USA HISTORY

Detailed explanation-1: -War bonds were initially known as Defense Bonds and were first issued as Liberty Bonds in 1917 to finance the United States government’s participation in World War I. Through the sale of these bonds, the government raised $21.5 billion dollars for its war efforts.

Detailed explanation-2: -President Roosevelt settled on two major means of raising money: increased taxes and borrowing, through the sale of massive amounts of war bonds. Besides paying for the enormous costs of war, these measures would remove excess wages and other spendable money in a time of shortages, helping to keep a lid on inflation.

Detailed explanation-3: -Understanding Liberty Bonds With this program, Americans basically loaned the government money to help pay for the costs of wartime military operations. After a certain number of years, those who invested in these bonds would receive their money back, plus interest.

Detailed explanation-4: -During WW1, the United States government issued Liberty Bonds, which were used to aid in the expensive costs of war. The issuance of the Liberty Bonds was coupled with a strong investment in propaganda to appeal to American’s patriotism.

Detailed explanation-5: -A liberty bond (or liberty loan) was a war bond that was sold in the United States to support the Allied cause in World War I. Subscribing to the bonds became a symbol of patriotic duty in the United States and introduced the idea of financial securities to many citizens for the first time.