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Fiscal A g e n t of the United States
r Circular No. 2 9 9 0 1
A u g u s t 21, 1945




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

The Secretary of the Treasury has announced that a Victory Loan Drive will be scheduled
for the earliest possible date, and that this should be the last of the organized drives to finance
the war effort. At the same time, he stated that the sale of United States Savings Bonds,
especially under the payroll savings plan, will be continued. This is an important financial
measure of reconversion. The Secretary of the Treasury said:
W e should continue the sale of United States Savings Bonds, especially under the payroll savings

I n doing this we will be meeting the many requests we have received f r o m leaders of labor and

Millions of our citizens, as savings bonds buyers, have learned the value of thrift.
T h e y hold the soundest securities that are available in the world today—securities that will never
be worth less than the purchase price and that will increase in value as they approach maturity.
T h e y should be encouraged to hold the bonds they now have and to b u y more.
National stability will be advanced b y having our national obligations held by the greatest possible number of our citizens, and the individual who adds systematically to his bond holdings will find he
has built u p the best possible protection against any need.

It is essential to the orderly continuation of the savings bond program that industrial plants
and business establishments with payroll savings plans continue to service such plans, and that
all authorized issuing agents continue their bond issuing activities. It is the Treasury's hope
and expectation that you will do so.
In order to enable you to make an authoritative reply to any inquiries regarding a rumor
that the Treasury is giving consideration to the " f r e e z i n g " of Savings Bonds, we quote below
the comment of the Secretary of the Treasury at a press conference last week when he was questioned regarding such rumor:
There is nothing that has emanated f r o m the Treasury that would give substance to that rumor.
O f course they w o n ' t be frozen. W e have a contractual obligation with the purchasers of those bonds,
and I think the Government, first of all, should keep its contract. Provision f o r redemption is made in
the bonds.



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