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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 ITE D S T A T E S

Dallas, Texas, March 3, 1951

PRELIMINARY ANNOUNCEMENT
EXCHANGE OFFERING

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

There is quoted below a statement issued by the Treasury Department for release in
the morning newspapers of March 4, 1951:
“ The Secretary of the Treasury announced today that there will be offered
for a limited period a new investment series of long-term nonmarketable Treasury
Bonds in exchange for outstanding 2 ^ % Treasury Bonds o f June 15 and Decem­
ber 15, 1967-72, the details of which will be announced on March 19.
“ The new bonds will be issued in registered form only, with appropriate
maturity, and will bear interest at the rate of 2% % per annum payable semi­
annually. They will not be transferable or redeemable prior to maturity; however,
owners of such non-marketable bonds will be given an option of exchanging them
prior to maturity for marketable Treasury Notes bearing terms to be announced
in the official offering.
“ The new non-marketable 2% % Treasury Bonds will be acceptable at par and
accrued interest in payment of Federal estate and inheritance taxes due following
the death of the owner. They will not be acceptable in payment of Federal income
taxes.
“ The offering of this new security is for the purpose of encouraging long-term
investors to retain their holdings of government securities, in order to minimize
the monetization of the public debt through liquidation of present holdings of the
Treasury Bonds of 1967-72.
“ The Secretary stated that he planned to open the subscription books on Mon­
day, March 26, and that the full terms of the offering and the official circular
would be made available on March 19. The subscription books will remain open
for a period of about two weeks, although the Secretary will reserve the right to
close the books at any time without notice.
“ The Secretary indicated that a special offering of Series F and G Bonds, or
an offering similar to the 2% % Treasury Bonds, Investment Series A-1965, will
probably be made available for cash subscription at a later date when it appears
that a need therefor may exist.”
The official offering circular and subscription forms for the exchange offering will be
mailed so as to reach all banking institutions on Monday, March 19, 1951.
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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