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FEDERAL RESERVE OF NEW BANK YORK Fiscal Agent of the United States TCircular N o . 2 7 3 5 T L December 13, 1943J T R E A S U R Y SAVINGS NOTES—SERIES C First Revision of Treasury Department Circular No. 696 To all Banking Institutions in the Second Federal Reserve District: E n c l o s e d is a c o p y of T r e a s u r y Department Circular No. 696, F i r s t Revision, dated N o v e m b e r 20, 1943, relating to T r e a s u r y Savings Notes, Series C. This revision brings up to date, and makes certain changes in, the provisions of the original circular, as amended. T h e principal changes resulting f r o m the revision of the circular m a y be summarized as follows : Notes will be issued in denominations of $100 and $500 in addition to the previously authorized denominations of $1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,000. Notes may be inscribed in the name of one (but not more than one) individual, corporation, partnership, unincorporated association or society, fiduciary, town, city, county or other governmental body. Notes inscribed in the name of a person or entity which pays Federal income, estate or gift taxes will be received in payment of such taxes in the same manner as heretofore. Notes may also be purchased for investment whether or not the purchaser is a Federal taxpayer, but notes inscribed in the name of an entity which does not pay Federal income, estate or gift taxes as such (e.g. a partnership) will not be received in payment of taxes. Notes inscribed in the name of one spouse may be reissued in the name of the other, upon request of the one in whose name they are inscribed and surrender of the notes to the agent which issued them. Notes will be paid or reissued to the persons lawfully entitled upon the death of an individual owner, or upon the dissolution, consolidation or merger of a corporation or unincorporated body in whose name they are inscribed. Notes will be paid, but not reissued, to the persons lawfully entitled upon the bankruptcy or insolvency of the owner or as the result of other judicial proceedings in a court of competent jurisdiction. T h e changes in the terms of the o f f e r i n g of T r e a s u r y Savings Notes, Series C, resulting f r o m the revision of the circular, should add f u r t h e r to the attractiveness of such notes as an investment f o r tax reserves and currently idle cash balances. ALLAN SPROUL, President. UNITED STATES OF AMERICA TREASURY SAYINGS NOTES Series C 1943 Department Circular N o . 696 First Revision Fiscal Service Bureau of the Public Debt TREASURY DEPARTMENT, OFFICE OF THE SECRETARY, Washington, November 20,19US. I. OFFERING OF NOTES 1. The Secretary of the Treasury, pursuant to the authority of the Second Liberty Bond Act, as amended, offers for sale to the people of the United States, at par, an issue of notes of the United States, designated Treasury Savings Notes, Seizes C, which notes, if inscribed in the name of a Federal taxpayer, will be receivable as hereinafter provided at par and accrued interest in payment of Federal income, estate and gift taxes. 2. The term Treasury Savings Notes, Series C, as used in this circular shall include Treasury Notes of Tax Series C, issued under this circular as originally published and Treasury Savings Notes, Series C, issued under this circular as originally published and amended. 3. The sale of the notes will continue until terminated by the Secretary of the Treasury. II. DESCRIPTION OF NOTES 1. General.—Treasury Savings Notes, Series C, will in each instance be dated as of the first day of the month in which payment, at par, is received and credited by an agent authorized to issue the notes. They will mature three years from that date, and may not be called by the Secretary of the Treasury for redemption before maturity. All notes issued during any one calendar year shall constitute a separate series indicated by the letter " C " followed by the year of maturity. At the time of issue the authorized issuing agent will inscribe on the face of each note the name and address of the owner, will enter the date as of which the note is issued and will imprint his dating stamp (with current date). The notes will be issued in denominations of §100, $500, $1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,000. Exchange of authorized denominations from higher to lower, but not from lower to higher, may be arranged at the office of the agent that issued the note. 2. Acceptance for Taxes or Cash Redemption.—If inscribed in the name of an individual, corporation, or other entity paying Federal estate, income or gift taxes, the notes will be receivable, subject to the provisions of Section IV of this circular, at par and accrued interest, in payment of such Federal taxes assessed against the owner or his estate. If not presented in payment of taxes, or if not inscribed in the name of a Federal taxpayer, and subject to the provisions of Section V of this circular, the notes will be payable at maturity or, at the owner's option and request, they will be redeemable before maturity, at par and accrued interest. 3. Interest.—Interest on each $1,000 principal amount of Savings Notes, Series C, will accrue each month from the month of issue, on a graduated scale, as follows: First to Sixth months, inclusive $0.50 each month. .80 each month. Seventh to Twelfth months, inclusive Thirteenth to Eighteenth months, inclusive 1 .90 each month. Nineteenth to Twenty-fourth months, inclusive 1.00 each month. Twenty-fifth to Thirty-sixth months, inclusive 1.10 each month. The table appended to this circular shows for notes of each denomination, for each consecutive calendar month from month of issue to month of maturity, (a) the amount of interest accrual, (b) the principal amount of the note with accrued interest (cumulative) added, and (c) the approximate investment yields. In no case shall interest accrue beyond the month in which the note is presented in payment of taxes, or for redemption before maturity as provided in Section V of this circular, or beyond its maturity. Interest will be paid only with the principal amount. 4. Forms of Inscription.—Treasury Savings Notes, Series C, may be inscribed in the name of an individual, corporation, unincorporated association or society, or a fiduciary (including trustees under a duly established trust where the notes would not be held as security for the performance of a duty or obligation), whether or not the inscribed owner is subject to Federal taxation. They may also be inscribed in the name of a town, city, county or State or other governmental body and in the name of a partnership, but notes in the name of a partnership are not acceptable in payment of taxes, since a partnership is not a Federal taxpaying entity. The notes will not be inscribed in the names of two or more persons as joint owners or coowners; or in the name of a public officer, whether or not named as trustee, where the notes would in effect be held as security. 1—79— 6 349 1 5. Nontransferability.—The notes may not be transferred in ordinary course: except that (1) if inscribed in the name of a married man they may be reissued in the name of his wife, or if inscribed in the name of a married woman they may be reissued in the name of her husband, upon request of the person in whose name the notes are inscribed and the surrender of the notes to the agent that issued them; (2) if inscribed in the name of a corporation owning more than 50 percent of the stock, with voting power, of another corporation, the notes may be reissued in the name of the subsidiary upon request of the corporation and surrender of the notes to the agent that issued them; (3) upon the death or disability of an individual inscribed owner or the dissolution, consolidation or merger of a corporation or unincorporated association named as owner, reissue or payment may be made in accordance with Section VI hereof; and (4) payment but not reissue, may be made as a result of legal proceedings as set forth in said Section VI. The notes may not be hypothecated and no attempted hypothecation or pledge as security will be recognized by the Treasury Department: Provided, however, that the notes may be pledged as collateral for loans from banking institutions and if title thereto is acquired by a bank because of the failure of a loan to be paid, the notes will be redeemed at par and accrued interest to the month in which acquired on surrender to the agent who issued them, accompanied by proof of the date of acquisition and by request of the pledgee under power of attorney given by the pledgor in whose name the notes are inscribed. The notes will not be transferred to a pledgee. The notes will not be acceptable to secure deposits of public moneys. 6. Taxation.—Income derived from the notes shall be subject to all Federal taxes, now or hereafter imposed. The notes shall be subject to estate, inheritance, gift or other excise taxes, whether Federal or State, but shall be exempt from all taxation now or jiereafter 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. III. PURCHASE OF NOTES 1. Official Agencies.—In addition to the Treasury Department, the Federal Reserve Banks and their Branches are hereby designated agencies for the issue and redemption of Treasury Savings Notes, Series C. The Secretary of the Treasury, from time to time, in his discretion, may designate other agencies for the issue of the notes, or for accepting applications therefor, or for making payments on account of the redemption thereof. 2. Applications and payment.—Applications will be received by the Federal Reserve Banks and Branches, and by the Treasurer of the United States, Washington, D. C. Banking institutions and security dealers generally may submit applications for account of customers, but only the Federal Reserve Banks and their Branches and the Treasury Department are authorized to act as official agencies. The use of an official application form is desirable but not necessary. Appropriate forms may be obtained on application to any Federal Reserve Bank or Branch, or the Treasurer of the United States, Washington, D. C. Every application must be accompanied by payment in full, at par. Any form of exchange, including personal checks, will be accepted subject to collection, and should be drawn to the order of the Federal Reserve Bank or of the Treasurer of the United States, as payee, as the case may be. The date funds are made available on collection of exchange will govern the issue date of the notes. Any depositary, qualified pursuant to the provisions of Treasury Department Circular No. 92, Revised, as amended, will be permitted to make payment by credit for notes applied for on behalf of itself or its customers up to any amount for which it shall be qualified in excess of existing deposits. 3. Reservations.—The Secretary of the Treasury reserves the right to reject any application in whole or in part, and to refuse to issue or permit to be issued hereunder any notes in any case or in any class or classes of cases if he deems such action to be in the public interest, and his action in any such respect shall be final. If an application is rejected, in whole or in part, any payment received therefor will be refunded. 4. Delivery of notes.—Upon acceptance of full-paid applications, notes will be duly inscribed and, unless delivered in person, will be delivered, at the risk and expense of the United States at the address given by the purchaser, by mail, but only within the United States, its territories and insular possessions and the Canal Zone. No deliveries elsewhere will be made. IV. PRESENTATION IN P A Y M E N T OF T A X E S 1. During and after the second calendar month after the month of purchase (as shown by the issue date on each note), during such time, and under such rules and regulations as the Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, shall prescribe, notes issued hereunder in the name of a taxpayer (individual, corporation, or other entity) may be presented and surrendered by such taxpayer, his agent, or his estate, to the Collector of Internal Revenue to whom the tax return is made, and will be receivable by the Collector at par and accrued interest from the month of issue to the month, inclusive (but no accrual beyond maturity), in which presented, in payment of any Federal income taxes (current and back personal and corporation taxes, and excess-profits taxes), or any Federal estate or gift taxes (current and back) assessed 1—796 3 1 9t against the inscribed owner or his estate. The notes must be forwarded to the Collector at the risk and expense of the owner, and, for the owner's protection, should be forwarded by registered mail, if not presented in person. y . CASH REDEMPTION A T OR PRIOR TO MATURITY 1. General.— (a) Any Treasury Savings Note of Series C not presented in payment of taxes, will be paid at maturity, or, at the option anu request of tne owner and without advance notice, will be redeemed before maturity, but the notes may be redeemed before maturity only during and after the sixth calendar month after the month of issue (as shown on the face of each note). (0) Payment at maturity or on redemption before maturity will be made at par and accrued interest to the month of payment, except, if a note is inscribed in the name of a bank that accepts demand deposits, payment at maturity or on redemption before maturity will be made only at the issue price, or par, of the note. However, if a note is acquired by any such bank through forfeiture of a loan, payment will be made at the redemption value for the month in which so acquired. 2. Execution of request for payment.—The owner in whose name the note is inscribed must appear before one of the officers authorized by the Secretary of the Treasury to witness and certify requests for payment, establish his identity, and in the presence of such officer sign the request for payment appearing on the back of the note, adding the address to which check is to be mailed. After the request for payment has been so signed, the witnessing officer should complete and sign the certificate provided for his use. 3. Officers authorized to witness and certify requests for payment.—All officers authorized to witness and certify requests for payment of United States Savings Bonds, as set forth in Treasury Department Circular No. 530, Fifth Revision, as amended, are hereby authorized to witness and certify requests for cash redemption of Treasury notes issued under this circular. Such officers include, among others, United States postmasters, certain other post office officials, officers of all banks and trust companies incorporated in the United States or its organized territories, including officers at branches thereof, and commissioned officers of the Army, Navy, Marine Corps and Coast Guard. 4. Presentation and surrender.—Notes bearing properly executed requests for payment must be presented and surrendered to the agent that issued the notes (as shown by the agent's dating stamp), at the expense and risk of the owner. For the owner's protection, notes should be forwarded by registered mail, if not presented in person. 5. Partial redemption.—Partial cash redemption of a note, corresponding to an authorized denomination, may be made in the same manner as for full cash redemption, appropriate changes being made in the request for payment. In case of partial redemption of a note, the remainder will be reissued in the same name and with the same date of issue as the note surrendered. 6. Payment.—Payment of any note, either at maturity or on redemption before maturity, will be made only by the Federal Reserve Bank or Branch or the Treasury Department, as the case may be, that issued the note, and will be made by check drawn to the order of the owner, and mailed to the address given in his request for payment. VI. P A Y M E N T OR REISSUE TO OTHER THAN INSCRIBED OWNER 1. Death or Disability.—In case of the death or disability of an individual owner and the notes are not to be presented in payment of taxes, payment will be made to the duly constituted representative of his estate, or they may be reissued to one or more of his heirs or legatees upon satisfactory proof of their right; but no reissue will be made in two names jointly or as coowners. 2. Dissolution or Merger of Corporations, etc.—If a corporation or unincorporated body, in whose names notes are inscribed, is dissolved, consolidated, merged or otherwise changcs its organization, the notes may be paid to, or reissued in the name of those persons or organizations lawfully entitled to the assets of such corporation or body by reason of such changes in organization. 3. Bankruptcy.—If an inscribed owner of notes is declared bankrupt or insolvent, pavment. but not reissue, will be made to the duly qualified trustee, receiver or similar representative if the notes are submitted with satisfactory proof of his appointment and qualification. 4. Creditors' Rights.—Pavment. but not reissue, will be made as a result of judicial proceedings in a court of competent jurisdiction, if the notes are submitted with proper proof of such proceedings and thei> finality. 5. Instructions and Information.—Before executing the request for payment or submitting the notes undpr the provisions of this section, instructions should be obtained from the issuing agent or from the Treasury Department, Division of Loans and Currency, Washington 25, D. C. VII. GENERAL PROVISIONS 1. Regulations.—Except as provided in this circular, the notes issued hereunder will be subiect to the general regulations of the Treasury Department, now or hereafter prescribed, governing bonds and notes of the United States; the regulations currently in force are contained in Department Circular No. 300, as amended. 1—790 3 4 91 2. Loss, Theft or Destruction.—In case of the loss, theft or destruction of a savings note immediate notice (which should include a full description of the note) should be given the agency which issued the note and instructions should be requested as to the procedure necessary to secure a duplicate. 3. Fiscal Agents.—Federal Reserve Banks and their Branches, as fiscal agents of the United States, are authorized to perform such services or acts as may be appropriate and necessary under the provisions of this circular and under any instructions given by the Secretary of the Treasury. 4. Amendments.—The Secretary of the Treasury may at any time or from time to time supplement or amend the terms of this circular, or of any amendments or supplements thereto, and may at any time or from time to time prescribe amendatory rules and regulations governing the offering of the notes, information as to which will promptly be furnished to the Federal Reserve Banks. D. W. BELL, Acting Secretary of the Treasury. (Filed with the Division of the Federal Register, November 23, 1943) TREASURY SAVINGS NOTES—SERIES C TABLE OF TAX-PAYMENT OR REDEMPTION VALUES AND INVESTMENT YIELDS The table below shows for each month from date of issue to date of maturity the amount of interest accrual; the principal amount with accrued interest added, for notes of each denomination; the approximate investment yield on the par amount from issue date to the beginning of each month following the month of issue; and the approximate investment yield on the current redemption value from the beginning of the month indicated to the month of maturity. Par value (issue price during month of issue) Amount of interest accrual each month after month of issue $100.00 $500.00 $1,000.00 $5,000.00 $10,000.00 $ 0 , 0 . 0 1 00 00 $500,000.00 $1,000,000.00 Tax-payment or redemption values during each monthly period after month of issue 1 Interest accrues at rate of $0.50 per month per $1,000 par amount: $100.05 $.•500. 25 First m o n t h . , . . . Second month 500.50 100.10 Third month 100.15 500. 75 Fourth month 100.20 501.00 Fifth month ... 100.25 501. 25 Sixth month.. . . . . 100.30 SOL 50 Interest accrues at rate of $0.80 per month per $1,000 par amount: 100.38 Seventh month 501. 90 Eighth month 502. 30 100.46 Ninth month 100.54 502. 70 Tenth month 503.10 100. 62 Eleventh month 100. 70 503.50 Twelfth month. 100.78 503.90 Interest accrues at rate of $0.90 per month per $1,000 par amount: Thirteenth month 100.87 504. 35 Fourteenth month 504.80 100.96 Fifteenth month 505. 25 101.05 505.70 Sixteenth month 101. 14 Seventeenth month. 506.15 101. 23 506. 60 Eighteenth month 101.32 Interest accrues at rate of $1.00 per month per $1,000 par amount: 101.42 507.10 Nineteenth month. 101.52 507. 60 Twentieth month 101.62 508.10 Twenty-first month 101.72 508.60 Twenty-second month. 101.82 509.10 Twenty-third month . 509. 60 Twenty-fourth m o n t h . . . 101. 92 Interest accrues at rate of $1.10 per month per $1,000 par amount: Twenty-fifth month 610.15 102. 03 Twenty-sixth month 510. 70 102. 14 Twenty-seventh month. 102. 25 511.25 Twenty-eighth month 102. 36 511.80 Twenty-ninth month 102. 47 512.35 Thirtieth month. 102. .58 512.90 Thirty-first month 102.69 513. 45 Thirty-seconu month _ 102. SO 514.00 Thirty-third month 102.91 514.55 Thirth-fourth month.. 103.02 515.10 Thirty-fifth month 103. 13 515. 65 Thirtv-sixth month. (MATURITY) 103.24 516.20 Approximate Approximate Investment investment yield on par yield on current tax-payment amount from or redemption issue date to values from beginning of beginning of each monthly each monthly period therejieriod to after maturity Percent Percent $1,000,500.00 1,001,000.00 1.001,500.00 1,002.000.00 1,002, 500. 00 1,1)03,000.00 .60 .60 .60 .60 .60 .60 U. 07 1.08 1.09 1.11 1.12 1. 14 1.16 501,900. 00 502, 300.00 502, 700.00 503, 100. 00 503, 500.00 503,900.00 1,003,800.00 1,004,600.00 1.005,400.00 1.006, 200.00 1.007.000.00 1,007,800.00 .65 .69 .72 .74 .76 .78 1.17 1.17 1.18 1. 19 1.20 1. 21 100,870.00 100,960.00 101.050.00 101, 140.00 101,230.00 101, 320.00 504.350.00 504. 800.00 505, 250. 00 505, 700.00 506,150.00 506, 600.00 1,008, 700.00 1,009, 600.00 1. 010, 500.00 1,011.400. 00 1.012,300. 00 1,013,200.00 .80 .82 .84 .85 .86 .88 1.22 1.22 1.23 1.24 1.25 1.26 10,142. 00 10, 152.00 10, 162. 00 10, 172. 00 10.182.00 10,192.00 101, 420. 00 101. 520.00 101.620.00 101.720.00 101,820.00 101,920.00 507,100.00 507, 600 00 508.100.00 508,600.00 509, 100.00 509,600. 00 1, 014, 200. 00 1, 015, 200. 00 1,016,200.00 1,017,200.00 1,018, 200.00 1,019, 200.00 .89 .91 .92 .93 .94 .95 1.26 1.26 1.27 1.28 1.28 1.29 5,101. 50 5,107.00 5, 112. 50 5. lis. 00 5, 123. 50 5, 129. 00 5, 134. 50 5, 140.00 5, 145. 50 5. 151.00 5,156. 50 10,203.00 10, 214. 00 10. 225. 00 10, 236. 00 10, 247. 00 10, 258.00 10, 269.00 10. 280.00 10.291.00 10, 302. 00 10,313.00 102,030.00 102, 140 00 102. 250 00 102, 360 00 102, 470. 00 102. 580.00 102,690.00 102,800.00 102,910.00 103,020.00 103, 130.00 510,150.00 510, 700. 00 511, 250 00 511.800 00 512, 350. 00 512.900.00 513,450.00 514, 000.00 514,550.00 515, 100. CO 515.650.00 1.020, 300.00 1,021, 400-00 1, 022, 500. 00 1,023, 600. 00 1, 024. 700. 00 1,025,800.00 1,026,900. 00 1,028,000.00 1,029, 100.00 1.030,200.00 1.031,300.00 .97 .98 .99 1.00 1.01 1.02 1.03 1.04 1.05 1.05 1.06 1.29 1.29 1.29 1.29 1.29 1.29 1.29 1.29 1.28 1.28 1.28 5,162.00 10,324.00 103,240.00 516,200.00 1,032,400.00 1.07 $1,000.50 1,001.00 1.001.50 1, 002. 00 1,002. 50 1,003.00 $5,002. 50 5.005.00 5,007. 50 5,010.00 5,012. 50 5,015.00 $10,005.00 10.010.00 10.015.00 10,020.00 10,025.00 10,030.00 $100,050.00 $500. 250.00 100. 100. 00 500, 500. 00 100.150.00 500. 750. 00 100, 200.00 501,000.00 100, 250.00 501,250.00 100,300.00 501, 500.00 1,003.80 1,004.60 1, 005. 40 1,006.20 1, 007.00 1,007. SO 5,019.00 5. 023.00 5,027.00 5,031.00 5,035.00 5,039. 00 10.038.00 10. 046. 00 10, 054.00 10, 062.00 10. 070 00 10,078.00 100,380.00 100,460.00 100, 540.00 100,620.00 100.700.00 100,780.00 1. 008. 70 1.009. 60 1,010.50 1,011.40 1,012. 30 1,013.20 5,043. 50 5. 048.00 5.052 50 5. 057.00 5,061.50 5,066.00 10,087 00 10,096.00 10, 105. 00 10, 114.00 10,123.00 10,132. 00 1,014.20 1,015.20 1,016. 20 1,017.20 1,018. 20 1,019. 20 5.071.00 5, 076.00 5,081.00 5.0S6. 00 5,09.1.00 5,096.00 1,020.30 1,021. 40 1. 022. 50 1,023. 60 1, 024. 70 1. 025. 80 1, 026. 90 1, 028. 00 1,029. 10 1. 030. 20 1,031.30 1,032.40 i Not acceptable in payment of taxes until during and after the second calendar month after the month of issue, and not redeemable for cash until during and after the sixth calendar month after the month of issue. 1 Approximate investment yield for entire period from issuance to maturity. U. S. GOVERNMENT PRINTING OFFICE , 16 37499"! F E D E R A L RESERVE BANK O F N E W YORK December 13, 1943. To all Banking Institutions in the Second Federal Reserve District: W e are pleased to announce that The Citizens Bank, Attica, New York, has become a member of the Federal Reserve System effective December 13, 1943. ALLAN SPROUL, President.
@FedFRASER