Evening star. [volume] (Washington, D.C.) 1854-1972, 1953-10-21
Mundt Seeks Proof
Spying Pattern in
Money Plate Deal
Byeihs Associated Press

Senator Mundt, Republican, of
South Dakota said today he
hopes to show by nightfall "a
pattern of espionage" he con-
tends helped Russia get from the
United States Government ma
terialS to print vast sums of war
time German occupation cur
rency.
Calling witnesses for more
public testimony in the Senate
Investigations subcommittee
study of the big money deal,
Senator Mundt told reporters:
We're going to nail that point
down SO no skeptic will doubt it."
Senator Mundt is running the
hearings as acting chairman of
the subcommittee.
Two former Government off,
Gals, Harold CHASER and Frank
Coe, refused at the start of the
public hearings yesterday to tell
whether they were engaged in
espionage" for Soviet Russia
when the money agreement was
made in 1894.
Gave Russians Plates.
The agreement gave the Rus
slams plates and other materials
to print their own supply of
occupation currency for use in
the allied invasion of Germany.
The United States printed the
currency for the other allied
powers.
Two witnesses who said they
had fought the plan to turn over
the plates to Russia testified
they never suspected that spies
might be involved in the nego-
tiationS.
Daniel w. Bell, who was I'm
derSecretary of the Treasury at
the time, and Alvin w. Hall,
veteran director of the Bureau
of Engraving and Printing, both
won praise from Senator Mundt
for having resisted the plan.
Mr.. Bell, now president of the
American Security & Trust Co.
here, said a letter rejecting
Russia'S request for the plates
was written but never sent, and
he finally got orders from the
then Secretary of the Treasury
Henry Morgenthau. ir.. to send
the plates.
White Active in Talks.
Mr.. Bell said Mr.. Coe and Mr..
CHASER might have participated
in the negotiations, but he was
not sure about it. He said Harry
Dexter White, then assistant to
the secretary, was active in the
talks.
Mr.. White, now dead, has been
described by witnesses in con-
greSsional Investigations as hav-
Ing had Communist connections.
Mr.. Bell said he noted that
MIR. White seemed "aloof," as
Senator Mundt phrased it, when
rejection Of the plan was Sug-
geSted but he added, I still say
that even with that it didn't
arouse my suspicion" Nor, he
said, had he been suspicious of
any one else.
Mr. Hall said IT can't say -,
/ suspected any one of any Sabo-
tage or espionage at ALL"
Mr.. Hall and MI. Bell both
said they considered the Govern
ment was running too great a
risk in handing money plates to
another. government-andM Mr..
Hall said he knew of no other
instance Of it in all history.
Claims Gree Ride"
Senator Mundt contends the
Russians printed at least $255
million worth of the occupation
currency, and that this meant
"a free ride" for them, and an
equal loss to the United States
taxpayers. But Howard I. Sacks,
a Defense Department lawyer,
said he finds no evidence that
the Russian-printed currency
ever vas charged to American
taxpayers.
He added, however, you can't
deny the possibility" that the
Russians use of the currency
contributed to imitation and thus
helped to swell the cost of items
for which United States tax
payers had to foot the bill.
Mr.. CHASER and Mr.. Coe re-
fused to answer questions as to
whether they had Communist
ties, pleading that the answers
might tend to incriminate them.