What were war bonds?
war bond (wɔː bɒnd)
noun
noun
- (US history) debt securities issued by a government for the purpose of financing military operations during times of war
Why were war bonds needed?
World War II was a very costly endeavor. The United States spent over $300 billion on the war effort, which would be the equivalent of $4 trillion today. In order to help fund the war, the United States needed to have the financial support of its citizens. As a way to gain the needed funds, the United States Treasury offered Americans a series of war bonds they could purchase during the war. By purchasing a war bond, a person was not only investing in the country; he was also investing in his own financial future.
How did war bonds work?
During World War II, war bonds sold at 75 percent of their face value in denominations of $25 up to $10,000, with some limitations. For example, a person could purchase a $25 war bond for $18.75. The government would then use that money to help pay for the things the military needed (tanks, planes, ships, uniforms, weapons, medicine, food, etc.). Ten years after purchasing a war bond, a person could redeem that bond and receive $25. The war bonds were basically a loan to the government to help finance the war effort. Children even made contributions by purchasing 25¢ war stamps and pasting them into war bond booklets. Schools held their own war bond drives, and students would bring in nickels, dimes, and quarters to see if their school could raise more money than other schools.
How were war bonds promoted?
All over the country, posters & celebrities encouraged people to buy war bonds & help support the war effort. Famous celebrities (usually Hollywood film stars) made appearances at bond rallies nationwide to make the advertisements more effective. Some popular Hollywood stars, including Greer Garson, Bette Davis, and Rita Hayworth, completed seven tours in more than 300 cities and towns to promote war bonds. The "Stars Over America" bond blitz, which featured 337 stars, surpassed its limit and gained a net value of $838,540,000 worth of bonds.
Local clubs, organizations, movie theaters, and hotels also did their part in advertisement. In some theaters, "free movie days" were held, in which people bought bonds as their admission. The sports world had a similar promotion; special football games and baseball games were held with a war bond as the admission price.
Local clubs, organizations, movie theaters, and hotels also did their part in advertisement. In some theaters, "free movie days" were held, in which people bought bonds as their admission. The sports world had a similar promotion; special football games and baseball games were held with a war bond as the admission price.
Promotional videos encouraged people to buy war bonds.
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Celebrities helped promote the purchase of war bonds.
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