War bond

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An American War Bonds poster from 1942

War bonds are a type of savings bond used by combatant nations to help fund a war effort and as a monetary policy for controlling inflation.

1 First World War
2 Second World War
3 Patriot Bonds
4 Notes
5 External links

[edit] First World War

A war savings stamp poster from World War I urged women to invest.

In 1917 and 1918, the United States government issued Liberty Bonds to raise money for its involvement in World War I. 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.^[1]

Canada's war bonds were called Victory Bonds.^[2]

[edit] Second World War

Main article: Series E bond

In 1941, in an effort to control inflation, the U.S. Treasury began marketing the new Series E Bonds U.S. Savings Bonds as "defense bonds". The government used the hype of the war to market the bonds to the country as a way to raise money for the war, when in fact they were used to take money out of the economy so inflation would not occur. The first one was sold to President Franklin D. Roosevelt on May 1, 1941, by Secretary of the Treasury Henry Morgenthau.^[3] After the formal entry of the United States into the war in December of that year, these bonds became known as "war bonds". These bonds were simply the latest offering of the U.S. Savings Bonds program that had begun in 1935, which replaced U.S. Postal Savings Bonds, and continues to this day. However, the mood of the nation at that time allowed the U.S. government to market Series E bonds as "war bonds", "war loans", "victory bonds", and by other names meant to appeal to a sense of patriotism.

National Service Board for Religious Objectors offered civilian bonds in the United States during WWII primarily to members of the historic peace churches as an alternative for those who could not conscientiously buy something meant to support the war. These were U. S. Government Bonds not labeled as defense bonds. In all, 33,006 subscriptions were sold for a total value of $6,740,161, mostly to Mennonites, Brethren and Friends.^[4] In a similar way, an alternative to war savings stamps was offered to school children.

The government appealed to the public through popular culture. The music industry got on board with songs and various campaigns. The Music Publishers Protective Association encouraged its members to include patriotic messages on the front of their sheet music like "Buy U.S. Bonds and Stamps". Various bandleaders and celebrities held rallies where they encouraged the public to help their country by buying war bonds.

Although they were initially marketed as war bonds, Series E bonds continued to be offered by the U.S. government until 1980, when they were replaced by the Series double E bond.

[edit] Patriot Bonds

On December 11, 2001, three months after the September 11, 2001 attacks, the U.S. government began issuing a version of the Series EE bond known as the "Patriot Bond". ^[5] While the paper document has the words "Patriot Bond" printed on it, the regular terms and conditions of Series EE bonds apply to Patriot Bonds, and money raised from the sale of Patriot Bonds is applied to the general fund.