Liberty bond

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Joseph Pennell's poster That Liberty Shall Not Perish from the Earth, for the fourth Liberty Loan (1918)

Douglas Fairbanks, movie star, speaking to a large crowd in front of the Sub-Treasury building, New York City, to aid the third Liberty Loan, in April 1918

A Liberty Bond was a special type of war bond that was sold in the United States to support the allied cause in World War I. It could be redeemed for the original value of the bond plus interest.

An aggressive campaign was created by Secretary of the Treasury William Gibbs McAdoo to raise money from war-supporting Americans by selling the bonds. The government used famous artists to make posters, and used movie stars to host bond rallies. Al Jolson, Elsie Janis, Mary Pickford, Douglas Fairbanks and Charlie Chaplin were among the celebrities that made public appearances promoting the idea that purchasing a liberty bond was "the patriotic thing to do" during the era. Chaplin also made a short film, The Bond, at his own expense for the drive. Even the Boy Scouts and Girl Scouts sold the bonds, using the slogan "Every Scout to Save a Soldier".

According to the Massachusetts Historical Society, Because the first World War cost the federal government more than 30 billion dollars (by way of comparison, total federal expenditures in 1913 were only $970 million), these programs became vital as a way to raise funds.

Through the selling of "Liberty bonds," the government raised around 17 billion dollars for the war effort.

Securities, also known as Liberty Bonds, were issued in the aftermath of the September 11, 2001 terrorist attacks to finance the rebuilding of the areas affected.

[edit] Interest rates and issuing history

Apr 24, 1917 Emergency Loan Act authorizes issue of $5 billion in bonds at 3.5 percent.
Oct 1, 1917 Second Liberty Loan offers $3 billion in bonds at 4 percent.
Apr 5, 1918 Third Liberty Loan offers $30 billion in bonds at 4.5 percent.
Sep 28, 1918 Fourth Liberty Loan offers $6 billion in bonds at 4.25 percent.