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FEDERAL. RESERVE BANK OF DALLAS
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, December 3,1941

NEW OFFERING OF TREASURY BONDS

To All Banking Institutions, and Others Concerned,
in the Eleventh Federal Reserve District:
The Secretary of the Treasury has issued the following press statement:
“ In advance of the cash offering of Treasury securities to be announced tomorrow, the Treasury
today announced the basis on which subscriptions will be entertained from the various classes of
subscribers who will participate in that offering. The primary purpose is, so far as possible, to meet
the legitimate investment requirements of the public, and to accomplish that purpose subscriptions
will be grouped broadly into four classes, as follows:
1. Banks and trust companies for their own account— not to exceed fifty percent of capital
and surplus.
2. Mutual savings and cooperative banks, Federal savings and loan associations, trust
accounts and investment corporations, pension funds, insurance companies, and similar
institutions and funds— not to exceed ten percent of total resources.
3. Corporations organized for profit, and dealers and brokers— not to exceed fifty percent
of net worth.
4. Individuals—not to exceed fifty percent of net worth, or one hundred percent of cash
deposited with subscription. (Note: No preferred allotment will be made on such fullpaid subscriptions.)
“ Notwithstanding the general limitations outlined above, the Federal Reserve banks are author­
ized and instructed to continue to examine applications for cash offerings of securities issued by the
Treasury, and to report to the Secretary of the Treasury any which, in their judgment, require
special treatment, or which appear to be excessive from the standpoint of the resources or invest­
ment practices of the subscribers, or for other reasons, with recommendation as to the acceptance,
reduction, or rejection of any such applications, which recommendations will be promptly acted upon
by the Secretary.
“ The cooperation of banking institutions and of the subscribing public generally is earnestly
solicited so that subscriptions forwarded to the Federal Reserve banks and the Treasury will in each
instance be for amounts not in excess of the limitation Set forth above. Attention is again invited to
the requirement that subscribers agree not to sell or otherwise dispose of their subscriptions, or of
the securities which may be allotted thereon, prior to the closing of the subscription books.
“ It is also requested that banks and others refrain from making any unsecured loans, or loans
collateralized in whole or in part by the securities subscribed for, to cover the initial deposits which
are required to be paid when subscriptions are entered.

December 3,1941

Henry Morgenthau. Jr.,
Secretary of the Treasury”
Yours very truly,
R. R. GILBERT
President

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


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