Full text of District Notices (Federal Reserve Bank of Dallas) : Preliminary Announcement - Cash Offering

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FEDERAL RESERVE BANK OF DALLAS
FISCAL. A G E N T O F T H E U N ITE D S T A T E S

Dallas, Texas, September 29,1955

P R E L IM IN A R Y A N N O U N C E M E N T
CA SH O FFE R IN G

To all Banking Institutions and Others Concerned
in the Eleventh Federal Reserve D istrict:

Quoted below is a press statement issued today by the Treasury Department in regard to a
new cash offering:
“ The Secretary of the Treasury announced today that on Monday, October 3, the Treasury
will offer for cash subscription $2% billion of 2 ^ percent Tax Anticipation Certificates of
Indebtedness, to be dated October 11, 1955, maturing June 22, 1956, and receivable at par
plus accrued interest to maturity in payment of income and profits taxes due on June 15,
1956. The books will be open only for one day on October 3.
“ Subscriptions from commercial banks, which for this purpose are defined as banks accept­
ing demand deposits, for their own account, will be received without deposit, but will be
restricted in each case to an amount not exceeding 50 percent of the combined capital,
surplus and undivided profits of the subscribing bank. A payment of 5 percent of the amount
of certificates subscribed for, not subject to withdrawal until after payment, must be made
on all other subscriptions. The new certificates may be paid for by credit in Treasury Tax
and Loan Accounts.
“ Commercial banks and other lenders are requested to refrain from making unsecured
loans, or loans collateralized in whole or in part by the certificates subscribed for, to cover
the 5 percent deposits required to be paid when subscriptions are entered.
“ Any subscription addressed to a Federal Reserve Bank or Branch, or to the Treasurer
of the United States, and placed in the mail before midnight, October 3, will be considered
as timely.”
The official circular and subscription forms for the offering will be mailed to all banking insti­
tutions tomorrow, September 30. However, if the circular and forms are not received in sufficient
time, subscriptions should be entered by mail, telegraph, or telephone, subject to confirmation with
an official application.
Yours very truly,
Watrous H. Irons
President

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