The Office of Price Administration was crated by the Roosevelt Administration to combat inflationary trends caused by the massive boost in employment caused by World War Two and the countries efforts to get ready for it.
Stalin issued a Decree of Banishment exiling Volga German Autonomous Soviet Socialist Republic which had previously been an ethnic German Soviet enclave.
The VGASSR would be officially disestablished on September 7. It'd been created in the 1920s when the Soviets still attempted o placate local ethnic groups on the hopes that they'd come to like the Communist regime.
Volga Oblast in yellow at bottom of map.
The fate of Volga Germans, in the country since the time of Catherine the Great, proved to be grim. The war would permanently impact their position in the country and while conditions improved for them after the death of Stalin, many emigrated to Germany under the German Law of Return, a trend that reached near totality in the 1980s and 1990s. By that time it had reached a state of pathos and irony in that the remaining Volga Germans retained much of their early rustic nature, while also having lost the ability to speak German to a very large degree. Their retained cultural attributes tended to shock modern Germans, while their inability to speak the language of their ancestors made it difficult for them to fit seamlessly into modern Germany.
While his action is regarded as one of the great atrocities of the Stalin era, and the Soviets have since apologized for it, at least in this instance Stalin's paranoid brutality was not without some reason to fear that they'd become a fifth column during the war given that anti Communist sentiments were strong in various Soviet ethnic groups. Having said that, large numbers of Volga Germans volunteered for Soviet service in the Red Army during the war, although their services were not always accepted or wanted.
Emigrating to North America, it should be noted, had been a trend in the region for decades, and was accelerated when the Imperial Russian Government in later years rescinded exemption for the population from conscription. In an interesting development, resistance to conscription, which in some Anabaptist German communities in Imperial Russia lead to North American emigration, did not tend to repeat itself in North America.
The Soviet Navy suffered a serious disaster when it lost several ships to mines while evacuating Tallinn, Estonia, in what has been called the "Soviet Dunkirk". The Germans occupied the city on this day. Meanwhile, the Germans lost a U boat to capture in Iceland. The boat would be returned to service in the Royal Navy as the HMS Graph.
The Germans also slaughtered 23,600 Jews in Kamianets-Podilsky on this day, as their campaign of slaughter reached new regions in the Soviet Union.