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FEDERAL RESERVE
OF NEW

BANK

YORK

Fiscal Agent of the United States
f Circular No. 3 0 1 8 "1
L October 25, 1945 J

VICTORY LOAN DRIVE
PREVENTION OF SPECULATIVE SUBSCRIPTIONS TO M A R K E T A B L E ISSUES
To the President of each Baiik and Trust Company in the
Second Federal Reserve
District:

I n a letter d a t e d O c t o b e r 8 , 1 9 4 5 , sent b y the S e c r e t a r y o f the T r e a s u r y d i r e c t l y t o y o u a n d
e v e r y o t h e r b a n k i n g i n s t i t u t i o n i n the c o u n t r y , he u r g e d y o u r c o o p e r a t i o n in d e c l i n i n g to m a k e
loans f o r s p e c u l a t i v e p u r c h a s e s o f G o v e r n m e n t securities a n d also in d e c l i n i n g to a c c e p t subs c r i p t i o n s f r o m c u s t o m e r s w h i c h m a y a p p e a r to b e e n t e r e d f o r s p e c u l a t i v e p u r p o s e s .

The

s u b s c r i p t i o n f o r m s ( c o p i e s o f w h i c h w e r e t r a n s m i t t e d w i t h o u r C i r c u l a r N o . 3012, d a t e d O c t o b e r
1 5 , 1 9 4 5 ) to be u s e d b y y o u r i n s t i t u t i o n in m a k i n g s u b s c r i p t i o n s f o r a c c o u n t o f c u s t o m e r s to the
three m a r k e t a b l e issues t o b e o f f e r e d in the D r i v e c o n t a i n the f o l l o w i n g c e r t i f i c a t i o n :
The undersigned banking institution hereby certifies that it has no beneficial interest in the securities
subscribed for, and that to the best of its knowledge and belief this subscription is solely for account of
the customers listed on the reverse side hereof, and conforms in all respects with the requests of the
Treasury concerning subscriptions set forth in the letter of October 8, 1945, from the Secretary of the
Treasury regarding the Victory Loan.
T h e m e a n i n g o f this certification is clear, a n d it s h o u l d not b e s i g n e d unless y o u

are

r e a s o n a b l y sure that it d o e s n o t c o v e r a s p e c u l a t i v e s u b s c r i p t i o n .
T o e m p h a s i z e the i m p o r t a n c e of this certification, the S e c r e t a r y

of the T r e a s u r y

has

r e q u e s t e d u s to c o m m u n i c a t e with the b a n k s i n the S e c o n d F e d e r a l R e s e r v e D i s t r i c t a n d to
a d v i s e t h e m as f o l l o w s :
(1) That the Treasury and Federal Reserve Banks as Fiscal Agents of the United States will
rely on their certification on the subscriptions filed by them for account of their customers;
(2) That the Treasury considers it essential that the banks designate a specific officer or officers
to pass on the subcriptions to assure so far as possible that they are not for speculative purposes
and then to sign the certification;
(3) That in the event the subscribing bank prefers, for any reason, not to pass judgment on
the eligibility of a subscription, the Federal Reserve Bank as Fiscal Agent of the United States
stands ready to assume the responsibility. In all cases in which the banking institution has doubt
as to the propriety of accepting a subscription presented through it, it should notify the Federal
Reserve Bank, stating the circumstances and furnish all available information. The subscription
should not be entered with the Federal Reserve Bank until instructions have been received from it.
(4) That if in our review and examination of the subscriptions submitted questions should
arise based on information which w e believe may not be available to the subscribing bank, the
Treasury would like to have the cooperation of the banks in answering inquiries which the Federal
Reserve Banks desire to make to help determine the acceptability of such subscriptions.
I u r g e n t l y r e q u e s t y o u r w h o l e h e a r t e d c o o p e r a t i o n in c o m p l y i n g w i t h these rules established
b y the S e c r e t a r y o f the T r e a s u r y to h e l p p r e v e n t s p e c u l a t i v e s u b s c r i p t i o n s f o r

Government

s e c u r i t i e s in the V i c t o r y L o a n D r i v e .
ALLAN

M
i f l i k
VICTORY
LOAN



SPROUL,

President.

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