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FEDERAL RESERVE BANK OF DALLAS F IS C A L A G E N T O F T H E U N ITE D S T A T E S Dallas, Texas, April 6, 1964 NEW $75 DENOMINATION SERIES E SAVINGS BOND To All Issuing Agents in the Eleventh Federal Reserve District: There is enclosed a copy of the Third Amendment dated January 27, 1964, to Treasury Department Circular No. 653, Fifth Revision, dated September 23, 1959, which authorizes the issuance beginning May 1, 1964, of a $75 (maturity value) Series E bond. The bond will bear the portrait of the late President John F. Kennedy and will have an issue price of $56.25. Issuing agents wishing to provide this new denomination bond for their customers may requisition on Form FA-72 a small supply of the bond. The form should be modified by inserting $75.00 and $56.25, the maturity and issue values of the new bond, in the blocks provided for the $10,000 denomination. Your initial order for the new bonds should be submitted on a separate Form FA-72, since shipment will not be made until the latter part of April. In the beginning, agents should not attempt to maintain a normal stock of this denomination, but should order only what they consider necessary for their immediate needs. Under no circumstances should the new $75 bond show an issue date earlier than May 1, 1964, or be delivered to any purchaser before that date. The existing supplies of Forms PD 2507 and FA-907 (Series E bond applications) and PD 3252 (Series E bond stub transmittal letter) as well as requisition Form FA-72, referred to above, should con tinue to be used and modified to provide for the new denomination. With respect to Forms FA-72, PD 2507 and FA-907, the denomination ($75) and the issue price ($56.25) may be inserted on the forms after lining out the $10,000 denomination and its related $7,500 issue price. Issuing agents are requested to account for their $75 stubs and spoiled bonds by using the block on Form PD 3252 provided for the $10,000 denomination after changing the heading of the block on all copies of the form to $75. In the event any $10,000 stubs are to be accounted for, they should be submitted on a separate transmittal letter until such time as a revised Form PD 3252 can be furnished containing provision for the $75 denomination. Additional copies of the enclosed amendment will be furnished upon request. Yours very truly, Watrous H. Irons President This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) UNITED STATES SAVINGS BONDS SE R IE S E 1964 Third Amendment to Department Circular No* 653 Fifth Revision, dated September 23, 1959 T reasu ry O f f ic e D of epartm ent, the S ecretary, Washington, January 27, 196J. Fiscal Service Bureau of the Public Debt Sections 316.5, 316.9, and 316.18 o f Depart ment Circular No. 653, Fifth Revision, dated September 23,1959, as amended (31 CFR, Part 316, Supp. 1963), are hereby amended effective May 1, 1964, to read as follow s: Sec. 316.5. Description {registered form, only—denominations—issue date, etc.).— Series E bonds are issued only in registered form and in denominations o f $25, $50, $75, $100, $200, $500, $1,000, $10,000, and $100,000 (which is provided for trustees o f employees’ savings plans). Each bond will bear the facsimile sig nature o f the Secretary of the Treasury and an imprint o f the Seal of the Treasury Depart ment. At the time o f issue, the issuing agent will inscribe on the face o f each bond the name and address of the owner and the name o f the coowner or beneficiary, if any; will enter in the upper right-hand portion o f the bond the issue date (which shall be the first day o f the mdnth and year in which payment of the issue price is received by an authorized issuing agent); and will imprint the agent’s dating stamp in the lower right-hand portion to show the date the bond is actually inscribed. As indicated in sec tion 316.3(b), the issue date is important in de termining the date on which the bond becomes redeemable, its maturity date and yield thereto as well as its intermediate yields. Accordingly, it should not be confused with the date on the agent’s dating stamp. A Series E bond shall be valid only if an authorized issuing agent re ceives payment therefor, duly inscribes, dates, stamps, and delivers it. See section 316.6 for forms o f registration and section 316.9 for issue prices of bonds. Sec. 316.9. Issue prices o f bonds.— The issue prices o f the various denominations o f Series E bonds follow : 720-161 0 — 64 Issue ( purchase ) Denomination (face value) $25.00 $50.00 $75.00 $ 100.00 $200.00 $500.00 price . . . . . . $1, 000. 00 . $10, 000.00 . $100, 000. 001 $18. 75 37.50 56.25 75.00 150.00 375.00 750.00 7, 500. 00 75, 000. 00 1 The $100,000.00 denomination Is available for purchase only by trustees of employees’ savings plans described In sec tion 316.7(e). Sec. 316.18. Payment or redemption {in gen eral) .—A Series E bond may be redeemed at the option of the owner at any time after two months from the issue date at the appropriate redemption value as shown in the tables at the end o f this circular, which apply to bonds bear ing various issue dates back to May 1, 1941. The redemption values o f bonds in the denom ination o f 100,0001 (which was authorized as of January 1, 1954) are not shown in those tables. However, the redemption values of bonds in that denomination will be equal to the total re demption values of ten $10,000 bonds bearing the same issue dates. The redemption values before maturity o f bonds of Series E in the de nominations o f $75 are set forth in the ap pended table. A Series E bond in a denomina tion higher than $25 (face value) may be re deemed in part but only in the amount o f an authorized denomination or multiple thereof. Payment of a Series E bond will be made upon presentation and surrender o f the bond by the owner to authorized paying agencies as follow s: JOHN K. CARLOCK, Fiscal Assistant Secretary o f the Treasury. 2 U N ITED ST A T ES SAVIN G S BONDS—SE R IE S E Table of Redemption Values and Investment Yields for $75 Denomination Bonds Table showing: (1) How bonds of Series E, $75 denomination, increase in redemption value during successive half-year periods following issue; (2) the approximate investment yield on the purchase price from issue date to the beginning o f each half-year period; and (3) the approximate investment yield on the current redemption value from the beginning o f each half-year period to maturity. Yields are expressed in terms o f rate percent per annum, compounded semiannually. Face value. Issue price___ $75. 00 56. 25 __________ ____ ___________________ ______ ____ _____ Approximate investment yield First year _ _ ____________ ____________________ % to 1 year _ _ __________________ __________ __ 1 to 1^2 years. _ _____________________________ __ _ to 2 y ea rs___ _________ _______ __ ________ ______ ______ ________________ __ 2 to 2% years 2}i to 3 years_ _ . . _____ _________ _ _ _______ 3 to years __________________ __ _ _____ _______ __ _____________ __ to 4 years_ 4 to 4 V> years < ______ ____ _____ ____ __ __ 4}i to 5 y e a r s ___ __________________ _____ _______ __ ___ _____ 5 to years. ___________ ____ to 6 y e a r s ___ _____________ _________ _ _____ __ 6 to 6 years____ _____________________ _ ____ to 7 years _ _ . ____________________ _________ 7 to years. _________________________________ ____ 7% years to 7 years and 9 months____ . . _______ FACE V ALU E (7 years and 9 months from issue ' $56. 56. 57. 58. 59. 60. 61. 63. 64. 65. 67. 68. 69. 71. 72. 74. (2) On purchase price from issue date to beginning of each half-year period 1 (3) On current redemption value from beginning of each half-year period 1to maturity Percent Period after issue date (1) Redemption values during each half-year period 1 (values increase on first day of period shown) Percent 0. 1. 2. 2. 3. 3. 3. 3. 3. 3. 3. 3. 3. 3. 3. 3. 25 73 57 53 70 84 98 21 50 85 20 58 96 37 81 25 *3. 3. 3. 4. 4. 4. 4. 4. 4. 4. 4. 4. 4. 4. 3. 4. 00 71 33 67 00 16 26 36 45 53 59 64 67 70 72 74 3. 75 75. 00 ♦Approximate investment yield for entire period from issuance to maturity. 1 3-month period in the case of the 7}£-year to 7-year and 9-month period. U .S . GOVERNMENT PRINTING O F FICE ; 1 9 8 4 O — 7 2 0 -1 6 1 75 89 96 01 01 03 05 06 06 04 03 02 01 01 99 06