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FEDERAL RESERVE BANK OF DALLAS F I S C A L A G E N T O F T H E U N IT E D S T A T E S Dallas, Texas, September 17, 1942 To All Banking Institutions in the Eleventh Federal Reserve District: There is enclosed a copy of a brief summary containing essential information in regard to the new issues of Treasury Tax Savings Notes, referred to in our circular of September 12, 1942. There are also enclosed several forms to be used in connection with applications for Treasury Tax Savings Notes. The Secretary of the Treasury is desirous of effecting a wide distribu tion of this summary and has suggested that we ascertain from banks if they would be willing to send copies of it to all depositors and customers with their September 30 statements. A self-addressed post card is enclosed, on which may be indicated the number of copies of the summary required should your bank be willing to make such distribution. The prompt return of this card is important, in order that the number desired may be forwarded to your bank before the end of this month. Your continued cooperation in connection with the sale of Tax Savings Notes will be appreciated. Yours very truly, R. R. GILBERT President KY BUY U N IT E D STATES WAR BONDS AND STAMPS This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) I U n it e d V ic t o r y Eleventh s t a t e s F u n d T r e a s u r y c o m m it t e e Fe d e r a l Reser ve d is t r ic t September 14,1942 TA X SAVINGS NOTES The Secretary of the Treasury is offering new and revised series of Treasury Tax Savings Notes to provide (a) a convenient and systematic method o f accumulating funds for the payment of taxes, and (b) an exceptionally attractive medium for the safest investment in the world for idle funds, particularly those held by business concerns and others who have unemployed cash seeking short term investment. These notes constitute an important part of war financing. Tax Savings Notes continue to be issued in two series— Series A designed primarily for small or moderate taxpayers, and Series C intended for the larger taxpayers and investors. The principal features of these notes are: SER IES A SE R IE S C Price: Par and accrued interest. Par. Date and Maturity: Dated September 1, 1942, due September 1, 1945. Not callable. Dated first day of month in which purchased, maturing in three years from that date. Not callable. Interest: Interest accrues at 16 cents a month per $100 or at interest rate of about 1.92% a year. If not used for tax payment, no interest paid. Interest accrues each month from date of issue on a graduated scale per $1,000 as follows: First Vz yr............................................................. $0.50 Vz to 1 yr............................................................... 0.80 1 to IVz yrs........................................................... 0.90 1 Vz to 2 yrs........................................................... 1.00 2 to 2 Vz yrs........................................................... 1.10 2Vt to 3 yrs........................................................... 1.10 Average interest rate about 1.07% a year if held to maturity. Denominations: $25, $50, $100, $500, $1,000, and $5,000. $1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,000. Acceptable for taxes: Denom. exchange: $5,000 limit in one year. Unlimited. Each series may be presented for taxes at par and accrued interest during and after second calendar month after date of purchase. Each series may be exchanged from higher to lower but not from lower to higher denominations. Form: Name and address of single owner inscribed as two or more persons jointly. Redemption for cash: A t purchase price only without advance notice. A t par and accrued interest, after 6 months from purchase date upon 30 days’ notice, or at maturity. Collateral: Not eligible for loans. Eligible for loans from banking institutions only. in income tax return, but not issued in names of SER IES C SER IES A Transfer: None, except by parent corporation to its subsidiary in which it owns more than 50% voting stock. Conversion: Series A and B purchased in September, 1942, may be converted into new series with certain limitations. Taxes: Income subject to all Federal taxes. The notes are subject to estate, inheritance, gift or other excise taxes, Federal or State, but are exempt both as to principal and interest from all State or local taxation. When and where purchased: At any time. Though Federal Reserve banks and branches, and the Treasury. For convenience, applications may be made through local banks and security dealers generally. For complete and governing details, please consult official circulars. The Secretary of the Treasury has asked us to assist in the distribution of Tax Savings Notes, and it therefore becomes our responsibility to do an effective job. The new Series C notes provide greater flexibility, higher return, and a desirable outlet for employment of short-term funds. The charts at the bottom of this page show appreciation and yields of the notes. The sale of these notes gives us an excellent opportunity to play a significant part in Government war financing. F or th e V ictory F und C om m ittee E leventh F ederal R eserve D istrict R. R. G ilbert, Chairman Judson S. Jam es , Jr., Executive Manager Appreciation and Yields on $ 1 ,0 0 0 Tax Savings Notes DOLLARS PER CENT I .IO .00 .90 .80 .7 0 .6 0 TN-TS-Series C APPLICATION FOR UNITED STATES TREASURY NOTES— TAX SERIES C Issued at Par □ □ □ □ Due 3 Years from Issue Date To the Federal Reserve Bank of Dallas, Station “ K ” , Dallas, Texas OR To the Federal Reserve Bank Branch at El Paso, Texas Houston, Texas San Antonio, Texas NOTE: This application, accompanied by payment, should be mailed to the Federal Reserve Bank of Dallas, Dallas, Texas, or its branch at El Paso, Houston or San Antonio. The undersigned hereby applies for United States Treasury Notes of Tax Series C (issued pursuant to Treasury Department Circular No. 696, dated September 12, 1942) as follows: Number of Notes Denomination (Face Value) Par Amount (Total Cost) DO NOT USE THIS COLUMN $1,000 $5,000 $ $ $10,000 $ $100,000 $500,000 $ $ $1,000,000 $ Total amount of p u r c h a s e ........................................................... - $. (The name of the purchaser, for inscription on notes, should be in the same form as that used by the purchaser in his Federal tax return) TYPEWRITE THIS INFORMATION IF POSSIBLE—OTHERWISE WRITE LEGIBLY PURCHASER’S NAME_______________________________________________ __________________________ SIGNATURE__________________________________________________________________________________ ADDRESS_____________________________________________________________________________________ INSTRUCTIONS FOR DELIVERY OF NOTES SHIP TO— M ETHOD OF P A Y M E N T The month in which payment in immediately available funds is received by a Federal Reserve bank or branch will determine the date of issue of this note. □ By charge to our reserve account hereby authorized. □ By duly authorized deposit on our books in accordance with Treasury Department Circular No. 92 (War Loan Account). □ Draft enclosed on □ BANK □ PURCHASER □ OTHERWISE (Name of Bank) By------------- ------------------------------------------------------------------------------------(President-Cashier) (Address) ________________ _ Date_...........— ___ _ I TREASURY NOTES— TAX SERIES C Table of Tax-Payment or Redemption Values and Investment Yields The table below shows for each month from date of issue to date of maturity the amount of interest accrual; the principal amount with accrued interest added, for notes of each denomination; the approximate investment yield on the par amount from issue date to the beginning of each month following the month of issue; and the approximate investment yield on the current redemption value from the beginning of the month indicated to the month of maturity. Par Value (issue price during month of issue) Amount of interest accrual each month after month of issue $5,000 $10,000 A p p rox im a te in vestment yield on par amount from issue date to be g in n in g o f each monthly period thereafter A p p rox im a te in vestment yield on current t a x -p a y ment or redemp tion values from beginning of each monthly period to maturity Percent $1,000 Percent 1.07f $100,050.00 $500,250.00 $1,000,500.00 100,100.00 500,500.00 1,001,000.00 100,150.00 500,750.00 1,001,500.00 100,200.00 501,000.00 1,002,000.00 100,250.00 501,250.00 1,002,500.00 100,300.00 501,500.00 1,003,000.00 .60 .60 .60 .60 .60 .60 1.08 1.09 1.11 1.12 1.14 1.16 $100,000 $500,000 $1,000,000 Tax-Payment or Redemption values during each monthly period after month of issue* Interest accrues at rate of $0.50 per month per $1,000 par amount First month Second month Third month Fourth month Fifth month Sixth month $1,000.50 $5,002.50 $10,005.00 1,001.00 5,005.00 10,010.00 1,001.50 5,007.50 10,015.00 1,002.00 5,010.00 10,020.00 1,002.50 5,012.50 10,025.00 1,003.00 5,015.00 10,030.00 Interest accrues at rate of $0.80 per month per $1,000 par amount Seventh month Eighth month Ninth month Tenth month Eleventh month Twelfth month 1,003.80 1,004.00 1,005.40 1,006.20 1,007.00 1,007.80 5,019.00 5,023.00 5,027.00 5,031.00 5,035.00 5,039.00 10,038.00 10,046.00 10,054.00 10,062.00 10,070.00 10,078.00 100,380.00 100,460.00 100,540.00 100,620.00 100,700.00 100,780.00 501,900.00 502,300.00 502,700.00 503,100.00 503,500.00 503,900.00 1,003,800.00 1,004,600.00 1,005,400.00 1,006.200.00 1.007,000.00 1,007,800.00 .65 .69 .72 .74 .76 .78 1.17 1.17 1.18 1.19 1.20 1.21 1,008.70 1,009.60 1,010.50 1,011.40 1,012.30 1,013.20 5,043.50 5,048.00 5,052.50 5,057.00 5,061.50 5,066.00 10,087.00 10,096.00 10,105.00 10,114.00 10,123.00 10,132.00 100,870.00 100,960.00 101,050.00 101,140.00 101,230.00 101,320.00 504,350.00 504,800.00 505,250.00 505,700.00 506,150.00 506,600.00 1,008,700.00 1,009,600.00 1,010,500.00 1,011,400.00 1,012,300.00 1,013,200.00 .80 .82 .84 .85 .86 .88 1.22 1.22 1.23 1.24 1.25 1.26 1,014.20 1,015.20 1,016.20 1,017.20 1,018.20 1,019.20 5,071.00 5,076.00 5,081.00 5,086.00 5,091.00 5,096.00 10,142.00 10,152.00 10,162.00 10,172.00 10,182.00 10,192.00 101,420.00 101,520.00 101,620.00 101,720.00 101,820.00 101,920.00 507,100.00 507,600.00 508,100.00 508,600.00 509,100.00 509,600.00 1,014,200.00 1,015,200.00 1,016,200.00 1,017,200.00 1,018,200.00 1,019,200.00 .89 .91 .92 .93 .94 .95 1.26 1.26 1.27 1.28 1.28 1.29 1,020.30 1,021.40 1,022.50 1,023.60 1,024.70 1,025.80 1,026.90 1,028.00 1,029.10 1,030.20 1,031.30 1,032.40 5,101.50 5,107.00 5,112.50 5,118.00 5,123.50 5,129.00 5,134.50 5,140.00 5,145.50 5,151.00 5,156.50 5,162.00 10,203.00 10,214.00 10,225.00 10,236.00 10,247.00 10,258.00 10,269.00 10,280.00 10,291.00 10,302.00 10,313.00 10,324.00 102,030.00 102,140.00 102,250.00 102,360.00 102,470.00 102,580.00 102,690.00 102,800.00 102,910.00 103,020.00 103,130.00 103,240.00 510,150.00 510,700.00 511,250.00 511,800.00 512,350.00 512,900.00 513,450.00 514,000.00 514,550.00 515,100.00 515,650.00 516,200.00 1,020,300.00 1,021,400.00 1,022,500.00 1,023,600.00 1,024,700.00 1,025,800.00 1,026,900.00 1,028,000.00 1,029,100.00 1,030,200.00 1,031,300.00 1,032,400.00 .97 .98 .99 1.00 1.01 1.02 1.03 1.04 1.05 1.05 1.06 1.07 1.29 1.29 1.29 1.29 1.29 1.29 1.29 1.29 1.28 1.28 1.28 Interest accrues at rate of $0.90 per month per $1,000 par amount Thirteenth month Fourteenth month Fifteenth month Sixteenth month Seventeenth month Eighteenth month Interest accrues at rate of $1.00 per month per $1,000 par amount Nineteenth month Twentieth month Twenty-first month Twenty-second month Twenty-third month Twenty-fourth month Interest accrues at rate of $1.10 per month per $1,000 par amount Twenty-fifth month Twenty-sixth month Twenty-seventh month Twenty-eighth month Twenty-ninth month Thirtieth month Thirty-first month Thirty-second month Thirty-third month Thirty-fourth month Thirty-fifth month Thirty-sixth month (MATURITY) . *Not acceptable in payment of taxes until during and after the second calendar month after the month of issue, and not redeemable for cash until during and after the sixth calendar month after the month of issue, on 30 days’ advance notice. f Approximate investment yield for entire period from issuance to maturity. TN-TS-A-45 APPLICATION FOR UNITED STATES TREASURY NOTES— TAX SERIES A-1945 Dated September 1, 1942 □ □ □ □ To the Federal Reserve Bank of Dallas, Station “ K ” , Dallas, Texas OR To the Federal Reserve Bank Branch at El Paso, Texas Houston, Texas San Antonio, Texas Due September 1, 1945 NOTE: This application, accompanied by payment, should be mailed to the Federal Reserve Bank of Dallas, Dallas, Texas, or its branch at El Paso, Houston or San Antonio. The undersigned hereby applies for United States Treasury Notes of Tax Series A -1945 (issued pursuant to Treasury Department Circular No. 695, dated September 12, 1942) as follows: Number of Notes Denomination (Face Value) $25 $50 $100 $500 $1,000 $5,000 Purchase Price (See Table) $ $ $ $ $ $ Total Amount (Total Cost) $ $ $ $ $ $ amount of purchase $ NOTE Be sure and refer to table on reverse side before filling in purchase price. (The name of the purchaser, for inscription on notes, should be in the same form as that used by the purchaser in his Federal tax return) TYPEW R ITE THIS INFORMATION IF POSSIBLE— OTHERWISE W RITE LEGIBLY P U R C H A SE R ’S N A M E _____________________________________________________________________________________ SIGNATURE. ADDRESS. M ETHOD OF P A Y M E N T INSTRUCTIONS FOR DELIVERY OF NOTES SHIP TO— □ BANK □ By charge to our reserve account hereby authorized. By duly authorized deposit on our books in accordance with Treasury Department Circular No. 92 (War Loan Account). □ Draft enclosed on □ By War Savings Stamps enclosed. PURCHASER □ □ □ OTHERWISE (Name of Bank) By_________________ _______________________________________________________ (President-Cashier) (Address) Date. PU RCH ASE PRICE (P A R A N D ACCR U ED IN T E R E S T ) FOR E A C H D E N O M IN A TIO N D UR IN G SU CCESSIVE M ONTHS The month in which payment in immediately available funds is received by a Federal Reserve bank or branch will determine the purchase price and date of issue of this note. See Schedule on Reverse for Purchase Price TR EASURY NOTES— T A X SERIES A-1945 Purchase Price and Tax-Payment Value During Successive Months The table below shows the principal amount with accrued interest added, for notes of each denomination, for each month from September 1942 to September 1945, inclusive. The total shown for any denomination for any month while the notes remain on sale, is the purchase price, or cost of the note during that month. Also the total shown for any denomination for any month is the tax-payment value of the note if receivable during that month in payment of taxes. $25 $50 $100 $500 $1,000 $5,000 $50.00 50.08 50.16 50.24 $100.00 100.16 100.32 100.48 $500.00 500.80 501.60 502.40 $1,000.00 1,001.60 1,003.20 1,004.80 $5,000 5,008 5,016 5,024 1942: September ..... O ctober_____ November ..... December ....... --$25.00 ..... 25.04 ..... 25.08 ..... 25.12 1943: January ......... February ....... March ............ April ............ . May ................ June .............. July ................ August ........... September ..... October .......... November ..... December ..... ..... ..... ..... ...... ..... ...... ...... ...... ..... ..... ...... ..... 25.16 25.20 25.24 25.28 25.32 25.36 25.40 25.44 25.48 25.52 25.56 25.60 50.32 50.40 50.48 50.56 50.64 50.72 50.80 50.88 50.96 51.04 51.12 51.20 100.64 100.80 100.96 101.12 101.28 101.44 101.60 101.76 101.92 102.08 102.24 102.40 503.20 504.00 504.80 505.60 506.40 507.20 508.00 508.80 509.60 510.40 511.20 512.00 1,006.40 1,008.00 1,009.60 1,011.20 1,012.80 1,014.40 1,016.00 1,017.60 1,019.20 1,020.80 1,022.40 1,024.00 5,032 5,040 5,048 5,056 5,064 5,072 5,080 5,088 5,096 5,104 5,112 5,120 1944: January .... ... February ___ March ............ April ........... May ................ June .......... . July ................. August .......... ....... .... September ..... October .......... November ..... December ....... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... 25.64 25.68 25.72 25.76 25.80 25.84 25.88 25.92 25.96 26.00 26.04 26.08 51.28 51.36 51.44 51.52 51.60 51.68 51.76 51.84 51.92 52.00 52.08 52.16 102.56 102.72 102.88 103.04 103.20 103.36 103.52 103.68 103.84 104.00 104.16 104.32 512.80 513.60 514.40 515.20 516.00 516.80 517.60 518.40 519.20 520.00 520.80 521.60 1,025.60 1,027.20 1,028.80 1,030.40 1,032.00 1,033.60 1,035.20 1,036.80 1,038.40 1,040.00 1,041.60 1,043.20 5,128 5,136 5,144 5,152 5,160 5,168 5,176 5,184 5,192 5,200 5,208 5,216 ..... ..... ..... ..... ..... ..... ..... ..... ..... 26.12 26.16 26.20 26.24 26.28 26.32 26.36 26.40 26.44 52.24 52.32 52.40 52.48 52.56 52.64 52.72 52.80 52.88 104.48 104.64 104.80 104.96 105.12 105.28 105.44 105.60 105.76 522.40 523.20 524.00 524.80 525.60 526.40 527.20 528.00 528.80 1,044.80 1,046.40 1,048.00 1,049.60 1,051.20 1,052.80 1,054.40 1,056.00 1,057.60 5,224 15,232 5,240 5,248 5,256 5,264 5,272 5,280 5,288 1945: January ........ February ....... March ___ ___ April .............. M a y ................ June .............. July ................ August ............ September .....
@FedFRASER