Series E bond
Encyclopedia
Series E U.S. Savings Bonds were marketed by the United States
government as war bond
s from 1941 to 1980. When Americans refer to war bonds, they are usually referring to Series E bonds. Those 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 face value, maturing at par 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 issued only in registered, physical form and are not transferable. The guaranteed minimum investment yield for the bonds was 4 percent, compounded semiannually.
Bonds. They were marketed as a safe investment that was accessible to everyone. The first bonds, series A, were followed by series B, C, D, E, EE, F, G, H, HH, and I.
In October 2008, several news reports claim there are several billion in unclaimed bonds. The US treasury set up web site called "Treasury Hunt." The system only provides information on Series E bonds issued in 1974 and after.
was greater than that of World War I
, as the struggle lasted longer and the amounts involved were larger.
The budgetary expenses for the years 1941-1945 amounted to some $317 billion, of which $281 billion was directly related to the war effort; expenditures climbed from $9.6 billion in fiscal 1940 to nearly $100 billion in 1945. Of these outlays some 45 percent was covered by taxes and other non-borrowing sources. The deficit had to be covered by selling bonds. The Treasury sold $185.7 billion of securities to finance the war. The public debt rose from $50 billion in 1940 to $260 billion in 1945.
The first Series E Bond was sold to President Franklin D. Roosevelt
by Secretary of the Treasury Henry Morgenthau
on May 1, 1941.. These were marketed first as "defense bonds", then later as "war bonds".
During World War II 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 raising $185.7 billion from 85 million Americans, more than in any other country during the war. The eight specific drives, their goals, and amounts raised, were as follows:
, they continued to be sold until June 1980, thereafter being replaced by Series EE bonds. A version of Series EE bonds, known as the Patriot Bond, is a sort of post-September 11 war bond, but has never enjoyed the broad subscription of the Series E war bond.
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
government as war bond
War bond
War bonds are debt securities issued by a government for the purpose of financing military operations during times of war. War bonds generate capital for the government and make civilians feel involved in their national militaries...
s from 1941 to 1980. When Americans refer to war bonds, they are usually referring to Series E bonds. Those 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 face value, maturing at par 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 issued only in registered, physical form and are not transferable. The guaranteed minimum investment yield for the bonds was 4 percent, compounded semiannually.
The U.S. Savings Bond programs
The first modern U.S. Savings Bonds were issued in 1935, to replace United States Postal ServiceUnited States Postal Service
The United States Postal Service is an independent agency of the United States government responsible for providing postal service in the United States...
Bonds. They were marketed as a safe investment that was accessible to everyone. The first bonds, series A, were followed by series B, C, D, E, EE, F, G, H, HH, and I.
In October 2008, several news reports claim there are several billion in unclaimed bonds. The US treasury set up web site called "Treasury Hunt." The system only provides information on Series E bonds issued in 1974 and after.
Financing the War
The US declared war on Japan and Germany in December 1941. This was the starting point for a large scale – and thus expensive - defense program. The problem of the financing of World War IIWorld War II
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...
was greater than that of World War I
World War I
World War I , which was predominantly called the World War or the Great War from its occurrence until 1939, and the First World War or World War I thereafter, was a major war centred in Europe that began on 28 July 1914 and lasted until 11 November 1918...
, as the struggle lasted longer and the amounts involved were larger.
The budgetary expenses for the years 1941-1945 amounted to some $317 billion, of which $281 billion was directly related to the war effort; expenditures climbed from $9.6 billion in fiscal 1940 to nearly $100 billion in 1945. Of these outlays some 45 percent was covered by taxes and other non-borrowing sources. The deficit had to be covered by selling bonds. The Treasury sold $185.7 billion of securities to finance the war. The public debt rose from $50 billion in 1940 to $260 billion in 1945.
| Year | Receipts ($ bn) | Outlays ($ bn) | Deficit ($ bn) | Public Debt ($ bn) |
|---|---|---|---|---|
| 1939 | 6.6 | 9.4 | 2.9 | 48.2 |
| 1940 | 6.9 | 9.6 | 2.7 | 50.7 |
| 1941 | 9.2 | 14.0 | 4.8 | 57.5 |
| 1942 | 15.1 | 34.5 | 19.4 | 79.2 |
| 1943 | 25.1 | 78.9 | 53.8 | 142.6 |
| 1944 | 47.8 | 94.0 | 46.2 | 204.1 |
| 1945 | 50.2 | 95.2 | 45.0 | 260.1 |
| 1946 | 43.5 | 61.7 | 18.2 | 271.0 |
War Bonds
Franklin D. Roosevelt
Franklin Delano Roosevelt , also known by his initials, FDR, was the 32nd President of the United States and a central figure in world events during the mid-20th century, leading the United States during a time of worldwide economic crisis and world war...
by Secretary of the Treasury Henry Morgenthau
Henry Morgenthau, Jr.
Henry Morgenthau, Jr. was the U.S. Secretary of the Treasury during the administration of Franklin D. Roosevelt. He played a major role in designing and financing the New Deal...
on May 1, 1941.. These were marketed first as "defense bonds", then later as "war bonds".
During World War II 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 raising $185.7 billion from 85 million Americans, more than in any other country during the war. The eight specific drives, their goals, and amounts raised, were as follows:
- First War Loan Drive – began on November 30, 1942 and ended on December 23, 1942. The initial goal was $9 billion; the drive raised $13 billion. However, only $1.6 billion was raised from individuals; corporations and commercial banks accounted for the vast majority of the funds raised.
- Second War Loan Drive – began on April 12, 1943 and ended on May 1, 1943. The initial goal was $13 billion; the drive raised $18.5 billion. Individual purchases doubled over the previous drive, due in large part to the $4.5 million and $170,000 of advertising contributed by newspapers and magazines.
- Third War Loan Drive – began on September 9, 1943 and ended on October 1, 1943. The initial goal was $15 billion, which would require a doubling of the bond sales from the prior drive, with at least 40 million of the 130 million American citizens needing to purchase a $100 war bond. PresidentPresident of the United StatesThe President of the United States of America is the head of state and head of government of the United States. The president leads the executive branch of the federal government and is the commander-in-chief of the United States Armed Forces....
Franklin D. RooseveltFranklin D. RooseveltFranklin Delano Roosevelt , also known by his initials, FDR, was the 32nd President of the United States and a central figure in world events during the mid-20th century, leading the United States during a time of worldwide economic crisis and world war...
addressed the nation via one of his fireside chats on September 8 and Kate SmithKate SmithKathryn Elizabeth "Kate" Smith was an American Popular singer, best known for her rendition of Irving Berlin's "God Bless America". Smith had a radio, television, and recording career spanning five decades, which reached its pinnacle in the 1940s.Smith was born in Greenville, Virginia...
raised $39 million during a September 21 CBS broadcast. Final sales were $19 billion. - Fourth War Loan Drive – began on January 18, 1944 and ended on February 15, 1944. The initial goal was $14 billion, and the drive was targeted towards farmers and women. Final sales were $16.7 billion (107% of quota) and nearly 70 million separate bonds sold.
- Fifth War Loan Drive – began on June 12, 1944 and ended on July 8, 1944.
- Sixth War Loan Drive – began on November 2, 1944.
- Seventh War Loan Drive – began in May of 1945, just days after V-E Day.
After the war
Although Series E bonds are usually associated with the war bond drives of World War IIWorld War II
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...
, they continued to be sold until June 1980, thereafter being replaced by Series EE bonds. A version of Series EE bonds, known as the Patriot Bond, is a sort of post-September 11 war bond, but has never enjoyed the broad subscription of the Series E war bond.