairs +iano, an Germany@s C+"ancellorD / olf 4itler. (Provi e $y .ainic"i News!a!er) "tt!011www.;acar.%o.;!1en%lis"1nic"i$ei1ne%otiation1in eL?."tml

3nite *tates /m$assa or to -a!an, -ose!" +lark Grew (left) an new Forei%n .inister of -a!an, 6ei;iro 6oyo a, smile for camera on ,cto$er ), &'B& w"en .inister 6oyo a ma e t"e c#stomary call #!on t"e ean of t"e 6okyo i!lomatic +or!s after "e ass#me office. (Bettmann1+,RB2*)

3nite *tates /m$assa or to -a!an -ose!" +. Grew (ri%"t) !ict#re wit" Forei%n .inister :ic"isa$#ro Nom#ra at t"e time Grew visite t"e .inistry in 6okyo, -a!an on Novem$er B, &'('. 6"e ca!tain accom!anyin% t"is !ict#re form -a!an says TNo im!ortant conversations were "el , it is re!orte .T Dis!atc"es from /merican corres!on ents in 6okyo t"e same ay, tol t"at Grew "a tol Nom#ra t"at -a!an was in an%er of economic !ress#re from t"e 3nite *tates if it was t"e first of many sc"e #le , to etermine w"at -a!anese=/merican +ommercial 6reaty >L!ires -an#ary )H, &'B7. (Bettmann1+,RB2*)

Prince F"mimaro Qonoe is seen riding in a limo"sine in Japan on 5cto!er #&% #&?#% a day after he resigned as Prime Minister of Japan. F"mimaro Qonoe and his entire Ca!inet resigned after Qonoe opposed the 8mperial Japanese ArmyEs proposal to attack Pearl 4ar!or and ,age ,ar on the -nited .tates of America. *Pro ided !y Qeiyosha+ http)77,,,.9acar.go.9p7english7nichi!ei7negotiation7inde6$.html

8mperial Japanese Army 3eneral 4ideki To9o *front ro,% center+ appears ,ith his Ca!inet in Tokyo% Japan on 5cto!er 1#% #&?#. *Pro ided !y Qeiyosha+ http)77,,,.9acar.go.9p7english7nichi!ei7negotiation7inde6$.html

2m!erial -a!anese /m$assa or to /merica :ic"isa$#ro Nom#ra (left), 3.*. *ecretary of *tate +or ell 4#ll (center), an 2m!erial -a!anese envoy *a$#ro :#r#s# stroll on W"ite 4o#se %ro#n s in Was"in%ton, D.+. in Novem$er &'B& #rin% t"e faile -a!an=/merica !eace me iations !revio#s to t"e attack on Pearl 4ar$or. (6"omas D. .c/voy16ime Life)

-a!anese navy officers anno#nce t"e o#t$reak of war $etween -a!an an t"e 3.*. at t"e .inistry of t"e Navy in 6okyo, -a!an on Decem$er <, &'B&. (Provi e $y .ainic"i News!a!er) "tt!011www.;acar.%o.;!1en%lis"1nic"i$ei1ne%otiation1in eL?."tml

<;ith one nota!le e6ception% JapanEs !ackgro"nd for aggression presented a strong parallel to that of 3ermany. The e6ception ,as the ind"strial strength of the t,o Po,ers. Japan ,as really a <ha e notG nation% lacking most of the nat"ral reso"rces to s"stain a great ind"strial system. 8t lacked m"ch of the necessary !asic materials s"ch as coal: iron% petrole"m% alloy minerals% ,aterpo,er% or e en food. 8n comparison% 3ermanyBs claim to !e a <ha e notG nation ,as merely a propaganda de ice. 5ther than this% the similarity of the t,o co"ntries ,as striking) each had a completely carteli=ed ind"stry% a militaristic tradition% a hard,orking pop"lation ,hich respected a"thority and lo ed order% a national o!session ,ith its o,n "niF"e al"e and a resentment at the rest of the ,orld for fail"re to recogni=e this% and a constit"tional str"ct"re in ,hich a facade of parliamentary constit"tionalism !arely concealed the reality of po,er ,ielded !y an alliance of army% landlords% and ind"stry. The fact that the Japanese constit"tion of #@@& ,as copied from the constit"tion of 0ismarck goes far to e6plain this last similarity. ;e ha e already mentioned the ac"te pro!lem presented to Japan !y the contrast !et,een their limited nat"ral reso"rces and their gro,ing pro!lems. ;hile their reso"rces did not increase% their pop"lation gre, from '# million in #@2' to 2' million in #&'&% the rate of gro,th reaching its peak in the period #&1$-#&'A *@ percent increase in these fi e years+. ;ith great ingen"ity and tireless energy% the Japanese people tried to make ends meet. ;ith foreign e6change earned from merchant shipping or from e6ports of silk% ,ood prod"cts% or seafoods% ra, materials ,ere imported% man"fact"red into ind"strial prod"cts% and e6ported to o!tain the foreign e6change necessary to pay for imports of ra, materials or food. 0y keeping costs and prices lo e% the Japanese ,ere a!le to "ndersell >"ropean e6porters of cotton te6tiles and iron prod"cts in the markets of Asia% especially in China and 8ndonesia. The possi!ility of relie ing their pop"lation press"re !y emigration% as >"rope had done earlier% ,as pre ented !y the fact that the o! io"s colonial areas had already !een taken in hand !y >"ropeans. >nglish-speaking persons% ,ho held the !est and et "nfilled areas% slammed the door on Japanese immigration in the period after #&A#% 9"stifying their actions on racial and economic arg"ments. American restrictions on Japanese immigration% originated among la!oring gro"ps in California% ,ere a ery !itter pill for Japan% and in9"red its pride greatly. I Tragedy and Hope !y Carroll J"igley% p. $/#-$/1 <The steady rise in tariffs against Japanese man"fact"red goods after #@&2% a de elopment ,hich ,as also led !y America% ser ed to increase the diffic"lties of JapanEs position. .o also did the slo, e6ha"stion of the Pacific fisheries% the gro,ing *if necessary+ restrictions on s"ch fishing !y conser ationist agreements% the decrease in forestry reso"rces% and political and social "nrest in Asia. For a long time% Japan ,as protected from the f"ll impact of this pro!lem !y a series of fa ora!le accidents. The First ;orld ;ar , as a splendid ,indfall. 8t ended >"ropean commercial competition in Asia% Africa% and the Pacific: it increased the demand for Japanese goods and ser ices: and it made Japan an international creditor for the first time. Capital in estment in the fi e years #&#$-#&1A ,as eight times as m"ch as in the ten years #&A$-#&#$: la!orers employed in factories "sing o er fi e ,orkers each increased from &?@ tho"sand in #&#? to #%/#1 tho"sand in #&#&: ocean shipping rose from l.$ million tons in #&#? to ' million tons in #&#@% ,hile income from shipping freight rose from ?A million yen in #&#? to ?$A million in #&#@: the fa ora!le !alance of international trade amo"nted to #%?@A million yen for the fo"r years #&#$-#&#@. .ocial life% the economic str"ct"re% and the price system% already dislocated !y this rapid change% recei ed a terri!le 9olt in the depression of #&1A-#&1#% !"t Japan rapidly reco ered and ,as shielded from the f"ll conseF"ences of her large pop"lation and limited reso"rces !y the !oom of the #&1AEs. Rapid technological ad ance in the -nited .tates% 3ermany% and Japan itself% demand for Japanese goods *especially te6tiles+ in so"thern and so"theastern Asia% American loans thro"gho"t the ,orld% large American p"rchases of Japanese silk% and the general <!oom psychologyG of the ,hole ,orld protected Japan from the f"ll impact of its sit"ation "ntil #&1&-#&'#. -nder this protection the older a"thoritarian and militaristic traditions ,ere ,eakened% li!eralism and democracy gre, slo,ly !"t steadily% the aping of 3ermanic traditions in intellect"al and political life *,hich had !een going on since a!o"t #@@A+ ,as largely a!andoned% the first party go ernment ,as esta!lished in #&#@% "ni ersal manhood s"ffrage ,as esta!lished in #&1$% ci ilian go ernors replaced military r"le for the first time in colonial areas like Formosa% the army ,as red"ced from 1# to #2 di isions in #&1?% the na y ,as red"ced !y international agreement in #&11 and in #&'A% and there ,as a great e6pansion of ed"cation% especially in the higher le els. This mo ement to,ard democracy and li!eralism alarmed the militarists and dro e them to desperation. At the same time% the gro,th of "nity and p"!lic order in China% ,hich these militarists had regarded as a potential ictim for their operations% con inced them that they m"st act F"ickly !efore it ,as too late. The ,orld depression ga e this gro"p their great opport"nity. > en !efore its onset% ho,e er% fo"r omino"s factors in Japanese political life h"ng like threatening clo"ds on the hori=on. These ,ere *a+ the lack of any constit"tional reF"irement for a go ernment responsi!le to the Diet% *!+ the contin"ed constit"tional freedom of the army from ci ilian control% *c+ the gro,ing "se of political assassination !y the conser ati es as a means for remo ing li!eral politicians from p"!lic life% as ,as done against three premiers and many lesser persons in the period #&#@-#&'1% and *d+ the gro,ing appeal of re ol"tionary .ocialism in la!oring circles. The ,orld depression and the financial crisis hit Japan a terri!le !lo,. The declining demand for ra, silk in competition ,ith synthetic fi!ers like rayon and the slo, decline of s"ch Asiatic markets as China and 8ndia !eca"se of political dist"r!ances and gro,ing ind"striali=ation made this !lo, harder to !ear. -nder this impact% the reactionary and aggressi e forces in Japanese society ,ere a!le to solidify their control of the state% intimidate all domestic opposition% and em!ark on that ad ent"re of aggression and destr"ction that led "ltimately to the disasters of #&?$.G I Tragedy and Hope !y Carroll J"igley% p. $/1-$/'

<These economic storms ,ere se ere% !"t Japan took the road to aggression !eca"se of its o,n past traditions rather than for economic reasons. The militarist traditions of fe"dal Japan contin"ed into the modern period% and flo"rished in spite of steady criticism and opposition. The constit"tional str"ct"re shielded !oth the military leaders and the ci ilian politicians from pop"lar control% and 9"stified their actions as !eing in the emperorEs name. 0"t these t,o !ranches of go ernment ,ere separated so that the ci ilians had no control o er the generals. The la, and c"stom of the constit"tion allo,ed the generals and admirals to approach the emperor directly ,itho"t the kno,ledge or consent of the Ca!inet% and reF"ired that only officers of this rank co"ld ser e as ministers for these ser ices in the Ca!inet itself. Co ci ilian inter ened in the chain of command from emperor to lo,ly pri ate% and the armed ser ices !ecame a state ,ithin the state. .ince the officers did not hesitate to "se their positions to ens"re ci ilian compliance ,ith their ,ishes% and constantly resorted to armed force and assassination% the po,er of the military gre, steadily after #&12. All their acts% they said% ,ere in the name of the emperor% for the glory of Japan% to free the nation from corr"ption% from partisan politicians% and from pl"tocratic e6ploitation% and to restore the old Japanese irt"es of order% selfsacrifice% and de otion to a"thority. .eparate from the armed forces% sometimes in opposition to them !"t generally dependent "pon them as the chief p"rchasers of the prod"cts of hea y ind"stry% ,ere the forces of monopoly capitalism. These ,ere led% as ,e ha e indicated% !y the eight great economic comple6es% controlled as family "nits% kno,n as 8aibats$. These eight controlled 2$ percent of the nationEs corporate ,ealth !y #&'A and ,ere headed !y Mits"i% ,hich had #$ per cent of all corporate capital in the co"ntry. They engaged in openly corr"pt relationships ,ith Japanese politicians and% less freF"ently% ,ith Japanese militarists. They "s"ally cooperated ,ith each other. For e6ample% in #&12% the efforts of Mits"i and Mits"!ishi to smash a smaller competitor% ."="ki Company of Qo!e% precipitated a financial panic ,hich closed most of the !anks in Japan. ;hile the .ho,a 0ank% operated 9ointly !y the 8aibats$% took o er many smaller corporations and !anks ,hich failed in the crisis and o er #@A%AAA depositors lost their sa ings% the Ca!inet of the militarist 3eneral Tanaka granted #%$AA million yen to sa e the 8aibats$ themsel es from the conseF"ences of their greed. The militaristic and nationalistic traditions ,ere ,idely accepted !y the Japanese people. These traditions% e6tolled !y the ma9ority of politicians and teachers% and propagated !y n"mero"s patriotic societies% !oth open and secret% ,ere gi en a free hand% ,hile any opposing oices ,ere cr"shed o"t !y legal or illegal methods "ntil% !y #&'A% most s"ch oices ,ere silenced. A!o"t the same date% the militarists and the 8aibats$% ,ho had pre io"sly !een in opposition as often as in coalition% came together in their last fatef"l alliance. They "nited on a program of hea y ind"striali=ation% militari=ation% and foreign aggression. >astern Asia% especially northern China and Manch"ria% !ecame the designated ictim% since these seemed to offer the necessary ra, materials and markets for the ind"strialists and the field of glory and !ooty for the militarists. 8n aiming their attack at Manch"ria in #&'# and at northern China in #&'2% the Japanese chose a ictim ,ho ,as clearly "lnera!le.G I Tragedy and Hope !y Carroll J"igley% p. $/'-$/? <Tho"gh the Japanese sei="re of Manch"ria in the a"t"mn of #&'# ,as an independent action of the Japanese military forces% it had to !e condoned !y the ci ilian leaders. The Chinese retaliated !y a !oycott of Japanese goods ,hich serio"sly red"ced JapanEs e6ports. To force an end to this !oycott% Japan landed forces at .hanghai *#&'1+ and% after se ere fighting in ,hich m"ch Japanese a!"se ,as inflicted "pon >"ropeans% the Chinese forces ,ere dri en from the city and compelled to agree to a termination of the economic !oycott against Japan. A!o"t the same time% Manch"ria ,as set "p as a Japanese protectorate "nder the r"le of 4enry PE"i% ,ho had a!dicated the Chinese throne in #&#1. As early as Jan"ary #&'1% the -nited .tates notified all signers of the Cine-Po,er treaty of #&11 that it ,o"ld ref"se to accept territorial changes made !y force in iolation of the Qellogg-0riand Pact to 5"tla, ;ar. An appeal to the (eag"e of Cations for s"pport% made !y China on .eptem!er 1#% #&'#% the same day that >ngland ,ent off the gold standard% passed thro"gh an intermina!le series of proced"ral disp"tes and finally led to a Commission of >nF"iry "nder the >arl of (ytton. The report of this commission% released in 5cto!er% #&'1% sharply condemned the actions of Japan !"t recommended no effecti e 9oint action to oppose these. The (eag"e accepted the .timson Doctrine of Conrecognition% and e6pressed sympathy for the Chinese position. This ,hole affair has !een rehashed endlessly since #&'# to the accompaniment of claims and co"nterclaims that effecti e leag"e action ,as !locked !y the a!sence of the -nited .tates from its co"ncils% or !y .timsonBs delay in condemning Japanese aggression% or !y 0ritish ref"sal to s"pport .timsonBs s"ggestions for action against Japan. All these disc"ssions neglect the ital point that the Japanese army in Manch"ria ,as not "nder the control of the Japanese ci il go ernment% ,ith ,hich negotiations ,ere !eing cond"cted% and that these ci il a"thorities% ,ho opposed the Manch"rian attack% co"ld not gi e effecti e oice to this opposition ,itho"t rising assassination. Premier D"ko 4amag"chi had !een killed as recently as Co em!er #&'A for appro ing the (ondon Ca al Agreement to ,hich the militarists o!9ected% and Premier Qi 8n"kai ,as dealt ,ith the same ,ay in May #&'1. Thro"gho"t% the (eag"e disc"ssions ,ere not cond"cted ,ith the right party. >6cept for its iolation of nationalist feelings and the completely o!9ectiona!le means !y ,hich it ,as achie ed% the acF"isition of Manch"ria !y Japan possessed many strategic and economic ad antages. 8t ga e Japan ind"strial reso"rces ,hich it itally needed% and co"ld% in time% ha e strengthened the Japanese economy. .eparation of the area from China% ,hich had not controlled it effecti ely for many years% ,o"ld ha e restricted the sphere of ChiangBs go ernment to a more managea!le territory. A!o e all% it co"ld ha e ser ed as a co"nterpoise to .o iet po,er in the Far >ast and pro ided a f"lcr"m to restrain .o iet actions in >"rope after the collapse of 3ermany. -nfort"nately% the "ncompromising a arice and ignorance of the Japanese militarists made any s"ch sol"tion impossi!le. This ,as made F"ite certain !y their t,o ma9or errors% the attack on China in #&'2 and the attack on the -nited .tates in #&?#. 8n !oth cases the militarists !it off more than they co"ld che,% and destroyed any possi!le ad antages they might ha e gained from the acF"isition of Manch"ria in #&'#. 8n the se en years after the first attack on Manch"ria in .eptem!er #&'#% Japan sank 1.$ !illion yen in capital in estments in that area% mostly in mining% iron prod"ction% electric po,er% and petrole"m. Dear after year this in estment increased ,itho"t ret"rning any immediate yield to Japan% since o"tp"t from this ne, in estment ,as immediately rein ested. The only items of m"ch help for Japan itself ,ere iron ore% pig iron% and certain chemical fertili=ers. The Manch"rian soy-!ean crop% altho"gh it declined "nder Japanese r"le% ,as e6changed ,ith 3ermany for needed commodities o!taina!le there. For JapanEs other "rgent material needs% s"ch as ra, cotton% r"!!er% and petrole"m% no help co"ld !e fo"nd in Manch"ria. 8n spite of costly capital in estment% it co"ld prod"ce no more than its o,n needs in petrole"m% chiefly from liF"efaction of coal. The fail"re of Manch"ria to pro ide an ans,er to JapanEs economic pro!lems led the Japanese military leaders to,ard a ne, act of aggression% this time directed to,ard Corth China itself.G I Tragedy and Hope !y Carroll J"igley% p. $//-$/@

<The ri alry !et,een the Chinese Comm"nists and the Q"omintang !roke o"t intermittently in #&'@-#&?#% !"t Japan ,as "na!le to profit from it in any decisi e ,ay !eca"se of its economic ,eakness. The great in estment in Manch"ria and the adoption of a policy of ,holehearted aggression reF"ired a reorgani=ation of JapanBs o,n economy from its pre io"s emphasis on light ind"stry for the e6port market to a ne, emphasis on hea y ind"stry for armaments and hea y in estment. This ,as carried o"t so r"thlessly that JapanBs prod"ction of hea y ind"stry rose from ' !illion yen in #&'' to @.1 !illion yen in #&'@% ,hile te6tile prod"ction rose from 1.& !illion yen to no more than '.2 !illion yen in the same fi e years. 0y #&'@ the prod"cts of hea y ind"stry acco"nted for $' percent of JapanBs ind"strial o"tp"t. This increased JapanBs need for imports ,hile red"cing her a!ility to pro ide the e6ports *pre io"sly te6tiles+ to pay for s"ch imports. 0y #&'2 JapanEs "nfa ora!le !alance of trade ,ith the <nonyenG area amo"nted to &1$ million yen% or almost fo"r times the a erage of the years !efore #&'2. 8ncome from shipping ,as red"ced !y military demands as ,ell% ,ith the res"lt that JapanEs "nfa ora!le !alance of trade ,as reflected in a hea y o"tflo, of gold *#%/@$ million yen in #&'2-#&'@+. 0y the end of #&'@% it ,as clear that Japan ,as losing its financial and commercial a!ility to !"y necessary materials of foreign origin. The steps taken !y the -nited .tates% A"stralia% and others to restrict e6port of strategic or military materials to Japan made this pro!lem e en more ac"te. The attack on China had !een intended to remedy this sit"ation !y remo ing the Chinese !oycott on Japanese goods% !y !ringing a s"pply of necessary materials% especially ra, cotton% "nder JapanBs direct control% and !y creating an e6tension of the yen area ,here the "se of foreign e6change ,o"ld not !e needed for trading p"rposes. 5n the ,hole% these p"rposes ,ere not achie ed. 3"errilla acti ities and Japanese ina!ility to control the r"ral areas made the achie ement of a yen area impossi!le% made trade diffic"lt% and red"ced the prod"ction of cotton drastically *!y a!o"t one-third+. >6port of iron ore from China to Japan fell from 1.' million tons in #&'2 to A.' million in #&'@% altho"gh coal e6ports rose slightly. 8n an effort to increase prod"ction% Japan !egan to po"r capital in estment into the still"npacified areas of Corth China at a rate ,hich ri aled the rate of in estment in Manch"ria. The Fo"r-Dear Plan of #&'@ called for #%?1A million yen of s"ch in estment !y #&?1. This pro9ect% added to the need for Japan to feed and clothe the inha!itants of Corth China% made that area a drain on the ,hole Japanese economy% so that Japanese e6ports to that area rose from #2& !illion yen in #&'2 to '#1 million in #&'@. To make matters ,orse% the people of this occ"pied territory ref"sed to accept or "se the ne,ly esta!lished yen c"rrency !eca"se of g"errilla threats to shoot anyone fo"nd in possession of it. All this had an ad erse effect on JapanBs financial position. 8n t,o years of the China ,ar% #&'/-#&'2 to #&'@-#&'&% the Japanese !"dget rose from 1.' to @.? !illion yen% of ,hich @A percent ,ent for military p"rposes. 3o ernment de!t and commodity prices rose steadily% !"t the Japanese people responded so readily to ta6ation% go ernment loans% and demands for increased prod"ction that the system contin"ed to f"nction. 0y the end of #&'&% ho,e er% it ,as clear that the threefold !"rden of a con ersion to hea y ind"stry% ,hich r"ined the e6port trade% a hea y rate of in estment in Manch"ria and Corth China% and an indecisi e ,ar ,ith Cationalist China co"ld not !e !orne fore er% especially "nder the press"re of the gro,ing rel"ctance of ne"tral co"ntries to s"pply Japan ,ith necessary strategic goods. 8 he t,o most ital needs ,ere in petrole"m prod"cts and r"!!er. To the militarists% ,ho controlled Japan !oth politically and economically after #&'&% it seemed that the occ"pation of the D"tch 8ndies and Malaya co"ld do m"ch to alle iate these shortages. The occ"pation of the Cetherlands itself !y 4itlerBs hordes in #&?A and the in ol ement of >ngland in the >"ropean ,ar since #&'& seemed to offer a golden opport"nity for Japan to sei=e these so"thern regions. To do so ,o"ld reF"ire long lines of comm"nications from Japan to 8ndonesia. These lines ,o"ld !e e6posed to attack from the American !ases in the Philippines or from the 0ritish !ase at .ingapore. J"dging the American psychology as similar to their o,n% the Japanese militarists ,ere s"re that in s"ch circ"mstances America ,o"ld not hesitate to attack these "lnera!le lines of comm"nication. Th"s% it seemed to them that a Japanese attack on the D"tch 8ndies ,o"ld ine ita!ly lead to an American ,ar on Japan. Facing this pro!lem% the Japanese militarists reached " hat seemed to their minds to !e an inescapa!le decision. They decided to attack the -nited .tates first. From this decision came the Japanese attack on Pearl 4ar!or on Decem!er 2% #&?#.G I Tragedy and Hope !y Carroll J"igley% p. $/@-$2A

<Traditionally% American policy in the Far >ast had so"ght to preser e the territorial integrity and political independence of China and to maintain an <5pen DoorG for ChinaEs foreign trade. These goals !ecame increasingly diffic"lt to achie e in the co"rse of the t,entieth cent"ry !eca"se of the gro,ing ,eakness of China itself% the steady gro,th of aggression in Japan% and the deepening in ol ement of other Po,ers ,ith Far >astern interests in a life-or-death str"ggle ,ith 3ermany. After the fall of France and the (o, Co"ntries in the s"mmer of #&?A% 0ritain co"ld offer the -nited .tates little more than sympathy and some degree of diplomatic s"pport in the Far >ast% ,hile the Cetherlands and France% ,ith rich colonial possessions ,ithin reach of JapanBs a id grasp% co"ld pro ide no real opposition to JapanBs demands. After 4itlerBs attack on R"ssia in J"ne #&?#% the .o iet -nion% ,hich had act"ally fo"ght Japanese forces in the Far >ast in #&'@ and again in #&'&% co"ld e6ert no press"re on Japan to deter f"rther Cipponese aggression. Th"s% !y the s"mmer of #&?#% Japan ,as ready for ne, ad ances in the Far >ast% and only the -nited .tates ,as in a position to resistZThe Japanese had !een s"premely confident of their a!ility to conF"er all China% if necessary% e en as late as #&'&. As a conseF"ence% their ad ance had !een accompanied !y !r"tality against the Chinese% !y ario"s actions to dri e all >"ropeans and all >"ropean economic enterprises o"t of China% and !y ins"lts and h"miliations to >"ropeans fo"nd in China% especially in .hanghai. 0y #&'& all of this ,as !eginning to change. The attack on China had !ogged do,n completely. The Japanese economy ,as !eginning to totter "nder a com!ination of circ"mstances% incl"ding the e6ha"sting effort to strangle China and to administer a fatal !lo, to the retreating Chinese go ernment !y octop"s tactics% the reorgani=ation of JapanEs home ind"stry from a light !asis to a hea y ind"strial plant *for ,hich Japan lacked the necessary reso"rces+% the gigantic capital in estment in Manch"ria and Corth China% the gro,ing restrictions on Japanese trade imposed !y ;estern co"ntries% and% finally% the com!ination of a rapidly gro,ing pop"lation ,ith ac"te material shortages. Pro!lems s"ch as these might ha e dri en many nations% e en in the ;est% to desperate action. 8n Japan the sit"ation ,as made more critical !y the large-scale di ersion of manpo,er and reso"rces from cons"mption to capital formation at a ery high rate. And% finally% all this ,as taking place in a co"ntry ,hich placed a high esteem on military arrogance.G I Tragedy and Hope !y Carroll J"igley% p. 2'#-2'1 <8n theory% of co"rse% Japan might ha e so"ght to remedy its material shortages in a peacef"l ,ay% !y seeking to increase JapanBs foreign trade% e6porting increasing amo"nts of Japanese goods to pay for rising Japanese imports. 8n fact% s"ch a policy had o! io"s ,eaknesses. The ,orld depression after #&1& and the gro,th of economic a"tarchy in all co"ntries% incl"ding the -nited .tates% made it ery diffic"lt to increase Japanese e6ports. The e6cessi ely high American .moot-4a,ley tariff of #&'A% altho"gh not so intended% seemed to the Japanese to !e an aggressi e restriction on their a!ility to li e. The <imperial preferenceG reg"lations of the 0ritish Common,ealth had a similar conseF"ence. .ince Japan co"ld not defend itself against s"ch economic meas"res% it resorted to political meas"res. To do other,ise ,o"ld ha e !een contrary to Japanese traditions. 0"t% !y em!arking on this co"rse% Japan ,as heading in a direction ,hich co"ld hardly ha e a fa ora!le o"tcome. 8f Japan adopted political meas"res to defend itself against economic restrictions% the ;estern Po,ers ,o"ld ine ita!ly defend themsel es ,ith e en greater economic restrictions on Japan% dri ing Japan% !y a series of s"ch stages% to open ,ar. And% in s"ch a ,ar% in ie, of its economic ,eakness% Japan co"ld hardly hope to ,in. These stages ,ere conf"sed and delayed o er a f"ll decade of years *#&'#-#&?#+% !y indecision and di ided co"nsels in !oth Japan and the ;estern Po,ers. n the process *apan found a considera!le ad:anta#e in the parallel a##ressions of taly and Germany9 t also found a considera!le disad:anta#e in the fact that *apanGs imports /ere :ital necessities to her, /hile her e0ports /ere :ital necessities to no one9 This meant that *apan>s trade could he cut off or reduced !y anyone, to *apanGs #reat in=ury, !ut at much smaller cost to the other nation9 The steps leading to open ,ar !et,een Japan and the ;estern Po,ers ,ere delayed !y the longdra,n indecision of the .ino-Japanese ;ar. For years Japan hoped to find a sol"tion for its economic and social pro!lems in a decisi e ictory o er China% ,hile in the same years the ;estern Po,ers hoped for an end to Japanese aggression !y a Japanese defeat in China. 8nstead% the str"ggle in that area dragged on ,itho"t a decision. The ;estern Po,ers ,ere too di ided at home and among themsel es% too filled ,ith pacifism and mistaken political and economic ideas to do anything decisi e a!o"t China% especially ,hen open ,ar ,as impossi!le and anything less than ,ar ,o"ld in9"re China as ,ell as Japan. Th"s% no sanctions ,ere imposed on Japan for its aggression on Manch"ria in #&'# or for its attack on Corth China in #&'2. The American Ce"trality Act ,as not applied to this conflict !eca"se President Roose elt adopted the simple legalistic e6pedient of failing to <findG a ,ar in the Far >ast. 0"t the mere e6istence of la,s ,hich might ha e imposed economic sanctions or economic retaliation on Japan re ealed to that co"ntry the !asic ,eakness of its o,n position.G I Tragedy and Hope !y Carroll J"igley% p. 2'1-2'' <8n #&'2 Japan recei ed a series of lessons in the precario"s state of its strategic-economic position. 8n the first half of that year% as !ackgro"nd for its gro,ing military press"re on China% Japan !o"ght a record amo"nt of American scrap iron and steel% #.' million metric tons in si6 months. Agitation to c"rtail this s"pply% either !y applying the Ce"trality Act to the .ino-Japanese conflict or !y some lesser action% ,as gro,ing in the -nited .tates. $arly in 'cto!er +,FD, President Roose:elt caused a contro:ersy !y a speech su##estin# a 71uarantine; of a##ressor nations9 8solationist sentiment in the -nited .tates% especially in the Mid,est% ,as too strong to allo, the administration to take any important steps to,ard s"ch a <F"arantine.G Ce ertheless% .timson% ,ho had !een American secretary of state at the time of the Manch"rian crisis in #&'#% made a p"!lic appeal for an em!argo on the shipment of ,ar materials to Japan. A month later% Co em!er '-1?% #&'2% a conference of the signers of the Cine-Po,er Treaty of #&11% ,hich g"aranteed the integrity of China% met at 0r"ssels to disc"ss ,hat steps might !e taken to end JapanBs aggression in China. There ,as considera!le talk of economic sanctions% !"t no 3reat Po,er ,as ,illing to light the f"se on that stick of dynamite% so the occasion lapsed% and nothing ,as done. 0"t the lesson ,as not ,asted on Japan: it intensified its efforts to !"ild "p Japanese po,er to a position ,here it co"ld "se political action to defend itself against any economic reprisals. Cat"rally% the political actions it took in this direction ser ed only to hasten economic reprisals against itself% especially !y the -nited .tates% the ,orldBs most de oted defender of

the stat"s F"o in the Far >ast and the only 3reat Po,er in any position% especially after 4itlerBs attacks% to adopt an acti e policy against Japan.G I Tragedy and Hope !y Carroll J"igley% p. 2''-2'?

<Japan co"ld ha e achie ed little to,ard a political sol"tion of its pro!lems if it had not !een for the aggressions of 8taly and 3ermany on the other side of the ,orld. A f"ll year !efore the 0r"ssels Conference% on Co em!er 1$% #&'/% Japan had 9oined the leag"e of aggressors kno,n as the Anti-Comintern Pact. Disc"ssions seeking to strengthen this arrangement into a f"ll 3erman-Japanese alliance ,ent on for years% !"t ,ere not concl"ded "ntil .eptem!er #&?A. 4itler ,as not s"re ,hether he ,anted Japanese s"pport against the ;estern democracies or against the .o iet -nion% and% accordingly% so"ght an agreement ,hich co"ld !e s,"ng either ,ay% ,hile Japan ,as interested in a 3erman alliance only if it ran against the .o iet -nion. At the same time% 3ermany o!9ected to the Japanese ,ar on China% since this pre ented JapanBs strength from !eing directed against either of 3ermanyEs possi!le foes% and 9eopardi=ed 3erman economic interests in China. All these diffic"lties contin"ed% altho"gh Ri!!entropBs ad ent to the post of foreign minister in 0erlin in Fe!r"ary #&'@ ina"g"rated a period of ,holehearted cooperation ,ith Japan in China% replacing Ce"rathEs earlier efforts to maintain some kind of ne"tral !alance in the .ino-Japanese ;ar. The 3erman military ad isers ,ith Chiang Qai-shek ,ere ,ithdra,n% altho"gh some of them had !een in their positions for ten years and ,ere likely to !e replaced !y .o iet ad isers: the 3erman am!assador ,as ,ithdra,n from China% and the protection of 3erman interests ,as generally left to lesser officials% "sing Japanese officials in areas "nder Japanese occ"pation: the Japanese regime in Manch"k"o ,as e6plicitly recogni=ed *1A Fe!r"ary #&'@+: all shipments of 3erman ,ar materials to China *,hich reached a al"e of almost @' million marks in #&'2+ ,ere ended% and in-completed contracts totaling 1@1 million marks ,ere canceled: the Japanese claim that their attack on Cationalist China ,as really an anti-Comm"nist action% altho"gh recogni=ed as a fra"d in 0erlin% ,as tacitly accepted: and the earlier 3erman efforts to mediate peace !et,een China and Japan ceased. 8n spite of these concessions% Japan contin"ed its efforts to c"rtail 3erman economic enterprises in China% along ,ith those of other ;estern nations. The alienation of these t,o aggressor co"ntries !y the s"mmer of #&'& can !e 9"dged !y the fact that the Ca=i-.o iet Conaggression Pact of A"g"st #&'& ,as made in flagrant iolation of the 3ermanJapanese Anti-Comintern Agreement of Co em!er #&'/% since this latter doc"ment !o"nd the signers to make no political agreements ,ith the .o iet -nion ,itho"t the pre io"s consent of the other signatory state. This ,as regarded in Tokyo as s"ch a !lo, to the prestige of the Japanese go ernment that the prime minister resigned.G I Tragedy and Hope !y Carroll J"igley% p. 2'?-2'$ <8n the meantime the American go ernment !egan to tighten the economic pincers on Japan 9"st as Japan ,as seeking to tighten its military pincers on China. 8n the co"rse of #&'& Japan ,as a!le to close all the ro"tes from the o"tside into China e6cept thro"gh 4ong Qong% across French 8ndochina% and along the rocky and "nde eloped ro"te from 0"rma to Ch"ngking. The American go ernment retaliated ,ith economic ,arfare. 8n J"ne #&'@ it esta!lished a <moral em!argoG on the shipment of aircraft or their parts and !om!s to Japan !y simply reF"esting American citi=ens to ref"se to sell these articles. >arly in #&'& large American and 0ritish loans to China so"ght to strengthen that co"ntryEs collapsing financial system. 8n .eptem!er #&'& ;ashington ga e the necessary si6-month notice to cancel the #&## commercial treaty ,ith Japan: this opened the door to all kinds of economic press"re against Japan. At the same time% the <moral em!argoG ,as e6tended to ele en named ra, materials ,hich ,ere ital to JapanBs ,ar machine. 8n Decem!er this em!argo ,as e6tended to co er light metals and all machinery or plans for making a iation gasoline. 8n general% there ,as considera!le press"re in the -nited .tates% !oth inside the administration and else,here% to increase American economic sanctions against Japan. ."ch a policy ,as opposed !y the isolationists in the co"ntry% !y o"r diplomatic agents in Tokyo% and !y o"r F"asi-allies% 0ritain% France% and the Cetherlands. These di erse opinions agreed that economic sanctions co"ld !e enforced% in the long r"n% only !y ,ar. To p"t it !l"ntly% if Japan co"ld not get petrole"m% !a"6ite% r"!!er% and tin !y trade% it co"ld !e pre ented from sei=ing areas prod"cing these prod"cts only !y force. To a oid this o! io"s inference% Cordell 4"ll so"ght to make AmericaEs economic policy am!ig"o"s so that Japan might !e deterred from e il actions !y fear of sanctions not yet imposed and ,on to conciliatory actions !y hopes of concessions not yet granted. ."ch a policy ,as a mistake% !"t it o!tained President Roose eltEs e6plicit appro al in Decem!er #&'&. 8t ,as a mistake% since it paraly=ed the less aggressi e elements in Japanese affairs% allo,ing the more aggressi e elements to take control% !eca"se the "ncertainty it engendered !ecame so "n!eara!le to many% e en of the less aggressi e% that any drastic action seeking to end the strain !ecame ,elcome: there ,as no real faith in AmericaEs intentions% ,ith the res"lt that the period of s"stained "ncertainty came to !e interpreted in Japan as a period of American rearmament preliminary to an attack on Japan% and the am!ig"ity of American commercial policy to,ard Japan ,as% o er the months of #&?A-#&?#% slo,ly resol ed in the direction of increasing economic sanctions. There ,as a steady increase in AmericaBs economic press"re on Japan !y e6tensions of the <moral em!argo%G !y the gro,th of financial o!stacles% and !y increasing p"rchasing diffic"lties% pres"ma!ly !ased on AmericaEs rearmament program. Japan contin"ed to ad ance in China ,ith !r"sF"e disregard of ;estern interests% citi=ens% or property. 0y the end of #&'&% Japan controlled all the chief cities% ri er alleys% and railroad lines of eastern China% !"t faced constant g"errilla opposition in r"ral areas and had no control o er the deep interior of China% ,hich remained loyal to Chiang Qai-shekEs go ernment in far-off Ch"ngking on the -pper Dangt=e in so"th,estern China. 8n March #&?A the Japanese set "p a p"ppet Chinese go ernment at Canking% !"t the reality of its po,er decei ed no one. 8n the ,inter of #&'&-#&?A% Japan !egan to make igoro"s commercial demands on the Cetherlands >ast 8ndies. These demands% chiefly concerned ,ith petrole"m and !a"6ite% ,ere increased after the 3erman ictories in France and the (o, Co"ntries.G I Tragedy and Hope !y Carroll J"igley% p. 2'$-2'/

<From these ictories and from 4"llEs doctrinaire ref"sal to enco"rage any Japanese hope that they co"ld ,in ,orth,hile American concessions from a more moderate policy% the ad ocates of e6tremism in Japan gained infl"ence. A Japanese demand ,as made on France% follo,ing the latterBs defeat !y 3ermany% to allo, Japanese troops to enter northern 8ndochina% in order to c"t off s"pplies going to China. This ,as conceded at once !y the Hichy go ernment. At the same time *J"ne #&?A+% 0ritain recei ed a demand to ,ithdra, its troops from .hanghai and close the 0"rma Road to Chinese imports. ;hen 4"ll ref"sed to cooperate ,ith 0ritain% either in forcing Japan to desist or in any policy aiming to ,in !etter Japanese !eha ior !y concessions% 0ritain ,ithdre, from .hanghai and closed the 0"rma Road for three months. J"st at that moment a po,erf"l ne, ,eapon against Japan ,as added to the American arsenal% !y an amendment to the Cational Defense Act gi ing the President a"thority to em!argo the e6port of s"pplies ,hich he 9"dged to !e necessary to the defense of the -nited .tates. The first presidential order "nder this ne, a"thority reF"ired licenses for many goods ,hich Japan needed% incl"ding al"min"m% airplane parts% all arms or m"nitions% optical s"pplies% and ario"s <strategicG materials% !"t left petrole"m and scrap iron "nhindered. As France ,as falling in J"ne #&?A% Roose elt% for reasons of domestic policy% added to his Ca!inet t,o leaders of the Rep"!lican Party% 4enry (. .timson and Frank C. Qno6: !oth of these ,ere inter entionists in !ehalf of 0ritain% ,hile .timson% for years% had !een demanding economic sanctions against Japan% ass"ring the more ca"tio"s of his a"dience that s"ch a policy ,o"ld !ring a!o"t a Japanese retreat rather than any ,ar. The error in this point of ie, ,as clearly re ealed at Pearl 4ar!or in Decem!er #&?#% !"t the e6act nat"re of the error is not al,ays recogni=ed.G I Tragedy and Hope !y Carroll J"igley% p. 2'/-2'2 <0y the !eginning of #&?#% the Japanese attack on China had !ogged do,n and ,as in s"ch imminent danger of collapse that something drastic had to !e done. 0"t there ,as no agreement ,ithin Japan as to ,hat direction s"ch drastic action sho"ld take. A timid ma9ority e6isted% e en ,ithin the Japanese go ernment itself% ,hich ,o"ld ha e !een ,illing to ,ithdra, from the Chinese <incidentG if this co"ld ha e !een done ,itho"t too great <loss of face.G 5n the ,hole% this gro"p ,as timid and ineffect"al !eca"se of the danger of assassination !y the e6treme militarists and hyper-nationalist gro"ps ,ithin Japan. Moreo er% it ,as impossi!le to reach any agreement ,ith the Chinese Cationalist go ernment ,hich ,o"ld allo, Japan to retain its <faceG !y co ering a real ,ithdra,al from China ,ith an apparent diplomatic tri"mph of some sort. The ad ocates of an aggressi e policy in Japan ,ere di ided among the insignificant gro"p ,ho still !elie ed that an all-o"t assa"lt on China co"ld !e !ro"ght to a s"ccessf"l concl"sion and the more infl"ential gro"ps ,ho ,o"ld ha e so"ght to redeem the stalemate in China !y shifting the offensi e against either .o iet .i!eria or the rich Anglo-D"tch possessions of Malaysia and 8ndonesia. 8n the long r"n% the gro"p ,hich ad ocated a dri e to the so"th ,as !o"nd to pre ail% !eca"se Malaysia and 8ndonesia ,ere o! io"sly ,eak and rich% ,hile .o iet .i!eria lacked those items *s"ch as petrole"m% r"!!er% or tin+ ,hich Japan most "rgently needed% and it had demonstrated its po,er in the !attles of #&'@-#&'&. 3ermany% ,hich originally enco"raged the Japanese to mo e so"th,ard against 0ritish Malaysia and then% ,hen it ,as too late% so"ght to redirect the Japanese !lo, against .i!eria% played an insignificant role in JapanEs policy. The decision to mo e so"th,ard% ,here the defense ,as ,eaker and the pri=es so m"ch greater% ,as made in an am!ig"o"s and halfhearted ,ay in the s"mmer of #&?#. The critical t"rning point ,as pro!a!ly d"ring the last ,eek in J"ly. D"ring the si6-,eek period% March #1-April 11% Mats"oka% the fireeating foreign minister% ,as a!sent from Tokyo on a isit to 0erlin and to Mosco,. 8n the 3erman capital he ,as ad ised to make no political agreements ,ith the .o iet -nion% !eca"se of the imminent approach of ,ar !et,een that co"ntry and 3ermany. Mats"oka at once ,ent to Mosco,% ,here he signed a .o iet-Japanese Ce"trality Pact on April #'% #&?#. 8n the meantime% in March% Japanese diplomats ,on special economic concessions in .iam% ,hile in J"ne the nine-month-old trade disc"ssions ,ith the Cetherlands >ast 8ndies !roke do,n ,itho"t Cippon o!taining any of the concessions it desired. These agreements% if o!tained% might ha e p"t Japan in a position ,here it co"ld ha e ,ithstood a total American petrole"m em!argo. Fail"re to o!tain these meant that JapanEs large oil reser es ,o"ld contin"e to decrease to the point ,here Japan ,o"ld !e militarily helpless from total lack of oil. America co"ld accelerate this process either !y c"rtailing the s"pply of oil or !y forcing Japan into actions ,hich ,o"ld increase the rate of its cons"mption. Japanese oil prod"ction in #&?# ,as only three million !arrels a year compared to a cons"mption rate of a!o"t '1 million !arrels a year. Reser es% ,hich had !een $$ million !arrels in Decem!er #&'&% ,ere !elo, $A million in .eptem!er #&?#% and fell to a!o"t ?' million !y Pearl 4ar!or. 5n J"ly 1#% #&?#% JapanBs threats ,on from Hichy France the right to mo e troops into so"thern 8ndochina. This ,as a threat to 0ritish Malaya rather than to the 0"rma Road in China. ;ithin a ,eek% on J"ly 1/% #&?#% the -nited .tates fro=e all Japanese financial assets in the -nited .tates% irt"ally ending trade !et,een the t,o co"ntries. The mem!ers of the 0ritish Common,ealth iss"ed similar orders% ,hile the Cetherlands 8ndies esta!lished special licenses for all e6ports to Japan. Co licenses ,ere iss"ed for ital commodities like oil or !a"6ite. 8n the same ,eek% an American military mission ,ent to China% and the Philippine Army ,as incorporated into the American Army. As a res"lt of these press"res% Japan fo"nd itself in a position ,here its oil reser es ,o"ld !e e6ha"sted in t,o years% its al"min"m reser es in se en months. The chief of the 3eneral .taff of the Japanese Ca y told the emperor that if Japan resorted to a ,ar to !reak this !lockade it ,o"ld !e ery do"!tf"l that it co"ld ,in. The president of the Japanese Planning 0oard confirmed this gloomy opinion. The armed forces insisted that Japan had a choice !et,een a slo, decline to e6tinction "nder economic press"re or ,ar ,hich might allo, it to !reak o"t of its predicament. The na y had little hope of ictory in s"ch a ,ar% !"t agreed ,ith this analysis. 8t ,as also agreed that ,ar% if it came% m"st !egin !efore the middle of Decem!er% ,hen ,eather conditions ,o"ld !ecome too ad erse to permit amphi!io"s !elligerent operations: it ,as clear that economic press"re ,as too damaging to allo, Japan to postpone s"ch operations "ntil the res"mption of good ,eather in #&?1. Accordingly% the decision ,as made to make ,ar in #&?#% !"t to contin"e negotiations ,ith the -nited .tates "ntil late 5cto!er. 8f an agreement co"ld !e reached !y that date% the preparations for ,ar co"ld !e s"spended: other,ise the negotiations ,o"ld !e ended and the ad ance to open ,ar contin"ed. Mats"oka% the foreign minister% ,ho ,as opposed to contin"ing the negotiations ,ith the -nited .tates% ,as dropped from the Ca!inet on J"ly #/th: from that date on% the ci ilian portion of the Ca!inet desperately so"ght to reach an agreement in ;ashington% ,hile the military portion calmly prepared for ,ar.G

I Tragedy and Hope !y Carroll J"igley% p. 2'2-2'& <8n the co"rse of #&?#% JapanBs preparations for ,ar ,ere grad"ally e6panded from a pro9ect to close the so"thern ro"tes into China !y an attack on Malaya% to an attack on the -nited .tates. The decision to close the 0"rma Road !y force meant that Japan m"st mo e into French 8ndochina and .iam% and cross 0ritish Malaya% after ne"trali=ing the 0ritish na al !ase at .ingapore. ."ch a mo ement had n"mero"s disad antages. 8t ,o"ld mean ,ar ,ith 0ritain: it ,o"ld lea e the Japanese lines of comm"nication so"th,ard open to a flank attack from American !ases in the Philippines: it ,as do"!tf"l if China co"ld !e defeated e en ,hen all ;estern s"pplies ,ere c"t off *after all% these s"pplies ,ere so insignificant that in #&?A American arms and m"nitions to China ,ere ,orth only N& million+: e en a total defeat of China ,o"ld lea e JapanEs material shortages ac"te% especially in respect to the greatest material need% petrole"m prod"cts. 8n ie, of these disad antages% "nder ,hich Japan ,o"ld e6pend so m"ch to gain so little% it seemed to many Japanese leaders that ery considera!le gains co"ld he o!tained ,ith only a slight additional effort if an attack on the rich Cetherlands 8ndies ,ere com!ined ,ith the attack on Malaya and the 0"rma Road. ."ch an ad ance to the tin and !a"6ite of Malaya and to the oil of the D"tch 8ndies had e ery ad antage o er any alternati e possi!ility% s"ch as an attack on eastern .i!eria% especially as the Japanese Army *!"t not the Ca y+ had a higher opinion of .o iet po,er than they had of Anglo-American strength. 4a ing gi en the attack on Malaya and 8ndonesia the preference o er any possi!le attack on .i!eria% the Japanese leaders accepted the fact that this ,o"ld mean ,ar ,ith 0ritain and the -nited .tates. 8n this they ,ere pro!a!ly not ,rong% altho"gh some Americans ha e claimed that America ,o"ld not ha e gone to ,ar if Japan had passed !y the Philippines and left other American territories "nto"ched on its road to the so"th. 8t is certainly tr"e that s"ch actions ,o"ld ha e to"ched off a iolent contro ersy ,ithin the -nited .tates !et,een the isolationists and the inter entionists% !"t it seems almost certain that the policies of the Roose elt Administration ,o"ld ha e !een carried o"t% and these policies incl"ded plans for ,ar against JapanBs so"thern mo ement e en if American areas ,ere not attacked. 8n any case% 9"dging American reactions in terms of their o,n% the Japanese decided that an American flank attack from an "nto"ched Philippines on their e6tended comm"nications to the so"th,ard ,o"ld !e too great a risk to r"n: accordingly% an attack on the Philippines to pre ent this ,as incl"ded in the Japanese plans for their so"thern mo ement. This decision led at once to the ne6t step% the pro9ect to attack the American fleet at Pearl 4ar!or on the gro"nds that an ine ita!le ,ar ,ith the -nited .tates co"ld !e commenced most effecti ely ,ith a s"rprise attack on the American Ca y rather than !y ,aiting for an intact American fleet to come to seek o"t the Japanese in their =ones of acti e operations in the so"th,estern Pacific. 8t m"st !e recogni=ed that one of the chief factors impelling the Japanese to make the attack on Pearl 4ar!or ,as that fe, Japanese *and these mostly in the army+ had any hope that Japan co"ld defeat the -nited .tates in any ,ar carried to a decisi e concl"sion. Rather% it ,as hoped that% !y crippling the American fleet at Pearl 4ar!or% Japan co"ld conF"er s"ch a large area of the so"th,estern Pacific and so"theastern Asia that peace co"ld !e negotiated on fa ora!le terms.G I Tragedy and Hope !y Carroll J"igley% p. 2'&-2?#

Cota!le 8ncidents in 8mperial Japan &eptem!er +I, +,F+: Mu6den ncident May +2, +,F-: May +2 ncident J%ttempted )oup dG$tatK and %ssassination of Prime Minister of *apan Tsuyoshi nu6ai March -D, +,FF: *apan /ithdra/s from the Lea#ue of (ations Fe!ruary -4, +,F4: -L-4 ncident J%ttempted )oup dG$tatK and %ssassination of Finance Minister Kore6iyo Ta6ahashi *uly D, +,FD: Marco Polo 5rid#e ncident Jnear Pe6in#K A"g"st #'% #&'2 I Co em!er 1/% #&'2) 0attle of .hanghai & Decem!er #&'2 I '# Jan"ary #&'@) 0attle of Canking ## May I #/ .eptem!er #&'&) 0attle of Comonhan *.o ietIJapanese 0order ;ars+ .eptem!er 11-1/% #&?A) 8n asion of French 8ndochina &eptem!er -D, +,.C: &i#nin# of the Tripartite Pact in 5erlin %pril +F, +,.+: &o:ietM*apanese (eutrality Pact is si#ned in Mosco/ 5cto!er #2% #&?#) 3eneral 4ideki To9o is appointed Prime Minister of Japan Decem!er I, +,.+ J*apan timeK: Pearl ?ar!or @ Decem!er #&?# I @ May #&?1) 0attle of the Philippines @I1$ Decem!er #&?#) 0attle of 4ong Qong @I#$ Fe!r"ary #&?1) 0attle of .ingapore 1@ Fe!r"ary - #1 March #&?1) 0attle of Ja a *D"tch >ast 8ndies+ Jan"ary-May #&?1) Japanese ConF"est of 0"rma *une .3D, +,.-: 5attle of Mid/ay 2 A"g"st #&?1 I & Fe!r"ary #&?') 0attle of 3"adalcanal %pril +I, +,.F: %ssassination of %dmiral soro6u Aamamoto #$ J"ne I & J"ly #&??) 0attle of .aipan J"ly 1# I A"g"st #A% #&??) .econd 0attle of 3"am *uly --, +,..: General ?ide6i To=o resi#ns as Prime Minister of *apan 1A 5cto!er I '# Decem!er #&??) 0attle of (eyte *Philippines+ Fe!r"ary ' I March '% #&?$) (i!eration of Manila *Philippines+ #& Fe!r"ary I 1/ March #&?$) 0attle of 8,o Jima # April I 1# J"ne #&?$) 0attle of 5kina,a A"g"st &-1A% #&?$) .o iet 8n asion of Manch"ria and Q"rile 8slands

A"g"st #$% #&?$ *Japan time+) -nconditional ."rrender

A map of the Japanese >mpire circa Decem!er 2% #&?#

6"e Rise of Fascism in t"e :in% om of 2taly

0enito M"ssolini *front ro,% center% dressed in a s"it+ leads a gro"p of militia% politicos% and 0lack .hirts in Rome% 8taly on 5cto!er 1@% #&11 d"ring his March on Rome% signifying the !irth of fascism. *Photo) Time7(ife+

(eft) 0enito M"ssolini and his Fascist !lackshirts march together d"ring the March on Rome in #&11. Right) The flag of the Fascist Cational Party *Partito Ca=ionale Fascista+ in 8taly.

0enito M"ssolini meets ,ith his Fascist 0lack .hirts *incl"ding his s"pporters >milio De 0ono% 8talo 0al!o% and Cesare Maria De Hecchi+ d"ring the March on Rome on 5cto!er 1@% #&11. 0enito M"ssolini ,as appointed Prime Minister of 8taly !y Qing Hictor >mman"el 888 of 8taly three days later *5cto!er '#+.

The platform of Fasci -taliani di /ombattimento% p"!lished on J"ne /% #&#&.

0enito M"ssolini marches ,ith Fascists soon after his 5cto!er 1@% #&11 <March on RomeG. *Photo) R. Car!one -- co"rtesy (B8ll"stration+

NaAi Germany@s Fiel .ars"al 4ermann Goerin% (left) smiles as 2taly@s fascist ictator Benito .#ssolini s"akes "an s wit" Great Britain@s Prime .inister Neville +"am$erlain in .#nic", Germany on *e!tem$er (7, &'(< as lea ers from 2taly, Germany, >n%lan , an France %at"er after t"e si%nin% of t"e .#nic" /%reement w"ic" allowe NaAi German anneLation of t"e *# etenlan (+Aec"oslovakia). (4#lton=De#tsc" +ollection1+,RB2*)

0enito M"ssolini is greeted !y Qing Hictor >mman"el 888 in Rome% 8taly. *Photo) Fototeca .torica Ca=ionale+

3.*. *ecretary of *tate 4enry L. *timson (left) visits Benito .#ssolini, t"e ictator of Fascist 2taly, in Rome in &'(&. 4enry *timson was a mem$er of t"e +o#ncil on Forei%n Relations an a mem$er of *k#ll 5 Bones.

3.*. Presi ent Franklin D. Roosevelt (seate , center) a!!ears in a conference wit" 3.*. *ecretary of *tate +or ell 4#ll (seate , left), an Fascist 2taly@s Finance .inister G#i o -#n% (seate , ri%"t) at t"e W"ite 4o#se on .ay (, &'((. (3n erwoo 5 3n erwoo 1+,RB2*)

*ecretary of *tate 4enry L. *timson (ri%"t) a!!ears wit" Presi ent 4er$ert 4oover (left) an Fascist 2taly@s Forei%n .inister Dino Gran i. (*o#rce0 Turmoil and Tradition: A tudy of t"e Life and Times of .enry L. timson $y >ltin% >. .orison)

Left to ri%"t0 Forei%n .inister Pierre Laval of France, Prime .inister Benito .#ssolini of 2taly, an Prime .inister Ramsay .acDonal of Great Britain a!!ear at t"e *tresa +onference in *tresa, 2taly on /!ril )(, &'(?, w"ere t"e t"ree nations offere a #nite front a%ainst German intransi%ence on t"e 6reaty of 9ersailles. 2taly inva e >t"io!ia (formerly /$yssinia) #rin% t"e *econ 2talo=/$yssinian War (,cto$er &'(? P .ay &'(H). (M Bettmann1+,RB2*)

A photo of dead >thiopian troops d"ring the 8talian in asion of >thiopia in #&'$-#&'/.

8talian troops ad ance on Addis A!a!a% the >thiopian capital% in #&'/.

>thiopian >mperor 4aile .elassie on J"ne 'A% #&'/ at the (eag"e of Cations% detailing the co"rse of the ,ar *at that point lost+ and calling for 9"stice.

>thiopian troops ret"rn to >thiopia as ;orld ;ar 88 !reaks o"t.

Left to ri%"t0 Britis" Prime .inister Neville +"am$erlain, Frenc" Prime .inister > o#ar Dala ier, / olf 4itler, NaAi German Forei%n .inister -oac"im von Ri$$entro! (rear), Benito .#ssolini, an 2talian Forei%n .inister GaleaAAo +iano a!!ear at t"e .#nic" +onference in *e!tem$er &'(< s"ortly $efore t"e si%nin% of t"e .#nic" C/!!easementD /%reement.

2taly@s Prime .inister an ictator Benito .#ssolini stan s $etween Forei%n .inister of 2taly +o#nt GaleaAAo +iano an Britis" Prime .inister Neville +"am$erlain, ri%"t, at t"e 6ermini railway station in Rome, 2taly on -an#ary &B, &'('. (/P P"oto)

2taly@s Prime .inister an ictator Benito .#ssolini (left) a!!ears wit" Britis" Prime .inister Neville +"am$erlain (ri%"t) an 2taly@s Forei%n .inister +o#nt GaleaAAo +iano, .#ssoliniQs son=in=law, at a rece!tion %iven for .r. +"am$erlain at t"e Palace 9eneAia in 2taly in -an#ary &'('. +o#nt GaleaAAo +iano, w"o serve as Forei%n .inister of 2taly from &'(H to &'B(, was kille via t"e firin% sR#a on -an#ary &&, &'BB after "e alle%e ly $etraye "is fat"er=in=law Benito .#ssolini $y votin% in favor of removin% .#ssolini from !ower #rin% a Fascist Gran +o#ncil meetin% "el in Rome on t"e ni%"t of -#ly )B, &'B(. .#ssolini was remove from !ower $y :in% 9ictor >mman#el 222 of 2taly t"e very neLt ay an was !lace #n er arrest $y t"e :in%. (P"oto $y 6o!ical Press /%ency1Getty 2ma%es)