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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 ITE D S T A T E S Dallas, Texas, April 19, 1941 To the Member of the Federal Home Loan Bank System or other Issuing Agent Addressed: Through public announcement by Secretary of the Treasury Morgenthau on March 21, you were acquainted with preliminary plans for the issue of three new series of United States Savings Bonds on May 1, as a part of the program for financing the National defense. The enclosed brochure presents in brief summary form the essential character istics of the three new issues. Defense Savings Bonds of Series E will replace the present Series D savings bonds, and, like those bonds, are intended for the small investor. Under the provisions of Treasury Department Circular No. 657, copy pf which is enclosed, arrangements have been made for the issuance of Defense Savings Bonds, Series E, by qualified banks and other agencies. The terms of the agency circular outline fully the manner in which issuing agencies may qualify and the duties to be performed by such agencies. For your convenience in making application for such issuing privileges, there is enclosed a blank Application— Pledge Agreement, Form No. 384. The provisions regarding “ Designation and Qualifica tions” will be found in paragraphs 2 and 3 of the circular. Issuing agencies will be required to pledge eligible collateral security equal to 75 percent of the amount of their qualification. As more fully covered in the circular the principal operations may be summarized as follows: Qualification.— On approval of an Application-Pledge Agreement, this bank will issue a certification of qualification to the issuing agent. An issuing agent organ ized and chartered under State law will be required to submit with its application and pledge agreement a certification by the duly designated agent or representa tive of the appropriate Federal supervising agency to the effect that the agent desiring to qualify possesses appropriate authority under relevant State law and its charter to act as an issuing agent under the terms of Department Circular No. 657. A form of certification is enclosed for this purpose. Blank Bonds.— A supply of blank bonds of Series E, in registered form only, for issue against payment therefor will be furnished as requisitioned on the enclosed Form No. F.A. 72. Additional requisition forms are enclosed for your require ments. Application Forms.— Individual application forms for Series E bonds for use at the issuing bank, will be provided in reasonable quantities upon request. Instructions for Inscribing Bonds.— Only Defense Savings Bonds of Series E will be inscribed and issued by qualified agents and the conditions of their issue will be the same as those for the present Series D savings bonds, which they will replace. A bond may be registered only in the name of a natural person, that is, an individual, with the privilege of naming a coowner, or a beneficiary, if he This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) desires. Authorized forms of registration will be printed on the application form, and will be incorporated in the offering circular, and in the regulations govern ing savings bonds (Treasury Department Circular No. 530 (Fourth Revision)). Further and more specific instructions in this respect, and with respect to the preparation of the accounting stubs, will be given the agents that qualify. Suit able dating stamps will be furnished to qualified issuing agencies by this bank. Accounting.— Suitable forms and instructions for transmitting stubs, proceeds of sale of bonds and for maintaining accounts with the Federal Reserve Bank will be supplied to qualified issuing agencies. The savings bonds of Series F and Series G are intended for the larger investors, and registration is not restricted to individuals. They will be issued only by the Federal Reserve banks, though agents generally may handle applications for their customers. Application forms suitable for use in forwarding applications for savings bonds of Series F and Series G will be provided in reasonable quantities upon request. More detailed information regarding all three classes of bonds will be provided in the offering circulars (which will be forwarded to you shortly), in general publicity, and in publications of the American Bankers Association. A copy of Treasury Department Circular No. 530, Fourth Revision, containing regulations governing savings bonds, will be sent you as soon as available. This bank will also gladly answer any questions that may occur to you. In view of the fact that the inauguration of the sale of these new securities is scheduled for May 1, your prompt consideration of this matter is requested. Yours very truly, R. R. GILBERT President
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