US may issue war bonds

Bonds would be aimed at small savers

The United States could issue war bonds for the first time since 1945 after members of Congress voted in favour of the measure.

War bond sales would enable ordinary Americans to show support for the United States' campaign against the suspects in the 11 September attacks, according to the bill's backers.

"At this time of national unity these war bonds serve as an ideal vehicle for Americans to support efforts to bring those responsible for these attacks to justice," said John Sweeney, a Republican congressman from New York who initiated the bill.

The House of Representatives approved the proposal on a voice vote. Under the US constitution, all tax-raising legislation must pass the House to become law.

The bill, which calls on the Bush Administration to issue the bond, will now move on to the Senate.

The Senate has already approved identical legislation as an amendment to the Treasury's budget bill last month.

The Treasury is thought to be less keen on the measure, though it has expressed support for the idea, correspondents say.

"The Treasury Department certainly appreciates the patriotic intent and sentiment behind the legislation and we are reviewing the proposals at this time," a Treasury spokesman said.

In common with many economists, the Treasury has urged US shoppers to keep spending to support the economy.