By Ed Stozek
For the Herald
During WWI and WWII the federal government sold Victory Bonds via Victory Loan campaigns to Canadian citizens, private corporations and various organizations in order to raise funds to help pay for the war.
The bonds were a loan to the government and could be redeemed with interest after five, 10 or 20 years. The Victory Bonds were released during five different campaigns between 1915 and 1919 and raised over $2 billion.
Each Victory Bond release was accompanied with a supporting poster campaign appealing to patriotic feelings to help sell the idea of helping to finance military campaigns. No bond issue in Canadian history had raised more than $5 million, however, Ottawa’s first drive exceeded all expectations.
The concept of Victory Bonds was actively reintroduced to the Canadian public two years after Canada became involved in WWII. In a radio broadcast a day after the first Victory Bond campaign was launched, Prime Minister Mackenzie King appealed to all Canadians’ patriotism and strong connections to Britain.
Canada’s minister of Finance noted, “In money alone, the war costs Canada $4 million a day, some three and one-quarter times the daily cost of the last year of the last war.” (May 29, 1941, The Dauphin Herald and Press)
An advertisement in the June 19, 1941 edition of The Dauphin Herald and Press revealed the eminent danger of a direct attack on Canadian soil. “To every mother, wife and sweetheart, beware of the vanishing Atlantic. Help keep the Front Line away from your doorstep. You can no longer depend upon the Atlantic Ocean for protection.”
Examples were given as to the possibility of a bomber flying from Greenland to the Maritimes, Quebec, Winnipeg or Vancouver. Another scenario included a bomb laden plane flying in less than 10 hours from German occupied France carrying destruction to Toronto, Ottawa and Montreal. It was also noted that the soldiers fighting in the war needed to be supplied with the tools to fight the enemy from occupying Canadian soil. Victory Bond sales were ear marked to buy more ships, planes and tanks. “Lend your money by buying Victory Bonds now! The money will come back to you with interest Lend to preserve the things money can’t buy.”
Victory Bonds were advertised as very safe loans. For example in seven and a half years a $4 bond would be worth $5. Larger investments would be worth even more. Citizens were encouraged to give their order to canvassers or by going to any branch of any bank, trust company or sending it to the local Victory Loan headquarters.
Bonds could be bought in denominations of $50, $100, $500, $1000 or higher. One could also buy in installments with 10 per cent down and the rest of the pledge in easy terms over a six-month period.
Children were also encouraged to participate. Rather than purchasing bonds, children bought War Savings Stamps each costing 25 cents. Once $4 worth of stamps were saved children could send their form to the federal government and receive a War Savings Certificate. Stamps were also made available to adults who could not afford the one-time $4 payment but still wanted to purchase a Victory Bond.
When the third Victory Loan campaign was made available in mid-October 1942, Canadian farm families were also able to invest in Victory Bonds either with cash payments or through the new Victory Tickets plan.
The Victory Ticket itself indicated a statement by a farmer that by a certain date he would deliver to a buyer that he had designated and had instructed to pay the proceeds from the sale of products such as hogs, steers or produce directly to the National War Finance committee for investment in Victory Loan bonds or War Savings certificates. Victory Loan salesmen were scheduled to come calling at farmers’ homes within the next two weeks.
The Canadian government no longer participates in the Victory Bonds program.
In 1946 the Victory Bonds program gave way to the Canada Savings Bonds with the goal of encouraging Canadians to continue their savings habits from the WWII era.
Due to various economic factors no new Canada Savings Bonds have been issued since 2017.
