Savings Bond Bill Passed by House
The House voted yesterday to let President Eisenhower raise interest rates on Government savings bonds but denied his companion request for authority to boost returns on long-range marketable securities.</br></br>for passage of the legislation, which Is designed to spur lagging bond sales and relieve some of the financial pinch on the Federal Treasury.</br></br>The measure now goes to the Senate where approval Is almost certain. It would permit the President to Ignore the legal interest ceiling on Series G and H savings bonds purchased by millions of Americans through banks or payroll withholding.</br></br>The bill, which would be retroactive to June 1Û_ would apply to future bond purchases as well as to the $42 billion worth of savings bonds now held by an estimated 40 million Americans.</br></br>The President wanted the authority to pay higher Interest on savings bonds. But he also Insisted that Congress should let him raise interest rates on long-term marketable bonds purchased mainly by large investors such as banks and insurance companies.