Chapter 1762： War bond (1/2)

Tax increase can only solve half of the military expenditure at most. This is only the beginning. As the subsequent huge war proceeds, astronomical figures are needed.

Therefore, it is necessary to raise more funds. Over-issued currency is not enough. There is only one way left.

”It seems that we need to issue war bonds.” Roosevelt smoked and looked at the wind-fluttering branches outside and said: ”Our people love our country. They will definitely buy our war bonds. ”

War bonds are also a kind of national debt. As the name suggests, the country borrows money from the people. In the US national debt classification, war bonds are classified as E.E national debt.

In fact, just before the Pearl Harbor incident, because the amount of aid to the United Kingdom and the Soviet Union was so large that it exceeded the normal ability to pay fiscal expenditures, the United States began to issue defense bonds aimed at assisting the Soviet Union and the United Kingdom.

Back then it was just called a national defense bond, but now, issuing new bonds has become an official war bond, and the war has already begun.

Hearing Roosevelt’s words, Secretary of the Treasury Morgenthau nodded: ”Mr. President, issuing war bonds should be a good way. You are right. Our citizens are patriotic. Now the entire country is facing an emergency of life and death. , They will definitely buy our war bonds.”

If the currency is issued in excess, it will bring a terrible risk of inflation, but the issuance of war bonds is different. This is also a way to stimulate the people's patriotic enthusiasm.

Morgenthau agreed, Marshall did not speak either, and everyone present was supportive.

Until now, the only way to raise more funds is to issue war bonds.

Now that it has been decided, it is time to discuss the issue of how to issue. Roosevelt could not be troubled by this. Roosevelt soon stated the specific measures.

”Our war bonds, like the previous national defense bonds, can be divided into two types: book-entry and paper. In order to ensure proper circulation, bearer paper bonds are the main method. It adopts our US dollar anti-counterfeiting standard. Printing. The denominations of the bonds are 25, 50, 100, 200, etc.”

Almost applying the original defense bonds, Roosevelt took the last puff of cigarettes into his lungs and slowly exhaled them. With the stimulation of nicotine, Roosevelt felt that his thinking became clearer: ”At the same time, our bonds carry interest. For example. An individual purchase price of a 25-dollar bond is only 18.75 US dollars. When it matures after 10 years, our US government will exchange it for a full amount of 25 US dollars. In this way, the annual interest is 3.33%.”

The interest rate is not high. If you consider the factor of inflation, it will just save your money. Moreover, ten years later, let the US president worry about it. He will certainly not be in power until that time.

Now we can borrow money first.

Roosevelt’s suggestion was reasonable, and Morgenthau said: ”Okay, we will prepare immediately, so how many are we going to issue?”

Roosevelt threw away the cigarette butt, and said: ”First issue ten billion dollars.”

Ten billion dollars! This is definitely an astronomical figure. You must know that the current gross national product of the entire United States is only more than 100 billion U.S. dollars, less than 200 billion. Now, Roosevelt is equivalent to more than tenths of the entire gross national product. One is up.

”If the sales are good, it can be over-sold, with an upper limit of 20 billion. This is the first phase.” Roosevelt said.