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FEDERAL RESERVE
OF NEW

BANK

YORK

Fiscal Agent of the United States
r Circular No. 2 8 0 3 1
L
May 29. 1944
J

UNITED STATES SAVINGS BONDS
Form of Inscription

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

Under a program sponsored by the Treasury Department in cooperation with the
National Publishers Association and the Associated Business Papers, a large number
of magazines having a total circulation of more than 116 million will feature pictures
of a $100 Series E War Savings Bond on their covers during the Fifth War Loan
Drive. A number of the photographs which have been prepared for this purpose show
bonds bearing an inscription in substantially the following f o r m :
Mr. and Mrs. America
Everywhere
U . S.

A.

It is understood that this form of inscription was adopted for promotional purposes
and to provide uniformity.
W e wish to bring to the attention of all issuing agents that, notwithstanding the
inscription "Mr. and Mrs. America" on Series E bonds appearing on magazine covers
during the period of the Fifth War Loan Drive, there has been no modification of
the regulations relating to the registration of savings bonds and the issuance of bonds
inscribed in the form "Mr. and Mrs." is not authorized. In the case of savings bonds
issued in the names of husband and wife as coowners, the correct form of inscription
is "John A. Jones or Mrs. Ella S. Jones".




ALLAN

SPROUL,

President.

FEDERAL RESERVE

BANK

OF N E W YORK
F I S C A L A G E N T OF THE UNITED

STATES

May 27, 1 4 4 <
9--

Additional Provisions for
Regulation V Guarantee Agreements

To the Banks Concerned:
In order to minimise certain administrative problems under
Sections 5 and 6 of the standard form of guarantee agreement, the War
and Navy Departments have approved amending the agreement as follows:
(A) Definition of "Canceled Contract." - Section 4(A)(2)
is amended to read as follows:
"(2) A 'canceled contract' means a war production
contract or part thereof which contract or part is,
after the date of the Guarantee Agreement, canceled
or terminated not by reason of fault of the Borrower."
(B)

Exclusion of Small Contracts.

(1) Section 4(B) is amended by adding at the end
thereof the following sentence:
"If the amount which would be included in (x) or (y) with
respect to any contract is, on the adjustment notice date,
less than £
>
, such amount shall be excluded
from the computation of (x) and (y)."
(2) Section 6(A) is amended by inserting after the words
"claims on canceled contracts" in clause (2) of the second sentence
thereof the words: "included in (x)."
(3) Section 6(B) is amended by inserting after the words
"any canceled contract" in the first sentence thereof the words:
"included in (x)#"
No authorization has been received by us from the Maritime
Commission in connection with this matter but we are informed that the
Commission has it under consideration.




May 27, 1944.

2

The War and Navy Departments desire that the special section
be added to all guarantee agreements executed on and after June 1, 1944.
Yifhere a guarantee agreement on the form of April 6, 1943 is
already in use or is executed prior to June 1, 1944, the special section
will, at the request of the financing institution and the borrower, be
added to the guarantee agreement by means of an appropriate supplement.
In cases where the 194-2 form of agreement is in force, the. special
section is likewise available, but only if the financing institution and
the borrower accept the standard form of April 6, 1943 agreement in its
entirety in substitution for the 1942 form of agreement. In such cases,
if no material changes are made in the terms of the loan, the new guarantee agreement will be dated as of the date of the original guarantee
agreement in order that all canceled contracts which were canceled
subsequent to the date of the original agreement may be included for the
purposes of adjustments under Sections 5 and 6,
Subsection (A) of the special section is intended to eliminate
the necessity of tracing the cancelation of a war production contract
to the cancelation or termination of a prime contract.
Subsection (B) of the special section is designed to permit
borrowers to exclude small, contracts from the computation of the adjustment formula. In this connection, we have been authorized by the War
and Navy Departments to approve the insertion, in the blank space contained in the amendment to Section 4(B) of the guarantee agreement, of
any figure not in excess of $2,500 if in our judgment the total amount
of contracts so excluded does not exceed 10$ of the volume of the borrower's war production contracts as of the date of the addition of the
special section or of the execution of the new agreement, including the
special section, as the case may be. Requests for the exclusion of contracts in excess of $2,500 will, upon submission to us, be forwarded to
Washington for consideration.
While
the borrower or
wish to exclude
ment to Section

the special section is available only in its entirety, if
the financing institution does not in a particular case
small contracts, the blank space contained in the amend4(B) of the agreement must be lined out.

If you desire to avail yourself of the foregoing special section
in connection with outstanding guarantee agreements held by you and issued
prior to June 1, 1944-, we shall be glad to process such requests provided
they are accompanied by information which will furnish us with, the basis
for the correct determination of the proportion which the excluded contracts bear to the total contracts.




Very truly yours,

•y^-eTVx1
A, Phelan,
Vice President,

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