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FED ERAL RE SE R V E BANK OF NEW YORK Fiscal A g e n t o f the U nited States r Circular N o. 3 6 6 6*1 L M a rch S , 1951 J ANNOUNCEMENT REGARDING NEW TREASURY OFFERING 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. A llan S proul, President.