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FEDERAL RESERVE BANK OF DALLAS
FISCAL. A G E N T O F TH E U N ITED ST A T E S

Dallas, Texas, July 29, 1960

OFFERING OF SECURITIES

To All Banking Institutions and Others Concerned
in the Eleventh Federal Reserve District:
Enclosed are Treasury Department Circulars Nos. 1048 and 1049 governing the offering of 3 Vs percent
Treasury Certificates of Indebtedness of Series C-1961, dated August 15, 1960, due August 1, 1961, and addi­
tional 3 % percent Treasury Bonds of 1968, dated June 23, 1960, and due M ay 15, 1968.
SECURITIES OFFERED

3 Vs PERCENT CERTIFICATES OF INDEBTEDNESS OF SERIES C-1961
3 Vs PERCENT TREASURY BONDS OF 1968
PAYMENT

B y cash, or by the following securities:

4 % PERCENT TREASURY NOTES OF SERIES C-1960
Maturing August 15, 1960

or
FEDERAL NATIONAL MORTGAGE ASSOCIATION 3 s PERCENT
/s
NOTES OF SERIES ML-1960-A
Maturing August 23, 1960
The new issues may not be paid for by credit in Treasury Tax and Loan accounts.
SURRENDER OF MATURING SECURITIES

Securities to be applied in payment, in whole or in part, of subscriptions (including securities received
as down payments, referred to in the following paragraph) may be forwarded to this bank with the subscrip­
tions; and, unless otherwise instructed, any excess over the amount of new securities allotted will be handled
by this bank for cash redemption at maturity. If subscribers contemplate disposition of any excess over allot­
ments by means other than redemption by this bank at maturity, all of the securities should be held by the
commercial banks until after allotment. This is important since, under Treasury regulations, the return of
any securities would be at the risk and expense of the owner,
DOWN PAYMENTS

Down payments of not less than 2 percent of the amount of certificates of indebtedness applied for and
20 percent of the amount of Treasury bonds applied for (in the form of cash or securities of the eligible issues
listed above) are required of all subscribers, except those specifically exempted in Section III of the respective
offering circulars. Cash down payments received by commercial banks from subscribers should be held by
commercial banks until after allotment is made. Securities received from subscribers may be forwarded to
this bank with subscriptions, provided any unused portion is to be redeemed by this bank at maturity.
ALLOTMENTS

Allotments will be made for both issues in accordance with Section III of the respective circulars. It will
be noted that with respect to the certificates, subject to the usual reservations, all subscriptions from States,
political subdivisions 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, Government Investment Accounts, and the Federal Reserve banks will be allotted in full. Allotment
notices will be sent out by this bank upon notification by the Treasury.

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

SUBSCRIPTIONS HANDLED THROUGH OUT-OF-DISTRICT CORRESPONDENT BANKS

Commercial banks are urged to enter subscriptions for their own account and for account of their cus­
tomers with the Federal Reserve bank or branch in the district in which they are located. However, where
their maturing securities are held with correspondent banks in other districts and it is desired to enter sub­
scriptions through such correspondents, subscribing banks are requested to list separately by name the sub­
scriptions for their own account and for each of their customers.
In consideration of the acceptance of such subscriptions entered through correspondent banks, the
subscribing banks agree that by their action they certify that they have no beneficial interest in any subscrip­
tions they enter for the account of their customers, and that their customers have no beneficial interest in the
banks’ subscriptions for their own account; that the subscriptions for their own account do not exceed the
prescribed limitations; and that the subscribing banks and their customers have agreed not to purchase or
sell, or to make any agreements with respect to the purchase or sale or other disposition of any certificates
subscribed for until after midnight August 2, 1960.
GENERAL INFORMATION

Coupons due August 23, 1960, must remain attached to Federal National Mortgage Association 3 %
percent Notes of Series M L-1960-A when surrendered. All coupons should be detached from 4 % percent
Treasury Notes of Series C-1960 when surrendered. In the case of FN M A notes applied in payment of
subscriptions, accrued interest from February 23, 1960, to August 15, 1960, will be paid to subscribers. In
the case of the Treasury bonds to be issued, accrued interest from June 23, 1960, to August 15, 1960, will be
charged to subscribers. A form for furnishing payment and delivery instructions and providing for settlement
of interest adjustments will be forwarded promptly upon allotment
The subscription books will be open only on Monday, August 1, and Tuesday, August 2, 1960, Payment
for the securities must be made on or before August 15, 1960. Subscriptions will be received at this bank and
its branches at El Paso, Houston and San Antonio, and should be submitted on the'enclosed forms. Additional
circulars and forms will be forwarded upon request.
CLOSING OF SUBSCRIPTION BOOKS

Subscription books will close at the close of business Tuesday, August 2. No further dosing announce­

ment will be made.
Subscriptions addressed to a Federal Reserve bank or branch or to the Treasury Department and placed
in the mail before midnight, August 2, will be considered as having been entered before the close of the
subscription books.

Yours very truly,
Watrous H. Irons
President

UNITED STATES OF AMERICA
THREE AN D O NE-EIGHTH PERCENT TREASURY CERTIFICATES OF INDEBTEDNESS
OF SERIES C-1961
Dated and bearing interest from August 15, 1960
I9 6 0
Department Circular No. 1048

Due August 1, 1961
TREASURY DEPARTM ENT
Office of the Secretary
Washington, August 1, 1960

Fiscal Service
Bureau of the Public Debt

I. OFFERING OF CERTIFICATES
1. The Secretary of the Treasury, pursuant to the authority of the Second Liberty Bond Act, as
amended, invites subscriptions, subject to allotment, at par and accrued interest, from the people of the
United States for certificates of indebtedness of the United States, designated 3 Vs percent Treasury Cer­
tificates of Indebtedness of Series C-1961. The amount of the offering under this circular is $7,750,000,000,
or thereabouts. Treasury Notes of Series C-1960, maturing August 15, 1960, will be accepted at par in
payment or exchange, in whole or in part, for the new certificates subscribed for, to the extent such
subscriptions are allotted by the Treasury. The books will be open only on August 1 and August 2,1960, for
the receipt of subscriptions for this issue.
2. The Secretary of the Treasury, on behalf of the Federal National Mortgage Association, offers
to purchase on August 15, 1960, at par and accrued interest, Federal National Mortgage Association 3 %
percent Notes of Series ML-1960-A, dated January 20, 1958, due August 23, 1960, to the extent to which
subscriptions from the holders thereof to Treasury Certificates of Indebtedness of Series C-1961 hereunder
are allotted by the Treasury, and the proceeds from the par amount of such notes are applied, to the pay­
ment, in whole or in part, of the certificates in accordance with Paragraph 2 of Section IV of this circular.
Tenders of the Federal National Mortgage Association 3 % percent Notes of Series M L-1960-A for that'
purpose are invited.

II. DESCRIPTION OF CERTIFICATES
1. The certificates will be dated August 15, 1960, and will bear interest from that date at the rate
of 3 Vs percent per annum, payable on a semiannual basis on February 1 and August 1, 1961. They will
mature August 1, 1961, and will not be subject to call for redemption prior to maturity.
2. The income derived from the certificates is subject to all taxes imposed under the Internal
Revenue Code of 1954. The certificates are subject to estate, inheritance, gift or other excise taxes,
whether Federal or State, but are exempt from all taxation now or hereafter imposed on the principal
or interest thereof by any State, or any of the possessions of the United States, or by any local taxing
authority.
3. The certificates will be acceptable to secure deposits of public moneys. They will not be accept­
able in payment o f taxes.
4. Bearer certificates with interest coupons attached will be issued in denominations of $1,000,
$5,000, $10,000, $100,000, $1,000,000, $100,000,000 and $500,000,000. The certificates will not be issued
in registered form.
5. The certificates will be subject to the general regulations of the Treasury Department, now or
hereafter prescribed, governing United States certificates.

III.

SUBSCRIPTION AND ALLOTMENT

1. Subscriptions will be received at the Federal Reserve Banks and Branches and at the Office of
the Treasurer of the United States, Washington. Only the Federal Reserve Banks and the Treasury
Department are authorized to act as official agencies. Commercial banks, which for this purpose are defined
as banks accepting demand deposits, may submit subscriptions for account of customers. Others than
commercial banks will not be permitted to enter subscriptions except for their own account. 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, surplus and undivided profits of the subscribing bank. Subscriptions
from commercial and other banks for their own account, Federally-insured savings and loan associations,
States, political subdivisions 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 (in cash or in Treasury Notes of Series

C-1960, maturing August 15, 1960, at par, or Federal National Mortgage Association Notes of Series
ML-1960-A tendered for purchase under Paragraph 2 of Section I, hereof, at par) of 2 percent of the
amount of certificates applied for, not subject to withdrawal until after allotment. Following allotment,
any portion of the 2 percent payment in excess of 2 percent of the amount of certificates allotted may be
released upon the request of the subscribers.
2. 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 certificates of this issue, until after midnight
August 2, 1960.
3. Commercial banks in submitting subscriptions will be required to certify that they have no bene­
ficial 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 account.
4. The Secretary of the Treasury reserves the right to reject or reduce any subscription, to allot less
than the amount of certificates 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. Subject to these reservations,
all subscriptions from States, political subdivisions or instrumentalities thereof, public pension and retire­
ment and other public funds, international organizations in which the United States holds membership,
foreign central banks and foreign States, Government Investment Accounts, and the Federal Reserve
Banks will be allotted in full. The basis of the allotment will be publicly announced, and allotment
notices will be sent out promptly upon allotment.

IV. PAYMENT
1. Payment at par and accrued interest, if any, for certificates allotted hereunder must be made or
completed on or before August 15, 1960, or on later allotment. In every case where payment is not so
completed, the payment with application up to 2 percent of the amount of certificates allotted shall, upon
declaration made by the Secretary of the Treasury in his discretion, be forfeited to the United States.
Payment may be made for any certificates allotted hereunder in cash or by exchange of Treasury Notes
of Series C-1960, maturing August 15, 1960, which will be accepted at par. Where payment is made with
Treasury Notes of Series C-1960, coupons dated August 15, 1960, should be detached from such notes by
holders and cashed when due.
2. In addition, payment may be made for any certificates allotted hereunder with the proceeds of
the par amount of Federal National Mortgage Association Notes of Series ML-1960-A tendered for
purchase in accordance with Paragraph 2 of Section I of this circular. Federal National Mortgage Asso­
ciation Notes of Series ML-1960-A tendered for purchase must have coupons dated August 23, 1960,
attached, and payment will be made at par and accrued interest to August 15, 1960. Accrued interest from
February 23, 1960, to August 15, 1960, on the Series ML-1960-A notes ($17.31944 per $1,000) will be
paid following acceptance of the notes.

V. GENERAL PROVISIONS
1. As fiscal agents of the United States, Federal Reserve Banks are authorized and requested to
receive subscriptions, to make allotments on the basis and up to the amounts indicated by the Secretary
of the Treasury to the Federal Reserve Banks of the respective Districts, to issue allotment notices, to
receive payment for certificates allotted, to make delivery of certificates on full-paid subscriptions allotted,
and they may issue interim receipts pending delivery of the definitive certificates.
2. The Secretary of the Treasury may at any time, or from time to time, prescribe supplemental or
amendatory rules and regulations governing the offering, which will be communicated promptly to the
Federal Reserve Banks.

ROBERT B. ANDERSON,
Secretary of the Treasury.

UNITED STATES OF AMERICA
THREE AN D SEVEN-EIGHTHS PERCENT TREASURY BONDS OF 1968
Dated June 23, 1960, with interest from August 15, 1960

Due May 15,1968

Interest payable May 15 and November 15
ADDITIONAL ISSUE
I9 6 0
Department Circular No. 1049

TREASURY DEPARTM ENT
Office of the Secretary
Washington, August 1, 1960

Fiscal Service
Bureau of the Public Debt

I. OFFERING OF BONDS
1. The Secretary of the Treasury, pursuant to the authority of the Second Liberty Bond Act, as
amended, invites subscriptions, subject to allotment, at par and accrued interest, from the people of the
United States for bonds of the United States, designated 3 % percent Treasury Bonds of 1968. The
amount of the offering under this circular is $1,000,000,000, or thereabouts. Treasury Notes of Series
C-1960, maturing August 15, 1960, will be accepted at par in payment or exchange, in whole or in part,
for the new bonds subscribed for, to the extent such subscriptions are allotted by the Treasury. The books
will be open only on August 1 and August 2, 1960, for the receipt of subscriptions for this issue.
2. The Secretary of the Treasury, on behalf of the Federal National Mortgage Association, offers to
purchase on August 15, 1960, at par and accrued interest, Federal National Mortgage Association 3 %
percent Notes of Series ML-1960-A, dated January 20, 1958, due August 23, 1960, to the extent to which
subscriptions from the holders thereof to Treasury Bonds of 1968 hereunder are allotted by the Treasury,
and the proceeds from the par amount of such notes are applied, to the payment, in whole or in part,
of the bonds in accordance with Paragraph 2 of Section IV of this circular. Tenders of the Federal National
Mortgage Association 3 % percent Notes of Series M L-1960-A for that purpose are invited.

II. DESCRIPTION OF BONDS
1. The bonds now offered will be an addition to and will form a part of the series of 3 % percent
Treasury Bonds of 1968 issued pursuant to Department Circular No. 1044, dated June 8, 1960, will
be freely interchangeable therewith, and are identical in all respects therewith except that interest on
the bonds to be issued under this circular will accrue from August 15, 1960. Subject to the provision for
the accrual of interest from August 15, 1960, on the bonds now offered, the bonds are described in the
following quotation from Department Circular No. 1044:
“ 1. The bonds will be dated June 23, 1960, and will bear interest from that date at the rate
of 3 % percent per annum, payable on a semiannual basis on November 15, 1960, and thereafter
on M ay 15 and November 15 in each year until the principal amount becomes payable. They will
mature M ay 15, 1968, and will not be subject to call for redemption prior to maturity.
“2. The income derived from the bonds is subject to all taxes imposed under the Internal
Revenue Code of 1954. The bonds are subject to estate, inheritance, gift or other excise taxes,
whether Federal or State, but are exempt from all taxation now or hereafter imposed on the prin­
cipal or interest thereof by any State, or any of the possessions of the United States, or by any
local taxing authority.
“3. The bonds will be acceptable to secure deposits of public moneys. They will not be
acceptable in payment of taxes.
“4. Bearer bonds with interest coupons attached, and bonds registered as to principal and
interest, will be issued in denominations of $500, $1,000, $5,000, $10,000, $100,000 and
$1,000,000. Provision will be made for the interchange of bonds of different denominations and
of coupon and registered bonds, and for the transfer of registered bonds, under rules and regu­
lations prescribed by the Secretary of the Treasury.
“5. The bonds will be subject to the general regulations of the Treasury Department, now
or hereafter prescribed, governing United States bonds.”

III. SUBSCRIPTION AND ALLOTMENT
1. Subscriptions will be received at the Federal Reserve Banks and Branches and at the Office of
the Treasurer of the United States, Washington. Only the Federal Reserve Banks and the Treasury
Department are authorized to act as official agencies. Commercial banks, which for this purpose are defined
as banks accepting demand deposits, may submit subscriptions for account of customers. Others than
commercial banks will not be permitted to enter subscriptions except for their own account. Subscriptions

from commercial banks for their own account will be restricted in each case to an amount not exceeding
25 percent of the combined capital, surplus and undivided profits of the subscribing bank. Subscriptions
from commercial and other banks for their own account, Federally-insured savings and loan associations,
States, political subdivisions 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 (in cash or in Treasury Notes
of Series C-1960, maturing August 15, 1960, at par, or Federal National Mortgage Association Notes
of Series ML-1960-A tendered for purchase under Paragraph 2 of Section I, hereof, at par) of 20 percent
of the amount of bonds applied for, not subject to withdrawal until after allotment. Following allotment,
any portion of the 20 percent payment in excess of 20 percent of the amount of bonds allotted may be
released upon the request of the subscribers.
2. Commercial banks in submitting subscriptions will be required to certify that they have no bene­
ficial 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 account.
3. The Secretary of the Treasury reserves the right to reject or reduce any subscription, to allot
less than the amount of bonds 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.

IV. PAYMENT
1. Payment at par and accrued interest from June 23, 1960, to August 15, 1960 ($5.58084 per
$ 1,000) for bonds allotted hereunder must be made or completed on or before August 15, 1960, or on later
allotment. In every case where payment is not so completed, the payment with application up to 20 percent
of the amount of bonds allotted shall, upon declaration made by the Secretary of the Treasury in his
discretion, be forfeited to the United States. Payment may be made for any bonds allotted hereunder in
cash or by exchange of Treasury Notes of Series C-1960, maturing August 15, 1960, which will be accepted
at par. Where payment is made with Treasury Notes of Series C-1960, coupons dated August 15, 1960,
should be detached from such notes by holders and cashed when due.
2. In addition, payment may be made for any bonds allotted hereunder with the proceeds of the
par amount of Federal National Mortgage Association Notes of Series ML-1960-A tendered for purchase
in accordance with Paragraph 2 of Section I of this circular. Federal National Mortgage Association Notes
of Series M L-1960-A tendered for purchase must have coupons dated August 23, 1960, attached, and
payment will be made at par and accrued interest to August 15, 1960. Accrued interest from February 23,
1960, to August 15, 1960, on the Series ML-1960-A notes ($17.31944 per $1,000) will be credited and
accrued interest from June 23, 1960, to August 15, 1960 ($5.58084 per $1,000) will be charged and the
difference ($11.7386 per $1,000) will be paid subscribers following acceptance of the notes.

V. GENERAL PROVISIONS
1. As fiscal agents of the United States, Federal Reserve Banks are authorized and requested to
receive subscriptions, to make allotments on the basis and up to the amounts indicated by the Secretary
of the Treasury to the Federal Reserve Banks of the respective Districts, to issue allotment notices, to
receive payment for bonds allotted, to make delivery of bonds on full-paid subscriptions allotted, and they
may issue interim receipts pending delivery of the definitive bonds.
2. The Secretary of the Treasury may at any time, or from time to time, prescribe supplemental or
amendatory rules and regulations governing the offering, which will be communicated promptly to the
Federal Reserve Banks.

ROBERT B. ANDERSON,
Secretary of the Treasury.

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