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FEDERAL RESERVE BANK OF NEW YORK Fiscal Agent of the United States r Circular No. 2 6 2 0 L May 3, 1943 J CASH REDEMPTION OF UNITED STATES SAVINGS STAMPS To All Issuing Agents in the Second Federal Reserve District Qualified for Sale of United States War Savings Bonds, Series E : In our Circular No. 2521, dated October 15, 1942, we advised all issuing agents that, although the liability for outstanding War Savings Stamps had been transferred from the Postal Savings System to the Treasury as a public debt obligation, issuing agents -receiving such stamps in payment for War Savings Bonds of Series E should present the stamps at local post offices for cash redemption where feasible. We understand that agents which have endeavored to cash savings stamps at post offices in certain localities have experienced some difficulty in obtaining payment, the local postmasters stating that they did not have sufficient funds to redeem such stamps. In this connection, we quote the following from a Postal Bulletin dated December 16, 1942: "Postmasters shall use savings-stamp or savings-bond funds when paying for savings stamps surrendered for cash, but if no such funds are available, any other official funds may be used. Postmasters who have been granted a credit with the Treasurer of the United States may draw on that credit if additional funds are needed and other postmasters should apply to their central accounting postmasters on Form 1847 for an advance of postal funds." In view of the arrangements made by the Post Office Department for supplying adequate funds to postmasters, it would seem that there should be no difficulty in redeeming savings stamps at local post offices and there should be no occasion for an issuing agent to send such stamps to us as a remittance for War Savings Bonds of Series E sold by it. In exceptional circumstances, however, if it should not be practical for an issuing agent to present stamps at a local post office for cash redemption, the stamps may be forwarded to us as full or partial remittance for bond sales and may be included in a package containing bond stubs, which may be forwarded as insured mail to be treated as registered mail. Shipments of stamps in this manner will be at the risk of the United States and covered under the Government Losses in Shipment Act, as amended, provided all stamps are cancelled thoroughly in a manner which will not make verification difficult and the issuing agent's dating stamp is impressed on the back of each card or album. When cancellation is effected by means of a stamp, a nonwashable black ink should be used if possible. Issuing agents shall maintain an inventory of the contents of all such shipments. Shipments of stamps not conforming to the foregoing requirements will be at the risk of the sender. A L L A N SPROUL, President.