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?orm F. R. 131 BOARD OF GOVERNORS FEDERAL RESERVE SYSTEM O f f i c e C o r r e s p o n d e n c e Date January gi, 1941, To chairman d e n i e s Subject; Revised draft Of frill on From Mr. Vest debt limit, Federal tzmtlQH* etOt For your information, Mr. Boughton on January 30, 1941, introduced H.R. 2959, which is merely a revised draft of H.R. 2653, which he introduced on January 24, relating to the increase in the debt limit and Federal taxation of obligations of the United States. There are only two substantial differences between the new b i l l and the old b i l l : (1) The old b i l l would have removed the tax exemption from the principal of United States obligations as well as from interest thereon. The new b i l l removes the tax exemption from interest on such obligations but contains no provision regarding the taxation of the principal thereof. (2) The old b i l l authorized the withdrawal of Postal Savings deposits on less than 60 days1 notice without loss of interest for the purpose of acquiring savings bonds and savings certificates offered by the Treasury. This provision i s not in the new b i l l . Respectfully, Georg^/B. Vest, Assistant General Counsel,
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