INVESTMENT: Boom in Savings Bonds

When it comes to buying U.S. savings bonds, patriotism has not paid —until recently. One of the Government's highest economic policymakers was asked not long ago by the Treasury to urge the public to buy bonds; he refused, on grounds that the 5.5% interest rate did not keep up with inflation. In sum, bond buyers actually lost money. Realizing this, Americans long redeemed their old bonds faster than they bought new ones.

Now, in an unexpected turnabout, the Treasury Department reports that savings bonds are selling better than they have since 1945. This year's sales seem sure to top $5.5...

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