What are war bonds?

War bonds (sometimes referred to as victory bonds, particularly in propaganda) are debt securities issued by a government to finance military operations and other expenditure in times of war without raising taxes to an unpopular level.

Why were war bonds used in WW1?

During World War I (WW1), war bonds were made available to retail investors, as well as wholesale investors, with the purpose of raising enough capital to finance the governments’ increased military expenditures. There was a strong propaganda campaign designed to appeal to the nation’s sense of patriotism.

Why did the British issue war bonds?

The bonds provided funds for the military, contributing to the nation's victory in the war. Furthermore, they helped control inflation and promote savings, leading to post-war economic prosperity. During both World Wars, the British government issued war bonds to help finance their military efforts.