View PDF

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

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 .....

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