Proudly display your honor and respect for your family member who is proudly serving this great nation. Official Military Service Banners. Number of stars represent active duty family members. Indoor. The Blue Star Banner was designed in 1917 and codified and starndardized after World Ware II to honor those actively serving in the US Military. When displayed with the American Flag, the later is given the place of honor. If the flags displayed are different sizes, the American Flag should be larger.