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FE D E RA L RE SE R V E BANK
O F NEW YORK
Fiscal Agent of the United States
r Circular N o. 3 8 1 0 T
L January 10, 1952 J

UN ITED STATES SAVINGS BONDS, SERIES E

Revision of Operating Circular No. 20

To All Issuing Agents in the Second Federal Reserve District
Qualified for Sale o f United States Savings Bonds, Series E :

W e transmit a copy o f our Operating Circular No. 20, Revised
January 10,1952. Apart from certain editorial revisions that have been
made to clarify provisions o f the earlier circular or bring it up to date,
there are two additional changes. One is the incorporation o f new
matter contained in paragraphs 25 and 26, regarding the procedure to
be followed in reporting, and remitting the proceeds of, sales of Savings
Bonds o f Series E. The other change is the revision o f paragraph 37 to
make it conform to the new postal law and regulations, effective January
1, 1952, which have the effect o f changing the form er limits on size and
weight o f parcels mailed to this Bank from a first-class post office.
Additional copies of the revised operating circular will be furnished
upon request.




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U N IT E D S T A T E S S A V IN G S B O N D S , S E R IE S E
Instructions to Issuing Agents

To All Issuing Agents in the Second Federal Reserve District
Qualified fo r Sale o f United States Savings Bonds, Series E :

The Secretary of the Treasury has provided that issuing agents
qualified for sale of United States Savings Bonds, Series E, must
follow all regulations and instructions issued by the Secretary of the
Treasury directly or through the Federal Reserve Bank of the district
as fiscal agent of the United States, covering the sale, issue, inscription
and validation of the bonds and the disposition of registration stubs.
In addition to the regulations promulgated by the Secretary of the
Treasury in Department Circular No. 530, Sixth Revision, dated
February 13, 1945, as amended, the instructions contained in this
circular are issued by this Bank as fiscal agent of the United States for
the guidance of issuing agents in the Second Federal Reserve District.
A u th ority o f issuing agents

1. All organizations qualified as issuing agents are authorized to
sell and issue Series E bonds. Employers qualified as issuing agents
for sale of Series E bonds to employees participating in the payroll
allotment plan are also authorized to sell and issue bonds to persons
not participating in the plan.
2. Although only the Federal Reserve Banks and Branches and
the Treasury Department are authorized to issue United States Savings
Bonds of Series F and Series G, any issuing agent is authorized to
receive applications for the purchase of bonds of such series and to
forward the applications and payment therefor to us in order that the
bonds may be issued. Application forms to be used in subscribing for
bonds of Series F and Series G will be furnished to issuing agents
upon request.
Sale of bonds— receipt o f checks tendered in paym ent

3. Regulations of the Treasury Department authorize issuing
agents to sell Series E bonds for cash and make no provision for the
sale of such bonds except on a cash basis. The following instructions
should be observed by issuing agents when checks are tendered in
payment for bonds:
(a ) Each issuing agent should establish a w aiting period after
deposit o f a check b efore delivery o f the bond is effected, to
allow fo r return o f the check i f it proves to be uncollectible.




(b ) In the event a bond is delivered b y an agent and the check ten­
dered in paym ent th erefor is subsequently returned unpaid to the
agent, a description o f the bond and a statement o f the fa cts o f
the case should be furnished to us at once. The agent will
be expected to obtain paym ent or have the bond returned
immediately.
( c ) I f the agent obtains either paym ent or the return o f the bond,
a p propria te advice should be forw arded to us prom ptly. I f the
agent does not obtain paym ent o r the return o f the bond after
two requests therefor, the agent’s file o r photostatic co p y thereof
should be forw arded prom ptly to us fo r further action.
(d ) A though fu ll cooperation w ill be given issuing agents, it is not
legally possible f o r the Treasury D epartm ent to waive any rights
it may have to demand reimbursement from issuing agents fo r
any loss w hich may result to the Treasury Departm ent on account
o f bonds issued and delivered b y an agent against a check which
subsequently proves to be uncollectible.

4. Any banking institution which maintains a Treasury Tax and
Loan Account pursuant to Treasury Department Circular No. 92
(Revised), as amended, is authorized to endorse any check payable
to the Treasurer of the United States or to this Bank, as follows:
F o r credit to Treasury T ax and Loan A ccou n t
F ederal Reserve Bank o f New Y ork
F iscal A g en t o f the United States
in paym ent f o r U. S. Governm ent securities
(N am e o f B ank)

and credit the proceeds of such check to its Treasury Tax and Loan
Account in payment for the bonds. Checks drawn in substantially
similar forms, such as to the order of “ Secretary of the Treasury,”
“ United States Treasury,” or “ Federal Reserve Bank,” may be
handled in the same manner. In any such case, the Treasury Tax
and Loan Account should not be credited and the bonds should not
be delivered until the banking institution is satisfied that the check
has been paid in actually and finally collected funds. No other issuing
agent is authorized to endorse and collect checks payable to the
Treasurer of the United States or to this Bank and we will not receive
such checks in remittance for Series E bond stock. Accordingly, if
any such agent should receive such a check in payment for a Series
E bond, the bond should n ot be issued by the agent but the applica­
tion and check should be forw arded to us, or to a bank or trust com­
pany maintaining a Treasury Tax and Loan A ccou n t, in order that
the check may be collected and the bond issued.
Custody of bond stock

5. Issuing agents are expected to have adequate facilities to safe­
guard bond stock in their possession. Agents are responsible for bond
stock furnished to them, and whether they procure insurance or take
other protective measures to guard against the loss of such stock is a




2

matter for their decision. In the absence of negligence, however, and
upon proof of the facts pertaining to a loss, the Treasury Department
may grant relief to an issuing agent for lost, stolen or destroyed
bond stock.
Restrictions and limitations on sale of bonds

6. Only residents of the United States (including its territories,
insular possessions and the Canal Zone), American citizens temporarily
residing abroad, and nonresident aliens employed in the United States
by the Federal government or an agency thereof, may be named as
owners, coowners or designated beneficiaries of Series E bonds; pro­
vided, however, that a nonresident alien (not a citizen of an enemy
nation) may be named as coowner or designated beneficiary, but will
be entitled only to request and receive payment either at or before
maturity.
7. The amount of Series E bonds issued during any one calendar
year (January 1— December 31) after the calendar year 1947 that
may be held by any one person at any one time is limited to $10,000
(maturity value).* Additional holdings are permitted, however, in
certain circumstances where bonds are registered in coownership form.
In the case of Series E bonds so registered, no excess exists if in a
particular group of coowners the holdings are such that the entire
amount held can be allocated among the several coowners without
apportioning an aggregate amount in excess of $10,000 (maturity
value) to any one person, including any amount chargeable to that
person individually. For example, if a married man with two children
has already purchased in 1951 $10,000 maturity value of Series E
bonds registered in his own name, and his wife and children are not
named as the registered owners or eoowners of any Series E bonds
issued in 1951, he may purchase an additional $30,000 maturity value
of such bonds registered as follows: $10,000 in his name with his wife
as coowner, $10,000 in his name with one child as coowner, and $10,000
in his name with the other child as coowner. In these circumstances,
the man as the sole owner of $10,000 maturity value and as a coowner
of $30,000 maturity value of bonds would be entitled under the regula­
tions to redeem all or part of such bonds without obtaining the signa­
ture of any of the other coowners.
Forms

8. The forms referred to below should be used by issuing agents
in requisitioning Series E bonds, in remitting for such bonds and in
returning stubs and spoiled bonds. (Supplies of these forms as they
are needed may be obtained from this Bank by ordering them on
Form G.B. 350.) Each of the forms forwarded to us by an issuing
*
The lim itation on holdings o f Series E bonds fo r the calendar year 1947 and
earlier years was $5,000 (m atu rity v a lu e). In com puting the amount o f Series E
bonds issued during any calendar year, there need not be taken into account bonds
purchased with the proceeds o f matured bonds o f Series A or Series C-1938,
Series D-1939, Series D-1940, and Series D-1941 registered in the name o f the same
individual as owner or coowner.




3

agent should be executed by an officer or employee o f the issuing
agent previously certified to us by the issuing agent (on Form G.B.
379 entitled “ Official Signatures” ) as authorized to issue Series E
bonds on its behalf.
Requisition for bonds
9. Issuing agents may obtain unissued Series E bonds from this
Bank by submitting a requisition fo r bond stock on Form G.B. 1786.
Paym ent in fu ll o f the issue price o f the bonds desired must accompany
requisitions submitted by agents which have agreed to pay in advance
fo r bond stock.
10. Series E bonds are prepared in three different registration
stub assemblies, designated types A , B, and C. Type A is assembled
in such a manner that by inserting carbon paper between the bond
and the stubs the inscription may be made on the bond and both stubs
in the same operation. T ype B is designed for use in certain addressing
machines and in other methods o f inscription where carbon paper is
not used. T ype C is designed fo r use in addressing machines and
consists o f a bond and a detached original registration stub. T ype C
is issued in denominations o f $25, $50, $100, and $200 only. Issuing
agents should specify in the space provided on the requisition form
the type o f bonds desired.
Inscribing bonds
11.

(a ) W henever possible, a typew riter or addressing machine should
be used to inscribe bonds.
(b ) The name and post office address (including postal unit number,
i f an y) o f the registered owner should be inscribed in the space
provided in the center o f the bond and stubs. I f the bond is to be
mailed in a window envelope, the name and address o f the
registered owner should be placed so that it w ill appear properly
in the window.
(c ) The issue date (m onth and year on ly) should be inscribed in the
space provided in the u pper right-hand portion o f the bond.
Each bond should be dated as o f the first day o f the month in
which fu ll paym en t o f the issue price is received by the issuing
agent.
(d ) The name o f the issuing agent and the date on which the bond is
inscribed should be im printed in the space indicated b y the circle
on the bond and stubs, using the stamp furnished by us f o r this
purpose.

12. Care should be exercised in inscribing bonds. Erasures or
alterations on a bond are not perm itted. I f an error is made in the
inscription, the bond and both stubs should be marked “ Spoiled,” the
issuing agent’s stamp impressed thereon, and a new bond issued.
Spoiled bonds should be returned to us as provided below under the
heading “ Spoiled B on ds.”




4

Authorized forms of inscription

13.
Series E bonds may be registered only in the names o f natural
persons (i.e., individuals) in their own right, in one o f the follow ing
fo rm s:
O ne

P erson

(a ) In the name o f one person, f o r exam ple:
John A . Jones
751 E ast M ain Street
B lankville 2, New Y ork
Two

P ersons

(as

Coow n ers)

(b ) In the names o f tw o (bu t only tw o) persons, f o r exam ple:
John A . Jones
751 East M ain Street
Blankville 2, New Y ork
o r M rs. E lla S. Jones
O ne

P erson

(w ith

O ne

B e n e fic ia r y )

(c ) In the name o f one person, payable on death to one (bu t not
m ore than on e) designated person as beneficiary, f o r exam ple:
Joh n A . Jones
751 East M ain Street
Blankville 2, New Y ork
Payable on death to
M iss M ary E . Jones
I f it is desired that, u pon the death o f the owner, a bond revert
to the United States as a donation, it m ay be registered in the
name o f the ow ner with the Treasurer o f the United States
named as beneficiary.
M in o r

(d ) In the name o f a m inor (whether o r not under legal guardian­
sh ip ) in any o f the foregoin g form s su bject to the follow in g
con dition s:
( i) B onds purchased as a g ift to a m inor m ay be registered
in his name as owner, coow ner or beneficiary.
(ii) Bonds purchased by a m inor from his wages, earnings
or other money in his possession may be registered in his
name and he m ay designate a coow ner or beneficiary.
(iii) Bonds purchased by a parent or guardian with funds
already belonging to a minor must be registered in the
m inor’s name alone w ithout the addition o f a coowner or
beneficiary.
(iv ) In any case in which a guardian o f the estate o f a minor
has been appointed by a court o f com petent jurisdiction
o r has otherwise legally qualified, ap propriate words,
such as “ a m inor under legal guardianship,” should be
added after the name o f such minor, f o r ex a m p le:
Charles E . Brow n, a m inor under legal guardianship
o f H enry Smith
4630 W . Grand Avenue
Blankville 2, New Y ork




In such cases, registration in the form “ H enry Smith,
legal guardian o f Charles E . Brow n, a m inor” is not
permitted.
5

14. The full name of the owner and that of the coowner or benefi­
ciary, if any, should be used and should be the name by which the
person is ordinarily known and under which he does business; if there
are two given names, the initial of one may be used, or if a person is
habitually known and does business by only the initials of his given
names, registration may be in such form. In the case of women, the
name must be preceded by “ Miss” or “ Mrs.” and a married woman’s
own given name should be used, not that of her husband, for example,
“ Mrs. Mary A . Jones,” not “ Mrs. Frank B. Jones” ; the use of initials
only for both given names of a married woman is not advisable.
15. In registering bonds, issuing agents should try to make sure
that the name of the person to be used in the registration cor­
responds exactly with the name by which such person has been
described as owner, coowner or beneficiary in the registration of bonds
previously issued.
16. It is permissible for employers issuing bonds to employees to
place on the bond a payroll number or other identifying symbol pro­
vided such number or symbol is clearly separated from the remainder
of the inscription.
17. Series E bonds may not be registered in the names of corpora­
tions, unincorporated associations, partnerships, fiduciaries, or in any
form other than those given above. Bonds should not be registered in
the name of a person under legal disability for reasons other than
minority unless a legal representative of his estate has been appointed.
I f a guardian or similar legal representative of the estate of such a
person has been appointed by a court of competent jurisdiction, or
has otherwise legally qualified, the name of such person should be
followed by appropriate words such as “ an incompetent under legal
guardianship” or “ an incompetent under legal guardianship of
Henry Smith.”
Stub9

18. A legible imprint of the dating stamp is necessary on the
original stubs, which must be returned to this Bank as provided below.
The duplicate (salmon-colored) stubs with types A and B
assemblies may be used by issuing agents for the purpose of obtaining
receipts from the purchasers for the bonds delivered and may be
retained by the agents for their records. Type C assembly has no
duplicate stub.
19. If an American citizen temporarily residing abroad is named
as owner of a Series E bond and his foreign address is given in the
registration, the issuing agent should certify on the reverse side of
the original stub of the bond that such owner is an American citizen
temporarily residing abroad.
20. The original stubs are specially prepared and punched so that
they may be counted, sorted, and listed by the use of mechanical equip­
ment. Stubs which have been damaged as the result of folding, tear­
ing. or perforating cannot be counted, sorted, or tabulated mechani­
cally, and issuing agents are requested, therefore, to see that stubs
are not folded, pinned, stapled, d ip p ed , or mutilated in any manner.




S p o ile d b o n d s

21. Whenever an error has been made in inscribing a bond and the
error has been detected before the bond has been delivered, the
incorrect bond and original stub should be marked “ Spoiled,” the
issuing agent’s stamp impressed thereon, and a new bond issued. The
spoiled bond and the original stub should be returned to this Bank
with Form G.B. 1789, executed in duplicate.
22. The stubs should not be stapled, clipped, or in any manner
affixed to the related bonds, but should be grouped separately and
assembled in the same order as the spoiled bonds returned.
23. If an error made in inscribing a bond is not detected until
after the stub has been forwarded to us, the issuing agent must not
issue a new bond to make the correction. The incorrectly inscribed
bond should be obtained from the owner and sent to us with a letter
from the issuing agent explaining the cause of the error and stating
the correct inscription. A new bond with the correct inscription will
be issued by us and delivered in accordance with the instructions of
the issuing agent.

R eport o f sales and remittance fo r bonds sold

24. Each issuing agent should submit to this Bank reports of sales
on Form G.B. 1787, in duplicate, accompanied by the original stubs
from the bonds reported sold. Issuing agents which pay in advance
for bond stock should disregard references on Form G.B. 1787 to
method of payment for bonds sold.
25. All banking institutions should deposit the proceeds of sales
of bonds in a deposit account to be known as “ Series E, Bond
Account.” The balance in this account should be remitted at least
once a week, unless a more frequent remittance is desirable in order
to replenish stock. However, any incorporated bank or trust company,
qualified as a special depositary under the provisions of Treasury
Department Circular No. 92, may make payment of the proceeds of
bonds sold by credit to its Treasury Tax and Loan Account. A
certificate of advice of each credit to the Treasury Tax and Loan
Account should be executed on Form G.B. 345 and sent to this Bank
together with the report of sales (Form G.B. 1787), as described in
paragraph 24.
26. Qualified issuing agents, other than banking institutions,
which do not pay in advance for bond stock should deposit the pro­
ceeds of sales of bonds in a separate bank account and should keep
the proceeds segregated from any of their other funds. These agents
should report, and remit the entire proceeds of, sales of bonds at
least once a week.
27. United States Savings Stamps received by issuing agents in
exchange for bonds should be presented by them to the post office
for redemption.




7

28.
A ll remittances and shipments o f stubs or spoiled bonds should
be addressed as fo llo w s :
Federal Reserve Bank o f New York
Savings B ond Department
Federal Reserve P. 0 . Station
New Y ork 45, N. Y .

Original delivery o f bonds by mail
29. Original delivery o f Savings Bonds to owners by authorized
issuing agents may be made as ordinary first class mail, without pay­
ment o f postage, in special penalty envelopes with distinctive markings
to indicate the character o f the contents. Special penalty envelopes
to be used for this purpose will be furnished to issuing agents by this
Bank upon written request specifying whether plain or window
envelopes are desired. Such envelopes may not be obtained in any
other manner.
30. The follow in g instructions for the use o f special penalty
envelopes must be carefully observed b y all agents:
(a ) Deliveries o f bonds b y m ail in special envelopes must be
restricted to those cases where personal delivery either is not
practicable or is inadvisable.
(b ) The name and return address o f the issuing agent must be
printed or stamped in the blank space in the corner card on the
envelopes over the w ords “ Authorized Issuing A gent.”
( c ) The special envelopes may be used only fo r the pu rpose provided.
Attention is directed to the penalty o f $300 provided fo r in
cases o f im proper use o f penalty envelopes. The P ost Office
D epartm ent has ruled that the envelopes may not be used to mail
matter other than bonds even though postage is paid, but that
there is n o objection to the enclosure as penalty matter o f a
letter o f transmittal describing the contents or containing
in form ation as to the condition o f an em ployee’s bond account
under the payroll allotm ent plan. F irm advertising material even
though relating largely to savings bond campaigns should not be
enclosed in p en alty envelopes.
(d ) The utmost care should be used in enclosing bonds in envelopes
and in effecting delivery o f the bonds to the local post office.
They should not be deposited in an ordinary m ail b ox, since this
w ould not insure the special handling o f the envelopes which is
expected when they are delivered directly to the post office.
A gen ts are not required to obtain receipts evidencing delivery
to the post office.
(e ) The Governm ent Losses in Shipm ent A ct, as amended, is a p p li­
cable to shipments o f inscribed bonds in special penalty
envelopes, and claims f o r relief in the event o f losses in ship­
ment m ay be made as provided in such act and the regulations
issued thereunder. N o reports o f shipments w ill be required
from issuing agents, n or w ill it he necessary to mail to the
addressees separate notices o f the shipment o f bonds. H ow ever,
agents w ill be expected to maintain ap propriate records o f all




shipments, so that it w ill be possible to p rove the exact extent
o f loss in the event claim is made fo r replacement o f bonds
o r fo r paym ent pursuant to the Governm ent Losses in Shipment
A ct. The Treasury D epartm ent has stated that, in the absence
o f suspicious or unusual circumstances, the application fo r
bonds or a schedule o f purchases showing the requirement
or necessity o f m ailing a bond or bonds, together with (1 ) the
related bond inform ation recorded either on the application,
bond stub o r elsewhere in the records usually maintained by an
agent and (2 ) the evidence o f a u niform method o f handling such
items requiring mailing, w ould provide sufficient p r o o f to
establish the exact extent o f loss. Evidence o f u niform ity o f
procedure and exercise o f due care in handling the bonds at the
time o f enclosure in envelopes, sealing thereof and disposal o f
the items thereafter are the im portant factors. I f a bond mailed
by an issuing agent is not received b y the owner, w e should be
prom ptly notified o f the serial number and name and address
o f the registered ow ner o f the bond, and A v e will furnish
instructions and form s to be used in ap p lyin g fo r the issuance
o f a substitute bond.
( f ) Bonds may be delivered at the risk and expense o f the United
States only in States o f the United States, the D istrict o f
Columbia, H aw aii, Alaska, P uerto R ico and the Canal Zone.
Special penalty envelopes should not, therefore, be used to m ail
bonds to purchasers at addresses outside the areas specified.

Undeliverable bonds
31. E very issuing agent should make diligent effort and exhaust
all available means to make delivery o f bonds. W hen, however, the
bonds have been issued by an issuing agent at the request o f another
person or organization, the necessary effort to deliver the bonds may
be made by such other person or organization.
32. A s used in these instructions, the term “ undeliverable b on d ”
includes any bond issued against payment in full, which remains
undelivered after a diligent effort has been made and all available
means have been exhausted to make delivery, and which—
(a ) remains undelivered in the possession o f an authorized issuing
agent, o r in the possession o f an em ployer which operates a
payroll savings plan but is not an authorized issuing agent, after
six fu ll months from the date on which the bond was issued, as
shown by the issuing agent’s dating stam p; or
(b ) remains undelivered, regardless o f the date o f issue, in the
possession o f an authorized issuing agent, whose qualification is
being terminated.

33. The agent which issued the undeliverable bonds should send
them to this Bank accompanied by an original and the first two
carbon copies o f Treasury Department Form P D 1991 for each
owner represented. F o r this purpose, “ ow n er” refers to the first per­
son named on the bond. W here more than one undeliverable bond is
held for account o f the same owner (regardless o f whether the same
or different coowners or beneficiaries are named on such bonds), all




9

may be included on the same form. The third carbon copy of the form
should be retained by the agent as its record. Sets of Form PD 1991
will be furnished by us upon request.
34. In cases where undeliverable bonds have been issued by the
agent at the request of another person or organization which has
actually endeavored to deliver the bonds, Form PD 1991 may be com­
pleted and executed by such other person or organization on behalf of
the issuing agent. In order that the person or organization may retain
a record in its files, an additional copy of Form PD 1991 will be
available upon request. In all such cases, however, the issuing agent
should forward the bonds to us and should retain the third carbon
copy of Form PD 1991.
35. Undeliverable bonds forwarded to us should not be canceled or
endorsed in any manner. Bonds shipped by an issuing agent, in the
manner provided in paragraphs 37-39 with respect to the shipment to
us of the stubs of bonds sold, spoiled bonds and unissued or excess
stock, will be covered by the Government Losses in Shipment Act, as
amended. The issuing agent will be reimbursed in the amount of
registry and postage fees expended. No request for reimbursement
will be required, since we will determine the amount due and remit
it to the agent.
36. A request from an issuing agent, organization operating a
payroll savings plan, or registered owner for the release and delivery
of a bond which was previously undeliverable should be addressed
to the Treasury D epartm ent, Division o f Loans and C urrency, M er­
chandise M art, Chicago 54, Illinois. The bond will be released by the
Treasury and forwarded to the registered owner if satisfactory evi­
dence is submitted establishing his right to such bond. Such request
should not be addressed to this Bank.
Reimbursement for postage and registry fees
expended by issuing agents

37. Reimbursement will be made for postage and registry fees
expended by issuing agents in returning to us the stubs of bonds sold,
spoiled bonds, unissued or excess stock, and shipping bags, provided
no other matter is included in the same package or envelope and the
following instructions are complied with:
( a ) Packages w eighing 8 ounces or less should be sent as registered
mail, and postage should be paid thereon at the first-class rate in
addition to the registry fee.
(b ) Packages w eighing in excess o f 8 ounces but not more than
the weights specified in parts (e ) and (d ) o f this paragraph
should be sent as insured mail to be treated as registered mail,
and postage should be paid thereon at the fourth-class (parcel
p ost) rate in addition to the insurance fe e on each sh ipping
unit. Each package should bear a notation placed on it by the
sender by rubber stamp im pression, printed slip, or otherwise,
reading as follo w s :




10

“ This article is p u t u p and mailed by authority o f the
P ost Office D epartm ent u pon prepaym ent o f postage at the
fourth-class (p a rcel p o s t) rate and insurance fee. I t must
be recorded and handled as a registered article b y postal
employees. R a m s e y S. B l a c k , Third A ssistant Postm aster
General.”
( c ) Packages in excess o f 8 ounces, mailed at a first-class p ost office,
addressed to this Bank, shall be limited in size to 72 inches in
length and girth combined, and shall weigh not m ore than
40 pounds when this Bank is in the first o r second zone
from the poin t o f shipment, n or m ore than
20 pounds when this Bank is beyond the second zone from
the poin t o f shipment.
(d ) Packages in excess o f 8 ounces, mailed at a p ost office other
than one o f the first class, or on any rural or star route,
addressed to this Bank, shall be limited in size to 100 inches in
length and girth combined, and shall weigh not m ore than 70
pounds.

38. Printed stickers bearing the notation mentioned in paragraph
37(b) will be furnished upon request for the convenience of agents
in complying with these instructions.
39. No request for reimbursement of postage and registry fees in
accordance with the foregoing provisions will be necessary. This
Bank will determine the amount by the postage on each shipment sent
in compliance with these instructions, and will make refund for the
expended fees about every four months.
Loss, theft or destruction of bond stock or bonds

40. In the event of the loss, theft or destruction of unissued bond
stock or of inscribed bonds which have not been delivered to the pur­
chasers thereof, immediate notice of the facts, together with a com­
plete description of the bonds including serial numbers, should be
furnished to this Bank.
41. In the event of the loss, theft, destruction, mutilation or deface­
ment of a bond after delivery to the owner, relief either by the issue
of a duplicate bond or by payment may be had under the provisions
of the Government Losses in Shipment Act, as amended, upon filing
a claim and furnishing proof of loss satisfactory to the Treasury
Department. In any such case immediate notice of the facts, together
with a complete description of the bond (including series, month and
year of issue, serial number and name and address of the registered
owner) should be given by the registered owner to the Treasury
D epartm ent, Division o f Loans and C urrency, Merchandise Mart,
Chicago 54, Illinois.
Effect of this circular on previous circular

42. This circular supersedes our Operating Circular No. 20, dated
October 1, 1948.




A llan

Sprou l,

President.

TABLE OF CONTENTS
of Operating Circular No. 20

Paragraph
T opic

N um ber

A u th ority o f issuing agents ..........................................................................................

1, 2

Sale o f bonds — receipt o f checks tendered in p a y m e n t......................................

3, 4

Custody o f bond stock .....................................................................................................

5

Restrictions and lim itations on sale o f bonds ........................................................

6, 7

Form s

.....................................................................................................................................

8

Requisition fo r bonds .......................................................................................................

9, 10

Inscribing

bonds

.............................................................................................................. 11,12

Authorized form s o f in s c r ip t io n ............................................................... 13, 14, 1 5 ,1 6 ,1 7
Stubs

................................................................................................................................ 18,19, 20

Spoiled bonds ................................................................................................................ 21, 22, 23
Report o f sales and remittance fo r bonds s o l d .................................. 24, 25, 26, 27, 28
O riginal delivery o f bonds by m a i l ............................................................................... 29, 30
Undeliverable bonds ............................................................................... 31, 32, 33, 34, 35, 36
Reimbursement fo r postage and registry fees expended b y issuing agents 37, 38, 39
Loss, th eft or destruction o f bond stock or bonds ............................................... 40,41
E ffect o f this circular on previous circular .............................................................




42

OA- Sk/O

Federal
o f

r e se r v e

<t 4 >

b a n k

New York
N ew Y ork 45, N. Y.

January 10, 1952
DANGEROUS COUNTERFEIT FEDERAL RESERVE NOTES
To a l l Banks in the
Second F ed e ra l R e se rv e D i s t r i c t :

New counterfeit Federal Reserve notes o f the newly redesigned 1950 series in
the $10 and $20 denominations are now appearing in the Second Federal Reserve
D istrict.; Your te lle r s and customers should be warned to scrutinize such Federal
Reserve notes.; While they have appeared thus far only as Federal Reserve Bank o f
Chicago (G) issue, i t would be prudent to assume that similar counterfeits appear­
ing to be issues o f other Federal Reserve Banks may also appear.;
The United States Secret Service describes the counterfeits that are now ap­
pearing as follows:
$10 Denomination
S eries

1950
1950
1950
1950
1950

Check
L etter

E
K
J

L
L

Face
P late

29
57
12
5
1

Back
P la te

1323
1293
1293
129
29

$20 Denomination
S eries

1950
1950
1950
1950
1950

Check
L etter

E
I
E
L
H

Face
P la te

20
3
49
45
4

Back
P la te

676
698
676
680
680

These counterfeits are o f good workmanship and bear the facsim ile signatures
o f Georgia Neese Clark and John W Siyder. They are printed from photo-offset
.:
plates on bond paper o f fa ir quality, but without fiber threads. A specimen
re fle cts a dull gray appearance, the points o f the green Treasury seal are gener­
ally blunt and irregular, and the lettering and shield design inside the seal are
lacking in detail and reproduced with smudgy e ffe ct.; The coloring o f the Treasury
seal is a brighter green, and the portrait o f Hamilton has a darker background than
on the genuine note.
All counterfeit money received from any source should be forwarded to the
nearest o f fic e o f the United States Secret Service, rather than to Washington, D E.
.
The Secret Service has o ffic e s in Room 917, Federal O ffice Building, 90 Church
Street, New York 7, N Y .; in the United States Court House, Buffalo 1, New York;
.
in the Post O ffice Building, •Utica 1, New York; and at 1060 Broad Street, Newark 1,
N Jersey.
ew
Additional copies o f th is le tte r will be furnished upon request.;



A
LLAN SPR0UL,
President.

FED ERAL R E SER VE BANK
OF NEW YORK

January 11, 1952.

To all Member and Nonmember Clearing Banks in the
Second Federal Beserve District, and Others Concerned:

On the reverse side o f this letter there are set forth lists showing
(1) the currently effective operating circulars (numbered 1 through 20)
o f this Bank, and the supplements thereto, and (2) the currently effec­
tive Regulations (lettered A through X ) o f the Board o f Governors of
the Federal Reserve System, and the amendments and supplements
thereto. The lists will enable you to determine whether your sets of
those documents are complete. W e shall be pleased to furnish upon
request copies of any which you do not have.
W e transmit herewith a revised table o f contents of the regulations
to replace the one now in your binder.




A

llan

S pr o tjl,

President.

(O V E R )

CURRENTLY E F F E C T IV E
OPERATING CIRCULARS OF FE D E R A L RESERVE B A N K OF N E W YORK
and
REGULATIONS OF THE BOARD OF GOVERNORS OF TH E FED ER A L RESERVE SYSTEM

January 11, 1952

Operating Circulars

Regulations

Operating Circular No. 1

.January

7,1952

Operating Circular No. 2

. October 18,1949

Operating Circular No. 3
First Supplement . •

September 23,1949
August 8,1950

Operating Circular No. 4

. July

1,1951

Operating Circular No. 5

. July

1,1951

.

Operating Circular No. 6

July 1,1951

Regulation A ......................................October 1,1937
Am endm ent................................ March 20,1942
Am endm ent...........................February 17,1949
Amendment.................................March 21,1951
Regulation B ........................................... May 15,1930
Regulation C ......................................August 31,1946
Regulation D ................................ September 16,1948
Supplem ent...........................December 28,1950
Regulation E ......................................March 1,1940
................................ February

5,1951

Regulation G ................................ February

Regulation F

1,1940

Regulation H ................................ September

1,1948

5,1951

Operating Circular No. 8

November 1,1949

Operating Circular No. 9

December 8,1947

Operating Circular No. 10
First Supplement . .

December
. January

8,1947
8,1951

..................................... January

1,1936

Regulation J

. July

Operating Circular No. 7

Regulation I

......................................January

1,1949

Regulation K ........................................... May 29,1930
Am endm ent........................... September 1,1937
Am endm ent........................... November 1,1943
Am endm ent........................... February 2,1945
Regulation L ................................ February 1,1940
A m endm ent......................................July 1,1948
Regulation M ......................................August 14,1937

Operating Circular No. 11

. October

1,1951

Regulation N ......................................January
Regulation O ........................................... July

Operating Circular No. 12
First Supplement . .

.
.

. June 17,1949
. April 10,1951

Regulation P ......................................January

Operating Circular No. 13

.

August 18,1950

Regulation R ......................................January

Operating Circular No. 14

November 13,1950

Operating Circular No. 15

December

1,1944
1,1939
1,1936

Regulation Q ................................ February 11,1937
Supplem ent................................ January 1,1936
4,1936

Regulation S ........................................... April 30,1942

Operating Circular No. 16

8,1947

. June 25,1951

Regulation T ........................................... July 20,1949
Supplem ent................................ January 17,1951
Amendment No. 11 . . . September 3,1951
Regulation U ........................................... July 20,1949
Supplem ent................................ January 17,1951
Regulation V ................................ September 27,1950

Operating Circular No. 17

January

9,1951

Operating Circular No. 18

. July

2,1951

Operating Circular No. 19

March 24,1950

Operating Circular No. 20

January 10,1952




Regulation W ........................................... July 31,1951
Amendment No. 5
. . .
December 31,1951
Amendment No. 6
. . . . January 2,1952
Regulation X ................................ September 1,1951
Amendment No. 7
. . .
November 19,1951
Amendment No. 8
. . .
December 31,1951
Amendment No. 9
. . . . January 9,1952

Federal
of

Reserve
N

ew

B ank

York

BOARD OF GOVERNORS
OF THE FEDERAL RESERVE SYSTEM
RULES
Rules of Organization and Rules of Procedure
REGULATIONS
Discounts for and Advances to Member Banks by
Federal Reserve Banks...........................................................................

A

Open Market Purchases of Bills of Exchange, Trade Acceptances and
Bankers’ Acceptances Under Section 14.................................................
Acceptance by Member Banks of Drafts or Bills of Exchange..............

B
C

Reserves of Member Banks........................................................................

D

Purchase of Warrants.................................................................................

E

Trust Powers of National Banks................................................................

F

Collection of Noncash Items......................................................................

G

Membership of State Banking Institutions in the
Federal Reserve System..........................................................................

H

Increase or Decrease of Capital Stock of Federal Reserve Banks and
Cancelation of Old and Issue of New Stock Certificates.....................

I

Check Clearing and Collection..................................................................

J

Banking Corporations Authorized to do Foreign Banking Business
Under the Terms of Section 25(a) of the Federal Reserve Act..........
Interlocking Bank Directorates Under the Clayton Act.........................
Foreign Branches of National Banks and of Corporations Organized
Under the Provisions of Section 25(a) of the Federal Reserve A c t..

M

Relations with Foreign Banks and Bankers.............................................
Loans to Executive Officers of Member Banks.........................................

N
0

Holding Company Affiliates—Voting Permits.........................................

P

Payment of Interest on Deposits..............................................................

Q

Relationships with Dealers in Securities Under Section 32 of the Bank­
ing Act of 1933.......................................................................................

R

Industrial Loans by Federal Reserve Banks.............................................

S

Extension and Maintenance of Credit by Brokers, Dealers, and Members
of National Securities Exchanges..........................................................

T

Loans by Banks for the Purpose of Purchasing or Carrying Stocks
Registered on a National Securities Exchange.....................................

U

K
L

Loan Guarantees for Defense Production.................................................

V

Consumer Credit.........................................................................................

W

Real Estate Credit.....................................................................................

X

( R e v . 1-11-52)



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