Letter to the Secretary of the Treasury Approving an Increase in the Interest Rate on Series E and H Savings Bonds.
Dear Mr. Secretary:
I am returning with my approval your proposal to increase the interest rate on all United States Series E and H Savings Bonds.
I believe that this increase will insure a fair rate to all those patriotic Americans who buy U.S. Savings Bonds.
It has been vital in quiet and stormy times alike--as a source of non-inflationary financing for government--as a matchless means of personal savings.
I want those great benefits to continue. I want them strengthened so that we can continue to carry our burden in Vietnam and sustain our economic boom without danger of inflation.
We can do no less to bar inflation, improve fiscal management, and keep faith with millions of investors.
It is my earnest hope that purchases and holdings of U.S. Savings Bonds will rise substantially--both through signing up new buyers and through increased support from those who already are buying bonds. I am sure that the higher rate of return on Savings Bonds--together with the patriotic spirit of all Americans--will make this hope a reality.
LYNDON B. JOHNSON
[The Honorable Henry H. Fowler, Secretary of the Treasury, Washington, D.C.]
Note: Secretary Fowler's proposal, in the form of a letter to the President dated February 15, was also made public by the White House. Referring to the President's letter of January 18 on the need for higher interest rates on U.S. savings bonds (see Item 15) the Secretary recommended an increase from 3.75 percent to 4.15 percent on Series E and H bonds sold after December 1, 1965. He also recommended increasing the yield on outstanding bonds sold before that date (2 Weekly Comp. Pres. Docs., p. 224).
See also Item 72.
Lyndon B. Johnson, Letter to the Secretary of the Treasury Approving an Increase in the Interest Rate on Series E and H Savings Bonds. Online by Gerhard Peters and John T. Woolley, The American Presidency Project https://www.presidency.ucsb.edu/node/238168