Jared Tanner

War Bonds

War Bonds are debt securities issued by a government to finance military operations and other expenditures in time of war. These bonds also remove money from circulation and thus also help to control inflation. President Franklin D. Roosevelt's advisers favored a system of tax increases and enforced savings program. This would permit increased spending while decreasing the risk of inflation.

            At first they were called Defense Bonds and issued by the U.S. Government, but that name was changed to War Bonds after the Japanese attack on Pearl Harbor on Dec 7, 1941. The bonds sold at 75 percent of their face value in denominations of $25 up to $10,000, with some limitations. War Bond propaganda was all over the United States during the war. Radio, Newspapers and magazines all preached the patriotism of buying bonds.