[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.

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