Harry S. Truman photo

Statement by the President Upon Signing Bill Authorizing Redemption of Veterans' Terminal Leave Bonds.

July 26, 1947

I HAVE today signed H.R. 4017, an act amending the Armed Forces Leave Act of 1946. The amendment provides that terminal leave bonds now held by veterans may be redeemed for cash any time after next September 1st. For the convenience of bondholders, the Treasury Department is making arrangements with banks and other financial institutions in order that bonds may be cashed in local communities without cost to veterans.

I wish to emphasize strongly that it is to the veterans' best interest that they keep their bonds if they do not absolutely need to cash them now. Almost $2 billion of bonds are outstanding. If a sizable proportion of these bonds should be redeemed in the near future, general inflationary pressures, which we have been endeavoring to control, would receive a substantial boost. Several hundred million new dollars poured into the spending stream would exert a strong upward pressure on prices. If, on the other hand, veterans choose the wise course, hold their bonds and continue to draw 2 1/2 percent interest, their dollars will buy more when they cash their bonds after inflationary conditions have eased. I urge veterans not to cash their bonds unless they are in urgent need of the money now.

Note: As enacted, H.R. 4017 is Public Law 254, 80th Congress (61 Stat. 510).

Harry S Truman, Statement by the President Upon Signing Bill Authorizing Redemption of Veterans' Terminal Leave Bonds. Online by Gerhard Peters and John T. Woolley, The American Presidency Project https://www.presidency.ucsb.edu/node/232108

Simple Search of Our Archives