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U.S. Savings Bonds Campaign Kickoff, Grand Rapids, MI, April 10, 1972
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U.S. Savings Bonds Campaign Kickoff, Grand Rapids, MI, April 10, 1972
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Gerald R. Ford Congressional Papers
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The original documents are located in Box D32, folder "U.S. Savings Bonds Campaign
Kickoff, Grand Rapids, MI, April 10, 1972" of the Ford Congressional Papers: Press
Secretary and Speech File at the Gerald R. Ford Presidential Library.
Copyright Notice
The copyright law of the United States (Title 17, United States Code) governs the making of
photocopies or other reproductions of copyrighted material. The Council donated to the United
States of America his copyrights in all of his unpublished writings in National Archives collections.
Works prepared by U.S. Government employees as part of their official duties are in the public
domain. The copyrights to materials written by other individuals or organizations are presumed to
remain with them. If you think any of the information displayed in the PDF is subject to a valid
copyright claim, please contact the Gerald R. Ford Presidential Library.
Digitized from Box D32 of The Ford Congressional Papers: Press Secretary and Speech File at the Gerald R. Ford Presidential Library
U.S. SAVINGS BONDS CAMPAIGN KICKOFF,
GRAND RAPIDS, MICHIGAN, 12 NOON MONDAY
APRIL 10, 1972.
CHAIRMAN BROWN, DISTINGUISHED
GUESTS, LADIES AND GENTLEMEN ---
IT IS A VERY REAL PLEASURE FOR
ME TO BE HERE TODAY. I WELCOME THIS
OPPORTUNITY TO TALK WITH YOU ABOUT OUR
SAVINGS BONDS PROGRAM AS YOU LAUNCH YOUR
1972 CAMPAIGN.
THIS IS AN IMPRESSIVE ASSEMBLY
OF GRAND RAPIDS LEADERSHIP. I AM VERY
PLEASED WITH THIS OUTSTANDING SUPPORT ON
THE PART OF INDUSTRY AND LABOR AND I
THANK YOU. I OFFER SPECIAL THANKS TO OUR
FINE HOST, CHAIRMAN BROWN.
SOME OF YOU MAY HAVE WONDERED
JUST WHERE SAVINGS BONDS FIT INTO OUR
GERALD FORD LIBRARY
-2-
ECONOMIC PICTURE -- IN THE LIGHT OF THE
GOVERNMENT'S NEW ECONOMIC POLICIES AND OUR
DESIRE TO STIMULATE CONSUMER SPENDING FOR
GOODS AND SERVICES.
I CAN SAY, WITHOUT
EQUIVOCATION, THAT THE SAVINGS BONDS
PROGRAM WILL CONTINUE, UNDER THE NEW
ECONOMIC PLAN, TO FILL AN IMPORTANT ROLE.
THOSE WHO BUY SAVINGS BONDS REGULARLY
WILL BENEFIT FROM THE FAMILY SECURITY
DERIVED FROM THE PAYROLL SAVINGS PLAN.
BY THE SAME TOKEN, THE GOVERNMENT -- AND
THE NATION AT LARGE -- WILL GAIN FROM
AN ONGOING FLOW OF THESE STABLE,
NON-INFLATIONARY SAVINGS FUNDS.
THRIFT IS STILL A VIRTUE, A
HABIT WHICH SOMETIMES TAKES A LONG TIME
TO FORM AND CERTAINLY A HABIT WHICH NEEDS
-3-
CONSTANT ENCOURAGEMENT. THE PAYROLL
SAVINGS PLAN HAS FOR YEARS PERFORMED A
VALUABLE SERVICE IN MAKING IT EASY FOR
OUR CITIZENS TO PUT ASIDE SMALL SUMS ON
A REGULAR BASIS FOR EMERGENCY NEEDS AND
FUTURE OPPORTUNITIES. FOR THE
SELF-EMPLOYED, THE PROFESSIONAL MAN AND
WOMAN, THE BOND-A-MONTH PLAN HAS BEEN A
BENEFICIAL PROGRAM.
AS OF MARCH 31, THE CASH VALUE
E/H.
OF E AND H_BONDS OUTSTANDING AMOUNTED TO
MORE THAN $55 BILLION. WITH THE
SS
INCLUSION OF FREEDOM SHARES -- WHICH
WERE WITHDRAWN FROM SALE ON JULY 1, 1970, --
HOLDINGS TOTAL $55.6 BILLION, AN ALL-TIME
PEAK.
THIS IS A HUGE SUM OF MONEY
IN THE HANDS OF TENS OF MILLIONS OF
-4-
AMERICANS WHO NOW OWN SAVINGS BONDS. IT
REPRESENTS 22 PER CENT OF THE
PRIVATELY-HELD PORTION OF THE PUBLIC
DEBT.
THE IMPORTANCE OF SAVINGS
BONDS IN TERMS OF MANAGING THE NATIONAL
DEBT IS NOT FULLY REFLECTED IN THIS
SINGLE FRACTION, SIGNIFICANT THOUGH IT IS.
THE FACT IS THAT SAVINGS BONDS TODAY,
EVEN WITH THEIR SHORTER INITIAL
MATURITIES, CONSTITUTE A VERY STABLE
PORTION OF THE GOVERNMENT DEBT.
BECAUSE OF THE 4-17 PER CENT
INTEREST RATE CEILING ON GOVERNMENT BONDS
THAT DATES FROM WORLD WAR ONE, THE
TREASURY -- FROM 1965 UNTIL THIS YEAR --
HAD BEEN PREVENTED FROM ISSUING ANY
SECURITIES OF MORE THAN SEVEN YEARS
TO 108. FORD LIBRARY
-5-
MATURITY. WE NOW HAVE $10 BILLION OF
AUTHORITY FROM CONGRESS TO ISSUE BONDS
LONGER THAN SEVEN YEARS WITHOUT REGARD
TO THE 4 1/4 PER CENT CEILING.
THIS AUTHORITY WILL BE USED
GRADUALLY, AND SAVINGS BONDS WILL REMAIN
IMPORTANT IN THE OVER-ALL STRUCTURE OF
THE TREASURY'S DEBT.
THUS, IT IS NOT DIFFICULT TO
UNDERSTAND WHY THE TREASURY IS CONCERNED
THAT WE CONTINUE TO BE ABLE TO COUNT ON A
SOLID BASE OF FUNDS PROVIDED TO THE
GOVERNMENT IN THE FORM OF SAVINGS BONDS
DOLLARS. ON THE BASIS OF PAST EXPERIENCE,
I CAN PREDICT THAT THE SAVINGS BONDS SOLD
51/1/m
TODAY, ON THE AVERAGE, WILL NOT BE
REDEEMED FOR 5 1/2 YEARS, WHICH IS
CONSIDERABLY LONGER THAN THE AVERAGE
FORD LIBRARY
-6-
MATURITY OF OUR MARKETABLE ISSUES.
THIS MAY SOUND A BIT STRANGE,
SINCE ONE HEARS SO OFTEN THAT SAVINGS
BONDS ARE CASHED IN PRACTICALLY AS SOON
AS THEY ARE BOUGHT. IT IS TRUE THAT
THERE ARE THOSE WHO TURN THEM IN AFTER
THE MINIMUM WAITING PERIOD, AND EARLY
REDEMPTIONS ARE A PROBLEM. BUT, BY AND
LARGE, OUR BUYERS HOLD ONTO THEIR SAVINGS
BONDS. EVERY ANALYSIS WE HAVE MADE SHOWS
THAT IN COMPARISON WITH DEPOSITS AT
COMMERCIAL BANKS, SAVINGS AND LOAN
ASSOCIATIONS, AND MUTUAL SAVINGS BANKS,
PEOPLE HOLD THEIR SAVINGS BONDS.
WE NO LONGER NEED TO APOLOGIZE
FOR THE SAVINGS BONDS INTEREST LEVEL.
SAVINGS BONDS NOW EARN 5 PER CENT, WHEN
HELD TO MATURITY. THIS IS A GOOD RETURN
-7-
A SOUND RETURN, A GUARANTEED RETURN.
FROM THE BEGINNING OF THE
SAVINGS BONDS PROGRAM, THE
INDUSTRY-ORIENTED PAYROLL SAVINGS PLAN
HAS BEEN THE BACKBONE OF THE PROGRAM.
TODAY, MORE THAN 40,000 COMPANIES, LARGE
AND SMALL, OPERATE THE PLAN, AND THE
SAVINGS BONDS PURCHASED BY THEIR
EMPLOYEES ACCOUNT FOR MORE THAN
TWO-THIRDS OF TOTAL SALES.
THE U.S. INDUSTRIAL PAYROLL
SAVINGS COMMITTEE -- WITH THE SUPPORT OF
ORGANIZED LABOR AND THE VAST ARMY OF
SAVINGS BONDS VOLUNTEERS -- HAS
ACCOMPLISHED A FORMIDABLE TASK IN
PROMOTING THE SALES OF E BONDS. THE 1972
COMMITTEE HAS TAKEN ON A CHALLENGE JUST FORD
AS FORMIDABLE. WE ARE CONFIDENT THAT
LIBRARY TI
-8-
Too, WILL NOT ONLY MEET BUT EXCEED ITS
GOAL.
THOSE OF YOU WHO ARE SPEARHEADING
OUR 1972 CAMPAIGN ARE SELLING A PRODUCT
THAT IS TRIED AND TRUE -- ONE THAT IS GOOD
FOR THE NATION AND GOOD FOR EACH OF US AS
INDIVIDUALS. I FEEL SURE YOUR EFFORTS WILL
BE CROWNED WITH SUCCESS.
-- END --
GERALD FORD LIBRARY
UNITED
STATES
U.S. SAVINGS BONDS PROGRAM
"72
SINIALS
The Department of the Treasury
BONTS
U. S. SAVINGS BONDS DIVISION
FACT SHEET
KENT COUNTY "TAKE STOCK IN AMERICA" '72
SAVINGS BOND CAMPAIGN
"TSIA '72" COMMITTEE:
The Chairman of the Kent County "Take Stock In
America" Campaign is H. J. Brown, Plant Manager,
Fisher Body-Grand Rapids Plant No. 1, General
Motors Corporation. His Committee consists of
leaders in industry, banking, media, labor, and
education.
AREA COVERED:
Kent County
PURPOSE:
The purpose is to increase substantially the
sales of U. S. Savings Bonds through company
payroll savings plans. These bonds contribute
importantly to the sound management of the public
debt and help maintain our financial strength.
Savings Bonds help finance the necessary costs
in the least inflationary way, thus servicing
to protect the purchasing power of the dollar.
PARTICIPANTS:
In the metropolitan area, more than 200 companies
are being asked to conduct payroll savings
drives among their employes. These drives will
seek to enroll one out of every two people as
new payroll savings subscribers. In addition,
it will also seek to obtain increased allotments
from one out of every two people now buying
Bonds thru the Payroll Savings Plan.
Nationally, the Treasury seeks to enroll
2,248,000 new savers and increased allotments
through payroll savings.
10,000,000 Americans are presently buying Series
E Bonds on the Payroll Savings Plan.
THEME:
"Take Stock In America, with Higher Paying U.S.
Savings Bonds."
GOAL:
The Kent County goals are $9,923,000 in sales and
4,000 new payroll savers and increased allotments.
JOIN THE PAYROLL SAVINGS PLAN. BUY BONDS WHERE YOU WORK OR BANK.
MINITED
STATES
U.S. SAVINGS BONDS PROGRAM
The Department of the Treasury
"72
BONDS SANIALS
U. S. SAVINGS BONDS DIVISION
- 2 -
PAYROLL SAVINGS PLAN:
The Payroll Savings Plan was created in 1941
when Series E Bonds were first issued. It has
since become the most successful installment
savings plan ever devised. Maintained by
companies as a free service to their employes,
the Payroll Savings Plan provides for the
automatic and regular purchase of Series E Bonds.
Under the Plan, an employee authorized his
company to set aside a small part of his pay
each payday towards bond purchases. The amount
set aside is determined by the employee.
FACTS AND FIGURES
National sales goal for 1972 - $5,300,000,000
Payroll savers nationally in 1971 - 10,000,000
National goal for new payroll savers and/or increased allotments for
1972 is 2,248,000
Number of companies operating payroll savings in 1971 - about 40,000
Average Savings Bonds purchases per payroll saver - $27.00 per month
Tens of millions of Americans now own Savings Bonds
Kent County sales in 1971 - $9,757,479
Kent County sales goal for 1972 - $9,923,000
New payroll savers added in Kent County in 1971 - 7,600
Kent County goal for new payroll savers and/or increased allotments
for 1972 is 4,000
At the end of 1971 Americans owned nearly $55 billion in Series E and
H Bonds and Freedom Shares. This total represents 25% of the privately
held portion of the public debt. This compares with $30.7 billion
outstanding at the end of World War II.
Two types of Savings Bonds are sold today -- Series E, an appreciation
bond purchased at about 75% of face value, and Series H, a current
income bond which pays interest by semi-annual Treasury check. E Bonds
now earn 5½ interest when held to maturity of 5 years and 10 months.
(They pay 4% for the first year with interest increasing on a graduated
scale. At maturity, they pay 1/2% bonus.) Interest is not subject to
state or local taxes. Federal income tax on accrued E Bond interest can
be postponed until the bonds are redeemed. If current income is desired
E Bonds may be exchanged for H Bonds with continued tax deferment on
E Bond earnings. H Bonds earn 5½ interest when held to maturity of
10 years.
JOIN THE PAYROLL SAVINGS PLAN. BUY BONDS WHERE YOU WORK OR BANK.
UNITED
STATES
U.S. SAVINGS BONDS PROGRAM
"72
The Department of the Treasury
SIGNATURE
BONTS
U. S. SAVINGS BONDS DIVISION
- 3 -
31st Anniversary of the E Bond
May 1 marks the 31st Anniversary of the Series E Bond and of the Savings
Bonds volunteer program.
Success is measured by sales:
Since 1941 - Americans have purchased $190 billion worth of Savings
Bonds.
Since 1945 sales have averaged over $41/2 billion a year.
Approximately 120 million individual bonds are purchased each year --
an average of nearly 3 bonds per family. Total number of bonds sold
today is double that of 20 years ago.
More than ten million employes now buying Series E Bonds regularly
through the Payroll Savings Plan -- at an average of $324 per year
for each participant. Sales through Payroll Savings accounts for
approximately 70 percent of the total sales.
Other millions of Americans buy and hold savings bonds purchased from
banks, savings and loan associations, and other financial institutions.
The value of bonds outstanding averages over $1,000 per family.
The average life of all E and H Bonds issued since 1941 is over
7 years -- the average length of the marketable debt is only about
one-half of that of the savings bonds portion.
Americans earn more than $2 billion of interest annually on their
Savings Bonds.
Suggestions for tying-in to the 31st Anniversary period:
Check to see if any employees have been long time bond buyers --
possibly since 1941. Interview them and write personal stories
around the long-term reasons for buying and holding all these years.
Consider the millions of homes bought with Bonds -- Hundreds of
thousands of college educations financed with bonds --
Difference between subsistence and a "dignified" retirement --
Emergencies eased -- vacations financed -- weddings -- cars, etc. --
all made possible whenever a Savings Bond is cashed.
R. B. Goebel - Area Manager
US Savings Bond Division
The Department of Treasury
Grand Rapids, Michigan 49502
Telephone 456-2416
JOIN THE PAYROLL SAVINGS PLAN. BUY BONDS WHERE YOU WORK OR BANK.
Ymeque , cins get quest 11773
Savings Bond Company Kick-Off.
- Teaderhip - Briness Intor
Saving Bond Plan. fits into
NEW Economic PLAN
Bond
"stable mm on-inflation funk
Payroll saying - lazy,
way to save up for
an Emergency.
glood
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No of March 3 st -
E t H. - 55 billing
27%
held public delt.
Mesconcytion redemption -Larly
5'2 1/2 yrs.
Longer than Tamings
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HRS.
Good neturn - -5'/2%
LIBRARY