Full text of Federal Reserve Bank of New York Circulars : 120. Information Regarding the Fourth Liberty Loan

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CIRCULAR NO.

120

FEDERAL R E S E R V E BANK OF N E W YORK
BOND

ISSUE

120
A D D R E S S ALL C O M M U N I C A T I O N S

DIVISION

BROADWAY

TO

TELEPHONE

BON D ISSUE DIVISION

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R E C T O R 5 7 0 0

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c-928-4

October 2, 1918.

FOURTH LIBERTY LOAN
UNITED STATES OF AMERICA 4 ^ % GOLD BONDS OF 1933-38
THIS CIRCULAR CONTAINS NECESSARY INFORMATION FOR BANKS
IN CONNECTION WITH THE FOURTH LIBERTY LOAN. THE INFORMATION AND INSTRUCTIONS GIVEN ARE VERY IMPORTANT.
ALL OFFICERS AND EMPLOYEES IN YOUR BANK HANDLING
LIBERTY LOAN WORK SHOULD HAVE AN OPPORTUNITY TO
FAMILIARIZE THEMSELVES WITH THESE INSTRUCTIONS AND
BE GOVERNED ACCORDINGLY.
ADDITIONAL COPIES WILL BE
CHEERFULLY FURNISHED UPON REQUEST.
To

THE BANKS IN DISTRICT N O . 2:

This issue of bonds is authorized by an Act of Congress approved September 24, 1918,
and offered for subscription in Treasury Department Circular No. 121, dated September 28, 1918,
to which reference is made for more detailed information concerning the bonds.
Bonds will be dated October 24, 1918, and will bear interest from that date.
Due October 15, 1938.
Interest is payable April 15 and October 15 of each year.
Redeemable at the pleasure of the United States at par and accrued interest on and
after October 15, 1933.
The campaign for subscriptions opens September 28, 1918 and closes at the close of
business October 19, 1918.
DENOMINATIONS:
DENOMINATIONS:

COUPON BONDS, $50, $100, $500, $1,000, $5,000, $10,000.
REGISTERED

BONDS, $50, $100, $500, $1,000, $5,000,

$10,000, $50,000, $100,000.

Bonds of this series are not entitled to any privilege of conversion into bonds bearing a
higher rate of interest.




D A I L Y R E P O R T S D U R I N G T H E CAMPAIGN
Postal card reports, Form 1, have been sent to all banks for use in reporting subscriptions
daily during the campaign.
I t is very essential t h a t banks mail a card each night giving the amount of their subscriptions, the n u m b e r of subscribers for the day and the totals to date, and it is equally essential t h a t
a card be mailed even though there are no new subscriptions to report. T h e proper tabulation of the subscription figures from day to d a y is dependent upon this being done.
No other reports will be required until after the close of the campaign.
Any bank placing its subscription with another bank and n o t direct with the Federal
Reserve Bank, should n o t use the postal cards, nor send us reports of any kind as to the
a m o u n t of its subscriptions, as to do so would result in a duplication. If banks intending to
place their subscriptions through other banks advise us to t h a t effect, it will be appreciated
T h e Treasury D e p a r t m e n t requests t h a t banks retain individual subscription blanks
in their files in such manner t h a t names, addresses, and a m o u n t of subscriptions can be furnished if requested.

FINAL R E P O R T OF S U B S C R I P T I O N S
Final report, Form 2, of subscriptions received by your bank must be in our hands before
the close of business October 24, 1918, accompanied by the required payment. Forms will be
sent you before t h a t d a t e which will provide for reporting the number of subscribers, the amount
of each subscription, and the total of your subscriptions in the following classes:
50
100
150 to 450 inclusive
500
55° to 950
"
1,000
1,050 to 1,950
2,000 to 2,950
3,000 to 3,950

4,000 to 4,950
5,000

"
"
"

"

5,050
6,000
7,000
8,000
9,000

to
to
to
to
to

5,950 inclusive
6,950 "
7,950
8,950 "
9,95o
"

10,000
10,050 to 50,000
50,050 to 100,000"
100,050 to 200,000 "

,
. . . .
above 200,000 in detail.

In order t h a t we m a y be able to give you proper quota credit for your entire subscription and number of subscribers, provision will be made for reporting on this form the number
of subscribers and a m o u n t of subscription represented by your applications previously filed,
if any, for bonds paid in full by you during the campaign.
Final report, F o r m 2 , m u s t be accompanied by the initial payment of 1 0 % of the a m o u n t
of such report or p a y m e n t in full m a y be made for all or any part of your subscription. Final
report, F o r m 2, must also show number of bonds required of each denomination, both
coupon and registered, and a separate list on form provided must accompany this report,
giving names and addresses for registered bonds.




PAYMENTS
Payments on account of subscriptions are due as follows:
10% with subscription (to be remitted by banks
with final report, Form 2, which must be in
our hands before the close of business October
24, 1918.)
20% November 21,1918.
20% December 19, 1918.
20% January 16, 1919.
30% January 30, 1919.
Full payment may be made on October 24, 1918, or on any other of the instalment dates
but not between instalment dates. If full payment is made on any instalment date later than
October 24, 1918, the accrued interest must be paid at the time of making such full payment.
HOW PAYMENT MAY BE MADE
Payment of all instalments, including initial 10%, or payment in full may be made as
follows:
1: By Treasury Certificates of Indebtedness: payment of the
first instalment of 10% or full payment on October 24, may be made in
United States Treasury Certificates of Indebtedness of Series IV of any
maturity, but not in Certificates of Tax Series of 1919. Payment on other
instalment dates may be made in United States Certificates of Indebtedness of the issues, if any, maturing or called for redemption on said instalment dates, respectively. Such Certificates must not be presented
in amounts larger than the amount to be paid. Certificates used to
make payment for subscriptions will bear interest to the date of such
payment and in the case of Certificates used to make the initial 10% payment or full payment on or before October 24, will draw interest until
that date. Certificates will be received at their face amount. Interest
will be remitted to you as a separate transaction.
2:

By cash or bank draft (New York Funds).

3: By Advice of Credit on the books of incorporated banks or
trust companies which have qualified as depositaries, to the extent that
they cannot make payment by Treasury Certificates of Indebtedness.
4: By instructions by banks wishing to do so to any other bank or
banks to make payment for their account. A bank doing this should
send report Form 2 direct to the Federal Reserve Bank indicating in
spaces provided by whom any payments will be made.
DELIVERY OF BONDS FULL PAID DURING THE CAMPAIGN
Bonds will be available for delivery to subscribers who make payment in full in cash
before October 19, 1918. These bonds may be obtained by banks upon filing application
on blank Form provided and payment for these bonds may be made in the following ways:




By Advice of Credit by properly designated depositaries (using Form G. D. 10).
By cash or bank draft (New York Funds).
Banks desiring to obtain the bonds the same day payment is made, must pay either by
Advice of Credit, check on the Federal Reserve Bank or cash.
Certificates of Indebtedness cannot be used in making payment for advance sales.
Subscribers paying in full during the campaign may request registered bonds and such
bonds will be delivered as soon as possible.
The delivery of registered bonds cannot of course be made as expeditiously as coupon
bonds, but the T^asury Department informs us that registered bonds of the Fourth Loan will
be delivered promptly. The Treasury Department strongly advises subscribers to request
registered bonds in order to protect themselves against the risk of loss, theft and destruction
of their bonds. Coupon bonds cannot be exchanged for registered bonds until the original
registration is complete.
CORRESPONDENCE
In order that all inquiries concerning Liberty Loan bonds may receive proper attention,
may we impress upon you the importance of mentioning the name of the loan and the rate
of interest in your letter.
In corresponding about Liberty Loan bonds, it will be appreciated if a separate letter
is written concerning each issue.
In replying to letters, please mention reference number or initials, and address to Federal
Reserve Bank of New York, Bond Issue Division, P. O. Box 58, New York City.




Very truly yours,
L. F. SAILER,

Deputy Governor.