The Waterbury Democrat., 1940-11-22

The matter has been under con- fidential consideration for some time, but it came to head the other day when $2,000,000 in U. S. currency was seized in the Italian diplomatic pouch enroute to Mexico. Obviously the cash was for propaganda and subversive &C., tivities on the doorstep of the United States.
 The money, although seized, had to be returned to the Italian Legation in Mexico. There was no legal way of preventing its use for propaganda.
 If all Italian and German funds were frozen in the United States, then every cent spent by the Italian and German ein- baSsies and their cOnsulates would be subject to scrutiny by the U. s. Government. In other words, the two Axis powers could not draw from their funds held here, until they showed their books and told what the money was being spent for. This is virtually what the French Elm bassy has to do today.
 This would help tremendously in curtailing expenditures for sabotage.
 Another reason put forward by the Treasury for freezing Axis funds in Germany and Italy al- ready are frozen, in effect, be- cause of currency controls which prevent the transfer of money out of those two countries.
 Dutch, Norwegian, Belgian, French, Danish and Baltic funds have been frozen largely for their own protection. But the Axis powers would consider such action an ignominious effort, and the State Department fears it might lead to a break in diplomatic re-N lationS.
 The State Department is not concerned so much over such 8 break with Germany as with Italy. It believes that sentiment inside Italy is becoming more friendly to the United States and leaning away from Hitler, change which U. s. diplomacy seeks to encourage.
 However, the Treasury pointed to the increasing number of muni- tions factories where explosives have mysteriously occurred, and urged the importance of stopping the expenditure of Axis money for subversive activities. Increas- ing evidence of sabotage in these explosions finally decided Presi- dent Roosevelt, and he intervened. POTOMAC CRUISE
 For people who weren't tired at the outset, the Presidents last trip down the river was a dull cruise. But for most of the party, dullness was welcome after the election strain.
 There were five nights on the Potomac, leaving Washington Wednesday evening and not re- turning until Monday morning. For the first three days the weather WdS UdO-VCIy UdN-d1AO IAlC1C was nothing to do but sleep. and read.
 But the President was happy. The Great Uncertainty was over and he browsed over a good de- tective story, daring the author to keep him awake.
 There were maps in the day. time, followed by long hours of sleep at night. And all during the night, the ship kept cruising. Sea- going Roosevelt likes to hear the dull throb of the motors. On him 1t has the effect of a cradle song. DEMOCRATIC TREASURER
 Richard Reynolds, strong Roose- Welt member of the noted North Carolina tobacco family, is slated to become the new treasurer of the Democratic National Commit tee. He will succeed Oliver Quayle, crony of Jim Farley.
 Reynolds is no longer actively connected with the giant tobacco company that bears his name. But this didn't prevent some officials