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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, July 16, 1959

PRELIMINARY ANNOUNCEMENT
EXCHANGE OFFERING

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 a
new exchange offering:
“The Treasury Department announced today an optional exchange offering of 4 % percent
12 Vi-month Treasury notes to be dated August 1, 1959, and to mature August 15, 1960, and
4 % percent 4 % -year Treasury notes to be dated July 20, 1959, and to mature M ay 15, 1964,
open to holders of $13,500 million lVs percent certificates of indebtedness, maturing August 1,
and $473 million 4 percent notes of series A-1961, dated August 1, 1957, on which the option to
redeem on August 1, 1959, was exercised by the holders. Cash subscriptions will not be received.
“Interest on the new 12 V2 -month note will be payable on February 15 and August 15, 1960.
Interest on the longer note will be payable on November 15, 1959, and thereafter on M ay 15
and November 15 in each year until the principal amount is payable.
“In the case of the 12V2-month notes, exchanges will be made at par as of August 1 and the
coupons due on that date on both of the exchange issues should be detached and cashed when
due. In the case of the notes of series A-1961, interest coupons Nos. 5 through 8 should be
attached to the notes when they are surrendered. In the case of the 4 Vi-year note, exchanges
will be made at par as of July 20 with interest adjustments on the exchange issues as of that date,
and both of the exchange issues should be presented with the August 1, 1959, coupon attached.
In the case of the notes of series A-1961, interest coupons Nos. 5 through 8 should also be attached.
“The delivery date for both new issues will be August 3. The subscription books will be open
July 20 through July 22 for this exchange offering. 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 Wednesday, July 22, will be considered as timely.”
Official circulars and subscription forms for the exchange offering will be mailed as soon as possible.
However, if the circulars and forms are not received by Wednesday, July 22, 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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