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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 IT E D STATES Dallas, Texas, August 9, 1948 THIRD WAR LOAN DRIVE To All Banking Institutions, and Others Concerned, in the Eleventh Federal Reserve District: As the full text of the press statement of Secretary Morgenthau of July 22, 1943, announcing the securities to be sold during the Third War Loan drive and detailing the offerings of securities which are to soon thereafter be available to commercial banks has apparently not received wide publicity in this Federal Reserve District, the text o f the release is quoted below. “ Secretary of the Treasury Henry Morgenthau, Jr., announced today that the goal set for the Third War Loan drive, starting September 9, will be fifteen billion dollars. “ Mr. Morgenthau said that the entire fifteen billion dollars will be sold to indi vidual investors, corporations, insurance companies and other non-banking sources. “ ‘This goal and the Third War Loan Program,’ he said, ‘was determined by Treasury officials after receiving recommendations from Chairmen of the State War Finance Committees, and officials of the Federal Reserve System and the American Bankers Association. Getting this amount of money will be a huge task, and will rep resent the largest financing program in the history of the world.’ “ ‘The job of raising this fifteen billion dollars,’ he said ‘will be handled by War Finance Committees of each State, and the bonds will be sold largely by hundreds of thousands of patriotic volunteer salesmen, who already have made plans to concen trate on house-to-house selling, since a major consideration is increasing the number of people who are buying war bonds.’ “ The securities to be offered in the Third War Loan, it was pointed out, will be essentially the same types as those sold in the Second War Loan. “ The securities to be sold under the direction of the War Finance Committees will consist o f: 1. Series E Savings Bonds 4. 2 percent Bonds of 1964-69 2. Series F and G Savings Bonds 5. 2 percent Bonds o f 1951-53 8. Series C Savings Notes 6. % percent Certificates of Indebted ness This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) “ The 21/2 percent bond will be dated September 15, 1943, due December 15, 1969, callable December 15, 1964, and will be issued in coupon or registered form at the option of the buyers in denominations from $500 to $1,000,000. Commercial banks, which are defined for this purpose as banks accepting demand deposits, will not be permitted to own these bonds until September 15, 1953. “ The 2 percent bond will be dated September 15, 1943, due September 15, 1953, callable September 15, 1951, and will be issued in coupon or registered form at the option of the buyers in denominations from $500 to $1,000,000. “ The % percent certificates of indebtedness will be dated September 15, 1943, due September 1, 1944, and will be issued in denominations of $1,000 to $1,000,000, and in coupon form only. “ None of these securities will be available for subscription by commercial banks for their own account during the period of the drive. However, shortly after the drive terminates, a 2 percent bond and a % percent certificate of indebtedness will be of fered for subscription by commercial banks for their own account. In order to confine all sales in the drive to non-banking sources, the Treasury will request commercial banks not to buy in the market, and will request the market not to trade in, either of these securities offered in the drive until the books for bank subscriptions are closed. “ To avoid unnecessary transfers of funds from one locality to another, the Treasury would prefer to have all subscriptions by corporations and firms entered and paid for through the banking institutions where the funds are located.” Yours very truly, R. R. GILBERT President
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