Number: RS21046
Title: War Bonds in the Second World War: A Model for a New War Bond?
Authors: James M. Bickley, Government and Finance Division 
Abstract: The recent terrorist attacks have resulted in congressional interest in the concept of the sale of a Treasury security to finance recovery and relief operations and anti-terrorist actions. During the first session of the 107th Congress, both houses of Congress considered and passed differing measures authorizing the sale of war bonds to help give the public a greater sense of participation in the war effort and to provide revenues that could be earmarked for disaster relief and anti-terrorist actions. On December 11, 2001, the Department of the Treasury designated Series EE savings bonds as "Patriot Bonds," whose purpose is "to fight the war on global terrorism." This designation will likely forestall further congressional legislative action. This report describes war bonds during the Second World War, examines their relevance as a model for a new war bond, and presents policy options.
Pages: 6
Date: Updated January 8, 2002