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FEDERAL RESERVE BANK OF NEW YORK F is c a ! A g e n t o f the U n ite d S ta te s August 1 , 19 78 ISSUANCE OF SERIES E AND H SAVINGS BONDS TEMPORARILY SUSPENDED T*o A // :n /or Stconi/ F e ^ r a / Savings Bon</^ D n^nc/.' The Treasury Department has asked us to advise you as follows: Because an increase in the debt ceiling has not been authorized, it is necessary* to suspend the issuance of Series E and Series H Savings Bonds until further notice. Applications for over-the-counter issues or for the exchange of Series E for Series H bonds should not be accepted and bond-a-month plans should be suspended until further notice. Companies operating payroll savings plans should continue withholding on a regular basis and retain the proceeds in special accounts. The proceeds should not be remitted to Federal Reserve Banks nor should the bonds be issued until further notice. When the debt ceiling legislation has been approved, agents will be authorized to issue bonds to participants with dating as of the first day of the month in which the full purchase price of bonds was accumulated by the company operating the plan. This delay in the issuance of bonds will not cause loss to purchasers or disruption of payroll savings plans because all bonds issued will earn interest from the appropriate issue dates. If any agents are in the process of issuing Series E bonds on payroll savings plans with issue dates prior to August 1973, these issues may be completed and the proceeds accounted for in the regular way. No August-dated issues should be made, however, until further notice. P A U L A . VOLCKER, P r e s id e n t
@FedFRASER