The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
FEDERAL R E SER VE BANK OF NEW YORK Fiscal A gen t o f the U nited States r C ircu lar N o . 5 1 1 5 ~1 L N o v e m b e r 27, 1961 J Annual Limit of $20,000 Restored on Series H Savings Bonds To Issuing A gen ts fo r Savings Bonds in the Second Federal Reserve D istrict: The following statement was made public by the Treasury Department on November 24: The Treasury today announced that after January 1,1962, up to $20,000 in Series H savings bonds may be purchased annually by any one buyer. Since 1957, the limit has been $10,000. The annual limit on both E and H savings bonds was reduced from $20,000 to $10,000 on May 1, 1957, after having been set at the higher figure in 1952. The new ruling will not change the present limit of $10,000 on E bonds, face value. Acting Secretary Robert V. Roosa said the current restoration of the $20,000 purchase limitation on H bonds comes as a result of the Treasury’s 4% years’ experience with the lower amount, and a growing demand by smaller institutional investors for a higher limit. Such investors— partnerships, corporations, pension funds, and others— have been eligible buyers of these securities only since 1958. Interest is payable on these bonds semi-annually by check, and amounts to an investment yield of 3% percent if held for the full 10 years until maturity. Records show that about 8 percent of H bond cash sales are made to investors other than individuals, while the figure is less than 2 percent for E bonds. Thus, the demand for a higher purchase limit primarily involved H bonds. Purchases of Series H bonds are np by 14 percent this year. Cash sales for the first 10 months of 1961 were $703 million, as compared with $616 million for the same period of 1960. A l fr e d H a y e s, P r e s id e n t.
@FedFRASER