Show War mar Bonds fonds Are ire Your Safest Investment Buy All Y You u Can Hold What You Yon Have I c I Rumors tenors Whispering b bOf Of Repudiation Are Arc Vicious Propaganda By WALTER A. A SHEAD Staff Correspondent Approximately American citizens have bought war bonds That number is almost almost almost al al- al- al most twice as many as the total of voters in the last national election And that it seems to tome tome tome me is the best answer to the subversive subversive subversive sub sub- i propaganda that the government nt might repudiate payment of war bonds Its It's the best answer from a practical practical practical standpoint because repudiation repudiation a tion 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 I Americans who have purchased individual and separate war bonds through January 1 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 rea- rea son on why no congress will ever vote repudiation of these governmental obligations sold to aid in financing the war These war bonds and other government government government govern govern- ment securities have behind them the he security the faith and the integrity integrity integ integ- integrity rity of the United States government exactly the same guarantee of payment ment as a dollar bill And if your war var bonds should become worthless then hen your dollar bill will become equally as worthless And we have behind war bonds a tradition and record of the United States government 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 falacy fallacy fal- fal fallacy lacy acy in hi the minds of some people that hat war bonds are being cashed in at an alarming rate They are not being eing 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 pread that people are cashing in their heir bonds at an unprecedented fiUre V Only Only 12 Per Cent Cashed When the treasury department publishes its statements for in instance instance in- in instance stance as last October when sales totaled and redemptions totaled the story was immediately broadcast that people were cashing in their war bonds at ata ata a ratio almost equalling sales As Asa a matter of fact the redemptions last ast October were only per cent of the total bonds outstanding In October redemptions were unusually unusually unusually 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 he the treasury was inviting these redemptions redemptions re re- redemptions re- re because it was made so convenient When this impression was vas 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 1945 19 amount to 1204 1 per cent of the total bonds sold It means that out of the 41 billion dollars in war bonds sold about 36 billion Dillion is still in the hands of the people who bought them Or in other other oth oth- other er words about 12 cents out of each dollar spent for war bonds has been redeemed Money for 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 1 Remember this anyone who tells you yon that your government is likely to repudiate one dollars dollar's worth of oj these bonds or that the American peo people pic are arc cashing them in faster Jaster than they are buying buying buying buy buy- ing them is passing along propaganda propaganda propaganda ganda inspired in Berlin or Tokyo financing program should be voluntary voluntary voluntary vol vol- and that persons wishing 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 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 men and women who cash 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 per cent the average redemption rate over the year four-year 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 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 lile insurance companies the dollar amount of policy surrenders and lapses was 6 per cent of the in insurance insurance insurance in- in in force at the end of the year In 1942 the ratio was 4 per cent This tremendous voluntary program program program pro pro- gram of war financing so vast in its ramifications is not only the greatest financing record in all aU history history history his his- tory it has brought about the greatest greatest great great- est pool of savings in liquid assets in the history of any people The six war loan drives in themselves themselves themselves them them- selves produced more than billions billions billions bil bil- bil- bil lions of dollars from the sale of all government securities offered 28 billions more ore than the combined goals set for these drives The sixth war loan in itself exceeded the entire entire entire en en- I tire finance program of World War I. I Four Liberty loan drives and one Victory drive in World War Var I grossed There were an esti- esti 66 million subscribers but most of this sum was raised by individuals als banks and business firms able to buy and upwards in Liberty Liberty Liberty Lib Lib- erty bonds In this war more than TOTAL SALES OF WAR BONDS IN BILLION Of DOLLARS M w m. 4 4 I 25 1 7 L 2 2531 i L 4 r 1941 1942 1943 1944 MAY MAT DIG DEC payroll savings plan at his place of employment Chances are too that he over-bought over according to his income income income in in- come since being patriotic he wanted wanted wanted want want- ed to do just as much as his fellows Investigation shows that many men and women in these families forced to redeem their war bonds were ten years ago on or the recipient of some community welfare welfare welfare wel wel- fare program They were not on that program willingly wittingly and neither are they at the bank window cashing cashing cashing cash cash- ing in their bonds willingly wittingly 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 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 bythe by bythe bythe the fact that war bonds purchased through payroll savings since the first war loan in 1942 have steadily increased each month from million million mil mil- million lion dollars in December 1942 to more than per month to 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 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 de de- posits in savings accounts in 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 percent per percent percent cent increase in sales While the cumulative rate of redemption to the amount of bonds outstanding is 1204 BUY BONDS REDEEM BONDS HERE HER E HERE i a Value of Bonds sera cashed in is less than 12 per cent cm of at Bonds Souls sold per month 21 billion dollars from 66 million persons were obtained in the sixth war loan drive alone People Pay 60 Per Cent of War Var Cost How has this voluntary program of war financing been used toward paying the cost of the war Here are a few figures From May 1 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 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 1941 to January January January Janu Janu- ary 1 1945 has been billions of dollars During this same period the government government government gov gov- has borrowed billions of dollars through sale of governmental governmental govern govern- mental securities This equals the 41 billion sold in war bonds and the billion in other securities I Of this billion 75 billions have been borrowed directly or indirectly from banks The rest billions or per cent has come from non bank ing sources 42 billions of it from individual citizens The net of all this is that the American American American Amer Amer- ican people are arc buying war bonds and that almost 60 per cent of the amount b borrowed for the war cost has been paid by individuals and non sources they are buying bonds and holding 88 88 out of every they buy and the record indicates that t they ey will wilt keep on buying buying buy buy- ing them so long as they are offered for sale or so long as the nation needs their money to help finance this war It is a pretty safe 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 inthe in inthe inthe the bond business after the war is over People have the habit of 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 waris 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 home front but on every battle front where Americans Americans Ameri Ameri- Americans cans cans are fighting to maintain the freedom and integrity of a government government government govern govern- ment and a way of life lile of which these bonds are a symbol |