Series E bond

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$100 Series E bond (1944) 1944 $100 War Savings Bond Series E .jpg
$100 Series E bond (1944)

Series E United States Savings Bonds were government bonds marketed by the United States Department of the Treasury as war bonds during World War II from 1941 to 1945. After the war, they continued to be offered as retail investments until 1980, when they were replaced by other savings bonds.

Contents

History

President Franklin D. Roosevelt buys the first Series E bond (May 1, 1941)
Photo mural promoting the purchase of Defense Bonds, in the concourse of Grand Central Terminal (December 1941) Photo mural in concourse of Grand Central terminal.jpg
Photo mural promoting the purchase of Defense Bonds, in the concourse of Grand Central Terminal (December 1941)

The first savings bonds, Series A, were issued in 1935 to encourage saving during the Great Depression. They were marketed as a safe investment that was accessible to everyone. They were followed by series B, C, and D bonds over the next few years.

Marketed as a defense savings bond, the first Series E bond was sold to President Franklin D. Roosevelt on May 1, 1941, by Secretary of the Treasury Henry Morgenthau. [1] After the December 1941 attack on Pearl Harbor brought the United States into World War II, Series E bonds became known as war bonds.

On June 4, 1943, students of the south-central district of the Chicago Public Schools purchased $263,148.83 in war bonds--enough to finance 125 jeeps, two pursuit planes and a motorcycle. Chicago-Public-Schools-War-Bonds-1943.jpg
On June 4, 1943, students of the south-central district of the Chicago Public Schools purchased $263,148.83 in war bonds—enough to finance 125 jeeps, two pursuit planes and a motorcycle.

The "drive" technique used during World War I was replaced in part by a continual campaign using a payroll deduction plan. However, eight different drives were conducted during the campaign. In total, the overall campaign raised $185.7 billion from 85 million Americans, more than in any other country during the war. [2] Li'l Abner creator Al Capp created Small Fry, a weekly newspaper comic strip whose purpose was to sell Series E bonds in support of the Treasury. [3]

Drives

Of the $185.7 billion raised during the continual campaign, a total of $156.4 billion was raised during the eight specific drives:

Right in Der Fuehrer's Face! Invest Now... Buy More Bonds.jpg
Poster for the Second War Loan Drive (April 12 – May 1, 1943)
Kate-Smith-War-Bonds-LIFE-1944.jpg
Kate Smith in September 1944: "No single show-business figure even approached her as a seller of War Bonds during World War II", wrote The New York Times. Her grand total exceeded $600 million. [4]
Seventh-War-Loan-Drive-Poster-1945.jpg
C. C. Beall poster for the Seventh War Loan Drive (May 14 – June 30, 1945)
TWO HUNDRED DOLLAR WAR BOND - NARA - 515890.jpg
In memory of Roosevelt, a special $200 Series E bond was made available at the beginning of the Eighth War Loan Drive, called the Victory Loan (October 29, 1945).

After World War II

Series E Bonds continued to be sold as part of the United States Savings Bonds program until June 1980, when they were replaced by Series EE bonds. [10]

Financial terms

Bonds issued from 1941 to November 1965 accrued interest for 40 years; those issued from December 1965 to June 1980, for 30 years. They were generally issued at 75 cents per dollar of face value, maturing at par value in a specified number of years that fluctuated with the rate of interest. Denominations available were $25, $50, $75, $100, $200, $500, $1,000, $5,000 and $10,000. Series E bonds were not transferable, and were issued only as registered paper certificates. The guaranteed minimum investment yield for the bonds was 4 percent, compounded semiannually. [11] Interest was exempt from state and local taxes, but was subject to federal taxes. [12] Series E bonds were sold at 75% of face value and had a 2.9% interest rate compounded semiannually. [13]

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References

  1. U.S. Treasury  Introduction to Savings Bonds Archived August 25, 2009, at the Wayback Machine
  2. 1 2 3 4 5 "Brief History of World War Two Advertising Campaigns War Loans and Bonds". Duke University Libraries. Archived from the original on October 29, 2011. Retrieved February 21, 2014.
  3. "Presarvin’ Freedom: Al Capp, Treasury Man," Hogan's Alley, 1998
  4. 1 2 Prial, Frank G. (June 18, 1986). "Kate Smith, All-American Singer, Dies At 79". The New York Times . Retrieved October 20, 2015.
  5. 1 2 Radio: Kate's Appeal – TIME
  6. "Quiz Kids at Mosque Net $5,000,000 in War Bonds". Pittsburgh Post-Gazette . January 10, 1944. Retrieved January 29, 2016.
  7. "Opening Fifth War Loan Drive, June 12, 1944". Franklin D. Roosevelt Presidential Library and Museum . Retrieved February 21, 2014.
  8. Brady, Frank, Citizen Welles: A Biography of Orson Welles. New York: Charles Scribner's Sons, 1989 ISBN   0-385-26759-2
  9. "May 14 Marks Opening of 7th War Loan Drive". Vassar Chronicle. May 5, 1945. Retrieved October 20, 2015.
  10. "The Patriot Savings Bond". U.S. Department of the Treasury, Bureau of the Fiscal Service. Retrieved February 21, 2014.
  11. SavingsBonds.com  E Savings Bonds, Investor Information
  12. "Individual - Series EE/E Savings Bonds Tax Considerations". www.treasurydirect.gov. Retrieved June 26, 2017.
  13. Lemke, T. (September 25, 2020) "War Bonds: What Are They?," The Balance,