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FEDERAL RESERVE BANK OF DALLAS
F IS C A L A G EN T O F T H E U N IT E D ST A TES

Dallas, Texas, May 28, 1954

REVISION OF PROCEDURE FOR PROCESSING
PAID UNITED STATES SAVINGS BONDS

To the Qualified Savings Bond Paying Agents
in the Eleventh Federal Reserve District:
There is reproduced on the reverse hereof a letter from the Secretary of the Treasury in regard
to a change in the procedure for processing paid savings bonds after receipt from paying agents. The
change, which becomes effective at this bank July 1, 1954, affects principally the method of handling
bonds at the Reserve banks and at offices of the Treasury Department. However, the Treasury has
requested that agents be furnished the following information:
1. Reserve banks will no longer make any examination of paid bonds. Such examination
will be made by the Treasury Department, and that Department will notify this bank of
discrepancies in amounts paid and of the erroneous redemption of bonds of unauthorized
series and those requiring evidence to support payment. Small differences in the
amounts paid will be absorbed by the Department, while larger differences will be
adjusted with the paying agents in the usual manner. If a bond owner claims that he
did not receive the true redemption value, his claim should be submitted by the paying
agent to this bank for transmittal to the Treasury Department. The claim should
include bond inscription, denomination, bond serial number, date and amount of pay­
ment, name and address of the claimant, and the date and total of the transmittal letter
in which the bond was listed to this bank. Bonds requiring evidence to support redemp­
tion or those of an unauthorized series redeemed in error will be returned to this bank
by the Treasury for adjustment with paying agents.
2. If an agent determines that any shortage reported by the Treasury is due to a missing
bond, a claim for relief under the Government Losses in Shipment Act may be filed with
this bank. Temporary credit will be allowed for the missing bond pending disposition of
the formal claim by the Treasury, provided the agent furnishes the bond serial number,
and the amount and month of payment. Information with respect to this coverage is
furnished in Paragraph 30 (b) of the June 30, 1945, edition of the Memorandum of
Instructions and Explanation Issued in Conjunction with Department Circular No.
750, Revised.
The Treasury Department has emphasized that paying agents should package paid bonds
separately when preparing them for shipment, that paid bonds should not be intermingled with
other items such as currency, checks, marketable securities, etc., and that payment stamps should
be legible. The cooperation of agents in these respects will materially assist the Department in
achieving maximum economies under the revised procedure. Moreover, care in payment of bonds
only as authorized and at correct redemption values will be helpful to the Treasury, paying agents,
and bond owners.
The procedure followed by paying agents in paying and transmitting bonds to this bank will not
be affect^ by this revision in the operations of the Reserve banks and the Treasury.
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)

Treasury Department
Office of the Secretary
Washington, May 26, 1954

To Banks and Other Financial Institutions Serving
as Paying Agents for United States Savings Bonds:
The Treasury, with the cooperation of the Federal Reserve Banks, is about to inaugu­
rate a change in the procedure for processing U. S. Savings Bonds received from qualified
paying agents. This change in procedure will be placed in effect in the several Federal
Reserve Districts as follows: On June 1 in the New York, Cleveland, and Chicago Dis­
tricts ; on July 1 in the Richmond, Kansas City, Dallas, San Francisco and Los Angeles
Districts; and on August 1 in the Boston, Philadelphia, Atlanta, Detroit, St. Louis and
Minneapolis Districts.
Paying agents will continue to ship paid savings bonds and covering transmittal letters
to the Federal Reserve Bank or Branch with which they deal at present unless otherwise
instructed. Federal Reserve Banks will continue to make immediate settlement with pay­
ing agents for the total amount of paid bonds as claimed by paying agents, subject to
adjustment, as at present, if any discrepancies are discovered in the course of the audit.
The examination of shipments now performed by the Federal Reserve Banks will be dis­
continued at those points, and immediately after settlement all paid bonds and covering
transmittal letters will be forwarded directly by the Federal Reserve Banks to the
Treasury Department’s Regional Offices at New York, Cincinnati, and Chicago for exami­
nation and audit.
This change in procedure has been made in the interest of substantial economies
resulting primarily from the consolidation of machine operations and personnel at three
points to take the place of the present fourteen installations in the above-named banks.
The Treasury appreciates the cooperation which it has received from banks and
other financial institutions serving as paying agents for United States Savings Bonds.
Your continued cooperation in the careful preparation of bonds and transmittal letters to
facilitate the examination and audit of shipments will be of great assistance to the
Treasury in effecting maximum economies under the new procedure.
G. M. HUMPHREY
Secretary of the Treasury