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federal

R e s e r v e Ba n k

of

Dallas

F I S 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

75222

C ir c u la r N o .
J u ly

7 0 -1 8 2
2 9 , 1970

PRELIMINARY ANNOUNCEMENT
TREASURY FINANCING

To All Banking Institutions and Others Concerned
in the Eleventh Federal Reserve District:
There is quoted helow a press statement issued today by the Treasury
Department in regard to current financing:
TREASURY ANNOUNCES AUGUST FINANCING PLANS
The Treasury announced today that it is offering holders
of the $6.5 billion of 6 3/8 Treasury Notes of Series D-I97O
and kf Treasury Bonds of 1970 maturing August 15, 1970, the
ro
right to exchange their holdings for a 3 l/2-year J
Trea­
sury Note or a 7-year 7 3
Treasury Note. The public holds
about $5-8 billion and Government accounts and Federal Reserve
Banks hold about $0.9 billion of the securities eligible for
exchange.
The Treasury also announced that it will offer $2.75
billion, or thereabouts, of 18-month 7 l/2$ Treasury Notes
to pay for the August 15 maturities not exchanged and to
raise new cash. An additional amount of these 18-month notes
may be allotted to the Government accounts and Federal Reserve
Banks in exchange for maturing notes and bonds held by them.
The notes being offered in exchange are:
7 3l^jo Treasury Notes of Series C-197^ dated August 15,
1970, due February 15, 197^-, at par; and
7 3/M° Treasury Notes of Series B-1977 dated August 15,
1970, due August 15, 1977, at 99*75 (l° yield about 7 * $ )
80 > .
Subscription books for the exchange offering will be
open for three days, Monday, August 3 through Wednesday,
August 5* Cash subscriptions will not be accepted.

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

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Cash Offering
The notes being offered for cash are:
7 l/2$ Treasury Notes of Series C-1972, dated August 17,
1970, due February 15, 1972, at 99*95 (to yield about 7*5^$)*
Payment for these 18-month notes to the extent allotted
may he made in cash, in 6 3/8$ notes or A$ bonds maturing
August 15, or by credit in Treasury Tax and Loan Accounts up
to 50$ of the amount of the notes allotted, or any combination
thereof.
Subscription books for the 18-month notes -will be open
one day only, Wednesday, August 5*
The subscription from any commercial bank for its own
account will be restricted to an amount not exceeding 50
percent of its combined capital (not including capital notes
or debentures), surplus and undivided profits.
Subscriptions will be received without deposit from
commercial and other hanks for their own account, Federallyinsured savings and loan associations, States, political
subdivisions or instrumentalities thereof, public pension
and retirement and other public funds, international orga­
nizations in which the United States holds membership,
foreign central banks and foreign States, and dealers who
make primary markets in Government securities and report
daily to the Federal Reserve Bank of New York their posi­
tions with respect to Government securities and borrowing
thereon.
Subscriptions from all others must be accompanied by
payment of 10$ (in cash, or Treasury notes or bonds maturing
August 15, 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 per­
centage allotments to various classes of subscribers. Sub­
ject to these reservations subscriptions in amounts up to
and including $200,000 will be allotted in full and sub­
scriptions over $200,000 may 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, August 5, 1970.

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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 Offering
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, Wednesday, August 5,
will he considered as timely. The payment and delivery date
for the notes will be August 17.
The notes will be made available in registered as well
as bearer form in denominations of $1,000, $5,000, $10,000,
$100,000 and $1,000,000. All subscribers requesting regis­
tered notes will be required to furnish appropriate iden­
tifying numbers as required on tax returns and other
documents submitted to the Internal Revenue Service.
Coupons dated August 15, 1970, on securities tendered
in exchange or payment should be detached and cashed when
due. The August 15, 1970, interest due on registered secu­
rities will be paid by issue of interest checks in regular
course to holders of record on July 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, August 3j however,
should you not receive the forms by Wednesday, August 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