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FEDERAL RESERVE BANK OF DALLAS
F I S C A L A G E N T O F T H E U N IT E D S T A T E S

Dallas, Texas, February 25, 1958

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 a new cash offering:
“ The Treasury Department announced today that the Treasury bond on
which the cash subscription books will be open on Friday, February 28, will be
dated February 28, 1958, and will bear interest from that date at the rate of 3
percent per annum, and will mature August 15, 1966. The amount of the offering
is $1,250 million or thereabouts, and in addition, up to $100 million may be allotted
to Government Investment accounts. Interest will be payable on a semiannual
basis on August 15, 1958, and thereafter each six months until the bonds become
payable. Delivery of the new bonds will be made on March 10. The books will be
open only for one day, on February 28.
“ Subscriptions from commercial banks, which for this purpose are defined
as banks accepting demand deposits, for their own account will be received with­
out deposit but 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. A payment of 15 percent of the amount of bonds subscribed for must be
made on all other subscriptions, and this payment must be forwarded with the
subscriptions in immediately available funds, or by credit in a Treasury Tax and
Loan account of the bank through which the subscription is entered, to the
Federal Reserve Bank or Branch, or to the office of the Treasurer o f the United
States. Following allotment, any portion of the 15 percent payment in excess of
the amount of bonds allotted will be returned to the subscribers. The new bonds
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 bonds subscribed
for, to cover the 15 percent deposits required to be paid when subscriptions are
entered.
“ Any subscription addressed to a Federal Reserve Bank or Branch, or to the
Treasurer of the United States, and placed in the mail before midnight February
28, will be considered as timely.”
Official circulars and subscription forms for the cash offering will be mailed as soon
as possible. However, if the circulars and forms are not received by Friday, February 28,
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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