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FEDERAL RESERVE BANK OF NEW YORK r Circular No. 2 8 4 9 1 L October 9, 1944 J Method of Reporting Paid United States Savings Bonds on Reports of Deposits for Reserve Purposes and in Call Reports of Condition, etc. To Each Member Bank in the Second Federal Reserve District: In our Circular No. 2834, dated September 5, 1944, we included a copy of Treasury Department Circular No. 750, dated September 5, 1944, containing regulations governing payments by incorporated banks and trust companies in connection with the redemption of United States Savings Bonds. Several inquiries have recently been received from member banks, which have been qualified to make such payments, as to: (1) How bonds paid by them, for which they have not yet received settlement from us, should be reported in reports of deposits for reserve purposes, and in call reports of condition; and (2) How amounts received by them from us on behalf of the Treasury Department in reimbursement for their services in paying bonds (as provided in section 321.5 of Treasury Department Circular No. 750) should be reported in reports of earnings and dividends. If it is your practice to forward paid bonds to us on the day on which you make payment or on the following business day, such bonds should be treated as cash items in process of collection. If it is your practice to hold paid bonds for a longer period before forwarding them to us they should be treated as cash items not in process of collection until the day they are forwarded for collection, when they should be treated as cash items in process of collection. Cash items in process of collection are to be reported under item 2(a) of your Report of Net Demand and Time Deposits (Form R.B. 13 if you report semi-monthly, or Form R.B. 20 if you report weekly), and under item 1 of Schedule D of your Report of Condition (Treasury Department Form 2130A in the case of a national bank, and Form FR 105 in the case of a state member bank). Cash items not in process of collection should not be reported on your Report of Net Demand and Time Deposits, but should be reported under item 4 of Schedule H of your Report of Condition. All amounts received by you for your services in paying bonds, pursuant to section 321.5 of Treasury Department Circular No. 750, should be reported with "Other service charges, commissions, fees, and collection and exchange charges" in item 1(e) of Section 1 of your Report of Earnings and Dividends (Treasury Department Form 2129 in the case of a national bank, and Form FR-107 in the case of a state member bank). Additional copies of this circular will be furnished upon request. ALLAN SPROUL, President. FEDERAL RESERVE BANK OF NEW YORK Fiscal Agent of the United States October 10,1944. REDEMPTION OF UNITED STATES SAVINGS BONDS Preparation and Shipment of Paid Bonds to Federal Reserve Bank To all Incorporated Banks and Trust Companies in the Second Federal Reserve District Qualified to Make Payments in Connection with the Redemption of United States Savings Bonds: Certain irregularities have appeared in connection with the preparation and shipment to us of United States Savings Bonds paid by incorporated banks and trust companies pursuant to Treasury Department Circular No. 750, dated September 5, 1944. In order to avoid such irregularities in the future, the following instructions should be observed: 1. The amounts of paid bonds listed on the transmittal letter (Form Sav. B-28) should be totaled, and the table appearing under the caption ' 1 Number of Pieces Forwarded Herewith" should be completed. 2. The original copy of the transmittal letter (Form Sav. B-28) should be forwarded to us in the same package with the paid bonds. 3. No other matter should be included in the package containing the paid bonds and transmittal letter. 4. Paid bonds should be shipped to us in the same or a substantially similar manner in which you ship checks for cash collection. There is no authority, however, for the shipment of paid bonds by fourth class insured mail to be treated as registered mail and, accordingly, you should not attach to packages of paid savings bonds the stickers which are furnished to you for use in sending to us savings bond stubs, spoiled savings bonds and unissued or excess stock of savings bonds. 5. In some instances we have received requests to insure shipments of paid savings bonds under our registered mail policies. In this connection, attention is directed to the fact that paid bonds prepared for dispatch and shipped in accordance with the instructions of the Treasury Department will be at the risk of the United States, and covered under the Government Losses in Shipment Act. 6. Bonds paid by banks and trust companies situated in the territory assigned to our Buffalo Branch should be forwarded to the Branch. ALLAN SPKOUL, President.
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