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FEDERAL RESERVE BANK OP DALLAS F IS C A L A G K N T O F T H E U N IT E D ST A T E S Dallas, Texas, July 18, 1957 PRELIMINARY ANNOUNCEMENT EXCHANGE OFFERING To all Banking Institutions and Others Concerned in the Eleventh Federal Reserve District: There is quoted below a press statement issued today by the Treasury Department in regard to the new exchange offering: “The Treasury Department announced today that subscription books will be opened on Monday, July 22, for refunding the Treasury notes and certificates of indebtedness maturing August 1, August 15 and October 1. The exchange offering will include a 3% percent 4-month certificate of indebtedness, a 4 percent one-year certificate of indebtedness and a 4 percent 4-year Treasury note redeemable at the option of the holder on August 1, 1959, on three months advance notice. “The 2% percent Treasury notes maturing August 1 and the 2 percent Treasury notes maturing August 15 will be eligible for exchange for any of the three new issues. “The 3l^ percent certificates of indebtedness due October 1 and the 1Y2 percent Treasury notes due October 1 will be eligible for exchange into either the 4 percent one-year certificates or the 4 percent 4-year notes. “Exchanges will be made par for par in the case of the 2% percent notes maturing August 1; at par with an adjustment of interest as of August 1 in the case of the 2 percent notes maturing August 15, and the 3% percent certificates maturing October 1; and at par with an adjustment of interest as of October 1 in the case of the 1 1 /2 percent notes maturing October 1. v “Interest will be paid on December 1, 1957, in the case of the 4-month certificate. On the other two new issues, interest will be paid semiannually on February 1 and August 1 in each year. “Cash subscriptions will not be received. However, the Secretary of the Treasury reserves the right to allot up to $100,000,000 of each of the three new issues at par to Government investment accounts. “The subscription books will be open July 22 through July 24 for this exchange offering. Any subscription for any of the three issues addressed to a Federal Reserve Bank or Branch, or to the Treasurer of the United States, and placed in the mail before midnight, Wednesday, July 24, will be considered as timely.” Official circulars and subscription forms for the exchange offering will be mailed to reach all banking institutions by Monday, July 22. However, if the circulars and forms are not received in sufficient time, subscriptions may be entered by mail, telegraph or telephone, subject to confirmation with an official subscription blank. Yours very truly. Watrous H. Irons President This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)