Economy: War Bonds & Savings Stamps
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Everything You Need to Know About War Bonds and Savings Stamps
War Bonds or Liberty Bonds are something that everyone has sure to have heard of by now. They are a symbol of pride and patriotism and represent what you can do for your country. They can be purchased for a certain price, the average is between $50 and $100 dollars, and then can be redeemed later at a certain date, the maturation date, which is printed on the front of the bond.24
The first issue of liberty bonds was back in April on the 24th. This was the Emergency Loan Act which authorized the issuing of $5 billion in bonds with an interest rate of 3.5%. Then later this year, on October 1st, the Second Liberty Loan offered $3 billion in bonds at 4% interest.25
Savings Stamps
Savings Stamps are "little baby bonds" as some people like to call them. They steadily increase in value from the date of purchase to the date of maturation. There are two kinds of savings stamps, the 25 cent stamp and the $5 stamp.
A "Thrift Card" is something that you will wish to have when you purchase stamps. The card is given to you when you purchase a 25 cent stamp. It contains spaces for 16 stamps and when all of the spaces have been filled, the card can be exchanged for a $5 stamp with an additional 12 cents in cash prior to February 1, 1918 with one additional cent each month thereafter.27
If you wish, you can purchase the $5 stamp outright for a cost of $4.21. They have been on sale since December 3 and will be available for purchase until January 31 of next year. These $5 stamps automatically increase one cent a month until January 1, 1923, when the government will pay $5 for them.29
If you purchase the $5 you must attach it to the War-Savings Certificate. This certificate should have the purchasers name on it and it can only be redeemed by the person who's name is printed on it. This certificate contains 20 spaces and if you are able to fill all of the spaces are filled by January 31, 1918, it will cost you $82.40. However, on January 1, 1923, the government will pay the owner of the certificate $100, ultimately earning the certificate holder $17.60. This is all based on the interest rate of 4% compounded quarterly beginning January 2, 1918.30
If at anytime, it is necessary to realize cash before the maturity date the holder can cash it in upon giving a 10 day notice. The holder can receive for each stamp the money they paid plus an additional 1 cent per month after the date of purchase.31
As is evident, the plan is simple and certain. The holder of the certificate can not loose money and it certain to gain no matter what. This is the safest security in the world and is also the most convenient.32
Why You Should Buy Bonds or Savings Stamps
Our country is at war! Our country needs every penny that every person can spare! Every man, woman, and child is encouraged to lend any amount they can and help the government, feed, clothe, arm and equip the soldiers and sailors of America win this war. The best way to win this is to win as a united people. We have to stand together and fight together, that is the only way to make the victory come sooner.33
War Bonds and Savings Stamps are available at post offices, banks, trust companies, or other authorized agencies. Buy War Bonds and Strike a Blow for our Country!34