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federal Re se r v e b a n k o f Da l l a s F IS C A L A G E N T O F T H E U N ITE D STATES D ALLAS. TEXA S 75222 Circular No. 71-21 January 20, 1971 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 Department in regard to current financing: TREASURY ANNOUNCES $2 9 .6 BILLION REFUNDING The Treasury today announced that it is offering holders of $2 9 .6 billion of notes and bonds maturing February 15, March 15, and November 15, 1971, and Febru ary 1 5 , 1 9 7 2 , an opportunity to exchange their holdings for a 6 -- $ 7-year note or a 5-7/8$ J year note. The public holds $1 9 .5 billion of the securities eligible for exchange, and about $10.1 billion is held by Federal Reserve and Government accounts. The securities eligible for exchange are as follows: 5-3/8Jo Treasury NotesofSeries C-1971, maturing 2-15-71 7-3A $ Treasury NotesofSeries D-1971> maturing 2-15-71 2-l/2$ Treasury Bonds of 196 6 -7 1 , maturing 3-15-71 5-3/8$ Treasury NotesofSeries B-I9 7 1 , maturing 11-15-71 7-3A # Treasury NotesofSeries G-1971, maturing 11-15-71 3-7/8$ Treasury Bondsof1971, maturing 11-15-71 ^-3A$ Treasury NotesofSeries A-1972, maturing 2-15-72 7-l/2$ Treasury NotesofSeries C-1972, maturing 2-15-72 4$ Treasury Bonds of 1972, maturing 2-15-72 Interest vill be adjusted as of February 15, 1971, for the securities due March 15, 1971> November 15, 1971, and February 15, 1972. The notes being offered in exchange are: 6-1A $ Treasury Notes of Series A-I9 7 8 , dated February 15, 1971, due February 15, 1978, at par; and 5-7/8$ Treasury Notes of Series C-1975* dated February 15, 1971, due August 15, 1975, at par. This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) Details showing cash and interest adjustments ap plying in exchanges of securities due March 15 and November 15, 1971* and February 15, 1972, appear in the table at the end of this release. Cash subscriptions will not be received. Subscriptions books for the offering will be open until 8:00 p.m., local time, Wednesday, January 27, 1971* To be timely subscriptions must be received by a Federal Reserve Bank or Branch or by the Office of the Treasurer of the United States by such time, except that subscrip tions addressed to a Federal Reserve Bank or Branch or to the Office of the Treasurer of the United States post marked before midnight, Tuesday, January 26, 1971, will be deemed to be timely. The notes will be made available in registered as well as bearer form in denominations of $1 ,000 , $5 ,0 00 , $10,000, $100,000 and $1,000,000. All subscribers re questing registered notes will be required to furnish appropriate identifying numbers as required on tax re turns and other documents submitted to the Internal Revenue Service. The payment and delivery date for the notes will be February 1 6 . Any coupons dated February 1 5 , 19 7 1 j on notes and bonds tendered in exchange should be detached and cashed when due. The February 15, 1971} interest due on registered notes and bonds will be paid by issue of interest checks in regular course to holders of record on January 15, 1971, the date the transfer books closed. Coupons dated March 15, May 15, August 15, and November 1 5 , 1971> and February 15, 1972, must be attached to the appropriate securities when they are surrendered. The official circulars and subscription forms for the two issues of Treasury notes will be mailed in time to reach you by Monday, January 25; however, should you not receive the forms by Tuesday, January 26 , subscrip tions may be entered by mail or telegram, subject to confirmation on official subscription blanks. Yours very truly, P. E. Coldwell President TABLE OF PAYMENTS TO OR BY SUBSCRIBERS IN EXCHANGES FOR THE 5 l / % NOTES AND THE 6 l/k % NOTES (in Dollars Per $100 Face Value) Payment to (+) or by (-) Subscribers to Adjust Exchange Securities to be Exchanged ____ Values______ Payment to Subscribers for Accrued Interest to February 15s 1971 Exchanged Securities Net Amount to be Paid by to Subscriber Subscriber 2 1/2% Bond, 3/15/71 -.15 1.056630 .906630 5 3/8i Note, 11/15/71 + .6 0 1 .36 6 0 2 2 1.9660 22 7 3M o Note, 11/15/71 +2.30 1.9696 13 b . 269613 3 7/ % Bond, 11/15/71 -.50 .98 U807 .1+84807 b 3/b% Note, 2/15/72 +.05 7 1 / 2 Note, 2/15/72 +2.65 b i Bond, 2/1 5 /7 2 -.50 .05000 2.6 5 0 0 0 0 .500000