Posted on: Saturday, November 17, 2001

'Patriot bonds' to help pay for U.S. war on terrorism

By Nancy Zuckerbrod
Associated Press

WASHINGTON — The Treasury Department is going to issue the first war bonds since World War II to help pay for the fight against terrorism and relief efforts following the Sept. 11 attacks.

Treasury Secretary Paul O'Neill signed off on the plan yesterday after getting a letter from a bipartisan group of lawmakers urging that "Patriot Bonds" be issued.

The department said the bonds would be designated Series EE savings bonds and sold as "Patriot Bonds" through financial institutions and the Bureau of the Public Debt. The current rate, in effect through April, is 4.07 percent. The bonds will be available in denominations from $50 to $10,000.

"The public is unified in its desire to take decisive action and now will have the opportunity to contribute directly to help rebuild the broken economy and retaliate against terrorism," said Sen. Mitch McConnell, R-Ky., who sponsored war bond legislation in the Senate.

The money raised will not be earmarked but help with the government's overall anti-terrorism efforts, according to the Treasury Department.

The Senate and House both recently approved legislation calling for the issuance of war bonds.

Treasury officials had been lukewarm to the idea, saying the best way for citizens to help the country would be to donate to charity or spend money to boost the economy.

But Alex Eucare, a marketing executive from Vienna, Va., predicted today people would embrace the bonds.