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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 S T A T E S

Dallas, Texas, September 28, 1961

PRELIMINARY ANNOUNCEMENT
CASH FINANCING

To All Banking Institutions and Others Concerned
in the Eleventh Federal Reserve District:
There is quoted below a press statement issued today b y the Treasury Department in regard to current
financing:
Treasury W ill Borrow $2 Billion
“As a second step in the Treasury’s previously announced autumn cash financing program, it w ill
borrow $2 billion, or thereabouts, by the sale, at 99.875 and accrued interest from M a y 15, 1961, to
October 11, 1961, of additional amounts of the outstanding 3 Vi percent Treasury notes dated M a y 15,
1961, which mature M a y 15, 1963. T h e additional notes w ill be issued on October 11, 1961, for
payment on that date. Paym ent for 75 percent o f these notes m ay be made by credit in Treasury
T a x and Loan accounts. There are $2,753 m illion of the 3 Vi percent notes outstanding, o f which
approximately $850 million are held by the Federal Reserve Banks and Treasury investment accounts.
“In addition to the amount o f notes to be offered for subscription, the Secretary o f the Treasury
reserves the right to allot up to $100 million of the notes to Government investment accounts.
‘T h e subscription books for the notes w ill be open only on M onday, October 2, 1961. A n y sub­
scriptions for the notes addressed to a Federal Reserve Bank or Branch, or to the Treasurer o f the
United States, and placed in the mail before midnight October 2 w ill be considered as timely.
“Subscriptions to the 3 Vi percent Treasury notes of M a y 15, 1963, from commercial banks for
their own account w ill be received without deposit, but w ill be restricted to 50 percent o f the combined
capital, surplus and undivided profits of the subscribing bank, and subscriptions from all others must
be accompanied b y payment o f 2 percent o f the amount o f notes applied for, not subject to withdrawal
until after allotment.
‘T h e Secretary of the Treasury reserves the right to reject or reduce any subscription, to allot
less than the amount of notes applied for, and to make different percentage allotments to various
classes o f subscribers.
“Commercial banks and other lenders are requested to refrain from making unsecured loans, or
loans collateralized in whole or in part b y the notes subscribed for, to cover the deposits required to
be paid when subscriptions are entered, and banks w ill be required to make the usual certification
to that effect
“A ll subscribers to the notes 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 o f the securities subscribed for
under this offering, until after midnight October 2.”
Official circulars and subscription forms for the Treasury notes w ill be mailed as soon as possible. However,
if the circulars and forms are not received b y Monday, October 2, subscriptions m ay be entered b y mail or
telegram, subject to confirmation on official subscription blanks.
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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