The citizen. (Honesdale, Pa.) 1908-1914, 1911-12-06
Postal Savings Bonds
Depositors May Exchange Their Saw
ings For Government 21s S.

Depositors May Exchange Their Saw
ings For Government 21s S.
Depositors in the Postal Savings
Bank will be glad to learn that Pos
tai Savings Bonds are to be issued
January |, 1912. The information
concerning this new departure is as
follows:
Depositors of the Postal Savings
System may exchange the whole or a
part of their deposits on January l.,
| 1912, for United States registered
or coupon bonds in denominations of
$40, 500 and $500, bearing interest
at the rate of 21s per cent. per an
mum, payable semi-annually, and re-
deemable at the pleasure of the
United States after one year from
the date of issue, both principal and
interest payable 20 years from that
date in United States gold coin.
Postal Savings bonds are exempt
from all taxes or duties of the
United States, as well as from tax
alton in any form by or under State,
municipal, or local authority.
Applications for the conversion of
deposits into bonds on January u,
1912, must be received before De-
| cember 15, 1911, by the postmaster
at the depository office where the
| certificates were issued. The post
master will supply an application
form which must be made out in
triplicate. The depositor must in
dorse and surrender with his appli-
cation postal savings certificates
covering the amount of the bonds de-
| sired, for which the postmaster will
give him a receipt. When the post
master receives the bonds applied
for he will notify the depositor and
will deliver the bonds on presenta-
tion of the receipt for the certifi-
Gates surrendered.
The conversion of deposits into
bonds at a date less than one year
after the certificates began to bear
interest forfeits interest on the de-
positS as in the case of withdrawal
for any other purpose
Postal savings deposits converted
into bonds are not counted as a part
of the maximum of $500 allowed
one depositor, and there is no limi-
tation on the amount of available
postal savings bonds which may be
acquired finally by a depositor. The
exchange is considered as taking eff
feet on January l, and a depositor
who has applied to convert into
bonds all or part of the maximum
balance of $500 may deposit an addi-
t1onal amount in January, though
the bonds may not yet have been de-
livered.
Postal savings bonds can be pro-
cured only by the conversion of pos
tai savings deposits and will not be
Issued to persons who are not de-
positors. They may be sold or as
signed to any person, however, by
the hoIuer, and when a registered
bond is assigned a new bond will be
issued in the name of the owner.
The depositor's application must
indicate whether bonds are desired
in registered or coupon form. Cou-
pom bonds are preferable for a de-
positor who intends to hold them
for a short time only and who has
ample facilities for their safekeep-
ing. These bonds are payable to
bearer, and the title will pass by
delivery without Endorsement. In
terest on coupon bonds is collected
by means of interest coupons, which
are detached by the holder as they
become due.
Registered bonds are preferable
for persons intending to hold them
for a considerable period, and they
differ from coupon bonds in the fol-
lowing respects:
(a) They have inscribed upon
their face the names of the persons
to whom they are issued.
CD They are payable only to the
persons to whom issued or their as
signs.
(c) The ownership of registered
hOn0S ran ha traOcfarrad ool,r h.. -.
signment in proper form.
Registered bonds are assigned by
the use of form printed on the
back, properly dated and acknowl-
edged. When the assignment is
made by mark, it must be witnessed
Dy at least one person other than
the ofiloer before whom it is made.
A ledger account is opened in the
treasury Department at Washington
with each holder of one or more reg
istered bonds, and when such bonds
are assigned they should be trans
mitted by the new owner to the
Secretary of the Treasury division
of Loans and Currency for trans
fer on the books of the department.
Registered bonds can not be exchang-
ed for coupon bonds. Coupon bonds
may be converted into registered
bonds, without charge, at the re-
quest of the holder.
Under the regulations of the
Treasury Department a minor can
not assign registered bonds without
the consent. of a duly appointed
guardian or trustee, evidence of
whose authority must be submitted.
A minor has the right to convert his
postal savings certificates into regis
tered bonds, but if he should desire
to assign the bonds during his min
ority he must comply with this reg
ulation. This difficulty does not
exist in the case of coupon bonds,
which are transferred by mere de-
livery.
Interest on registered bonds is
paid by checks drawn at the Treas
ury department in favor of the reg
istered holder. These checks are
sent by mail to the postoffice address
OF the holder, and the holder of a
registered bond should notify the
Secretary of the Treasury division
of Loans and CurrencV) of anv