Milford chronicle., 1947-09-19
INVASION MONEY
AZ ALEXANDER b GEORGE


Observation-Disclosures money
uaed In World War II by the Allies
meant q lot Of different things TO
many people. It helped smooth the
nafhs OF invasion for Allied mill
larv authorities. It brought small
fortunes to many GIs who sold
watches, cigarettes, candy and SOAP
Tor big patches Of invasion currency
whicn they converted into dollars.
Ii enabled Russian soldiers te go on
watch-buying sprees.
1t set senators on the trail of
multimillion bookkeeping losses
by the United States government.
1t caused taxpayers to worry about
having to pay for those losses"
A question still frequently asked
about invasion money is: What
will it cost American taxpayers to
redeem it2"
Mot one nickel" is the answer
Of Treasury and War Department
oflcials.
Not u. 9. Currency
These officials say invasion cur
raney is not United States cur
rency and this government has no
0blEaaEfon to redeem it. Upon issue,
It Immediately became part OF the
currency OF the country in which It
was issued The eventual German
government, for example, will be
responsible for redemption OF
Allied military marks issued IN
Germany.
Army finance Offices did convert
some SSs0,00O, 900 in invasion cur
rencies into dollars in excess Of
funds appropriated by Congress
But Assistant Secretary Of Wal
Howard C. Peterson says it viii
NOT cost the taxpayers anything
because the $380,000,000 is being
used in lieu of dollars for supplies
services and other items in Ger
many; Japan and other invaded
countries.
Peterson has told Congress th'
"l0ssr will be liqnidated by the en'
of 194s. The great bulk OF it
some s250,000,000 worth--was Il
military marks dishursed in Ger
many. Most of the deficit resulte'
from black market operations i
which American soldiers trade
watches, cigarettes and other wal
scarce goods for invasion currenc
at Inflated prices.
Sales to Russians
Many of the CT sales were to Rus
sian troops who were well supple
with invasion marks. The Russian
used American plates to print Gel
man invasion money Henry MOI
genthau, Jr., then secretary of tn
treasury, turned over the plates
the Russians In Washington in tn
spring Of 1914.
His action resulted, treasury o
ficials say, from a joint British
American decision after the Ru:
slams had refused all offers
printed currency instead of II
plates. Soviet 0fFlcials had threa
ened to upset plans for joint All
ed currency by printing separal
Russian issue.
In. September 1916 the America
military in Germany substitute
military payment certificates" 4
invasion marks to stop the CT pra
fice Of accommodating large amour
of invasion marks at bargain rat
and turning them into dollar
thereafter the holders of Alli'
80 military marks could use them on
for the purchase of German gooC
No Check on Reds
The Russians informed Amerie'
military government officials
Germany that they stopped issuil
Joint allied inVasiOn money op Ju
i. 1946. United States Army ofacis
said. however, they had no way
check on this.
Some congressman contend
this summer that the Russians st
were putting out invasion marks
the hasketfnl. Senator Bridges q
N. HI charged the Soviet WI
"legalized looting of Germany WI
printing press money"
When the Americans and Britt
Invaded German territory in 19
they started circulating allied mi
tary marks at par with Reicl
marks. No general rate of exchar
between the Reichsmark and I
dollar was established. Howev
for computing the pay of troops
provisional basis of 10 marks
the dollar was used
Italy Gets Credits
Military lire were used in Tt
under similar conditions Ho
ever, President Roosevelt direct
in 1914 that the Italian govel
ment receive dollar credits c.
ering the extent to which invasl
currency in lire denominations
been used In Italy for the pay
troops.
Later dollar credits were authc
zed to cover invasion currency Vi