More Firms Warn on Earnings

NEW YORK —  Sales of War Bond

Increase by 36%

The government is reporting a 36% boost in sales of an ordinary savings bond that was transformed into a “war bond” after last year’s terrorist attacks.

The Treasury Department, under pressure from Congress after the attacks, brought back the war bond concept, which was a popular way during World War II for Americans to help the war effort. Lawmakers who urged the change said they were responding to constituents who wanted to help pay for the war against terror and relief efforts for the victims.

As in the past, however, proceeds from war bond sales were not earmarked for a specific purpose but went into the government’s general fund.

The Treasury reported $1.57 billion in sales of Patriot Bonds between December, when the Series EE savings bonds were renamed, and July. That is $419 million more than were sold during the same period a year earlier.

Patriotism may have helped spur sales, but the return on the bonds didn’t hurt the marketing effort, analysts said: Interest rates on the bonds have hovered around 4%, which is attractive compared with about 1.3% for money market mutual funds and even less on some basic bank savings accounts.