Evening star., 1941-02-27
Savings Stamp Drive
To Start in Month,
korgenthau Says
Special Treasury Unit
Established to Run
Small Looms Drive
By BLAIR BOLLES.

Inc administrator Qr1Ve 10 en-
list all investors, even those who can
afford only rs cents, in financing
the defense program, will start
within a month, Secretary of the
Treasury Morgenthau told the press
today.
1t is expected the drive will take
the form of offering the public saw
ings stamps, certificates with small
face value, and low-cost bonds. The
baby bond, costing s1S75, is now
the most inexpensive Government
security available
Mr.. Morgenthau said there prob
ably would be 250,000 outlets at
which the savings paper could be
obtained, with post Offices the prin-
cipal ones. One unidentified invest
ment banking group yesterday Of
fered the Treasury its cooperation
in the sales drive, Mr.. Morgenthau
disclosed In commenting that the
Treasury would accept anybody's
services" in helping sell stamps.
Special Unit Set Up.
A special unit of the Treasury
is being established to supervise the
program. Already expert personnel
have been added to the department
for the drive However, Mr.. Nor
genthau said, exact details are still
wanting. He told his press confer
ence he had not yet made an esti-
mate of the sum the administration
would seek by this method during
the coming II months.
BY week from now, the Secre-
tary of the Treasury expects, the
complete picture of the program will
be available. He said he had been
advised the manufacturing of the
savings paper alone would take two
months, but that he himself, in
hurry to get the program launched,
decided it could be done in one. The
first hint that there would be such
program came from Mr.. Morgen-
thau before Christmas.
The Secretary is so eager to put
the Treasury in a position to appeal
for the financial cooperation of
every man, woman and child in the
United States in financing the huge
outlays of the coming II months
S28 900 100000 for defense alone
that, if necessary, he plans to use
money now available to the Treas
ury without waiting for Congress to
appropriate the special 100000 he
has requested to pay for admins
tration of the program up to July l.
The Treasury, he said, could be re-
paid later from the deficiency bill.
Refunding Cared For.
Mr.. Morgenthau today turned his
full attention to the defense-bond
drive after devoting five days almost
entirely to the business of putting
over the Treasury's 81 200 900 900 re-
funding issue, which marked the
first time the Treasury has used its
new powers to issue taxable Federal
bonds.
The refunding offering was almost
evenly divided between notes and
bonds. Notes in the past have been
taxed, and the Secretary said today
that he had included the notes in
this instance as IAN anchor to wind
ward in case something unforeseen
happened" However, he said, I'VE
have got by with the refunding on
a basis which from my standpoint
is satisfactory" He added:
1--WE have obtained excellent CO.
operation from the financial COM
munity."
New taxes will be next on Mr.
Morgenthaus program after the
stamp drive. The tax program will
depend on the amount of revenue
which the March Is income tax
payments indicate will be available
this year.