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FEDERAL RESERVE BANK OF DALLAS
F IS C A L

AG EN T O F THE

U N IT E D S T A T E S

Dallas, Texas, September 25, 1958

PRELIMINARY ANNOUNCEMENT
CASH 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 offerings:
“ The Treasury Department announced today that on Monday, September 29, it will
offer for cash subscription $1 billion, or thereabouts, of 3*/2 percent 13-month Treasury
Notes at par, and $ 2 ^ billion, or thereabouts, of 219-day Special Treasury Bills (to be issued
on a fixed-price basis) at 98.023, at which price the yield to the purchaser is approximately
3.25 percent per annum. In addition, up to $100 million of the notes may be allotted to
Government Investment Accounts.
“ The notes will be dated October 10, 1958, and will mature November 15, 1959.
Interest will be payable on a semiannual basis on May 15 and November 15, 1959.
“ The Treasury bills will be dated October 8, 1958, and will mature May 15, 1959.
“ Subscriptions for either issue 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 in the case of the notes to an amount not exceeding 25 percent,
and in the case of the bills not exceeding 50 percent, of the combined capital, surplus and
undivided profits of the subscribing bank. Payment of 2 percent of the amount of notes or
bills 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 securities subscribed for, to cover
the deposits required to be paid when subscriptions are entered.
“ Any subscription for either issue addressed to a Federal Reserve Bank or Branch,
or to the Treasurer of the United States, and placed in the mail before midnight, Septem­
ber 29, will be considered as timely.”
Official circulars and subscription forms for the cash offerings will be mailed as soon as possible.
However, if the circulars and forms are not received by Monday, September 29, subscriptions may
be entered by mail, telegraph or telephone, subject to confirmation with 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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