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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, October 8,1945 VICTORY LOAN DRIVE SUBSCRIPTIONS BY INSURANCE COMPANIES AND SAVINGS INSTITUTIONS To All Banking Institutions, and Others Concerned, in the Eleventh Federal Reserve District: There is reproduced on the reverse side hereof the full text o f the press statement released today by Secretary of the Treasury Vinson, regarding the limitations to be placed on subscriptions from insurance companies and savings institu tions during the forthcoming Victory Loan Drive. 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) TREASURY DEPARTMENT Washington For Release, Morning Newspapers, Monday, October 8,1945 Secretary of the Treasury Vinson today made public the limitations to be placed on subscriptions, including deferred payment subscriptions, from insurance companies and savings institutions during the Victory Loan Drive. These decisions were reached after consultations with representatives of the two groups affected. All insurance companies will be permitted to subscribe to the marketable securities in aggregate amounts not in excess of an amount equal to 15 per cent of the total amount of United States Government securities held by the subscribing company on December 31, 1944, or 6 per cent of that company’s total admitted assets as of that date, which ever figure is larger. Savings institutions, which are defined for this purpose as savings banks that do not accept demand deposits, savings and loan associations, building and loan associa tions, cooperative banks and credit unions, will be permitted to subscribe to the market able securities in aggregate amounts not in excess of an amount equal to twice the amount of the net increase in assets (total assets less borrowed funds) of the subscriber during the period from July 1, 1945, through September 30, 1945, plus 7 per cent of the amount of United States Government securities held by the subscriber on June 30, 1945. The formula set for this group was reached in recognition o f the difficulty in meeting a consistent interpretation of normal portfolio adjustments and the disparity in growth of assets among individual institutions falling within this group. Insurance companies and savings institutions are requested not to use these for mulae to circumvent the Treasury’^ request that nonbank investors refrain from selling securities heretofore acquired in order to obtain the funds to subscribe for securities offered in the Victory Loan Drive, except for normal portfolio adjustments. It will facilitate handling of these subscriptions if each institution planning to sub scribe under these formulae will furnish the Federal Reserve Bank of its district, prior to entering subscriptions, with the figures applicable to it under its formula. FEDERAL RESERVE BANK OF DALLAS F IS C A L A G E N T O F T H E U N ITE D STATE S Dallas, Texas, October 10,1945 VICTORY LOAN DRIVE SUBSCRIPTIONS OF INSURANCE COMPANIES To the Insurance Company Addressed: For your information there is quoted below the full text of a press statement released by Secretary of the Treasury Vinson on October 8, 1945, regarding the limitations to be placed on subscriptions of insurance companies and savings institutions during the forthcoming Victory Loan Drive: “ Secretary of the Treasury Vinson today made public the limitations to be placed on subscriptions, including deferred payment subscriptions, from insurance companies and savings institutions during the Victory Loan Drive. These decisions were reached after consultations with representatives of the two groups affected. “ All insurance companies will be permitted to subscribe to the marketable securities in aggregate amounts not in excess of an amount equal to 15 per cent of the total amount of United States Government securities held by the subscribing company on December 31, 1944, or 6 per cent of that company’s total admitted assets as of that date, which ever figure is larger. “ Savings institutions, which are defined for this purpose as savings banks that do not accept demand deposits, savings and loan associations, building and loan associa tions, cooperative banks and credit unions, will be permitted to subscribe to the market able securities in aggregate amounts not in excess of an amount equal to twice the amount of the net increase in assets (total assets less borrowed funds) of the subscriber during the period from July 1, 1945, through September 30, 1945, plus 7 per cent of the amount of United States Government securities held by the subscriber on June 30, 1945. The formula set for this group was reached in recognition of the difficulty in meeting a consistent interpretation of normal portfolio adjustments and the disparity in growth of assets among individual institutions falling within this group. “ Insurance companies and savings institutions are requested not to use these for mulae to circumvent the Treasury’s request that nonbank investors refrain from selling securities heretofore acquired in order to obtain the funds to subscribe for securities offered in the Victory Loan Drive, except for normal portfolio adjustments. “ It will facilitate handling of these subscriptions if each institution planning to sub scribe under these formulae will furnish the Federal Reserve Bank of its district, prior to entering subscriptions, with the figures applicable to it under its formula.” In connection with the formula applicable to your institution, there is enclosed a form for use in furnishing information which will establish the amount of marketable securities which may be subscribed for by your institution during the Victory Loan Drive. This form should be com pleted and returned to this bank or appropriate branch before entering a subscription. Your coop eration in this respect will be appreciated. Yours very truly, R. R. GILBERT President * <4 VICTORY LOAN DRIVE FOR USE BY INSURANCE COMPANIES Date TO: □ Federal Reserve Bank Dallas 13, Texas □ Federal Reserve Bank Branch El Paso, Texas Q Federal Reserve Bank Branch Houston 1, Texas □ Federal Reserve Bank Branch San Antonio 6, Texas ATTENTION: Fiscal Agency Department As suggested by the Secretary of the Treasury in his statement for the press dated October 8, 1945, the following information is furnished for your use in considering sub scriptions by us during the Victory Loan Drive: 1. Total amount of United States Gov ernment securities which this com pany held on December 31, 1944___ $--------------------- — . 15 per cent of that amount is_________________________ 2. Total amount of admitted assets of this company on December 31, 1944 6 per cent of that amount is $------------------------- (A) --------------------- -------------------------------- $------------------------- (B) (In no case should the aggregate amount of subscriptions entered exceed either A or B, whichever is larger.) Name of Insurance Company By. Official Signature and Title Address For use by the Federal Reserve Bank or Branch Date Amount Issue ?■ FEDERAL RESERVE BANK OF DALLAS F IS C A L A G E N T O F T H E U N ITE D ST A T E S Dallas, Texas, October 11,1945 VICTORY LOAN DRIVE SUBSCRIPTIONS OF SAVINGS INSTITUTIONS To the Savings Institution Addressed: For your information there is quoted below the full text of a press statement released by Secretary of the Treasury Vinson on October 8, 1945, regarding the limitations to be placed on subscriptions of insurance companies and savings institutions during the forthcoming Victory Loan Drive: “ Secretary of the Treasury Vinson today made public the limitations to be placed on subscriptions, including deferred payment subscriptions, from insurance companies and savings institutions during the Victory Loan Drive. These decisions were reached after consultations with representatives of the two groups affected. “ All insurance companies will be permitted to subscribe to the marketable securities in aggregate amounts not in excess of an amount equal to 15 per cent of the total amount o f United States Government securities held by the subscribing company on December 81, 1944, or 6 per cent of that company’s total admitted assets as of that date, which ever figure is larger. “ Savings institutions, which are defined for this purpose as savings banks that do not accept demand deposits, savings and loan associations, building and loan associa tions, cooperative banks and credit unions, will be permitted to subscribe to the market able securities in aggregate amounts not in excess of an amount equal to twice the amount of the net increase in assets (total assets less borrowed funds) of the subscriber during the period from July 1, 1945, through September 30, 1945, plus 7 per cent of the amount of United States Government securities held by the subscriber on June 30, 1945. The formula set for this group was reached in recognition of the difficulty in meeting a consistent interpretation of normal portfolio adjustments and the disparity in growth of assets among individual institutions falling within this group. “ Insurance companies and savings institutions are requested not to use these for mulae to circumvent the Treasury’s request that nonbank investors refrain from selling securities heretofore acquired in order to obtain the funds to subscribe for securities offered in the Victory Loan Drive, except for normal portfolio adjustments. “ It will facilitate handling of these subscriptions if each institution planning to sub scribe under these formulae will furnish the Federal Reserve Bank of its district, prior to entering subscriptions, with the figures applicable to it under its formula.” In connection with the formula applicable to your institution, there is enclosed a form for use in furnishing information which will establish the amount of marketable securities which may be subscribed for by your institution during the Victory Loan Drive. This form should be com pleted and returned to this bank or appropriate branch before entering a subscription. Your coop eration in this respect will be appreciated. Yours very truly, R. R. GILBERT President VICTORY LOAN DRIVE FOR USE BY SAVINGS INSTITUTIONS (Savings banks that do not accept demand deposits, Savings and Loan Associations, Building and Loan Associations, Cooperative Banks and Credit Unions.) TO: □ Federal Reserve Bank Dallas 13, Texas O Federal Reserve Bank Branch El Paso, Texas ’ □ Federal Reserve Bank Branch Houston 1, Texas □ Federal Reserve Bank Branch San Antonio 6, Texas Date * ATTENTION: Fiscal Agency Department As suggested by the Secretary of the Treasury in his statement for the press dated October 8, 1945, the following information is furnished for your use in considering sub scriptions by us during the Victory Loan Drive: 1. Amount of net assets (total assets less borrowed funds) on: September 30,1945 July $________________ 1,1945 $_______ __________ Amount of net increase $________________ . Twice the amount of net increase in assets is ______________ -------------------------------------- $---------------------------- (A) 2. Amount of United States Govern ment securities held by this institu tion on June 30, 1945____________ $________________ 7 per cent of that amount is____ !_____________________ $________________ (B) Total A plus B__________________________________________ $________________ (In no case should the aggregate amount of subscriptions entered exceed A plus B.) Name of Savings Institution By. Official Signature and Title Address For use by the Federal Reserve Bank or Branch Date Issue Amount