View PDF

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

IMPORTANT NOTICE
To all Banking Institutions and Others Concerned
in the Eleventh Federal Reserve District;
The Treasury Department has requested this bank to notify all concerned to
’disregard misleading statement on tax and loan account credit on Fanny May offering
‘
in Friday’s American Bankero” As pointed out in the attached circular, arrangements
have been made between the Association and the Treasury wherety the Treasury will
deposit with qualified banks, upon request, amounts equal to notes allotted to such
banks for themselves and their customers* We understand correction will appear in
the Monday edition of American Banker.
Dallas, Texas
October 18, 19^7

FEDERAL RESERVE BAMIC CF DALLAS
Fiscal Agent of the United States

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

FEDERAL RESERVE BANK OF DALLAS
F IS C A L A O B N T O P T H E U N IT E D ST A T E S

Dallas, Texas, September 12, 1957

PRELIMINARY ANNOUNCEMENT
CASH 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 cash offering:
“The Treasury Department announced today that on Monday, September 16,
it will offer for cash subscription $3 billion, or thereabouts, of Public Debt
securities. The offering will consist of $500 million, or thereabouts, of a new
4 percent 12-year Treasury bond, $1,750 million, or thereabouts, of a new 4 per­
cent 5-year Treasury note redeemable at the option of the holder on February
15, 1960 on 3 months advance notice and $750 million, or thereabouts, of the 4
percent Treasury Certificates of Indebtedness of Series C-1958, dated and bearing
interest from August 1, 1957, and due August 1, 1958. In addition, up to $100
million of each of the three issues may be allotted to Government investment
accounts.
“The new bonds will be dated October 1, 1957, and will mature October 1,
1969. Payment of not more than 50 percent of the amount allotted on this issue
may be deferred until not later than October 21, 1957. In the case of deferred
payments, accrued interest must be paid at the rate of $0.11 a day per $1,000
from October 1 to the dates payments are completed. Interest will be payable on
these bonds semiannually on April 1 and October 1 in each year.
“The new notes will be dated September 26,1957, and will mature August 15,
1962. Interest will be payable on a semiannual basis on February 15, 1958, and
thereafter each six months until the notes become payable.
“Since interest will run from August 1, 1957, in the case of the additional
issue of certificates of indebtedness, accrued interest from August 1, 1957, to
September 26,1957, the date payment must be made, will be collected. This inter­
est will amount to about $6.09 per $1,000. Interest on this issue will be payable
on February 1 and August 1, 1958.

“Subscriptions for each of the three issues from commercial banks, which
for this purpose are defined as banks accepting demand deposits, for their own
account, will be received without deposit, and such banks may subscribe for
each issue to an amount not exceeding 50 percent of the combined capital, sur­
plus and undivided profits of the subscribing banks. A payment of 2 percent of
the amount of securities subscribed for must be made on all other subscriptions.
The securities 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 securities sub­
scribed for, to cover the 2 percent deposits required to be paid when subscriptions
are entered.
“Any subscription addressed to a Federal Reserve Bank or Branch, ,pr ^
the Treasurer of the United States, and placed in the mail before midnight,
September 16, will be considered as timely.”
Official circulars and subscription forms for the cash offering will be mailed to reach
all banking institutions by Monday, September 16. 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

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