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.
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 $185.7billion from 85million 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 $185.7billion raised during the continual campaign, a total of $156.4billion was raised during the eight specific drives:
Poster for the Second War Loan Drive (April 12 – May 1, 1943)
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]
C. C. Beall poster for the Seventh War Loan Drive (May 14 – June 30, 1945)
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).
First War Loan Drive – November 30 through December 23, 1942. The initial goal was $9billion; the drive raised $13billion. However, only $1.6billion was raised from individuals; corporations and commercial banks accounted for the vast majority of the funds raised.
Second War Loan Drive – 20 days, from April 12 through May 1, 1943. The initial goal was $13billion; the drive raised $18.5billion. 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 – September 9 through October 1, 1943. The initial goal was $15billion, which would require a doubling of the bond sales from the prior drive, with at least 40million of the 130million American citizens needing to purchase a $100 war bond. PresidentFranklin D. Roosevelt addressed the nation via one of his fireside chats on September 8. Singer Kate Smith raised $39million during a September 21 CBS broadcast, part of the $600million she raised on a series of one day broadcasts throughout the war.[4][5] Final sales were $19 billion.
Fourth War Loan Drive – January 18 through February 15, 1944. The initial goal was $14 billion, and the drive was targeted towards farmers and women. A Quiz Kids radio broadcast from Syria Mosque in Pittsburgh raised $5 million.[6]Kate Smith again proved a popular draw, raising $101 million during a February 1 broadcast.[5] Final sales were $16.7 billion, with nearly 70 million separate bonds sold.
Fifth War Loan Drive – June 12 through July 8, 1944. On FDR's recommendation, Morgenthau asked Orson Welles to lead the Fifth War Loan Drive, which opened with a one-hour radio show on all four networks, broadcast from Texarkana, Texas. Including a statement by the President,[7] the program defined the causes of the war and encouraged Americans to buy $16billion in bonds. Additional war loan drive broadcasts took place June 14 from the Hollywood Bowl, and June 16 from Soldier Field, Chicago.[8]:371–373 Sales were $20.6billion.[2]
Sixth War Loan Drive – November 2 through December 16, 1944. The drive raised $21.6billion.[2]
Seventh War Loan Drive – May 14 (just days after Victory in Europe Day) through June 30, 1945.[9] Officials were concerned that the defeat of Germany might lessen bond sales. The amount raised during the six-week drive was over $26 billion.[2]
Eighth War Loan (Victory Loan) Drive – October 29 through December 8, 1945. The goal was $11 billion. More than $21 billion was raised.[2]
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]
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]
