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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)


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