WAR BONDS. Bonds are a form of interest-incurring loans and are sold through commercial banks. In 1863 the U.S. Congress created a national banking system in order to raise money to finance the American Civil War, and since then bonds have been used to finance other wars as well.

Civilians also contributed to the war effort with the purchase of U.S. Government Defense Savings Bonds or “War Bonds.” These were purchased at a discounted price and redeemed for full value at maturity. 25 cent stamps at the Post Office and redeeming them for a Bond when the total amount was saved.

As the U.S. military recruited young men for service, civilians were called upon to do their part by buying War bonds, donating to charity, or, if they worked in industry, going that extra mile for the troops. Music and films of the era also celebrated The Great War and America’s role.

How were Japanese Americans treated during World War II? Americans of Japanese ancestry were moved to detention camps for the duration of the war.

America’s involvement in World War II had a significant impact on the economy and workforce of the United States. American factories were retooled to produce goods to support the war effort and almost overnight the unemployment rate dropped to around 10%.

How did the government raise money for the war effort? The government raised about one-third of the money through taxes, including a progressive income tax. The rest of the money was through public borrowing by selling “Liberty Loan” and “Victory Loan” bonds.

The United States sent more than a million troops to Europe, where they encountered a war unlike any other—one waged in trenches and in the air, and one marked by the rise of such military technologies as the tank, the field telephone, and poison gas.