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FEDERAL RESERVE BANK
OF N EW YORK
Fiscal Agent of the United States
rCircular No. 3 3 6 2 1
L August 18, 1948 J

TREASURY SAYINGS NOTES, SERIES D

To all Banking Institutions, and Others Concerned,
in the Second Federal Reserve District :

The following press statement was today made public:
Secretary of the Treasury Snyder announced today the details of the new Treasury Savings Notes,
Series D, which will become available for purchase on September 1, 1948, and the termination of the
sale of Treasury Savings Notes, Series C, at the close of business August 31.
The new notes of Series D will be dated as of the first day of the month in which purchased, will
mature three years thereafter, and they will be issued at par. Interest on the notes will accrue each
month from month of issue, on a graduated scale, the equivalent yield if held to maturity being approx­
imately 1.40 percent per annum. The amount of accrual each month on each $1,000 principal amount
of notes, from month of issue to month of maturity, follows:
Half-year periods after
month of issue

First Y* y e a r.....................................................
Y2 to 1 year.........................................................
1 to V/2 years.....................................................
1V2 to 2 years.....................................................
2 to 2*4 years.....................................................
2VZ to 3 years.....................................................

Interest accrual
eaeh month per
$1,000

$0.80
1.00
1.20
1.30
1.40
1.40

$1,000 principal
with interest accrual
(cumulative) to end
of period added

$1,004.80
1,010.80
1,018.00
1,025.80
1,034.20
1,042.60

The Secretary also announced that the period during which the new notes may not be submitted
for cash redemption has been decreased from six months to four months from month of issue.
Like Series C, the new notes of Series D will be available for use in payment of income, estate and
gift taxes imposed by the Internal Revenue Code and assessed against the owner of the notes or his
estate. I f not presented in payment of taxes, and except for those in the names of banks that accept
demand deposits, the notes of Series D will be redeemable at par and accrued interest, either at
maturity or during and after the fourth calendar month after the month of issue. If inscribed in the
name of a bank that accepts demand deposits, the notes will be accepted at par and accrued interest
in payment of taxes, but redeemed for cash at or before maturity only at the purchase price, or par.
The new Treasury Savings Notes, like those of prior series, will be issued only by the Federal
Reserve Banks and Branches, and the Treasury Department, Washington.

Copies of the Treasury Department circular giving full particulars regarding the notes
of the new series and new application forms for the new series are being prepared and will be
furnished you on or about September 1, 1948.




A lla n S proul,

President.


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102