What are War Bonds? (with photos)

During World War I, war bonds were made available as affordable stamps.

War bonds are government-issued savings bonds that are used to finance a war or military action. In the United States, the last official war bond was the Series E bond issued during World War II. These bonds generate capital for the federal government and make civilians feel involved in the national armed forces; exhortations to buy war bonds are often accompanied by appeals to patriotism and conscience.

The United States appealed to patriotism to sell the war bonds used to finance its efforts in World War II.

Bonds are a special type of security. They are issued by an agency that wants to generate capital, and the people who buy them are essentially lending money to the issuing agency. In exchange for the loan, the bond earns a set interest rate and the buyer can redeem the bond at face value at a later date. Government-issued bonds tend to have a yield below market value, but are considered stable and very safe investments.

“Liberty Bonds” helped finance the US military in World War I.

In World War I, Americans could buy “Liberty Bonds”, while other nations issued a variety of bonds and savings stamps to finance their war efforts. The language used in the promotion of war bonds was often quite flowery, luring the buyer into the transaction with an appeal to his patriotism. These bonds were available in a wide range of denominations to make them accessible to everyone, ranging from small stamps that students could purchase to bonds in very large denominations for wealthier individuals.

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The US government can sell savings bonds to help finance a war.

During World War II, several companies encouraged citizens to buy war bonds. In addition to funding the government, these bonds also reduced the amount of money on the open market, hoping to keep inflation rates low. Many Americans think of the Series E title when they hear the term. This bond was initially marketed as a “defense bond” in 1935, and with the outbreak of war, the Treasury began calling it a “war bond”. Series E bonds were available from the Treasury until 1980.

The funds from the sale of these bonds were used to finance the military. American Patriot Bonds may look similar, but the proceeds from the sale actually go to a general fund rather than supporting the military specifically. For people who don’t like the idea of ​​supporting military action but want the security and stability of government bonds, other treasuries are available for sale, including treasury bills, notes and general bonds.

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