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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 IT E D ST A T E S

Dallas, Texas, April 27, 1961

PRELIMINARY ANNO UNCEM EN T
TREASURY FINANCING

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 current
financing:
“T he Treasury will borrow $ 7 % billion, or thereabouts, on M ay 15, 1961, for the purpose of
paying off in cash securities maturing M ay 15, 1961.
“The maturing securities to be redeemed in cash are:
$3,674 million of 4 % percent Certificates of Indebtedness o f Series B-1961, dated M ay
15, 1960, maturing M ay 15, 1961, and $4,078 million of 3 % percent Treasury Notes of
Series B-1961, dated December 1, 1958, maturing M ay 15, 1961.
“The $ 7 % billion of new cash to be borrowed will be obtained from the issue of:
$5,250 million, or thereabouts, of 3 percent Treasury certificates of indebtedness, to be
dated M ay 15, 1961, and to mature M ay 15, 1962, and
$2,500 million, or thereabouts, of 3 Vi percent Treasury notes, to be dated M ay 15, 1961,
and to mature M ay 15, 1963.
“The new certificates of indebtedness and Treasury notes will be issued at par, and subscriptions
will be received subject to allotment. Payment for the new certificates and notes may be made in cash,
in 4 % percent Certificates of Indebtedness of Series B-1961, or in 3 % percent Treasury Notes of
Series B-1961, maturing M ay 15, 1961, which will be accepted at par, in payment or in exchange, in
whole or in part, for the new Treasury certificates of indebtedness and Treasury notes subscribed for,
to the extent such subscriptions are allotted by the Treasury.
“The subscription books for the new issues will be open only on Monday, M ay 1.
“Any subscriptions for the new 3 percent certificates of indebtedness or 3 Vi percent Treasury
notes with the required deposits addressed to a Federal Reserve Bank or Branch, or to the Treasurer
of the United States, and placed in the mail before midnight M a y 1, 1961, will be considered timely.
“The new issues may not be paid for by credit in Treasury Tax and Loan accounts.
“Other details concerning the new certificates of indebtedness and Treasury notes are as follows:
“Subscriptions from commercial banks, for their own account, will be restricted in the case of
each new issue to an amount not exceeding 50 percent of the combined capital, surplus, and undivided
profits of the subscribing bank.
“Subscriptions from commercial and other banks for their own account, Federally-insured savings
and loan associations, States, political subdivisions or instrumentalities thereof, public pension and
retirement and other public funds, international organizations in which the United States holds

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

membership, foreign central banks and foreign States, dealers who make primary markets in Govern­
ment securities and report daily to the Federal Reserve Bank of New York their positions with respect
to Government securities and borrowings thereon, Government Investment Accounts, and the Federal
Reserve Banks will be received without deposit
“Subscriptions from all others must be accompanied by payment of 2 percent (in cash, or
Treasury Certificates of Indebtedness of Series B-1961, or Treasury Notes of Series B-1961, maturing
M ay 15, 1961, at par) of the amount of new certificates of indebtedness or Treasury notes applied for
which will not be subject to withdrawal until after allotment.
“The Secretary of the Treasury reserves the right to reject or reduce any subscription, to allot
less than the amount of 3 percent certificates o f indebtedness or 3 Vi percent Treasury notes applied
for, and to make different percentage allotments to various classes of subscribers; and any action he
may take in these respects shall be final. Subject to these reservations, all subscriptions from States,
political subdivisions or instrumentalities thereof, public pension and retirement and other public
funds, international organizations in which the United States holds membership, foreign central banks
and foreign States, Government Investment Accounts, and Federal Reserve Banks, will be allotted
in full. The bases of the allotment of all other subscriptions will be publicly announced, and allotment
notices will be sent out promptly upon allotment.
“All subscribers are required to agree not to purchase or to sell, or to make any agreements with
respect to the purchase or sale or other disposition of any of the new 3 percent certificates o f indebted­
ness or 3 % percent Treasury notes until after midnight M ay 1, 1961.
“Commercial banks in submitting subscriptions will be required to certify that they have no
beneficial interest in any of the subscriptions they enter for the account of their customers, and that
their customers have no beneficial interest in the banks’ subscriptions for their own account.”
Official circulars and subscription forms for the offering will be mailed Friday, April 28, 1961. However,
if the circulars and forms are not received by Monday, M ay 1, subscriptions may be entered by mail, telegraph
or telephone, subject to confirmation with official subscription blanks.
Yours very truly,
Watrous H. Irons,
President

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