War bond
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War bonds are a type of savings bond used by combatant nations to help fund a war effort. This article discusses war bonds in general. Series E Bonds, which most Americans associate with the term "war bond," is discussed in greater depth in a separate article.
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[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]
[edit] Second World War
In 1941, in an effort to raise money for the projected entry of the U.S. into the war that was raging around the world, the U.S. Treasury began marketing the new Series E Bonds U.S. Savings Bonds as "defense bonds". The first one was sold to President Franklin D. Roosevelt on May 1, 1941, by Secretary of the Treasury Henry Morgenthau.[2] 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.[3] In a similar way, an alternative to war savings stamps was offered to school children.
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 Dec. 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". [4] 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] Other Nations
Canada also uses a variant of the investment form as Canada Savings Bonds which are marketed for a limited time annually.
[edit] Notes
- ^ [1] Accessed 18 October 2006.
- ^ http://www.treas.gov/offices/treasurer/savings-bonds.html
- ^ Gingerich, Melvin (1949), Service for Peace, A History of Mennonite Civilian Public Service, Mennonite Central Committee, pp. 355-358.
- ^ http://www.treasurydirect.gov/indiv/research/indepth/ebonds/res_e_bonds_eepatriotbond.htm
[edit] External links
- About.com: Military History: Home Front 1941-1945: "Buy War Bonds"
- The University of North Carolina at Chapel Hill: World War I 1914-1918 bond posters and writings
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