The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
FEDERAL RESERVE BANK O F 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, April 5, 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 3% Percent Bonds of 1968 “The Treasury announced today th at on M onday, April 9, it will offer for cash subscription $1 billion, or thereabouts, of 3% percent Treasury bonds to be dated April 18, 1962, and to m ature August 15, 1968. The bonds are to be offered at par. Paym ent m ay be made through credit to Treasury Tax and Loan accounts, and will be due on April 18. “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. “Subscriptions will be received for one day only, on M onday, April 9. All subscriptions for the bonds addressed to a Federal Reserve Bank, or to the Treasurer of the U nited States, W ashington 25, D. C., and placed in the m ail before midnight, April 9, will be considered as timely. “Subscriptions to the 3 3 percent Treasury Bonds of 1968 from banking institutions generally A for their own account and from States, political subdivisions or instrum entalities thereof, public pen sion and retirem ent and other public funds, and dealers who m ake prim ary m arkets in Government securities and report daily to the Federal Reserve Bank of New York their positions with respect to Government securities and borrowings thereon, will be received w ithout deposit. Subscriptions from all others m ust be accompanied by paym ent of 25 percent of the am ount of bonds applied for, not subject to withdrawal until after allotm ent “Subscriptions from commercial banks for their own account will be restricted in each case to an am ount not exceeding 5 percent of the combined am ount of tim e and savings deposits, including tim e certificates of deposit, or 25 percent of the combined capital, surplus and undivided 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 am ount of bonds applied for, and to m ake different percentage allotm ents to various classes of subscribers. “Commercial banks and other lenders are requested to refrain from m aking unsecured loans, or loans collateralized in whole or in p art by the bonds subscribed for, to cover the deposits required to be paid when subscriptions are entered, and banks will be required to m ake the usual certification to th at 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 securities subscribed for under this offering, until after midnight, April 9.” Official circulars and subscription forms for the Treasury bonds will be m ailed Friday, April 6; however, if the circulars and forms are not received by M onday, April 9, subscriptions m ay be entered by m ail or telegram , subject to confirmation on official subscription forms. 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)