1918 dated Third Liberty Loan Bond - 3rd Liberty Loan Bond - United States Federal Loan Bond
Inv# TB1017 Bond
U.S. Treasury Bond issued for financing the war effort in World War I. Teehee & McAdoo printed signatures. Bureau of Engraving and Printing. Bond measures 8 1/4" x 7 1/8" with 17 coupons attached. Gorgeous Condition.
The Third Liberty Loan Act, enacted on April 5, 1918, was a liberty bond issued during World War I to finance the United States’ war expenditures. These bonds constituted loans from citizens to the U.S. government, repayable with interest in the future.
The Third Liberty Loan Act was an amendment to the preceding two Liberty Loan Acts. The inaugural Liberty Loan Act, enacted on April 24, 1917, issued $5 billion in bonds at a 3.5% interest rate but proved insufficient to support the United States’ presence in the conflict. The second Liberty Loan Act, enacted on October 1, 1917, only a few months after the first, permitted an additional $3 billion in bonds at a 4% interest rate. However, this loan remained inadequate, necessitating the creation of a fourth Liberty Loan Act on September 28, 1918. This act authorized an even greater amount of $6 billion in bonds at a 4.25% interest rate.
These bonds were primarily sold by the Boy Scouts and Girl Scouts. The most renowned bond poster depicted a Boy Scout presenting a sword to Lady Liberty, symbolizing readiness for battle. Between 1917 and 1918, the scouts successfully sold an astonishing 2,328,308 liberty bonds. This sum equated to $354,859,262, which the government owed to the citizens of the United States. The remaining $43,043,698 was allocated to the Allied forces.
The funds raised through these loans covered a range of expenses, including weaponry, medical and surgical supplies, and vehicles. Despite their initial intention to finance the war, liberty loans have continued to be utilized for substantial and costly endeavors. The most recent notable instance occurred in 2001, when they were employed to offset the expenses incurred in reconstructing the regions affected by the terrorist attacks.
A bond is a document of title for a loan. Bonds are issued, not only by businesses, but also by national, state or city governments, or other public bodies, or sometimes by individuals. Bonds are a loan to the company or other body. They are normally repayable within a stated period of time. Bonds earn interest at a fixed rate, which must usually be paid by the undertaking regardless of its financial results. A bondholder is a creditor of the undertaking.
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