Victory Bonds
A major part of the Second World War on the Home Front was communication between the government and Canadians at home. The Canadian government was producing propaganda and other types of public messaging throughout the war to keep Canadians informed at home and abroad. This blog series will look at different types of propaganda and public messaging, mediums of communication, and home front organizations.
To help finance the war the Canadians were encouraged to offer loans to the government. These took the shape of Victory Bonds or Victory Loans. The 1940s was not the first time Canadians were asked to purchase Victory Bonds, as they had been introduced in the 1910s to help finance the First World War. Both companies and individuals were encouraged to purchase Victory Bonds, and during the Second World War revenue was roughly evenly split between corporate and individual contributions. Nine Victory Bonds campaigns, employing many strategies, were launched between June 1941 and November 1945; these campaigns generated approximately $12 billion.
One way the government promoted Victory Bonds was through direct appeals from the Prime Minister. On February 2, 1941, Prime Minister William Lyon Mackenzie King broadcast a call to Canadians, which was also printed and distributed, to invest directly in the Canadian war effort. This call came the day after a new Victory Bonds campaign was launched. King appealed to Canadians’ patriotism and strong connections to Britain and emphasized how this investment “will be a bond between him who lends his money to his country and those who fight for him in the front line of battle.”
IMAGE FROM LIBRARY AND ARCHIVES CANADA
Victory Bonds were also advertised as very safe loans. In 1940 the Minister of Finance produced a pamphlet describing Victory Bonds to the Canadian public. In seven and a half years a $4 bond would be worth $5. Larger investments would be worth even more: $8 would grow to $10; $20 would grow to $25; $40 would grow to $50; and an $80 investment would be worth $100 seven and a half years after purchase. Victory Bonds were advertised as a way to save money and see your savings increase in value over time.
Many propaganda and wartime posters, pamphlets, and advertisements in Canada during the Second World War were dedicated to promoting Victory Bonds. Even children were targeted! Rather than purchasing lump sum bonds, children bought War Savings Stamps. These stamps cost 25¢ each. Once a child had saved $4 worth of stamps, he or she could send their form to the federal government and receive a War Savings Certificate worth $5. These were also available to adults who were unable to afford the one-time $4 payment but still wanted to purchase a Victory Bond. Savings in installments were promoted for families that could only afford to put aside a small sum each week or month.
Though the Canadian government no longer participates in Victory Bonds programs, the concept is still a part of Canadian financial programs. After the war, the Victory Bonds program gave way to the Canada Savings Bonds and Payroll Savings Programs. These programs were introduced in 1946 in Canada’s Postwar Financing Program to help the government and the Canadian public get back on track following the war. No new Canada Savings Bonds have been issued since 2017.