FISCAL: Funny Money

The plan, as explained by Treasury Secretary Henry Morgenthau Jr. back in 1943, was childishly simple. The British and American armies needed currency when they invaded Europe. So the Treasury had agreed to print invasion lire for use in Italy, invasion marks for Germany. The real beauty of the plan, in Morgenthau's view, was that the U.S. would have to redeem only the currency the Army used to pay soldiers. The Italians and Germans would be stuck with currency spent for food, supplies, etc.; redemption would be part of their reparations.


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