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FEDERAL, R E SE R V E B A N K O F D A L L A S F I S C A L A G E N T O F T H E U N IT E D STATES Dallas, Texas, October 26, 1943 WAR SAVINGS BONDS, SERIES E To All Banking Institutions, and Others Concerned, in the Eleventh Federal Reserve District: There is enclosed, a copy of Treasury Department Circular No. 653, Second Revision, dated August 31, 1943, relating to United States Savings Bonds of Series E. The new circular supersedes Circular No. 653, Revised, dated June 1, 1942, and embodies the First Amendment to that circular dated June 17, 1943. It will be observed from Part I of the circular that bonds of Series E of a new design and size, without change in terms, will be provided for issue as present stocks become depleted. The new type bond will be approxi mately 7 % " x 41/4", which is about the size of the present bond folded once from top to bottom. We do not have a supply of all denominations of the new bond and it will not be necessary for you to request a supply, as they will be furnished as and when our stocks of the old type bonds become exhausted. Additional copies of the enclosed circular will be sent you upon request. Yours very truly, R. R. GILBERT President ?^/ICTORY This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) UNITED STATES SAYINGS BONDS—SERIES E WAR SAVINGS BONDS 1943 Department Circular No. 653 Second Revision T reasury Department , Office of the Secretary, Fiscal Service Bureau of the Public Debt I. W a sh in g to n , A u g u s t 3 1 , 19U3. O F F E R IN G O F U N IT E D S T A T E S S A Y IN G S B O N D S O F S E R IE S E 1. The Secretary of the Treasury, pursuant to the authority o f the Second Liberty Bond A ct, as amended, offers fo r sale, to the people of the United States, United States Savings Bonds o f Series E , currently designated W a r Savings Bonds, which m ay hereinafter be referred to as bonds o f Series E , and their sale will continue until termi nated by the Secretary o f the Treasury. Bonds of a new design, without change in terms, will be provided fo r issue hereunder in regular course without further notice as stocks of the prior bonds o f Series E become exhausted. 2. United States Savings Bonds o f Series E include all bonds issued as Defense Savings Bonds under this circular as originally published, and all those issued as W a r Savings Bonds under this circular as previously or as now revised. A s their terms are identical, no distinction is to be made between any bonds o f Series E so issued. II. D E SC R IP T IO N A N D TE R M S O F B O N D S 1. Bonds o f Series E will be issued only in registered form , in denominations of $25, $50, $100, $500, and $1,000 (m aturity values), at prices hereinafter set forth. Each bond will bear the facsimile signature of the Secretary of the Treasury, and will bear an imprint (in red) o f the Seal of the Treasury. A t the time o f issue, on the face o f each bond the issuing agent will inscribe the name and address o f the owner, and the name of the coowner or beneficiary, if any, will enter the issue date (which is the first day o f the month in which payment o f the issue price is received by the Treasury or an authorized issuing agen t), and will imprint his dating stamp (to show date the bond is actually inscribed). Bonds of Series E shall be valid only if duly inscribed and dated, as above provided, and delivered by the Treasury or an authorized issuing agent following receipt o f payment therefor. 2. The bonds will, in each instance, be dated as o f the first day of the month in which payment o f the issue price is received by an agent authorized to issue the bonds, which date is hereinafter referred to as the issue date; the bonds will mature and be payable at face value 10 years from such issue date. The issue date is the basis fo r determining the redemption or m aturity period o f the bond, and the date appearing in the issuing agent’s stamp should not be confused therewith. The bonds m ay not be called for redemption by the Secretary o f the Treasury prior to m aturity, but they m ay be redeemed prior to maturity, a fter 60 days from the issue date, at the owner’s option, at fixed redemption values. No interest as such will be paid on the bonds, but they will increase in redemption value at the end o f the first year from issue date, and at the end o f each successive half-year period thereafter until their m aturity, when the face amount becomes payable. The increment in value will be payable only upon re demption of the bonds. A table o f redemption values appears on each bond. The purchase price o f bonds o f Series E has been fixed so as to afford an investment yield o f about 2.9 percent per annum compounded semiannually if the bonds are held to m aturity; if the owner exercises his option to redeem a bond prior to maturity the invest m ent yield will be less. The table at the end of this circular shows: (1 ) H ow bonds o f Series E , by denomina tions, increase in redemption value during the successive half-year periods following issue; (2 ) the approximate investm ent yield on the issue price from issue date to the beginning of each half-year period; and (3 ) the approxi m ate investment yield on the current redemption value from the beginning o f each half-year period to maturity at the end o f the 10-year period. 3. Bonds o f Series E will not be transferable, and will be payable only to the owner named thereon, except in case o f death or disability of the owner or as otherwise specifically provided in the regulations governing savings bonds, and in any event only in accordance with said regulations. Accordingly, after they are duly issued they m ay not be sold, discounted, hypothecated as collateral fo r a loan or the performance o f a service, or disposed o f in any manner other than as provided in the regulations governing savings bonds, and, except as provided in said regulations, the Treasury Department will recognize only the inscribed owner, during his lifetime, and thereafter his estate or heirs. 4. T axation .— For the purpose o f determining taxes and tax exemptions, the increment in value represented by the difference between the price paid fo r bonds o f Series E (which are issued on a discount basis), and the redemption value received therefor (whether at or before m aturity) shall be considered as interest, and such interest is not exem pt from income or profits taxes now or hereafter imposed by the United States.1 The bonds shall be subject to estate, inheritance, g ift, or other excise taxes, whether Federal or State, but shall be exempt from all taxation now or hereafter imposed on the principal or interest thereof by any State, or any of the possessions of the United States, or by any local taxing authority. 1 For information concerning the taxable and exempt status under Federal tax laws of the interest (increment in value) on United States Savings Bonds issued on a discount basis (including bonds o f Series E ), and alternate methods of reporting such interest, see Internal Revenue Mimeograph, Coll. No. 5299, R. A. No. 1177, dated December 17, 1941. For credits on account of Victory Tax, see Internal Revenue Regulations 103, Secs. 19.453 and 19.454, as amended by Treasury Decision 5249. 16_„fi771_1 2 III. 1. A (а ) g e n c i e s .— PU R C H A SE OF BONDS Bonds of Series E m ay be purchased, while this offer is in effect, as follow s: O v e r -th e -c o u n te r f o r c a s h : (1 ) A t United States post offices o f the first, second, and third classes, and at selected post offices o f the fourth class, and generally at classified stations and branches. (2 ) A t such incorporated banks, trust companies, and mutual savings banks, Federal savings and loan associa tions, and other organizations as are duly designated and have duly qualified as issuing agents pursuant to the pro visions o f Treasury Department Circular N o. 657, as amended and supplemented, and at the Treasury D epartm ent, W ashington, D. C., and at Federal Reserve Banks and Branches. (б ) O n m ail ord er. — Bonds o f Series E may be purchased by mail upon application to the States, W ashington 25, D . C., or to any Federal Reserve Bank or Branch, accompanied by a issue price. Any form o f exchange, including personal checks, will be accepted, subject to other form s o f exchange, should be drawn to the order o f the Treasurer of the United States Bank, as the case may be. Checks payable by endorsement are not acceptable. Treasurer o f the United remittance to cover the collection. Checks, or or the Federal Reserve (c) O th er agen cies. — The Secretary o f the Treasury, in his discretion, m ay designate other agencies fo r the issue of, or for the handling o f applications for, bonds o f Series E , which shall operate under such terms and conditions as the Secretary o f the Treasury m ay prescribe or approve. 2. Postal Savings .— Subject to regulations prescribed by the Board o f Trustees of the Postal Savings System , the withdrawal o f postal savings deposits will be permitted for the purpose o f acquiring savings bonds. 3. U nited States W ar Savings Stamps for I nstallment Paym en ts .— W a r Savings Stamps, in denominations of 10, 25, and 50 cents, and $1 and $5, m ay be purchased at any post office where bonds o f Series E are on sale and at such other agencies as m ay be designated from time to tim e. ' These stamps m ay be used to accumulate credits fo r the purchase of W a r Savings Bonds, Album s, fo r affixing the stamps, will be available without charge, and such albums will be receivable, in the amount of the affixed stam ps, on the purchase price o f W a r Savings Bonds. Defense Postal Savings Stamps heretofore issued are included in the term W a r Savings Stamps and no distinction is to be made between any such stamps whether issued as Defense Postal Savings Stamps or as W a r Savings Stamps, and the stamps o f either issue m ay be used interchangeably as credits fo r the purchase of W a r Savings Bonds. 4. I ssue Prices.— The issue prices o f the various denominations of bonds of Series E follow : (m aturity v a lu e )_______________________ $25.00 (purchase) P rice____________ ________ _____________ 18.75 D e n o m in a t io n I ssue $50.00 37.50 $100.00 75.00 $500.00 375.00 $1,000.00 750.00 IY . L IM IT A T IO N O N H O L D IN G S 1. The amount of bonds o f Series E originally issued during any one calendar year to any one person that m ay be held by that person at any one time shall not exceed $5,000 (m aturity v a lu e ), computed in accordance with the pro visions o f the regulations governing United States Savings Bonds. I f any person at any time acquires savings bonds issued during any one calendar year in excess o f the prescribed amount, the amount o f such excess should im mediately be surrendered fo r refund o f the issue price. V. A U T H O R IZ E D F O R M S O F R E G IS T R A T IO N 1. Bonds of Series E m ay be registered only in the names of natural persons (that is, individuals), whether adults or minors, in their own right, as follow s: (1 ) in the name o f one person; (2 ) in the names o f two (but not more than tw o) persons as coowners; and (3) in the name o f one person payable on death to one (but not more than one) other designated person. Registration on original issues and on authorized reissues, whether as owners, coowners, or designated beneficiaries, is restricted to residents o f the United States (which fo r the purposes o f this section shall include the territories, insular possessions, and the Canal Zon e), citizens o f the United States temporarily residing abroad, and to nonresident aliens employed in the United States by the Federal government or an agency th ereof: P ro vid ed , h o w e v e r , That on original issues o f bonds, but not on reissues, a nonresident alien (not a citizen o f an enemy nation) m ay be named as coowner or designated beneficiary, and P ro v id ed fu r th e r , That a nonresident alien, whether owner, coowner, or beneficiary, succeeding to title on death o f the owner, or succeeding to title upon the death o f the surviving coowner or beneficiary will be entitled only to request and receive payment either at or before maturity. 2. Full information regarding authorized form s o f registration and rights thereunder will be found in the regu lations currently in force governing United States Savings Bonds. V I. D E L IV E R Y A N D S A F E K E E P IN G OF B O N D S O F SE R IE S E 1. Postmasters and other authorized issuing agents from whom bonds o f Series E m ay be purchased are authorized to deliver such bonds, duly inscribed and dated, upon receipt o f the issue price. ‘ Bonds not delivered in person and bonds issued against mail order applications w ill be delivered by mail at the risk and expense o f the United States, at the address given by the purchaser, but only within the United States, its territories and insular posses sions and the Canal Zone.2 No mail deliveries elsewhere will be made. I f purchased by citizens o f the United States 2 During the war emergency the Treasury may suspend deliveries to be made at its risk and expense from or to the continental United States arid its territories, insular possessions and the Canal Zone, or between any o f such places. Bonds will be delivered to any address within the place in which they are issued or, if issued within the continental United States, will be held in safekeeping by the Federal Reserve Banks or the Treasury, as the purchaser may direct. is—36771-1 3 tem porarily residing abroad, bonds will be delivered at an address in the United States, or held in safekeeping, as the purchaser m ay direct. Personal delivery should not be accepted by any purchaser until he has verified that the correct name, or names, and address are duly inscribed, that the issue date (the first day of the month in which paym ent o f the issue price was received by the agent) is duly entered, and that the dating stamp o f the issuing agent is duly imprinted with current date— all on the face o f the bond. I f received by mail, the same verification should be made, and i f any error in inscription or dating appears, such fact should immediately be reported to the issuing agent, and instructions requested. 2. Savings bonds o f Series E will be held in safekeeping without charge by the Secretary o f the Treasury i f the holder so desires, and in such connection the facilities of the Federal Reserve Banks,3 as fiscal agents o f the United States, and those o f the Treasurer o f the United States, will be utilized. Arrangem ents m ay be made fo r such safe keeping at the time o f purchase, or subsequently. Postmasters generally will assist holders in arranging fo r safe keeping, but will not act as safekeeping agents. V II. P A Y M E N T A T M A T U R IT Y OR R E D E M P T IO N PRIO R TO M A T U R IT Y 1. General .— A n y bond o f Series E will be paid in full a t m aturity, or, at the option o f the owner, a fter 60 days from the issue date, will be redeemed in whole or in part at the appropriate redemption value prior to m aturity, follow ing presentation and surrender o f the bond, with the request fo r payment properly executed, all in accordance w ith the regulations governing savings bonds. 2. E xecution of Request for P a ym en t .— The registered owner, or other person entitled to payment under the regulations governing savings bonds, must appear before one of the officers authorized by the Secretary o f the Treasury to witness and certify requests fo r payment, establish his identity, and in the presence of such officer sign the request for payment, adding the address to which the check is to be mailed. A fte r the request fo r payment has been so signed, the witnessing officer should complete and sign the certificate provided fo r his use. Unless otherwise authorized in a particular case, the form o f request appearing on the back of the bond must be used. 3. Officers A uthorized to W itness and Certify Requests for P a ym en t .— The officers authorized to witness and certify requests for payment o f savings bonds are fu lly set forth in the regulations governing savings bonds, and include but are not limited to (1 ) United States postmasters and certain other post office officials or designated em ployees; (2) officers (or designated employees) o f all banks or trust companies incorporated in the United States or its organized territories, including officers at domestic branches (within the United States or its territories or insular possessions and the Canal Zon e), or at foreign branches; (3 ) officers of corporations and other organizations which are duly qualified as issuing agents; and (4 ) in those cases specified in the regulations, commissioned officers o f the A rm y, N avy, Marine Corps, and Coast Guard. A ll certificates must be authenticated by official seal, if there is one, or, if by an issuing agent, by an imprint o f his dating stamp. 4. P resentation and Surrender.— A fte r the request for payment has been duly executed by the person entitled and by the certifying officer, the bond must be presented and surrendered to a Federal Reserve Bank or Branch, or to the Treasurer o f the United States, W ashington 25, D. C., at the expense and risk o f the owner. For the owner’s protection, the bond should be forwarded by registered mail, if not presented in person. 5. D isability or D eath .— In case of the disability o f the registered owner, or the death o f the registered owner not survived by a coowner or a designated beneficiary, instructions should be obtained from a Federal Reserve Bank or Branch, or the Treasury Department, Division o f Loans and Currency, Merchandise M art, Chicago 54, Illinois, before the request for payment is executed. 6. M ethod of P a ym en t .— The only agencies authorized to pay or redeem savings bonds o f Series E are the Treasurer of the United States and the Federal Reserve Banks and Branches. Postmasters are not authorized to m ake payment, but generally they will assist owners in securing payment, at or before m aturity. Paym ent in all cases will be made by check drawn to the order o f the registered owner or other person entitled to payment, and m ailed to the address given in the request for payment. 7. P artial Redemption .— Partial redemption at current redemption value o f a savings bond of Series E o f a denomination higher than $25 (m aturity value) is permitted, but must accord to an authorized lower denomination. In case o f partial redemption the remainder will be reissued in authorized denominations bearing the same issue date as the bond surrendered. V III. S E R IE S D E S IG N A T IO N 1. United States Savings Bonds of Series E , issued during the calendar year 1943 are designated Series E -1 9 4 3 , and those which m ay be issued in subsequent calendar years will be similarly designated by the series letter E followed by the year of issue. IX . LO ST, S T O L E N , OR D E S T R O Y E D B O N D S 1. I f a bond o f Series E is lost, stolen, or destroyed, a duplicate m ay be issued on the owner furnishing a descrip tion o f the bond and establishing its loss, theft, or destruction. 3 Safekeeping facilities may be offered at some Branches o f Federal Reserve Banks, and in such connection an inquiry may he addressed to the Branch. 16—36771-1 4 2. In any case o f the loss, theft, or destruction o f a bond o f Series E , the owner should give immediate notice to the Treasury Department, Division o f Loans and Currency, Merchandise M art, Chicago 54, Illinois, briefly stating the fa cts and giving a description of the bond. On receipt of such notice, full instructions for procedure will be given the owner. 3. A descriptive record of each bond of Series E held should be kept by the owner, apart from the bonds, so that a full description of the bonds will be available if they are lost, stolen, or destroyed. The record fo r each bond should show: (1) the denomination; (2) the serial number (with its prefix and suffix le tter); (3) the inscription (name or names, and address, on the face o f the bon d ); and (4 ) the issue date (month and year o f issue). X. G E N E R A L P R O V IS IO N S 1. A ll bonds o f Series E , issued pursuant to this circular, shall be subject to the regulations prescribed from tim e to time by the Secretary of the Treasury to govern United States Savings Bonds. Such regulations m ay require, among other things, reasonable notice in case o f presentation of bonds of Series E fo r redemption prior to m aturity. The present regulations governing savings bonds are set forth in Treasury Department Circular No. 530, F ifth Revision, as amended, copies of which m ay be obtained on application to the Treasury Department, or to any Federal Reserve Bank or Branch. 2. The Secretary o f the Treasury reserves the right to reject any application fo r bonds o f Series E , in whole or in part, and to refuse to issue or permit to be issued hereunder any such bonds in any case or any class or classes o f cases if he deems such action to be in the public interest, and his action in any such respect shall be final. 3. Postmasters in charge o f post offices where bonds of Series E are on sale, under regulations promulgated by the Postmaster General, and Federal Reserve Banks and Branches, as fiscal agents o f the United States, are authorized to perform such fiscal agency services as m ay be requested o f them by the Secretary o f the Treasury in connection w ith the issue, delivery, safekeeping, redemption, and payment o f bonds of Series E . Issuing agencies qualified pursuant to Treasury Department Circular N o. 657, as amended or supplemented, will be subject to the provisions o f that circular. 4. The Secretary o f the Treasury m ay at any time or from time to time supplement or amend the terms of this circular, or o f any amendments or supplements thereto, information as to which will be promptly furnished to the Postmaster General and the Federal Reserve Banks and Branches. H E N R Y M O R G E N T H A U , Jr., S e c r e ta r y o f the T r e a su r y . U N IT E D S T A T E S S A V IN G S B O N D S— S E R IE S E T A B L E OF R E D E M P T IO N V A L U E S A N D IN V E S T M E N T Y IE L D S Table showing: (1) H ow bonds o f Series E , by denominations, increase in redemption value during successive h alfyear periods following issue; (2) the approximate investment yield on the purchase price from issue date to the begin ning of 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 of rate percent per annum, compounded semiannually. Maturity V a lu e ______ Issue Price _ _ _- - - Period after issue date First y2 year-------------------------% to 1 year_______________ — 1 to 1 % years -------- ----------i y 2 to 2 years_________________ 2 to 2 % y e a r s -----------------------2y> to 3 years ------- -------------3 to 3 % years- ______________ 3% to 4 years ----------------------4 to 4 y2 years —........ 4i/2 to 5 y e a r s ...............- -----5 to 5 y2 years__________ ____ 5 y 2 to 6 years.............................. 6 to 6 y 2 years______ ______ - 6 y 2 to 7 years ....... ............ - 7 to i y 2 years___ — - - — i y 2 to 8 years_______ _____ 8 to Sy2 years----------- ---------8 % to 9 years _______ ______ 9 to 9 y2 y ears.— ..................— . 9 y2 to 10 years_____ _______ . M A T U R IT Y V A L U E (10 years from issue date) $25.00 18.75 $50.00 37.50 $100.00 75.00 $500.00 375.00 $1,000.00 750.00 (i) Redemption values during each half-year period (2) Approximate investment yield on pur chase price from issue date to beginning of each half-year period (3) Approximate investment yield on current redemption value from be ginning of each half-year period to maturity P ercent P ercen t $18.75 18.75 18.87 19.00 19.12 19.25 19.50 19.75 20.00 20.25 20.50 20.75 21.00 21.50 22.00 22.50 23.00 23.50 24.00 24.50 $37.50 37.50 37.75 38.00 38.25 38.50 39.00 39.50 40.00 40.50 41.00 41.50 42.00 43.00 44.00 45.00 46.00 47.00 48.00 49.00 $75.00 75.00 75.50 76.00 76.50 77.00 78.00 79.00 80.00 81.00 82.00 83.00 84.00 86.00 88.00 90.00 92.00 94.00 96.00 98.00 $375.00 375.00 377.50 380.00 382.50 385.00 390.00 395.00 400.00 405.00 410.00 415.00 420.00 430.00 440.00 450.00 460.00 470.00 480.00 490.00 $750.00 750.00 755.00 760.00 765.00 770.00 780.00 790.00 800.00 810.00 820.00 830.00 840.00 860.00 880.00 900.00 920.00 940.00 96Q.00 980.00 0.00 .00 .67 .88 .99 1.06 1.31 1.49 1.62 1.72 1.79 1.85 1.90 2.12 2.30 2.45 2.57 2.67 2.76 2.84 $25.00 $50.00 $100.00 $500.00 $1,000.00 2.90 * Approximate investment yield for entire period from issuance to maturity. U . S . GOVERNMENT PR IN T IN G O F F IC E 16--- 36771—1 2.90* 3.05 3.15 3.25 3.38 3.52 3.58 3.66 3.75 3.87 4.01 4.18 4.41 4.36 4.31 4.26 4.21 4.17 4.12 4.08
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