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FEDERAL RESERVE BANK OF DALLAS
F IS C A L A G E N T O F TH E U N IT E D S T A T E S

Dallas, Texas, September 9, 1942

IMPORTANT INFORMATION RELATING TO PAYMENT BY CHECK FOR
WAR SAVINGS BONDS, SERIES E

To Qualified Agents for the Issuance of
War Savings Bonds, Series E :
Section 1 of Part III (Purchase of Bonds) of Treasury Circular No. 653, Revised,
provides, in effect, that War Savings Bonds of Series E may be purchased over the
counter for cash at agencies designated and duly qualified as sales agents, pursuant to
Treasury Circular No. 657, as amended and supplemented. No provision is made for the
sale of bonds by such agents other than on a cash basis. Unless issuing agents are willing
to accept full responsibility in connection with checks tendered in payment of bonds,
it is important that the following suggestions in regard to the acceptance of such checks
be observed.
With respect to the delivery of War Savings Bonds for which payment is being made
by check, it is suggested that each issuing agent establish a waiting period to allow a
reasonable time after deposit for the check to be returned, if it should prove to be
uncollectible, before delivery of the bond is effected. Issuing agents should consult their
local bank for guidance in establishing an adequate waiting period.
In the event a bond is delivered by an agent and the check is payment therefor is
subsequently returned unpaid to the agent, a description of the bond and statement of
the facts in the case should be furnished to the Federal Reserve bank or branch, at
once. Under Treasury regulations, the agent will be expected to obtain payment or have
the bond returned immediately.
If the agent obtains either payment for or the return of the bond, appropriate advice
should be forwarded to the Federal Reserve bank or branch promptly. If the agent does
not obtain payment for or the return of the bond after two requests therefor, the agent's
file or photostatic copy thereof should be forwarded promptly to the Federal Reserve
bank or branch for further action.
Although full cooperation will be given issuing agents, it is not legally possible for
the Treasury to waive any rights it may have to demand reimbursement from issuing
agents for any loss which may result to the Treasury on account of bonds issued and
delivered by the agent against a check which subsequently proves to be uncollectible.
Yours very truly,
R. R. GILBERT
President

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)


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