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The Lend-Lease Act and Its Operations
President Franklin D. Roosevelt signed (March 11, 1941) the lease-lend bill (H.R. 1776) for lending or leasing military equipment of the United States to the democracies of the world after the measure had passed Congress. The vote in the Senate (March 8) was 60 to 31 with 49 Democrats, 10 Republicans and 1 Independent for, and 13 Democrats, 17 Republicans and 1 Progressive against. In the House on the final or Senate amended measure the vote (March 11) was 317 to 71 with 220 Democrats, 94 Republicans and 3 Progressives for, and 15 Democrats, 54 Republicans, 1 American Labor and 1 Farmer-Laborite against. The original measure was passed in the House (Feb. 8) by a vote of 260 to 165. Voting for the bill were 236 Democrats and 24 Republicans; against it were 25 Democrats, 135 Republicans, 1 American Labor, 3 Progressives and 1 Farmer-Laborite.
The text of the measure follows with the Senate amendments to the House bill in Italics:
AN ACT FURTHER TO PROMOTE THE DEFENSE OF THE UNITED STATES, AND FOR OTHER PURPOSES.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, that this act may be cited as "an act to promote the defense of the United States."
As used in this act
(A) The term "defense article" means: (1) Any weapon, munition, aircraft, vessel, or boat;
(2) Any machinery, facility, tool, material or supply necessary for the manufacture, production, processing, repair, serving, or operation of any article described in this subscription;
(3) Any component material or part of or equipment for any agricultural, industrial or other article described in this subsection;
(4) Any other commodity or article for defense. Such term "defense article" includes any article described in this subsection; manufactured or procured pursuant to Section 3, or to which the United States or any foreign government has or hereafter acquires title, possession, or control.
(B) The term "defense information" means any plan, specification, design, prototype, or information pertaining to any defense article.
(A) Notwithstanding the provisions of any other law, the President may, from time to time, when he deems it in the interest of national defense, authorize the Secretary of War, the Secretary of the Navy, or the head of any other department or agency of the government:
(1) To manufacture in arsenals, factories and shipyards under their jurisdiction, or otherwise procure to the extent to which funds are made available therefor, or contracts are authorized from time to time by the Congress, or both, any defense article for the government of any country whose defense the President deems vital to the defense of the United States.
(2) To sell, transfer title, exchange, lease, lend, or otherwise dispose of, to any such government any defense article, but no defense article not manufactured or procured under paragraph (1) shall in any way be disposed of under this paragraph, except after consultation with the chief of staff of the Army or the chief of naval operations of the Navy, or both. The value of defense articles disposed of in any way under authority of this paragraph, and procured from funds heretofore appropriated, shall not exceed $1,300,000,000. The value of such defense articles shall be determined by the head of the department or agency concerned or such other department, agency or officer as shall be designated in the manner provided in the rules and regulations issued hereunder. Defense articles procured from funds hereafter appropriated to any department or agency of the government, other than from funds authorized to be appropriated under this act, shall not be disposed of in any way under authority of this paragraph except to the extent hereafter authorized by the Congress in the acts appropriating such funds or otherwise.
(3) To test, inspect, prove, repair, outfit, recondition, or otherwise to place in good working order to the extent to which funds are made available therefor, or contracts were authorized from time to time by the Congress, or both any defense article for any such government or to procure any or all such services by private contract.
(4) To communicate to any such government any defense information, pertaining to any defense article furnished to such government under paragraph (2) of this subsection.
(5) To release for export any defense article disposed of in any way under this subsection to any such government.
(B) The terms and conditions upon which any such foreign government receives any aid authorized under subsection (2) shall be those which the President deems satisfactory, and the benefit to the United States may be payment or repayment in kind or property, or any other direct or indirect benefit which the President deems satisfactory.
(C) After June 30, 1943, or after the passage of a concurrent resolution by the two houses before June 30, 1943, which declared that the powers conferred by or pursuant to subsection (a) are no longer necessary to promote the defense of the United States, neither the President nor the head of any department or agency shall exercise any of the powers conferred by or pursuant to subsection (A); except that until July 1, 1946, any of such powers may be exercised to the extent necessary to carry out a contract or agreement with such a foreign government made before July 1, 1943, or before the passage of such concurrent resolution whichever is the earlier.*
(D) Nothing in this act shall be construed to to authorize or to permit the authorization of convoying vessels by naval vessels of the United States.
(E) Nothing in this act shall be construed to authorize or to permit the authorization of the entry of any American vessel into a combat area in violation of Section 3 of the Neutrality Act of 1939.
(A) The Secretary of War, the Secretary of the Navy, or the head of any other department or agency of the government involved shall, when any such defense article or defense information is exported, immediately inform the department or agency designated by the President to administer Section 6 of the act of July 2, 1940 (54 Stat. 714). of the qualities, character, value, terms of disposition, and destination of the article and information so exported.
(B) The President from time to time, but not less frequently than once every ninety days, shall transmit to the Congress a report of operations under this act except such information as he deems incompatible with the public interest to disclose. Reports provided for under this subsection shall be transmitted to the secretary of the Senate or the clerk of the House of Representatives, as the case may be, if the Senate or the House of Representatives, as the case may be, is not in session.
(A) There is hereby authorized to be appropriated from time to time, out of any money in the Treasury not otherwise appropriated, such amounts as may be necessary to carry out the provisions and accomplish the purpose of this act.
(B) All money and all property which is converted into money received under Section 3 from any government shall, with the approval of the Director of the Budget, revert to the respective appropriation or appropriations out which funds were expended with respect to the defense article or defense information for which such consideration is received, and shall be available for expenditure for the purpose for which such expended funds were appropriated by law, during the fiscal year in which such funds are received and the ensuing fiscal year but in no event shall any funds so received be available for expenditure after June 30, 1946.
The Secretary of War, the Secretary of the Navy, and the head of the department or agency shall in all contracts or agreements for the disposition of any defense article or defense information fully
If any provision of this act or the application of such provision to any circumstance shall be held invalid, the validity of the remainder of the act and the applicability of such provision to other circumstances shall not be affected thereby.
Nothing in this act shall be construed to change existing law relating to the use of the land and naval forces of the United States, except in so far as such use relates to the manufacture, procurement, and repair of defense articles, the communication of information and other noncombatant purposes enumerated in this act.
*This Senate-approved provision is merely a revised version of a similar section in the Houseapproved bill.
An act providing $7,000,000,000 to put into effect the lease-lend bill was passed by Congress and signed by President Roosevelt (March 27). The House passed the bill (March 19) by a vote of 377 to 55 and the Senate (March 24) by a vote of 67 to 9. The $7,000,000,000 appropriation is the
Department or Agency
Department of Agriculture.
$200,000,000 for testing, repairing and outfitting. $50,000,000 for administrative expenses. The President designated Harry L. Hopkins to advise and assist in carrying out the responsibilities placed upon the President by the Act. Mr. Hopkins was designated (Aug. 28, 1941) Special Assistant to the President in charge of all defense aid by the United States and Edward R. Stettinius, Jr., The President changed (Sept. 16, 1941) the title was designated Lease-Lend Administrator. of Mr. Stettinius to Special Assistant to expedite Lend-Lease aid deliveries.
There was made available (March, 1941) for Lend-Lease and under the Defense Aid Supplemental Appropriation Act $7,000,000,000. There was appropriated (Oct., 1941) an additional $5,985,000,000. At the time he signed the October appropriation measure, the President issued an executive order creating an Office of Lend-Lease Administration in the Office of Emergency Management and gave to Mr. Stettinius the authority to name the entire staff, including deputy and assistant administrators.
Of the $7,000,000,000 appropriation $13,000,000 was used to reimburse the Treasury Department for Coast Guard vessels transferred to the United Kingdom, leaving $6,987,000,000 available for allocation. Of this sum $6,281,237,421, or approximately 90 per cent, had been allocated and $3,555,587,895 obligated by Aug. 31, 1941. Expenditures (May 31, 1941) were $68,078,942 and increased to $388,912,155 (Aug. 31, 1941).
Allocations, obligations and expenditures by departments as of Aug. 31, 1941, follow:
Federal Security Agency.
Department of State.
Executive Office of the President
Office for Emergency Management.
Bureau of the Budget.
5,270.89 43,108.90 2,622.75
Allocations, obligations and expenditures by appropriation catagories as of Aug. 31, 1941, follow:
920; other, $614,595.
Of the ordnance and ordnance stores allocations | $29,150,000; cotton, $37,758,000; tobacco, $37,427,$439,331,951 was artillery ammunition, $357.480,500 was for anti-aircraft material, and $132,525,250 was for aircraft armament.
Secretary of War Stimson reported (Nov. 6, 1941) that American factories had produced approximately $80,000,000 worth of arms and ammunition in October, 1941, for the American Army and for Lend-Lease aid.
Selective Training and Service Act of 1940
Source: National Headquarters Selective Service System
Congress passed (Sept. 14, 1940) and President | morally unfit for service; men with dependents. Roosevelt signed (Sept. 16) the Selective Training and Service Act of 1940, the first peace time military draft in the history of the United States.
The Act was devised as part of the National Defense Program to give military training to males between the ages of 21 and 36 for one year and provided that not more than 900,000 should be under training at one time. It was planned originally to induct 800,000 by July 1, 1941. However, after inducting approximately 700,000 men by Aug. 1, 1941, Congress eliminated the 900,000 limitation and provided for the deferment of men over 28.
Dr. Clarence Dykstra, President of the University of Wisconsin, was appointed Director of Selective Service and was sworn in on Oct. 17, 1940. Dr. Dykstra resigned on April 1, 1941, and Brigadier General Lewis B. Hershey, who had served as Executive Officer and Deputy Director was named Director on July 31, 1941.
Dr. Dykstra resigned April 1, 1941, and General Hershey has since been serving as Acting Director. Three days after the passage of the Act, the Advisory Committee was appointed, registration day set for October 16 and the lottery to determine the order of the call to service was set for October 29.
The purpose of the Act is to provide a fair and just system of raising manpower to increase the strength and efficiency of the armed forces with the least possible disturbance of the social, industrial and economic welfare.
The Act provides that:
Every male citizen and alien residing in the United States between the ages of 21 and 36 on the day or days fixed must register, with a few certain specified exceptions, on dates specified by the President.
Whether or not a state of war exists, the President may increase the forces from time to time as the national interest requires so long as there are never more than 900,000 men in training and service in any one time under this Act.
Physical examination by the Military Services shall be given the men upon induction and discharge.
Each man inducted shall serve 12 months, after which he will be placed in a reserve component. The same pay allowances, pensions, disability and death compensation provided for enlisted men and officers of like grade and length of service is assured inductees under this Act.
These inductees shall not be employed beyond the limits of the Western Hemisphere, except in the territories and possession of the U. S., including the Philippine Islands.
Classification, selection and induction under the Act shall be made in an impartial manner under such regulations as prescribed by the President. The number of inductees shall be based on the State's proportion of eligible men compared to the total number of the Nation's eligibles, except that credits shall be given for residents of each subdivision who are in the land and naval forces.
The Act, as amended, defers from training and service the following men: Those who have satisfactorily served three or more consecutive years in the Regular Army, Navy, Marine Corps or Coast Guard, and also former National Guardsmen, former Reserve Officers, under certain conditions; the Vice President, Governors, members of State and Federal legislatures, Judges of Courts of Record.
No exception from registration or exemption or deferment from training and service under the Act continues after the cause ceases to exist.
Inductees leaving non-temporary positions with government or private industry are protected by the Act and are to be reinstated with no loss of seniority or privilege and may not be discharged without cause for at least one year after their return. The District Courts of the United States are given jurisdiction in cases arising under this provision.
A personnel division has been organized to secure re-employment and employment for men as they complete the training period.
No vacancy created by induction, the act expressly provides, is to be filled by any member of the Communist party or the German-American Bund.
The President is authorized to prescribe rules for deferment of: Certain men whose occupation is found necessary to national interest and also certain important office holders in the state and federal service; those physically, mentally
Recognized students and ministers of Religion must register, but are not subject to military service.
Provisions for noncombatant and non-military service by conscientious objectors is made.
The President is empowered to place obligatory orders with any firm or individual for such defense materials as are required and which are of the nature usually produced or capable of being produced by such firm or individual. Upon refusal to comply, authority is given to take immediate possession and such failure is deemed a felony which upon conviction carries a penalty of three years, imprisonment and a fine not exceeding $50,000. Just compensation for materials and rent is assured.
The Act calls for the creation of a Selective Service System, which operates through civilian lccal boards of three or more members who are residents of that local board area, and other such agencies as may be necessary to carry out the provision of this Act shall be created. These local boards, under Presidential rules and regulations have power, subject to appeal, over all questions of inclusion of, exemption or deferment for, training and service within its jurisdiction.
The President is authorized to appoint by and with consent of the Senate a Director of Selective Service at compensation not to exceed $10,000 a year; to utilize the services of any department officers or agents of the United States and the several States; to delegate authority vested in him under this Act to such persons as he may designate. Voluntary services may be accepted.
The Chief of Finance U. S. Army is designated as fiscal, disbursing and accounting agent for Selective Service.
Persons who fail to comply with the Act or who violate or aid and abet in its violation may be imprisoned for five years or fined $10,000 or both, or suffer such penalty as a court martial shall direct, if such person is under the jurisdiction of the armed forces.
The monthly base pay of enlisted men of the Army and Marine Corps shall be as follows: Enlisted men of the first grade, $126; enlisted men of the second grade, $84; enlisted men of the third grade, $72; enlisted men of the fourth grade, $60; enlisted men of the fifth grade, $54; enlisted men of the sixth grade, $36; enlisted men of the seventh grade, $30; except that the monthly base pay of enlisted men with less than four months' service during their first enlistment period and of enlisted men of the seventh grade whose inefficiency or other unfitness had been determined under regulations prescribed by the Secretary of War, and the Secretary of the Navy, respectively, shall be $21. The pay for specialists' ratings, which shall be in addition to monthly base pay, shall be as follows: First class, $30; second class, $25; third class, $20; fourth class, $15; fifth class, $6; sixth class, $3.
Enlisted men of the Army and the Marine Corps shall receive as a permanent addition to their pay, an increase of 10 per centum of their base pay and pay for specialists' rating upon completion of the first four years of service, and an additional increase of 4 per centum of such base pay and pay for specialists' ratings for each four years of service thereafter, but the total of such increases shall not exceed 25 per centum. Enlisted men of the Navy shall be entitled to receive at least the same pay and allowances as are provided for enlisted men in similar grades in the Army and Marine Corps.
In August, 1941, Congress extended the original peace-time training period to not more than 30 months and appropriated a bonus of $10 a month for each month served in excess of 12.
When used in the Act in a geographical sense, the term "United States" shall refer to the several States, the District of Columbia, Alaska, Hawaii, and Puerto Rico.
On the first registration day, including the territories, the registration total was 16,628,493. Local boards received the registration cards, shuffled them and gave each registrant a number. A series of numbers was drawn in Washington on lottery day (Oct. 29). When the first number was drawn, each man who held a corresponding number in the file of the local boards was put down as the first liable to service from his local group and so on until all the numbers were drawn out. Questionnaires were then sent to the registrants in the order in which their numbers were drawn. The questionnaires asked the number of dependents, physical disabilities, etc. The registrants were classified as shown on the next page.
Classification of Registrants
Class I-A: Available; fit for general military service. (Class I-A-O: Conscientious objector; available for noncombatant service only; fit for general service). B: Available; fit only for limited military service. (Class I-B-O: Conscientious objector; available for noncombatant service only; it only for limited service). C: Member of land or naval forces or Coast Guard of United States. H: Man who has reached twenty-eighth birthday on July 1 without having been inducted.
Class II-A: Man necessary in his civilian activity. B: Man necessary to national defense. Class III-A: Man with dependents.
Class IV-A: Man who has completed service. B: Official deferred by law. C: Nondeclarant alien. D: Minister of religion or divinity student. E: Conscientious objector; available only for civilian work of national importance; fit for general service. (Class IV-E-LS: Conscientious objector; available only for civilian work of national importance; fit only for limited service). (Class IV-E-H: Conscientious objector formerly classified in Class IV-E or Class IV-E-LS, who has reached twenty-eighth birthday on July 1 without being assigned to work of national importance). F: Physically, mentally, or morally unfit.
Meanwhile the Research and Statistics Division of National Headquarters, Selective Service System in Washington, determines from time to time the quota of each State, based on population and number of men from that State already in the Army
or Navy. From this quota were deducted the number of men who had volunteered for a year's training. Enough men then were taken from Class I in each State to fill the quotas. These men are called in the order their numbers were drawn in the lottery.
Although 800,000 men originally were scheduled to be called by July 1, 1941, a much smaller number were inducted by that date because of unexpectedly large number of enlistments in the regular Army.
Because of the elimination of the 900,000 limitation, the War Department can call in men as they are needed.
Legislation designed to afford debt relief to men who cannot meet their financial obligations because of the call to military training was signed (Oct. 18) by President Roosevelt. The law gives the courts wide latitude to stay eviction proceedings where the rent is not more than $80 a month, to prevent foreclosures and to delay judgments. Payment of premiums on insurance policies up to $5,000 face amount may be deferred while the holders are in service and for one year thereafter. Tax assessments, including income payments, may be deferred until six months after military service has ended. The law also calls for adequate legal representation in court suits for defendants who are absent on military service and courts are authorized to stay execution of judgments or to reopen cases for further evidence.
only limited service or because of mental, nervous, cardiovascular, and pulmonary diseases, and musculo-skeletal defects are incapable of rehabilitation for even limited service and are, therefore, not being considered under the present rehabilitation program for Selective Service registrants.
900,000 OF SELECTIVE SERVICE On Oct. 10, 1941, Brig. Gen. Louis B. Hershey, Director of the Selective Service System, reported to President Roosevelt that about 50 percent of the approximately two million registrants who have been examined for induction into the Army of the United States under the Selective Training and Service Act of 1940 have been disqualified because of physical, mental, or educational reasons. Of the approximately one million rejected, 900,000 or about 90 percent, were found to be physically or mentally unfit.
The physical rejections of registrants were distributed as follows:
Certain types of venereal diseases, operable hernias, deficiencies in teeth and vision, and other minor defects will be corrected in cases where the Army determines that the registrant will then be acceptable for general military service. The registrant will have the privilege of having the services performed by his family physician or dentist in his own community. The cost of this rehabilitation program will be borne by the Federal Government.
Release of Enlisted Men-Details for the release of nearly 200,000 men in the second half of 1941 were made public by the War Department in August. The allotments were as follows:
First Army, 39,300; Second, 19,300; Third, 46,000; Fourth, 16,200.
Armored Force, 8,700; Arms and Services with the Army Air Forces, 5,100.
Panama Canal Department, 4,400; Puerto Rican, 3,000; Hawaiian, 5,000; Philippine, 1,200. Alaska Defense Command, 1,400.
First Corps Area, 900; Second, 3,200; Third, 8,300; Fourth, 11,000; Fifth, 1,400; Sixth, 2,000; Seventh, 5,300; Eighth, 6,300: Ninth, 5,000. Dependency and hardship cases ranked first. In other cases one year of service was a prerequisite to release.
LIFE INSURANCE FOR SELECTIVE SERVICE MEN In the year since Oct. 8, 1940, when the National Service Act was adopted, draftees paid approximately $7,381,365 in premiums for government life insurance policies totaling $2,077,416,000. There have been approximately 610,000 policies issued through the National Service Insurance Section and only 419 claims for benefits.
loss of their policies for non-payment of premiums during the training period or one-year thereafter. If a policy is to lapse for non-payment of premium, the government sends to the life insurance company a certificate, bearing interest, which becomes security for the premiums due.
The assistance act made voluntary life insurance available to all enlisted and commissioned personnel of armed forces. The draftee is given 120 days in which to determine whether he wants a policy, and in what amounts. The policy is for a fiveyear term contract, available for any amount from $1,000 to $5,000, and convertible before the end of the fifth year to whole life, twenty-payment life or thirty-payment life.
The government also protects draftees against
The government is protected by executing a lien on the policy for the amount of its certificate and interest. At the end of the draftee's service, the policyholder has one year in which to pay past due premiums plus interest. If he fails to do so, the policy lapses and the government executes its lien upon the cash surrender value.
These measures are in addition to those providing for restoration of former employment on completion of the training period.
A 21-year-old selectee pays 65 cents a month for a $1,000 policy.
Nation's 21-35 Man Power Put at 16,072,144
The United States Bureau of the Census informed the Selective Service System (April 19, 1941) that the man power by year ages of the country was:
Age White White Age White White Age White White Age White
Registrants in Draft and Trainee Quotas by States
Source: National Headquarters Selective Service System
5,196 P. Rico...
144,386 23,376) 13,089 10,287
INDUCTION OF REGISTRANTS BY STATES, AS OF SEPT. 30, 1941
U. S. (and ter.)
U. S. (Contin.)
Dist. of Col..
Composition of the United States Army
The Army of approximately 100,000 officers and 1,400,000 enlisted men, and, as of June 30, 1941, was made up approximately as follows: Four field armies (29 divisions). Armored force (four divisions)
by giving noncombatant jobs to civilians. It is estimated that 40,000 enlisted men can be released for more active service if such a plan is adopted. The infantry was divided into square and triangular divisions. The 18 square divisions consist of 2 infantry brigades of 2 regiments each, and 1 artillery brigade of 3 regiments.
The 9 triangular divisions are organized on the 46,000 basis of 3 regiments of infantry, each of which is 160,000 ordinarily supported by 1 battalion of artillery to .120,000 form a combat team. An additional batallion of 35,000 heavier artillery is available for further reinforce13,500 ment. 150,000 118,000
The Army plans to increase its fighting personnel
The armament and strength of the three types of divisions, as of today, is shown in the following table:
37 mm. anti-tk. guns.
Costs jump for the completely motorized triangular division, with a per man initial equipment figure of $1,010, based on an enlisted strength of approximately 15,400 enlisted men. Armored divisions, slightly smaller with 12,000 enlisted men, have an initial equipment cost of $2,862
20 to 30 aimed shots per minute, as compared with the 10 to 15 shots possible with the older Springfield rifle. The rifleman's firepower is doubled by the new weapons.
Maneuvers of the 2nd Armored Division in the "Battle of Tennessee" focused the attention of the public on the fire power and importance of the Armored Force in the American scheme of defense. The amount of fire power-ammunition and gunspacked by the 381 light and medium tanks, and 2,700 vehicles that comprise the mechanized, armored division is 600 tons of ammunition of all classes for one day's fire (the theoretical, average total amount of ammunition required for all weapons of a unit in one day's fighting) of an armored division, as compared with 39 tons for the old square division, and 55 tons for the motorized, triangular division.