PUBLIC LAWS-CH. 7-FEB. 19, 1941 transfer, as the Secretary of the Treasury may from time to time prescribe. Basis on which is- "(b) Savings bonds and savings certificates may be issued on an sued, interest-bearing basis, on a discount basis, or on a combination inter- est-bearing and discount basis and shall mature, in the case of bonds, not more than twenty years, and in the case of certificates, not more than ten years, from the date as of which issued. Such bonds and certificates may be sold at such price or prices, and redeemed before maturity upon such terms and conditions as the Secretary of the restrate, etc. Treasury may prescribe: Provided, That the interest rate on, and the issue price of, savings bonds and savings certificates and the terms upon which they may be redeemed shall be such as to afford an invest- ment yield not in excess of 3 per centum per annum, compounded Denominations, semiannually. The denominations of savings bonds and of savings certificates shall be such as the Secretary of the Treasury may from time to time determine and shall be expressed in terms of their ma- Holdings. turity values. The Secretary of the Treasury is authorized by regu- lation to fix the amount of savings bonds and savings certificates issued in any one year that may be held by any one person at any one time. Iet, of stncampsa "(c) The Secretary of the Treasury may, under such regulations tial payments. and upon such terms and conditions as he may prescribe, issue, or cause to be issued, stamps, or may provide any other means to evi- dence payments for or on account of the savings bonds and savings certificates authorized by this section, and he may make provision for Denominations, the exchange of savings certificates for savings bonds. The limitation on the authority of the Postmaster General to prescribe the denomi- nations of postal-savings stamps contained in the second paragraph of section 6 of the Act of June 25, 1910, as amended (U. S. C., title 39, 36 Stat. 815 . sec. 756), is removed; and the Postmaster General is authorized, for the purposes of such section and to encourage and facilitate the ac- cumulation of funds for the purchase of savings bonds and savings certificates, to prepare and issue postal-savings stamps in such de- nominations as he may prescribe. Taxexetin avingn "(d) The provisions of section 7 of this Act, as amended (relating bonds. to exemptions from taxation), shall apply to savings bonds issued 40 Stat. 201 . 31U t . .'c' 747. before the effective date of the Public Debt Act of 1941. For pur- poses of taxation any increment in value represented by the difference between the price paid and the redemption value received (whether at or before maturity) for savings bonds and savings certificates shall lerculation privi- be considered as interest. The savings bonds and the savings cer- tificates shall not bear the circulation privilege. Availability of "(e) The appropriation for expenses provided by section 10 of this Act and extended by the Act of June 16, 1921 (U.S . C ., title 31, secs. 0 Stat. 292. 760 and 761), shall be available for all necessary expenses under this section, and the Secretary of the Treasury is authorized to advance, from time to time, to the Pastmaster General from such appropria- tion such sums as are shown to be required for the expenses of the Post Office Department and of the Postal Service, in connection with the handling of savings bonds, savings certificates, and stamps or other means provided to evidence payment therefor, which sums may be used for additional employees or any other expenditure, wherever or in whatever class of post office incurred, in connection with such handling. issue. rr "(f) No further original issue of bonds authorized by section 10 of 36 Stat. 817. the Act approved June 25, 1910 (U. S. C., title 39, sec. 760), shall be made after July 1, 1935. icesca agency serv- "(g) At the request of the Secretary of the Treasury the Post- master General, under such regulations as he may prescribe, shall [55 STAT.
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