Liberty Bonds

Liberty Bonds were a war bond sold during World War I to finance the war.  Like all government bonds, Liberty Bonds allowed the government to borrow money from citizens at a low interest rate in order to finance military operations abroad. This sort of borrowing also controls inflation and, perhaps most importantly, gives citizens a way to participate in war operations even if they cannot enlist in the military. 

The campaign posters for Liberty Bonds capitalized on patriotism and the sense of patriotic duty for Americans to participate in this way.

Citizens who cashed their war bonds after 1934, however, had to deal with the problem of inflation and the now-illegal original term of the bond:  Originally, bond holders were supposed to redeem their bond for payment in gold, but that had become illegal a year before.