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 IS 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, June 2,1942.

To All Banking Institutions, and Others Concerned,
in the Eleventh Federal Reserve District:
For your information, there is quoted below an excerpt from a press statement
released May 25, 1942, by the War Savings Staff of the Treasury Department:
“ The limitation on holdings of War Savings Bonds, Series F and Series G, will
be raised from $50,000 to $100,000, effective July 1, the Treasury Department
announced today. There will be no change in the present limit of $5,000 in indi­
vidual holdings of Series E Bonds in any calendar year.
“ The Treasury’s decision to increase the limitations on the F and G Bonds was
made as the result of numerous requests by purchasers who asked the opportunity
to put more of their money into the war effort through these securities. Treasury
officials emphasized that this is not a new Bond issue and not a new series of Bonds.
The $100,000 limitation on holdings will be placed on a calendar year basis effective
for the current calendar year, 1942.
“ Unlike Series E Bonds which may be registered only in the names of indi­
viduals, Series F and G Bonds are intended primarily for large investors and may
be registered in the names of fiduciaries, organizations, corporations (other than
banks receiving demand deposits), unincorporated associations, labor unions and
other groups as well as in the names of individuals.
“ The Series F Bond is a twelve-year appreciation Bond, issued on a discount
basis at 74 percent of maturity value. If held to maturity, twelve years from the
date of issue, the Bond draws interest equivalent to 2.53 percent a year computed
on the purchase price, compounded semi-annually.
“ The Series G Bond is a twelve-year current income Bond dssued at par, and
draws interest of 2.5 percent a year, paid semi-annually by Treasury check.
“ The new limitation on holdings of $100,000 in any one calendar year in either
Series F or Series G, or in both Series combined, is on the cost price, not the maturity
value.
“ The Treasury pointed out that thousands of individuals, corporations, labor
unions and other organizations have this year already purchased $50,000, the present
limit in any one calendar year. Under the new regulations, however, these Bond
holders will be permitted to make additional purchases of $50,000 in the remaining
six months of the year, from July 1 until December 31, 1942.”

Yours very truly,
R. R. GILBERT
President

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

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