potty5 Posted 20 June , 2011 Share Posted 20 June , 2011 Can anyone explain the "Victory War Loan" and how it worked. I know it raised vast amounts of money in Feb 1917, but what did the common man get out of subscribing his £5. Did they get any interest on their bond and was it paid after the war's end? Somebody told me they got about 5% on their money??? Thanks. Link to comment Share on other sites More sharing options...
Mk VII Posted 26 July , 2011 Share Posted 26 July , 2011 The War Loan was a dated stock paying 5%, I think. During the 1930s, the Treasury urged investors to send back these stocks in exchange for an undated stock paying 3.5%, as a patriotic gesture to help the country in its financial difficulties. There were some short-term financial incentives to give people a nudge, but essentially it was sold as a 'noble sacrifice' . The principal was to be repaid "when the Chancellor deems it to be in the national interest". That happy day has yet to arrive, and the many people who took this deal have long since departed this world without their money back. By the 1990s £100-worth of War Loan was discounted on the market to £33. In recent years, the possibility of Britain joining the euro reawakened interest in War Loan, as the Treasury would have to repay this, and any other sterling loans, first. http://www.time.com/time/magazine/article/0,9171,744170,00.html Link to comment Share on other sites More sharing options...
Old Tom Posted 27 February , 2017 Share Posted 27 February , 2017 (edited) A note in today's Times provoked a question. However a search shows it was answered a few years ago. The note, an extract from the paper dated 27 Feb 1917, said that Mr Bonar Law had raised the House to a high pitch of enthusiasm by announcing that Kut was again in our hands and that the War Load had yielded £ 1,000,000,000 which was actually £ 300,000,000 more than the estimate he had made a week before. Huge sums even by the standards of the day. No doubt another three zeros would be needed to provide some indication in today's terms. Interesting, but perhaps futile, to wonder who the 'investors' were and how much each coughed up. Edited 27 February , 2017 by Old Tom Link to comment Share on other sites More sharing options...
Old Tom Posted 27 February , 2017 Share Posted 27 February , 2017 (edited) A note in today's Times provoked a question. However a search shows it was answered a few years ago. The note, an extract from the paper dated 27 Feb 1917, said that Mr Bonar Law had raised the House to a high pitch of enthusiasm by announcing that Kut was again in our hands and that the War Load had yielded £ 1,000,000,000 which was actually £ 300,000,000 more than the estimate he had made a week before. Huge sums even by the standards of the day. No doubt another three zeros would be need to provide some indication in today's terms. Interesting, but perhaps futile, to wonder who the 'investors' were and how much each coughed up. Apologies - finger trouble. But! it has added to my 'score' Edited 27 February , 2017 by Old Tom Link to comment Share on other sites More sharing options...
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