War bond

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War bonds were a form of savings bond used by many combatant nations to help fund World War I and World War II. They were also a measure to manage inflation by removing money from the economy heated up by the war efforts.

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]

In the United States, during World War II, a promotional cardboard container with slots for quarters was used to encourage savings. There were 75 slots for $18.75 in quarters. When it was full, one turned it in at the post office for a $25 war bond which matured in 10 years. These were at first called defense bonds, until the name was changed to war bonds after the attack on Pearl Harbor.

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 war bonds. 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.^[2] In a similar way, an alternative to war savings stamps was offered to school children.

War bonds in the United States evolved into U.S. Savings Bonds. Canada also uses a variant of the investment form as Canada Savings Bonds which are marketed for a limited time annually.

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[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