The U.S. Savings Bond program celebrated a 75th Anniversary in May 2016. During the involvement in World War II in 1941, the Series E Savings Bond was implemented by President Franklin D. Roosevelt as a way to help finance the war. For both economic and patriotic reasons, the Series E Savings Bond played an important roll in American history.
Officially called the Series E Defense Savings Bond, it was commonly referred to as the “Defense Bond.” Following the attack on Pearl Harbor in December 1941, the bond was renamed “War Bond.”
Soon after the issuance of the War Bonds, “War Stamps” were introduced. It marked the beginning of a nation supporting its country through their (financial) actions. For as little as a dime (up to $5.00), any citizen could support the war effort. As a result of the bonds and stamps being promoted and sold to children in schools nationwide, 90,00 Jeeps were purchased for the war. Not only were the bonds and stamps a way for many of the nation to show their patriotic support, it also created an easy and affordable way for them to start investing.
In 1942 the Savings Bond Payroll Savings Plan was adopted. Americans now had an easy and systematic way to purchase bonds with money deducted from their pay.
Artists and entertainers also supported the bond effort. Norman Rockwell’s “Four Freedoms” paintings toured the country at various department stores raising over $130 million in War Bond sales. Celebrities such as Judy Garland, Lucille Ball and Mickey Rooney also promoted bond sales during their variety show tours.
After the war, bond sales continued as a popular way for families to save. According to the Treasury Department, “By 1945 and 1946, more Americans bought savings bonds than cashed them. Surveys at the time indicated many people resisted cashing their bonds to allow the savings to grow.”
To continue post war bond sales, celebrities and entertainers did promotional events. The Bonds were also touted in films, commercials and on television. President John F. Kennedy’s administration established the U.S. Industrial Payroll Savings Committee aimed at spearheading payroll savings campaigns in American industry. Kennedy’s 1963 campaign created the largest enrollment of new payroll savers since World War II. In May 1967, bonds were named Savings Notes (Freedom Shares) during the Vietnam War era. They were discontinued in 1970.
E bond sales continued to be promoted through President Gerald Ford through the nations bicentennial. Newly designed “Bicentennial Bonds” were offered from 1975-1976. E Bond sales were discontinued in 1980. Subsequently, the Series EE Bond was introduced in 1980, and the Series I (Inflation) bond became available in 1998.
Throughout the decades and various name changes, U.S Savings Bonds are still considered an important historic American investment as many bond purchases were made for patriotic reasons. More importantly, it allowed even the smallest investor to feel their bond purchase made a difference to their country.
By: Jackie Brahney, Marketing Director, SavingsBonds.com www.SavingsBonds.com jbrahney@savingsbonds.com Twitter: SavingsBondsgal