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FEDERAL RESERVE BANK
O F N E W YORK
Fiscal Agent of the United States

Circular No. 23571
January 12. 1942 J

UNITED STATES DEFENSE SAVINGS BONDS OF SERIES E
Bonds To Be Issued in Largest Denominations Where Possible
To all Banks and Others Concerned
in the Second Federal Reserve District:

Our attention has been called to the fact that many persons purchasing United States
Defense Savings Bonds of Series E have requested the issuance of several bonds of small
denominations, identically registered, instead of one bond of a higher denomination, because
they are not aware of the fact that they may redeem a portion of the higher denomination bond
without loss of the accrual on the unredeemed balance thereof. In this connection, your
attention is directed to paragraph numbered 7 of Section VII of Treasury Department
Circular No. 653, dated April 15, 1941, relating to United States Defense Bonds of Series E,
which provides:
" 7 . Partial Redemption.—Partial
redemption of a Defense savings bond of a denomination higher than $25 (maturity value) at current redemption value is permitted,
but only in multiples of $25 (maturity value). In case of partial redemption the remainder
will be reissued in authorized denominations bearing the same issue date as the bond surrendered." (Italics supplied.)

Accordingly, any United States Defense Savings Bond of Series E of a denomination
higher than $25 (maturity value) will, upon appropriate request at any time after 60 days
from the issue date of such bond, be partially redeemed in multiples of $25 (maturity value),
and a new bond or bonds in the amount of the unredeemed balance will be issued as of the
original issue date of the surrendered bond.
We suggest that the foregoing be brought to the attention of all purchasers of United
States Defense Savings Bonds of Series E who request delivery at one time of several bonds
of small denominations, identically registered; and we also suggest that, for the purposes of
economy in the use of Defense Savings bond stock and of reducing the volume of work
involved in the issuance of such bonds, such purchasers be urged to accept bonds in the largest
possible denomination.




ALLAN SPKOUL,

President.


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102