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Fed er a l Rese r v e b a n k o f Da lla s
F IS C A L A G E N T O F T H E U N IT E D S T A T E S
DALLAS. TEXAS 7 5 2 2 2

Circular No. 70-105
April 29, 1970

PRELIMINARY ANNOUNCEMENT
TREASURY FINANCING

To All Banking Institutions and Others Concerned
in the Eleventh Federal Reserve District:

There is quoted below a press statement issued today by the Treasury Depart­
ment in regard to current financing:
TREASURY ANNOUNCES $l6.6 BILLION REFUNDING
AND $3.5 BILLION NEW CASH BORROWING
The Treasury announced today that it is offering holders of the
$16.6 billion of 5-5/8$ Treasury Notes of Series B-1970 and
6-3/8%
Treasury Notes of Series C-1970, maturing May 15, 1970, the
right to
exchange their holdings for a 3-year 7-3/^$ Treasury note or a
6-year 9-month 8$ Treasury note. The public holds about $^.9 billion
>
of the notes eligible for exchange, and about $11.7 billion is held
by Government Accounts and Federal Reserve Banks. In addition the
Treasury will borrow $3*5 billion, or thereabouts, through the issu­
ance of an 18-month 7-3/^t> Treasury note to be dated May 15, 1970,
and to mature November 15, 1971, at 99*95 (to yield about 7*79% •
)
In addition to the amount offered to the public, an additional
amount of the l8-month notes will be allotted to Government Accounts
and Federal Reserve Banks.
Exchange Offering
The notes now being offered are:
An additional amount of the 7-3/Mo TreasuryNotes of Series A-1973,
dated October 1, 1969, due May 15, 1973, at 99*^0 (to yield about
798%); and
An additional amount of the 8% Treasury Notes of Series A-1977,
dated February 15, 1970, due February 15, 1977, at par and accrued
interest from February 15 to May 15, 1970, ($19.66851 per $1,000).

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)

- 2 -

There are now outstanding $1,157 million of the 7-3/^fo notes
and $1,856 million of the &f0 notes.
The books for the receipt of subscriptions in the exchange
offering -will be open for three days, May k through May 6 . The
payment and delivery date for the notes will be May 15, 1970.
Cash subscriptions for the Series A-1973 and A-1977 notes
will not be accepted. Subscriptions addressed to a Federal
Reserve Bank or Branch, or to the Office of the Treasurer of the
United States, and placed in the mail before midnight, May 6,
will be considered as timely.
Interest will be payable on the Series A-1973 notes semi­
annually on November 15, 1970, and thereafter on May 15 and
November 15 until maturity. Interest will be payable on the
8% notes on a semiannual basis August 15, 1970, and thereafter
on February 15 and August 15 until maturity.
Cash Offering

-

l8 -month Notes

Payment for the l8-month notes may be made in cash, or in
5-5/8% notes or 6-3/8% notes maturing May 15, which will be
accepted at par, in payment, in whole or in part, for the notes
subscribed for, to the extent such subscriptions are allotted by
the Treasury. Payment by credit in Treasury Tax and Loan Accounts
may be made for 50% of the amount of notes allotted.
The books for the receipt of subscriptions for the l8-month
notes will be open one day only, Tuesday, May 5* Subscriptions
addressed to a Federal Reserve Bank or Branch, or to the Office
of the Treasurer of the United States, and placed in the mail
before midnight, May 5, will be considered as timely.
Subscriptions from commercial banks, for their own account,
will be restricted in each case to an amount not exceeding 50$ of
the combined capital (not including capital notes or’debentures),
surplus and undivided profits of the subscribing banks.
Subscriptions from commercial and other banks for their own
account, Federally-insured savings and loan associations, States,
political subdivisions of 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 Government
securities and report daily to the Federal Reserve Bank of New York
their positions with respect to Government securities and borrowing
thereon will be received without deposit.

- 3 Subscriptions from all others must be accompanied by payment
of ICffo (in cash, or Treasury notes maturing May 15 s 1970, 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. Subject to these reservations subscriptions
in amounts up to and including $200,000 will be allotted in full* and
subscriptions over $200,000 will be allotted on a percentage basis
but not less than $200,000.
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,
May 5, 1970.
Commercial banks in submitting subscriptions will be required
to certify that they have no beneficial 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.
Exchange and Cash Offerings
The notes will be made available in registered
bearer form. All subscribers requesting registered
required to furnish appropriate identifying numbers
on tax returns and other documents submitted to the
Service.

as well as
notes will be
as required
Internal Revenue

Coupons dated May 15, 1970, on notes tendered in exchange or
payment should be detached and cashed when due. The May 15, 1970,
interest due on registered notes will be paid by issue of interest
checks in regular course to holders of record on April 15* 1970,
the date the transfer books closed.
The official circulars and subscription forms for the new issues of Treasury
notes will be mailed in time to reach you by Monday, May b; however, should you
not receive the forms by Tuesday, May 5? subscriptions may be entered by mail or
telegram, subject to confirmation on official subscription blanks.
Yours very truly,
P. E. Coldwell
President

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