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FEDERAL RESERVE BANK OF DALLAS
FISCAL AGENT OF THE UNITED STATES

Dallas, Texas, March 11,1935.

To the Bank Addressed:
There is enclosed a leaflet covering the sale at Post Offices of United
States Savings Bonds.
This leaflet is mailed to your bank at the suggestion of the Treasury
Department, Washington, and additional copies may be obtained if desired.
Yours very truly,
b. a.

McKin n e y ,
Governor.

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

U N ITED STATES
SAVINGS BONDS
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Government
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ON SALE AT POST OFFICES
FURTHER INFORMATION W ITHIN

UNITED STATES SAVINGS
BONDS
T he U nited S tates G overnment

offers for sale through its post offices to
the people of the United States a new
form of Government security known as
United States Savings Bonds.
These bonds are issued in denominations of $25, $50, $100, $500, and $1,000.
Each bond bears the promise of the Government of the United States to pay to the
owner the full amount (maturity value)
stated on the bond 10 years from the date
of issue. The date of issue is the first day
of the month in which the bond is pun
chased.
The bonds are sold at issue prices
which are less than the face values. They
increase in value regularly after the first
year. A bond bought at the present
issue prices and held for 10 years increases
in value by exactly one-third of the pur­
chase price. The increase is equal to interest on the purchase price at a rate of about
2.9 percent compounded semiannually.
The following table of issue prices and
maturity values shows the amount the
buyer pays and the amount he receives in
10 years:
I ssue P rice

$18.75
$37.50
$75.00
$375.00
$750.00

M aturity V alue
will increaseyears to
in
$25.00
10 in
will increase
$50.00
10 years to
will increase in
$100.00
10 years to
will increaseyears to
$500.00
10 in
will increaseyears to $1,000.00
10 in
(2)

BONDS A L W A Y S R E D E E M A B L E

United States Savings Bonds, as their
name shows, are intended to furnish a con­
venient means for the profitable invest­
ment of savings. The greatest profit and
the greatest rate of profit are obtained if
they are held for the full 10 years. But to
provide for any emergency need of any pur­
chaser, the Government will redeem any
bond at any time 60 days or more after the
date of issue on the request of the owner.
The price which the Government will pay
in buying bac\ the bond will depend on
how long the owner has held it.
For the first year only the issue price
will be paid. A year after issue the re­
demption price will be $76 for the bond
which cost $75 and which has a maturity
value of $100. After 18 months the bond
which cost $75 may be cashed for $77- It
increases $1 in value every 6 months until
it has been held 7 years. Then it will have
a redemption value of $88. Thereafter its
value increases $2 every 6 months until
the 10 years are up, when the Govern­
ment will pay the face value of the bond,
or $100, to the owner. The increase in
value of the bonds of other denominations
is in the same proportion. For instance,
the bond costing $18.75 will be worth $19
at the end of the first year, and $19.25
after 18 months. Thereafter it increases
in value by 25 cents every 6 months until
its redemption value is $22 in 7 years. A t
the end of 10 years the purchaser receives
$25 for it.
(3)

H O W T H E Y IN C R EA S E IN V A L U E

The following table of redemption
values of the $25 and $100 bonds illus­
trates the increase in value for all the
bonds from the issue date to maturity:

I ssue P r ic e ..................
R edemption V alues
A fter the I ssue
D a te :

First year..........
1 to 1){ years. . .
1){ to 2 years. . .
2 to 2){ years.. .
2){ to 3 years. . .
3 to 2>}i years. . .
y /2 to 4 years. . . .
4 to 4}i years. . . .
4}i to 5 years. . . .
5 to 5/j years. . . .
5}{ to 6 years. . . .
6 to 6){ years.. . .
to 7 years. . . .
7 to 7K years. . . .
7K to 8 years. . . .
8 to 8}i years.. . .
8% to 9 years. . . .
9 to years. . . .
9% to 10 years....
M aturity

$18.75 $75.00

$18.75 $75.00
19.00 76.00
19.25 77.00
19.50 78.00
19.75 79.00
20.00 80.00
20.25 81.00
20.50 82.00
20.75 83.00
21.00 84.00
21.25 85.00
21.50 86.00
21.75 87.00
22.00 88.00
22.50 90.00
23.00 92.00
23.50 94.00
24.00 96.00
24.50 98.00
$25.00 $100.00

will be payable only to him except in case
of death, when it will be payable to his
heirs; in case of disability, when it will be
payable to his legally accredited agent; or
as a result of judicial proceedings. In ac­
cordance with laws and Treasury regula­
tions, he may obtain a duplicate, in case of
loss, theft, or destruction, by application
to the Treasury Department, Division of
Loans and Currency. These safeguards
furnish complete protection against loss of
United States Savings Bonds. If the owner
desires, the Government will hold the bond
in safekeeping for him and issue a receipt
to him.
ON SALE A T P O S T O F F IC E S

Each bond is registered in the name of
the owner on the books of the United
States Treasury. The name of the owner
is written on the face of the bond, and it

The Post Office Department of the
United States Government is the sales
agency for United States Savings Bonds.
They are on sale at all post offices of the
first, second, and third class, and at many
post offices of the fourth class. A t one or
more windows in each of these post offices
there are one or more employees on duty
to sell these bonds. They will accept pay­
ment of the purchase price, deliver the
bond to the owner with his name written
upon it, and transmit a record of the trans­
action to the United States Treasury for
official registration.
If the purchaser buys the bond for
himself, he should give his full name in the
form in which he ordinarily uses it. This
precaution will prevent any confusion as
to ownership. If he buys it for another
person with the plan or expectation that
somebody else will collect the full amount

(4)

(5)

V a l u e .................

P R O T E C T I O N A G A I N S T LOSS

due at maturity—one of his children, for
instance—he should instruct the postoffice salesman to write on the bond the
name of the person to whom it is to be
paid. The purchaser may then take his
bond with him. If he wishes the Govern­
ment to hold it for him, the post-office
salesman will explain how that may be
arranged. Postal Savings depositors may
withdraw deposits without loss of interest
to buy United States Savings Bonds.
H O W T O CASH A BOND

To obtain cash for his bond, the owner
should take it—at any time after 60
days from the issue date—to any post
office where the bonds are on sale, or to
any incorporated bank or trust company.
In the presence of a post office or bank
official authorized to perform this service,
he establishes his identity, signs the re­
quest for payment which appears on the
back of the bond, and has the request
certified. The owner then sends the bond
to any Federal Reserve bank (the banker
or post-office clerk will tell him the address
of the nearest Federal Reserve bank) or
to the Division of Loans and Currency,
United States Treasury, Washington,
D. C. The Government will mail him a
check for the redemption value of the bond.

but the Secretary of the Treasury reserves
the right to terminate the offer at any time.
They are exempt from present and fu­
ture Federal, State, and local taxation, ex­
cept estate or inheritance taxes and Federal
surtaxes on income.
The issue prices of this series will re­
main the same. They will be on sale every
business day until further notice. A pur­
chaser may buy one or more bonds of
any denomination every week, every 2
weeks, or every month, or on any schedule
that suits his budget plans. But since the
bonds are intended for investment of
savings, there is a limit on the amount
any person may buy in 1 calendar year.
That limit is a total of $10,000 (maturity
value). He may,however, purchase$10,000
worth of bonds each separate calendar
year. Except for that limitation, he may
buy as many as he wishes at any time.

★

BUY A T ANY TIM E

These bonds, which are known as
Series A, United States Savings Bonds,
will remain on sale until further notice,
(6)

U. S . GOVERNMENT PRINTING OFFICE

(7)

2 ----1 6 7 0 1

U N ITED STATES
SAVINGS BONDS
★

★

★

★

★

★

A 7\[ew Form

★

°f

Government
Security
+

+

+

+

+

+

Q >7% increases in
<ip±0 . / D
10 years to

Y ^

d 'o w
(p ^ / .J U

increases in
io years to

Y ^ '0
'

$ 7 5 .0 0

*“

+

■ £ £ » to

$100

$ 3 7 5 .0 0

“ “ T o m a to

$500

$ 7 5 0 .0 0

“ Cre\Tyen r s t o $ 1 0 0 0
a

ON SALE AT POST OFFICES
FURTHER INFORMATION W ITHIN

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