Thursday, 12 March 2020 19:44

Fourth Liberty Loan

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liberty loan

This morning I came across two photographs of a rally for the Fourth Liberty Loan in Norristown. Described in the Times-Herald as a “monster demonstration,” the parade was to encourage people to buy bonds to help pay for World War I.

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The Fourth Liberty Loan officially got underway on September 28, 1918. The parade took place on the 27th. The large parade included local companies, like Alan Wood Steel, scouts, the Red Cross, veterans, fire companies, marching bands, and even some cowboys from Betzwood Studios.

The man speaking in this picture is Judge William F. Solly, who spoke as a last minute replacement for Henry I. Fox, a local attorney who was ill.

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The United States entered World War I in April of 1917, but it was a year before American troops began traveling to Europe. Propaganda showed the dire possibilities of the war. This small poster is from our collection:

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Liberty Bonds could be purchased in multiple denominations. The government was authorized to issue them through the Second Liberty Load Act of 1917. That act is still the basis for the issue of treasury bonds today. Initially, Americans were slow to buy the bonds, perhaps because it was not a common thing in American life to loan the government money. By the time of the Fourth Liberty Loan, however sales were good. This small notebook from a women’s committee in Lower Gwynedd records the sales.

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The Fourth Liberty Loan would mature in 1938. They were to pay 4.25%, but the government defaulted on the Fourth Liberty Loan, making it the only federal bonds to default. When issued, the bond stated that it would be paid according to the “present value of gold” but in 1933, the US abandoned the gold standard. So the government refused to pay the full value of the bonds.

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