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Government Bond

t Circular No. 280
{May 26, 1920.

Liberty and Victory Loans
Uniformity in Inscription

of R e g i s t e r e d


and N o t e s O w n e d b y t h e s a m e R e g i s t e r e d H o l d e r
To Facilitate the Payment of Semi -Annual
Interest in One Check to Each Bond or
Note Holder for Each Loan

To all Banks, Trust Companies, Savings Banks, Bankers,
Investment Dealers and Stock Exchange Firms in the
Second Federal Reserve District:

With reference to the submission of requests for the issue of registered bonds and
notes of the United States, attention is directed to the suggestion of the Treasury Department t h a t in cases where a person or registered owner owning bonds in a particular loan
requests the registration of other bonds of t h a t loan in his name, the same form of inscription be requested as t h a t in which the bonds already owned were issued.
Desirability of Identical Name
If First Liberty Loan 33^%'s were registered at the time of original issue in the name
of " J o s . L. S m i t h , " who later purchased other bonds of the same loan and had them
inscribed in the name of " D r . Joseph L. Smith," and still later requested other bonds of
t h a t loan inscribed in the name of "Joseph L. Smith, M . D . , " the Treasury Department
would necessarily maintain three separate accounts, one in each designation, notwithstanding the fact t h a t the post-office addresses were identical in each case.

As the semi-

annual dividends became due three interest checks would be drawn, payable respectively
in the designation in which the bonds were inscribed.

There would then be three separate

accounts on the books of the Department, all for one individual.
occur in the case of inscriptions in the following manner:

A similar result would

"Franklin Manufacturing

3^4 -


Company, Henry White, Treasurer, Cleveland, Ohio," " H . White, Treasurer, Franklin
Manufacturing Company, Cleveland, Ohio," and "Treasurer, Franklin Manufacturing
Company, Cleveland, Ohio." In each case the registered owner would receive three
checks and the possibility of misplacing or losing one or more of the checks would be much
greater than if only a single check were issued covering the entire account
I t is equally desirable t h a t if bonds stand in the name of " E d w a r d J o n e s " or in the
name of "William Jones," requests for registration of additional bonds should be submitted
in the same manner and not in the form of " E d w . " or " W m . "
Interest Payment in One Check
Registered owners would no doubt prefer to receive their semi-annual interest in one
check covering all bonds owned by them in that particular loan, and the Treasury Department would prefer to maintain only a single account with a particular holder in one loan,
but if variations occur in the form of inscription as in the examples mentioned, separate
accounts must be maintained and separate interest checks issued.
Information F r o m Customers
I t is suggested that in submitting requests for the issue of registered bonds or notes,
you make inquiry of the customer as to whether or not he holds other registered bonds
or notes of the same issue, and if so, his attention should be directed to the desirability
of having the new bonds or notes issued in exactly the same form of registration as were
his other holdings in t h a t loan.
Your co-operation in this matter will considerably assist the Treasury Department
and will relieve your customer of the inconvenience of handling several checks which
actually represent the same account.
Yours very truly,



Acting Governor.


going to press with the foregoing circular it is recommended by

the Treasury Department t h a t all assignments of such registered bonds be made in conformity with inscriptions appearing on other registered bonds held by the assignee. After
bonds have been assigned, however, new bonds will be issued in accordance with such
assignment regardless of any amended form of inscription appearing in accompanying
request for transfer.

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