Financial Background of the U.S. Savings Bond: Development of Thrift Programs of the U.S. Treasury, 1917-1924

Abstract

The largest and most successful program yet designed to promote individual savings through Treasury policy has been the U. S. Savings bond program. At the savings bond's inception in 1935, a considerable body of experience had already been accumulated by the Treasury in the operation of thrift type programs during and after World War I. Similarities between the earlier and present thrift programs are both striking and of considerable developmental significance. Somewhat strangely, very little financial history has appeared primarily analyzing such facets of these savings programs as might naturally be of interest to economists and financial historians. This paper proposes to trace the development and formation of Treasury savings policy for individuals during the period from 1917 when the thrift program began until 1924 when the World War I phase ended. To define the boundaries of interest herein, only those non-marketable Treasury instruments designed to fit small personal portfolios are emphasized. Experiences prior to World War I are not part of this paper. Such lessons and general principles as may be derived from the fund of early thrift promotion experience will comprise the major part of this paper-particularly as these events may relate to or throw light on the savings bond program of more recent times.