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CIRCULAR N O . 177

FEDERAL RESERVE BANK
O F NEW YORK
SECURITIES DEPARTMENT

June 20, 1919

UNITED STATES TREASURY CERTIFICATES OF INDEBTEDNESS
Redemption on July 1, 1919 of Series 5 G, M a t u r i n g July 29, 1919
Exchange of Certain O u t s t a n d i n g Issues for Series T 4, M a t u r i n g September 15, 1919.
To ALL BANKS, TRUST COMPANIES, SAVINGS BANKS, BANKERS, INVESTMENT DEALERS
AND PRINCIPAL CORPORATIONS IN THE SECOND FEDERAL RESERVE DISTRICT,

DEAR SIRS:

Redemption on July 1, 1919 of Series 5 G M a t u r i n g J u l y 29, 1919
The attention of holders of Certificates of Indebtedness of Series 5 G, dated February
27, 1919, and maturing July 29, 1919, is called to the following notice from the Secretary of the
Treasury with respect to the redemption of these certificates on July 1, 1919.;
"Notice to Holders of United States Treasury Certificates of Indebtedness
of Series 5 G dated February 27,1919, and M a t u r i n g J u l y 29,1919.
All United States Treasury Certificates of Indebtedness of
Series 5-G dated February 27, 1919 and m a t u r i n g July 29, 1919 are
hereby called for redemption on J u l y 1, 1919 a t par and accrued
interest p u r s u a n t to t h e provision for such redemption contained
in t h e certificates. On J u l y 1, 1919 interest on all certificates of
said Series will cease to accrue. Holders of certificates of said
series shall nevertheless have t h e privilege of exchanging such
certificates on or before J u l y 1, 1919 a t par with a n a d j u s t m e n t of
accrued interest for Treasury Certificates of Indebtedness of
Series T 4 dated J u n e 3, 1919 m a t u r i n g September 15, 1919."
CARTER GLASS,
Secretary of the Treasury.
J u n e 20, 1919."

Exchange of Certain O u t s t a n d i n g Issues for Series T 4, M a t u r i n g September 15, 1919
In the interest of carrying out the financial program of the Treasury Department, holders
of United States Treasury Certificates of Indebtedness maturing between July 15, 1919 and
September 9, 1919, inclusive, are encouraged to exchange such certificates for certificates of
Series T 4 dated J u n e 3, 1919 a n d m a t u r i n g September 15, 1919. In our circular No. 176
dated June 16,1919, the certificates which may thus be exchanged were enumerated as follows:




Ill'

Series
Tax Series of 1919 (4%)
Bond Series 5 F
" 5 G*
" 5H
" 5J

Date of Issue
August
February
February
March
April

20, 1918
13, 1919
27, 1919
13, 1919
10, 1919

Cc>C&«A*ceL .

Date of Maturity
July
July
July
August
September

15, 1919
15, 1919
29, 1919
12, 1919
9, 1919

(*By the notice quoted above the certificates of Series 5 G (Bond Series)
are called for redemption on July 1, 1919, but attention is called to the
provision of the notice of redemption permitting holders of these
certificates to exchange them on or before July 1, 1919 for Treasury certificates of Series T 4).

The certificates of Series T 4, due September 15, 1919, are acceptable at their maturity in
payment of Federal income and war-profits and excess-profits taxes payable on September 15,1919.
The Treasury Department emphasizes two reasons why such exchanges are very important.
First: If a large amount of the above certificates can be exchanged
within the next ten days or two weeks, it would greatly reduce the Treasury's certificate program, which must be presented to the banks of the
country, since it would eliminate a large amount of refunding.
Second: It is essential, in order to prevent money disturbance
on and about September 15, 1919, that a large amount of Certificates of
Indebtedness of Series T 4 should be issued and, in the opinion of the Secretary of the Treasury, it is not expedient on account of the extremely
short maturity for the Treasury to sell such certificates for cash or by
book credit.
By giving banking institutions this privilege of exchange they are offered an opportunity
to take a certificate, which should be readily marketable to tax-payers, in exchange for certificates
for which there is a comparatively light investment demand. If the banks and trust companies
will encourage and facilitate these exchanges and dispose of tax certificates to their customers,
it will enable banking institutions in this Federal Reserve District to liquidate to that extent
their borrowings from this bank, and will at the same time protect them from the possibility of
a strain later when income and war-profits and excess-profits taxes are due.
Some of the leading banks have taken advantage of this opportunity to exchange their
certificates, and it is hoped that further exchanges will be made and that there will be a resulting
wide distribution of Series T 4.




Yours very truly,
BENJ. STRONG,

Governor

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