New Deal
 Campaign against corruption
 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 Administration (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 Morgenthau 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:
 Jewish refugees
 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 trials became the chosen option.
 The Morgenthau Plan
Main article: Morgenthau Plan
In 1944, Morgenthau proposed the Morgenthau Plan for postwar Germany, calling for Germany to lose the heavy industry, and the Ruhr area "should not only be stripped of all presently existing industries but so weakened and controlled that it can not in the foreseeable future become an industrial area". Germany would keep its rich farmlands in the east. However Stalin insisted on the Oder-Neisse border, which moved those farming areas out of Germany. Therefore the original Morgenthau plan had to be dropped, Weinberg argues, because it was "too soft on the Germans, not too hard as some still imagine."
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 Morgenthau 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, 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 titled Germany Is Our Problem 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.
 Bretton Woods
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).
 Later career and legacy
Morgenthau resigned in mid-1945, when Truman 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-foot (115 m) United States Coast Guard Cutter Morgenthau is named in his honor.
 Other information
As Secretary of the Treasury, Morgenthau was the first person in the presidential line of succession from June 27 to July 3, 1945, between the resignation of Secretary of State Edward Stettinius and the U.S. Senate confirmation of James Byrnes to said office. Had President Truman died, resigned, or been removed from office during those seven days, Morgenthau would have become Acting President of the United States until the end of the presidential term in 1949.
1. May 2000.
2. Goldberg, Richard Thayer (1981). The making of Franklin D. Roosevelt: triumph over disability. p. 116. ISBN 978-0-89011-564-0. LCCN 81017555.
3. Shlaes 2007, p. 163, 148.
4. Thorndike, Joseph J. (AUGUST 23, 2012). "TAX TROUBLES OF THE RICH AND FAMOUS, 1930S EDITION - 2012 TNT 166-3". Tax Analysts.
5. Nasaw, David (September 6, 2001). The Chief: The Life of William Randolph Hearst. 500: Mariner Books. pp. 704. ISBN 978-0618154463.
6. Blum, John Morton (1970). Roosevelt and Morgenthau. Boston, Massachusetts: Houghton Mifflin Harcourt. p. 256. LCCN 75096063. OCLC 68158.
7. Folsom, Burton W., Jr. (2008). New Deal or Raw Deal?: How FDR's Economic Legacy Has Damaged America. Simon & Schuster. ISBN 978-1-4165-9222-8. LCCN 2008020381. http://books.google.com?id=HwTPk00QMHIC&printsec=frontcover.
8. Repetto 2004.
9. Krugman, Paul (November 8, 2008). "New Deal economics". The New York Times. http://krugman.blogs.nytimes.com/2008/11/08/new-deal-economics/. Retrieved 2012-04-30.
10. Shlaes 2007, p. 341–342.
11. Zelizer 2000.
12. Morgenthau, Henry, Jr. (May 9 1939) (PDF, 1.9 MB). Henry Morgenthau Diary, Microfilm Roll #50. http://www.burtfolsom.com/wp-content/uploads/2011/Morgenthau.pdf.
13. Penkower 1980.
14. Askin, Kelly Dawn (1997). War Crimes Against Women: Prosecution in International War Crimes Tribunals. Martinus Nijhoff Publishers. p. 105. ISBN 978-90-411-0486-1. LCCN 97035851. http://books.google.com/?id=ThfzGvSvQ2UC&pg=PA105&dq=morgenthau+%22firing+squad%22&cd=4#v=onepage&q=morgenthau%20%22firing%20squad%22&f=false.
15. Morgenthau. "Suggested Post-Surrender Program for Germany". http://docs.fdrlibrary.marist.edu/psf/box31/t297a01.html.
16. Gerhard L. Weinberg (2005). Visions of Victory: The Hopes of Eight World War II Leaders. Cambridge University Press. p. 183. http://books.google.com/books?id=0eYhHoIPEm4C&pg=PA183.
17. Chase, John L. (May 1954). "The Development of the Morgenthau Plan Through the Quebec Conference". The Journal of Politics 16 (2): 324–359. doi:10.2307/2126031. http://journals.cambridge.org/action/displayAbstract?fromPage=online&aid=6326320.
18. "The Policy of Hate". Time. October 2, 1944. http://www.time.com/time/magazine/article/0,9171,933072-1,00.html. Retrieved 2012-04-30.
19. "The Battle for Peace Terms". Time. October 9, 1944. http://www.time.com/time/magazine/article/0,9171,803331,00.html. Retrieved 2012-04-30.
"Office of Strategic Services — Official Dispatch, Ref. No. 250". Franklin D. Roosevelt Presidential Library and Museum, Marist College. http://www.fdrlibrary.marist.edu/psf/box32/t298m06.html. Retrieved 2012-04-30.
· Report on the Morgenthau Diaries, p. 41ff[title incomplete]
· Beschloss 2002, p. 172–173.
· Beschloss 2002, p. 233.
- Beschloss, Michael (2002). The Conquerors: Roosevelt, Truman and the Destruction of Hitler's Germany, 1941-1945. Simon & Schuster. ISBN 978-0-684-81027-0. LCCN 2002030331. Devotes much attention to Morgenthau Plan
- Hurwitz, Ariel (1991). "The Struggle over the Creation of the War Refugee Board (WRB)". Holocaust and Genocide Studies 6 (1): 17–31. doi:10.1093/hgs/6.1.17.
- Irey, Elmer Lincoln (1948). The Tax Dodgers: The Insider Story of the T-Men's War with America's Political and Underworld Hoodlums. Greenburg. ASIN B002DIUAAW.
- May, Dean L. (1981). From New Deal to New Economics: The American Liberal Response to the Recession of 1937. ISBN 978-0-8240-4862-4. LCCN 80008466.
- May, Dean L. (2000). Morgenthau, Henry, Jr.. American National Biography. Oxford University Press. http://www.anb.org/articles/06/06-00452.html.
- Penkower, Monty Noam (1980). "Jewish Organizations and the Creation of the U.S. War Refugee Board". Annals of the American Academy of Political and Social Science 450 (1): 122–139. doi:10.1177/000271628045000111.
- Petrov, Vladimir Nikolayevich (1967). Money and Conquest: Allied Occupation Currencies in World War II. Baltimore, Maryland: Johns Hopkins Press. ISBN 978-0-8018-0530-1. LCCN 66026685. OCLC 186795.
- Repetto, Thomas (2004). The American Mafia: A History of Its Rise to Power. Henry Holt & Company. ISBN 978-0-8050-7210-5. LCCN 2003056736.
- Shlaes, Amity (2007). The Forgotten Man. HarperCollins. pp. 163, 148. ISBN 978-0-06-621170-1. LCCN 2006049761.
- Schlesinger, Arthur M., Jr. (1957–1960). The Age of Roosevelt, vol. I–III. LCCN 56010293.
- Zelizer, Julian E. (June 2000). "The Forgotten Legacy of the New Deal: Fiscal Conservatism and the Roosevelt Administration, 1933-1938". Presidential Studies Quarterly 30 (2): 331–358. doi:10.1111/j.0360-4918.2000.00115.x. JSTOR 27552097.
·  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
William H. Woodin
Fred M. Vinson
Morgenthau, Henry, Jr.
20th century American politician and economist
Date of birth
May 11, 1891
Place of birth
New York City, United States
Date of death
February 6, 1967
Place of death
Poughkeepsie, New York, United States
- 1891 births
- 1967 deaths
- American people of World War II
- American businesspeople
- American Jews
- Bretton Woods conference delegates
- Cornell University alumni
- Jewish American politicians
- Morgenthau family
- New York politicians
- People from New York City
- United States Secretaries of the Treasury
- American people of German-Jewish descent
- Franklin D. Roosevelt administration cabinet members
- Truman Administration cabinet members