Any Bonds Today?

Any Bonds Today?

As I write this I’m recalling a tune I haven’t heard since childhood.

Any bonds today?
Bonds of freedom,
That’s what I’m selling.
Any bonds today?

The ditty was written by Irving Berlin early in World War II to promote the National Defense Savings Program and sell Series E “War Bonds” to the American public. It was introduced in a short Looney Tunes cartoon by Bugs Bunny accompanied by Porky Pig and Elmer Fudd. Before long the Andrew Sisters picked it up.

The song was just one initiative in a huge government effort to raise money for the war. Movie stars like Rita Hayworth and Bette Davis performed in bond rallies; indeed, every segment of American society got into the act. For instance, Norman Rockwell spearheaded an art campaign with a series of illustrations. Even school children did their bit, selling war savings stamps to those who could not afford bonds. Overall, the effort was a huge success, bringing in hundreds of millions of dollars from citizens, who purchased, at 75% of face value, bonds ranging in value from $25.00 to $10,000, which matured in ten years and yielded 2.9 percent.

As I look at the current administration’s efforts to restart our economy I wonder if such a campaign might succeed today to defray the cost of the recovery. The same passion and enthusiasm that swept Barack Obama into office could be channeled into boosting a bond sale effort. However drained the nation’s finances may be there are still many wealthy or at least comfortable people who might be persuaded to invest in a bond to help turn their nation’s finances around. And perhaps those who are less well heeled might be willing to set a little bit of money aside to save for a bond. Musicians, artists, movie and television celebrities would undoubtedly pitch in as they pitched into the election campaign. School children and college students are particularly resourceful in raising funds for patriotic causes. Obviously we wouldn’t call them “War” Bonds but there is no end of talent to coin the appropriate name.

We don’t have to do anything but repackage the existing Series EE bond, which sells for half face value and doubles in twenty years. Interest earned is exempt from state and local income taxes, and federal income tax can be deferred until the bond is redeemed. Currently, EE’s earn interest for thirty years.

Given all the complaints about foreign ownership of our nation’s assets, one especially appealing aspect of this proposal is that it would help restore ownership of our country back into the hands of its citizens. So –

Scrape up the most you can.
Here comes the freedom man
Asking you to buy a share of freedom today.

Richard Curtis