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Show War Bonds Are Your Safest Investment; Can, Hold What You Have Buy All You 3i Remember this . . . anybne who tells you that your government is likely to repudiate one dollars worth of these bonds , or that the American people are cashing them in faster than they are buy ing them, is passing along propaganda inspired in Berlin or Tokyo! Humors Whispering Of Repudiation Are Vicious Propaganda Approximately 85,000,000 American citizens have bought war bonds. That number is almost twice as many as the total of voters in the last national election. And that, it seems to me, is the best answer to the subversive propaganda that the government might repudiate payment of war bonds. Its the best answer from a practical standpoint, because repudiation must be voted by the congress and no congress in its right political mind would vote to nullify the holdings of 85 million Americans who have purchased individual and separate war bonds through January 1, 1945. Add to this 41 billion dollars in war bonds approximately 137 billion dollars worth sold in other governmental bonds and securities over the same period of time to banks, corporations, insurance companies and other large investors, and you have another added and compelling reason why no congress will ever vote repudiation of these governmental obligations sold to aid in financing 750,-389,8- the 00 w&r. These war bonds and other government securities have behind them the security, the faith and the integrity of the United States government . . . exactly the same guarantee of payment as a dollar bill. And if 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 of never having repudiated an obligation in the 165 years of its ex- istence. And right here lets spike the fallacy 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 h 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 unprecedented figure Only 12 Per Cent Cashed. N When ar through 1944, amounts to slightly less than 10 per cent per year. Lets take the treasury department publishes its statements, for instance, as last October when sales totaled $695,000,000 and redemptions totaled $400,000,000,. the story was immediately broadcast that people were cashing in their war bonds at a ratio almost equalling sales. As a matter of fact, the redemptions last October were only 1.16 per cent of the total bonds outstanding. In October redemptions were unusually 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 bad the mistaken idea that the treasury was inviting these redemptions because it was made so convenient. When this impression was dispelled, redemptions, steadily declined. November redemptions were 1.08 per cent; December, .98, and January redemptions went down to .89 per cent. Total cumulative redemptions of war bonds, that is the series E, F and G bonds, as of January 1, 1945, amount to 12.04 per cent of the total bonds sold. It means that out of the 41 billion dollars in war bonds sold, about 36 billion is still in the hands of the people who bought them. Or in other 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 than other months. The treasury policy from the inception of war bond sales $as been that the whole year of war bond Briefed at Army Air Forces School for Raid On Yawata; Follows Course Over Huge, Realistic Map. By BAUKHAGE News Analyst and Commentator, WNU Service, Union Trust Building, ing, which pointed out on the map every hazard, every advantage, evWashington, D. C. How would you like to bomb the ery varying condition. Special areas Yawata steel works in a flying for- were; blown up in large size: as a tress? I did it without moving from my classroom seat in Orlando, Fla., in one of the courses I attended at the army air force school of applied tactics. It is part of the post graduate instruction of the high officers of the army and it really is a realistic briefing. Whfen I had finished that demonstration, as it is called, I actually felt as if I had been on that bombing mission which started at an unnamed base in China and flew straight to a target, which is as clearly pictured in my mind as if I had made the trip. Ill try to reenact it for you. First, imagine a great map stretching across the room in which you are sitting with two black lines on it. The lower line runs, with a few slight deviations, straight to the target in Japan. Then there is a short leg running north and the sec- esti-ate- TOTAL SALES OF WAR BONDS Of one redemptions and compare them to insurance policy lapses. In 1943, for instance, total redemptions of war bonds to amount of bonds outstanding at the end of the year was 6.3 per cent. In 1940 for all legal reserve life insurance companies the dollar amount of policy surrenders and lapses was 6 per cent of the insurance in force at the end of the year. In 1942 the ratio was 4 per cent. This tremendous voluntary program of war financing, so vast in its ramifications, is not only the greatest financing record in all history, it has brought about the greatest pool of savings in liquid assets in the history of any people. The six war loan drives in themselves produced more than 109 billions of dollars from the sale of all government securities offered, 28 billions more than the combined goals set for these drives. The sixth war loan, in itself, exceeded the entire finance program of World War I. Four Liberty loan drives and one Victory drive in World War I grossed d There were an $21,432,924,700. 66 million subscribers but most of this sum was raised by individuals, banks and business firms able to buy $10,000 and upwards in Liberty bonds. In this war more than financing program should be voluntary 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 war bonds for emergency purposes, so all banks who desired, were authorized to redeem the bonds over the counter, instead of the former longer,, more complicated method of sending the bond to the nearest Federal Reserve bank. Who are the war bond redeemers .. . . the men and women who cash 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 $3,000 per year, and a larger than average family. The chances are he buys his war bonds through a IN BIUION In Imaginary Flight per cent, the average redemption rate over the four-yeperiod, 1941 -- By WALTER A. SHEAD WNU Staff Correspondent. 'Bombs' Steel Center 41,612 ond line, a little above the other, running back to- the base. This is the course we took. "Now, men, says the officer standing with a pointer in his hand, you are going to bomb the steel works at Yawata. Daylight precision bombing and naturally youll meet a little more opposition. But you know the importance of steel. I dont need to talk about that. You have been selected for your record last time. Keep up that record. As you know this is the first time for the new stagger formation. Youve practiced it. I wont go into that. We have just 45 minutes to check the whole , plan. We start at 650 and the first ship goes down the runway at 700. (Military clocks theoretically run 24 hours. If the number is above 12, subtract 12. For instance 1630 is 4:30 in the afternoon 1630 minus 12 equals 4:30.) Then came some directions about assembly (where this group joins the formation) which I wont go into here since space isnt adequate, but anyhow the assembly point is Chengtu. DOLLARS - CuMiAAltvu 2,537 1941 MAY- - . DEC payroll savings plan at his place of employment. Chances are, too, that he according to his income, since being patriotic, he wanted 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 WPA or the recipient of some community welfare program. They were not on that program willingly, and neither are they at the bank window cash-- 1 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 all his bonds, nor does he close out his payroll savhe keeps on buying. ings account And this is proved conclusively by the fact that war bonds purchased through payroll savings since the first war loan in 1942 have steadily increased each month from 307 mildollars in December, 1942, to lion ' more than $500,000,000 per month toEvery war loan has been day. in the regular marked by allotment of workers for war bonds, as well as a steadily increasing rise in the national level of payroll savings as against total payroll. Savings Up- 56 in Tear. During 1944 the withdrawals of deposits in savings accounts in the banks of the nation by individuals amounted to approximately 20 per cent and at the same time these savings accounts showed a net gain of approximately 56 per cent. War bonds, although showing an 8 per cent gain in redemptions over 1943, at the same time show an 85 per cent increase in sales. While the cumulative rate of redemption to the amount of bonds outstanding is 12.04 over-boug- billion dollars, from 66 million persons were obtained in the sixth war loan drive alone! People Pay 60 Per Cent of War 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 261 billion dollars. Of this Level Off amount 21 billions was used for non-wexpenditures, including the in- For Bomb Run We must be at Chengtu at 800. terest on the public debt, leaving 240 billion spent on the cost of the Climb at 190 miles an hour to this war. point here (the pointer taps the . to 1,500 feet and level off. Out of this 261 billions, 101 billions, map) or 38.7 per cent of the total, has been 200 miles per hour . . . this juncraised through net receipts of taxes, tion (another tap) 940; then swing 91 degrees . so the excess, of spending over tax on course receipts from May 1, 1941, to Janu- (the pointer swishes out along the ary 1, 1945, has been 160 billions of black line) to the coast. dollars. Here is your second' climb . . . 190 miles per hour . . . During this same period the gov- 1212 ernment has borrowed 178 billions 300 feet a minute to bombing of dollars through, sale of govern- altitude, at check point of island at mental securities. This equals the 1245 (the pointer touches a little 41 billion sold in war bonds and the island off the it will Jap coast) 137 billion in other securities. Of look like an inverted pyramid . . . this 178 billion, 75 billions have been ' then level off to the IP. (That is borrowed directly or indirectly from the point of entry which must be banks. The rest, 103 billions, or 57.9 definitely established, for the flight per cent, has come from from there on is directly to the tarsources, 42 billions of it from get and careful synchronization individual citizens. with the other planes must be The net of all this Is that the Amer- made.) ican people are buying war bonds flare so Show a yellow-yelloand that almost 60 per cent of the well know youve reached the IP amount borrowed for the war cost if dark, toggle has been paid by individuals and over the bomb run, then to the sources . . . they are rally point, 14 miles north of target. If you are crippled going over buying bonds and holding $88 out of every $100 they buy, and the record the target, try to cut short your indicates that they will keep on buy- turn. . . . ing them so long as they are offered ' Ill explain that: you see normal- for sale, or so long as the nation ly the planes would go north from needs their money to help finance the target and then turn at a right this war. angle to the assembly point. Then It is a pretty safe bet that the another right angle back toward treasury department, as a result of home, so if a plane had been hit its experience with baby bonds be- and couldnt last long, it must try to fore file war, and with war bonds catch up with the others and make since May 1, 1941, will continue in known its condition. If the plane the bond business after the war is lags behind, it may be located by over. People have the habit of buy- the group leader who will make conlooping back, trying ing government bonds and there is tinuous no indication now that there will be to locate any stragglers. Meanany concerted rush to the banks to while (as I forgot to explain) there cash in these bonds when the war is a friendly submarine loafing, somewhere within radio call for two is over. The very great majority of them purposes.. First, to try to' locate; will be held to maturity. And today any plane that has been forced down bond buying is on a basis, into the water; second, to pick up not only on the home front, but on information concerning any enemy the planes may have every battle front where Ameri- ships which sub can go over and so the to cans are fighting maintain the spotted freedom and integrity of a govern- take a poke at them. I cannot in this space give you ai ment and a way of life of which of the detail of this brief- fraction bonds a are symboL these 21 ht ar ... ... ... ... ... a-r- ise non-banki- - w ... four-and-a-h- non-bankin- gg i - , 24-ho- ur Value of Bonds cashed in is less than 12 per cent of Bonds sold per month. . . lake serving as a landmark where the planes start their ocean jump, a peculiarly shaped river where they reach land again. Sketches are , furnished by meteorologists, showing just the types of clouds they wiU encounter, some full of rocks (covering mountain peaks) which are to be avoided. The known location and number of enemy fighter planes is marked, as are the antiaircraft guns, and the temperature and the wind velocity at various levels. Targets There , Then Gone As to the target itself, large scale aerial pictures were shown which looked very much as the actual terrain would look to the pilot and bombardier. Also, a map of the whole city. Then a map of the target area, then photos of the target area, taken from an angle, as it will look when the plane approaches it from a distance, and another as it will look when it is directly below the important moment. That last statement directly below is misleading, as I found out. . What you see when you look through the glass walls of the bombers nose and what you see when you look through the bombsight are two quite different pictures. What you see when you look through the bombsight is the area (far ahead of where, your plane is) upon which the bomb will hit if released at that precise instant. Naturally, at the speed at which a plane travels, the inertia of the bombs carries them far ahead as they fall. This is disconcerting to the layman. I looked through the glass of the nose and picked me out a little. Florida lake upon which I decided to drop my imaginary bomb. Then I looked into the sight and there was no lake there! Too late! If I had released my bombs then, they would have hit far beyond the distant shore although the plane hadnt even reached the netfr shore, , , yet. But to return to my synthetic flight. I find it impossible to recount it with half the realism with which it was presented to me as my eyes followed that moving pointer from base to assembly point to bomb line (where the planes cross into enemy occupied terrain) on to the target itself, with the looping tracks that bounded it and then back, north and west again, over water and land, lake and mountain, on the long trek home. After the briefing was finished four men in uniform took seats on the platform. They were men with stars on their service ribbons and some purple hearts, too. Men of many missions just such as the one described, or they would not have been chosen as instructors in this post graduate university of the air. And they acted out with startling conviction the briefing of a returned crew. One, his nerves on razor edge from what he had gone through, another a little dazed, as if he had had a few drinks too many, another solanother jumpy, loemn, wide-eyequacious, controversial, all types, we are told. Carefully and tactfully the officer checked their conflicting statements until finally all were molded into a reasonable and rational report. How many enemy fighters . . . d, true-to-li- here? Oh, 80, easy, one. fe said the jumpy How many do you say? (to the ). fellow in the Well, a lot of em, I didnt count. Enough anyhow. And you didn't warn us about the others here,, y one as he jumps says the up and jabs the map. Finally it settles down to about 50. This estimate will be checked as other crews are checked, and an accurate estimate is obtained. The same careful and studied analysis of data on troop concentrations observed, movements along highways, convoys,, new landing strips, as well as the damage done tr the half-daze- slap-happ- target. |