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FEDERAL RESERVE BANK OF NEW YORK Fiscal A gen t o f the U nited States r Circular N o. 5 3 4 2 ~1 L June 6, 1963 J Treasury to Borrow S l 1/^ Billion by Offering 7-Year 4 % Bonds To All Banking Institutions, and Others Concerned, in the Second Federal Reserve D istrict: The following statement was made public today by the Treasury Department: The Treasury, in beginning its cash borrowing program fo r the remainder of the year, will offer a 7-year 2-month bond carrying a 4 percent coupon at par. The offering will be made for cash subscription on Tuesday, June 11. The 4 percent Treasury bonds are to be dated June 20, 1963, and will mature on A ugust 15, 1970. Payment, which will be due on June 20, may be made through credit to Treasury Tax and Loan Accounts. In addition to the amount of bonds to be offered for public subscription, the Secretary o f the Treasury reserves the right to allot up to $50 million of the bonds io Government Investment Accounts. Subscriptions will be received fo r one day only, on Tuesday, June 11. A ll subscriptions fo r the bonds addressed to a Federal Reserve Bank, or to the Treasurer of the United States, W ashington 25, D. C., and placed in the mail before midnight, June 11, will be considered timely. A ll subscribers requesting registered bonds will be required to furnish appropriate iden tifyin g numbers as required on tax returns and other documents submitted to the Internal Revenue Service. Subscriptions to the 4 percent Treasury Bonds of 1970 from banking institutions fo r their own account and from Federally insured savings and loan associations, States, political subdivisions or instru mentalities thereof, public pension and retirement and other public funds, international organizations in which the United States holds membership, foreign central banks and foreign States, and dealers who make prim ary markets in Government securities and report daily to the Federal Reserve Bank of New Y ork their positions with respect to Government securities and borrowings thereon, will be received without deposit. Subscriptions from all others must be accompanied by paym ent o f 10 percent of the amount of bonds applied for, not subject to withdrawal until after allotment. Subscriptions from commercial banks for their own account will be restricted in each case to an amount not exceeding 10 percent of the combined amount o f time and savings deposits, including time certificates o f deposit, or 25 percent o f the combined capital, surplus, and undivided profits, of the subscribing bank, whichever is greater. Interest will be payable semiannually on February 15 and August 15, in each year until the bonds mature. The first interest coupon, payable February 15, 1964, will cover interest accrued from June 20, 1963 to February 15, 1964. The Secretary o f the Treasury reserves the right to reject or reduce any subscription, to allot less than the amount o f bonds applied for, and to make different percentage allotments to various classes of sub scribers. Subject to these reservations, subscriptions in amounts up to and including $100,000 will be allotted in full and subscriptions over $100,000 will be allotted on a percentage basis but not less than $100,000. Commercial banks and other lenders are requested to refrain from making unsecured loans, or loans collateralized in whole or in part by the bonds subscribed for, to cover the deposits required to be paid when subscriptions are entered, and banks will be required to make the usual certification to that effect. A ll subscribers to the bonds are required to agree not to purchase or to sell, or to make any agree ments with respect to the purchase or sale or other disposition of the securities subscribed fo r under this offering, until after midnight, June 11. The official offering circular and subscription forms will be mailed to reach you before Tuesday, June 11. A lfred H ayes, President.
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