Pearl Harbor: The Seeds and Fruits of Infamy - Ludwig von Mises ...

Tensions Mount 211
Nelson had “a second shock” later in the week. He was giving
a dinner Wednesday evening for Vice President Henry A.
Wallace and had invited the members of SPAB. Wallace sat at
Nelson’s right and his fellow Chicagoan, Navy Secretary Frank
Knox, was on his left. Remembering the president’s presentiment
of war, Nelson “made guarded inquiries of Knox concerning the
Japanese situation.” Knox “was not at all reticent” in his reply.
“Don,” he said, “we may be at war with the Japs before the month
is over.” Nelson asked, “Is it that bad?” Knox replied, “You bet
your life it’s that bad.” Th en Nelson asked Knox “what kind of a
fi ght would we have out there in the Pacifi c.” Knox replied, “we’ll
hunt their navy down and blow it right out of the water’.” 19
Treasury Secretary Morgenthau Asks if
Anything Might Disturb a U.S. Bond Sale
Treasury Secretary Morgenthau was responsible for arranging
the government’s fi nancing. On December 1 he was preparing to
make an off ering on the market of $1.5 billion in U.S. bonds.
Before settling on a date for the off er, he wanted to know the
likelihood that some crisis might occur to disturb the fi nancial
markets. As Morgenthau was not privy to MAGIC, he lacked
detailed inside knowledge of the international situation; he asked
Roosevelt’s advice. FDR told him to go ahead with the bond off er.
But he said, “I cannot guarantee anything. It is all in the laps of
the gods,” adding, “it was apt to be worse in the following week
than in the week just beginning.”
Morgenthau also asked Welles “if something would be happening
Wednesday, Th ursday, or Friday [December 3, 4, or 5]
of real importance—I mean that might upset the people of this
country.” Welles was reassuring: “I don’t anticipate anything
within that brief period.”
19 Ibid., pp. 182–83.