1918 dated United States Government Bond of the 3rd Liberty Loan - Unissued U.S. Treasury Bond - Third Liberty Loan

Unissued United States Government Bond of the Third Liberty Loan. The Third Liberty Loan Act represented a significant financial initiative during World War I, facilitating the United States' war expenditures. Essentially, these bonds functioned as loans from the American populace to the federal government, with the promise of future repayment along with interest. Prior to this act, two other loan initiatives had been established: the Liberty Loan Act and the Second Liberty Loan Act, both aimed at providing additional financial resources to support the war effort. The Third Liberty Loan Act was officially enacted on April 5, 1918, permitting the government to issue war bonds totaling $3 billion, with an interest rate of 4.5% for a duration of up to ten years, and an individual investment cap of $45,000.

Notably, the bonds issued under this act could not be redeemed until September 15, 1928. This act served as an extension of the earlier Liberty Loan initiatives. The first Liberty Loan was enacted on April 24, 1917, allowing for the issuance of $5 billion in bonds at a 3.5% interest rate. However, this amount proved inadequate to sustain the United States' military involvement. Subsequently, the second act was implemented on October 1, 1917, just months after the first, enabling an additional $3 billion in bonds at a 4% interest rate. Despite these efforts, the funding remained insufficient, leading to the establishment of a fourth act on September 28, 1918, which authorized an even greater sum of $6 billion at a 4.25% interest rate.