47061 10/98
PROSPECTUS SUPPLEMENT
dated October 5, 1998 to:
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PUTNAM AMERICAN GOVERNMENT INCOME FUND ("the fund")
Prospectus dated January 30, 1998
The third paragraph under the heading "How the fund is managed,"
is replaced with the following:
The following officers of Putnam Investment Management, Inc.
("Putnam Management") have had primary responsibility for the day-
to-day management of the fund's portfolio since the years stated
below:
BUSINESS EXPERIENCE
OFFICER YEAR (AT LEAST 5 YEARS)
- ------- ---- ----------------------------
Kevin M. Cronin 1998 Employed as an investment
Managing Director professional by Putnam
Management since 1997.
Prior to February, 1997, Mr.
Cronin was a Vice President
and Fund Manager at MFS
Investment Management.
Michael Martino 1994 Employed as an investment
Managing Director professional by Putnam
Management since 1994.
Prior to January, 1994, Mr.
Martino was an Executive
Vice President and Chief
Investment Officer at Back
Bay Advisors.
