During World War II, the Federal Reserve handled defense bonds and issued them to post offices and banks for sale. Additionally, the Victory Fund Committee - which was headed by the President of the Federal Reserve Bank and consisted of 12 committees representing each Federal Reserve district - promoted the sale of war bonds to the American people. These bonds were issued not only to help finance the cost of the war, but were an effort to prevent inflation in an environment characterized by both full employment and rationing.
