Series E bond

$50 Series E bond (1941–1945)

Series E U.S. Savings Bonds were marketed by the United States government as war bonds from 1941 to 1980. Those issued from 1941 to November 1965 accrued interest for 40 years; those issued from December 1965 to June 1980, for 30 years. They were generally issued at 75 cents per dollar face value, maturing at par in a specified number of years that fluctuated with the rate of interest. Denominations available were $25, $50, $75, $100, $200, $500, $1,000, $5,000 and $10,000. Series E bonds were issued only in registered, physical form and are not transferable. The guaranteed minimum investment yield for the bonds was 4 percent, compounded semiannually.[1]

The U.S. Savings Bond programs

The first modern U.S. Savings Bonds were issued in 1935, to replace United States Postal Service Bonds. They were marketed as a safe investment that was accessible to everyone. The first bonds, series A, were followed by series B, C, D, E, EE, F, G, H, HH, and I.

Financing World War II

On June 4, 1943, students of the south-central district of the Chicago Public Schools purchased $263,148.83 in war bonds—enough to finance 125 jeeps, two pursuit planes and a motorcycle.

In December 1941, the US declared war on Japan and Germany declared war on the US shortly thereafter. This was the starting point for a large scale – and thus expensive — defense program. The problem of the financing of World War II was greater than that of World War I, as the struggle lasted longer and the amounts involved were larger.

The budgetary expenses for the years 1941–1945 amounted to some $317 billion, of which $281 billion was directly related to the war effort; expenditures climbed from $9.6 billion in fiscal 1940 to nearly $100 billion in 1945. Of these outlays some 45 percent was covered by taxes and other non-borrowing sources. The deficit had to be covered by selling bonds. The Treasury sold $185.7 billion of securities (over $2.1 trillion in 2016) to finance the war. The public debt rose from $50 billion in 1940 to $260 billion in 1945.[2]

Year Receipts ($ bn) Outlays ($ bn) Deficit ($ bn) Public Debt ($ bn)
1939 6.6 9.4 2.9 48.2
1940 6.9 9.6 2.7 50.7
1941 9.2 14.0 4.8 57.5
1942 15.1 34.5 19.4 79.2
1943 25.1 78.9 53.8 142.6
1944 47.8 94.0 46.2 204.1
1945 50.2 95.2 45.0 260.1
1946 43.5 61.7 18.2 271.0

War bonds

President Franklin D. Roosevelt buys the first Series E bond (May 1, 1941)

The first Series E bond was sold to President Franklin D. Roosevelt by Secretary of the Treasury Henry Morgenthau on May 1, 1941.[3] These were marketed first as "defense bonds", then later as "war bonds".

During World War II the "drive" technique used during World War I was replaced in part by a continual campaign using a payroll deduction plan. However, eight different drives were conducted during the campaign. In total, the overall campaign raised $185.7 billion from 85 million Americans, more than in any other country during the war.[4] Li'l Abner creator Al Capp created Small Fry, a weekly newspaper comic strip whose purpose was to sell Series E bonds in support of the Treasury.[5]

Of the $185.7 billion raised during the continual campaign, a total of $156.4 billion was raised during the eight specific drives, despite an average duration of only one month each, as follows:

George Schreiber poster for the Third War Loan Drive (September 9–October 1, 1943)
Kate Smith in September 1944: "No single show-business figure even approached her as a seller of War Bonds during World War II", wrote The New York Times. Her grand total exceeded $600 million.[6]
C. C. Beall poster for the Seventh War Loan Drive (May 14–June 30, 1945)

After the war

Although Series E bonds are usually associated with the war bond drives of World War II, they continued to be sold until June 1980, thereafter being replaced by Series EE bonds. A version of Series EE bonds, known as the Patriot Bond, is a sort of post-September 11 war bond, but has never enjoyed the broad subscription of the Series E war bond. These bonds are no longer available as of 2012.[14]

In October 2008, several news reports claimed there were several billion dollars in unclaimed bonds. The US treasury set up a web site called "Treasury Hunt." The system provides information only on Series E bonds issued in 1974 and after.

See also

References

  1. ↑ SavingsBonds.com — E Savings Bonds, Investor Information
  2. ↑ Chapter Y Government, page 1105
  3. ↑ U.S. Treasury — Introduction to Savings Bonds
  4. 1 2 3 4 5 "Brief History of World War Two Advertising Campaigns War Loans and Bonds". Duke University Libraries. Retrieved 2014-02-21.
  5. ↑ "Presarvin’ Freedom: Al Capp, Treasury Man," Hogan's Alley, 1998
  6. 1 2 Prial, Frank G. (June 18, 1986). "Kate Smith, All-American Singer, Dies At 79". The New York Times. Retrieved 2015-10-20.
  7. 1 2 Radio: Kate's Appeal - TIME
  8. ↑ "Quiz Kids at Mosque Net $5,000,000 in War Bonds". Pittsburgh Post-Gazette. January 10, 1944. Retrieved 2016-01-29.
  9. ↑ "Orson Welles in War Loan Drive". Associated Press (Oakland Tribune), May 17, 1944
  10. ↑ "Opening Fifth War Loan Drive, June 12, 1944". Franklin D. Roosevelt Presidential Library and Museum. Retrieved 2014-02-21.
  11. ↑ Brady, Frank, Citizen Welles: A Biography of Orson Welles. New York: Charles Scribner's Sons, 1989 ISBN 0-385-26759-2
  12. ↑ "May 14 Marks Opening of 7th War Loan Drive". Vassar Chronicle. May 5, 1945. Retrieved 2015-10-20.
  13. ↑ "7th War Loan. Now--All Together". World Digital Library. 1945.
  14. ↑ "The Patriot Savings Bond". U.S. Department of the Treasury, Bureau of the Fiscal Service. Retrieved 2014-02-21.
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