Final answer:
War bonds, known as Liberty Bonds during WWI, were marketed as a patriotic duty, allowing Americans to financially support the war effort and promising repayment with interest. Chase and Cooke's Civil War program and the war bonds of WWII continued this legacy. War bonds were a crucial tool for financing military expenditures without incurring excessive national debt.
Step-by-step explanation:
The government called war bonds Liberty Bonds during World War I to evoke a sense of patriotism among American citizens. By purchasing these bonds, Americans were contributing financially to the war effort and were promised guaranteed repayment with interest. Celebrities and athletes were recruited to headline bond drives, echoing the work of George Creel and others. The revenue from these bonds not only supported the war but also helped families by ensuring they could purchase goods post-war and facilitated the resumption of civilian production. The repayment of these bonds was critical to maintaining postwar economic stability and avoiding the return to high federal income tax rates.
Different wars saw similar strategies. In the Civil War, Chase and Cooke developed a program making the purchase of war bonds a patriotic act, which raised almost $1.2 billion. Again, during World War II, millions of Americans purchased over $185 billion in war bonds, and even children contributed by buying Victory Stamps. The bonds sold were a successful means for the government to finance various wars without exacerbating national debt.