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A liberty bond is a special type of war bond that was used during world war 1. A bond is a legal agreement in which a person agrees to pay a sum of money if he or she fails to do a certain thing. A bond is also a tax exempt, meaning that you don't have to pay tax on the money that you have saved in a bond. A liberty Bond is a loan of money sent to the soilders in order to buy supplies or food. The first emergency liberty loan was on april 17, 1917.
When people invested their money into a liberty bond they did not have to pay tax on it but the bank will use that money to support the soldiers with what ever they needed(food,clothes,tissue,etc).With this being done the bank will put interest on the money you put in the bank. Interest is when the bank adds money to the money you left in the bank for some time.
To pull you in to get you to buy a liberty bond william gibbs mcadoo will try to get you buy putting your favorite person to advertise it.Just so you could buy the liberty bond.
