[Congressional Record Volume 147, Number 142 (Tuesday, October 23, 2001)]
[House]
[Pages H7136-H7139]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
FREEDOM BONDS ACT OF 2001
Mr. HOUGHTON. Mr. Speaker, I move to suspend the rules and pass the
bill (H.R. 2899) to authorize the Secretary of the Treasury to issue
War Bonds in support of recovery and response efforts relating to the
September 11, 2001 hijackings and attacks on the Pentagon and the World
Trade Center, and for other purposes, as amended.
The Clerk read as follows:
H.R. 2899
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Freedom Bonds Act of 2001''.
SEC. 2. ISSUANCE OF FREEDOM BONDS.
Section 3105 of title 31, United States Code, is amended by
adding at the end the following new subsection:
``(f) Freedom Bonds.--The Secretary may designate one or
more series of bonds or certificates (or any portion thereof)
issued under this section as `Freedom Bonds' in response to
the acts of terrorism perpetrated against the United States
on September 11, 2001.''
SEC. 3. STUDY OF PUBLIC DEBT MANAGEMENT.
(a) In General.--The Commissioner of the Public Debt shall
conduct a study of the administrative costs of the Bureau of
the Public Debt associated with managing the public debt,
including, with respect to the various types of debt
instruments, interest rate costs and personnel and processing
costs related to issuing, redeeming, and otherwise
administering the instruments on both an annual basis and on
a transaction basis. The study should include--
(1) cost comparisons between high-amount, lower-volume
instruments (such as large Treasury bills and notes with
varying maturities) and low-amount, high-volume instruments
such as savings bonds,
(2) an analysis of the impact of the savings bond program
on the Federal Government, and
(3) an analysis of the impact of the savings bond program
on savings opportunities for the public.
(b) Report.--Not later than 180 days after the date of the
enactment of this Act, the Commissioner of the Public Debt
shall submit a report of such study to the Committee on
Appropriations and the Committee on Ways and Means of the
House of Representatives.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from New
York (Mr. Houghton) and the gentleman from Maryland (Mr. Cardin) each
will control 20 minutes.
The Chair recognizes the gentleman from New York (Mr. Houghton).
Mr. HOUGHTON. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I am going to echo many of the sentiments and the
feelings that other people have expressed today, but I would like to do
this in this particular context of the bill.
As we all know, last month we suffered a terrible blow and lives were
lost and buildings were destroyed and families were maimed and
businesses and structures were destroyed; but the American spirit, as
always, stood firm in the face of adversity, and there was an
outpouring of support for recovery and rebuilding. Police and
firefighters and rescue workers and volunteers of every kind worked
around the clock to respond to this attack.
The American people have shown a commitment to these efforts by
donating to charities in record numbers, over $300 million to both the
Red Cross and the United Way, for example; and blood banks, as we all
know, have been overwhelmed with donations, some 500,000 in 2 weeks
after the attacks. School children across the country are involved in
raising money for the attack victims and the children of Afghanistan.
This particular legislation allows another way for individuals to
support our relief efforts. The Treasury Department is authorized to
designate new savings bonds as freedom bonds in response to the acts of
terrorism of September 11. These freedom bonds will provide a method
for people across the country to lend their support to our country by
purchasing savings bonds.
I congratulate my colleague, the gentleman from New York (Mr.
Sweeney), for introducing this legislation.
Mr. Speaker, I reserve the balance of my time.
Mr. CARDIN. Mr. Speaker, I yield myself such time as I may consume.
Let me just echo the comments of the gentleman from New York (Mr.
Houghton). The gentleman is absolutely correct. I agree with everything
that my colleague has said about the events of September 11, the
response by our communities, our collective communities since September
11, and the fact that our Nation has really come together.
I must tell my colleagues that wherever I go in my district people
want to know what they can do to help; and I want to thank the
gentleman from New York (Mr. Sweeney) and the gentleman from New York
(Mr. LaFalce) for bringing forward this legislation that allows one
more opportunity where our Nation, where our citizens can demonstrate
how they can also help in our effort to beat back the terrorists and
what they have caused to our country.
H.R. 2899 establishes the freedom bonds, the United States savings
bond. I think many of us remember during other periods of America's
history when we have been tested. People lined up in order to buy
United States savings bond, victory bonds and now freedom bonds. It is
an opportunity to invest in our Nation and to become part of the way in
which we deal with the effects of September 11.
[[Page H7137]]
The proceeds will go to assist in the recovery and relief operations
following the terrorist attacks, including humanitarian assistance, and
to combat terrorism. This is a way for the public to show support in
our fight against terrorism. It is a safe, low-risk investment that is
available for the average person in our community. The average person
can participate by buying a freedom bond.
{time} 1445
It is a statement that the Federal Government stands ready to raise
funds needed to finance the war against terrorism with the full
participation of the American public.
For all those reasons, I want to thank my friend, the gentleman from
New York (Mr. Houghton), for bringing forward this legislation. We
strongly support it in a bipartisan way.
Mr. Speaker, I reserve the balance of my time.
Mr. HOUGHTON. Mr. Speaker, I yield myself such time as I may consume.
I congratulated the gentleman from New York (Mr. Sweeney) in my
statement, but I also want to thank the gentleman from New York (Mr.
LaFalce), and I am sorry for that omission.
Mr. Speaker, I yield 3 minutes to the gentleman from Illinois (Mr.
Kirk).
Mr. KIRK. Mr. Speaker, I thank the gentleman for yielding me this
time, and I applaud the bipartisan cosponsors of this resolution.
I want to rise in strong support of H.R. 2899, the Freedom Bonds Act
of 2001. This legislation draws upon the heritage of our greatest
generation. During World War II, war bonds were one important way that
every American could help make sure that our men and women in uniform
had what they needed for victory. My own district is home to
Libertyville, Illinois. Libertyville sold more war bonds per capita
than any other city in America. Libertyville oversubscribed every bond
quota assigned, and this achievement led to a unique honor.
In the fall of 1942, a young sailor reported for duty at the Great
Lakes Naval Training Center. Like the 3 million Americans who entered
the Navy there, James Cagney trained for war. On September 10, 1942, he
was able to leave the base and paid a unique honor to Libertyville's
war bond drive by opening a major Hollywood movie there, Desperate
Journey. Desperate Journey was a war thriller starring Errol Flynn and
Ronald Reagan and it opened at the Libertyville Theater. Tickets went
for a $25 war bond, and the evening was a smashing success, raising
$110,000 for the war effort.
Mr. Speaker, in these tough times after September 11, we return to
our values in tested ways to support our country and the cause of
freedom. This legislation recalls that spirit of Libertyville to enlist
the help of every American in our cause against terrorism. I would hope
that this legislation receives quick action and that Libertyville can
help launch our State's freedom bond effort. With the help of our
historian, Dean Larson, we can join our proud heritage with the mission
ahead.
Mr. CARDIN. Mr. Speaker, I yield 5 minutes to the gentleman from New
York (Mr. LaFalce), who is the sponsor of a bill similar to the one we
are debating here on the floor today.
(Mr. LaFALCE asked and was given permission to revise and extend his
remarks.)
Mr. LaFALCE. Mr. Speaker, I thank the gentleman for yielding me this
time, and I rise in support of H.R. 2899, the Freedom Bonds Act.
Immediately after the September 11 attack, I introduced legislation
authorizing the U.S. Treasury to issue special bonds to help fund
victim relief, rebuilding, military activity, counter- terrorism
activities, et cetera. So, too, did a number of other Members of
Congress.
The legislation before us today represents an amalgam of various
bills introduced in both the House and the Senate that would authorize
the U.S. Treasury to redesignate either all or part of the current
Series EE savings bonds as Freedom Bonds that will be available for
purchase anywhere in our country at local financial institutions and
also through the Treasury Department Web site directly.
Now, there are some media commentators who have suggested that these
bonds will not be the best investment possible. Well, that could well
be true, but that totally misses the point. It is not about being the
best financial deal, it is about giving all our citizens an opportunity
to play an active role in our Nation's response to terrorism, the same
role that their parents and grandparents of the greatest generation
played in contributing to the defeat of the axis powers half a century
ago.
It is obvious that the people want to contribute and actively
participate in our Nation's response to international terrorism. They
call every day. What can I do? Can I give blood? Can I do something?
Well, we are now giving them an opportunity to purchase Freedom Bonds.
The government will use this money for a multiplicity of purposes,
including those I have just articulated: fighting terrorism. But the
stronger our government is financially, the stronger response we will
be able to make against terrorism.
This legislation will allow all Americans the opportunity to purchase
bonds that are virtually risk free, and not a bad investment when we
consider what our investment might have been if we had invested in the
market, oh, say, March of 2000. We might be way, way, way ahead of the
game right now had we purchased EE bonds. The gentleman from New York
(Mr. Houghton) from Concordia, New York, understands what I am saying.
And, Mr. Speaker, let me congratulate the gentleman from New York
(Mr. Houghton) on the award that he is going to receive tonight from
the Center for National Policy, and let me also congratulate him for
having the courage to bring the lawsuit in Federal Court challenging
that clearly abusive decision of the FEC. I simply paid the fine. I did
not have the courage to go into court, as the gentleman is doing. God
bless him.
Mr. HOUGHTON. Mr. Speaker, I reserve the balance of my time.
Mr. LaFALCE. Mr. Speaker, I yield 3 minutes to the gentlewoman from
Ohio (Ms. Kaptur).
(Ms. KAPTUR asked and was given permission to revise and extend her
remarks.)
Ms. KAPTUR. Mr. Speaker, I rise in support of the Victory Bonds Act
of 2001 that was introduced by the gentleman from New York (Mr.
Sweeney), the gentleman from New York (Mr. LaFalce), and the gentleman
from Maryland (Mr. Cardin), and all those who have worked so very hard
here to bring this bill to the floor, including the gentleman from New
York (Mr. Houghton).
Like so many other Members of this body, I also have introduced a
savings bond measure and find that this one has many similarities to
the one that I have introduced and would urge the support of my
colleagues for, and I would ask the American people to think very hard
about purchasing one of these freedom bonds in order to help in our war
efforts. The amount of yield on the bond would be announced on a fairly
regular basis, but it is more than is paid for a current savings
account in a local financial institution and is guaranteed by the full
faith and credit of the government of the United States.
It is probably important to say for the record that it is also
important to purchase savings bonds because in the last 20 years almost
half of our public debt is now owned by foreign interests. This is a
staggering figure. We pay over $370 billion a year to offshore
interests to finance the spending of this economy. The past due bills
for the defense of the Nation, for the bailout of the savings and
loans, and for all the other expenses accrued in this government has
gone up markedly over the past two decades. This is a real way to make
America free again and to become independent again.
I would also urge, in discussing the purposes of this particular
bonds act to assist in the recovery and relief operations following the
terrorist acts, including humanitarian assistance and to combat
terrorism, that probably the key way that America can become
independent again is to cut our chief strategic vulnerability, which is
our dependence on imported petroleum.
It is no coincidence that Saudi Arabia is the major nation in the
Middle East from which this Nation imports petroleum. Of course, we
import also from Venezuela, Mexico, Nigeria, and other places where
democracy is not
[[Page H7138]]
exactly in full bloom. So I would hope that as these bonds are
purchased by the American people, that we would look very hard at
energy independence for our country and begin to wean ourselves off our
very dangerous dependence on imported petroleum.
In fact, to combat terrorism in the future, the most important way to
do that is for us to be independent here at home and to use some of
these dollars for investment in renewable technologies here in the
United States, in clean technologies, in the biofuels that we can
produce off our land, and in the clean coal reserves that we can
develop, where we have more Btus underground than the Middle East has
in Btus in the form of petroleum.
So I want to commend the authors of this legislation to create
freedom bonds and ask the entire American public to participate in
this. Think about this for Christmas and holiday gifts; think about it
for anniversary and graduation presents. It is the most important
purchase Americans can make this year, particularly when the proceeds
are invested in job producing projects here at home, and not just idle
consumption but in fact produce new wealth creation industries here at
home.
I would hope that kind of creativity is a part of the execution of
these Freedom Bond Acts, and in closing, I offer full support for this
measure, Mr. Speaker.
Mr. HOUGHTON. Mr. Speaker, I yield 5 minutes to the gentleman from
New York (Mr. Sweeney), who is the original conceiver of this
legislation.
Mr. SWEENEY. Mr. Speaker, I want to thank my friend, the gentleman
from New York (Mr. Houghton), for his help and all his advice and
counsel, and the ranking member, the gentleman from Maryland (Mr.
Cardin) for their help.
I apologize, Mr. Speaker, for being here a little late as this bill
has gone forward, but in these extraordinary times I was at another
meeting trying to work out other important matters that face my
district in New York and the Nation.
I am proud today to be introducing the war bonds legislation
authorizing the Department of the Treasury to establish a special
category of U.S. savings bonds to help the government pay for
rebuilding initiatives and anti-terrorism actions following the
September 11 attacks on New York City and Washington, D.C. As I said,
extraordinary circumstances now face our Nation, and in facing those
circumstances lawmakers and leaders in Washington must take
extraordinary action, and certainly the citizens of this great Nation.
The government will need to have every option available to it as we
pursue the treacherous cowards responsible for the acts of war against
our Nation. Let us join the other body today in passing this
legislation. The Treasury Department has indicated its support for the
measure which would allow the Treasury to borrow at a lower rate of
interest and thus maximize the return of assets to be put towards the
war effort.
Mr. Speaker, it is important to note that these instruments will most
likely replace existing government securities and therefore not compete
with other nongovernmental investment vehicles. I would also like to
encourage the Department of the Treasury to use the Ad Council to
develop the public awareness of this program.
At this time, Mr. Speaker, of great national unity, these war bonds
serve as an ideal vehicle for Americans to support efforts to bring
those responsible for these attacks to justice. They will provide the
American people an important and tangible method to be part of the
effort that will be ongoing and endearing. The bonds will provide the
average citizen with a convenient option for exercising their
patriotism and showing their support for our efforts, and they will
create additional resources for our government to use in expediting
this effort.
If passed, this legislation will allow patriotic citizens to
contribute to their country in a time of need and simultaneously help
finance the rebuilding of our Nation, as well as the efforts to bring
the culprits of the attack to justice.
Mr. Speaker, let me conclude by saying that the bill provides great
flexibility and discretion to Treasury in the hopes that the Treasury
Department may expedite implementation of this program. It is my hope
that such swift implementation will maximize the positive effects we
expect to see here.
Mr. Speaker, I urge the support of all my colleagues to pass this
important bill today.
Mr. CARDIN. Mr. Speaker, I yield such time as he may consume to the
gentleman from Michigan (Mr. Levin), a senior member of the Committee
on Ways and Means.
(Mr. LEVIN asked and was given permission to revise and extend his
remarks.)
{time} 1500
Mr. LEVIN. Mr. Speaker, I rise in support of this proposal. On May 1,
1941, the first World War II bond was sold to President Franklin D.
Roosevelt by Secretary of the Treasury, Henry Morgenthau. Over the
course of the war, more than $185 billion in war bonds were purchased
by more than 85 million Americans.
In one of his famous fireside chats, President Roosevelt told the
American people, ``All our fighting men overseas today have their
appointed stations on the far-flung battlefronts of the world. We at
home have ours, too. We are proud of our fighting men, most decidedly.
But, during the anxious times ahead, let us not forget that they need
us, too.''
President Roosevelt went on to say, ``Whatever else any of us may be
doing, the purchase of war bonds is something all of us can do and
should do to help win the war.''
If we are to win the long war against global terrorism, it is clear
that the fight must be waged, not only by the Federal Government, but
by the united American people. The war bond is both a symbol and an
expression of this unity.
Mr. Speaker, I was home in my district over the weekend talking with
my constituents and meeting with local leaders, including law
enforcement and emergency response personnel, mayors, city managers and
county and State officials. I was struck by how much everyone I spoke
to wanted to do whatever they could to help us with the fight against
terrorism and to protect lives and safety on the home front.
It is clear that we need much better planning, information sharing,
and coordination between all levels of government: Federal, State, and
local. There must be greater coordination among communities. As he
works to strengthen homeland defense, our former colleague, Governor
Ridge, has a vast reservoir of talent and experience on the local level
to draw on. The challenge is to find a way to tap this resource.
This bill is one way to tap the resources of individuals, of
countless citizens of this country, to help fight, keeping within
American traditions, the fight against terrorism. I urge support of
this bill.
Mr. HOUGHTON. Mr. Speaker, I reserve the balance of my time.
Mr. CARDIN. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, let me say in concluding that this is another
opportunity for us to show the unity of our Nation, to allow the
average person to be able to help contribute to a successful conclusion
of our war against terrorism. I urge my colleagues to support the
Freedom Bonds Act of 2001.
Mr. Speaker, I yield back the balance of my time.
Mr. HOUGHTON. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I have to admit I was against this legislation
originally because the whole concept of victory bonds in World War II
was to take money out of the economy so it would not be chasing
consumer products which were no longer in existence because the
production had moved towards defense.
But then in thinking through what is happening here, everybody wants
to be a part. Everybody wants to be a part of our effort, whether they
give money to the Red Cross or whether they give blood in a blood bank.
I think this is a worthy cause and something which Americans can
identify with, and I think it is the right thing to do.
Mr. Speaker, I thank the gentleman from Maryland (Mr. Cardin) very
much for his participation here; and I thank the originators of this
bill.
Mr. GILMAN. Mr. Speaker, I rise today in strong support of H.R. 2899,
the War Bonds
[[Page H7139]]
Act of 2001. I urge my colleagues to Support this timely, patriotic
measure.
This legislation directs the Secretary of the Treasury to establish a
new class of government bonds to finance the Rebuilding effort needed
in response to the terrorist attacks on the World Trade Center and the
Pentagon on September 11, 2001.
Mr. Speaker the barbaric attacks in New York City and Washington on
September 11th represent the deadliest act of terrorism ever carried
out as well as the first foreign assault on the continental United
States since 1814. They claimed more than 5,000 lives and the final
cost will be well into the tens of billions of dollars.
These attacks clearly represented an act of war against the United
States and on our way of life. For this reason, we are now engaged in
sustained military operations in south Asia against the terrorist
organization responsible for these attacks and their primary state
sponsor.
The response of the American people to these horrible attacks has
been stunning and unprecedented in its scope. Hundreds of millions of
dollars have been raised by charitable organizations, and the Depth of
the American people's generosity appears limitless. Still, there are
many who wish to do more.
This legislation provides an excellent opportunity for all Americans
to join in this important fight. War bonds were last issued during
World War II, where their purchase was seen as a patriotic duty.
Between 1941 and 1945 the American people purchased more than $185
billion in war bonds.
Given the overall public mood since September 11th, as well as the
large costs that will be associated with the prosecution of the war on
terrorism and the recovery and rebuilding operations in New York and
Virginia, this legislation is both timely and appropriate. The American
people wish to join their Government in fighting back against
terrorism. This legislation will make that participation possible.
Mr. HOUGHTON. Mr. Speaker, I yield back the balance of my time.
The SPEAKER pro tempore (Mr. Hansen). The question is on the motion
offered by the gentleman from New York (Mr. Houghton) that the House
suspend the rules and pass the bill, H.R. 2899, as amended.
The question was taken; and (two-thirds having voted in favor
thereof) the rules were suspended and the bill, as amended, was passed.
The title of the bill was amended so as to read: ``A bill to
authorize the Secretary of the Treasury to issue Freedom Bonds in
response to the September 11, 2001, hijackings and attacks on the
Pentagon and the World Trade Center, and for other purposes.''.
A motion to reconsider was laid on the table.
____________________