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FEDERAL RESERVE BANK OF NEW YORK Fiscal A gent of the United States I" Circular No. 6 0 0 8 ~1 July 26, 1967 J L Treasury Announces August Refunding Terms r itiw 8 t l l ‘ ) a i9 0 l^ K V H t; j.iH ril o t 7 0 s. u ) *10 ‘ tfiB ll'/U JfJ O f tO fl 4M*I$fi o t OIK IJg I f A To All Banking Institutions, and Others Concerned, in the Second Federal Reserve District: The following statement was made public today by the Treasury Department: The Treasury will borrow $9.6 billion, or thereabouts, through the issuance of a 15-month 5 ^ percent Treasury note at a price of 99.94 (to yield about 5.30 percent) for the purpose of paying off in cash a like amount of the following Treasury securities maturing August 15, 1967: $5,610 million of 5*4 percent Treasury Certificates of Indebtedness of Series A-1967, dated August 15, 1966; $2,094 million of 3% percent Treasury Notes of Series A-1967, dated September 15, 1962; and $1,904 million of 4 % percent Treasury Notes of Series E-1967, dated February 15, 1966. The amount of the maturing securities held by the public is $3.6 billion. Interest will be payable on the 15-month notes on November 15, 1967, and May 15 and November 15, 1968. The notes will be available in registered and bearer form. All subscribers requesting registered notes will be required to furnish appropriate identifying numbers as required on tax returns and other documents submitted to the Internal Revenue Service. Payment date for the notes will be August 15. Payment may be made in cash, or in any of the maturing securities, which will be accepted at par, in payment or exchange, in whole or in part, for the notes subscribed for, to the extent such subscriptions are allotted by the Treasury. The notes may not be paid for by credit in Treasury Tax and Loan Accounts. The subscription books will be open only on Monday, July 31. Subscriptions with the required deposits addressed to a Federal Reserve Bank or Branch, or to the Treasurer of the United States, and placed in the mail before midnight, July 31, 1967, will be considered timely. Subscriptions from commercial banks for their own account will be restricted in each case to an amount not exceeding 50 percent of the combined capital (not including capital notes or debentures), surplus, and undivided profits of the subscribing bank. Subscriptions from commercial and other banks for their own account, Federally insured savings and loan associations, States, political subdivisions or instrumentalities thereof, public pension and retirement and other public funds, international organizations in which the United States holds membership, foreign central banks and foreign States, dealers who make primary markets in Govern ment securities and report daily to the Federal Reserve Bank of New York their positions with respect to Government securities and borrowings thereon, Government Investment Accounts and the Federal Reserve Banks will be received without deposit. Subscriptions from all others must be accompanied by payment of 2 percent (in cash or Treasury securities maturing August 15, 1967, at par) of the amount of notes applied for not subject to withdrawal until after allotment. ’ The Secretary of the Treasury reserves the right to reject or reduce any subscription, to allot less than the amount of notes applied for, and to make different percentage allotments to various classes of subscribers; and any action he may take in these respects shall be final. The basis of the allotment will be publicly announced, and allotment notices will be sent out promptly upon allotment ( over ) Subject to the reservations in the preceding paragraph, all subscriptions from States, political subdivisions or instrumentalities thereof, public pension and retirement and other public funds, international organizations in which the United States holds membership, foreign central banks and foreign States, Government Investment Accounts, and the Federal Reserve Banks, will be allotted in full if a statement is submitted certifying that the amount of the subscription does not exceed the amount of the three maturing securities owned or contracted for purchase for value at 4 p.m., Eastern Daylight Saving time, July 26, 1967. Any such subscriber may enter an additional subscrip tion subject to a percentage allotment. All subscribers are required to agree not to purchase or to sell, or to make any agreements with respect to the purchase or sale or other disposition of, any of the notes subscribed for under this offering at a specific rate or price until after midnight, July 31, 1967. Commercial banks in submitting subscriptions will be required to certify that they have no benefi cial interest in any of the subscriptions they enter for the account of their customers, and that their customers have no beneficial interest in the banks’ subscriptions for their own account. The official offering circulars and subscription forms for the new securities will be mailed to reach you by Monday, July 31. A lfred H ayes, President.
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