Evening star., 1941-06-16
Bund's Funds Frozen
By Roosevelt Order,
Treasury Aide Holds
Credits of All Similar
Fascist Groups Affected
In Opinion of PehIe
By the Associated Press.

John w. Pehle, in charge of
frozen foreign funds in the United
States, said today. i assume the
funds of the German American
Bund and similar Fascist organiza-
tions are frozen by President Roose-
velts order restricting Axis funds"
Mr.. Pehle, an assistant to the
Secretary of the Treasury, and Ed
ward H. Foley. jr., Treasury general
counsel, told reporters today 1T is
the duty of every individual bank
or financial institution in the
country to decide, if possible. for
themselves which American funds
were frozen by the order of Presi-
dent Roosevelt issued last Satur-
day.
1T seems fairly clear that the
Bund falls into one of the groups
mentioned in President Roosevelt's
order" Mr.. Pehle said, and we can
assume the banks have already
frozen those funds"
Views on Red Funds Given.
Technically, he added. the same
treatment should have been given
to funds of Communists in this
country, but the eventual status OF
Communist money may be decided
by a general license the President
promised for Russia.
While the Presidents order COW
cred ali of continental Europe, he
expressed the intention of issuing
general licenses eXempting Russia,
Finland, Portugal, Spain, Sweden
and Switzerland, conditional upon
the receipt of adequate assurances
from the governments Cf such coun-
tries" that the licenses would not be
used to "evade the purposes of the
order"
The Vatican State became, n ef-
feet, the first European sovereignty
to be exempted, when general IL
cense was issued today to the
Roman Curia of the Vatican City
State" The Roman Curia was iden-
titled as financial representative of
the Vatican. General licenses also
were issued to three Swiss and cne
Italian corporation in this country
permitting them to open for busi-
ness but not to ship money out of
the country.
Resident Aliens Exempted.
Another general license issued to-
day exempted the bulk of the resi-
dent aliens in the United States
from the freezing order. Residents
Of European countries who have
lived here continuously since June
II, 1910 (date of French surrender. =.
we're given blanket exemptions, with
the proviso that they are rot en-
gagged in suhversive activities.
In the case of European nationals
who have come here since June II,
1910, their funds were frozen. but
an old Treasury order permits them
to draw UP to $500 month for liv-
ing expenses. and more upon special
application to the Treasury. A gen.
eral license also was issued authoriz-
ing European-ow businesses in
this country to meet all payrolls up
to July Is, provided the payroll does
not exceed the average for the last
six months.
Mr.. Foley explained that I'VE ex-
pect the banks to use their own good
judgment in determining which &C
counts have been restricted, and if
they have any doubts, they should,
of course, ask us for guidance"
Licenses Given on Checks.
General licenses also were issued
by the Treasury authorizing pay
ment of checks drawn before the
Presidents order and authorizing
completion of security transactions
initiated before the order However,
in the case of securities transactions
the proceeds of the sale of securities
or new securities purchased will not
be permitted to leave She country
without special permission
The Swiss companies given Ii
censes were the Swiss American
Corp. of New York, and the New
York Offices of Credit Suisse and
Swiss Bank Corp. The Italian firm
was the Banco di Napoli Trust Co.
of New York and Chicago