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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 ITE D S T A T E S

Dallas, Texas, June 6, 1963

PRELIMINARY ANNOUNCEMENT
CASH FINANCING
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 current
financing:
Treasury To Borrow $1 V* Billion By
Offering 7-Year Bonds
The Treasury, in beginning its cash borrowing program for the remainder of the year, will offer
a 7-year and 2 months bond carrying a 4 % coupon at par.
The offering will be made for cash subscription on Tuesday, June 11. The 4 % Treasury bonds
are to be dated June 20, 1963, and will mature on August 15, 1970. Payment, which will be due on
June 20, may be made through credit to Treasury Tax and Loan accounts.
In addition to the amount of bonds to be offered for public subscription, the Secretary of the
Treasury reserves the right to allot up to $50 million of the bonds to Government Investment accounts.
Subscriptions will be received for one day only, on Tuesday, June 11. All subscriptions for the
bonds addressed to a Federal Reserve Bank, or to the Treasurer of the United States, Washington 25,
D. C., and placed in the mail before midnight, June 11, will be considered as timely. All subscribers
requesting registered bonds will be required to furnish appropriate identifying numbers as required on
tax returns and other documents submitted to the Internal Revenue Service.
Subscriptions to the 4 % Treasury Bonds of 1970 from banking institutions for their own account
and from Federally-insured savings and loan associations, States, political subdivisions or instrumen­
talities thereof, public pension and retirement and other public funds, international organizations in
which the United States holds membership, foreign central banks and foreign States, and dealers who
make primary markets 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 without deposit. Subscriptions from all others must be accompanied by payment of 10 percent
of the amount of bonds applied for, not subject to withdrawal until after allotment. Subscriptions from
commercial banks for their own account will be restricted in each case to an amount not exceeding
10 percent of the combined amount of time and savings deposits, including time certificates of deposit,
or 25 percent o f the combined capital, surplus and undivided profits, of the subscribing bank, which­
ever is greater.
Interest will be payable semiannually on February 15 and August 15, in each year until the
bonds mature. The first interest coupon, payable February 15, 1964, will cover interest accrued from
June 20, 1963, to February 15, 1964.
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. Subject to these reservations subscriptions in amounts up to and including
$100,000 will be allotted in full and subscriptions over $100,000 will be allotted on a percentage basis
but not less than $100,000.
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 securities subscribed for
under this offering, until after midnight June 11.
The official circular and subscription forms for the Treasury bonds will be mailed Friday, June 7; however,
if the forms are not received by Tuesday, June 11, subscriptions may be entered by mail or telegram, subject to
confirmation on 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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