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Fiscal A g e n t o f the U nited States

r Circular N o. 3 6 6 6*1
M a rch S , 1951


T o all B anking Institutions, and Others Concerned,
in the Second F ederal R eserve D istrict:

The following statement was made public on March 4, 1951:
The Secretary o f the Treasury announced today that there w ill be offered fo r a limited period a
new investment series o f long-term non-marketable Treasury bonds in exchange fo r outstanding 2 ^ %
Treasury bonds o f June 15 and December 15, 1967-72, the details o f which w ill be announced on
March 19.
The new bonds w ill be issued in registered form only, with appropriate maturity, and will bear
interest at the rate o f 2 % % per annum payable semi-annually. They will n ot be transferable or
redeemable prior to m aturity; however, owners o f such non-marketable bonds w ill be given an option
o f exchanging them p rior to m aturity fo r marketable Treasury notes bearing terms to be announced in
the official offering.
The new non-marketable 2 % % Treasury bonds will be acceptable at par and accrued interest in
paym ent o f Federal estate and inheritance taxes due follow ing the death o f the owner. They will not
be acceptable in paym ent o f Federal income taxes.
The offering o f this new security is fo r the purpose o f encouraging long-term investors to retain
their holdings o f Government securities, in order to minimize the monetization o f the public debt
through liquidation o f present holdings o f the Treasury bonds o f 1967-72.
The Secretary stated that he planned to open the subscription books on Monday, March 26, and
that the fu ll terms o f the offering and the official circular would be made available on March 19. The
subscription books will remain open fo r a period o f about two weeks, although the Secretary will reserve
the right to close the books at any time without notice.
The Secretary indicated that a special offering o f Series F and G bonds, or an offering similar to
the 2 ^ % Treasury bonds, Investment Series A-1965, will probably be made available fo r cash
subscription at a later date when it appears that a need therefor may exist.

Additional copies o f this circular will be furnished upon request.






Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102