HOW THIS GLOBAL FINANCIAL FIASCO BEGAN
By: V.K. Durham
http://www.theantechamber.net


This is what started this Global Financial Mess..and caused the
U.S. of A. to go off the Gold and Silver Standar bringing in the
Fed. R. Bank Notes ..or fiat money..

The Federal Reserve Banks could not cover the real U.S. DOLLARS
printed by Russia and China off the Gold & Silver Treasury Plates
which were sent out to Russia and China.. during WWII.

My husband who was captured at the Inchon Resivour and taken
prisoner, sent to CHINA became friend with individuals in CHINA..
He married a CHINESE WOMAN, they had a child they named RUDY WU.
The wife was murdered and ultimately Rudy was murdered..

When the United States found herself confronted with outrageous
amounts of U.S. Dollars backed by Gold and Silver from the Treasury


Plates identified in Major Jordan's Diary..

1963. The Federal Reserve began to issue Federal Reserve
Notes..not backed by anything as they could no longer cover those
U.S. Dollars printed by the Russians during WWII, and Flying
Tigers, Clair Chenault during the CHINESE BOXER REBELLION..

President Kennedy issued Executive Orders 11109 and Executive Order

11110.. both involved Executive instructing the U.S. House to call
forth the House Investigating arm of UN-American Activities and
investigate members back to 1947.. which involved THE FEDERAL
RESERVE BANKING, the Keysnians of the Breton Woods Agreement, GATT
and IMF, involving House Members and Un-American Activities.

The President was murdered..and the U.S. Treasury plates..mentioned

by Major Jordan still haunt the Federal Reserve Banking Systems,
Globally.

1971. Russell Herman was called by the WHITE HOUSE to obtain an
invitation for PRESIDENT NIXON TO VISIT with the CHINESE PREMIER,
Chou en Li.. (sic)

1972. President Nixon took the United States off the Gold and
Silver Standard.

President Nixon was going through the throws of "Impeachment"..
over all of this.. involved with the TREASURY PLATES.. of course
that was never brought out to the public at large what was really
going on behind the scenes..

Be that as it may.. Nixon being an Attorney..knew the Laws of
Impeachment. He knew when he was impeached, the Rule of Law
required every Treaty international agreement other than treaties,
every Act of Congress would also be impeached..and no longer be in
Lawful Standing and every one of those Agreements, Treaties
etc..would become NULL AND VOID AND OF NO LAWFUL EFFECT.. This
works the same way as when a Judge is impeached..who was involved
in any Trial and the Defendants went to Prison.. The Impeachment
declared the conviction NULL AND VOID and the prisoners were set
free. Thats the way the American System of Justice is supposed to
work.

In other words..NIXON was getting too close to those involved in
the WHITE HOUSE inquiry relating to Executive Order 11109 of J.F.K.

After WWII a group of men called GLADIOS or "Stay Behinds" came
into existence: OPERATION GLADIO
(snip page 6 of 17 at
http://www.theantechamber.net/ExArchive/OperationGladio.htm )

"Declassified secret service papers reveal that Ted Shackleton,
deputy chief of the CIA station in Rome in the 1970's introduced
the notorious Licio Gelli - head of the neo-fascist P2 masonic
lodge and for years a fugitive in Argentina - to General Alexander
Haig, then Nixon's chief of staff, and later, from 1974 to 79, Nato


Supreme Commander. P2 was aright wing shadow government, ready to
take over Italy, that included four Cabinet Ministers, all three
intelligence chiefs, 48 MPs, 160 military officers, bankers,
industrialists, top diplomats and the Army Chief of Staff. After
meetings between Gelli, Italian military brass and CIA men in the
embassy, Gladio was given renewed blessing - and more money - by
Haig and the then head of the National Security Council, Henry
Kissinger. Just how those and later funds were spent is a key point

in the [Casson] investigation." (William Scobie, Observer,
18/11/90..

CONNECTING THE DOTS with the MODUS OPERANDI of the CIA and current
events going on involving THE WORLD TRADE TOWERS incident on
9/11/01 and this current involvement in the Middle East which
further involves Banking and Depleted Uranium along with
Destruction of SOVEREIGNTIES and INFRA-STRUCTURES by destruction of


borders and even our own Constitution...the WHERE, WHEN, WHAT, WHY
and WHO becomes as evident as the nose on our faces...

Page 7 (http://users.westnet.gr/~cgian/gladio.htm ) in examination
of the SISMI FILES 28/6/90-2/7/90 Brenneke discloses "Four programs

on state television (RAI) allege that the CIA paid Lucio Gelli to
"foment terrorist activities. "In the first program someone
described simply as "Agent Zero" described how [ex-Swedish Prime
Minister Olaf] Plame had been caught in a deal between the CIA and
IRAN to release American hostages in Tehran."

This MO has the appearances of that which is being applied by our
present administration.. In Iraq and the Middle East..and even in
our own United States of America.

Another excellent information site regarding OPERATION GLADIO
"Secret Warfare" can be found at
http://www.isn.ethz.ch/php/collections/coll_gladio.htm ...

Friday it was announced that 70+ or - Television Stations were
being investigated for NOT PROPERLY REPORTING THE NEWS to the
People.. They havn't reported to WE the People since the early
1980's when the CIA bought up all the TV Stations.

My husband worked with Ted Shackley.. He was the Account Holder for


CI-LTD (Central Intelligence Ltd).. They murdered him... see:
http://www.theantechamber.net/V_K_Durham/VkPublicNotice.html
....this is what the associate of Sherman Skolnick was
referencing...in his email.

----- Original Message -----
From: Marco Saba
To: "V.K. Durham"
Sent: Saturday, August 19, 2006 8:28 PM
Subject: Some words about me - Re: Rainbow



Dear VK,
(you can call me Marco, I have seen your photo and I suppose you
are very younger than me - I am 45 year old)

I would like to tell you something about me:
I started to be a whistleblower in 1999, during the war in the
Balkans, denouncing the NATO crazy use of uranium in the weapons
there.

Well, I started before: in 1997 I unveiled a network of stay-behind
officers here in Italy - they were the Italians of the Operation
Gladio. Some of them encountered a death like your husband - mostly
they were 'suicided' like Raul Gardini, Cagliari, etc. etc.

The August 13, 2006, at 8:30 P.M., an Hercules C130 aircraft cargo
(Lockheed Martin) crashed in Piacenza, Italy, killing all abroad.
This C130 was embedded with depleted uranium balance weights, which
(uranium) is used in the US also to make depleted uranium (DU)
kinetic penetrators, i.e. weapons to be used in humanitarian wars.
It was me who adviced the firefighters and other police forces last
week to be aware of the uranium at Piacenza and to use precautions:
they were not aware. Italy and US are ally, but regarding the DU
issue... the Pentagram didn't told us very much about the real
uranium dangers...

In 1999 I knew an Italian operative of the Mossad, Alberto Lanzi,
who used DU weapons back in 1973 (Yom Kippur war). He assured to
me: no danger! He died from cancer in 2004, at 53.

Now the history can go on, the latest sad thing is the death of my
associate Sherman Skolnick from Chicago... (last week another:
Giacinto Auriti, but he was 84)

I don't want to be annoying to you, so I stop here.

But I was able to find documents about Rainbow in 2001, in the
Internet:
those documents are not there anymore. (it was something involving
BIO-RAD and a journalist writing a book entitled Octopus...)

Don't be angry with me for my amateurishly kind of enquiring.

Kind regards,

Marco Saba


--------------------------------------------------------------------

--------------------------------------------------------------------

------------
THE PSYCHOLOGICAL STRATEGY BOARD aka THE OPERATIONS COORDINATION
BOARD aka THE SPEciaL GROUP
http://www.theantechamber.net/V_K_Durham/PresidentialDirectives.htm

THE PSYCHOLOGICAL STRATEGY BOARD aka THE OPERATIONS COORDINATION
BOARD aka THE SPEciaL GROUP
http://www.mega.nu:8080/ampp/roundtable/SPEciaL.html

PRESIDENTIAL DIRECTIVES & EXECUTIVE ORDERS were involved in
http://www.theantechamber.net/V_K_Durham/PresidentialDirectives.htm

I have written about in several articles, to wit:
LEO WANTA IS NOT THE ONLY INDIVIDUAL TRYING TO RESOLVE THE U.S.
DEBT!
Since the exposure of GLADIOS others are sending in web sites that
CONNECT MORE DOTS because they are pissed about this public
disinformation being put out ...
www.theantechamber.net/V_K_Durham/WantaNotTheOnly.htm - 26k -
Cached - Similar pages

VK DURHAM'S RESPONSE TO LEO WANTA
DOPPELGANGERS and GLADIOS, but none can pass the test of SHOWING
SOURCE OF COLLATERAL/FUNDS and/or being authorized by "the Real
McCoy" in such as the ...
www.theantechamber.net/V_K_Durham/ResponseToWanta.htm - 14k -
Cached - Similar pages

All of these men were promised heafty retirements.. My husband held
the Retirement Accounts for these men..
He like many of these men called THE PRESIDENT'S CENTURIONS have
been and are being murdered, as
their Retirements and Insurances are converted over to these
'priviliged ones' who sent them out to serve
their Country as the wives go begging.. and the U.S. Attorney
Generals Office puts out "DO NOT
INVESTIGATE MEMO'S" while the U.S. Secret Service refuses to
investigate because their only duty is:
To protect the President of the United States..

These Presidents and their Ladies have been busy.. very busy.. read
this:
Date: Tue, 19 Dec 2006
MORE 9/11 CANTOR FITZGERALD, GOLDMAN SACHS, FED. R., UST, BUSH ETAL

'FINANCIAL TERRORISM'
http://www.theantechamber.net:80/V_K_Durham/More911FinancialTerror.htm

And the U.S. Deputy Attorney General issues: DO NOT INVESTIGATE?
http://www.theantechamber.net/UsHistDoc/Gorelick/GmPs1.htm

They are not protecting the interest of WE the People..they are
protecting themselves FROM We the People..
I remember what my husband said November 17, 1998 after we brought
him home from the kidnapping episode..[quote]

"When the American People wake up and realize what the federal
government has done to them; I wouldn't want to be the president.
I wouldn't want to be a Congressman or a Senator..not even a Judge
on the Bench, in law enforcement, or a governor not even a local
dog catcher.. Because the People will hunt the son of a bitches
down like the dogs they are, give them a fair trial and hang the
bastards on the Capital Steps.."
I asked my husband: "How can you give someone a fair trial with
the pre-determination of hanging them?"
My husband responded: "TREASON!" [end quote]

This Banking, Financing and Economic Collapse was planned back
years ago when U.S. DOLLAR (SILVER CERTIFICATES & GOLD
CERTIFICATES) PLATES were deliberately sent to Russia in the early
1940's ..see Major Jordans Diaries at
http://www.sweetliberty.org/issues/wars/jordan12.htm .. and took
firm hold On June 20, 1951, under Harry S. Truman's directive
establishing the Psychological Strategy Board, Directed to the
Secretary of State, The Secretary of Defense, The Director of
Central Intelligence
http://www.mega.nu:8080/ampp/roundtable/SPEciaL.html


READ: CHAPTER TWELVE from Major Jordan's Diaries;

Jump to CHAPTER...01 - "Mr. Brown" and the Start of a Diary02 -
The "Bomb Powder" Folders03 - We Move to Montana04 - How My Alaskan


Report Helped the Russians05 - The Black Suitcases06 - Don’t Make a

Big Production07 - The Story of Heavy Water08 - A Look at Lend-
Lease09 - The Greatest Mail-Order Catalogue in History10 - My Visit
to the State Department in 194411 - The Priest Who Confronted
Stalin12 - How Russia Got U.S. Treasury Plates13 - The Broadcast
Goes on Tonight14 - Clouds of Witnesses15 - Conclusion


Back to How Wars Are MADE | Issues index | Sweet Liberty HOME PAGE



From Major Jordan's Diaries

CHAPTER TWELVE

How Russia Got U.S. Treasury Plates

I returned to Great Falls, for the first time as an Army
Officer, on June 13th, since I had just been replaced by Lieutenant


George Walewski Lashinski. I was due to speak in Omaha on the 16th,
and this was my last chance to say good-by to my friends, including
Colonel Kotikov.

On a personal level, I had always been very friendly with the
Colonel; he was one of the most unusual people I had ever known,
and he had many likable traits as a human being. It was only when
politics intervened, or orders came to him from above, that his
attitude and manners became difficult.

During our farewell talk, Colonel Kotikov mentioned the “money
plane” which had crashed in Siberia and had been replaced. I asked
what he meant by “money plane.” The U.S. Treasury, he explained,
was shipping engraving plates and other materials to Russia, so
that they could print the same occupation money for Germans as the
United States was printing.

I was certain he was mistaken. I was quite sure that never in
history had we let money plates go out of the country. How could
there be any control over their use? “You must mean, Colonel,” I
said, “that we have printed German occupation money for Russia and
shipped the currency itself.”

“No, no,” he replied. He insisted that plates, colored inks,
varnish, tint blocks, sample paper – these and similar materials
had gone through Great Falls in May in two shipments of five C-47s
each. The shipments had been arranged on the highest level in
Washington, and the planes had been loaded at the National Airport.

I was still incredulous, but I was impressed enough to pass
these remarks on to Colonel Bernard C. Hahn, the Air Force
Inspector who had come on as a result of my trip to Washington.

Not until 1950 did I learn all the particulars about these
money plates. The full story has never been released to the general


public, and only a few people in Washington seem to know the
details of this Lend-Lease scandal. I see no reason why every
citizen should not know how his public servants handled such a
grave matter in wartime.

The sum of money which we lost in redeeming the marks which
the Russians rolled off their presses, with no accountability
whatever, appears to have been $250,000,000! It was not until
September, 1946, that we put a stop to the siphoning of our
treasury by refusing to redeem further marks. By this time the
plates had been in Russian hands over two years.

At the closed hearing in June 1947 Senator Styles Bridges,
chairman of the Committee on Appropriations, inquired of Assistant
Secretary of War Howard C. Petersen:

“Does Russia still have the plates, so far as you know?”
Mr. Petersen: As far as I know, they still have the plates.

Chairman Bridges: And as far as you know, are they still printing
the currency?

Mr. Petersen: As far as I know, they are still printing the
currency.

Chairman Bridges: And has there been any protest from this
Government endeavoring to stop them?

Mr. Petersen: There have been strenuous efforts from the Allied
Control Council in Berlin to obtain an accounting from the Russians





as to the amount of Allied military marks which they have issued.
Those efforts have been unsuccessful. [1]

Senator Bridges and Mr. Petersen had previously had this exchange:

Chairman Bridges: Was there any action taken by the War Department
to restrict the number of notes issued by the Russians?
Mr. Petersen: The answer of the War Department is “No.”

Chairman Bridges: And as far as you know, was there any action
taken by the State or the Treasury Department to restrict Russia in
the number of notes she would issue?

Mr. Petersen: To my knowledge, none. [2]

Mr. Petersen later stated: “I know when we stopped the use of them
(the Allied marks) in Germany. It was September 1946.”

Here is the exchange between Senator William F. Knowland of
California and Assistant Secretary Petersen:

Senator Knowland: As I understand, there are $380,000,000 more
currency redeemed than there were appropriations for?

Mr. Petersen: That is correct.

Senator Knowland: And you expect eventually that that amount will
be cut down to $160,000,000; is that right?

Mr. Petersen: Yes…

Senator Knowland: Now what I would like to ask is, what is the
amount outstanding as of, let us say, the end of last month (May,
1947)?

Mr. Petersen: That is $340,000,000. [3]

The hearing continued for two days. At its end there were 141
printed pages of oral testimony, and in addition 31 pages of State
Department documents, 59 pages of Treasury Department documents,
and 474 pages of War Department documents. From the mass of
unreleased material it is possible to reconstruct the story
chronologically, step by step.

It started in early 1944, when the need for uniform occupation
currency in Germany was acknowledged by the Allies. On January 29th
Ambassador Averell Harriman informed our State Department from
Moscow:

“Great importance is attached by the British Government to the
Russian Government’s participation in this arrangement. [4]
Cordell Hull informed Harriman on February 8th that the U.S. would
be glad to print the money for Russia.

“The production of sufficient currency to take care of Soviet
requirements, if desired, is being contemplated. [5]
On February 15th Moscow’s answer came from Harriman:

“The Commissariat for Finance considers that in preparing the
currency it would be more correct to print a part of it in the
Soviet Union in order that a constant supply of currency may be
guaranteed to the Red Army…
It will be necessary to furnish the Commissariat for Finance, in
order that the M-marks may be of identical design, with plates of
all denominations, a list of serial numbers, and models of paper
and colors for printing.”

The Russian technique was clever: Don’t ask whether your
demand will be met; ask when it will be met. Harriman’s cable ended
as follows:

“Molotov asks in conclusion that he be informed when the
Commissariat for Finance may receive the prints, models of paper
and colors and list of serial numbers. Please instruct.” [6]
Secretary Hull took over a month before replying on March 23:

“It is not expected that the Combined Chiefs of Staff will favor
the delivery of plates to the Russians.” [7]
However, other departments of the Government were also being
consulted. Inside the Treasury Department great concern was
expressed by two veteran civil servants, Mr. D.W. Bell, Under
Secretary of Treasury, and Mr. A.W. Hall, Director of the Bureau of
Engraving. In a memorandum to his immediate superior Bell stated:

“It would be very difficult to make the plates available to the
Russians, The Treasury had never made currency plates available to
anybody.” [8]
Mr. Hall reported to the same superior, pointing out the
gravity of the problem of accountability. His memorandum said:

"To acquiesce to such an unprecedented request would create serious
complications. To permit the Russian Government to print currency
identical to that being printed in this country would make
accountability impossible…
he present contractor for the printing of invasion currency for
Germany is under heavy bond to insure against the misappropriation,
loss, or improper use of plates, paper, and printed currency.

I do not believe that under any circumstances would the contractor
agree to the manufacture of duplicate plates by any agency outside
of his plant. Furthermore, it is doubtful that the Treasury
Department could force him to do so. Almost certainly his bond
would become forfeit if such an arrangement were resorted to." [9]

The immediate superior of Mr. Bell and Mr. Hall was a relative
newcomer to the Treasury Department named Harry Dexter White.
Revealing testimony about Mr. White has been made by Whittaker
Chambers in his recent book, Witness:

In the persons of Alger Hiss and Harry Dexter White, the Soviet
military intelligence sat close to the heart of the United States
Government. It was not yet in the cabinet room, but it was not far
outside the door…
Harry Dexter White had become Assistant Secretary of the Treasury.
In a situation with few parallels in history, the agents of an
enemy power were able to do much more than purloin documents.

They were in a position to influence the nation’s foreign policy in
the interests of the nation’s chief enemy, and not only on
exceptional occasions like Yalta (where Hiss’ role, while
presumably important, is still ill-defined), or through the
Morgenthau Plan for the destruction of Germany (which is generally
credited to White), but in what must have been the staggering sum
of day-to-day decisions. [10]

With this clue in hand, the day-to-day progress of the
decision on the engraving plates makes fascinating reading. Mr.
Bell again conferred with Harry Dexter White.

He pointed out that the plates which had been engraved for the
Treasury Department were, in fact, the property of the Forbes
Company in Boston and if we insisted that they should make
duplicate sets available to the Russians, it is possible that the
Forbes Company would simply refuse to print any further currency
for us, on the grounds that security control had been removed and
they could not be responsible for anything that might happen to the
printing of the currency from that time on. [11]

He added that not only could the U.S. print all the currency
the Russians could possibly desire, but

“we could have the first shipment ready for them before the
Russians could start manufacturing currency from plates that we
might make available to them.”What did Henry Dexter White think of
all this?
White said that he
…had read with considerable interest the memorandum of March 3 from
Mr. Hall to Mr. Bell on this subject, but he was somewhat troubled
with the views expressed therein, which indicated that we could not
make these plates available to the Russians…
Mr. White reiterated that he was loath to turn the Russian
request down without further review of the matter. He called
attention to the fact that in this instance we were not printing
American currency, but Allied currency and that Russia was one of
those allies who must be trusted to the same degree and to the same
extent as the other allies. [12]

Never, of course, had any other ally asked for engraving
plates nor had we supplied them. We had printed other occupation
currency for use in Italy and Japan, and our other allies were
perfectly satisfied with this arrangement, but Mr. White made no
reference to this.

Mr. White then records his meeting with Ambassador Gromyko at
the Soviet Embassy in Washington on the evening of March 22. He
relates that Gromyko

“kept coming back with a question which he asked a number of times,
namely, why the Forbes Company should object to giving a duplicate
set of plates to his Government. He said that after all the Soviet
Government was not a private corporation or an irresponsible
government. I explained to him how both the Forbes Company and the
American Banknote Company felt but I am afraid he remained
unimpressed with the reasons I offered.” [13]
At no point did Mr. White say that our Government, for which
he was in this instance the spokesman, objected to providing
duplicate plates because this would make accountability impossible.


There was only the integrity of two American business firms with
which to meet Russian demands and protect the interests of the
United States.

The State Department also heard from Mr. Harriman in Moscow
that

“the Russians could not accept the explanation of a private
printing company interfering with the program under consideration.
The Russians asked that they be told whether the plates would or
would not be made available to them. In the event the plates were
not made available, they were prepared to proceed with the printing
of their own variety of mark currency.” [14]
This threat had the desired effect.

When Senator Bridges asked Assistant Secretary Petersen at the
closed hearing, “Who in the United States made the decision to turn
over, to the Russians, United States engraved printing plates for
producing currency?”, Petersen answered: “The record as I have seen
it in the War Department indicates that the decision was made by
the State and Treasury Departments…” [15]

The decision was made on April 14, 1944. It was recorded by
James Clement Dunn of the State Department in the following
memorandum of his conversation with Secretary Morgenthau. The
paragraph next to last, referring to the difficulties raised by the
Forbes Company, indicates that the Treasury Department was ready
and willing to assume, under the President’s War Powers, the
responsibility which the business firms would not undertake. Here
is Mr. Dunn’s memo in full:

DEPARTMENT OF STATE

Memorandum of

TELEPHONE CONVERSATION

Date: April 14, 1944.

Subject: Duplicate plates to be furnished to the Soviet Government.

Participants: Mr. Henry Morgenthau, Jr., Secretary of the treasury;
Mr. Dunn,

Copies to: SEE – Mr. Bohlen.

Mr. Morgenthau telephoned me this morning to say that he was
informing the Soviet Ambassador this afternoon that the duplicate
plates for the printing of the Allied military mark to be used in
the invasion of Germany would be furnished to the Soviet Government
in response to that Government’s request. He asked whether the
Department of State was in favor of this action.

I replied that it was the opinion of this Department from the
political point of view, aside from any military considerations or
any technical questions or difficulties, that if possible it was
highly advisable to have the duplicate plates furnished to the
Soviet Government in order that the three Governments and the three

Armies entering Germany would be using the same identical currency.


The Soviet Government had informed us that if the plates were not
furnished to it, that Government would proceed to produce a
different currency for use in Germany. It was our opinion that it
would be a pity to lose the great advantage of having one currency
used by the three Armies, which itself would indicate a degree of
solidarity which was much to be desired not only for the situation
in Germany but for its effect on the relations in may other aspects
between the Soviet, British, and United States Governments.

Mr. Morgenthau said he was very glad to have this expression of the
Department’s views on this question as there might be some
technical difficulties arise which would require the Treasury to
take over, under the President’s War Powers, the plant which is now
using the original plates for the production of these marks.

This question has been up between the United States and Soviet
Governments since last November, and it has become perfectly clear
to us as a result of the exchanges of correspondence on the subject
that the Soviet Government is not ready to join in the common use
of the same currency unless it receives the duplicate plates from
us.

In order to convince the Soviet Government of our sincerity in the
desire to have the closest collaboration in these military
operations against Germany, it becomes essential that we make every
effort within our possibility to furnish the plates to that
Government.

JAMES CLEMENT DUNN. [16]
On the same day Secretary Morgenthau sent a memo to Soviet
Ambassador Gromyko saying,

“There will be shipped from Washington on Tuesday, April 8, glass
negatives and positives of all plates used for printing M-marks.
The designs are in negative and positive forms since it is not
known which is preferred by the Soviet Government.”
He ended by saying,

“The U.S. Treasury is desirous to cooperate with the Soviet
Government in this matter in every possible way.” [17]
It was not until May 13 that the first shipment actually left
the Washington airport. There was a comedy of errors on the second
shipment, which was supposed to leave by plane at 6 A.M. on
Tuesday, May 23. Mr. Hall reported to Mr. Bell as follows:

The material was loaded on the trucks yesterday, and a crew of men
brought in to work at 5 A.M. today (May 23), and delivery was made
to the Airport before 6 A.M…. I called Colonel Frank H. Collins (of
the ATC) to ascertain whether the planes had left, and he informed
me that the crews of the five planes were standing by waiting for
the representatives of the (Soviet) Embassy. He further stated that
the crews were becoming impatient as they wanted to land at Great
Falls, Montana, before sundown. [18]
The trouble was that the Soviet Embassy had arranged for their
couriers to board he planes on May 24! The five airplanes were
therefore held overnight with “a guard in each plane, and a guard
around the area where the planes were parked.”

They left early on Wednesday, May 24, after each courier
arrived with an additional box weighing over 200 pounds. Colonel
Collins said he “thought the extra boxes contained American canned
goods and American liquor.” [19]

As for the third shipment, said Mr. Hall,

“it is now necessary to uncrate all of the material and rearrange
the whole shipment. You will remember when we talked to the
Ambassador (Gromyko), he insisted upon complying strictly with
instructions he received from his government, and now that his
government had reversed itself, we have to do the job all over
again.
This has been a pretty trying assignment for all associated with
it.” [20]

Was there anything else that Russia could possibly ask from
the Treasury? Yes, it could ask us to repeat one of the planeloads.
That is exactly what Gromyko asked on June first, in a note to
Morgenthau which stated briefly that “all the materials… perished
in connection with a crash of the plane which carried them.” [21]
Gromyko said absolutely nothing about when the crash occurred, or
where.

Did we ask for proof of the crash, or direct any questions
whatever to Gromyko about the alleged accident? On the contrary,
Secretary Morgenthau promptly answered:

“I am pleased to inform you that the seven items representing
replacement of the materials lost in the plane crash will be ready
for shipment on Wednesday, June 7… I trust that this arrangement
meets with your approval.” [22]
Why was Russia so insistent on printing German occupation
currency without accountability? The answer is quite simple. They
knew that the U.S. Army would convert such currency into dollars.
(Russia, of course, refused to redeem the same currency with
roubles.) As a result, every Russian-made mark that fell into the
hands of an American soldier or accredited civilian became a
potential charge against the Treasury of the United States.

Russia could pay its occupation army in marks, and in fact did
so, adding a two-year bonus for good measure. If the Red Army could
get anything out of the German economy with these marks, all well
and good. If they could get anything out of America, even better.

In any event, these marks cost the Russian economy nothing
whatever. With the materials provided from Washington, they took
over a former Nazi printing plant in Leipzig, deep in the Russian
zone, at a safe distance from American inspection, and started the
presses rolling.

Any GI could buy a pack of cigarettes for 8 cents at a U.S.
Army Post exchange. For this the Russian and German black-markets
would offer him 100 marks from the Leipzig mint. To realize a
profit of almost $10 on an 8-cent package of cigarettes, the
American had only to take his 100 Leipzig marks to an Army Post
Office, purchase a $10 money order and mail it to the United
States.

It was revealed that the standard offer for a five-cent candy
bar was 50 marks, or $5; $18 for one pound of Crisco; $20 for one K-
ration; $25 for a pound of coffee, and $2,500 for a wrist watch
costing $17.

By December 1946, the U.S. Military Government found itself
$250,000,000 or more in the red. It had redeemed in dollars at
least $2,500,000,000 marks in excess of the total marks issued b
its Finance Office! The deficit could have had no other origin than
the Russian plant in Leipzig.

Let us read once again the War Department’s testimony at the
hearing in 1947:

Chairman Bridges: Was there any action taken by the War Department
to restrict the number of notes issued by the Russians?
Mr. Petersen: The answer of the War Department is “No.”

Chairman Bridges: And, as far as you know, was there any action
taken by the State or the Treasury Department to restrict Russia in
the number of notes she would issue?

Mr. Petersen: To my knowledge, none.

Chairman Bridges: My next question is, does Russia still have the
plates, so far as you know?

Mr. Petersen: As far as I know, they still have the plates.

Chairman Bridges: And as far as you know, are they still printing
the currency?

Mr. Petersen: As far as I know, they are still printing the
currency.

Chairman Bridges: And has there been any protest from this
Government endeavoring to stop them?

Mr. Petersen: There have been strenuous efforts from the Allied
Control Council in Berlin to obtain an accounting from the Russians
as to the amount of Allied military marks which they have issued.
Those efforts have been unsuccessful. [23]

To everyone’s surprise, the Russians at one point agreed to
submit quarterly statements of the volume of money they were
putting into circulation. Their statements were so palpably rigged,
however, that American officers called them “unbelievable.” In that
case, smiled the Russians, it would be useless to make further
reports.

It took 18 months before Russia’s siphon into the American
Treasury was severed. The Army’s payroll in Germany was shifted
from Allied marks to U.S. Military Certificates, which were non-
convertible.

In addition to the $250,000,000, there was a further loss,
which through small was mortifying. A charge of $18,102,84 was
rendered to the Soviet Embassy, covering the expense of the
engraving plates and the materials in the three 1944 deliveries.
The bill was ignored and is still unpaid. The Russians, as Mr.
Petersen indicated, still have the plates and undoubtedly a good
deal of knowledge regarding U.S. currency manufacture techniques.

As for Harry Dexter White, his ascent was steady. Five months
after the duplicate plates fiasco, there was a conference of the
Secretaries of State, War and the Treasury at the Hopkins office in
the White House. White read a prospectus for the doom of Germany:
It’s people were to become a pastoral horde; their entire
industrial plant would be removed or destroyed; all equipment was
to be torn from the Ruhr mines, and it’s coal deposits would be
“thoroughly wrecked.”

Secretary Stimson was struck with horror – an emotion which
Secretary Hull shared. They learned with consternation two weeks
afterward that the “Morgenthau Plan” had been initiated by
President Roosevelt and Prime Minister Churchill at the Quebec
Conference of Sept. 11, 1944. To Mr. Roosevelt’s face, Secretary
Hull charged that Churchill’s signature was procured by Morgenthau
with an offer of $6,500,000,000 of postwar Lend-Lease for Britain.
[24]

From Assistant to the Secretary, Mr. White moved up to
Assistant Secretary of the Treasury in 1945. During February 1946,
he was appointed by President Truman, and confirmed by the Senate
as U.S. Director of the International Monetary Fund, with a tax
exemption salary of $17,500.

The name of Harry White became so important in the record of
the Senate committee that finally Senator Bridges suggested calling
him as a witness. But White was absent from the capital on
vacation. It was announced that Morgenthau and White would be
placed on the stand at a future section, but this was never called.

Mr. White submitted his resignation from the International
Monetary Fund on June 19, 1947, the day after the committee
recessed. When the economist was put on oath the following year, he
denounced the Chambers accusations as “unqualifiedly false.” He was
not and never had been a Communist, White affirmed, and had
committed no disloyal act. But two weeks later his funeral was held
at Temple Israel in Boston: he had died of a heart attack.

In November of that year Whittaker Chambers produced five
rolls of microfilmed documents. Among them were eight pages of
script divulging U.S. military secrets. Found in possession of an
acknowledged Communist courier, the handwriting was identified as
that of Harry Dexter White.

SOURCES

CHAPTER TWELVE

How Russia Got U.S. Money Plates

1. Occupation Currency Transactions Hearings before the Committee
on Appropriations, Armed Services and Banking and Currency, U.S.
Senate, (U.S. Government Printing Office, 1947), p. 27.

2. Ibid., p. 27.

3. Ibid., p. 8.

4. Ibid., p. 147.

5. Ibid., p. 147.

6. Ibid., p. 148.

7. Ibid., p. 150.

8. Ibid., p. 178.

9. Ibid., pp. 175-176.

10. Witness, Whittaker Chambers, (Random House, 1952), p. 427.

11. Occupation Currency Transactions Hearings, p. 178.

12. Ibid., pp. 178-179.

13. Ibid., p. 183.

14. Ibid., p. 151.

15. Ibid., p. 16-17.

16. Ibid., p. 152-53.

17. Ibid., p. 186.

18. Ibid., pp. 206-7.

19. Ibid., p. 208.

20. Ibid., p. 207.

21. Ibid., p. 208.

22. Ibid., p. 211.

23. Ibid., p. 27.

24. The Memoirs of Cordell Hull, (Macmillan, 1948), Vol. II, pp.
1613-18.

Continue with Chapter 13


Jump to CHAPTER...01 - "Mr. Brown" and the Start of a Diary02 -
The "Bomb Powder" Folders03 - We Move to Montana04 - How My Alaskan
Report Helped the Russians05 - The Black Suitcases06 - Don’t Make a

Big Production07 - The Story of Heavy Water08 - A Look at Lend-
Lease09 - The Greatest Mail-Order Catalogue in History10 - My Visit
to the State Department in 194411 - The Priest Who Confronted
Stalin12 - How Russia Got U.S. Treasury Plates13 - The Broadcast
Goes on Tonight14 - Clouds of Witnesses15 - Conclusion

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