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F E D E R A L R E SE R V E B AN K
OF N E W YORK
Fiscal A g en t o f the U nited States

r Circular No. 3704*1

L

May 14, 1951

J

TREASURY SAYINGS NOTES
Series A

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

The follow in g statement was made public to d a y :
Secretary o f the Treasury Snyder announced today the details o f the new Treasury Savings Notes
which will be offered fo r sale beginning May 15, 1951. The sale o f the current Series D Treasury Sav­
ings Notes will be discontinued at the close o f business today.
The new series o f notes will be designated Series A . They will be dated the fifteenth o f each
calendar month and will mature three years thereafter. A s is the case with the Series D savings notes,
accrued interest will be collected from the purchaser from the issue date o f the new notes to the day,
inclusive, on which fu ll payment is made in cash or other immediately available funds. The notes may
be purchased from any Federal Reserve Bank or Branch or from the Treasurer o f the United States in
W ashington.
Interest on the notes will accrue monthly on the fifteenth day o f each month from the issue date,
at rates ranging from 1.44 percent if the notes are held fo r six months or less to 1.88 percent i f the
notes are held fo r the fu ll three-year term. They will be available fo r use in paym ent o f income, estate
and g ift taxes imposed by the Internal Revenue Code and assessed against the owner o f the notes or
his estate, at par and accrued interest, at any time after two months from the issue date. They will
be redeemable fo r cash at par and accrued interest at any time after fou r months from the issue date,
except in the case o f notes inscribed in the name o f a bank that accepts demand deposits. W hile inter­
est will be credited on notes inscribed in the name o f a bank that accepts demand deposits i f presented
in payment o f taxes, no interest will be paid either at or before m aturity i f such notes are redeemed
fo r cash.

The term s o f this offerin g are set forth in T reasury D epartm ent Circular N o. 889, dated
M ay 10, 1951, a cop y o f which is printed on the follow in g pages. E nclosed are copies o f a new
application form (G .B. 499A ) fo r the notes o f the new series.
A dditional copies o f this circular and o f the application form w ill be furnished upon
request.




A

llan

S proul,

President.

U NITED STATES OF AM ERIC A
T R E A S U R Y SAVINGS NOTES
Series A

1951
D ep artm en t C ircular N o . 889

TREASU RY DEPARTM ENT,
O f f ic e

F isc a l S ervice
Bureau o f th e P u b lic D eb t

of

the

S ecretary,

W ashington, M ay 10, 1951.

S u b p a rt

A

Offering o f Notes.

B

Description o f Notes.

C

Purchase o f Notes.

D

Presentation in Payment o f Taxes.

E

Cash Redem ption at or B efore M aturity.

F

Paym ent or Reissue to Other Than Inscribed Owner.

G

General Provisions.
Subpart A :

O FFE R IN G OF NOTES

Sec. 331.1. The Secretary o f the Treasury, pursuant to the authority o f the Second Liberty B ond A ct.
as amended, offers fo r sale to the people o f the U nited States, at par and accrued interest as provided in
Section 331.12 hereof, an issue o f notes o f the United States designated Treasury Savings Notes, Series A ,
which notes, i f inscribed in the name o f a Federal taxpayer, w ill be receivable as hereinafter provided at
par and accrued interest in payment o f income, estate and g ift taxes imposed b y the Internal Revenue
Code, or laws amendatory or supplementary thereto. The notes m ay also be redeemed fo r cash at par and
accrued interest, with certain exceptions applicable to banking institutions, as provided in Section 331.16
hereof.
Sec. 331.2. W ithdrawal o f Series D N otes.— The sale o f Treasury Savings Notes, Series D , offered
under Department Circular No. 833, dated A ugust 17, 1948, as amended, is hereby terminated at the close
o f business May 14, 1951.
Sec. 331.3. D uration o f offer.— The sale o f notes o f Series A offered by this circular will begin on
M ay 15, 1951, and will continue until terminated by the Secretary o f the Treasury.
Sec. 331.4. Definitions.— (a ) The w ord “ m onth” as used herein means the period from and including
the 15th day o f any one calendar month to but not including the 15th day o f the next succeeding month.
(b ) The words “ issue date” mean the date as o f which a note is issued and w ill always be the 15th
day o f a calendar month.
( c ) The words “ interest accrual date” or “ accrual date” mean the date upon which a m onth’s
interest accrues on a note, the first accrual date being the 15th day o f the calendar month next follow ing
the issue date.
Subpart B :

D E SC R IPT IO N OF NOTES

Sec. 331.5. General.— Treasury Savings Notes, Series A , will in each instance be dated as o f the 15th
day o f a calendar month. The issue date will be determined by the day o f the month on which payment at
par and accrued interest, if any, is received and credited by an agency authorized to issue the notes. F or
example, paym ent received and credited on any day during the period from and including May 15, 1951,
to and including June 14, 1951, would result in the issue o f notes dated M ay 15, 1951. They will mature




2

three years from that date and may not be called by the Secretary o f the Treasury fo r redemption before
maturity. A ll notes bearing issue dates within any one calendar year shall constitute a separate series
indicated b y the letter “ A ” followed by the year o f maturity. A t the time o f issue the issuing agency will
inscribe on the face o f each note the name and address o f the owner, will enter the issue date and will
im print its dating stamp (w ith current d ate). The notes w ill be issued in denominations o f $100, $500,
$1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,000. Exchange o f authorized denominations from
higher to lower, but not from lower to higher, may be arranged at any agency that issues Treasury Savings
Notes, Series A.
Sec. 331.6. A cceptan ce fo r taxes or cash redem ption.— I f inscribed in the name o f an individual,
corporation, or other entity paying income, estate or g ift taxes imposed under the Internal Revenue Code,
or laws amendatory or supplementary thereto, the notes w ill be receivable, subject to the provisions of
Section 331.15 o f this circular, at par and accrued interest, in paym ent o f such income, estate or g ift taxes
assessed against the owner or his estate. I f not presented in paym ent o f taxes, or if not inscribed in the
name o f a taxpayer liable to the above-described taxes, and subject to the provisions o f Section 331.16 o f
this circular, the notes will be payable at maturity, or at the ow ner’s option and request they w ill be
redeemable before m aturity at par and accrued interest.
Sec. 331.7. Interest.— Interest on each $1,000 principal amount o f Treasury Savings Notes, Series A ,
w ill accrue monthly on the 15th calendar day o f each month after the issue date on a graduated scale, as
fo llo w s :
First to Sixth months, inclusive........................................................................ $1.20 each month.
Seventh to Tw elfth months, inclu sive..............................................................$1.50 each month.
Thirteenth to Eighteenth months, inclusive............................................... ....$1.60 each month.
Nineteenth to Tw enty-fourth months, inclusive.......................................... $1.70 each month.
Tw enty-fifth to Thirty-sixth months, inclusive......................................... ... $1.80 each month.
The table appended to this circular shows for notes o f each denomination, fo r each consecutive month after
issue date to maturity, (a ) the amount o f interest accrual, (b ) the principal amount o f the note with
accrued interest (cum ulative) added, and ( c ) the approxim ate investment yields. Subject to the p rovi­
sions o f Sections 331.15 and 331.16 hereof, when Treasury Savings Notes, Series A , are to be paid on an
interest accrual date, the payment w ill include interest accruing on that date; otherwise, interest will be
paid only to the interest accrual date next preceding the date o f payment. Interest w ill be paid only with
the principal amount, and w ill not accrue beyond the m aturity date o f the note.
Sec. 331.8. Form s o f inscription.— Treasury Savings Notes, Series A , may be inscribed in the name
o f an individual, corporation, unincorporated association or society, or a fiduciary (including trustees under
a duly established trust where the notes would not be held as security fo r the perform ance o f a duty or
obligation), whether or not the inscribed owner is subject to taxation under the Internal Revenue Code, or
laws amendatory or supplementary thereto. They may also be inscribed in the name o f a town, city, county
or State or other governmental body and in the name o f a partnership, but notes in the name o f a partner­
ship are not acceptable in paym ent o f taxes, since a partnership is not a taxpaying entity under the
Internal Revenue Code. The notes will not be inscribed in the names o f two or more persons as jo in t owners
or coow ners; or in the name o f a public officer, whether or not named as trustee, where the notes w ould in
effect be held as security for the perform ance o f a duty or obligation.
Sec. 331.9. N ontransferability.— The notes may not be transferred in ordinary course; except that
( 1 ) if inscribed in the name o f a married man they m ay be reissued in the name o f his w ife, or if inscribed
in the name o f a married woman they may be reissued in the name o f her husband, upon request o f the
person in whose name the notes are inscribed and the surrender o f the notes to the agency that issued th em ;
(2 ) if inscribed in the name o f a corporation owning more than 50 percent o f the stock, with voting power,
o f another corporation, the notes may be reissued in the name o f the subsidiary upon request o f the corpo­
ration and surrender o f the notes to the agency that issued them ; (3 ) upon the death or disability o f an
individual inscribed owner or the dissolution, consolidation or merger o f a corporation, unincorporated
association or partnership named as owner, reissue or payment m ay be made in accordance with Sections




3

331.22 and 331.23 h ereof; and (4 ) paym ent but not reissue, m ay be made as a result o f legal proceedings as
set forth in Sections 331.24 and 331.25 hereof. The notes may not be hypothecated and no attempted
hypothecation or pledge as security w ill be recognized by the Treasury D epartm ent: P rovided, however,
That the notes may be pledged as collateral for loans from banking institutions and i f title thereto is
acquired by a bank because o f the failure o f a loan to be paid, the notes will be redeemed at par and accrued
interest to the interest accrual date next preceding the date o f such acquisition, unless acquired on an interest
accrual date, on surrender to the agency which issued them, accompanied by p ro o f o f the date o f acquisi­
tion and by request o f the pledgee under power o f attorney given by the pledgor in whose name the notes
are inscribed. The notes will not be transferred to a pledgee. The notes w ill not be acceptable to secure
deposits o f public moneys.
Sec. 331.10. Taxation.— Income derived from the notes shall be subject to all taxes now or hereafter
imposed under the Internal Revenue Code or laws amendatory or supplementary thereto. The notes shall
be subject to estate, inheritance, g ift or other excise taxes, whether Federal or State, but shall be exempt
from all taxation now or hereafter imposed on the principal o r interest thereof by any State, or any o f the
possessions o f the United States, or b y any local taxing authority.

Subpart C :

PU RCH ASE OF NOTES

Sec. 331.11. Official agencies.— In addition to the Treasury Department, the Federal Reserve Banks
and their Branches are hereby designated agencies fo r the issue and redemption o f Treasury Savings Notes,
Series A . The Secretary o f the Treasury, from time to time, in his discretion, may designate other agencies
fo r the issue o f the notes, or fo r accepting applications therefor, or fo r making payments on account o f the
redemption thereof.
Sec. 331.12. A pplications and paym ent.— A pplications will be received b y the Federal Reserve Banks
and Branches and by the Treasurer o f the United States, W ashington, D. C. Banking institutions gener­
ally may submit applications for the account o f customers but only the Federal Reserve Banks, their
Branches and the Treasury Department are authorized to act as official agencies. The use o f an official
application form is desirable but not necessary. Such form s may be obtained upon request from any F ed­
eral Reserve Bank or Branch o r the Treasurer o f the United States. E very application must be accom­
panied by payment in full, at par and accrued interest, if any. The amount o f accrued interest payable
by the purchaser will be com puted at the rate at which interest accrues on the notes ($ 1.20 per month per
$ 1,000 par amount) fo r the actual number o f days fro m but not including the issue date to and including
the date funds are credited to the account o f the Treasurer o f the United States. F o r example, i f funds
are credited on the 20th day o f January the issue date will be January 15, and five d ays’ accrued interest
must be paid b y the purchaser. I f collection is delayed so that credit is not given until Febru ary 15, the
issue date will be February 15, and no accrued interest w ill be collectible. One d a y ’s accrued interest fo r
a thirty-one day period is $0.03871 per $1,000, fo r a thirty day period $0.04 per $1,000, fo r a twenty-nine
day period $0.04138 per $1,000, and fo r a twenty-eight d ay period $0.04286 per $1,000. A n y form o f
exchange, including personal checks, w ill be accepted, subject to collection, and should be drawn to the order
o f the Federal Reserve Bank or the Treasurer o f the United States, as payee, as the case m ay be. A n y
depositary qualified pursuant to the provisions o f Treasury Department Circular No. 92, Revised, as
amended, will be perm itted to make paym ent by credit fo r notes applied fo r on behalf o f itself or its cus­
tomers up to any amount fo r which it shall be qualified in excess o f existing deposits.
Sec. 331.13. Reservations.— The Secretary o f the Treasury reserves the right to reject any applica­
tion in whole or in part, and to refuse to issue or perm it to be issued hereunder any notes in any case or in
any class or classes o f cases i f he deems such action to be in the public interest, and his action in any such
respect shall be final. I f an application is rejected, in whole or in part, any payment received therefor will
be refunded.
Sec. 331.14. D elivery o f notes.— U pon acceptance o f a full-paid application, notes will be duly
inscribed and, unless delivered in person, w ill be delivered, at the risk and expense o f the United States at
the address given by the purchaser, by mail, but only within the United States, its Territories and Island
Possessions, and the Canal Zone. N o deliveries elsewhere will be made.




4

Subpart D :

PR E SE N T A T IO N IN P A Y M E N T OF TA X E S

Sec. 331.15. A t any time after two months from the issue date, during such time and under such
rules and regulations as the Commissioner o f Internal Revenue, with the approval o f the Secretary o f the
Treasury, may prescribe, notes issued hereunder in the name o f a Federal taxpayer, m ay be presented by
such taxpayer, his agent or his estate fo r credit against any income (current and back, personal and cor­
poration taxes, and excess profits taxes) or any estate or g ift taxes (current and back) imposed b y the
Internal Revenue Code, or laws amendatory or supplementary thereto, assessed against the inscribed owner
or his estate. F o r example, a note dated January 15 may be presented fo r credit against taxes due March
15. The notes will be receivable by the Collector at par and accrued interest to the day (bu t no accrual
beyond m aturity) when the taxes are due, if such day falls on the 15th day o f a calendar month, whether the
notes are received on or before that day. I f the taxes are due on any other day o f the month than the 15th,
accrued interest will be credited to the accrual date n ext preceding the day when the taxes are due. Notes
are receivable only in paym ent o f taxes equal to or exceeding the entire value o f the notes, including
accrued interest. The notes must be forw arded to the Collector at the risk and expense o f the owner and,
for his protection, should be forw arded by registered mail, if not presented in person.

Subpart E :

CASH R E D E M PT IO N A T O R B EFO RE M A T U R IT Y

Sec. 331.16. General.— A n y Treasury Savings Note, Series A , not presented in paym ent o f taxes
will be paid at maturity, or, at the option and request o f the owner, and without advance notice, w ill be
redeemed before maturity, at any time after fou r months from the issue date. F o r example, a note dated
January 15 may be redeemed fo r cash on or after M ay 15. I f redemption p rior to m aturity is requested on
an interest accrual date the redemption w ill include interest accruing on that date, otherwise redemption
will be at par and accrued interest to the interest accrual date next preceding the redemption date, except
in the case o f a note inscribed in the name o f a bank that accepts demand deposits, in which case payment,
whether at or before maturity, w ill be made only at par, with a refund o f any accrued interest which may
have been paid at the time o f purchase o f the note. I f a note is acquired b y a banking institution through
forfeiture o f a loan, payment will be made at par and the accrued interest payable as o f the date o f
acquisition.
Sec. 331.17. E xecu tion o f request fo r paym ent.— The owner in whose name the note is inscribed must
appear before one o f the officers authorized by the Secretary o f the Treasury to witness and certify
requests fo r payment, establish his identity, and in the presence o f such officer sign and complete the
request fo r payment appearing on the back o f the note. A fte r the request fo r payment has been executed,
the witnessing officer should execute the certificate provided fo r his use.
Sec. 331.18. Officers authorized to ce rtify requests fo r paym ent.— A ll officers authorized to certify
requests fo r payment o f United States Savings Bonds, as set forth in Treasury Department Circular No.
530, Sixth Revision, as amended, are hereby authorized to certify requests fo r cash redemption o f Treasury
savings notes issued under this circular. Such officers include, among others, United States postmasters,
certain other post office officials, officers o f all banks and trust companies incorporated in the U nited States
or its organized territories, including officers at branches thereof, and commissioned and warrant officers
o f the Arm ed Forces o f the U nited States.
Sec. 331.19. Presentation and surrender.— Notes bearing properly executed requests fo r paym ent must
be presented and surrendered to any Federal Reserve Bank or Branch or to the Treasurer o f the United
States, W ashington 25, D. C., at the expense and risk o f the owner. F o r the ow n er’s protection, notes
should be forw arded b y registered mail, if not presented in person.
Sec. 331.20. Partial redem ption.— Partial cash redemption o f a note, corresponding to an authorized
denomination, may be made in the same manner as fu ll cash redemption, appropriate changes being made in
the request fo r payment. In case o f partial redem ption o f a note, the remainder will be reissued in the
same name and with the same issue date as the note surrendered.




5

Sec. 331.21. P aym ent.— Paym ent o f any note, either at m aturity or on redem ption before maturity,
w ill be made by any F ederal Reserve Bank or B ranch or the Treasurer o f the United States, follow ing
clearance with the agency o f issue, which w ill be obtained by the agency to which the note is surrendered.
Unless otherwise instructed, paym ent w ill be made by check drawn to the order o f the owner, and mailed to
the address given in his request fo r payment.

Subpart F :

P A Y M E N T O R REISSUE TO O T H E R T H A N IN SC R IB E D OW N ER

Sec. 331.22. D eath or disability.— In case o f the death or disability o f an individual owner, if the notes
are not to be presented in paym ent o f taxes, payment will be made to the duly constituted representative o f
his estate, or they may be reissued to one or more o f his heirs or legatees upon satisfactory p ro o f o f their
righ t; but no reissue w ill be made in two names join tly or as coowners.
Sec. 331.23. Dissolution or m erger o f corporations, etc.— I f a corporation or unincorporated body in
whose name notes are inscribed is dissolved, consolidated, merged or otherwise changes its organization, the
notes may be paid to, or reissued in the name of, those persons or organizations law fu lly entitled to the
assets o f such corporation or body by reason o f such changes in organization.
Sec. 331.24. B an kru ptcy.— I f an owner o f notes is declared bankrupt or insolvent, paym ent, but not
reissue, will be made to the duly qualified trustee, receiver or similar representative i f the notes are sub­
mitted with satisfactory p roof o f his appointment and qualification.
Sec. 331.25. C red itors’ rights.— Payment, but n ot reissue, w ill be made as a result o f ju d icial p ro­
ceedings in a court o f competent jurisdiction, if the notes are submitted with p rop er p roof o f such p ro­
ceedings and their finality.
Sec. 331.26. Instructions and inform ation.— B efore executing the request fo r paym ent o r submitting
the notes under the provisions o f this subpart, instructions should be obtained from a Federal Reserve Bank
or Branch or from the Treasury Department, D ivision o f Loans and Currency, W ashington 25, D. C.

Snbpart G :

G E N E R A L PROVISION S

Sec. 331.27. Regulations.— E xcept as provided in this circular, the notes issued hereunder w ill be
subject to the general regulations o f the Treasury Department, now or hereafter prescribed, governing
bonds and notes o f the U nited States; the regulations currently in force are contained in Department
Circular No. 300, as amended.
Sec. 331.28. Loss, th eft or destruction.— In case o f the loss, th eft or destruction o f a savings note
immediate notice (w hich should include a fu ll description o f the note) should be given the agency which
issued the note and instructions should be requested as to the procedure necessary to secure a duplicate.
Sec. 331.29. Fiscal agents.— Federal Reserve Banks and their Branches, as fiscal agents o f the United
States, are authorized to perform such services or acts as m ay be appropriate and necessary under the
provisions o f this circular and under any instructions given by the Secretary o f the Treasury, and they may
issue interim receipts pending delivery o f the definitive notes.
Sec. 331.30. Am endm ents.— The Secretary o f the Treasury m ay at any time or from time to time sup­
plement or amend the terms o f this circular, or o f any amendments or supplements thereto, and may at any
time or from time to time prescribe amendatory rules and regulations governing the offering o f the notes,
inform ation as to which w ill prom ptly be furnished to the Federal Reserve Banks.




E. H. FO LEY,
A ctin g Secretary o f the Treasury.

T R E A S U R Y SAVIN G S NOTES— SERIES A
T A B L E O F T A X -P A Y M E N T O R R E D E M P TIO N V A L U E S A N D IN V E ST M E N T Y IE LD S
T h e ta b le b e lo w sh o w s f o r e a c h m o n th fr o m

is s u e d a t e t o m a t u r it y d a t e th e a m o u n t o f in t e r e s t a c c r u a l ; th e p r i n c ip a l a m o u n t

w it h a c c r u e d in te r e s t a d d e d , f o r n o te s o f e a c h d e n o m in a t io n ; th e a p p r o x im a t e in v e s t m e n t y i e ld o n t h e p a r v a lu e f r o m
th e 1 5 th o f e a ch m o n th f o llo w in g t h e is su e d a t e ;

a n d th e a p p ro x im a te

in v e s tm e n t y ie ld

is su e d a te to

o n th e c u r r e n t r e d e m p t io n v a lu e f r o m

th e

1 5 th o f th e m o n th in d ic a te d t o th e m a t u r it y d a te .
N o te :

T h e w ord “ m on th ”

a s u s e d in th is t a b le m e a n s th e p e r io d fr o m a n d in c lu d in g th e 1 5 th d a y o f a n y o n e c a le n d a r m o n th

t o b u t n o t in c lu d in g th e 1 5 th d a y o f th e n e x t s u c c e e d in g m o n th .

Par value

$100.00

Amount of interest accrual
each month a f t e r issue month

$500.00

$1,000.00

$5,000.00

$10,000.00

$100,000.00

Tax-payment or redemption values during each monthly period

Interest accrues at rate of
$ 1.20 per month per $ 1,000
par amount:
First month .................. $100.12
Second month .............. 100.24
Third month .................. 100.36
Fourth m o n t h ................ 100.48
Fifth month .................. 100.60
Sixth month .................. 100.72
Interest accrues at rate of
$1.50 per month per $1,000
par amount:
Seventh m o n t h ..............
100.87
101.02
Eighth month ................
Ninth m o n t h ..................
101.17
Tenth month ................ 101.32
Eleventh month ............
101.47
Twelfth m o n t h ..............
101.62

$500,000.00

a fter

$1,000,000.00

issue month1

Approximate
investment
Approximate
yield on
investment
current taxyield on par
payment or
value from
redemption
issue date to values from
beginning of beginning of
each monthly each monthly
period
period to
thereafter
maturity

P ercen t

P ercen t

$500.60
501.20
501.80
502.40
503.00
503.60

$1,001.20
1,002.40
1,003.60
1,004.80
1,006.00
1,007.20

$5,006.00
5,012.00
5,018.00
5,024.00
5,030.00
5,036.00

$10,012.00
10,024.00
10,036.00
10,048.00
10,060.00
10,072.00

$100,120.00
100,240.00
100,360.00
100,480.00
100,600.00
100,720.00

$500,600.00
501,200.00
501,800.00
502,400.00
503,000.00
503,600.00

$1,001,200.00
1,002,400.00
1,003,600.00
1,004,800.00
1,006.000.00
1,007,200.00

1.44
1.44
1.44
1.44
1.44
1.44

1.88*
1.89
1.90
1.91
1.93
1.95
1.96

504.35
505.10
505.85
506.60
507.35
508.10

1,008.70
1,010.20
1,011.70
1,013.20
1.014.70
1,016.20

5,043.50
5,051.00
5,058.50
5,066.00
5,073.50
5,081.00

10,087.00
10,102.00
10,117.00
10,132.00
10,147.00
10,162.00

100,870.00
101,020.00
101,170.00
101,320.00
101,470.00
101,620.00

504,350.00
505,100.00
505,850.00
506,600.00
507,350.00
508,100.00

1,008,700.00
1,010,200.00
1,011,700.00
1,013,200.00
1,014,700.00
1,016,200.00

1.49
1.53
1.56
1.58
1.60
1.61

1.97
1.97
1.98
1.99
2.00
2.01

Interest accrues at rate of
$ 1.60 per month per $ 1,000
par amount:
Thirteenth month ........
Fourteenth month . . . .
Fifteenth month ..........
Sixteenth month ..........
Seventeenth m o n t h ----Eighteenth month ........

101.78
101.94
102.10
102.26
102.42
102.58

508.90
509.70
510.50
511.30
512.10
512.90

1,017.80
1,019.40
1,021.00
1,022.60
1,024.20
1,025.80

5,089.00
5,097.00
5,105.00
5,113.00
5,121.00
5,129.00

10,178.00
10,194.00
10,210.00
10,226.00
10,242.00
10,258.00

101,780.00
101,940.00
102,100.00
102,260.00
102,420.00
102,580.00

508,900.00
509,700.00
510,500.00
511,300.00
512,100.00
512,900.00

1,017,800.00
1,019,400.00
1,021,000.00
1,022,600.00
1,024,200.00
1,025,800.00

1.64
1.65
1.67
1.68
1.70
1.71

2.01
2.02
2.02
2.03
2.04
2.05

Interest accrues at rate of
$1.70 per month per $1,000
par amount:
Nineteenth month ........
Twentieth m o n t h ..........
Twenty-flrst m o n t h ___
Twenty-second month . .
Twenty-third month . . .
Twenty-fourth month ..

102.75
102.92
103.09
103.26
103.43
103.60

513.75
514.60
515.45
516.30
517.15
518.00

1,027.50
1,029.20
1,030.90
1,032.60
1,034.30
1,036.00

5,137.50
5,146.00
5,154.50
5,163.00
5,171.50
5,180.00

10,275.00
10,292.00
10,309.00
10,326.00
10,343.00
10,360.00

102,750.00
102,920.00
103,090.00
103,260.00
103,430.00
103,600.00

513,750.00
514,600.00
515,450.00
516,300.00
517,150.00
518,000.00

1,027,500.00
1,029,200.00
1,030,900.00
1,032,600.00
1,034,300.00
1,036,000.00

1.72
1.73
1.75
1.76
1.77
1.78

2.05
2.05
2.06
2.06
2.07
2.07

Interest accrues at rate of
$1.80 per month per $1,000
par amount:
Twenty-fifth month . . .
Twenty-sixth month . . .
Twenty-seventh month .
Twenty-eighth m onth. . .
Twenty-ninth month . .
Thirtieth month ..........
Thirty-first month . . . .
Thirty-second month ..
Thirty-third month . . .
Thirty-fourth month . .
Thirty-fifth month ___

103.78
103.96
104.14
104.32
104.50
104.68
104.86
105.04
105.22
105.40
105.58

518.90
519.80
520.70
521.60
522.50
523.40
524.30
525.20
526.10
527.00
527.90

1,037.80
1,039.60
1,041.40
1,043.20
1,045.00
1,046.80
1,048.60
1,050.40
1,052.20
1,054.00
1,055.80

5,189.00
5,198.00
5,207.00
5,216.00
5,225.00
5,234.00
5,243.00
5,252.00
5,261.00
5,270.00
5,279.00

10,378.00
10,396.00
10,414.00
10,432.00
10,450.00
10,468.00
10,486.00
10,504.00
10,522.00
10,540.00
10,558.00

103,780.00
103,960.00
104,140.00
104,320.00
104,500.00
104.680.00
104.860.00
105.040.00
105,220.00
105,400.00
105,580.00

518,900.00
519,800.00
520,700.00
521,600.00
522,500.00
523,400.00
524,300.00
525,200.00
526,100.00
527,000.00
527,900.00

1,037,800.00
1,039,600.00
1,041,400.00
1,043,200.00
1,045,000.00
1,046,800.00
1,048.600.00
1,050,400.00
1,052,200.00
1,054,000.00
1,055,800.00

1.79
1.80
1.81
1.82
1.83
1.84
1.85
1.85
1.86
1.86
1.87

2.07
2.07
2.07
2.07
2.07
2.06
2.06
2.06
2.06
2.06
2.05

105.76

528.80

1,057.60

5,288.00

10,576.00

105,760.00

528,800.00

1,057,600.00

1.88

Maturity ..............

‘ Not acceptable in payment o f taxes until after the second month from issue date, and not redeemable for cash until after the fourth month from issue date.
* Approximate investment yield for entire period from issue date to maturity.




7

G.B. 499A

APPLICATION FOR

UNITED STATES OF AMERICA
TREASURY SAVINGS NOTES, SERIES A
T O : FEDERAL RESERVE BANK OF N EW v q t >K,
FISCAL AGEN T OF TH E U N ITED STATES,
33 L IB ER TY STREET, N EW Y ORK 45, N. Y.
(GOVERNM EN T BOND DEPARTM EN T)

D ate:

Pursuant to the terms o f Treasury Department Circular N o. 889, dated M ay 10, 1951, the undersigned submits this application fo r the purchase
o f Treasury Savings N otes, Series A .
PAR AMOUNT AN D PAYM ENT

P ar amount o f n otes..............................................................

Payment is being made in the manner indicated b e lo w :

A ccrued interest (S e e reverse side)

□

............................ days @ $....................................per $1,000

B y credit to Treasury T a x and Loan A ccou n t
(F o r use by “ Qualified Special D epositaries" on ly.)

The election to pay by credit to Treasury Tax and Loan Account will be
deemed a certification by the undersigned Special Depositary that the full
amount o f payment due on this application has been deposited on the date
hereof to the credit of the Federal Reserve Bank of New York, as fiscal agent
of the United States, Treasury Tax and Loan Account, under the terms of
Treasury Department Circular No. 92 as amended.

T O T A L A M O U N T O F P A Y M E N T .........................

INSCRIPTION
(P lea se type or print below the name and address to be inscribed on the n otes.)

□
□
□

B y charge to our Reserve A ccount, w hich is hereby authorized
(F o r use by member banks only)

B y cash herewith

B y check herewith

DENOMINATIONS
T h e notes are to be issued in the denominations indicated b e lo w :

( F o r information concerning form s o f inscription, se e reverse side.)

N um ber
of
P ieces

D enom ­
inations

Total
P a r Am ount

D o N ot Use

100

DISPOSITION

500

T he notes are to be delivered as indicated b elow :

1,000
□

M ail to ow ner at address inscribed on notes
5 ,0 0 0

□

M ail to the bank o r security dealer submitting this application

□

D eliver over counter to the bank or security dealer submitting this
application

□

(S pecia l instructions)

10,000
100,000
5 0 0 ,0 0 0

1, 000,000
TOTALS

(N o t part o f application)

DELIVERY RECEIPT
Received from FEDERAL RESERVE B A N K OF N EW YORK
Treasury Savings Notes, Series A , o f the description and in the
amount indicated above.

Signature o f
Purchaser......
( N ot required when application is submitted on behalf o f the
' purchaser by a bank or security dealer.)

Application
Subm itted by.
(N a m e o f Bank or S ecurity D ealer)

Subscriber..
( S treet address)
B y.
( C ity and State)
D a te.............................

B y.
G .B . 499 A -50M -5 -51

R eceived



( Official Signature R equired)

Checked

Recorded

N o te (s ) Examined

(T itle )




P E R IO D F O R W H IC H A C C R U E D IN TE R E ST M U ST BE P A ID
E very application must be accompanied by payment in full, at par and accrued interest, if
any. T h e amount o f accrued interest payable by the purchaser w ill be com puted at the rate at
w hich interest accrues on the notes ($1.20 per month per $1,000 par am ount) f o r the actual
number o f days from but not including the issue date to and including the date on w hich payment
is made in cash or other funds immediately available to the Federal Reserve Bank o f N ew Y ork .
F o r exam ple, if the funds fo r payment are to be available to the Federal Reserve Bank of
N ew Y o r k on the 20th day o f January, the issue date will be January 15, and 5 days’ accrued
interest must be paid b y the purchaser. I f a purchase is made and the funds are to be available
on the 15th day o f a month (the issue d a te), there is no accrued interest to be included in
the payment.
I f payment is made by a check drawn to the order o f the Federal Reserve Bank of N ew
Y ork , the funds w ill be deemed available, fo r the purpose o f com puting the period f o r which
accrued interest must be paid, on the day on which credit w ould have been given for the check
under our time schedules (O perating Circulars N os. 5 and 6 ) if the check had been sent to us
fo r collection.
R A T E OF IN TE R E ST A C C R U A L
T h e follow in g tabulation sets forth the daily rates per $1,000 o f par value which the
T reasury Department has prescribed for use in calculating the accrued interest to be paid
in connection with purchases o f Treasury Savings N otes, Series A :
N um ber o f days in the period
in which purchase is made

Rate per day per $1,000
to be collected

31

$0.03871

30

0.04

29

0.04138

28

0.04286

FO RM S OF IN SC R IPTIO N
T reasury Savings Notes, Series A , may be inscribed in the name o f an individual, corpora­
tion, unincorporated association or society, or a fiduciary (including trustees under a duly
established trust where the notes w ould not be held as security for the perform ance o f a duty or
ob liga tion ), whether or not the inscribed ow ner is subject to taxation under the Internal Revenue
Code, or laws amendatory or supplementary thereto. T h ey m ay also be inscribed in the name
o f a tow n, city, county or State or other governmental body and in the name o f a partnership,
but notes in the name o f a partnership are not acceptable in payment o f taxes, since a partnership
is not a taxpaying entity under the Internal Revenue Code. T he notes w ill not be inscribed in
the names o f tw o or m ore persons as join t owners or coow n ers; or in the name o f a public
officer, whether or not named as trustee, where the notes w ould in effect be held as security for
the perform ance o f a duty or obligation.

a* 37t y

E A S T E R N IN S U R A N C E
V O L U N T A R Y C R E D IT R E S T R A IN T C O M M IT T E E
Created pursuant to the Program for Voluntary Credit Restraint
authorized by the Defense Production Act of 1950
33

LIBERTY

STREET

N E W Y O R K 4 5 . N. Y.

M ay 14, 1951.

T o the C h ief E xecu tive Officer o f the
L i f e Insurance Company A d d ressed :

W e wish to call your attention to Bulletin N o. 3 o f the national V oluntary Credit Restraint
Committee regarding the postponem ent o f State and local governm ent borrow ing, released
M ay 7, 1951, and to the letter b y M r. Charles E. W ilson, D irector, Office o f D efense M obili­
zation, sent M ay 7, 1951 to the G overnors o f all States and to officials o f municipalities, seek­
ing their cooperation in postponing State and local governm ent borrow ing.
W e heartily endorse the principles set fo rth in the bulletin and letter.
W e wish to emphasize the follow in g paragraphs o f the bulletin:
It is sometimes difficult in individual cases to differentiate essential from nonessential expendi­
tures and to sort out those programs which should be undertaken immediately from those which it
would be desirable to postpone. Therefore, certain tests are suggested to financing institutions coop­
erating in the V oluntary Credit Restraint Program to be used in arriving at financing decisions in
discussions with municipal authorities.
S oldiers’ bonus issues are inflationary under tod a y ’s conditions. They add to the spending power
o f the public through the creation o f credit. It would seem desirable to postpone such issues until a
time when immediate purchasing power is needed to counteract unemployment and when it might be
more beneficial to the veteran.
A m ong the types o f State and local governm ent capital outlays fo r which, in the judgm ent of
the Committee, the financing should be postponed are:
1. Replacement o f any existing facilities that can continue to perform their function during
the emergency period.
2. Construction o f facilities o f the types not recommended by the Defense Production Adm inis­
tration— such as recreational facilities and w ar memorials.
3. A cquisition o f sites or rights-of-way not immediately needed.
4. Purchase o f privately-owned utilities by municipalities, which involves borrow ing to replace
equity capital.




F

razar

B.

W

il d e ,

Chairman.

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