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FEDERAL RESERVE BANK OF DALLAS
FISC A L A G EN T O F T H E U N ITED STA TES

Dallas, Texas, November 18,1957
PRELIMINARY ANNOUNCEMENT
CASH AND EXCHANGE OFFERINGS
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 and exchange offerings:
“The Treasury Department announced today that on Wednesday, November 20, it will
offer for cash subscription $500 million, or thereabouts, of 3% percent 17-year Treasury
bonds and $1 billion, or thereabouts, of 3% percent 5-year Treasury notes. The subscrip­
tion books will be open only on November 20 for these offerings. In addition, up to $100
million of each of these issues may be allotted to Government Investment Accounts.
“The new bonds to be issued on cash subscriptions will be dated December 2, 1957,
and will mature November 15, 1974. Interest will be payable on a semiannual basis on
May 15 and November 15 in each year.
“The new notes to be issued on cash subscriptions will be dated November 29, 1957,
and will mature November 15, 1962. Interest will be payable on a semiannual basis on
May 15 and November 15 in each year.
“Subscriptions for the bonds and notes from commercial banks, which for this purpose
are defined as banks accepting demand deposits, for their own account, will be received
without deposit, but will be restricted as to each subscription to an amount not exceeding
25 percent in the case of the bonds and 50 percent in the case of the notes of the combined
capital, surplus and undivided profits of the subscribing bank, as of June 30, 1957. A
payment of 10 percent of the amount of bonds and 2 percent of the amount of notes sub­
scribed 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 subscribed for, to cover
the deposits required to be paid when subscriptions are entered.
“On Thursday, November 21, the subscription books will be opened for an offering of
3% percent 1-year Treasury certificates of indebtedness in exchange for the $9,971 million
of 3% percent certificates of indebtedness maturing December 1, 1957. The subscription
books will be open only on November 21 and November 22 for this offering.
“The new certificates will be dated December 1, 1957, and will mature December 1,
1958. Exchanges will be made par for par on or before December 2. Coupons dated
December 1 should be detached from the maturing certificates and cashed when due.
Interest will be payable on the new certificates on June 1 and December 1, 1958. Cash sub­
scriptions for the certificates will not be received.
“Any subscription addressed to a Federal Reserve Bank or Branch, or to the Treas­
urer of the United States, and placed in the mail before midnight November 20 in the
case of the new bonds and notes, or before midnight November 22 in the case of the new
certificates, will be considered as timely.”
Official circulars and subscription forms for the offerings will be placed in the mail today.
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)


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