During the Great War, or the “War to End All Wars,” public support at home was crucial to the success of our troops overseas.
The Liberty Loan drive was devised to help cover the expenses of the United States war effort. There were five loan drives in total during the Great War, the last ending in 1919. The poster shown is by Joseph Pennell from the fourth loan drive, depicting what would happen to the home front if the civilian population did not buy war bonds. New York harbor is ablaze, German air fighters rule the sky, Lady Liberty’s head has been severed and lays in the harbor, with the German Eagle standing proudly at her feet, and a U-boat patroling the harbor. If this horrific scene didn’t make the public buy war bonds, what would?
The fourth Liberty Bond ultimately wound up defaulting, as the terms of the bond were payable in U.S. gold coin at maturity in 1938. Unfotunately for bond holders, Franklin Roosevelt eliminated the gold market in 1933. Bond holders wound up losing approximately 41% of the bonds principal.
The U.S. Treasury commissioned the Victory Liberty Loan Medallion shown above in conjunction with the 5th loan drive of 1919. The medallion was made from a German cannon captured at Chateau-Thierry in north west France. The medal was awarded by the Department of Treasury to victory Liberty Loan campaign volunteers.
Researched & Written by Richard M. Polityka