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FEDERAL RESERVE BANK OF NEW YORK Fiscal A g e n t of the United States No. 2 9 5 2 1 [Circular June 1, 1945 J CASH OFFERING To Certain Commercial Banks 1 y 2 Percent Treasury Bonds of 1950 Dated June 1,1945 Due December 15,1950 % Percent Treasury Certificates of Indebtedness of Series E-1946 United States Savings Bonds, Series F United States Savings Bonds, Series G Dated June 1,1945 To all Commercial Banks in the Second Federal Reserve Due June 1,1946 District: The Secretary of the Treasury has announced that, in connection with the Seventh W a r Loan Drive, commercial banks, which are defined for this purpose as banks or trust companies accepting demand deposits, will be permitted to subscribe for their own account, subject to the limitations stated below, to United States Savings Bonds of Series F and Series G, and to \ l/2% Treasury Bonds of 1950 and % % Treasury Certificates of Indebtedness of Series E-1946. However, all such subscriptions will be considered outside of the 14 billion dollar goal of the drive and will not be considered a part of any quota. Copies of the official circulars relating to the offerings of such issues are included in our Circular No. 2935, dated May 1, 1945, which has been sent to all banking institutions in the Second Federal Reserve District. Subscriptions by such banks for their own account to the issues referred to above may not exceed, in the aggregate, 10°/o of the combined amount of time certificates of deposit (but only those issued in the names of individuals, and of States, municipalities, political subdivisions, corporations, associations and other organizations not operated for profit) and of savings deposits (as such deposits are defined in Regulation Q of the Board of Governors of the Federal Reserve System*), as shown on the bank's books as of the date of the most recent call statement required by the supervisory authorities prior to the date of the subscription for such securities, or $500,000, whichever is less. In any event, a bank may not hold more than $100,000 (issue price) of Savings Bonds of Series F-1945 and Series G-1945 combined. If 10% of the combined amount of savings deposits and eligible time certificates of deposit is an odd amount, the aggregate amount of its subscriptions may be adjusted to the next highest $1,000. Copies of 'our Application Form No. 8, for use by commercial banks in submitting subscriptions for their own account to the issues referred to above, are enclosed. A separate application should be submitted, for each issue in respect of which a subscription is to be entered. Subscriptions may be made only during the period June 18 to June 30, 1945, both dates inclusive. Each of the marketable issues will be sold at par plus accrued interest from June 1, 1945 to June 18, 1945, or such later date as payment is available to us, except that accrued interest is waived on $500 and $1,000 subscriptions to the 1^2% Treasury Bonds of 1950. The regulations governing United States Savings Bonds provide that such bonds may not be hypothecated as collateral; accordingly, bonds of Series F or Series G may not be deposited with us as collateral for a W a r Loan Deposit Account. There is no restriction upon the use oi i y 2 % Treasury Bonds of 1950 or Y%°/o Treasury Certificates of Indebtedness of Series E-1946 as collateral, and securities of such issues belonging to a banking institution qualified as a special depositary of public funds will be acceptable as collateral for its W a r Loan Deposit Account. ALLAN SPROUL, President. * Sections 1 (c) and 1 (e) of Regulation Q, which define time certificates of deposit and savings deposits, respectively, are printed on the reverse side of this circular. Extracts from Regulation Q of the Board of Governors of the Federal Reserve System SECTION 1. DEFINITIONS ( c ) T i m e certificates of deposit.—The term " t i m e certificate of d e p o s i t " means a deposit evidenced by a negotiable or nonnegotiable instrument which provides on its face that the amount of such deposit is payable to bearer or to any specified person or to his o r d e r — ( 1 ) On a certain date, specified in the instrument, not less than 30 days after the date of the deposit, or ( 2 ) A t the expiration of a certain specified time not less than 30 days after the date of the instrument, or ( 3 ) U p o n notice in writing which is actually required to be given not less than 30 days before the date of repayment, 1 and ( 4 ) I n all cases only upon presentation and surrender of the instrument. • • • • ( e ) Savings deposits.—The term " s a v i n g s d e p o s i t " means a deposit, evidenced by a pass book, consisting of f u n d s ( i ) deposited to the credit of one or more individuals, or of a corporation, association or other organization operated primarily f o r religious, philanthropic, charitable, educational, fraternal or other similar purposes and not operated f o r profit, 4 or ( i i ) in which the entire beneficial interest is held b y one or more individuals or b y such a corporation, association or other organization, and in respect to which deposit— ( 1 ) The depositor is required, or may at any time be required, b y the bank to give notice in writing of an intended withdrawal not less than 30 days before such withdrawal is m a d e ; ( 2 ) Withdrawals are permitted in only two ways, either ( i ) upon presentation of the pass book, through payment to the person presenting the pass book, or ( i i ) without presentation of the pass book, through payment to the depositor himself but not t o any other person whether or not acting f o r the depositor.® The presentation b y any officer, agent or employee of the bank of a pass book or a duplicate thereof retained b y the bank or b y any of its officers, agents or employees is not a presentation of the pass book within the meaning of this regulation except where the pass book is held b y the bank as a p a r t of an estate of which the bank is a trustee or other fiduciary, or where the pass book is held b y the bank as security f o r a loan. I f a pass book is retained b y the bank, it m a y not be delivered to any person other than the depositor f o r the purpose of enabling such person to present the pass book in order to make a withdrawal, although the bank m a y deliver the pass book to a d u l y authorized agent of the depositor f o r transmittal to the depositor. E v e r y withdrawal made u p o n presentation of a pass book shall be entered in the pass book at the time of the withdrawal, and every other withdrawal shall be entered in the pass book as soon as practicable after the withdrawal is made. 1 A deposit with respect to which the bank merely reserves the right to require notice of not less than 30 days before any withdrawal is made is not a "time certificate of deposit" within the meaning of the above definition. * Deposits in joint accounts of two or more individuals may be classified as savings deposits if they meet the other requirements of the above definition, but deposits of a partnership operated for profit may not be so classified. Deposits to the credit of an individual of funds in which any beneficial interest is held by a corporation, partnership, association or other organization operated for profit or not operated primarily for religious, philanthropic, charitable, educational, fraternal or other similar purposes may not be classified as savings deposits. * Presentation of a pass book may be made over the counter or through the mails; and payment may be made over the counter, through the mails or otherwise, subject to the limitations of paragraph (2) above as to the person to whom such payment may be made. F O R M NO. Application Number 8 CASH SUBSCRIPTION FOR OWN ACCOUNT B Y BANK HOLDING DEMAND DEPOSITS Percent Treasury Bonds of 1950 United States Savings Bonds, Series F % Percent Treasury Certificates of Indebtedness of Series E-1946 FEDERAL RESERVE B A N K OF N E W United States Savings Bonds, Series G YORK, F i s c a l A g e n t of the United States, F e d e r a l Reserve P . 0 . Station, N e w Y o r k 7, N . Y . 1945 P u r s u a n t to the p r o v i s i o n s o f the a p p r o p r i a t e T r e a s u r y D e p a r t m e n t C i r c u l a r , please enter subscription, f o r o u r o w n a c c o u n t , f o r the issue a n d in the f o r m a n d a m o u n t i n d i c a t e d below : (A Separate Application Should Be Submitted Percent Treasury Bonds of 1950 D a t e d J u n e 1, 1 9 4 5 face amount $ accrued $ total Q Coupon f o r m Q '- For) D u e J u n e 1, 1 9 4 6 .face amount . a c c r u e d interest, if payment Registered form $ issue ( c o s t ) any total payment (Accrued interest must be computed from June 1, 1945 to June 18, 1 945, or such later date as funds will be available to Federal Reserve Bank, at the rate of $0,024 per day per $1,000 face amount). United States Savings Bonds, Series G face amount $ Applied interest United States Savings Bonds, Series F $ Issue D a t e d J u n e 1, 1 9 4 5 (Accrued interest must be computed from June 1, 1945 to June 18, 1945, or such later date as funds will be available to Federal Reserve Bank, at the rate of $0,041 per day per $1,000 face amount). I N D I C A T E ONE Each Ys Percent Treasury Certificates of Indebtedness of Series E-1946 D u e D e c e m b e r 15, 1950 $ For $ face amount price ( S e r i e s G B o n d s are issued at p a r ) . ( I s s u e ( c o s t ) p r i c e o f S e r i e s F B o n d s is 7 4 % o f f a c e a m o u n t or maturity value). Registered F o r m Only Registered F o r m Only P l e a s e i s s u e a n d d i s p o s e o f s u c h b o n d s as f o l l o w s : Pieces Denominations $ 25 t nn •LUU cnn OUU Leave Blank DISPOSITION (Series F only) [ D e l i v e r o v e r the c o u n t e r to the u n d e r signed. [ S h i p to the (Series F and G only) [ (Series F and G and 11/2% Bonds only) H o l d in safekeeping banks o n l y ) . 1,000 5,000 (for member u 10,000 100,000 undersigned. 2S£3$> ( N o changes in delivery be accepted.) P a y m e n t i n f u l l f o r s u c h s e c u r i t i e s is m a d e as f o l l o w s : p~] B y check and/or cash herewith. |—| By charge to our Reserve Account which is hereby authorized. (For use of member banks only) p-j B y credit to our War Loan Deposit Account ( f o r use of quali— fied depositaries o n l y ) . The election to pay by credit will be deemed a certification by the officer who signs this subscription form that the full amount of payment due on this subscription lias been deposited on the date hereof 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. TO S U B S C R I B E R : * Sections 1 (c) and 1 (e) of Regulation Q of the Board of Governors of the Federal Reserve System which define time certificates of deposit and savings deposits, respectively, are printed on the reverse side of this form. T y p e w r i t e o r print exact c o r p o r a t e title for registration purposes Original subscription • Confirmation of a telegram • Confirmation of • By.. Official signature required Title City, Town or Village, P. O. No., and State DO N O T U S E SPACES B E L O W SUBSCRIPTION Delivery Receipt RECORD R e c e i v e d f r o m 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 t h e a b o v e PAYMENT RECEIVED EXAMINED Subscriber Date. RELEASED Taken from Vault described United States Government obligations in the amount indicated above. CARDED Counted will WE HEREBY CERTIFY that the total amount of this subscription, together with that of any other subscriptions we may have entered f o r our own account during the period of the Seventh War Loan Drive, for Series F or Series G Savings Bonds, percent Treasury Bonds o f 1950 or y 8 percent Treasury Certificates of Indebtedness of Series E-1946 is not in excess of 10 percent of the combined amount of time certificates of deposit (but only those issued in the names of individuals, and of States, municipalities, political subdivisions, corporations, associations and other organizations not operated f o r profit) and of savings deposits*, as shown on our books as of the date of the most recent call statement required by the supervisory authorities prior to the date of this subscription, and does not exceed $500,000 (issue price) in the aggregate. We further certify that the total amount of subscriptions entered f o r our own account to Savings Bonds of Series F-1945 or Series G-1945, including this subscription, does not exceed in the aggregate $100,000 (issue price). Name of banking institution. Please indicate whether thia is: a letter instructions By. Checked Delivered Extracts f r o m R e g u l a t i o n Q of the B o a r d of Governors of the F e d e r a l Reserve System SECTION 1. DEFINITIONS ( c ) Time certificates of deposit.—The term " t i m e certificate of deposit" means a deposit evidenced by a negotiable or nonnegotiable instrument which provides on its face that the amount of such deposit is payable to bearer or to any specified person or to his order— ( 1 ) On a certain date, specified in the instrument, not less than 30 days after the date of the deposit, or (2) A t the expiration of a certain specified time not less than 30 days after the date of the instrument,'or (3) Upon notice in writing which is actually required to be given not less than 30 days before the date of repayment, 1 and (4) I n all cases only upon presentation and surrender of the instrument. * « # * (e) Savings deposits.—The term "savings d e p o s i t " means a deposit, evidenced by a pass book, consisting of funds (i) deposited to the credit of one or more individuals, or of a corporation, association or other organization operated primarily f o r religious, philanthropic, charitable, educational, fraternal or other similar purposes and not operated for profit, 4 or (ii) in which the entire beneficial interest is held by one or more individuals or by such a corporation, association or other organization, and in respect to which deposit— (1) The depositor is required, or may at any time be required, by the bank to give notice in writing of an intended withdrawal not less than 30 days before such withdrawal is made; ( 2 ) Withdrawals are permitted in only two ways, either ( i ) upon presentation of the pass book, through payment to the person presenting the pass book, or (ii) without presentation of the pass book, through payment to the depositor himself but not to any other person whether or not acting for the depositor. 5 The presentation by any officer, agent or employee of the bank of a pass book or a duplicate thereof retained by the bank or by any of its officers, agents or employees is not a presentation of the pass book within the meaning of this regulation except where the pass book is held by the bank as a part of an estate of which the bank is a trustee or other fiduciary, or where the pass book is held by the bank as security f o r a loan. If a pass book is retained by the bank, it may not be delivered to any person other than the depositor for the purpose of enabling such person to present the pass book in order to make a withdrawal, although the bank may deliver the pass book to a duly authorized agent of the depositor f o r transmittal to the depositor. E v e r y withdrawal made upon presentation of a pass book shall be entered in the pass book at the time of the withdrawal, and every other withdrawal shall be entered in the pass book as soon as practicable after the withdrawal is made. 1 A deposit with respect to which the bank merely reserves the right to require notice of not less than 30 days before any withdrawal is made is not a " t i m e certificate o f d e p o s i t " within the meaning of the above definition. 4 Deposits in joint accounts of two or more individuals may be classified as savings deposits if they meet the other requirements of the above definition, but deposits of a partnership operated f o r profit may not be so classified. Deposits to the credit of an individual of funds in which any beneficial interest is held by a corporation, partnership, association or other organization operated f o r profit or not operated primarily f o r religious, philanthropic, charitable, educational, fraternal or other similar purposes may not be classified as savings deposits. * Presentation of a pass book may be made over the counter or through the mails; and payment may be made over the counter, through the mails or otherwise, subject to the limitations of paragraph ( 2 ) above as to the person to whom such payment may be made.
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