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Adjusted Service Bonds were issued to veterans of WWI. They were the successor payments to the World War Adjusted Compensation Act, which provided a bonus payment to soldiers based on the number of days served in the war. These certificates could not be redeemed until 1945, causing financial hardship for many veterans. After a protest in the summer of 1932 known as the "Bonus Army," Congress eventually changed the law in 1936 and paid the veterans upon redemption of the older certificates.  The Adjusted Service Bonds were issued to replace the prior debt, and were payable by the Treasury any time after June of 1936. These securities were non-transferable.


Armed Forces Leave Bonds were issued to active and retired members of the Armed Forces for service during WWII.  As compensation for paid leave, these non-transferable bonds were issued as authorized by both the Second Liberty Loan Act and the 1946 Armed Forces Leave Act. 

1936  $50 Adjusted Service Bond

3%  9-year Registered Loan


Original Issuance: $1.8 Billion


This non-transferable bond carried a 3% interest rate.  Unlike the earlier issued Adjusted Service Certificates, these bonds were redeemable by veterans upon receipt, and many veterans did just that. The Adjusted Service Bonds were only issued in $50 denominations. 

*This bond image has been restored for privacy and display purposes. 

1936 Regulations Governing Adjusted Service Bonds

Treasury Department Circular No. 560

This Treasury Department Circular, distributed to owners of Adjusted Service Bonds and throughout the banking system, provided information regarding the redemption and handling of the securities.

1946  $450 Armed Forces Leave Bond

2.5%  5-year Registered Loan


Original Issuance: $1.79 Billion

This non-transferable bond carried a 2.5% interest rate.  The maturity date of the bonds was

based on the five-year anniversary of the service member's separation from the military.

*This bond image has been digitally restored for privacy and display purposes.

Copyright The Joe I. Herbstman Memorial Collection of American Finance 


All Rights Reserved

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