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(JSew Issues) CIRCULAR N o . 291 Federal Reserve Bank of New York Offering of U n i t e d States of A m e r i c a T r e a s u r y Certificates of I n d e b t e d n e s s ' Dated a n d bearing interest from July 1 5 , 1920 Series B 1921, 5% Per Cent. Due January 15, 1921 Series TM2—1921, 5M Per Cent. Due March 15, 1921 To all Banks, Trust Companies, Savings Banks, Bankers, Investment and Principal Corporations in the Second Federal Reserve District: Dealers T h e Secretary of the Treasury, under the authority of t h e act approved September 24, 1917, as amended, offers for subscription, a t par and accrued interest, through the Federal Reserve Banks, Treasury certificates of indebtedness, in two series, both dated and bearing interest from July 15, 1920, t h e certificates of Series B 1921 being payable on January 15, 1921 with interest at t h e rate of five and three-quarters per cent, per annum payable semi-annually and the certificates of Series T M 2—1921 being payable on March 15, 1921 and bearing interest at t h e rate of five and three-quarters per cent, per annum. Applications will be received at the Federal Reserve Banks. Bearer certificates will be issued in denominations of $500, $1,000, $5,000, $10,000, and $100,000. T h e certificates of Series B 1921 will be issued without coupons. T h e certificates of Series T M 2—1921 will have one interest coupon attached payable March 15, 1921. T h e certificates of both said series shall be exempt, both as to principal and interest, from all taxation now or hereafter imposed by the United States, any State, or any of the possessions of t h e United States, or by any local taxing authority, except (a) estate or inheritance taxes, and (6) graduated additional income taxes, commonly known as surtaxes, and excess profits and warprofits taxes, now or hereafter imposed by the United States, upon the income or profits of individuals, partnerships, associations, or corporations. T h e interest on an amount of bonds and certificates authorized by said act approved September 24, 1917, and amendments thereto, the principal of which does not exceed in the aggregate $5,000, owned by any individual, partnership, association or corporation, shall be exempt from t h e taxes provided for in clause (b) above. T h e certificates of these series do not bear the circulation privilege. The certificates of Series B 1921 will not be accepted in payment of taxes. The certificates of Series T M 2—1921 will be accepted at par, with an adjustment of accrued interest, during such time and under such rules and regidations as shall be prescribed or approved by the Secretary of the Treasury, in payment of income and profits taxes payable at the maturity of the certificates. T h e right is reserved t o reject any subscription and to allot less than the amount of certificates of either or both series applied for and to close t h e subscriptions as t o either or both series at any time without notice. Payment at par and accrued interest for certificates allotted must be made on or before July 15, 1920, or on later allotment. After allotment and upon payment Federal Reserve Banks may issue interim receipts pending delivery of t h e definitive certificates. Any qualified depositary will be permitted t o make payment by credit for certificates allotted to it for itself and its customers u p to any amount for which it shall be qualified in excess of existing deposits, when so notified by t h e Federal Reserve Bank of its district. Treasury certificates of indebtedness of Series F 1920, maturing July 15, 1920 will be accepted at part with an adjustment of accrued interest, in payment for any certificates of the Series B 1921 or T M 1—1921 now offered which shall be subscribed for and allotted. As fiscal agents of the United States, Federal Reserve Banks are authorized and requested to receive subscriptions a n d t o make allotment in full in the order of t h e receipt of applications up t o amounts indicated by t h e Secretary of the Treasury to the Federal Reserve Banks of the respective districts. Yours very truly, J. H. CASE, New York, July 9, 1920. Acting Governor