Omaha daily bee., 1912-04-28
GOVERNMENT ISSUES BONDS
They Are Exchanged for Postal
Savings Deposits.
AVAILABLE TO DEP0STToRS
One-HaIf Per Cent Per Annum
and Are RedeemabIe After
First Year.

accepting postal savings deposits in eN'
change for postal savings bonds, The
first issue OF these securities will be made
on July l. 1872. and all depositors desir,
ing this exchange must have their ap'
pllcations filed at their local savings
bank by June /, one month before the
date OF issue.
Only depositors in postal savings banks
can become holders OF these bonds The
bonds are exchanged for a whole or a
part OF deposit in denominations Of $40
500 500 and multiples thereof. bearing
interest from July l, 1912. at the rate OF
annually and redeemsble at the pleasure
Of the United States after one year from
the date OF issue.
The government has a triple purpose In
the issue Of these bonds-as greater pro-
lection TO the patron Of the postal savings
bank. higher rate OF interest to the
holder OF the bonds than he now re-
ceives and the call of the money into the
treasury OF the United States that is now
redeposited with local bank in the city
where the postal bank operates This
money received by the treasury will bring
a more easy condition TO federal finan-
cial affairs and allows the government
higher rate Of interest on the money than
il now gets from the national banks.
The issue covers two kinds of bonds,
registered and coupon.
Coupon bonds are preferable for de-
positor who wants to hold them for
short time only and who has facilities
for their safe-keeping. They are payable
to bearer and title passes from the de-
llverer without Endorsement the same as
national bank notes and government GER
tificates. Interest on this class Of bonds
is collected by means Of interest coupons,
which are detached by the holder as they
become due.
Registered bonds are ''close-fitting,
the name Of the person to whom they
are issued being inscribed on the face Of
the paper. They are preferable for de-
positors who wish to hold them for a
considerable length Of time and are only
payable to the person to whom issued or
his assigns. The ownership Of these
bonds are transferred only by assignment
in the proper form. This consists OF the
filling in and signing Of a form printed
on the back OF the bond and before q
witness.
Excerpts from the circular letter re-
ceived at the Omaha Postal Savings bank
are as follows:
Description of Savings bonds
BY applying on or before June l, 1911,
deposItors OF the postal savings system
may exchange the whole or a part Of
their deposits for United States regis
tered or coupon bonds In denominations
July /. 1912, at the rate OF 2a per cent
per annum, payable semi-annually. and
redeemable at the pleasure Of the United
States after one year from the date
of3issue. both principal and interest pay
able twenty years from that date In
United States gold coin. My. ----,
Postal savings bonds are exempt from
ss.weii as from taxation in any form by
orr under state, municipal or local au-
thprity.
Applications for the conversion OF de-
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~, a. nos,,ns,or =, ~. sonoS,.or, al
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suiIei'uei VIZ. ''' appIea'.o" pOs"l' So
nss ee'th'oa'es oo'e'i"e .ne atnou"' u
inc oohus oesheu, lot "hieh tle posi-
master VIII give MN receipt "heh the
postmaster receives the bonds applied
for ne VIII nouty the depositor and Will
denver the bonds on presentation OF the
receipt for the ceruficates surrendered
The conversion OF deposits into bonds
at a date less than one year after the
certificates began to bear interest for
feits interest on the deposits as In the
case of withdrawal for any other purpose.
Postal savings bonds can be procured
only by the conversion Of postal savings
deposits and will not be issued to per-
sons; who are not depositors. They may