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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, January 11, 1962

PRELIMINARY ANNOUNCEMENT
CASH FINANCING

To All Banking Institutions and Others Concerned
in the Eleventh Federal Reserve District:

There is quoted below a press statem ent issued today by the Treasury D epartm ent in regard to current
financing:
Treasury Will Borrow $1 Billion By
Offering More 4 Percent Bonds

“The Treasury announced today th at it will complete the borrowing for its present seasonal cash
requirements by offering investors an additional $ 1 billion of the 4 percent bonds maturing October 1,
1969. About $1.4 billion of these bonds are already outstanding, of which about $1.2 billion are held
outside Federal Reserve and other official accounts. Subscriptions will be received for one day only,
on M onday, January 15, at a price of 99.75 (to yield about 4.04 percent), plus the accrued interest
from last October 1 to the paym ent date. Paym ent m ay be made through credit to Treasury Tax and
Loan accounts, and will be due on January 24.
“In addition to the am ount of bonds to be offered for public subscription, the Secretary of the
Treasury reserves the right to allot up to $ 100 million of the bonds to Government investment accounts.
“Any subscriptions for the bonds addressed to a Federal Reserve Bank or Branch, or to the
Treasurer of the United States, Washington 25, D. C., and placed in the mail before midnight, January
15, will be considered as timely.
“Subscriptions to the 4 percent Treasury Bonds of 1969 from banking institutions generally for
their own account and from States, political subdivisions or instrum entalities thereof, public pension
and retirem ent and other public funds, and dealers who make prim ary m arkets in Government securi­
ties and report daily to the Federal Reserve Bank of New York their positions with respect to Govern­
m ent securities and borrowings thereon, will be received without deposit. Subscriptions from all others
m ust be accompanied by paym ent of 25 percent of the amount of bonds applied for, not subject to with­
drawal until after allotment. Subscriptions from commercial banks for their own account will be re­
stricted in each case to an amount not exceeding 5 percent of the combined am ount of time and savings
deposits, including time certificates of deposit, or 15 percent of the combined capital, surplus and un­
divided profits, of the subscribing bank, whichever is greater.
“The Secretary of the Treasury reserves the right to reject or reduce any subscription, to allot
less than the amount of bonds applied for, and to make different percentage allotments to various
classes of subscribers.
“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 deposits required to be paid
when subscriptions are entered, and banks will be required to make the usual certification to that effect.
“All subscribers to the bonds 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 the additional bonds subscribed
for under this offering, until after midnight, January 15.”
Official circulars and subscription forms for the Treasury bonds will be mailed Friday, January 12; however,
if the circulars and forms are not received by Monday, January 15, subscriptions m ay be entered by mail or
telegram, subject to confirmation on official subscription blanks.
Yours very truly,
W atrous 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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