Henry Morgenthau, Jr.
Encyclopedia
Henry Morgenthau, Jr. was the U.S. Secretary of the Treasury during the administration of Franklin D. Roosevelt
. He played a major role in designing and financing the New Deal
. After 1937, while still in charge of the Treasury, he played an increasingly major role in foreign policy, especially with respect to policies supporting China, helping Jewish refugees, and (in the "Morgenthau Plan
") to prevent Germany from ever again being a military power after the Allied victory in 1945.
family in New York City
, the son of Henry Morgenthau Sr.
, a real estate mogul and diplomat, and Josephine Sykes. He had three sisters. He attended what is now the Dwight School
, then studied architecture and agriculture at Cornell University
. In 1913, he met and became friends with Franklin and Eleanor Roosevelt
. During World War I
, he worked for the Farm Security Administration
. He operated a farm near the Roosevelt estate in upstate New York, specializing in growing Christmas trees. He was concerned about distress among farmers, who comprised over a fourth of the population. In 1922 he took over the American Agriculturalist magazine, making it a voice for reclamation, conservation, and scientific farming. In 1929, Roosevelt, as Governor of New York
, appointed him chair of the New York State Agricultural Advisory Committee and to the state Conservation Commission.
. Morgenthau was nonetheless involved in monetary decisions. Roosevelt adopted the idea of raising the price of gold to drive down the value of the dollar, thereby raising the price of all goods — especially farm goods. The idea came from Professor George Warren of Cornell University, and despite the opposition to the idea, Morgenthau was willing to help him. When Roosevelt told Morgenthau he was thinking of raising the price of gold by 21 cents, his entourage asked him why. "It's a lucky number," Roosevelt said. "Because it's three times seven." As Morgenthau later wrote, "If anybody knew how we really set the gold price through a combination of lucky numbers, etc., I think they would be frightened."
In 1934, when William H. Woodin resigned because of poor health, Roosevelt appointed Morgenthau Secretary of the Treasury (an act that enraged conservatives). Morgenthau was an orthodox economist who opposed Keynesian economics
and disapproved of some elements of Roosevelt's New Deal
. To finance World War II
, he initiated an elaborate system of marketing war bond
s.
The Great Depression and its rampant unemployment were of primary focus for Morgenthau. And after almost two terms served by Roosevelt, Morgenthau, assessed the federal effort to relieve economic conditions by proclaiming, “We have tried spending money. We are spending more than we have ever spent before and it does not work. . . . After eight years of this administration we have just as much unemployment as when we started . . . and an enormous debt to boot!” Indeed, the unemployment rate for 1939 was higher than the unemployment rate for 1931, but lower than 1932.
(WPA), Public Works Administration
(PWA) and Civilian Conservation Corps
(CCC), that would be temporary until full recovery was at hand. He fought against the veterans’ bonus until Congress finally overrode Roosevelt’s veto and gave out $2.2 billion in 1936. In the 1937 "Depression within the Depression," Morgenthau was unable to persuade Roosevelt to desist from continued deficit spending. Roosevelt continued to push for more spending, and Morganthau promoted a balanced budget. In 1937, however, Morgenthau successfully convinced Roosevelt to finally focus on balancing the budget through major spending cuts and tax increases; Keynesian economists have argued that this new attempt by Roosevelt to balance the budget created the Recession of 1937
. On November 10, 1937, Morgenthau gave a speech to the Academy of Political Science at New York's Hotel Astor, in which he noted that the Depression had required deficit spending, but that the government needed to cut spending to revive the economy. In his speech, he said:
His biggest success was the new Social Security
program; he reversed the proposals to fund it from general revenue and insisted it be funded by new taxes on employees. Morgenthau insisted on excluding farm workers and domestic servants from Social Security because workers outside industry would not be paying their way.
He questioned the value of the deficit spending that had not reduced unemployment and only added debt:
To reduce the deficit he argued for increased taxes, particularly on the wealthy.
s of Europe, the British and U.S. governments argued that supplies would be diverted for the Germans
' personal use or would be granted to the Jews just to free the Third Reich from its "responsibility" to feed them. A license granted in December 1942 for such shipments had minimal effect. In 1943, the Treasury Department approved the World Jewish Congress
' plan to rescue Jews through the use of blocked accounts in Switzerland
, but the State Department and the British Foreign Office procrastinated further. Morgenthau and his staff persisted in bypassing State and ultimately confronting Roosevelt in January 1944, along with increasing calls from Congress and the public for a presidential rescue commission; the eventual result was the executive creation of the US War Refugee Board
in January 1944. The Board allowed an increasing number of Jews to enter the U.S. in 1944 and 1945; as many as 200,000 Jews were saved in this way.
Hurwitz (1991) argues that in late 1943, the Treasury Department drafted a report calling for the creation of a special rescue agency for European Jewry. At the same time, several congressmen connected with the "Bergson Boys" introduced a resolution also calling for the creation of such an agency. On January 16, 1944, Morgenthau presented Roosevelt with the Treasury report, and the president agreed to create the War Refugee Board
(WRB), the first major attempt of the United States to deal with the annihilation of European Jews.
became the chosen option.
, who was later accused of being a Soviet agent. At the Second Quebec Conference
on September 16, 1944, Roosevelt and Morgenthau persuaded the initially very reluctant British Prime Minister Winston Churchill
to agree to the Morganthau plan, likely using a $6 billion Lend Lease agreement to do so. Churchill chose however to narrow the scope of Morgenthau's proposal by drafting a new version of the memorandum, which ended up being the version signed by the two statesmen. The gist of the signed memorandum was "This programme for eliminating the war-making industries in the Ruhr
and in the Saar is looking forward to converting Germany into a country primarily agricultural and pastoral in its character."
The plan faced opposition in Roosevelt's cabinet, primarily from Henry L. Stimson
(see also his memorandum), and when the plan was leaked to the press, there was public criticism of Roosevelt. The President's response to inquiries was to deny the press reports. As a consequence of the leak, Morgenthau was in bad favor with Roosevelt for a time.
German Propaganda
Minister
Joseph Goebbels
used the leaked plan, with some success, to encourage the German people to persevere in their war efforts so that their country would not be turned into a "potato field." General George Marshall
complained to Morgenthau that German resistance had strengthened. Hoping to get Morgenthau to relent on his plan for Germany, Roosevelt's son-in-law, Lt. Colonel John Boettiger, who worked in the United States War Department, explained to Morgenthau how the American troops that had had to fight for five weeks against fierce German resistance to capture Aachen
and complained to him that the Morgenthau Plan was "worth thirty divisions to the Germans." In late 1944, Roosevelt's election opponent, Thomas Dewey
, said it was worth "ten divisions". Morgenthau refused to relent.
On May 10, 1945, Truman signed the U.S. occupation directive JCS 1067. Morgenthau told his staff that it was a big day for the Treasury, and that he hoped that "someone doesn't recognize it as the Morgenthau Plan." The directive, which was in effect for over two years directed the U.S. forces of occupation to "…take no steps looking toward the economic rehabilitation of Germany".
In occupied Germany Morgenthau left a direct legacy through what in OMGUS
commonly were called "Morgenthau boys". These were U.S. Treasury officials whom General Dwight D. Eisenhower
had "loaned" in to the Army of occupation. These people ensured that JCS 1067 was interpreted as strictly as possible. They were most active in the first crucial months of the occupation, but continued their activities for almost two years following the resignations of Morgenthau in mid-1945, and some time later, of their leader, Colonel Bernard Bernstein, who was "the repository of the Morgenthau spirit in the army of occupation". They resigned when, in July 1947, JCS 1067 was replaced by JCS 1779 which instead stressed that "An orderly, prosperous Europe requires the economic contributions of a stable and productive Germany."
Morgenthau's legacy was also seen in the plans for preserving German disarmament by significantly reducing German economic might. (see also The industrial plans for Germany)
In October 1945 Morgenthau published a book in which he described and motivated the Morgenthau plan in great detail. Roosevelt had granted permission for the book the evening before his death, when dining with Morgenthau at Warm Springs
. Morgenthau had asked Churchill for permission to also include the text of the then still secret "pastoralization" memorandum signed by Churchill and FDR at Quebec
but permission was denied. In November 1945 General Dwight D. Eisenhower
, the Military Governor of the U.S. Occupation Zone
, approved the distribution of 1000 free copies of the book to American military officials in occupied Germany. Historian Stephen Ambrose
draws the conclusion that, despite Eisenhower's later claims that the act was not an endorsement of the Morgenthau plan, Eisenhower both approved of the plan and had previously given Morgenthau at least some of his ideas on how Germany should be treated.
Following his resignation, along with other prominent individuals such as the former first lady, Eleanor Roosevelt
, Morgenthau remained for several years an active member of the group campaigning for a "harsh peace" for Germany.
Morgenthau was a leading participant in the Bretton Woods Conference
, which established the Bretton Woods system
, the International Monetary Fund
and the International Bank for Reconstruction and Development
(the World Bank
).
became President and Morgenthau's advice was no longer sought. He devoted the remainder of his life to working with Jewish philanthropies, and also became a financial advisor to Israel
. Tal Shahar
, an Israeli moshav
(agricultural community) near Jerusalem, created in 1948, was named in his honor (Morgenthau means "morning dew" in German
, and so does the Hebrew name "Tal Shahar").
Morgenthau died in Poughkeepsie, New York
, in 1967. His son Robert M. Morgenthau
was the District Attorney
of New York County from 1975 to 2009.
The 378 feet (115 m) United States Coast Guard Cutter
Morgenthau is named in his honor.
from June 27 to July 3, 1945, following the resignation of Secretary of State Edward Stettinius and the U.S. Senate confirmation of James Byrnes
. Had President Truman died, resigned or been removed from office otherwise during those seven days, Morgenthau would have become Acting President of the United States
until the end of the presidential term in 1949.
Franklin D. Roosevelt
Franklin Delano Roosevelt , also known by his initials, FDR, was the 32nd President of the United States and a central figure in world events during the mid-20th century, leading the United States during a time of worldwide economic crisis and world war...
. He played a major role in designing and financing the New Deal
New Deal
The New Deal was a series of economic programs implemented in the United States between 1933 and 1936. They were passed by the U.S. Congress during the first term of President Franklin D. Roosevelt. The programs were Roosevelt's responses to the Great Depression, and focused on what historians call...
. After 1937, while still in charge of the Treasury, he played an increasingly major role in foreign policy, especially with respect to policies supporting China, helping Jewish refugees, and (in the "Morgenthau Plan
Morgenthau Plan
The Morgenthau Plan, proposed by United States Secretary of the Treasury Henry Morgenthau, Jr., advocated that the Allied occupation of Germany following World War II include measures to eliminate Germany's ability to wage war.-Overview:...
") to prevent Germany from ever again being a military power after the Allied victory in 1945.
Early life
Morgenthau was born into a prominent JewishAmerican Jews
American Jews, also known as Jewish Americans, are American citizens of the Jewish faith or Jewish ethnicity. The Jewish community in the United States is composed predominantly of Ashkenazi Jews who emigrated from Central and Eastern Europe, and their U.S.-born descendants...
family in New York City
New York City
New York is the most populous city in the United States and the center of the New York Metropolitan Area, one of the most populous metropolitan areas in the world. New York exerts a significant impact upon global commerce, finance, media, art, fashion, research, technology, education, and...
, the son of Henry Morgenthau Sr.
Henry Morgenthau, Sr.
Henry Morgenthau was a lawyer, businessman and United States ambassador, most famous as the American ambassador to the Ottoman Empire during the First World War. He was father of the politician Henry Morgenthau, Jr. and the grandfather of Robert M. Morgenthau, who was the District Attorney of...
, a real estate mogul and diplomat, and Josephine Sykes. He had three sisters. He attended what is now the Dwight School
Dwight School
The Dwight School is an independent, college preparatory school located on Manhattan’s Upper West Side. Dwight offers the International Baccalaureate curriculum to students ages two through grade twelve. Approximately forty countries are represented among its student body.-History:Founded in 1872...
, then studied architecture and agriculture at Cornell University
Cornell University
Cornell University is an Ivy League university located in Ithaca, New York, United States. It is a private land-grant university, receiving annual funding from the State of New York for certain educational missions...
. In 1913, he met and became friends with Franklin and Eleanor Roosevelt
Eleanor Roosevelt
Anna Eleanor Roosevelt was the First Lady of the United States from 1933 to 1945. She supported the New Deal policies of her husband, distant cousin Franklin Delano Roosevelt, and became an advocate for civil rights. After her husband's death in 1945, Roosevelt continued to be an international...
. During World War I
World War I
World War I , which was predominantly called the World War or the Great War from its occurrence until 1939, and the First World War or World War I thereafter, was a major war centred in Europe that began on 28 July 1914 and lasted until 11 November 1918...
, he worked for the Farm Security Administration
Farm Security Administration
Initially created as the Resettlement Administration in 1935 as part of the New Deal in the United States, the Farm Security Administration was an effort during the Depression to combat American rural poverty...
. He operated a farm near the Roosevelt estate in upstate New York, specializing in growing Christmas trees. He was concerned about distress among farmers, who comprised over a fourth of the population. In 1922 he took over the American Agriculturalist magazine, making it a voice for reclamation, conservation, and scientific farming. In 1929, Roosevelt, as Governor of New York
Governor of New York
The Governor of the State of New York is the chief executive of the State of New York. The governor is the head of the executive branch of New York's state government and the commander-in-chief of the state's military and naval forces. The officeholder is afforded the courtesy title of His/Her...
, appointed him chair of the New York State Agricultural Advisory Committee and to the state Conservation Commission.
New Deal
In 1933, Roosevelt became President and appointed Morgenthau governor of the Federal Farm BoardFederal Farm Board
The Federal Farm Board was actually created in 1929, before the stock market crash on Black Tuesday, 1929, but its powers were later enlarged to meet the economic crisis farmers faced during the Great Depression. It was established by the Agricultural Marketing Act to stabilize prices and to...
. Morgenthau was nonetheless involved in monetary decisions. Roosevelt adopted the idea of raising the price of gold to drive down the value of the dollar, thereby raising the price of all goods — especially farm goods. The idea came from Professor George Warren of Cornell University, and despite the opposition to the idea, Morgenthau was willing to help him. When Roosevelt told Morgenthau he was thinking of raising the price of gold by 21 cents, his entourage asked him why. "It's a lucky number," Roosevelt said. "Because it's three times seven." As Morgenthau later wrote, "If anybody knew how we really set the gold price through a combination of lucky numbers, etc., I think they would be frightened."
In 1934, when William H. Woodin resigned because of poor health, Roosevelt appointed Morgenthau Secretary of the Treasury (an act that enraged conservatives). Morgenthau was an orthodox economist who opposed Keynesian economics
Keynesian economics
Keynesian economics is a school of macroeconomic thought based on the ideas of 20th-century English economist John Maynard Keynes.Keynesian economics argues that private sector decisions sometimes lead to inefficient macroeconomic outcomes and, therefore, advocates active policy responses by the...
and disapproved of some elements of Roosevelt's New Deal
New Deal
The New Deal was a series of economic programs implemented in the United States between 1933 and 1936. They were passed by the U.S. Congress during the first term of President Franklin D. Roosevelt. The programs were Roosevelt's responses to the Great Depression, and focused on what historians call...
. To finance World War II
World War II
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...
, he initiated an elaborate system of marketing war bond
Series E bond
Series E U.S. Savings Bonds were marketed by the United States government as war bonds from 1941 to 1980. When Americans refer to war bonds, they are usually referring to Series E bonds. Those issued from 1941 to November 1965 accrued interest for 40 years; those issued from December 1965 to June...
s.
The Great Depression and its rampant unemployment were of primary focus for Morgenthau. And after almost two terms served by Roosevelt, Morgenthau, assessed the federal effort to relieve economic conditions by proclaiming, “We have tried spending money. We are spending more than we have ever spent before and it does not work. . . . After eight years of this administration we have just as much unemployment as when we started . . . and an enormous debt to boot!” Indeed, the unemployment rate for 1939 was higher than the unemployment rate for 1931, but lower than 1932.
Campaign Against Corruption
Morgenthau used his position as Treasury chief to investigate organized crime and government corruption. Treasury Intelligence and other agencies (the notoriously fragmented US federal law enforcement system had five in the Treasury Department alone) were uncoordinated in their efforts; efforts to create a super-agency were stalled by J. Edgar Hoover, who feared his FBI would be overshadowed. Nevertheless, Morgenthau created a coordinator for the Treasury agencies; although the coordinator could not control them, he could move them to some cooperation. Investigations of official corruption caused the fall of political boss Thomas "Big Tom" Pendergast of Kansas City. A Mafia-related shootout and massive official corruption led to successful investigations against the local Mafia head Charles Carollo and Tom Pendergast. Other officials—as well as gangsters, in a few rare cases—were convicted because of Morgenthau's investigations.Fiscal responsibility
Morgenthau believed in balanced budgets, stable currency, reduction of the national debt, and the need for more private investment. The Wagner Act regarding labor unions met Morgenthau’s requirement because it strengthened the party’s political base and involved no new spending. Morgenthau accepted Roosevelt’s double budget as legitimate — that is, a balanced regular budget, and an “emergency” budget for agencies, like the Works Progress AdministrationWorks Progress Administration
The Works Progress Administration was the largest and most ambitious New Deal agency, employing millions of unskilled workers to carry out public works projects, including the construction of public buildings and roads, and operated large arts, drama, media, and literacy projects...
(WPA), Public Works Administration
Public Works Administration
The Public Works Administration , part of the New Deal of 1933, was a large-scale public works construction agency in the United States headed by Secretary of the Interior Harold L. Ickes. It was created by the National Industrial Recovery Act in June 1933 in response to the Great Depression...
(PWA) and Civilian Conservation Corps
Civilian Conservation Corps
The Civilian Conservation Corps was a public work relief program that operated from 1933 to 1942 in the United States for unemployed, unmarried men from relief families, ages 18–25. A part of the New Deal of President Franklin D...
(CCC), that would be temporary until full recovery was at hand. He fought against the veterans’ bonus until Congress finally overrode Roosevelt’s veto and gave out $2.2 billion in 1936. In the 1937 "Depression within the Depression," Morgenthau was unable to persuade Roosevelt to desist from continued deficit spending. Roosevelt continued to push for more spending, and Morganthau promoted a balanced budget. In 1937, however, Morgenthau successfully convinced Roosevelt to finally focus on balancing the budget through major spending cuts and tax increases; Keynesian economists have argued that this new attempt by Roosevelt to balance the budget created the Recession of 1937
Recession of 1937
The Recession of 1937–1938 was a temporary reversal of the pre-war 1933 to 1941 economic recovery from the Great Depression in the United States.-Background:...
. On November 10, 1937, Morgenthau gave a speech to the Academy of Political Science at New York's Hotel Astor, in which he noted that the Depression had required deficit spending, but that the government needed to cut spending to revive the economy. In his speech, he said:
-
"We want to see private business expand. … We believe that one of the most important ways of achieving these ends at this time is to continue progress toward a balance of the federal budget."
His biggest success was the new Social Security
Social Security (United States)
In the United States, Social Security refers to the federal Old-Age, Survivors, and Disability Insurance program.The original Social Security Act and the current version of the Act, as amended encompass several social welfare and social insurance programs...
program; he reversed the proposals to fund it from general revenue and insisted it be funded by new taxes on employees. Morgenthau insisted on excluding farm workers and domestic servants from Social Security because workers outside industry would not be paying their way.
He questioned the value of the deficit spending that had not reduced unemployment and only added debt:
-
"We have tried spending money. We are spending more than we have ever spent before and it does not work. And I have just one interest, and if I am wrong … somebody else can have my job. I want to see this country prosperous. I want to see people get a job. I want to see people get enough to eat. We have never made good on our promises. … I say after eight years of this Administration we have just as much unemployment as when we started. … And an enormous debt to boot."
To reduce the deficit he argued for increased taxes, particularly on the wealthy.
"We have never begun to tax the people in this country the way they should be..... I don't pay what I should. People in my class don't. People who have it should pay."
Jewish refugees
Once confronted by the Holocaust, the Allied Powers reacted slowly. Refusing the initial appeal of Jewish organizations for Allied countries to deliver food and medicine to the ghettoGhetto
A ghetto is a section of a city predominantly occupied by a group who live there, especially because of social, economic, or legal issues.The term was originally used in Venice to describe the area where Jews were compelled to live. The term now refers to an overcrowded urban area often associated...
s of Europe, the British and U.S. governments argued that supplies would be diverted for the Germans
Germany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...
' personal use or would be granted to the Jews just to free the Third Reich from its "responsibility" to feed them. A license granted in December 1942 for such shipments had minimal effect. In 1943, the Treasury Department approved the World Jewish Congress
World Jewish Congress
The World Jewish Congress was founded in Geneva, Switzerland, in August 1936 as an international federation of Jewish communities and organizations...
' plan to rescue Jews through the use of blocked accounts in Switzerland
Switzerland
Switzerland name of one of the Swiss cantons. ; ; ; or ), in its full name the Swiss Confederation , is a federal republic consisting of 26 cantons, with Bern as the seat of the federal authorities. The country is situated in Western Europe,Or Central Europe depending on the definition....
, but the State Department and the British Foreign Office procrastinated further. Morgenthau and his staff persisted in bypassing State and ultimately confronting Roosevelt in January 1944, along with increasing calls from Congress and the public for a presidential rescue commission; the eventual result was the executive creation of the US War Refugee Board
War Refugee Board
The War Refugee Board, established by President Franklin D. Roosevelt in January 1944, was a U.S. executive agency created to aid civilian victims of the Nazi and Axis powers...
in January 1944. The Board allowed an increasing number of Jews to enter the U.S. in 1944 and 1945; as many as 200,000 Jews were saved in this way.
Hurwitz (1991) argues that in late 1943, the Treasury Department drafted a report calling for the creation of a special rescue agency for European Jewry. At the same time, several congressmen connected with the "Bergson Boys" introduced a resolution also calling for the creation of such an agency. On January 16, 1944, Morgenthau presented Roosevelt with the Treasury report, and the president agreed to create the War Refugee Board
War Refugee Board
The War Refugee Board, established by President Franklin D. Roosevelt in January 1944, was a U.S. executive agency created to aid civilian victims of the Nazi and Axis powers...
(WRB), the first major attempt of the United States to deal with the annihilation of European Jews.
Execution of Nazi criminals
Morgenthau advocated the summary execution without trial of the top 50 or 100 alleged Nazi criminals and had some success, but in the end the Nuremberg trialsNuremberg Trials
The Nuremberg Trials were a series of military tribunals, held by the victorious Allied forces of World War II, most notable for the prosecution of prominent members of the political, military, and economic leadership of the defeated Nazi Germany....
became the chosen option.
Controversy surrounding the Morgenthau Plan
In 1944, Morgenthau proposed the Morgenthau Plan for postwar Germany, calling for Germany to be dismembered, partitioned into separate independent states, stripped of all heavy industry and forced to return to a pre-Industrial-Revolution agrarian economy. The Morgenthau plan is thought by a few to have been devised by Morgenthau's deputy, Harry Dexter WhiteHarry Dexter White
Harry Dexter White was an American economist, and senior U.S. Treasury department official, participating in the Bretton Woods conference...
, who was later accused of being a Soviet agent. At the Second Quebec Conference
Second Quebec Conference
The Second Quebec Conference was a high level military conference held during World War II between the British, Canadian and American governments. The conference was held in Quebec City, September 12, 1944 - September 16, 1944, and was the second conference to be held in Quebec, after "QUADRANT"...
on September 16, 1944, Roosevelt and Morgenthau persuaded the initially very reluctant British Prime Minister Winston Churchill
Winston Churchill
Sir Winston Leonard Spencer-Churchill, was a predominantly Conservative British politician and statesman known for his leadership of the United Kingdom during the Second World War. He is widely regarded as one of the greatest wartime leaders of the century and served as Prime Minister twice...
to agree to the Morganthau plan, likely using a $6 billion Lend Lease agreement to do so. Churchill chose however to narrow the scope of Morgenthau's proposal by drafting a new version of the memorandum, which ended up being the version signed by the two statesmen. The gist of the signed memorandum was "This programme for eliminating the war-making industries in the Ruhr
Ruhr Area
The Ruhr, by German-speaking geographers and historians more accurately called Ruhr district or Ruhr region , is an urban area in North Rhine-Westphalia, Germany. With 4435 km² and a population of some 5.2 million , it is the largest urban agglomeration in Germany...
and in the Saar is looking forward to converting Germany into a country primarily agricultural and pastoral in its character."
The plan faced opposition in Roosevelt's cabinet, primarily from Henry L. Stimson
Henry L. Stimson
Henry Lewis Stimson was an American statesman, lawyer and Republican Party politician and spokesman on foreign policy. He twice served as Secretary of War 1911–1913 under Republican William Howard Taft and 1940–1945, under Democrat Franklin D. Roosevelt. In the latter role he was a leading hawk...
(see also his memorandum), and when the plan was leaked to the press, there was public criticism of Roosevelt. The President's response to inquiries was to deny the press reports. As a consequence of the leak, Morgenthau was in bad favor with Roosevelt for a time.
German Propaganda
Propaganda
Propaganda is a form of communication that is aimed at influencing the attitude of a community toward some cause or position so as to benefit oneself or one's group....
Minister
Minister (government)
A minister is a politician who holds significant public office in a national or regional government. Senior ministers are members of the cabinet....
Joseph Goebbels
Joseph Goebbels
Paul Joseph Goebbels was a German politician and Reich Minister of Propaganda in Nazi Germany from 1933 to 1945. As one of Adolf Hitler's closest associates and most devout followers, he was known for his zealous oratory and anti-Semitism...
used the leaked plan, with some success, to encourage the German people to persevere in their war efforts so that their country would not be turned into a "potato field." General George Marshall
George Marshall
George Catlett Marshall was an American military leader, Chief of Staff of the Army, Secretary of State, and the third Secretary of Defense...
complained to Morgenthau that German resistance had strengthened. Hoping to get Morgenthau to relent on his plan for Germany, Roosevelt's son-in-law, Lt. Colonel John Boettiger, who worked in the United States War Department, explained to Morgenthau how the American troops that had had to fight for five weeks against fierce German resistance to capture Aachen
Aachen
Aachen has historically been a spa town in North Rhine-Westphalia, Germany. Aachen was a favoured residence of Charlemagne, and the place of coronation of the Kings of Germany. Geographically, Aachen is the westernmost town of Germany, located along its borders with Belgium and the Netherlands, ...
and complained to him that the Morgenthau Plan was "worth thirty divisions to the Germans." In late 1944, Roosevelt's election opponent, Thomas Dewey
Thomas Dewey
Thomas Edmund Dewey was the 47th Governor of New York . In 1944 and 1948, he was the Republican candidate for President, but lost both times. He led the liberal faction of the Republican Party, in which he fought conservative Ohio Senator Robert A. Taft...
, said it was worth "ten divisions". Morgenthau refused to relent.
On May 10, 1945, Truman signed the U.S. occupation directive JCS 1067. Morgenthau told his staff that it was a big day for the Treasury, and that he hoped that "someone doesn't recognize it as the Morgenthau Plan." The directive, which was in effect for over two years directed the U.S. forces of occupation to "…take no steps looking toward the economic rehabilitation of Germany".
In occupied Germany Morgenthau left a direct legacy through what in OMGUS
Office of Military Government, United States
The Office of Military Government, United States was the United States military-established government created shortly after the end of hostilities in occupied Germany in World War II. Under General Lucius D...
commonly were called "Morgenthau boys". These were U.S. Treasury officials whom General Dwight D. Eisenhower
Dwight D. Eisenhower
Dwight David "Ike" Eisenhower was the 34th President of the United States, from 1953 until 1961. He was a five-star general in the United States Army...
had "loaned" in to the Army of occupation. These people ensured that JCS 1067 was interpreted as strictly as possible. They were most active in the first crucial months of the occupation, but continued their activities for almost two years following the resignations of Morgenthau in mid-1945, and some time later, of their leader, Colonel Bernard Bernstein, who was "the repository of the Morgenthau spirit in the army of occupation". They resigned when, in July 1947, JCS 1067 was replaced by JCS 1779 which instead stressed that "An orderly, prosperous Europe requires the economic contributions of a stable and productive Germany."
Morgenthau's legacy was also seen in the plans for preserving German disarmament by significantly reducing German economic might. (see also The industrial plans for Germany)
In October 1945 Morgenthau published a book in which he described and motivated the Morgenthau plan in great detail. Roosevelt had granted permission for the book the evening before his death, when dining with Morgenthau at Warm Springs
Warm Springs, Georgia
Warm Springs is a city in Meriwether County, Georgia, United States. The population was 478 at the 2010 census.-History:Warm Springs first came to prominence in the 19th century as a spa town, due to its mineral springs which flow constantly at nearly 32 °C...
. Morgenthau had asked Churchill for permission to also include the text of the then still secret "pastoralization" memorandum signed by Churchill and FDR at Quebec
Second Quebec Conference
The Second Quebec Conference was a high level military conference held during World War II between the British, Canadian and American governments. The conference was held in Quebec City, September 12, 1944 - September 16, 1944, and was the second conference to be held in Quebec, after "QUADRANT"...
but permission was denied. In November 1945 General Dwight D. Eisenhower
Dwight D. Eisenhower
Dwight David "Ike" Eisenhower was the 34th President of the United States, from 1953 until 1961. He was a five-star general in the United States Army...
, the Military Governor of the U.S. Occupation Zone
Allied Occupation Zones in Germany
The Allied powers who defeated Nazi Germany in World War II divided the country west of the Oder-Neisse line into four occupation zones for administrative purposes during 1945–49. In the closing weeks of fighting in Europe, US forces had pushed beyond the previously agreed boundaries for the...
, approved the distribution of 1000 free copies of the book to American military officials in occupied Germany. Historian Stephen Ambrose
Stephen Ambrose
Stephen Edward Ambrose was an American historian and biographer of U.S. Presidents Dwight D. Eisenhower and Richard Nixon. He was a long time professor of history at the University of New Orleans and the author of many best selling volumes of American popular history...
draws the conclusion that, despite Eisenhower's later claims that the act was not an endorsement of the Morgenthau plan, Eisenhower both approved of the plan and had previously given Morgenthau at least some of his ideas on how Germany should be treated.
Following his resignation, along with other prominent individuals such as the former first lady, Eleanor Roosevelt
Eleanor Roosevelt
Anna Eleanor Roosevelt was the First Lady of the United States from 1933 to 1945. She supported the New Deal policies of her husband, distant cousin Franklin Delano Roosevelt, and became an advocate for civil rights. After her husband's death in 1945, Roosevelt continued to be an international...
, Morgenthau remained for several years an active member of the group campaigning for a "harsh peace" for Germany.
Bretton Woods
United Nations Monetary and Financial Conference
The United Nations Monetary and Financial Conference, commonly known as the Bretton Woods conference, was a gathering of 730 delegates from all 44 Allied nations at the Mount Washington Hotel, situated in Bretton Woods, New Hampshire, to regulate the international monetary and financial order after...
, which established the Bretton Woods system
Bretton Woods system
The Bretton Woods system of monetary management established the rules for commercial and financial relations among the world's major industrial states in the mid 20th century...
, the International Monetary Fund
International Monetary Fund
The International Monetary Fund is an organization of 187 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world...
and the International Bank for Reconstruction and Development
International Bank for Reconstruction and Development
The International Bank for Reconstruction and Development is one of five institutions that compose the World Bank Group. The IBRD is an international organization whose original mission was to finance the reconstruction of nations devastated by World War II. Now, its mission has expanded to fight...
(the World Bank
World Bank
The World Bank is an international financial institution that provides loans to developing countries for capital programmes.The World Bank's official goal is the reduction of poverty...
).
Later career and legacy
Morgenthau resigned in mid-1945, when TrumanHarry S. Truman
Harry S. Truman was the 33rd President of the United States . As President Franklin D. Roosevelt's third vice president and the 34th Vice President of the United States , he succeeded to the presidency on April 12, 1945, when President Roosevelt died less than three months after beginning his...
became President and Morgenthau's advice was no longer sought. He devoted the remainder of his life to working with Jewish philanthropies, and also became a financial advisor to Israel
Israel
The State of Israel is a parliamentary republic located in the Middle East, along the eastern shore of the Mediterranean Sea...
. Tal Shahar
Tal Shahar
Tal Shahar is a moshav in central Israel. Located near Gederot , it falls under the jurisdiction of Mateh Yehuda Regional Council. According to the 2009 census it had a population of 1,057....
, an Israeli moshav
Moshav
Moshav is a type of Israeli town or settlement, in particular a type of cooperative agricultural community of individual farms pioneered by the Labour Zionists during the second aliyah...
(agricultural community) near Jerusalem, created in 1948, was named in his honor (Morgenthau means "morning dew" in German
German language
German is a West Germanic language, related to and classified alongside English and Dutch. With an estimated 90 – 98 million native speakers, German is one of the world's major languages and is the most widely-spoken first language in the European Union....
, and so does the Hebrew name "Tal Shahar").
Morgenthau died in Poughkeepsie, New York
Poughkeepsie (city), New York
Poughkeepsie is a city in the state of New York, United States, which serves as the county seat of Dutchess County. Poughkeepsie is located in the Hudson River Valley midway between New York City and Albany...
, in 1967. His son Robert M. Morgenthau
Robert M. Morgenthau
Robert Morris Morgenthau is an American lawyer. From 1975 until his retirement in 2009, he was the District Attorney for New York County, the borough of Manhattan.-Early life:...
was the District Attorney
District attorney
In many jurisdictions in the United States, a District Attorney is an elected or appointed government official who represents the government in the prosecution of criminal offenses. The district attorney is the highest officeholder in the jurisdiction's legal department and supervises a staff of...
of New York County from 1975 to 2009.
The 378 feet (115 m) United States Coast Guard Cutter
United States Coast Guard Cutter
Cutter is the term used by the United States Coast Guard for its commissioned vessels. A Cutter is or greater in length, has a permanently assigned crew, and has accommodations for the crew to live aboard...
Morgenthau is named in his honor.
Other information
As Secretary of the Treasury, Morgenthau was first person in the presidential line of successionPresidential Succession Act
The Presidential Succession Act establishes the line of succession to the powers and duties of the office of President of the United States in the event that neither a President nor Vice President is able to "discharge the powers and duties of the office." The current Presidential Succession Act...
from June 27 to July 3, 1945, following the resignation of Secretary of State Edward Stettinius and the U.S. Senate confirmation of James Byrnes
James Byrnes
James Byrnes may refer to:*James F. Byrnes , American statesman from South Carolina*Jim Byrnes , American actor and blues musician*James Byrnes , New South Wales politician...
. Had President Truman died, resigned or been removed from office otherwise during those seven days, Morgenthau would have become Acting President of the United States
Acting President of the United States
Acting President of the United States is a reference to a person who is legitimately exercising the Presidential powers even though that person does not hold the office of the President of the United States in his own right....
until the end of the presidential term in 1949.
Primary sources
- Blum, John Morton, ed. From the Morgenthau Diaries, a 3-volume narrative of Morgenthau's New Deal years (1928–45) based very closely on his diary.; abridged edition: Roosevelt and Morgenthau: A Revision and Condensation of From the Morgenthau Diaries (1970)
External links
- Time Magazine October 15, 1945 Morgenthau's Hope Reaction to the publication of Morgenthau's book "Germany is Our Problem" where he promotes the "Morgenthau Plan".
- Time Magazine September 22, 1967 Vengeance v. Vision Review of Years of War, 1941-1945; From the Morgenthau Diaries by John Morton Blum.
- U.S. Treasury - Biography of Secretary Morgenthau
- Stay the Hand of Vengeance by Gary Bass