House Votes to Allow Treasury War Bonds

The U.S. House on Tuesday voted to authorize the Treasury Department to issue war bonds to help the country recover from the Sept. 11 attacks and fight a war against terrorism.

But a top Treasury official said Americans might do more for the economy by giving to charities or spending money, rather than saving through war bonds.

The House by voice vote approved a measure to allow the Treasury to market interest-bearing war bonds, though it left the details of such securities to Treasury officials.

“At this time of national unity these war bonds serve as an ideal vehicle for Americans to support efforts to bring those responsible for these attacks to justice,” said Rep. John E. Sweeney (R-N.Y.), who sponsored the legislation.

The Senate passed a similar measure as part of a larger spending bill and would have to vote again on it as a separate bill before it goes to President Bush for his signature.

Treasury officials have been lukewarm, at best, on the idea, noting that the government still is operating with a budget surplus and has no great need for cash.

“The intent behind the war bonds is quite understandable. However, in terms of finding a solution ... I would say that we would first recommend Americans continue to contribute to charities, as they have been doing,” Brian Roseboro, Treasury assistant secretary for financial markets, told reporters at a Bond Market Assn. conference in New York.

Spending money to stimulate the economy also is a good idea, he said.