when comparing Series E with Series EE. 87 The program of reporting savings bond sales on tape also increased. By 1977 major issuers of savings bonds were reporting $67.7 million sales on tape, 13 percent of E bond sales and 50 percent of payroll deduction sales. The handling of daily summary reports from Federal Reserve Banks was placed completely on a computerized basis during 1979. 88 Looking Ahead As the decade of the 1970s ended, the Bureau continued its search for new and innovative management methods and computer applications. Starting in 1980 the Bureau began preparing a series of "Five-Year Plans". During the same year, an experiment was undertaken which permitted employees to work under a system of flexi-time. 89 There is one final project that deserves mention, for it was a harbinger of things to come in the next decade. Because of the growth in book-entry accounts, which in many cases were still kept on a manual recording system, problems were arising in ensuring a timely processing of the issue and redemption of 13- and 26-week bills. In fact, unusual circumstances in April and May 1979, had resulted in 4,000 redemption checks being mailed out after the due date of the securities. 90 The delay resulted in lost interest of about $125,000 to the debt holders. Since there was no legal authority to enable the Bureau to compensate these debt holders for their loss, a bill to authorize payment of this lost interest, and to extend the authority of the Bureau to make payments for such future losses was recommended by the House and Senate. At the same time, a suit was filed on behalf of the debt holders to compel the interest payments, and the Justice Department was in the process of settling those claims. 91 This problem occurred despite automation. During fiscal year 1979, a first phase of selected automation of book-entry accounts maintained by the Treasury was completed. This system made it 87 Secretary, Annual Report, 1980, 162. 88 Secretary, Annual Report, 1979, 161. Anderson, Internal Memo, December 20, 1980, BPD File D-120.9 H.J. Hintgen, Draft Memo, In BPD files, Undated. 89 Secretary, Annual Report, 1980, 161. possible for the Treasury to service accounts with computergenerated statements of account and to issue checks for discount and redemption payments. Faster service and more timely issuance of payments were thereby provided to investors. 92 To avoid the type of delays in payment just mentioned, however, the system would have to be expanded. Over the next several years, this expansion would take place, generating a revolution in the sale of marketable government securities. |