Socialism is a range of economic and social systems characterised by social ownership of the means of production and workers' self-management, as well as the political theories and movements associated with them. Social ownership can be citizen ownership of equity. There are many varieties of socialism and there is no single definition encapsulating all of them, with social ownership being the common element shared by its various forms. Socialist systems are divided into market forms. Non-market socialism involves the substitution of factor markets and money with engineering and technical criteria based on calculation performed in-kind, thereby producing an economic mechanism that functions according to different economic laws from those of capitalism. Non-market socialism aims to circumvent the inefficiencies and crises traditionally associated with capital accumulation and the profit system. By contrast, market socialism retains the use of monetary prices, factor markets and in some cases the profit motive, with respect to the operation of owned enterprises and the allocation of capital goods between them.
Profits generated by these firms would be controlled directly by the workforce of each firm, or accrue to society at large in the form of a social dividend. The socialist calculation debate concerns the feasibility and methods of resource allocation for a socialist system. Socialist politics has been both nationalist in orientation. Originating within the socialist movement, social democracy has embraced a mixed economy with a market that includes substantial state intervention in the form of income redistribution, a welfare state. Economic democracy proposes a sort of market socialism where there is more decentralized control of companies, currencies and natural resources; the socialist political movement includes a set of political philosophies that originated in the revolutionary movements of the mid-to-late 18th century and out of concern for the social problems that were associated with capitalism. By the late 19th century, after the work of Karl Marx and his collaborator Friedrich Engels, socialism had come to signify opposition to capitalism and advocacy for a post-capitalist system based on some form of social ownership of the means of production.
By the 1920s, social democracy and communism had become the two dominant political tendencies within the international socialist movement. By this time, socialism emerged as "the most influential secular movement of the twentieth century, worldwide, it is a political ideology, a wide and divided political movement" and while the emergence of the Soviet Union as the world's first nominally socialist state led to socialism's widespread association with the Soviet economic model, some economists and intellectuals argued that in practice the model functioned as a form of state capitalism or a non-planned administrative or command economy. Socialist parties and ideas remain a political force with varying degrees of power and influence on all continents, heading national governments in many countries around the world. Today, some socialists have adopted the causes of other social movements, such as environmentalism and progressivism. In 21st century America, the term socialism, without clear definition, has become a pejorative used by conservatives to taint liberal and progressive policies and public figures.
For Andrew Vincent, "he word ‘socialism’ finds its root in the Latin sociare, which means to combine or to share. The related, more technical term in Roman and medieval law was societas; this latter word could mean companionship and fellowship as well as the more legalistic idea of a consensual contract between freemen". The term "socialism" was created by Henri de Saint-Simon, one of the founders of what would be labelled "utopian socialism". Simon coined the term as a contrast to the liberal doctrine of "individualism", which stressed that people act or should act as if they are in isolation from one another; the original "utopian" socialists condemned liberal individualism for failing to address social concerns during the industrial revolution, including poverty, social oppression and gross inequalities in wealth, thus viewing liberal individualism as degenerating society into supporting selfish egoism that harmed community life through promoting a society based on competition. They presented socialism as an alternative to liberal individualism based on the shared ownership of resources, although their proposals for socialism differed significantly.
Saint-Simon proposed economic planning, scientific administration and the application of modern scientific advancements to the organisation of society. By contrast, Robert Owen proposed the organisation of ownership in cooperatives; the term "socialism" is attributed to Pierre Leroux and to Marie Roch Louis Reybaud in France. The modern definition and usage of "socialism" settled by the 1860s, becoming the predominant term among the group of words "co-operative", "mutualist" and "associationist", used as synonyms; the term "communism" fell out of use during this period, despite earlier distinctions between socialism and communism from the 1840s. An early distinction between socialism and communism was that the former aimed to only socialise production while the latter aimed to socialise both production and consumption. However, M
May Day is a public holiday celebrated on 1 May. It is an ancient Northern Hemisphere spring festival and a traditional spring holiday in many cultures. Dances and cake are part of the festivities. In the late 19th century, May Day was chosen as the date for International Workers' Day by the Socialists and Communists of the Second International to commemorate the Haymarket affair in Chicago. International Workers' Day can be referred to as "May Day", but it is a different celebration from the traditional May Day; the earliest known May celebrations appeared with the Floralia, festival of Flora, the Roman goddess of flowers, held on 27 April during the Roman Republic era, the Maiouma or Maiuma, a festival celebrating Dionysus and Aphrodite on an unknown date in May every three years. The Floralia opened with theatrical performances. In the Floralia, Ovid says that goats were released as part of the festivities. Persius writes that crowds were pelted with vetches and lupins. A ritual called the Florifertum was performed on either April 27 or May 3, during which a bundle of wheat ears was carried into a shrine, though it is not clear if this devotion was made to Flora or Ceres.
Floralia concluded with competitive events and spectacles, a sacrifice to Flora. According to the 6th century chronicles of John Malalas, the Maiouma was a "nocturnal dramatic festival, held every three years and known as Orgies, that is, the Mysteries of Dionysus and Aphrodite" and that it was "known as the Maioumas because it is celebrated in the month of May-Artemisios". During this time, enough money was set aside by the government for torches and other expenses to cover a thirty-day festival of "all-night revels." The Maiouma was celebrated with splendorous offerings. Its reputation for licentiousness caused it to be suppressed during the reign of Emperor Constantine, though a less debauched version of it was restored during the reigns of Arcadius and Honorius, only to be suppressed again during the same period. A May festival celebrated in Germanic countries, Walpurgis Night, commemorates the official canonization of Saint Walpurga on May 1st, 870.. In Gaelic culture, the evening of April 30th was the celebration of Beltane, the start of the summer season.
First attested in 900 AD, the celebration focused on the symbolic use of fire to bless cattle and other livestock as they were moved to summer pastures. This custom continued into the early 19th century, during which time cattle would be made to jump over fires to protect their milk from being stolen by fairies. People would leap over the fires for luck. Since the 18th century, many Roman Catholics have observed May – and May Day – with various May devotions to the Blessed Virgin Mary In works of art, school skits, so forth, Mary's head will be adorned with flowers in a May crowning. 1 May is one of two feast days of the Catholic patron saint of workers St Joseph the Worker, a carpenter, husband to Mother Mary, surrogate father of Jesus. Replacing another feast to St. Joseph, this date was chosen by Pope Pius XII in 1955 as a counterpoint to the communist International Workers Day celebrations on May Day; the best known modern May Day traditions, observed both in Europe and North America, include dancing around the maypole and crowning the Queen of May.
Fading in popularity since the late 20th century is the tradition of giving of "May baskets," small baskets of sweets or flowers left anonymously on neighbours' doorsteps. In the late 20th century, many neopagans began reconstructing some of the older pagan festivals and combining them with more developed European secular and Catholic traditions, celebrating May Day as a pagan religious festival. Traditional English May Day rites and celebrations include crowning a May Queen and celebrations involving a maypole, around which dancers circle with ribbons. Morris dancing has been linked to May Day celebrations; the earliest records of maypole celebrations date to the 14th century, by the 15th century the maypole tradition was well established in southern Britain. The spring bank holiday on the first Monday in May was created in 1978. In February 2011, the UK Parliament was reported to be considering scrapping the bank holiday associated with May Day, replacing it with a bank holiday in October coinciding with Trafalgar Day, to create a "United Kingdom Day".
Unlike the other Bank Holidays and common law holidays, the first Monday in May is taken off from schools by itself, not as part of a half term or end of term holiday. This is because it has no Christian significance and does not otherwise fit into the usual school holiday pattern. May Day was abolished and its celebration banned by Puritan parliaments during the Interregnum, but reinstated with the restoration of Charles II in 1660. 1 May 1707, was the day the Act of Union came into effect, joining England and Scotland to form the Kingdom of Great Britain. In Oxford, it is a centuries-old tradition for May Morning revellers to gather below the Great Tower of Magdalen College at 6 am to listen to the college choir sing traditional madrigals as a conclusion to the previous night's celebrations. Since the 1980s some people jump off Magdalen Bridge into the River Cherwell. For some years, the bridge has been closed on 1 Ma
Anarchism is an anti-authoritarian political philosophy that advocates self-governed societies based on voluntary, cooperative institutions and the rejection of hierarchies those societies view as unjust. These institutions are described as stateless societies, although several authors have defined them more as distinct institutions based on non-hierarchical or free associations. Anarchism holds the state to be undesirable and harmful. Anarchism is considered a far-left ideology and much of its economics and legal philosophy reflect anti-authoritarian interpretations of communism, syndicalism, mutualism, or participatory economics; as anarchism does not offer a fixed body of doctrine from a single particular worldview, many anarchist types and traditions exist and varieties of anarchy diverge widely. Anarchist schools of thought can differ fundamentally, supporting anything from extreme individualism to complete collectivism. Strains of anarchism have been divided into the categories of social and individualist anarchism, or similar dual classifications.
The etymological origin of anarchism derives from ancient Greek word anarkhia. Anarkhia meant "without a ruler" as it was composed by the word arkhos; the suffix -ism is used to denote the ideological current that favours anarchism. The first known use of this word was in 1642. Various factions within the French Revolution labelled opponents as anarchists although few shared many views of anarchists. There would be many revolutionaries of the early 19th century who contributed to the anarchist doctrines of the next generation, such as William Godwin and Wilhelm Weitling, but they did not use the word anarchist or anarchism in describing themselves or their beliefs; the first political philosopher to call himself an anarchist was Pierre-Joseph Proudhon, marking the formal birth of anarchism in the mid-19th century. Since the 1890s and beginning in France, the term libertarianism has been used as a synonym for anarchism and its use as a synonym is still common outside the United States. On the other hand, some use libertarianism to refer to individualistic free-market philosophy only, referring to free-market anarchism as libertarian anarchism.
While opposition to the state is central, defining anarchism is not an easy task as there is a lot of talk among scholars and anarchists on the matter and various currents perceive anarchism differently. Hence, it might be true to say that anarchism is a cluster of political philosophies opposing authority and hierarchical organization in the conduct of all human relations in favour of a society based on voluntary association and decentralisation, but this definition has its own shortcomings as the definition based on etymology, or based on anti-statism or the anti-authoritarian. Major elements of the definition of anarchism include: a) the will for a non coercive society. During the prehistoric era of mankind, an established authority did not exist, it was after the creation of towns and cities that hierarchy was invented and anarchistic ideas espoused as a reaction. Most notable examples of anarchism in the ancient world were in Greece. In China, philosophical anarchism, meaning peaceful delegitimizing of the state, was delineated by Taoist philosophers.
In Greece, anarchist attitudes were articulated by tragedians and philosophers. Aeschylus and Sophocles used the myth of Antigone to illustrate the conflict of personal autonomy with the state rules. Socrates questioned Athenian authorities and insisted to the right of individual freedom of consciousness. Cynics associated authorities while trying to live according to nature. Stoics were supportive of a society based on unofficial and friendly relations among its citizens without the presence of a state. During the Middle Ages, there was no anarchistic activity except some ascetic religious movements in the Islamic world or in Christian Europe; this kind of tradition gave birth to religious anarchism. In Persia, a Zoroastrian Prophet known as Mazdak was calling for an egalitarian society and the abolition of monarchy, but he soon found himself executed by the king. In Basra, religious sects preached against the state. In Europe, various sects developed anti-state and libertarian tendencies; those currents were the precursor of religious anarchism in the centuries to come.
It was in the Renaissance and with the spread of reasoning and humanism through Europe that libertarian ideas emerged. Writers were outlining in their novels ideal societies that were based not on coercion but voluntarism; the Enlightenment further pushed towards anarchism with the optimism for social progress. The turning point towards anarchism was the French Revolution in which the anti-state and federalist sentiments began to take a form by Enragés and sans-culottes; some prominent figures of anarchism begun developing the first anarchist currents. That is the era of classical anarchism that lasted until the end of the Spanish Civil War of 1936 and was the golden age of anarchism. William Godwin espoused philosophical anarchism in England morally delegitimizing the state, Max Stirner's thinking paved the way to individualism and Pierre-Joseph Proudhon's theory of mutualism found fertile soil in France. Michael Bakunin took mutualism and extended
The New York Times
The New York Times is an American newspaper based in New York City with worldwide influence and readership. Founded in 1851, the paper has won more than any other newspaper; the Times is ranked 17th in the world by circulation and 2nd in the U. S; the paper is owned by The New York Times Company, publicly traded and is controlled by the Sulzberger family through a dual-class share structure. It has been owned by the family since 1896. G. Sulzberger, the paper's publisher, his father, Arthur Ochs Sulzberger Jr. the company's chairman, are the fourth and fifth generation of the family to helm the paper. Nicknamed "The Gray Lady", the Times has long been regarded within the industry as a national "newspaper of record"; the paper's motto, "All the News That's Fit to Print", appears in the upper left-hand corner of the front page. Since the mid-1970s, The New York Times has expanded its layout and organization, adding special weekly sections on various topics supplementing the regular news, editorials and features.
Since 2008, the Times has been organized into the following sections: News, Editorials/Opinions-Columns/Op-Ed, New York, Sports of The Times, Science, Home and other features. On Sunday, the Times is supplemented by the Sunday Review, The New York Times Book Review, The New York Times Magazine and T: The New York Times Style Magazine; the Times stayed with the broadsheet full-page set-up and an eight-column format for several years after most papers switched to six, was one of the last newspapers to adopt color photography on the front page. The New York Times was founded as the New-York Daily Times on September 18, 1851. Founded by journalist and politician Henry Jarvis Raymond and former banker George Jones, the Times was published by Raymond, Jones & Company. Early investors in the company included Edwin B. Morgan, Christopher Morgan, Edward B. Wesley. Sold for a penny, the inaugural edition attempted to address various speculations on its purpose and positions that preceded its release: We shall be Conservative, in all cases where we think Conservatism essential to the public good.
We do not believe that everything in Society is either right or wrong. In 1852, the newspaper started a western division, The Times of California, which arrived whenever a mail boat from New York docked in California. However, the effort failed. On September 14, 1857, the newspaper shortened its name to The New-York Times. On April 21, 1861, The New York Times began publishing a Sunday edition to offer daily coverage of the Civil War. One of the earliest public controversies it was involved with was the Mortara Affair, the subject of twenty editorials in the Times alone; the main office of The New York Times was attacked during the New York City Draft Riots. The riots, sparked by the beginning of drafting for the Union Army, began on July 13, 1863. On "Newspaper Row", across from City Hall, Henry Raymond stopped the rioters with Gatling guns, early machine guns, one of which he manned himself; the mob diverted, instead attacking the headquarters of abolitionist publisher Horace Greeley's New York Tribune until being forced to flee by the Brooklyn City Police, who had crossed the East River to help the Manhattan authorities.
In 1869, Henry Raymond died, George Jones took over as publisher. The newspaper's influence grew in 1870 and 1871, when it published a series of exposés on William Tweed, leader of the city's Democratic Party—popularly known as "Tammany Hall" —that led to the end of the Tweed Ring's domination of New York's City Hall. Tweed had offered The New York Times five million dollars to not publish the story. In the 1880s, The New York Times transitioned from supporting Republican Party candidates in its editorials to becoming more politically independent and analytical. In 1884, the paper supported Democrat Grover Cleveland in his first presidential campaign. While this move cost The New York Times a portion of its readership among its more progressive and Republican readers, the paper regained most of its lost ground within a few years. After George Jones died in 1891, Charles Ransom Miller and other New York Times editors raised $1 million dollars to buy the Times, printing it under the New York Times Publishing Company.
However, the newspaper was financially crippled by the Panic of 1893, by 1896, the newspaper had a circulation of less than 9,000, was losing $1,000 a day. That year, Adolph Ochs, the publisher of the Chattanooga Times, gained a controlling interest in the company for $75,000. Shortly after assuming control of the paper, Ochs coined the paper's slogan, "All The News That's Fit To Print"; the slogan has appeared in the paper since September 1896, has been printed in a box in the upper left hand corner of the front page since early 1897. The slogan was a jab at competing papers, such as Joseph Pulitzer's New York World and William Randolph Hearst's New York Journal, which were known for a lurid and inaccurate reporting of facts and opinions, described by the end of the century as "yellow journalism". Under Ochs' guidance, aided by Carr
Red flag (politics)
In politics, a red flag is predominantly a symbol of socialism, Marxism, trade unions, left-wing politics, of anarchism. Socialists adopted the symbol during the Revolutions of 1848 and it became a symbol of communism as a result of its use by the Paris Commune of 1871; the flags of several communist states, including China and the Soviet Union, are explicitly based on the original red flag. The red flag is used as a symbol by some democratic socialists and social democrats, for example the League of Social Democrats of Hong Kong, French Socialist Party and the Social Democratic Party of Germany; the Labour Party in Britain used it until the late 1980s. It was the inspiration for The Red Flag. In the Middle Ages, ships in combat flew a long red streamer, called the Baucans, to signify a fight to the death. In one petition, a group of English sailors asserted that the Crown had no right to a share of the prize money earned from a Norman ship captured in 1293 because it had raised the Baucans. By the 17th century, the Baucans had evolved into a red flag, or "flag of defiance."
It was raised in castles under siege to indicate that they would not surrender. "The red flag is a signal of battle," according to Chambers Cyclopedia. The red cap was a symbol of popular revolt in France going back to the Jacquerie of 1358; the color red become associated with patriotism early in the French Revolution due to the popularity of the Tricolour cockade, introduced in July 1789, the Phrygian cap, introduced in May 1790. A red flag was raised over the Champ-de-Mars in Paris on July 17, 1791 by Lafayette, commander of the National Guard, as a symbol of martial law, warning rioters to disperse; as many as fifty anti-royalist protesters were killed in the fighting. Inverting the original symbolism, the Jacobins protested this action by flying a red flag to honor the "martyrs' blood" of those, killed, they created their own red flags to declare "the martial law of the people against the revolt of the court." The Jacobin Club ruled France during the Reign of Terror and made the red flag an unofficial national emblem.
However, the earlier Tricolor regained popularity under Napoleon. British sailors mutinied near the mouth of the River Thames in 1797 and hoisted a red flag on several ships. Two red flags soaked in calf's blood were flown by marchers in South Wales during the Merthyr Rising of 1831, it is claimed to be the first time. Along with the Newport Rising eight years it was one of the most serious violent outbreaks witnessed on mainland Britain; the red flags of Merthyr became a potent relic following the execution of early trade unionist Dic Penderyn in August 1831, despite a public campaign to pardon him. During the Mexican siege of the Alamo in March 1836, General Antonio Lopez de Santa Ana displayed a plain red flag from the highest church tower in Bejar; the meaning of this flag was not socialism: its meaning - directed to the Alamo defenders - meant "no surrender. At much the same time, the Liberal "Colorados" in the Uruguayan Civil War used red flags; this prolonged struggle at the time got considerable attention and sympathy from Liberals and revolutionaries in Europe and it was in this war that Garibaldi first made a name for himself and that he was inspired to have his troops wear the famous Red Shirts.
During the 1848 Revolution in France and radical republicans demanded that the red flag be adopted as France's national flag. Led by poet-politician Alphonse de Lamartine, the government rejected the crowd's demand: "he red flag that you have brought back here has done nothing but being trailed around the Champ-de-Mars in the people's blood in 91 and 93, whereas the Tricolore flag went round the world along with the name, the glory and the liberty of the homeland!" The banner of the Paris Commune of 1871 was red and it was at this time that the red flag became a symbol of communism. The flag was flown by anarchists at a May Day rally for an eight-hour workday in Chicago in 1886. A bomb blast killed five were executed; this event, considered the beginning of the international labor movement, is still commemorated annually in many countries The red flag gained great popularity during the Russian Revolution of 1917. The Soviet flag, with a hammer, a sickle and a star on a red background, was adopted in 1923.
Various Communist and socialist newspapers have used the name The Red Flag. In China, both the Nationalist Party-led Republic of China and the Communist Party-led People's Republic of China use a red field for their flags, a reference to their revolutionary origins. In more recent times, social democratic parties have gravitated away from the Red Flag as a symbol. However, several European parties retain a "red square" symbol, including Germany's SPD and the Party of European Socialists; the building to have had a red flag flying for the longest period of time and to still have one is the Victorian Trades Hall in Melbourne, Australia. The flag has been flying for over a century. Anarchists, as part of the socialist movement used red flag in the 19th Century - it was one of the first anarchist symbols. Usage of the red flag by anarchists disappeared after the October Revolution, when red flags started to be associated only with communist parties and bureaucratic and authoritarian
In political and social sciences, communism is the philosophical, social and economic ideology and movement whose ultimate goal is the establishment of the communist society, a socioeconomic order structured upon the common ownership of the means of production and the absence of social classes and the state. Communism includes a variety of schools of thought, which broadly include Marxism and anarchism, as well as the political ideologies grouped around both. All of these share the analysis that the current order of society stems from its economic system, capitalism; the two classes are the working class—who must work to survive and who make up the majority within society—and the capitalist class—a minority who derives profit from employing the working class through private ownership of the means of production. The revolution will put the working class in power and in turn establish social ownership of the means of production, which according to this analysis is the primary element in the transformation of society towards communism.
Critics of communism can be divided into those concerning themselves with the practical aspects of 20th century communist states and those concerning themselves with communist principles and theory. Marxism-Leninism and democratic socialism were the two dominant forms of socialism in the 20th century; the term "communism" was first coined and defined in its modern definition by the French philosopher and writer Victor d'Hupay. In his 1777 book Projet de communauté philosophe, d'Hupay pushes the philosophy of the Enlightenment to principles which he lived up to during most of his life in his bastide of Fuveau; this book can be seen as the cornerstone of communist philosophy as d'Hupay defines this lifestyle as a "commune" and advises to "share all economic and material products between inhabitants of the commune, so that all may benefit from everybody's work". According to Richard Pipes, the idea of a classless, egalitarian society first emerged in Ancient Greece; the 5th-century Mazdak movement in Persia has been described as "communistic" for challenging the enormous privileges of the noble classes and the clergy, for criticizing the institution of private property and for striving to create an egalitarian society.
At one time or another, various small communist communities existed under the inspiration of Scripture. For example, in the medieval Christian Church some monastic communities and religious orders shared their land and their other property. Communist thought has been traced back to the works of the 16th-century English writer Thomas More. In his treatise Utopia, More portrayed a society based on common ownership of property, whose rulers administered it through the application of reason. In the 17th century, communist thought surfaced again in England, where a Puritan religious group known as the "Diggers" advocated the abolition of private ownership of land. In his 1895 Cromwell and Communism, Eduard Bernstein argued that several groups during the English Civil War espoused clear communistic, agrarian ideals and that Oliver Cromwell's attitude towards these groups was at best ambivalent and hostile. Criticism of the idea of private property continued into the Age of Enlightenment of the 18th century through such thinkers as Jean Jacques Rousseau in France.
Following the upheaval of the French Revolution communism emerged as a political doctrine. In the early 19th century, various social reformers founded communities based on common ownership. However, unlike many previous communist communities they replaced the religious emphasis with a rational and philanthropic basis. Notable among them were Robert Owen, who founded New Harmony in Indiana, as well as Charles Fourier, whose followers organized other settlements in the United States such as Brook Farm. In its modern form, communism grew out of the socialist movement in 19th-century Europe; as the Industrial Revolution advanced, socialist critics blamed capitalism for the misery of the proletariat—a new class of urban factory workers who labored under often-hazardous conditions. Foremost among these critics were his associate Friedrich Engels. In 1848, Marx and Engels offered a new definition of communism and popularized the term in their famous pamphlet The Communist Manifesto; the 1917 October Revolution in Russia set the conditions for the rise to state power of Vladimir Lenin's Bolsheviks, the first time any avowedly communist party reached that position.
The revolution transferred power to the All-Russian Congress of Soviets, in which the Bolsheviks had a majority. The event generated a great deal of theoretical debate within the Marxist movement. Marx predicted that socialism and communism would be built upon foundations laid by the most advanced capitalist development. However, Russia was one of the poorest countries in Europe with an enormous illiterate peasantry and a minority of industrial workers. Marx had explicitly stated; the moderate Mensheviks opposed Lenin's Bolshevik plan for socialist revolution before capitalism was more developed. The Bolsheviks' successful rise to power was based upon the slogans such as "Peace and land" which tapp
A Liberty bond was a war bond, sold in the United States to support the allied cause in World War I. Subscribing to the bonds became a symbol of patriotic duty in the United States and introduced the idea of financial securities to many citizens for the first time; the Act of Congress which authorized the Liberty Bonds is still used today as the authority under which all U. S. Treasury bonds are issued. Securities known as Liberty Bonds, were issued in the aftermath of the September 11 attacks to finance the rebuilding of the areas affected. There were four issues of Liberty Bonds: Apr 24, 1917 Emergency Loan Act authorizes issue of $1.9 billion in bonds at 3.5 percent. Oct 1, 1917 Second Liberty Loan offers $3.8 billion in bonds at 4 percent Apr 5, 1918 Third Liberty Loan offers $4.1 billion in bonds at 4.15 percent. Sep 28, 1918 Fourth Liberty Loan offers $6.9 billion in bonds at 4.25 percent. Interest on up to $30,000 in the bonds was tax exempt only for the First Liberty Bond; the 1st Liberty Loan Act established a $5 billion aggregate limit on the amount of government bonds issued at 30 years at 3.5% interest, redeemable after 15 years.
It raised $2 billion with 5.5 million people purchasing bonds. The 2nd Liberty Loan Act established a $15 billion aggregate limit on the amount of government bonds issued, allowing $3 billion more offered at 25 years at 4% interest, redeemable after 10 years; the amount of the loan totaled $3.8 billion with 9.4 million people purchasing bonds. The response to the first Liberty Bond was unenthusiastic and although the $2 billion issue sold out, it had to be done below par because the notes traded below par. One reaction to this was to attack bond traders as "unpatriotic"; the Board of Governors of the New York Stock Exchange conducted an investigation of brokerage firms who sold below par to determine if "pro-German influences" were at work. The board forced one such broker to buy the bonds back at par and make a $100,000 donation to the Red Cross. Various explanations were offered for the weakness of the bonds ranging from German sabotage to the rich not buying the bonds because it would give an appearance of tax dodging.
A common consensus was that more needed to be done to sell the bonds to small investors and the common man, rather than large concerns. The poor reception of the first issue resulted in a convertible re-issue five months at the higher interest rate of 4% and with more favorable tax terms. So, when the new issue arrived it sold below par; this weakness continued with subsequent issues, the 4.25% bond priced as low as 94 cents upon arrival. Secretary of the Treasury William Gibbs McAdoo reacted to the sales problems by creating an aggressive campaign to popularize the bonds; the government used a division of the Committee on Public Information called the Four Minute Men to help sell Liberty Bonds and Thrift Stamps. Famous artists helped to make posters and movie stars hosted bond rallies. Al Jolson, Elsie Janis, Mary Pickford, Douglas Fairbanks and Charlie Chaplin were among the celebrities that made public appearances promoting the idea that purchasing a liberty bond was "the patriotic thing to do" during the era.
Chaplin made a short film, The Bond, at his own expense for the drive. The Boy Scouts and Girl Scouts sold the bonds, using the slogan "Every Scout to Save a Soldier". Beyond these effective efforts, in 1917 the Aviation Section of the U. S. Army Signal Corps established an elite group of Army pilots assigned to the Liberty Bond campaign; the plan for selling bonds was for the pilots to crisscross the country in their Curtiss JN-4 "Jenny" training aircraft in flights of 3 to 5 aircraft. When they arrived over a town, they would perform acrobatic stunts, put on mock dog fights for the populace. After performing their air show, they would land on a golf course, or a pasture nearby. By the time they shut down their engines, most of the townspeople, attracted by their performance, would have gathered. At that point, most people had never seen ridden in one; each pilot stood in the rear cockpit of his craft and told the assemblage that every person who purchased a Liberty Bond would be taken for a ride in one of the airplanes.
The program was successful in raising a substantial amount of money, used to pay for the war effort. The methodology developed and practiced by the Army was followed by numerous entrepreneurial flyers known as Barnstormers, who purchased war surplus Jenny airplanes and flew across the country selling airplane rides. Vast amounts of promotional materials were manufactured. For example, for the third Liberty Loan nine million posters, five million window stickers and 10 million buttons were produced and distributed; the campaign spurred community efforts across the country and resulted in glowing, patriotically-tinged reports on the "success" of the bonds. For the fifth and final loan drive in 1919 the Treasury Department produced steel medallions made from melted down German cannon, captured by American troops at Château-Thierry in NW France; the inch-and-a-quarter wide medallions suspended from a red and blue ribbon were awarded by the Department to Victory Liberty Loan campaign volunteers in appreciation of their service in the drive.
Peak US indebtedness was in August 1919 at a value of $25,596,000,000 for Liberty Bonds, Victory Notes, War Savings Certificates, other government securities. As early as 1922 the possibility that the war debt could not be paid in full within the expected schedule was raised, that debt rescheduling may be needed. In 1921 the Treasury Department began issuing short term notes maturing in three to five years to repay the Victory Loan