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War bonds are a type of savings bond used by combatant nations to help fund a war effort.
[edit] First World War
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
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 EE 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.
[edit] Notes
- ^ Focus on: Women and War. Massachusetts Historical Society (2002). Retrieved on 2006-10-18.
- ^ Canadian Posters from the First World War - Victory Bonds
- ^ Introduction to Savings Bonds. United States Treasury Department (2002). Retrieved on 2007-09-10.
- ^ Gingerich, Melvin (1949). Service for Peace, A History of Mennonite Civilian Public Service. Akron, Pa.: Mennonite Central Committee, pp. 355嚙瘟58. OCLC 1247191.
- ^ The Patriot Savings Bond. United States Department of the Treasury, Bureau of the Public Debt (2006-08-04). Retrieved on 2007-09-10.
[edit] External links
- The University of North Carolina at Chapel Hill: World War I 1914-1918 bond posters and writings
- Brief History of World War Two Advertising Campaigns
2008 shift: SWFunds-Fed Bonds!
The Patriot Savings Bond
The Patriot Bond is identical in every way to the paper EE Bond except that any EE Bond purchased through financial institutions after December 10, 2001 has the words "Patriot Bond" printed on the top half of the bond between the Social Security Number and issue date. All EE Bond terms and conditions apply.
On paper savings bonds issued or replaced on or after August 1, 2006, the first five digits of your Social Security number or Employer Identification number will be masked and replaced with asterisks. This is being done to protect your privacy and to prevent the information from being used for identity theft.
Patriot Bonds offer Americans one more way to express their support for our nation's anti-terrorism efforts. Proceeds are deposited into a general fund that includes contributions to anti-terrorism efforts and spent according to law.
Where to Buy
Patriot Bonds can only be purchased through financial institutions. EE Bonds purchased through the Payroll Savings Plan will not bear the Patriot Bond inscription, because they are processed by many different organizations using a variety of inscription techniques. As a result, this precludes TreasuryDirect from being able to offer the special inscription for payroll customers.
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