DECEMBER 27, 1950
HYDE PARK, Tuesday—There is one way in which everyone—men, women and children—can help our government at the present time, and that is by buying savings bonds. It is a great satisfaction to know that the number of people holding Series E bonds has increased in spite of the fact that in 1946 and in 1950 sales declined somewhat and redemptions were increased. These Series E bonds are the ones most easily bought by people on small or average income, since they can be obtained in denominations of $25, $50 and $100 bonds.
Everyone of us today can be a shareholder in our country's future. If we buy these bonds we help to keep down inflation. They mean fewer purchases of unnecessary things and more money coming into the government through individual investment. When the government has to sell to the banks that encourages inflation, because it means the printing of more money. The more we put into bonds as individuals, the more we help our government to keep down inflation and the better it is for the economy of the country as a whole.
I have heard people wonder whether it was a safe investment to buy our country's bonds at the present time. I think the best argument to quiet anyone's fears is the one that a businessman gave me. He said that if the time came when our government could not pay interest on its bonds, or redeem its bonds when necessary, then it would mean that nothing that we possessed would have any value. It would not matter what happened, since we would probably lose all of our possessions and be lucky if we did not lose our lives as has happened in various countries in times past.
Even businessmen, who have been very critical of some of the government's economic methods employed in years gone by, have advocated the buying of these bonds by their employees through the payroll deduction plan. You can have so much taken out of your pay and invested in bonds. If you have a bank account, you can ask your banker to buy a bond at stated times and deduct the cost from your account. One businessman I know has been buying regularly every month out of his pay check since 1941. He is looking forward to the time when he will have a regular monthly income coming in from his bonds investment as they mature at the end of the 10-year period. When this happens he plans to reinvest them, but the plan does give him a nice sense of security to feel that that income is rolling up for his old age or for the time when he wishes to retire.
It is also good to know that your investment in these bonds assures you of no loss if you have to cash them in before maturity. You can always get back what you put in, plus the interest up to the time you are obliged to cash them in. Of course, it is desirable if possible to let them come to maturity, however, and get the benefit of your full interest.
Four-H club groups are being encouraged to save and in various schools plans for saving have been started. By such action the government hopes to start the habit of thrift in young people as well as in older people.