Fourth Liberty Loan $100 Bond (1918) with Coupons

Sought-after long-form $100 Fourth Liberty Loan Bond issued October 24, 1918, with 18 coupons remaining. This 20-year long coupon bond carried a 4.25% interest rate. The certificate features a portrait of Andrew Jackson and bears the facsimile signatures of the Secretary of the Treasury and the Register of the Treasury. In spite of an original issuance of $6.96 billion, only twenty-five or so examples are known. In fine condition.

Liberty bonds were issued in several series by the United States Treasury between 1917 and 1919 to finance America's participation 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. Many iconic posters were released to encourage participation in the liberty loan campaigns, and movie stars hosted bond rallies to gather publicity for the bonds.

The Fourth Liberty Loan also has the distinction of being the only federal bond issue in the history of the United States to default on its terms. As stated in the text, it was to be payable "in United States gold coin of the present standard of value." However, Congress passed a resolution in 1933 which suspended payment in gold, one year before the Fourth Liberty Loan was to be called. Despite a legal challenge to the default, wherein the Supreme Court acknowledged a violation of the 14th Amendment, the Fourth Liberty Loan was not redeemed at the original terms of its issuance.