View PDF

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

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)

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