Research paper over positives and negatives of war bonds during world

Over positives and negatives of war bonds during world war 2 - Research Paper Example However as with regular bonds the purchaser always has the option of redeeming the bond for its face value at a later date. Typically war bonds tend to have a yield which is below market value and are usually sold in different denominations to suit different purchasing power of prospective buyers. All things considered these government issued bonds are considered as steady and reliable investments (Altius directory). War bonds were issued by many countries, including United States and Germany during World War I and II. The role of War Bonds During the Second World War, a number of companies encouraged citizens to buy war bonds. In addition to funding the government, war bonds also reduced the amount of currency on the  open market, with the hope of keeping inflation rates down. Many Americans think of the Series E Bond when they hear the term â€Å"war bonds.† This bond was initially marketed as a â€Å"defense bond† in 1935, and with the outbreak of war, the Treasury switched to calling it a â€Å"war bond.† Series E Bonds were available from the Treasury until 1980. The funds from the sale of war bonds are used to finance the military. American Patriot Bonds may seem like war bonds, but the sale proceeds actually go into a general fund, rather than supporting the military specifically. For people who dislike the idea of supporting military action but want the safety and stability of government securities, other Treasury securities are available for sale, including treasury bills, notes, and general bonds. War bonds during World War 2 United States Initial offerings The last time it was seen that the United States issued war bonds was during the World War 2. This was in the event when full employment clashed with rationing, and the only way money could have been removed from circulation in order to reduce inflation was through the introduction of war bonds. These bonds were issued by the U.S Government, and they were initially called Def ense Bonds. However post the attack on Pearl Harbor, on December 7, 1941; they were renamed to War Bonds. War bonds were primarily debt securities issued for the purpose of financing military operations in the war period, these bonds yielded a 2.9 percent return after a 10 year maturity. If you analyze the median income of a resident of the United States during the World War 2 phase, annual earnings equaled to a total of $2000. It was during this period that regardless of the hardships the American citizens were facing 134 million Americans were asked to purchase war bonds to aid in financing the war. Another option was to purchase stamps, costing 10 cents each, these could be saved towards the future acquisition of a bond. The first series labeled as the ‘E’ U.S. Savings bond was purchased by President Franklin. D. Roosevelt and it was sold to him by Henry Morgenthau, the Treasury Secretary. These bonds served as a loan to the government so that the war could be financ ed. The E Series bonds were sold at 75% of their face value in denominations of $ 25 up to $ 10,000, with some limitations. Promoting the War Bonds The voluntary promotion of the War Bonds was the key responsibly of the War Advertising Council whereas the sales were supervised by the War Finance Committee. Together the work of these two agencies resulted in the