[FLAGS - WORLD WAR I]. 48-star "Buy War Bonds" American parade flag. 1918.

16 3/4 x 28 3/4 in. cotton flag with 48 printed stars configured in 8/8/8/8/8/8 pattern (occasional soiling, few small pinholes along hoist end). Overprint: "Buy War Bonds 3rd Liberty Loan." Printed in selvage: "U.S. Trsy Dept." Professionally mounted using stitch on cloth-covered board.

When the United States entered World War I, large sums of money were needed to fund the allied war effort in Europe. To raise the necessary financial support, an aggressive public campaign was created by Secretary of the Treasury William McAdoo to sell war bonds, a special type of bond that could be redeemed for its original value plus interest. Famous artists designed posters and movie stars and other celebrities hosted rallies and made personal appearances to promote the concept that purchasing a liberty bond was the patriotic thing to do. Boy Scout and Girl Scout troops sold bonds using the slogan “Every Scout to Save a Soldier.”

A series of four Liberty Loan notes were approved by Congress between April 1917 and September 1918, raising more than 18 billion dollars. The Third Liberty Loan was offered for sale on 6 April 1918, the first anniversary of the declaration of war by the United States. Issue terms included a ten year maturity and 4.5% annual interest rate; the amount subscribed and issued was 4.2 billion dollars. Bonds were exempt from federal income tax and state and local taxes, but not from estate and inheritance taxes.

This flag has been exhibited at several museums.

J. Richard Pierce Collection of American Parade Flags