Show War mar Bonds Are Your Y Safest Investment Buy All You Can Hold What You Have I Rumors Whispering b be I Of Repudiation e u cation Are re Vicious Propaganda By WALTER A A. A SHEAD Staff Correspondent Approximately American citizens have bought war bonds That number number number num num- ber is almost twice as many manyas as the total of voters in the thelast thelast last national election And that it seems to me is the best answer to the subversive propaganda that the government government government govern govern- ment might repudiate payment payment payment pay pay- ment of war bonds Its It's the best answer from a practical practical practical standpoint because repudiation repudiation repudiation must be voted by the congress and no congress in its right political mind would vote to nullify the 41 dollar billion-dollar holdings of 85 million Americans who have purchased individual and separate war bonds through January 1 I 1945 Add to this 41 billion dollars in war bonds approximately billion dollars worth sold in other governmental governmental governmental govern govern- mental bonds and securities over the same period of time to banks corporations corporations corporations cor cor- insurance companies and other large investors and you have another added and compelling reason reason reason rea rea- son why no congress will ever vote repudiation of these obligations These war bonds and other government government govern govern- overn- overn ment securities have behind them the security the faith and the integrity integrity integrity integ integ- rity of the United States Slates government exactly the same guarantee of payment as a dollar bill And If U your war bonds should become worthless then your dollar bill will become equally as worthless And we have behind war bonds a tradition and record of the United States government govern govern- government ment of never having repudiated an obligation In the years of its ex ex- And right here lets let's spike the fallacy fallacy fal tal- fal- fal lacy in the minds of some people that war bonds are being cashed in at an alarming rate They are not being redeemed In any such amounts When someone sees a line of people at a postoffice window or at a bank counter cashing in war bonds the story is immediately spread that people are cashing in their bonds at an ani I unprecedented figure Only 12 Per Cent Cashed When the treasury department publishes its statements for instance instance instance in in- stance as last October when sales totaled and redemptions I totaled the story was immediately broadcast that people were cashing in their war bonds at ata a ratio almost equalling sales As Asa a matter of fact the redemptions last October were only per cent of the total bonds outstanding In October redemptions were unusually unusually unusually un un- un- un usually heavy for the reason that It was the first month in which banks were authorized to redeem bonds over the counter direct and many persons had the mistaken idea that the treasury was inviting these redemptions redemptions redemptions re re- re- re because it was made so convenient When this impression was dispelled redemptions steadily declined November redemptions were per cent December 98 and January redemptions went down downto to 89 per cent Total cumulative redemptions of war bonds that Is the series E F Fand Fand Fand and G bonds as of January 1 I 1915 amount to 1204 1201 per cent of the total bonds sold It means that out of the 41 billion dollars in hi war bonds sold about 36 billion Is still in the hands of the people who bought them Or in other other oth oth- er words about 12 cents out of each dollar spent for war bonds has been redeemed Money for or Taxes Needed Certain months of the year such as the taxpaying months always show a heavier redemption percentage percent percent- age than other months The treasury treasury treasury treas treas- ury policy from the inception of war bond sales has been that the whole financing program should be vol vol- Remember this anyone who tells you that your government government government gov gov- is likely to repudiate one dollars dollar's worth o of f these bonds or that the American people are ca cashing hing them in faster than they arc are buying them is passing along propaganda propaganda prop a- a ganda anda inspired in Berlin or Tokyo and that persons wishing ng to buy war bonds should be able to buy them conveniently Hence war bonds may be purchased at banks post offices theaters retail stores and at scores of other places Then the treasury reasoned It should be equally convenient to redeem redeem re re- re- re deem war bonds for emergency purposes purposes purposes pur pur- poses so all banks who desired were authorized to redeem the bonds over the counter instead of the former longer more complicated ed method of sending the bond to the nearest Federal Reserve bank Who are the war bond redeemers the m men n and women who cash cashin cashin in these 12 cents out of the dollar Almost invariably they are families whose only saving has been the war bonds they bought and thus when an emergency arose their war bonds were their only recourse The war bond redeemer is in the low income bracket has an income probably less than per year and a larger than average family The chances are he buys his war bonds through a payroll savings plan at his place of employment Chances are too that he over bought according to his in- in cumulative rate of redemption to the amount of bonds outstanding is 1204 per cent the average redemption rate over the year four period 1941 through 1944 amounts to slightly less than 10 per cent per year Lets Let's take one year of war bond redemptions and compare them to Insurance policy lapses In 1943 fur for instance total redemptions of war bonds to amount of bonds outstanding ing at the end of the year was 63 per cent In 1940 for all legal reserve reserve reserve re re- re- re serve life insurance companies the dollar amount of policy surrenders I and lapses was 6 per cent of the insurance in insurance insurance in- in in force at the end of the year In 1942 the ratio was 4 per percent cent centt i This tremendous voluntary program program program pro pro- gram o of war financing so vast In I Its ramifications Is not only the greatest financing record In all history history history his his- tory it has brought about the greatest greatest great great- I est cst pool of savings in hi liquid assets i In the history of any people I The six war loan drives in themselves themselves themselves them them- selves produced more than billions billions billions bil bil- lions of dollars from rom the sale of all government securities offered 28 billions more than the combined goals set for tor these drives The sixth I Iwar war loan in itself exceeded the entire entire entire en en- eni i tire finance program of World War I. I Four Liberty loan drives and one Victory drive in World War I grossed There were an estimated estimated estimated esti esti- mated 66 million subscribers but most of this sum was raised by in indivIduals individuals individuals in- in banks and business firms able to buy and upwards in Liberty bonds In this war more than 21 billion dollars from rom 66 mil- mil TOTAL SALES OF WAR BONDS IN BilLION OF DOLLARS A. A ti if 51 4 L e s t X 7 7 7 r 1941 1942 1943 1944 MAY MAY- DEC come since being patriotic he be wanted wanted want want- want 1 ed to do just as much as his fellows I Investigation shows that many men and women in these families I forced Coreed to r redeem th their war bonds I were ten years ago on WP A or the recipient of some community welfare welfare welfare wel wel- fare program They were not yon on that program willingly and neither are they at tt the bank window cashIng cashing cashing cash cash- ing in their bonds willingly today These bonds are their only liquid asset when an emergency comes death child birth hospitalization and temporary unemployment The treasury also has learned that the redeemer of war bonds does not necessarily cash in hi all his bonds nor does he close out his payroll savings savings savings sav sav- ings account he keeps on buying And this is proved conclusively by bythe bythe i the fact that war bonds purchased I through payroll savings since the first war loan in 1942 have steadily increased each month from million million million mil mil- lion dollars in December 1942 to more than per month to to- day Every war loan has been marked by a rise in the regular allotment of workers for war bonds as well as a steadily increasing rise in the th-e national level of payroll savings savings savings sav sav- ings as against total payroll Savings Up 56 In Year During 1944 the withdrawals of deposits deposits deposits' deposits deposits' de de- de- de posits posits' in savings accounts in tn the banks of the nation by individuals amounted to approximately 20 per percent percent percent cent and at the same time these savings savings savings sav sav- ings accounts showed a net gain of approximately 56 per cent War bonds although showing an 8 per percent percent percent cent gain in redemptions over 1943 at the same time show an 85 per percent percent percent cent increase in sales While the BUY BONDS REDEEM BONDS HERE HERE I II I L I a Value vm of of Bonds cashed shed ea in is less than Jan 12 per cent I of Bonds sold per month I lion persons were obtained in the sixth war loan drive alone People Pay 60 Per Cent of War Cost How has this voluntary program of ot war financing been used toward paying the cost of the war Here are a few figures From May 1 I 1941 the start of the war finance program through December 31 1944 the government spent billion dollars Of this amount 21 billions was used for non- non war expenditures including the interest interest interest in in- terest on the public debt leaving billion spent on the cost of the war Out of this billions billion billions or per cent of the total has been raised through net receipts of taxes so the excess of spending over tax receipts from May 1 I 1941 to January January January Janu Janu- ary 1 I 1945 has been billions of dollars During this same period the government government gov gov- II emment has borrowed billions of dollars through sale of governmental governmental governmental govern govern- mental securities This equals the 41 billion sold in war bonds and the billion in other securities Of this billion 75 billions have been borrowed directly or indirectly from banks The rest billions or per cent has come from non bank I ing sources 42 billions of it from fromI I individual citizens The net of all aU this is that the American American American Amer Amer- ican people are arc buying baying war bonds and that almost 60 per cent of the amount borrowed ed for the war cost has been paid by individuals and non- non banking sources they are buying bonds and holding 88 out o of every they buy and the record IndIcates indicates indicates indi IndI- cates that they will keep on buying them so long as they arc are offered for sale or so long as the nation needs their money to help finance this war It is a pretty safe sate bet that the treasury department as a result of its experience with baby bonds before before before be be- fore the war and with war bonds since May 1 1941 will continue in hi hithe inthe inthe the bond business after alter the war Is over People have the habit of buying buying buying buy buy- ing government bonds and there is no indication now that there will be beany beany beany any concerted rush to the banks to cash In these bonds when the war waris waris I is over The very great majority of them will be held to maturity And today bond buying is on a hour 24 basis not only on the h home me front but on every battle front where AmerIcans Americans Ameri Amen cans are fighting to maintain the freedom and integrity of f a government government government govern govern- ment and a wa way of life of of which these bonds are a symbol I |