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FEDERAL RESERVE BANK OF DALLAS
F IS C A L A G E N T O F T H E U N ITE D STATE S

Dallas, Texas, April 2, 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 on Monday,
April 7, it will offer for cash subscription $ 8 ^ billion, or there­
abouts, of 2% percent 4-year 10-month Treasury notes. The sub­
scription books will be open only on April 7 for this offering. In
addition up to $100 million of the notes may be allotted to Govern­
ment Investment accounts.
“ The new notes will be dated April 15, 1958, and will mature
February 15, 1963. Interest will be payable on a semiannual basis
on August 15, 1958, and thereafter on February 15 and August 15
in each year.
“ Subscriptions from commercial banks, which for this pur­
pose are defined as banks accepting demand deposits, for their own
account, will be received without deposit, but will be restricted to
an amount not exceeding 75 percent of the combined capital, sur­
plus and undivided profits of the subscribing bank. A payment of
10 percent of the amount of notes subscribed for must be made on
all other subscriptions. The new 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 notes subscribed for, to cover the 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, April 7, will be considered as timely.”
The official circular and subscription forms for the cash offering will
be mailed to reach you by Monday. However, if the circular and forms are
not received by Monday, April 7, 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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