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F IS C A L . A G E N T O F T H E U N I T E D S T A T E S

Dallas, Texas, October 15,1945

To the Managing Officer of the Bank Addressed:
In his letter of October 8, 1945, addressed to all commercial banks, Secretary of the
Treasury Vinson urged their cooperation in assisting the Treasury to achieve fully the
objectives of the Victory Loan Drive. The total quota for the Victory Loan, which will be
the last great public drive for funds by the Treasury, is $11 billion. In order to keep
inflationary pressures at a minimum, $4 billion of the drive funds are to be obtained from
individuals and the remainder, $7 billion, from other non-banking investors.
The Victory Loan quotas for individuals and other non-banking investors must be
obtained, as stated in Secretary Vinson’s letter, by diverting available non-banking funds
into drive securities. The Treasury has designed the Victory Loan offerings in such a man­
ner as to secure the maximum investment of non-banking funds and to hold indirect par­
ticipation of commercial bank funds to a very minimum. Toward that end certain requests
have been made of commercial banks by the Secretary of the Treasury.
Banking institutions are urged to decline to make loans for the speculative purchase
of Government securities and, also, to decline to accept subscriptions from their customers
if it appears that such subscriptions are excessive or are made for speculative purposes.
Bank loans for the purpose of making permanent investments in Government securities
are not subject to criticism and will not violate the objectives of the drive. Such loans,
however, should be made on a short-term or amortization basis, fully repayable within a
period not longer than six months.
Each banking institution is urged to decline to purchase any outstanding securities
from non-banking investors on the understanding or condition that a subscription for a
substantially equivalent amount of drive securities will be made through the bank with
payment made through the war loan deposit account. Non-banking investors are urged to
refrain from selling securities previously acquired in order to obtain funds for the pur­
chase of drive securities. The assistance of banking institutions in discouraging such trans­
actions will be of great aid in achieving the drive objectives. Of course, this request of
the.Secretary of the Treasury does not preclude normal portfolio adjustments which may
be deemed necessary or desirable.
Finally, banking institutions are urged to hold to a minimum the transfer of funds
from one locality to another for the purchase of Government securities. As in previous
drives, sales credit will be given to the locality desired by the purchaser of drive securities.
In order to obtain uniform compliance with the Treasury’s requests to the greatest
extent possible, and to expedite processing subscriptions, all subscriptions for marketable
securities offered in the Victory Loan Drive must be accompanied by a certificate signed
by an officer of the bank submitting the subscription. The certificate will be incorporated
in the subscription form, a supply of which will be forwarded to all banks in the near
future. Bank officers receiving subscriptions are urged to familiarize themselves with the
content and purpose of the certificate. If there is any reasonable doubt that a particular
subscription does not conform to the spirit of the requests made by the Secretary of the

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Treasury in his letter of October 8 and re-emphasized fn this letter, ft is requested that
the bank receiving the subscription forward the case, with a statement o f the circum­
stances, to this bank or the appropriate branch. This bank, acting as Fiscal Agent for the
United States, will then advise the submitting bank as to the disposition which should be
made of the case.
Commercial banks have rendered an invaluable service in assisting the Treasury to
achieve the objectives of the several War Loan drives which preceded this Victory Loan.
I am sure that that same unselfish service will characterize the part played by commercial
banks in making the Victory Loan a complete success in every respect. To that end, your
wholehearted cooperation will be greatly appreciated.
If additional copies of this letter are desired for distribution to other officers o f your
bank who handle subscriptions we will be pleased to supply them to you.
Sincerely yours,


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