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Dallas, Texas, December 23, 1949


To Agents Qualified to Pay or Issue
United States Savings Bonds:
Secretary of the Treasury Snyder has asked that your attention be called to the copy of his
statement concerning the payment at maturity of United States Savings Bonds of Series D-1940,
beginning on January 1, 1950, which is reproduced on the reverse side hereof.
It will be noted that any individual (natural person in his own right) owner or coowner desiring,
instead of receiving cash, to exchange his maturing bonds for bonds of Series E registered in his
own name in any authorized form of registration may do so at any time without regard to the
annual limitation of $10,000 maturity value ordinarily applicable to savings bonds of Series E.
However, if such owner or coowner desires to preserve the continuity of his investment he should
present his maturing bonds for payment in the month in which they mature and make the exchange
at that time. The Secretary wishes institutions which are qualified both as paying and issuing agents
to make the exchange for registered owners or coowners through their established payment and
issue procedures. Such institutions will note that where exchange is authorized bonds of Series E
may be issued up to such denominational amount as the proceeds of the maturing bonds will fully
cover or such lesser amount as the owner may direct, any remaining balance to be paid to the owner
or coowner of the bonds presented. Series D bonds owned by others than individuals are not accept­
able in payment of United States Savings Bonds of Series E.
While paying agents are not authorized to redeem savings bonds inscribed in guardianship
form, provision has been made whereby matured bonds of Series D-1940 registered in the name of
the guardian of the estate of a minor or incompetent will be eligible for exchange for bonds of
Series E in the presently authorized form of registration. When such a bond is submitted for rein­
vestment, the request for payment on the reverse side of the bond should be signed and properly
certified, and the bond, together with an application for a new bond should be forwarded to this
bank or the appropriate branch where the transaction will be completed.
All Series E bonds issued against the proceeds of Series D bonds must be dated as of the first
day of the month in which the Series D bonds are presented, and the notation “EXCH” imprinted
in the lower left corner on original registration stubs of bonds so issued. Rubber stamps bear­
ing the prescribed notation, and now in use, may be used. If additional stamps are needed, this bank
or the appropriate branch should be advised.
Registration stubs for Series E bonds issued concurrently against payment with the proceeds
of matured Series D bonds should be consolidated with registration stubs from bonds of Series E
sold for cash and included in the customary sales reports.
Attention of paying agents is called to current Treasury Department regulations which provide
that they may make payment of bonds of Series A, B, C, D and E to natural persons only. Bonds of
Series A, B, C and D which are inscribed in forms of registration other than to an individual
(authorized prior to April 1, 1940) should, after proper certification of the request for payment,
be forwarded to this bank or the appropriate branch for payment direct to the registrant entitled.
Yours very truly,

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (


Wednesday, December 21,1949

Secretary of the Treasury Snyder today reminded bond holders and
bond buyers generally of the fact that the Treasury is continuing its pro­
gram of urging individuals to buy more savings bonds.
In furtherance of this policy, the Secretary called attention to the fact
that individual holders of the Series D-1940 Savings Bonds, which start
maturing January 1, 1950, are permitted to reinvest the proceeds, as they
mature, in the Series E savings bonds which are currently on sale, without
regard to the annual limitation. This can be accomplished through the
established payment and issue procedure, and the Series E bonds so
acquired will be exempt from the $10,000 (maturity value) annual limi­
tation on holdings of Series E bonds. Holders will be permitted to reinvest
any part of the proceeds of their maturing bonds up to such denominational
amount as the proceeds will fully cover. Since Series E bonds may be pur­
chased only in the names of individuals, only those Series D-1940 Savings
Bonds held by individuals will be eligible for this privilege.
Any agent qualified to pay savings bonds, which is also an issuing agent,
can accomplish this exchange through the simple procedure of redeeming
matured bonds registered in the name of an individual owner or coowner,
and applying the proceeds to the purchase of new Series E bonds. The bonds
may also be exchanged, of course, at any Federal Reserve bank or branch,
or at the Treasury Department.
The new bonds will be dated as of the first day of the month in which
the matured Series D-1940 Savings Bonds are presented for payment. In
order to preserve the continuity of the investment, individual holders of
the maturing bonds should present them for exchange during the month
in which they mature.
The Secretary took occasion to express appreciation for the splendid re­
sponse of the people of the country to the Treasury’s savings bond program.