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DALLA S. TEXAS 7 5 2 2 2

Circular No. 68-111
May 1 , 1968


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:
The Treasury today announced that it is offering holders of
the $8 billion of 4-3/^ Treasury Notes of Series B-I968 and
3-7/8$ Treasury Bonds of 1 9 6 8 , maturing May 15, 19 6 8 , the right
to exchange their holdings at par for a 7-year 6 percent Treasury
note to be dated May 15, 1968, and to mature May 15, 1975* The
public holds about $3 .9 billion of the securities eligible for
exchange, and about $U.l billion is held by Federal Reserve and
Government Investment Accounts. In addition the Treasury will
borrow $3 billion, or thereabouts, through the issuance of a
15-month 6 percent Treasury note to be dated May 15, 19 6 8 , and
to mature August 15, 1969s at par.
The books for the receipt of subscriptions for the 7-year
notes will be open for three days, May 6 through May 8 . The
books for the receipt of subscriptions for the 1 5 -month notes
will be open one day only, Wednesday, May 8 . The payment and
delivery date for the notes will be May 15, 1 9 6 8 .
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 8 , will be considered as timely.
Interest will be payable on the 7-year notes semiannually
on May 15 and November 15 and on the 15-month notes on August 15,
1 9 6 8 , and February 15 and August 15, 1 9 6 9 * The notes will be
made available in registered as well as bearer form. All sub­
scribers requesting registered notes will be required to furnish
appropriate identifying numbers as required on tax returns and
other documents submitted to the Internal Revenue Service.
Coupons dated May 15, 1968, on the securities tendered in
exchange or payment should be detached and cashed when due.
The May 15, 1 9 6 8 , interest due on registered securities will be
paid by issue of interest checks in regular course to holders
of record on April 15, 1 9 6 8 , the date the transfer books closed.

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (


Payment for the 15-month notes may "be made in cash, or in b-3/k%
notes or 3-7/8$ bonds 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. The 15month notes may be paid by credit in Treasury Tax and Loan Accounts.
Subscriptions from commercial banks, for their own account, will
be restricted in each case to an amount not exceeding 50 percent 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 sub­
divisions or 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 borrowings thereon, Government
Investment Accounts, and the Federal Reserve Banks will be received
without deposit.
Subscriptions from all others must be accompanied by payment of

lOfo (in cash, or Treasury notes or bonds maturing May 15, 1968, 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; and any action he may take in these respects shall be
final. The basis of the allotment will be publicly announced, and
allotment notices will be sent out promptly upon allotment.
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 8 , 1 9 6 8 .
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
The official circulars and subscription forms for the new issues of Treasury
notes will be mailed Thursday, May 2; however, if the forms do not reach you by
Wednesday, May 8 , subscriptions may be entered by mail or telegram, subject to con­
firmation on official subscription blanks.

Yours very truly,

P. E. Coldwell

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