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War bonds are debt securities issued by a government for the purpose of financing military operations during times of war. War bonds generate capital for the government and make civilians feel involved in their national militaries. This system is also useful as a means of controlling inflation in such an overstimulated economy by removing money from circulation until hopefully after the war is concluded. Exhortations to buy war bonds are often accompanied with appeals to patriotism and conscience. Government issued war bonds tend to have a yield which is below market value and are often made available in a wide range of denominations to make them affordable to all citizens. American Civil WarWar bonds were issued by both the Union and Confederate governments during the American Civil War in order to raise funds for the war effort. World War IFrom Wikipedia under the
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