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FEDERAL RESERVE BANK OF DALLAS
FISCAL AGENT OF THE UNITED STATES

Dallas, Texas, January 30, 1963

PRELIMINARY ANNOUNCEMENT
EXCHANGE OFFERING
To All Banking Institutions and Others Concerned
in the Eleventh Federal Reserve District:

A press statement issued by the Treasury Department today in regard to current financing is quoted below:
Treasury Announces $9.5 Billion Exchange and
Outlines Future Financing Plans
In announcing today its plans for the refunding of $9.5 billion of securities maturing February
15, 1963, the Treasury said that this operation is to be viewed as the first step in a probable threephase program.
Subject to future market developments, the Treasury plans, upon completion of the February 15
financing, to announce a “junior” advance refunding adapted to the requirements of the market at
that time. Th e Treasury is also considering the employment for the second time of the newly developed
technique for offering long-term bonds at competitive bidding. Subject to market developments, it
is likely that the bidding for this offering o f long-term bonds w ill occur during the first half o f April.
Th e holders of Treasury securities maturing February 15, aggregating $9,465 million, w ill have
the right to exchange them for any of the following securities:
A 3 V i% Treasury Certificate of Indebtedness to be dated February 15, 1963, and to mature
February 15, 1964, at par; or
An additional amount of 3 % % Treasury Bonds o f 1968 originally issued A pril 18, 1962,
maturing August 15, 1968, at par, o f which $1,258 million are now outstanding.
Cash subscriptions for the new securities w ill not be received.
T h e maturing issues eligible for exchange are as follows:
$5,719 million of 3V2% Treasury Certificates of Indebtedness of Series A-1963, dated February
15, 1962,
$1,487 million of 2 s/ a % Treasury Notes of Series A-1963, dated April 15, 1958, and
$2,259 million of 3 Y i % Treasury Notes of Series E-1963, dated Novem ber 15, 1961.
Exchanges of the maturing 3 V 2 % certificates and the 2 % % and 3 V* % notes w ill be made in a
like face amount of the new securities as of February 15. Coupons dated February 15 on the matur­
ing certificates and notes should be detached and cashed when due.
T h e subscription books w ill be open only on February 4 through February 6 for the receipt of sub­
scriptions. Subscriptions for any issue addressed to a Federal Reserve Bank or Branch, or to the Office
of the Treasurer of the United States, and placed in the mail before midnight February 6, w ill be
considered as timely. Th e new securities w ill be delivered February 15, 1963. Th e new certificates of
indebtedness w ill be available only in bearer form. T h e new bonds w ill be made available in registered
as w ell as bearer form. A ll subscribers requesting registered bonds w ill be required to furnish appro­
priate identifying numbers as required on tax returns and other documents submitted to the Internal
Revenue Service.
Interest on the 3 V 4 % certificates of indebtedness w ill be paid on August 15, 1963, and February
15, 1964. Interest on the 3 % % Treasury Bonds of 1968 is payable semiannually on February 15
and August 15.
Official circulars and subscription forms for the new Treasury certificates and the additional issue of
Treasury bonds w ill be mailed to all banking institutions.
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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