Get new blog posts sent directly to your email inbox!

Today in World War II History

Read Today's Article

World War II War Bonds

War Bonds in World War II - on Sarah Sundin's blog

Eighty years ago this week, the United States held its first War Loan Drive. The Second World War cost the United States $300 billion dollars, with the federal budget rising from $9 billion in 1939 to $98 billion in 1945. How was the nation to pay for that?

Taxes were increased with an additional 5 percent Victory Tax. To assure payment, on June 10, 1943 the government approved the first automatic deduction of taxes from paychecks. But more was needed, and the government turned to bonds, which had been effective in World War I.

War bonds were sold at 75 percent of face value (a $25 bond sold for $18.75) and matured over ten years. While the rate of return was below market value, bonds were a stable investment with the bonus of aiding the war effort. Channeling cash into bond purchases helped prevent inflation in the robust wartime economy as well.

How Bonds Were Purchased

US Defense Bond poster, 1942

US Defense Bond poster, 1942

Defense Bonds first went on the market on May 1, 1941, and they were renamed War Bonds after the US entered the war in December 1941. Bonds were available in denominations of $25 through $1000, designed to be affordable for everyone. For 10 cents, people could also purchase stamps, which were placed in special albums. When full, the albums were redeemed for a bond. War stamps were especially popular with children.

US War Bond Poster, 1942

US War Bond Poster, 1942

Employers set up automatic payroll deduction systems, so employees could set aside a certain amount for War Bonds with each paycheck.

Advertising War Bonds

US War Bond poster, 1944

US War Bond poster, 1944

A robust advertising campaign, rallies and other promotions, and a series of War Loan Drives brought in even more needed money.

As part of the war effort, many newspapers, magazines, and radio stations donated advertising space and time. Posters sprang up in store fronts. Even comic books got in the act as superheroes promoted bond sales. Popular songs also encouraged sales, such as Bing Crosby’s recording of “The Road to Victory” for the Sixth War Loan Drive.

Promotions for War Bonds

US War Bond poster, WWII

US War Bond poster, WWII

Bond rallies were extremely popular, featuring Hollywood stars and popular musicians. Celebrities conducted auctions—a kiss from Hedy Lamarr, Betty Grable’s stockings, Jack Benny’s violin, and the horseshoes of Triple Crown winner Man O’ War. Movie theaters and baseball stadiums sometimes offered free admission with the purchase of a War Bond. At the UCLA-USC football game on 12 December 1942, a student-led war bond drive raised $2 million.

War Loan Drives

Posters from the US Second & Third War Loan Drives (1943), Fourth & Fifth War Loan Drives (1944), and Victory Loan Drive (1945)

Posters from the US Second & Third War Loan Drives (1943), Fourth & Fifth War Loan Drives (1944), and Victory Loan Drive (1945)

Eight War Loan Drives were conducted in the US. Each was meant to raise an additional $9-$15 billion in sales. Towns received quotas, with the aim of promoting competition between towns. Volunteers went door-to-door, pleading for sales and rewarding purchasers with stickers to display on their window or door. The drives were conducted on the following dates:

  • First War Loan Drive: Nov. 30 to Dec. 23, 1942
  • Second War Loan Drive: Apr. 12 to May 1, 1943
  • Third War Loan Drive: Sep. 9 to Oct. 1, 1943
  • Fourth War Loan Drive: Jan. 18 to Feb. 15, 1944
  • Fifth War Loan Drive: June 12 to July 8, 1944
  • Sixth War Loan Drive: Nov. 20 to Dec. 16, 1944
  • Seventh War Loan Drive: May 14 to June 30, 1945
  • Victory Loan Drive: Oct. 29 to Dec. 8, 1945
US Victory Loan Drive poster by Norman Rockwell, 1945

US Victory Loan Drive poster by Norman Rockwell, 1945

By the end of the war, 85 million Americans (out of a population of 131 million) had purchased $185.7 billion dollars of bonds—over $2000 per person, at a time when the average income was $2000 per year.

The patriotism and personal sacrifice of the average citizen played a significant part in the Allied war effort.

US War Bond Poster, 1945

US War Bond Poster, 1945

4 responses to “World War II War Bonds”

  1. Mr. Wilson says:

    I found 4 war bonds from 1943 doing demo…4 copys and 4 original. 1 short and 3 are long paper. Are these worth anything

    • Sarah Sundin says:

      Thanks for stopping by! I’m afraid I know nothing about their value as collectibles, but I do know they can be taken to a bank and cashed in – for at least the face value.

  2. jarheads_kid says:

    Thanks for this very interesting article. Do you happen to know if there’s an itemization of how much was collected in each drive? I know a lot was collected in the 7th drive after the Rosenthal photo was publixhed and was just curious. Thanks again

    • Sarah Sundin says:

      I do have some figures for some of the drives. I’ll add them in the comments later today. I do know they all came in over their quotas, which is astounding!

Embers in the London Sky cover
“Another masterful installment in Sundin’s roster of WWII novels.”
—Booklist starred review for Embers in the London Sky

A Free Gift for You

Make It Do - The US Home Front in World War II

When you subscribe to my monthly enewsletter, you’ll also receive “Make It Do – The US Home Front in World War II,” a collection of my popular blog posts. As a subscriber, you’ll also be the first to learn about my upcoming novels.