800.515/988

The Secretary of the Treasury ( Morgenthau ) to Admiral William D. Leahy, Chief of Staff to the Commander in Chief of the Army and Navy 76

Dear Admiral Leahy: The Treasury Department, at the present time, is engaged in the printing of an Allied Mark Currency for use by the Allied Forces in Germany. Some time ago, the designs for this currency were approved by the American, British and Russian Governments. In the discussions concerning this currency in Moscow, the officials of the Soviet Commissariat of Finance stated their desire to have duplicate sets of the plates made available to them, in order that they may guarantee the printing of sufficient marks for the needs of the Red Army. The attitude of the Russians is set forth in an attached cable, under date of February 15, 1944, from Ambassador Harriman.77

I have had several conversations with the Soviet Ambassador78 concerning this matter. The difficulties in acceding to the Russian request are set forth in the attached memorandum,79 a copy of which has been made available to the Soviet Ambassador. In spite of the difficulties in meeting this request, the Soviets are very insistent in their desire to obtain duplicate plates and specimen models of the paper and inks that we are using in the production of this A. M. Mark Currency.

The chief difficulty in acceding to the Russian request arises out of the fact that to meet the demands of the War Department for the A. M. Mark Currency within the time limits we have been given, it has been necessary for the Treasury to secure the services of an outside, privately-owned printing plant, the Forbes Lithograph Manufacturing Company, Boston. The Forbes Company advises us that if the plates or duplicates thereof are taken out of its possession for any purpose whatsoever, it will have to request the Treasury to relieve it of its contract and all liability and accountability under its bond. This would necessitate the completion of the order by the Bureau of Engraving and Printing and there would ensue a delay of six to eight months for reasons set forth in the attached memorandum.

Under date of March 7, General Eisenhower80 advised the U.S. War Department that he desired assurances that 40–45 percent of the [Page 831] initial order for 10 billion A. M. marks would be completed by April 15, 1944. It would not be possible to obtain this objective if the printing of the currency were taken over by the Bureau of Engraving and Printing. It would therefore be appreciated if you would place this matter before the Combined Chiefs of Staff and advise me promptly whether, in their opinion, the military situation could afford such a delay as would be involved in the event that duplicate plates were made available to the Government of the U.S.S.R.

I have advised the Russian Ambassador that I have put this question up to the Combined Chiefs of Staff and that he will be informed as soon as a reply is forthcoming from that body.

Very truly yours,

H. Morgenthau, Jr.
  1. Copy transmitted to the Department by the Secretary of the Treasury on the same date.
  2. Telegram 509, p. 828.
  3. Andrey Andreyevich Gromyko.
  4. Not printed.
  5. Gen. Dwight D. Eisenhower, Supreme Commander of the Allied Expeditionary Force in Western Europe.