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FE D E R A L R E S E R V E BANK O F DALLAS F IS C A L A C E N T O F T H E U N IT E D ST A T E S Dallas, Texas, June 6, 1944 ^o AII Banking Institutions in the Eleventh Federal Reserve District: There are enclosed several copies of a booklet describing briefly the issues of Government securities to be offered during the Fifth War Loan Drive. Additional copies will be furnished upon request. It is believed that the officers and employees of banks who plan to participate in the drive will find this booklet very useful for reference purposes during discussions with pros pective buyers of Government securities. The commercial bankers have played a most important part in the Treasury’s war-financ ing program and have contributed greatly to the success of previous War Loan drives. They have given unstintedly of their time and efforts, not only during the drives but also between drives. They have likewise rendered outstanding service on State and local War Finance com mittees and in selling securities directly to their customers and others, as well as in processing most of the subscriptions received in their respective communities. It is estimated that the commercial banks have processed between 80 and 90 per cent of all the Government securities sold in this district since Pearl Harbor. The attainment of the $16,000,000,000 goal during the Fifth War Loan Drive, of which $6,000,000,000 is to be sold to individuals, is a responsibility that must be shared by everyone. In view of the huge sum to be raised, the Treasury is depending upon bank officers and directors, as well as other leaders in their respective communities, to intensify their efforts in arousing their customers and friends to buy as many securities as possible during the drive. A much larger volume of securities must be sold in the forthcoming drive to individuals whose current income and savings in the form of currency and bank deposits are increasing substantially. This is necessary because, if individuals should attempt to use their savings and surplus income to buy the greatly curtailed supply of civilian goods, the inflationary pressures would become much more serious and the war effort might be affected adversely. Consequently, individuals should be impressed with the fact that they can best serve their own interests and those of the nation by investing their savings and excess current income in Government securities. Success in diverting these funds from the market places to the purchase of Government securities will contribute to the safeguarding of the future welfare of the country, as well as to the financing of the campaign for victory on the battlefields. This bank is vitally interested in the success of the drive, and it assures all the banks of the district and the War Finance committees that it stands ready to give every possible assistance to make the Fifth War Loan Drive an outstanding success. Sincerely yours, R. R. GILBERT President This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) Wai Loan Secuiities JU N E 12— JU LY 8, 1944 f C o n te n ts DESCRIPTIONS OF ISSUES 2 1 PAGES / 2 % Treasury Bonds of 1965-70........................................................... 4 2% Treasury Bonds of 1952-54.................... :..................................... 5 11^% Treasury Notes of Series B-1947...................... 6 V8% Certificates of Indebtedness of Series C-1945................................................ 7 United States W ar Savings Bonds, Series E............................................................... 8 United States Savings Bonds, Series F................................................... 10 United States Savings Bonds, Series G ...............................................................12 Treasury Savings Notes, Series C ............................................................... 14 TAX STATU S—ALL ISSU E S............................ 3 FIFTH WAR LOAN INFORM ATION.............. 2 REGISTRATION IN STRU CTIO N S................. 3 COMPUTATION OF INTEREST......................16 — W A R F IN A N C E C O M M I T T E E — r iF T H W AR LO AN IN F O R M A T IO N NATIONAL QUOTAS: The national quota in the 5th War Loan is $16 Billion, $6 Billion for individuals alone. Dvuing the period from June 12 to June 26, only sales to individuals will be reported. The campaign to sell individuals will be supplemented, starting June 26, with an intensive campaign to sell all other non-banking investors—the quota for which is $10,000,000,000. ALLOCATIONS: As in the Fourth War Loan, large busi ness organizations may allocate credit for their company purchases to branches in any county or community, to help local or State committees make their quotas. The request must be made at the time of the original pur chase and each amount allocated on Federal Reserve forms RA, or RA 1. To avoid unnecessary transfers of funds from one locality to another, the Treasvuy again urges th a t all su b sc rip tio n s by corporations a n d firm s be e n te re d a n d p a id for th ro u g h th e b a n kin g in s titu tio n s w here fu n d s are located. Subscriptions from insvuance companies will be cred ited only to the conununity in which the company has its home office. BANKS HOLDING TIME DEPOSITS: Concurrently with the Fifth War Loan drive, but not as a part of it, commercial banks will be permitted to subscribe to the 2% and 2j^% Treasury bonds, as well as'to Series F and Series G bonds, in lim ite d a m o u n ts for the in vestment of their time deposits. The total limit of such pvuchases, including those made for the same pvupose in accordance with the formula announced for the Fourth War Loan, shall not exceed in the aggregate, 20% of the combined amount of time certificates of , deposit (but only those issued in the names of indi viduals, and of organizations not operated for profit), and of savings deposits, as shown by the most recent call statem ent; or $400,000, whichever is less. No bank shall hold more than $100,000 (issue price) of Series F and Series G Savings Bonds (Series 1944) combined. BANK LOANS: The Treasury requests the cooperation of all banking institutions in declining to make specu lative loans for the purchase of Government securities. The Treasury is in favor of the banks making loans to facilitate permanent investment in Government securi ties provided th a t such loans are made in accord with the joint statem ent issued by the National and State Supervisory Authorities which states th a t “Such loans will not be subject to criticism, but should be on a short term or amortization basis, fully repayable within periods not exceeding six months.” TRADING RESTRICTIONS: The Treasury requests th a t there be no trading in the new marketable securities and no purchase of such securities other tHan on direct subscription until after July 8. R e g istra tio n of U nited S tates G overnm ent S e c u rities SUGGESTIONS Due to the tremendous volume of subscriptions for bonds which will be received dming the Fifth War Loan Drive, it is essential that everyone concerned lend his support to the attem pt to eliminate all possible errors and thereby minimize delays in the delivery of purchaser’s bonds. Attention to the following will be appreciated: Some of the issues are similar in name but no confusion will result if they are described as follows: 1. 2. 3. 4. 5. 6. 7. 8. ''Series E Waz Bonds" "Series F Savings Bonds" "Series G Savings Bonds" "2V^% Treasury Bonds" "2% Treasury Bonds" "114% Treasury Notes" "%% Certificates" "Series C Savings Notes" Of the above named issues, the first three are issued in registered form only and registration instructions must therefore be given. Be sure th a t a correct post office address is obtained. The purchaser of any of these three may ifhe so desires, name either (but not both) a co-owner or a beneficiary. The two issues of “Treasury Bonds” are available in either registered or bearer form. If the former is desired, registration instructions should be given. The “\y i% Treasvu*y Notes” and the “ ]/s% Certifi cates” are available in bearer form only. The “Series C Savings Notes” are inscribed in the name of the owner. Subscriptions should be forwarded promptly, for delay in the receipt of orders for savings bonds or savings notes may result in incorrect dating, while a delay in the receipt of orders for Treasury Bonds, Notes or Certificates may result in a charge for additional interest or a refusal of acceptance of the order. Normally, deliveries will be made by mail to the address of the purchaser and this is the preferable method but other means can be used if desired and clearly stated. TAX STATUS T he in c o m e on a ll F ifth W ar Loan issues is su b je c t to all Federal taxes, a n d th e securities are s u b je c t to esta te, in h e rita n ce, g ift or o th e r excise taxes. Federal or S ta te , b u t are exempt fro m all tax a tio n im p o sed on th e p rin c ip a l or in te re s t b y a n y S ta te or local taxing a u th o r ity . UNITED STATES OF AMERICA V 2 2 . Percent Treasury Bonds ol 1965-70 ADDITIONAL ISSUE Dated February 1, 1944, with interest from June 26, 1944 Due March 15, 1970. Interest payable March 15 and September 15. Price: Par and accrued interest. Interest: 2j^% PRINCIPAL FEATURES: 1. D EN O M IN ATIO N S: $500, $1,000, $5,000, $10,000, $100,000 and $1,000,000. 2. F O R M OF ISSU E: Bearer bonds with interest cou pons attached, and bonds registered as to principal and interest. Interchangeable. 3. RED EM PTIO N: Non-callable until March 15, 1965; then and thereafter a t par and accrued interest, on any interest date, at the option of the United States, on four months’ notice. 4. SPECIAL FEATU RE: Upon dea th o fo w n e r , these bonds may be redeemed, at the option of the duly constituted representatives of the deceased owner’s estate, a t par and accrued interest for the purpose of satisfying Federal estate taxes. 5. C O LLA TE RA L: These bonds can be used as bank loan collateral. 6. M A R K E T A B IL IT Y : These bonds will be readily marketable after July 8. 7. WHO M A Y B U Y : Investors of all types may pur chase but conunercial banks may subscribe for only a limited part of their savings deposits in these bonds. Except for this, and for the bonds of this issue simi larly pvuchased at the time of the Fourth War Loan, such banks may not hold them for their own account until after February 1, 1954. 8. W H E RE TO B U Y : Federal Reserve Banks and branches and at the Treasmy Department, Wash ington. Banking institutions may submit subscrip tions for the aCcount of customers. 9. A M O U N T IN V E ST O R M A Y B U Y: There is no limit except on purchases by commercial banks. 10. SU B SC R IP T IO N PRICE: In the case of a subscrip tion for $500 or $1000, the subscription price is par throughout the drive. In the case of all subscriptions in excess of $1000,' the subscription price is par and accrued interest from June 26, 1944. One day’s accrued interest is $0,068 per $1000, and a computation of interest table appears on page 16, T h e a b o v e d e s c r ip t io n , b e in g o n ly a s u m m a r iz a t i o n , r e f e r e n c e is m a d e t o t h e o f f i c i a l c i r c u l a r f o r d e t a i l e d in fo r m a t io n . • UNITED STATES OF AMERICA 2 Percent Treasury Bonds of 1952-54 Dated and bearing interest from June 26, 1944. Due June 15, 1954. Issued in bearer or registered form at option of the purchaser. Interest payable June 15 and December 15. Price: Par and accrued interest. Interest: 2% PRINCIPAL FEATURES: 1. D EN O M IN A TIO N S: $500, $1,000, $5,000 $10,000, $100,000 and $1,000,000. 2. F O R M OF ISSU E : Bearer bonds with interest cou pons attached, and bonds registered as to principal and interest. Interchangeable. 3. RED EM PTIO N: Non-callable until June 15, 1952; then and thereafter at par and accrued interest, on any interest date, a t option of the United States, on four months’ notice. 4. CO LLATERAL: These bonds can be used as bank loan collateral. 5. M A R K E T A B IL IT Y . These bonds will be readily marketable after July 8. 6. W HO M A Y B U Y: Investors of all types may pur chase but commercial banks may subscribe for only a limited part of their savings deposits.in these bonds for their own account. Commercial banks will be per mitted to buy these bonds in the open market after July 8, 1944. 7. W H E RE TO B U Y : Federal Reserve Banks and branches and at the Treasmy Department, Washington. Banking institutions may submit subscriptions for the account of customers. 8. A M O U N T IN V E ST O R M A Y B U Y. There is no limit except on pmchases dming the drive by commer cial banks. 9. SU B SC R IP TIO N PRICE: In the case of a subscrip tion for $500 or $1000, the subscription price is par throughout the drive. In the case of subscriptions in excess of $1000, the subscription price is par and ac crued interest from June 26, 1944. One day’s accrued interest is $0,055 per $1000, and a computation of interest table appears on Page 16. T h e a b o v e d e s c r ip t io n , b e in g o n ly a s u m m a r iz a t i o n , re fe re n c e ta ile d is m ade in fo r m a tio n . to th e o ffic ia l c ir c u la r fo r de UNITED STATES OF AMERICA • VA P e ic e n t T ie a s n iy N otes ol S e iie s B-1947 Dated and bearing interest from Jvme 26, 1944. Due March 15, 1947. Issued in bearer form only. Interest payable March 15 and September 15. Price: Par and accrued interest. Interest: lJ^ % PRINCIPAL FEATURES: 1. D EN O M IN ATIO N S: $1,000, $5,000, $10,000, $100,000 and $1,000,000. 2. F O R M OF ISSU E: Bearer notes, with interest cou pons attached. These notes will not be issued in reg istered form. 3. REDEM PTIO N: Not subject to call for redemption prior to maturity. 4. C O LLATERAL: These notes can be used as bank loan collateral. 5. M A R K E T A B IL IT Y : These notes will be readily marketable after Jvdy 8. 6. W H O M A Y B U Y: Investors of all types except com mercial banks which are not permitted to subscribe for the notes for their own account but may pvu"chase them in the open market after July 8, 1944. 7. W H E RE TO B U Y : Federal Reserve Banks and branches and at the Treasmy Department, Washington. Banking institutions may submit subscriptions for the account of customers. 8. AM O U N T IN V E ST O R M A Y B U Y : There is no limit to the amovmt eligible purchasers may buy. 9. SU B SC R IP TIO N PRICE: Par and accrued interest. One day’s accrued interest is $0,034 per $1000, and a computation of interest table appears on page 16. T he above description, being o n ly a su m m a riza tio n , reference is m ade to th e official circular for d e tailed in fo rm a tio n . . UNITED STATES OF AMERICA Vs P e rc e n t T re a s u ry C e rtific a te s of In d e b te d n e s s of S e rie s C-1945 Dated and bearing interest from June 26, 1944. Due Jvme 1, 1945. Interest payable on December 1, 1944 and June 1, 1945. Price: Par and accrued interest. Interest: J4% PRINCIPAL FEATURES: 1. D EN O M IN A TIO N S: $1,000, $5,000, $10,000, $100,000 and $1,000,000. 2. B E A R E R FO RM : Certificates will be issued in bearer form only, with two coupons attached. 3. R E D EM PTIO N: N ot subject to call for redemption prior to m aturity. 4. C O LLATERAL: These certificates can be used as bank loan collateral. 5. M A R K E T A B IL IT Y : These certificates will be readily marketable after Jvdy 8. 6. W H O M A Y B U Y : Investors of all types except com mercial banks who are not permitted to subscribe for the certificates for their own account but may pvu:chase them in the open market after July 8, 1944. 7. W H E RE TO B U Y : Federal Reserve Banks and branches, and at the Treasiuy Department, Washing ton. Banking institutions may submit subscriptions for the account of customers. 8. A M O U N T IN V E ST O R M A Y B U Y : There is no limit to the amoimt eligible purchasers may buy. 9. SU B SC R IP T IO N PRICE: The subscription price is par and accrued interest from June 26, 1944. One day’s accrued interest is $0,024 per $1000, and a com putation of interest table appears on page 16. T h e above description, being o n ly a su m m a riza tio n , reference is m a d e to th e official circular fo r d e ta iled in fo rm a tio n . U n ite d S ta te s W a i S a v in g s S e r ie s B ends E Dated the first day of the month in which payment is received. Due 10 years from issue date. Price: 75% of m atiuity value. Yield: About 2.9% compounded semi-annually if held to maturity. PRINCIPAL FEATURES: 1. D E N O M IN A T IO N S: (m a tu r ity value) $25 $50 $100 $500 $1000 C o rresponding issu e (cost) value $18.75 $37.50 $75 $375 $750 2. R E G IS T R A T IO N ; Issued in registered form only, not trans ferable. May be registered in the name of one individual, in the names of two (but not more than two) individuals as co-owners, or in the name of one individual payable on death to one other designated individual. 3. R E D E M P TIO N : Non-callable prior to matvu-ity. At the option of the owner, however, they may be redeemed at any time after 60 days from the issue date without advance notice at values shown in the table on the opposite page. 4. C O L L A T E R A L ; These bonds may not be used as collateral. 5. M A R K E T A B IL IT Y : They cannot be sold, but, as stated in paragraph 3 above, can be converted into cash, at any Federal Reserve Bank, or Branch, or at the Treasury Department. 6. W H O M A Y B U Y : Individuals only. 7. W H E R E TO B U Y : The bonds are continuously available for purchase at any Federal Reserve Bank or Branch, at the Treasvuy Department, at post offices, at commercial and savings banks, at savings and loan associations, and at other qualified agencies, including many retail stores, theatres and radio stations. Purchase applications must be accompanied by payment of the purchase price in full. 8. A M O U N T IN V E S T O R M A Y B U Y : Not more than $5,000 maturity value may be registered in the name of any one person in any one calendar year. With respect to bonds held in coownership form, such linutation may apply to either of the co-owners, or may be apportioned between them. Thus a person . who has already purchased in one calendar year $5,000 maturity value of bonds registered in his own name, may purchase addi tional bonds in co-ownership form, provided that any one desig nated by him as co-owner would not thereby acquire an ex cess amount. 9. IN T E R E S T P A Y M E N T S : None. Interest accrues by virtue of increases in redemption value after the first year and at the end of each half-year period thereafter until redemption or maturity. T h e above d escrip tio n , b ein g o n ly a s u m m a r iz a tio n , reference is m a d e to th e o fficia l circu lar fo r d e ta ile d in fo r m a tio n . U n ife d S ta te s W a r S a v in g s S e r ie s B onds E TABLE OF REDEMPTION VALUES AND INVESTMENT YIELDS Y ields are expressed in terms of rate per cent per annum , compovurded sem iannually. Reference is made to the official circular for exam ples of other denom inations. A pproxim ate $100.00 investm ent yield on pur $75.00 chase price fromissue date to be Redemption values during each ginning of each halfhalf-year period year period Maturity Value......... $25.00 Issue Price................ $18.75 Period after issue date $50.00 $37.50 P ercen t First 3^ year____ $18.75 18.75 Y2 to 1 year.......... 1 to \ Y years....... 18.87 i 3^ to 2 years...... 19.00 $37.50 37.50 37.75 38.00 $75.00 75.00 75.50 76.00 0.60 .67 .88 years....... years...... years...... years..... 19.12 19.25 19.50 19.75 38.25 38.50 39.00 39.50 76.50 77.00 78.00 79.00 .99 1.06 1.31 1.49 4 to 4j^ years___ 4 ^ to 5 years___ 5 to 5j^ years___ S Y to 6 years...... 20.00 20.25 20.50 20.75 40.00 40.50 41.00 41.50 80.00 81.00 82.00 83.00 1.62 1.72 1.79 1.85 6 to 6 Y years___ 6 Y to 7 years___ 7 to l Y years___ l Y to 8 years..... 21.00 21.50 22.00 22.50 42.00 43.00 44.00 45.00 84.00 86.00 88.00 90.00 1.90 2.12 2.30 2.45 8 to ZYi, years----iY , to 9 years___ 9 to 9p^ years...... ^Yi. to 10 years__ 23.00 23.50 24.00 24.50 46.00 47.00 48.00 49.00 92.00 94.00 96.00 98.00 2.57 2.67 2.76 2.84 $25.00 $50.00 $100.00 2.90 2 to lY , 2 Y2 to 3 3 to 33^ ZY. to 4 MATURITY VALUE (10 years from issue date)___ U N IT E D STATES S A V IN G S S E R IE S BONDS F Dated the first day of the month in which payment is received. Due 12 years from issue date. Price: 74% of matvuity value. Yield: About 2.53% compounded semi-annually, if held to m aturity. PRINCIPAL FEATURES: 1. D EN O M IN ATIO N S: (^maturity value) $25. $100. $500. $1,000. $5,000. $10,000. corresponding issu e (cost) value $18.50 $ 74. $370. $ 740. $3,700. $ 7,400. 2. R E G IS T R A T IO N : Issued in registered form only, not transferable. May be registered in the name of one in dividual, in the names of two (but not more than two) individuals as co-owners, in the name of one individual payable on death to one other designated individual, in the name of a fiduciary, the owner or custodian of public funds, or any incorporated or unincorporated body. 3. R ED EM PTIO N: These bonds cannot be called before m aturity. At the option of the owner, however, they may be redeemed on the first day of any calendar month after six months from the issue date, upon one m onth’s written notice a t values shown in the table on the opposite page. 4. C O LLATERAL: These bonds may not be used as collateral. 5. M A R K E T A B IL IT Y : They cannot be sold, but, as stated in paragraph 3 above, can be converted into cash, at any Federal Reserve Bank, or Branch, or at the Treasxu-y Department. 6. W H O M A Y BUY: Anyone (see paragraph 2). However, commercial banks may invest only a limited part of their savings deposits in these bonds. 7. W H E R E TO B U Y : The bonds are continuously avail able for purchase a t any Federal Reserve Bank or Branch, or at the Treasxu'y Department. Banks and other sales agencies may enter applications for customers. 8. A M O U N T IN V E ST O R M A Y B U Y : Not more than $100,000 (issue price) of Series F and Series G bonds in the aggregate may be purchased by any one person in his own name or in the name of himself and another as co-owner in any one calendar year. 9. IN T E R E S T P A Y M E N T S: None. Interest accrues by virtue of increases in redemption value after the first year and a t the end of each half-year period thereafter until redemption or matvuity. T h e a b o v e d e s c r ip t io n , b e in g o n ly a s u m m a r iz a t i o n , r e f e r e n c e is m a d e t o t h e o f f i c i a l c i r c u l a r f o r d e ta ile d in fo r m a tio n . 10 U N IT E D STATES S A V IN G S S E R IE S BONDS F TABLE OF REDEMPTION VALUES AND INVESTMENT YIELDS Yields are expressed in terms of rate percent per annum, compounded semiannually. Reference is made to the official circular for examples of other denominations. Maturity Value____ Issue Price................ Period after issue date A pproxim ate $100.00 $500.00 investm ent $370.00 yield on pur $74.00 chase price fromissue date to be Redemption values during each ginning of each halfhalf-year period year period $25.00 $18.50 P ercen t First J^ year....... N nt rariasm ahla Yi to 1 year.......... $18.50 $74.00 74.20 18.55 1 to lJ^ years..... 74.50 18.62 l3^ to 2 years___ $370.00 371.00 372.50 0.66 .27 .45 2 to lY i years----2j^ to 3 years___ 3 to 3 ^ years___ zy% to 4 years..... 18.72 18.85 19.00 19.17 74.90 75.40 76.00 76.70 374.50 377.00 380.00 383.50 .61 .75 .89 1.03 4 to 4j^ years----4j^ to 5 years___ 5 to S y years----S y to 6 years___ 19.40 19.65 19.92 20.22 77.60 78.60 79.70 80.90 388.00 393.00 398.50 404.50 1.19 1.34 1.49 1.63 6 to 6 y years___ & y to 7 years..... 7 to 7H years----7j^ to 8 years___ 20.55 20.87 21.20 21.52 82.20 83.50 84.80 86.10 411.00 417.50 424.00 430.50 1.76 1.87 1.96 2.03 8 to 8j^ years----8j^ to 9 years___ 9 to 9 y years----9 y to 10 years__ 21.85 22.17 22.50 22.85 87.40 88.70 90.00 91.40 437.00 443.50 450.00 457.00 2.09 2.14 2.19 2.24 10 to 1 0 y years.... lO y to 11 years.... 11 to ll3 ^ years.... ll J ^ to 12 years.... 23.22 23.62 24.05 24.50 92.90 94.50 96.20 98.00 464.50 472.50 481.00 490.00 2.29 2.34 2.40 2.46 $100.00 $500.00 2.53 MATURITY VALUE (12 years from issue date)....... $25.00 11 U N IT E D STATES S A V IN G S S E R IE S BONDS 6 Dated first day of the month in which payment is received Due 12 years from issue date. ' Price: 100% Yield: 2.50% if held to maturity. Interest payable semi-annually by Treasury check. PRINCIPAL FEATURES: 1. D EN O M IN ATIO N S: $100, $500, $1,000, $5,000 and $ 10 ,0 0 0 . 2. R E G IS T R A T IO N : Issued in registered form only, not transferable. May be registered in the name of one in dividual, in the names of two (but not more than two) individuals as co-owners, in the name of one individual payable on death to one other designated individual, in the name of a fiduciary, the owner or custodian of public funds, or any incorporated or unincorporated body. 3. R ED EM PTIO N: These bonds cannot be called before m aturity. At the option of the owner, however, they may be redeemed on the first day of any calendar month after six months from the issue date, upon one m onth’s written notice a t values shown in the table on the opposite page. 4. SPECIAL FEATU RE: Upon the death of the owner, or co-owner, if a natural person, or if held by a trustee or other fiduciary, upon the death of any person which results in the termination of the trust. Series G bonds may be redeemed at par, if application for redemption is made within fom months after the date of death. If the trust is terminated only -in part, redemption at par will be -made only to the extent of the pro rata portion of the trust so terminated, to the next lower multiple of $100. 5. C O LLATERAL: These bonds may not be used as collateral. 6. M A R K E T A B IL IT Y : These bonds cannot be sold, but, as stated in paragraph 3 above, can be converted into cash, at any Federal Reserve Bank, or Branch, or at the Treasury Department. 7. W HO M A Y BUY: Anyone (see paragraph 2). However, commercial banks may invest only a limited part of their savings deposits in these bonds. 8. W H E R E TO B U Y: The bonds are continuously avail able for purchase at any Federal Reserve Bank, or Branch, or a t the Treasury Department. Banks and other sales agencies may enter applications for customers. 9. A M O U N T IN V E S T O R M A Y B U Y : Not more than $100,000 (issue price) of Series G and Series F bonds in the aggregate may be purchased by any one person in his own name or in the name of himself and another as co-owner in any one calendar year. T h e a b o v e d e s c r ip t io n , b e in ^ o n ly a s u m m a r iz a t io n , r e f e r e n c e is m a d e t o t h e o f f i c i a l c i r c u l a r f o r d e ta ile d in fo r m a tio n . 12 U N IT E D STATES S A V IN G S S E R IE S BONDS 6 Cvurent income bonds, issued at par. Interest at 2j^% per annum payable semi-annually by Treasury check mailed to the owner. If redeemed prior to m aturity, the yield is less than 2j^% as shown in the following table. Yields are expressed in terms of rate percent per annum and take into account the interest received in semi-annual payments prior to redemption. R eferetice is m a d e to th e o fficia l circular for exa m p les o f o th e r d e n o m in a tio n s . A pproxim ate $1,000 investm ent yield on pur $1,000 chase price fromissue date to be Redemption values during each ginning of each halfhalf-year period year period Percent N ot redeemable... $98.80 $494.00 $988 0.16 97.80 489.00 978 .30 96.90 484.50 969 .44 Maturity Value.......... $100.00 $500.00 Ifflue Price................. $100.00 $500.00 Period after issue date First 3^ year____ Y2 to 1 year.......... 1 to lJ^ years._.... \Y i to 2 years...... years___ years...... years...... years___ 96.20 95.60 95.10 94.80 481.00 478.00 475.50 474.00 962 956 951 948 .61 .75 .88 1.04 4 to 4j^ years___ ^Yi to 5 years___ 5 to S Y years___ S Y to 6 years...... 94.70 94.70 94.90 95.20 473.50 473.50 474.50 476.00 947 947 949 952 1.20 1.35 1.51 1.66 6 to 6 Y years___ 6 Y to 7 years..... 7 to l Y years...... l Y to 8 years...... 95.50 95.80 96.10 96.40 477.50 479.00 480.50 482.00 955 958 961 964 1.79 1.89 1.98 2.05 8 to 9>Yl years._.... %Y to 9 years___ 9 to ^Yi years___ 9 Y to 10 years__ 96.70 97.00 97.30 97.60 483.50 485.00 486.50 488.00 967 970 973 976 2.12 2.18 2.23 2.27 10 to 1 0 ^ years.— i03^ to 11 years— 11 to 11Y years.— W Y to 12 years.... 97.90 98.20 98.60 99.20 489.50 491.00 493.00 496.00 979 982 986 992 2.31 2.35 2.39 2.44 2 to lY i 2 Y2 to 3 3 to Z Y ZY% to 4 MATURITY VALUE (12 years from issue date)....... $100.00 $500.00 $1,000 2.50 ________ 13 UNITED STATES OF AMERICA •• TREASURY SAVINGS NOTES SERIES C' Dated first day of month in which paid for. ■ Due 3 years from issue date. Acceptable a t par and accrued interest in payment of Federal income, estate, and gift taxes during and after second calendar month after month of purchase. Redeemable for cash before maturity, as shown below. Price: 100% Yield: 1.07% ifheld to m aturity. PRINCIPAL FEATURES: 1. D E N O M IN A TIO N S: $100, $500, $1,000, $5,000, $10,000, $100,000, $500,000, $1,000,000. 2. R E G IS T R A T IO N : Each note will be inscribed in the name of a single owner. 3. RED EM PTIO N: These notes cannot be called before m aturity. At the option of the owner, however, they may be redeemed at any time during and after the sixth calendar month after the month of issue, without advance notice, for cash at par and accrued interest, excep t th a t notes inscribed in the name of a bank th a t accepts demand deposits are redeemable at par only. 4. C O LLATERAL: These notes can be used as collateral for loans from banking institutions only. If a bank acquires a note through the failure of a loan to be paid, the note may be redeemed by the bank at any time a t par plus accrued interest to the month in which the note is acquired. 5. ACCEPTABLE FO R T A X E S: Notes may be pre sented by the owner (including a bank that accepts demand deposits) for Federal income, estate and gift taxes a t par and accrued interest during and after the second calendar month after the month of purchase. 6. W H O M A Y B U Y : Individuals, banks, other corp>orations, public bodies, trusts, etc. (Note: The notes may not be inscribed in names of joint owners -or co-owners, and notes inscribed in name of partnership may not be used in payment of Federal taxes.) 7. W H E R E TO B U Y : The notes are continuously avail able for pmchase a t 100% a t any Federal Reserve Bank, or Branch, or at the Treasury Department. Pxu-chase applications must be accompanied by pay ment of the purchase price in fxdl. 8. A M O U N T IN V E ST O R M A Y B U Y : Unlimited. 9. IN T E R E S T : Interest accrues each month after month of issue on a graduated scale as shown in the table on the opposite page. T h e a b o v e d e s c r ip t io n , b e in g o n ly a s u m m a r iz a t i o n , re fe r e n c e is m ade to th e ta ile d in fo r m a tio n . 14 o ffic ia l c ir c u la r fo r de T R E A S U R Y S A V I N G S N O T E S , S E R IE S C TABLE OF TAX-PAYMENT OR REDEMPTION VALUES AND INVESTMENT YIELDS R efw u x ce iu m a d e to th e o H id a I c irc u la r for exam ple> of o th e r d en o m irm tio n a. Par Value (issue price during month of issue) Amount of interest ac crual each month a fte r month of issue A pproxim ate investm ent yield on $1,000. $5,CXX). par am ount fromissue date to Tax-Payment or Redemp beginningof tion vdues during each eachm onthly monthly period a fte r period month of issue> thereafter. Interest accrues at rate of $0.50 per month per $1,000. par amount First month........................ $1,000.50 Second month..................... 1,001.00 Third month....................... 1,001.50 Fourth month..................... 1,002.00 Fifth month........................ 1,002.50 Sixth month........................ 1,003.00 Interest accrues at rate of $0.80 per month per $1,000. par amount Seventh month................... 1,003.80 Eighth month..................... 1,004.60 Ninth month...................... 1,005.40 Tenth month..................... . 1,006.20 EleVenth month.................. 1,007.00 ,'Twelfth month.................... 1,007.80 Interest accrues at rate of $0.90 per month per $1,000. par amount Thirteenth month............... 1,008.70 Fourteenth month............... 1,009.60 Fifteenth month.......'.......... 1,010.50 Sixteenth month................. 1,011.40 Seventeenth month............. 1,012.30 Eighteenth month............... 1,013.20 Interest accrues at rate of $1.00 per month per $1,000. par amount 1,014.20 Nineteenth month_______ Twentieth month................ 1,015.20 Twenty-first month............. 1,016.20 Twenty-second month......... 1,017.20 Twenty-third month........... 1,018.20 Twenty-fourth month......... 1,019.20 Interest accrues at rate of $1.10 per month per $1,000. par amount Twenty-fifth month............ 1,020.30 Twenty-sixth month............ 1,021.40 Twenty-seventh month....... 1,022.50 Twenty-eighth month____ 1,023.60 Twenty-ninth month........... 1,024.70 Thirtieth month.......... ........ 1,025.80 Thirty-first month............... 1,026.90 Thirty-second month........... 1,028.00 Thirty-third month............. 1,029.10 Thirty-fourth month_.......... 1,030.20 Thirty-fifth month.............. 1,031.30 Thirty-sixth month............. 1,032.40 (MATURITY) P ercen t $5,002.50 5,005.00 5,007.50 5,010.00 5,012.50 5,015.00 .60 .60 .60 .60 .60 .60 5,019.00 5,023.00 5,027.00 5,031.00 5,035.00 5,039.00 .65 .69 .72 .74 .76 .78 5,043.50 5,048.00 5,052.50 5,057.00 5,061.50 5,066.00 .80 .82 .84 .85 .86 .88 5,071.00 5,076.00 5,081.00 5,086.00 5,091.00 5,096.00 .89 .91 .92 .93 .94 .95 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 .97 .98 .99 1.00 1.01 1.02 1.03 1.04 1.05 1.05 1.06 1.07 ' N o t a ccep ta b le in p a y m e n t o i taxes u n til d u r in g a n d a fte r th e sec o n d calendar m o n th a fte r th e m o n th o f issu e, a n d n o t red eem a b le fo r ca sh u n til d u rin g a n d a fte r th e s ix th ca len d a r m o n th a fte r th e m o n th o f issue. 15 COMPUTATION OF INTEREST Interest from June 26, 1944, will accrue on the lJ^ % Treasvny Notes, 2% Treasury Bonds, 2j^% Treasury Bonds and the J^% Certificates. The following table shows the amount of interest pay able per $1000 on each of the issues for each day from June 27 to Jvdy 8. Interest should be figured to the date on which the funds will be available at a Federal Reserve Bank or Branch, or a t the Treasury. Date Number lH7o 2% 2'A% %% of payment Notes Treasury Treasury Certificates received day’s Series B Bonds of Bonds of of by bank interest 1947 1952-54 1965-70 Indebtedness June 27 28 29 30 July 1 2 3 4 5 6 7 8 1 2 3 4 5 Sunday 7 Holiday 9 10 1 1 1 2 $0,034 0.068 $0,055 0.136 0.102 0.110 0.165 0.220 $0,068 0.136 0.204 0.272 $0,024 0.048 0.072 0.096 0.170 0.275 0.340 0.120 0.238 0.385 0.476 0.168 0.306 0.340 0.374 0.408 0.495 0.550 0.605 0.660 0.612 0.680 0.748 0.816 0.216 0.240 0.264 0.288 Accrued interest is waived on subscriptions for $500 or $1000 received during the drive for 2% Treasury Bonds or 2j^% Treasury Bonds. No accrued interest is payable by the purchaser of Savings Bonds, Series E, F or G, or Savings Notes, Series C. 16