The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
FEDERAL RESERVE BANK OF DALLAS FISCAL AOENT OF THE UNITED STATES Dallas, Texas, January 27,1954 P R E L IM IN A R Y A N N O U N C E M E N T E X C H A N G E O FFE R IN G To A ll Banking Institutions and Others Concerned in the Eleventh Federal Reserve D istrict: There is quoted below a press statement issued today by the Treasury Department: “ Subscription books will open on Monday, February 1, for the exchange of the 2^4 percent Certificates of Indebtedness which will mature February 15,1954, in the amount of $8,114,165,000, and the 1% percent Treasury Notes which will mature March 15, 1954, in the amount of $4,675,067,000. “ Holders of the maturing securities will jae offered the choice of one-year 1% percent Certificates of Indebtedness and 7-year and 9-month 2% percent Treasury Bonds in exchange for their present holdings. “ In addition, holders of the 2 percent Bonds of 1952-54 which reach final maturity on June 15, 1954, in the amount of $5,825,463,500, and holders of the 2 14 percent Bonds of 1952-55 and the 2^4 percent Bonds of 1954-56 which will be called for redemption on June 15, 1954, in the amounts of $1,500,780,800 and $680,691,850, respectively, will also be given an opportunity to exchange their holdings at this time for the new 2y% percent Treasury Bonds, with interest adjustments as of February 15, 1954. “ The new certificates will carry an interest coupon payable with the principal at maturity, and any premium paid on the acquisition of these certificates in the market may be amortized in accordance with Sec. 125 of the Internal Revenue Code. “ While the amount of the public debt outstanding in relation to the statutory limitation of $275 billion precludes the sale of a longer term bond for cash at this time, consideration is being given to such an offering at a later date. “ The Treasury will issue calls on February 15 for the redemption on June 15, 1954, of the 2*4 percent Bonds of 1952-55 and the 2*4 percent Bonds of 1954-56. The option to call the 2 percent Bonds of 1951-55 and the 2 percent Bonds of 1952-54 (due December 15, 1954) for redemption on June 15, 1954, will not be exercised. “ The subscription books will close at the close of business Wednesday, Feb ruary 3, 1954. Any subscriptions addressed to a Federal Reserve Bank or Branch or to the Treasury Department and placed in the mail before midnight Feb ruary 3 will be considered as timely.” The official circulars and subscription forms for the exchange offering will be mailed to reach all banking institutions on Monday, February 1, the date the books open. If the circulars and forms are not received in sufficient time, however, subscriptions may be entered by mail or by telephone, subject to confirmation with an official application blank. Yours very truly, W. D. GENTRY First Vice President This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)