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Liberty Bond

Candlefocus Editor
Liberty Bonds are a type of debt obligations issued by the federal government as a way of raising funds for American participation in World War I. The bonds were marketed as an investment opportunity to "ordinary" Americans to encourage patriotic sentiment during the war. The bonds were guaranteed by the U.S. government and offered attractive interest rates, helping to make the bonds appealing investments to many people.

The Liberty Bonds program was a success, raising the resources needed to support American involvement in the war effort. At the time, Liberty Bond drives ran nationally and even school-aged children got involved in the effort by selling Liberty Bonds to friends, family and neighbors.

In more recent times, the concept of Liberty Bonds has resurfaced, particularly in the wake of the terrorist attacks of September 11th, 2001. The city and state of New York together with the help of the United States federal government jointly issued Liberty Bonds to help with the rebuilding of lower Manhattan. The bonds are eligible for favorable tax treatments, such as a lower rate of taxation on interest income, helping to encourage investment in the redevelopment effort.

Liberty Bonds remain an important means of financing government efforts during times of national distress. Throughout the history of the United States, the Liberty Bonds program has been a crucial tool in helping to raise the funds necessary to support the needs of the nation, while also serving as a way to motivate citizens to contribute to the national cause.

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