Milford chronicle., 1944-11-17

with no more suasion than is
100000 persons from May 1941,
September, 1914, have bought an
kept $33,687, 100000, current II
demption value, of war bonds. Thi
is the brilliant accomplishment {
the American people in the shol
period of three years and fiV
months.
Only to measure the size of thi
achievement, comparison VIII
Americas leading savings pro
grams is appropriate.
For over a century, an increas
ing army of agents has been edu
eating the American public in buy
ing life insurance. During most o
the life span of the present wal
bonds, that is, the three years end
ing Dec. 81. 1943. the life insurance
companies of the United States
added to their reserves $780, 600,
900, bringing their total assets tC
SS7, 200 100000, just $4,OOO,OOO,O0C
more than E, F, and G bonds sold
since May, 1941, and still Outstand-
ing.
Grow aS Repository
Throughout northeastern United
States. where mutual savings
banks have flourished for a CEN
tury and a quarter and where per-
haps 5 per cent of the wealth of
the United States is held, there has
been accumulated by small savers
in the savings banks about $12.-
500,000,000.
War bonds, particularly the Sc
ries f (the ten-year appreciation
bonds). have in remarkably short
time become the fastest growing
repository of savings in America.
This accomplishment is due to the
patriotism of the American people
and to the energy and intelligence
with which these highly superior
securities have been marketed.
War bonds have two unusual
characteristics which distinguish
them from all other types of secur-
ity: 0) they are not transferable
and (2) they may be redeemed on
demand at any time up and in
Guiding maturity, beginning sixty
days after issue.
Interest Rate Is Factor
Because they are not transfera-
BILE they are essentially individual
term sayings. Because they are re-
deemable at will the term of the
investment up to the ten-year
maximum is entirely optional with
the buyer of the band
To induce him to hold his bonds
several strong incentives are given
to the buyer. First, there is the eX-
ceptional rate of interest for gov
ernment issues, which on E bonds
rises from 067 per cent on bonds
Cashed at the end of one year to
go per cent if held for ten years.
Second, there is the individual buy
er's sense of responsibility to help
his country. which is a powerful
factor in this war, especially when
virtually every family has its
young men in foreign lands fight
ing under the Stars and Stripes
Third. there is the knowledge that
investment in war bonds is without
risk because the credit of the
United States will he kept inviO-
late. Fourth. and this is what we
need at this time to reflect upon.
is the fact that the bond buyer can
get his money back at any time he
wishes, although. indeed. he is ASK
ed to lend it to his country for
ten-year term.
In providing that war-bond buy
ers could get their money back at
any time the Treasury took leaves
from the experience books of saw
ingS banks and life-insurance COM
panies.
When you buy life-insurance
policy you know you will have
cash-surrender value after a short
period This value has been one of
the most important aids in selling
life insurance, because it encOur-
ages the insured to buy the great
est amount of protection that his
reasonable expectations of income
permit.
When you open savings ac-
count you know that you can get
your money when you need it. That
is a chief reason for having such
an account.
There is no secret formula for
making masses of free men and
women do what their common
sense and their natural loyalties
do not prompt them to do. There
fore, the Treasury has refused to
join in the demand for compul-
sorry saving system 1t has insisted
that sound selling of war bonds
must be made to willing buyers,
aroused to action and thoughtful
ness by advertising and personal
persuasion, but not compelled. 1t
promises that bonds that cannot be
kept will be redeemed. To make
that promise good it has recently
authorized the banks of the cOun-
try to cash bonds offered for re-
demptiOn at stipulated values after
proper Identification of the owner
of the bond.
Now with this broadening of re-
demption facilities will there be
rush for redemption? In some
places, Immediately after the new
procedure was established, there
were lines of persons in and out
side banks asking for their money
back. Perhaps there had been post
of normal redemptions
in these places until the promised
new facilities actually were in
operation. Perhaps there was local