DOCSLIB.ORG

The Liberty Loan Bond 2007 Marks the 90Th Anniversary of the First War Bond of the 20Th Century

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
The Liberty Loan Bond 2007 Marks the 90Th Anniversary of the First War Bond of the 20Th Century The Liberty Loan Bond 2007 Marks the 90th Anniversary of the First War Bond of the 20th Century By Lawrence D. Schuffman Registered bonds had semi-annual Popular actors and actresses of the interest payments mailed to the hold- day, such as Al Jolson, Mary Pickford, This year marks an important ers of record. At the time of issue, Douglas Fairbanks and Charlie Chaplin, anniversary in American financial these bonds were redeemable in gold. hosted bond rallies. Even the Girl and history. Ninety years ago the United McAdoo realized he had to fund the Boy Scouts were enlisted into the cause; States declared war on the Imperial war effort with publicly generated they went door-to-door selling bond German government and entered into funds while at the same time not harm- subscriptions. School children saved World War I. And on April 24, 1917, ing the banking system. Consequently, their nickels and dimes and added “The Great War” brought the first in the interest rates paid on Liberty and their change to their parents’ dollars a series of Liberty Loan and Victory Victory Bonds were lower than those to buy special stamps, which were Loan Bonds. paid by the banking institutions. then mounted into their War Savings Liberty Loan Bonds were con- McAdoo needed to appeal to the innate Certificate booklets to buy war bonds. ceived by then-Secretary of the Trea- patriotism of Americans to succeed, so The entire allotment of the First sury William Gibbs McAdoo to he launched an aggressive campaign to Liberty Bond issue of $2 billion finance and support the war effort; raise money from those who supported worth was sold in denominations of Victory Loan Bonds were issued after the war effort by selling Liberty Bonds. $50 to $10,000. The $50 and $100 the war ended. These bonds were usu- The government used famous denominations enabled lower income ally sold in maturities of 30 years artists and illustrators such as groups to participate, while the with call provisions for earlier Howard Chandler Christy, J.C. Leyen- higher denominations were pur- redemptions, although shorter matu- decker, Henry Raleigh, and J. Scott chased by high-income individuals, rities (five to 15 years) were also sold. Williams to motivate, inspire anger, banks, and by U.S. corporations to They could be redeemed for their face and create fear among Americans to pay dividends to shareholders. For value plus interest, and they had the realization of how horrible life example, U.S. Steel purchased $125 coupons which could be clipped for would be if America and its allies lost million in Liberty Bonds. redemption purposes. Some Regis- the war. The premise of these propa- Some complained that the interest tered bonds, similar to our Savings ganda posters ranged from patriotic rate of 3.5 percent was too low, but and “I” Bonds, were issued as well. and majestic to frightening. this was the same as other govern- Financial History ~ Spring 200718 www.financialhistory.org n a m f f u h c n S a . m D f f e u c h n c e S r . w D a L e c n e $100 Third Liberty Loan Bond, 1918. r w a L $50 First Liberty Loan Converted Bond, 1918. because they were redeemed due to the need for money during the Great Depression of the 1930s. There were a total of four Liberty Loan Bond issues and one Victory Loan Bond issue. Of the $24 billion in total subscriptions offered, $21 billion dollars of bonds were issued. The average purchase of five issues n was $445. Analyzing the denomina- a m f tions of the war bonds still outstand- f u h c ing as of June 30, 1920, only $3.9 S . D billion or about 20 percent, were e c n issued in the denominations of $50 e r w a and $100, representing average L Americans with modest means who $50 Liberty Loan Bond, 1917. supported the war effort. As a point of comparison, the financial cost to ment instruments, and the interest on Many of the first two issues of the U.S. of WWI was approximately these bonds was tax exempt except Liberty Bonds were redeemed or $32 billion, or approximately $500 for estate and inheritance taxes. converted to higher rate issues. billion in current dollars. FH This may not seem like a benefit Those bonds converted were under our current tax structure, but exchanged into the “First Liberty with the maximum tax rate then of 67 Bond Converted” or “Second Lib- percent, a bond paying a 3.5 percent erty Bond Converted” issues. The Lawrence D. Schuffman, MSFS, CFP, federally tax-free interest rate is first two Liberty Loan Bond issues CLU, specializes in Estate and equivalent to a risk free taxable 10.6 that were not redeemed or converted Retirement planning through Summit percent yield. are among the rarest of the bonds Financial Resources, Inc., and is the The wartime economy surged, issued. Many of these bonds have historical consultant to USALIB- interest rates rose and bond prices fell. not survived the last nine decades ERTYLOANBONDS.com. www.financialhistory.org19 Financial History ~ Spring 2007.
Load more

Recommended publications
  • Thrift, Sacrifice, and the World War II Bond Campaigns
    Saving for Democracy University Press Scholarship Online Oxford Scholarship Online Thrift and Thriving in America: Capitalism and Moral Order from the Puritans to the Present Joshua Yates and James Davison Hunter Print publication date: 2011 Print ISBN-13: 9780199769063 Published to Oxford Scholarship Online: May 2012 DOI: 10.1093/acprof:oso/9780199769063.001.0001 Saving for Democracy Thrift, Sacrifice, and the World War II Bond Campaigns Kiku Adatto DOI:10.1093/acprof:oso/9780199769063.003.0016 Abstract and Keywords This chapter recounts the war bond campaign of the Second World War, illustrating a notion of thrift fully embedded in a social attempt to serve the greater good. Saving money was equated directly with service to the nation and was pitched as a duty of sacrifice to support the war effort. One of the central characteristics of this campaign was that it enabled everyone down to newspaper boys to participate in a society-wide thrift movement. As such, the World War II war bond effort put thrift in the service of democracy, both in the sense that it directly supported the war being fought for democratic ideals and in the sense that it allowed the participation of all sectors in the American war effort. This national ethic of collective thrift for the greater good largely died in the prosperity that followed World War II, and it has not been restored even during subsequent wars in the latter part of the 20th century. Keywords: Second World War, war bonds, thrift, democracy, war effort Page 1 of 56 PRINTED FROM OXFORD SCHOLARSHIP ONLINE (www.oxfordscholarship.com).
    [Show full text]
  • An Analysis of American Propaganda in World War II and the Vietnam War Connor Foley
    Bridgewater State University Virtual Commons - Bridgewater State University Honors Program Theses and Projects Undergraduate Honors Program 5-12-2015 An Analysis of American Propaganda in World War II and the Vietnam War Connor Foley Follow this and additional works at: http://vc.bridgew.edu/honors_proj Part of the Cultural History Commons, and the United States History Commons Recommended Citation Foley, Connor. (2015). An Analysis of American Propaganda in World War II and the Vietnam War. In BSU Honors Program Theses and Projects. Item 90. Available at: http://vc.bridgew.edu/honors_proj/90 Copyright © 2015 Connor Foley This item is available as part of Virtual Commons, the open-access institutional repository of Bridgewater State University, Bridgewater, Massachusetts. An Analysis of American Propaganda in World War II and the Vietnam War Connor Foley Submitted in Partial Completion of the Requirements for Commonwealth Honors in History Bridgewater State University May 12, 2015 Dr. Paul Rubinson, Thesis Director Dr. Leonid Heretz, Committee Member Dr. Thomas Nester, Committee Member Foley 1 Introduction The history of the United States is riddled with military engagements and warfare. From the inception of this country to the present day, the world knows the United States as a militaristic power. The 20th century was a particularly tumultuous time in which the United States participated in many military conflicts including World War I, World War II, the Korean War, the Vietnam War, the Persian Gulf War, and several other smaller or unofficial engagements. The use of propaganda acts as a common thread that ties all these military actions together. Countries rely on propaganda during wartime for a variety of reasons.
    [Show full text]
  • World War II Information Collection, 1942-1951
    WORLD WAR II INFORMATION COLLECTION A Register, 1942-1951 Overview of Collection Repository: Clemson University Libraries Special Collections, Clemson, SC Creator: War Information Center (Clemson Agricultural College of South Carolina) Collection Number: Mss 253 Title: World War II Information Collection, 1942-1951 Abstract: The War Information Center was established at Clemson College in April 1942. It was one of roughly 140 colleges and universities across the United States designated by the Library Service Division of the U.S. Office of Education to receive a wide range of publications and information in order to keep communities informed about the war effort in an age before mass media. The collection contains materials that document the events of World War II and its immediate aftermath. Quantity: 24 cubic feet consisting of 93 folders in 6 letter-sized boxes / 84 oversized folders / 10 oversized boxes. Scope and Content Note The collection includes publications, brochures, newsletters, news-clippings, posters, maps, ration coupons, and Newsmaps detailing the events of World War II. The collection dates from 1942-1951. The bulk of the material dates from the U.S. war years of 1942-1945. The subject files date from 1942-1945 with one correspondence file dated 1951. The World War II posters date from 1942-1946. The war-related maps date from 1941-1945. The Newsmaps date from 1942-1948. The subject files are arranged in alphabetical order by folder title. The news-clippings are arranged in chronological order. The oversized World War II posters, maps, and Newsmaps have detailed separation lists provided. The subject files contain pamphlets, newsletters, publications, brochures, and articles that document the activities of countries that fell to German occupation.
    [Show full text]
  • Letters from the Homefront Your Task
    WWII: US Homefront Letters from the Homefront Even if you weren’t fighting in World War II, you were still expected to contribute to the war effort at home. Some of these contributions included rationing what you ate/bought, growing your own produce, purchasing war bonds to help the government pay for the war, or even joining the workforce. The nation mobilized itself entirely to fight a war on two fronts in a way that, today, we have never experienced. The culture, entertainment, and lives of Americans at home during WWII was completely centered around and dedicated to the success of the war. Winning the war abroad started with winning the war at home. Your Task: Imagine that you are writing from the US homefront to a loved one fighting in the war. They’ve been gone for some time, and you’ve heard in the news that things might be getting rough for the troops. You’ve decided a good way to lift their spirits would be to send them a letter updating them about what’s been happening at home! This packet contains several primary and secondary sources from the US homefront during WWII. Using at least four of the sources, compose a letter to your loved one giving them an update of how things are on the homefront. Letters should be at least one full page long single-spaced. If you do not finish in class, you will need to turn it in tomorrow in class. Source A: 2 Source B: Victory Gardens As part of the war effort, the government rationed foods like sugar, butter, milk, cheese, eggs, coffee, meat and canned goods.
    [Show full text]
  • All-Out for Victor Y!
    jOHN From the reviews of A LIVELY LOOK AT MAGAZINE ADS uplifting the morale of civilians and GIs, and ads BUSH THE SONGS THAT FOUGHT THE WAR: jONES DURING WORLD WAR II AND THEIR promoting home front efficiency, conservation, POPULAR MUSIC AND THE HOME FRONT, ROLES IN SUSTAINING MORALE AND and volunteerism. Jones also includes ads MAGAZINE ADVERTISING AND THE WORLD WAR II HOME FRONT WAR AND THE WORLD ADVERTISING MAGAZINE ALL-OUT FOR VICTORY! 1939–1945 PROMOTING HOME-FRONT SUPPORT praising women in war work and the armed OF THE WAR, WITH LOTS OF forces and ads aimed at recruiting more women. “The Songs That Fought the War serves as a way to comprehend the ILLUSTRATIONS Taken together, war ads in national magazines immensity and impact of World War II on the American people . did their part to create the most efficient home The result is a comprehensive thematic overview of the mindset Following the attack on Pearl Harbor and the front possible in order to support the war of the American people and how writers of popular music tried to entry of the United States into World War II, effort. document the collective understanding of their generation.” many commercial advertisers and their Madison — Indiana Magazine of History Avenue ad agencies instantly switched from selling products and services to selling the home “Scholars have too often ignored [popular songs], which reveal the front on ways to support the war. Ads by major moods, the yearnings, the memories of the ordinary people. John manufacturers showcased how their factories Bush Jones’s book is a valuable and even charming corrective to had turned to war production, demonstrating this scholarly neglect.”— Vingtième Siècle their participation in the war and helping people understand, for instance, that they couldn’t buy “Mr.
    [Show full text]
  • Plague in the Boomtowns: the Spanish Influenza in Bakersfield, and Kern County, 1918-1920
    “Plague in the Boomtowns: The Spanish Influenza in Bakersfield, and Kern County, 1918-1920” By J. Garth Milam A Thesis Submitted to the Department of History California State University of Bakersfield In Partial Fulfillment for the Degree of Masters in History Fall 2012 Copyright By J. Garth Milam 2012 "Plague in the Boomtowns: The Spanish Influenza in Bakersfield, and Kern County, 1918-1920" By J. Garth Milam This thesis has been accepted on behalf of the Department of History by their supervisory committee. Approved.--t--=P=tf'------++--tSD-JJ----'=---­ Douglas W. Dodd, Chair ~c;,MF __ _ Dr. Alicia Rodriquez Abstract Late in the summer of 1918, Bakersfield and Kern County was consumed by news of the war in Europe. Many hoped they were nearing the end of the deadliest war in history. But as one tragedy was ending another was just beginning. Today, ninety years after the Spanish Influenza epidemic swept the world, few are aware of the devastation it wrought. In fact, a sort of social amnesia enveloped much of the western world. Bakersfield was no exception. A present day resident of Kern County would not put the 1918 influenza on any list of local disasters. Though when the facts are examined, the Spanish Influenza mortality rate in Bakersfield exceeded every other major city in California. But even Bakersfield’s numbers were dwarfed by two regions of rural Kern County. The rapidly growing towns on the West Side and Oildale, just north of Bakersfield, were bustling, youthful, oil boomtowns. In little more than a decade these non-existent towns grew to contain a third of the county’s population.
    [Show full text]
  • Visual and Verbal Rhetoric in Howard Chandler Christy's War-Related Posters of Women During the World War I Era: a Feminist" (2007)
    University of Central Florida STARS Electronic Theses and Dissertations, 2004-2019 2007 Visual And Verbal Rhetoric In Howard Chandler Christy's War- related Posters Of Women During The World War I Era: A Feminist Mary Ellen Gomrad University of Central Florida Part of the Advertising and Promotion Management Commons, Peace and Conflict Studies Commons, and the United States History Commons Find similar works at: https://stars.library.ucf.edu/etd University of Central Florida Libraries http://library.ucf.edu This Masters Thesis (Open Access) is brought to you for free and open access by STARS. It has been accepted for inclusion in Electronic Theses and Dissertations, 2004-2019 by an authorized administrator of STARS. For more information, please contact [email protected]. STARS Citation Gomrad, Mary Ellen, "Visual And Verbal Rhetoric In Howard Chandler Christy's War-related Posters Of Women During The World War I Era: A Feminist" (2007). Electronic Theses and Dissertations, 2004-2019. 3177. https://stars.library.ucf.edu/etd/3177 VISUAL AND VERBAL RHETORIC IN HOWARD CHANDLER CHRISTY’S WAR-RELATED POSTERS OF WOMEN DURING THE WORLD WAR I ERA: A FEMINIST PERSPECTIVE by MARY ELLEN GOMRAD B.A University of Central Florida, 1995 M.A. University of Central Florida, 1999 A thesis proposal submitted in partial fulfillment of the requirements for the degree of Master of Arts in Interdisciplinary Studies in the Division of Graduate Studies at the University of Central Florida Orlando, Florida Summer Term 2007 ABSTRACT This thesis explores the development of a series of posters created by Howard Chandler Christy during the World War I era.
    [Show full text]
  • World War II Participants and Contemporaries: Papers
    World War II Participants and Contemporaries: Papers Container List ACCETTA, DOMINICK Residence: Fort Lee, New Jersey Service: 355th Inf Regt, Europe Volume: -1" Papers (1)(2) [record of Cannon Co., 355th Inf. Regt., 89th Inf. Div., Jan.-July 1945; Ohrdruf Concentration Camp; clippings; maps; booklet ”The Story of the 89th Infantry Division;” orders; song; ship’s newspaper, Jan. 1946;map with route of 89th Div.] AENCHBACHER, A.E. "Gene" Residence: Wichita, Kansas Service: Pilot, 97th Bomber Group, Europe; flew DDE from Gibraltar to North Africa, November 1942 Volume: -1" Papers [letters; clippings] ALFORD, MARTIN Residence: Abilene, Kansas Service: 5th Inf Div, Europe Volume: -1" Papers [copy of unit newspaper for 5th Inf. Div., May 8, 1945; program for memorial service; statistics on service and casualties in wars and conflicts] ALLMON, WILLIAM B. Residence: Jefferson City, Missouri Service: historian Volume: -1” 104 Inf Div (1) (2) [after action report for November 1944, describing activities of division in southwest Holland; this is a copy of the original report at the National Archives] 1 AMERICAN LEGION NATIONAL HEADQUARTERS Residence: Indianapolis, Indiana Service: Veteran's organization Volume: 13" After the War 1943-45 [a monthly bulletin published by the Institute on Postwar Reconstruction, Aug. 1943-April 1945] American Legion Publications (1)-(11) [civil defense; rights and benefits of veterans; home front; citizenship; universal draft; national defense and security program; Americanism; employment manual; Boy Scouts-youth program; G. I. Bill of Rights; peace and foreign relations; disaster; natural resources; law and order; UMT-universal military training; national defense; veterans’ employment; 1946 survey of veterans; reprint of two pages from The National Legionnaire, June 1940; instructors manual for military drill; United Nations; junior baseball program] Army-Navy YMCA Bulletin, 1942-44 Atlas of World Battle Fronts [1943-45] China at War, 1939 [four issues published by the China Information Publishing Co.] Clippings [submarine war; Alaska; U.S.
    [Show full text]
  • Liberty Loans of World War I
    NBER WORKING PAPER SERIES CAPITALIZING PATRIOTISM: THE LIBERTY LOANS OF WORLD WAR I Sung Won Kang Hugh Rockoff Working Paper 11919 http://www.nber.org/papers/w11919 NATIONAL BUREAU OF ECONOMIC RESEARCH 1050 Massachusetts Avenue Cambridge, MA 02138 January 2006 The views expressed herein are those of the author(s) and do not necessarily reflect the views of the National Bureau of Economic Research. ©2006 by Sung Won Kang and Hugh Rockoff. All rights reserved. Short sections of text, not to exceed two paragraphs, may be quoted without explicit permission provided that full credit, including © notice, is given to the source. Capitalizing Patriotism: The Liberty Loans of World War I Sung Won Kang and Hugh Rockoff NBER Working Paper No. 11919 January 2006 JEL No. N2 ABSTRACT In World War I the Secretary of the Treasury, William Gibbs McAdoo, hoped to create a broad market for government bonds, the famous Liberty Loans, by following an aggressive policy of "capitalizing patriotism." He called on everyone from Wall Street bankers to the Boy Scouts to volunteer for the campaigns to sell the bonds. He helped recruit the nation's best known artists to draw posters depicting the contribution to the war effort to be made by buying bonds, and he organized giant bond rallies featuring Hollywood stars such as Douglas Fairbanks, Mary Pickford, and Charlie Chaplin. These efforts, however, enjoyed little success. The yields on the Liberty bonds were kept low mainly by making the bonds tax exempt and by making sure that a large proportion of them was purchased directly or indirectly by the Federal Reserve.
    [Show full text]
  • World War I and the Art of War: WWI Posters from the Collection of Oscar Jacobson OKLAHOMA HISTORY CENTER EDUCATION DEPARTMENT
    World War I and The Art of War: WWI Posters from the Collection of Oscar Jacobson OKLAHOMA HISTORY CENTER EDUCATION DEPARTMENT The beginnings of World War I (WWI) in Europe began long before the United States joined the Great War. In June of 1914, the Archduke of the Austrian-Hungarian Empire Franz Ferdinand and his wife Sophie were assassi- nated. The Austrians suspected the Serbians, and declared war one month later. The chain reaction after these events are what would become the Great War, or the First World War. The United States did not formally enter the war until it declared war on Germany in 1917. The war had many effects on the United States and Oklahomans before entrance into war in 1917. There were supporters and opponents of the war, opponents of the Selective Service Act, and effects on the United States' economy. Crop prices fell and rose, rations began to conserve for the war, and free speech was ques- tioned. Many of these issues lasted throughout the war. Explore the Great War and its lasting effects on Oklahoma throughout this exhibit. Dan Smith (1865–1934), Put Fighting Blood in Your Business.1 American Red Cross Blood Drive (OHS Collections).1 World War 1 and the Art of War | 2017 │1 World War I and The Art of War Timeline 1914 June 1914 – Franz Ferdinand, archduke of Austria-Hungary, and his wife Sophie are assassinated July 1914 – Austria-Hungary declares war on Serbia August 1914 – Germany declares war on Russia, France, Belgium, and in- vades France Britain declares war on Germany and Austria-Hungary US declares
    [Show full text]
  • Turning Citizens Into Investors: Promoting Savings with Liberty Bonds During World War I
    Turning Citizens into Investors: Promoting Savings with Liberty Bonds During World War I Eric Hilt, Wendy M. Rahn RSF: The Russell Sage Foundation Journal of the Social Sciences, Volume 2, Number 6, October 2016, pp. 86-108 (Article) Published by Russell Sage Foundation For additional information about this article https://muse.jhu.edu/article/639845 [ Access provided at 1 Oct 2021 20:11 GMT with no institutional affiliation ] Turning Citizens into Turning Citizens into Investors Investors: Promoting Savings with Liberty Bonds During World War I e ric hilt and wendy m. rahn Increasing savings rates among households of modest incomes would strengthen their balance sheets and reduce wealth inequality. This paper analyzes one of the largest and most successful efforts to increase the savings of ordinary households in American history. The Liberty Bond drives of World War I persuaded tens of millions of Americans to buy government bonds, which were sold in denominations as low as $50, and could be purchased in installment plans. Using newly collected data on the sales of Liberty Bonds at the county level, we analyze the factors that influenced the degree to which the bond drives were successful. The results highlight the importance of the participation of civil society organizations and local banks in market- ing the bonds. We discuss the implications of these findings for the design of modern programs to increase savings. Keywords: saving, Liberty Bonds, savings bonds, wealth inequality, civil society, financial institutions Approximately 40 percent of the American pop- class households have declined dramatically. ulation resides in households whose net worth Reversing this trend would strengthen the bal- is zero or negative.
    [Show full text]
  • WHY WE HATE: CHANGES in AMERICAN PROPAGANDA POSTERS in WORLD WAR I and WORLD WAR II by JOSHUA ANDREW COULSON Bachelor of Arts I
    WHY WE HATE: CHANGES IN AMERICAN PROPAGANDA POSTERS IN WORLD WAR I AND WORLD WAR II By JOSHUA ANDREW COULSON Bachelor of Arts in History Oklahoma State University Stillwater, Oklahoma 2011 Submitted to the Faculty of the Graduate College of the Oklahoma State University in partial fulfillment of the requirements for the Degree of MASTER OF ARTS May, 2016 WHY WE HATE: CHANGES IN AMERICAN PROPAGANDA POSTERS IN WORLD WAR I AND WORLD WAR II Thesis Approved: William Bryans Thesis Adviser L.G. Moses James Houston ii Name: JOSHUA ANDREW COULSON Date of Degree: MAY, 2016 Title of Study: WHY WE HATE: CHANGES IN AMERICAN PROPAGANDA POSTERS IN WORLD WAR I AND WORLD WAR II Major Field: HISTORY Abstract: Between World War I and World War II American culture changed and that change is reflected in the propaganda posters used in each war. The posters in each war contained different artistic styles, but had similar themes. The examination of thirty propaganda posters reveals the many different aspects that are seen in both wars. While discussing the main poster themes, the differing artistic styles become apparent, and the reasons for that change are discussed. Romanticism influenced how people viewed the world during the First World War, but due to the realities of the war, that view changed. World War II posters contained images that are more indicative of Realism and some of the image displayed the harsh realities of the war. The change in artistic styles reflects the change in culture. People were outraged at how the government presented the war as being an honorable heroic endeavor, because the reality of the war was far from anything told to the public.
    [Show full text]