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FEDERAL RESERVE BANK
OF NEW YORK
Fiscal Agent of the United States
{"Circular N o . 2 4 7 0 " 1
L
A u g u s t 3, 1942
J
Cash Offering of
2V2 Percent Treasury Bonds of 1962-67
Dated and bearing interest from May 5, 1942
Due June 15, 1967
ADDITIONAL ISSUE
To all Banking Institutions, and Others Concerned,
in the Second Federal Reserve District:
The following press statement was today made public:
Secretary of the Treasury Morgenthau today announced the offering, through the Federal Reserve Banks, of an
additional amount of 2^2 percent Treasury Bonds of 1962-67, f o r which cash subscriptions are invited at par and
accrued interest, the amount to be issued not being specifically limited. At the same time the Secretary announced
that additional rights not heretofore accorded would be attached to the bonds, through provision for their optional
redemption, at par and accrued interest, upon the death of the owner, f o r the purpose of satisfying Federal estate
taxes, full particulars in such respect appearing in the official circular.
The bonds now offered will be an addition to and will form a part of the series of 2 % percent Treasury Bonds
of 1962-67 issued pursuant to Department Circular No. 685, dated May 4, 1942. They are identical in all respects
with such bonds, with which they will be freely inter-changeable. The bonds are dated May 5, 1942, and bear interest
from that date at the rate of 2y 2 percent per annum payable semiannually, with the first payment due December 15,
1942. The bonds will mature J u n e 15,1967, but may be redeemed, at the option of the United States, on and after June
15, 1962. Bonds registered both as to principal and interest will be issued in denominations of $100, $500, $1,000,
$5,000, $10,000 and $100,000; they will not be issued in coupon f o r m prior to May 5, 1952, but coupon bonds in these
denominations will be available and freely inter-changeable with the registered bonds a f t e r that date. These bonds
will not be available f o r subscription by commercial banks accepting demand deposits, nor eligible for transfer to such
banks for a period of ten years from May 5. The bonds may be pledged as collateral for loans, including loans by
commercial banks which accept demand deposits, but any such banks acquiring the bonds because of the failure of such
loans to be paid at maturity will be required to dispose of them in the same manner as they dispose of other assets
not eligible to be owned by banks. As the offering is not specifically limited in amount, it will remain open for a period
longer than customary.
Pursuant to the provisions of the Public Debt Act of 1941, interest upon the bonds now offered shall not have
any exemption, as such, under Federal Tax Acts now or hereafter enacted. The full provisions relating to taxability
are set forth in the official circular released today.
Subscriptions will be received at the Federal Reserve Banks and Branches, and at the Treasury Department,
Washington. Banking institutions and security dealers generally may submit subscriptions for account of customers,
but only the Federal Reserve Banks and the Treasury Department are authorized to act as official agencies. Subscriptions must be accompanied by payment in full.
The right is reserved to close the books as to any or all subscriptions at any time without notice. Subscriptions
will be allotted in full as received, and payment at p a r and accrued interest from May 5, 1942 must be made on August
3, 1942, or on later allotment. Accrued interest to August 3, 1942, is $6.16293 per $1,000, and each day's accrued
interest thereafter is $0.0683 per $1,000. Delivery of bonds allotted hereunder will not be effected earlier than September 1.
The terms of this offering are set forth in Treasury Circular No. 692, dated August 3, 1942,
copy of which is printed on the reverse side. The subscription books are now open, and applications
will be received by this bank as fiscal agent of the United States.
Allan
Sproul,
President.
UNITED STATES OF AMERICA
P E R C E N T T R E A S U R Y B O N D S O F 1962-67
Dated and bearing interest from May 5, 1942
Due June 15, 1967
R E D E E M A B L E A T T H E O P T I O N O F T H E U N I T E D S T A T E S AT PAR A N D A C C R U E D I N T E R E S T O N A N D A F T E R J U N E 15, 1962
Interest payable June 15 and December 15
1942
Department Circular No. 692
ADDITIONAL ISSUE
TREASURY DEPARTMENT,
Fiscal Service
Bureau of the Public Debt
OFFICE OF THE
Washington,
I.
SECRETARY,
August
3,
1942
O F F E R I N G OF B O N D S
1. The Secretary of the Treasury, pursuant to the authority of the Second Liberty Bond Act, as amended, invites subscriptions,
at par and accrued interest, from the people of the United States for bonds of the United States, designated 2% percent Treasury
Bonds of 1962-67. These bonds will not be available for subscription, for their own account, by commercial banks which accept
demand deposits. The amount of the offering is not specifically limited.
II.
D E S C R I P T I O N OF B O N D S
1. The bonds now offered will be an addition to and will form a part of the series of 2% percent Treasury Bonds of 1962-67
issued pursuant to Department Circular No. 685, dated May 4, 1942, will be freely interchangeable therewith, and are identical in
all respects therewith.
2. The bonds will be dated May 5, 1942, and will bear interest from that date at the rate of 2y2 percent per annum, payable
on a semiannual basis on June 15 and December 15 in each year until the principal amount becomes payable, the first payment being
made December 15, 1942. They will mature June 15, 1967, but may be redeemed at the option of the United States on and after
June 15, 1962, in whole or in part, at par and accrued interest, on any interest day or days, on 4 months' notice of redemption
given in such manner as the Secretary of the Treasury shall prescribe. In case of partial redemption the bonds to be redeemed
will be determined by such method as may be prescribed by the Secretary of the Treasury. From the date of redemption designated in any such notice, interest on the bonds called for redemption shall cease.
3. The income derived from the bonds shall be subject to all Federal taxes, now or hereafter imposed. The bonds shall be
subject to estate, inheritance, gift 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.
4. The bonds will not be acceptable to secure deposits of public moneys before May 5, 1952, they will not bear the circulation
privilege, and they will not be entitled to any privilege of conversion.
5. Bonds registered as to principal and interest will be issued in denominations of $100, $500, $1,000, $5,000, $10,000 and
$100,000. The bonds will not be issued in coupon form prior to May 5, 1952, but will be available in coupon form after that date,
in the same denominations as, and freely interchangeable with, the registered bonds of this issue. Under rules and regulations prescribed by the Secretary of the Treasury, provision will be made for the transfer of the bonds, other than to commercial banks which
accept demand deposits, and for exchanges of denominations. They will not be eligible for transfer to commercial banks which
accept demand deposits before May 5, 1952. However, the bonds may be pledged as collateral for loans, including loans by commercial banks which accept demand deposits, but any such bank acquiring such bonds before May 5, 1952, because of the failure of
such loans to be paid at maturity will be required to dispose of them in the same manner as they dispose of other assets not eligible
to be owned by banks.
6. Any bonds issued hereunder, or under the provisions of Department Circular No. 685, dated May 4, 1942, which upon the
death of the owner constitute part of his estate, will be redeemed at the option of the duly constituted representatives of the deceased
owner's estate, at par and accrued interest to date of payment,1 Provided:
(a) that the bonds were actually owned by the decedent at the time of his death; and
(b) that the Secretary of the Treasury be authorized to apply the entire proceeds of redemption to the payment of Federal
estate taxes.
Registered bonds submitted for redemption hereunder must be duly assigned to " T h e Secretary of the Treasury for redemption,
the proceeds to be paid to the Collector of Internal Revenue at
for credit on Federal estate taxes
due from estate of
" Owing to the periodic closing of the transfer books and the impossibility of stopping payment of interest to the registered owner during the closed period, registered bonds received after the closing of the books
for payment during such closed period will be paid only at par with a deduction of interest from the date of payment to the next
interest payment date; 1 bonds received during the closed period for payment at a date after the books reopen will be paid at par
plus accrued interest from the reopening of the books to the date of payment. In either case checks for the full six months interest
due on the last day of the closed period will be forwarded to the owner in due course. All bonds submitted must be accompanied
by Form PD 1782/ properly completed, signed and sworn to, and by a certificate of the appointment of the personal representatives,
under seal of the court, dated not more than 6 months prior to the submission of the bonds, which shall show that at the date thereof
the appointment was still in force and effect. Upon payment of the bonds appropriate memorandum receipt will be forwarded to
the representatives, which will be followed in due course by formal receipt from the Collector of Internal Revenue.
7. Except as provided in the preceding paragraphs, the bonds will be subject to the general regulations of the Treasury
Department, now or hereafter prescribed, governing United States bonds.
III.
SUBSCRIPTION AND
ALLOTMENT
1. Subscriptions will be received at the Federal Reserve Banks and Branches and at the Treasury Department, Washington.
Banking institutions and security dealers generally may submit subscriptions for account of customers, but only the Federal Reserve
Banks and the Treasury Department are authorized to act as official agencies. Subscriptions must be accompanied by payment in
full for the amount of bonds applied for.
2. The Secretary of the Treasury reserves the right to reject any subscription, in whole or in part, to allot less than the amount
of bonds applied for, and to close the books as to any or all subscriptions at any time without notice; and any action he may take
in these respects shall be final. Subject to these reservations, all subscriptions will be allotted in full. Allotment notices will be
sent out promptly upon allotment.
IV.
PAYMENT
1. Payment at par and accrued interest from May 5, 1942, for bonds allotted hereunder must be made on August 3, 1942, or
on later allotment. Accrued interest from May 5, 1942 to August 3, 1942 inclusive is $6.16293 per $1,000. Each day's accrued interest thereafter is $0.0683 per $1,000. Any qualified depositary will be permitted to make payment by credit for bonds allotted to its
customers up to any amount for which it shall be qualified in excess of existing deposits, when so notified by the Federal Reserve
Bank of its district.
V.
GENERAL
PROVISIONS
1. As fiscal agents of the United States, Federal Reserve Banks are authorized and requested to receive subscriptions, to make
allotments up to the amounts indicated by the Secretary of the Treasury to the Federal Reserve Banks of the respective districts,
to issue allotment notices, to receive payment for bonds allotted, to make delivery of bonds on full-paid subscriptions allotted, and
they may issue interim receipts pending delivery of the definitive bonds.
2. The Secretary of the Treasury may at any time, or from time to time, prescribe supplemental or amendatory rules and regulations governing the offering, which will be communicated promptly to the Federal Reserve Banks.
HENRY
MORGENTHAU,
JR.,
Secretary of the Treasury.
1
An exact half-year's interest is computed for each full half-year period irrespective of the actual number of days in the half year.
of any half year, computation is on the basis of the actual number of days in such half year.
For a fractional part
The transfer books are closed from May 16 to June 15, and from November 16 to December IS (both dates inclusive) in each year.
3
Copies of Form P D 1782 may be obtained from any Federal Reserve Bank or from the Treasury Department, Washington, D . C.
2
T R E A S U R Y
D E P A R T M E N T
FISCAL SERVICE
B U R E A U OF T H E P U B L I C
DEBT
Form PD 1782
REQUEST FOR REDEMPTION OF 2% PERCENT TREASURY BONDS OF 1962-67,
PROCEEDS TO BE USED IN PAYMENT OF FEDERAL ESTATE TAXES
NOTE:
This form, together with the bonds duly assigned, must be in the
hands of the Treasury Department, Division of Loans and Currency,
at least 3 weeks in advance of the date redemption is desired.
The undersigned execut
, administrat
, legal representative of the estate of
,
deceased, late of
, who died on
, submit herewith 2% percent Treasury Bonds of 1962-67 for redemption on
.
, 19.—, the proceeds to be used for the
payment of Federal estate taxes due from the estate of the above named decedent, and payable to the
Collector of Internal Revenue at
, all in accordance with the provisions of Treasury Department Circular No. 692.
LIST OF BONDS SUBMITTED
DENOMINATION
SERIAL N U M B E R
FORM OF REGISTRATION
The undersigned make oath that the bonds listed above were owned by said decedent at the time of his
death and constitute a part of his estate, that the total amount of said bonds, principal and accrued interest, does not exceed the amount of the Federal estate tax due and payable to the above named Collector of
Internal Revenue, and request redemption of said bonds and the application of the proceeds to the payment
of said tax.
State of
County of
Subscribed and sworn to before me at
(SEAL)
this
day of
, 19.
Notary Public
My commission expires
19.
Copies of this form may be secured from the Treasury Department, Division of Loans and Currency, Washington,
D. C., or from any Federal Reserve Bank.
RBS
Application Number
CASH SUBSCRIPTION FORM TO BE USED IN SUBSCRIBING
TO 2VZ PERCENT TREASURY BONDS OF 1962-67
ADDITIONAL ISSUE
Important
Information
for
Subscribers
1. Subscriptions must be accompanied by payment in full for the amount of bonds applied for.
2. Payment at par and accrued interest from May 5, 1942, for bonds allotted must be made on August 3, 1942, or on
later allotment. Accrued interest from May 5, 1942 to August 3,1942 inclusive, is $6.16293 per $1,000. Each day's accrued
interest thereafter is $0.0683 per $1,000. Any payment made by check drawn on any bank other than the Federal Reserve
Bank of New York will not be deemed to have been made until the Federal Reserve Bank of New York has received payment
in actually and finally collected funds. For example, if the Federal Reserve Bank of New York receives on August 3, 1942
a check drawn on a bank which is a member of the New York Clearing House the amount of the cheek should include an additional day's accrued interest.
3. The bonds will not be issued in coupon form prior to May 5,1952, but will be available in coupon form after that date,
in the same denominations as, and freely interchangeable with, the registered bonds of this issue.
4. The bonds will not be available for subscription, for their own account, by commercial banks which accept demand
deposits.
5. Banking institutions and security dealers generally may submit subscriptions for account of customers. It is suggested that subscriptions by a security dealer for his own account or for account of his customers be made through a banking institution in order to minimize the effect which payment for the bonds may have on bank reserves.
6. Bonds allotted to a qualified depositary for account of its customers may be paid for by credit to War Loan
Deposit Account, but may not be deposited with Federal Reserve Bank of New York as collateral security for such account
before May 5, 1952.
7. Delivery of bonds allotted on this subscription will not be effected earlier than September 1, 1942.
8. All required insertions in this subscription form, together with the information requested on the reverse side of the
form, should be filled in carefully.
Dated a t .
.1942
F E D E R A L R E S E R V E B A N K OF N E W Y O R K
Fiscal Agent of the United States
Government Bond Department (First Floor)
New York, N. Y.
Dear Sirs:
Pursuant to the provisions of Treasury Department Circular No. 692, dated August 3, 1942, please enter subscription
at par and accrued interest as follows for
UNITED STATES OF AMERICA 2*4 PERCENT TREASURY BONDS OF 1962-67
DATED MAY 5, 1942
DUE JUNE 15, 1967
ADDITIONAL ISSUE
(Commercial banks which accept demand deposits may not subscribe for their own account)
For our own account.
For our customers,
Total subscription
Payment for such securities in full is made as indicated below:
By check and/or cash herewith
Total
Interest
Principal
$.
By charge to our Reserve Account which you are authorized to
make (For use of member banks only)
By credit to War Loan Deposit Account for which we execute
Certificate below (For the use of qualified depositary o n l y ) . . .
CERTIFICATE OF ADVICE
Date
1942
I H E R E B Y CERTIFY that there has been deposited this day with the below named bank or trust company, to the
credit of the Federal Reserve Bank of New York, as fiscal agent of the United States, War Loan Deposit Account, to
be held subject to withdrawal on demand through the Federal Reserve Bank of New York, the sum of
Dollars $
(Vice President or Cashier)
TO BE EXECUTED AND OFFICIALLY SIGNED ONLY BY A QUALIFIED GOVERNMENT DEPOSITARY
Issue and register the securities in the name (or names) as indicated on the reverse side of this form.
Dispose of securities allotted on this subscription as indicated below :
1. Deliver over the counter to the undersigned
$.
2. Ship to the undersigned
3. See letter attached for special instructions
$Name of Subscriber
(Please typewrite or print)
TO SUBSCRIBER:
Please indicate if this ia a confirmation.
YES-
By.
NO...
(Official alffnatui* required)
City, Town or Village, and State.
DO NOT USB SPACES BELOW
Received
Checked
Recorded
Carded
Payment Received By
Computation Checked
(Title)
SCHEDULE FOR ISSUE OF REGISTERED BONDS
EsT A' ames and addresses must be printed
or
typeivritten.
Indicate under appropriate denominations, number of bonds desired.
Name in which bond« of this issue shall be registered, and poetoffice address for interest checks and mail.
Amount
$100
$500
$1,000
$5,000
$10,000
$10'
-
•
—
•
-
—
—
•
_
WT-RB
ADVICE TO SUBSCRIBER
Date
1942
To
Your subscription for $
U N I T E D S T A T E S OF A M E R I C A 2 % P E R C E N T T R E A S U R Y B O N D S OF
1962-67, dated May 5, 1942, due June 15, 1967, additional issue, has been received by this hank, as fiscal agent of the
United States, and, pursuant to the provisions of the Treasury Department's circular offering the above mentioned
securities, the amount subscribed for by you has been allotted to you in full. The securities will not be available for
delivery earlier than September 1, 1942.
/
Payment for such securities has been received in the maimer indicated below:
By check and/or cash
$
By authority to charge your reserve account
By authority to credit your War Loan Deposit Account
F E D E R A L R E S E R V E B A N K OF N E W Y O R K
Fiscal Agent of the United States
(Teller)
PENDING DELIVERY TICKET
Date
1942
To
Your subscription for $
U N I T E D S T A T E S OF A M E R I C A 2 ^ P E R C E N T TREASURY B O N D S OF
1962-67, dated May 5, 1942, due June 15, 1967, additional issue, has been received by this bank, as fiscal agent of the
United States, and, pursuant to the provisions of the Treasury Department's circular offering the above mentioned
securities, the amount subscribed for by you has been allotted to you in full. The securities will not be available for
delivery earlier than September 1, 1942.
Payment for such securities has been received in the manner indicated below:
By check and/or cash
$
By authority to charge your reserve account
By authority to credit your War Loan Deposit Account
Posted
Computation Checked
F E D E R A L R E S E R V E B A N K OF N E W Y O R K
—
Fiscal A
^ent
of t h e U n i t e d
Account Charged
Gov. Deposit
/
(Teller)
States
ADVICE
TIB-BC
OF
CREDIT TO WAR
LOAN
DEPOSIT
ACCOUNT
APPLICATION
FEDERAL RESERVE BANK
O F NEW YORK
r
NO.
\
MAIL TO
J
IN A C C O R D A N C E W I T H Y O U R C E R T I F I C A T E O F A D V I C E . W E H A V E T H I S D A Y C R E D I T E D
YOUR " W A R LOAN D E P O S I T A C C O U N T " WITH T H E AMOUNT INDICATED ABOVE.
ACCOUNT OF ALLOTMENT OF
2y 2 percent Treasury Bonds of 1962-67 (additional issue)
Dated May 5, 1942
Due June 15, 1967
FEDERAL RESERVE
FISCAL
AGENT
OF
BANK O F N E W
THE
UNITED
YORK
STATES
GOVERNMENT
BOND
DEPARTMENT
BOOK
CREDIT
PAYMENT
TIB-BC
FEDERAL
RESERVE
BANK
APPLICATION
NO.
IN A C C O R D A N C E W I T H Y O U R C E R T I F I C A T E O F A D V I C E . W E H A V E T H I S D A Y C R E D I T E D
Y O U R " W A R LOAN D E P O S I T A C C O U N T " WITH T H E A M O U N T INDICATED ABOVE.
ACCOUNT OF ALLOTMENT OF
2y 2 percent Treasury Bonds of 1962-67 (additional issue)
Dated May 5, 1942
Due June 15, 1967
@FedFRASER