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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, M arch 26, 1964

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 Announces One Billion New Cash Borrowing and
Regular One-Year Bill

The Treasury D epartm ent announced today that it is offering an additional $1 billion, or there­
abouts, of the 3 7
/s% notes due August 13, 1965, that were originally issued as part of the February
refunding offering which was made two months ago. Public holdings of this issue are $2.2 billion, a
comparatively small amount for a quarterly maturity. The additional $1 billion offering will bring the
total maturing on this quarterly date more nearly in line with other quarterly m aturities and help to
broaden the m arket tradeability of the issue. The notes are to be offered at a price of $99.70 (to yield
about 4.10 percent), plus accrued interest from February 15, 1964, to April 8, 1964 ($5.64217
per $1,000).
Subscriptions will be received for one day only, on Tuesday, March 31. All subscriptions for the
notes addressed to a Federal Reserve Bank or Branch, or to the Treasurer of the United States,
Washington, D. C. 20220, and placed in the mail before midnight M arch 31 will be considered as timely.

Paym ent may be made through credit to Treasury Tax and Loan accounts and will be due on
April 8.
At the same time the Treasury announced its customary monthly offering of $ 1 billion of one-year
Treasury bills. The auction will occur on Friday, April 3. Paym ent will be due on Wednesday, April 8,
and may be made with 50 percent credit to Treasury Tax and Loan accounts. Full details are contained
in the Treasury’s release inviting tenders for the bills.
Interest on the notes will be paid on August 15, 1964, and February 15 and August 13, 1965.
The notes will be made available in registered as well as bearer form. All subscribers requesting regis­
tered notes 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 3% % Treasury Notes, Series D-1965, from banking institutions for their
own account, Federally-insured savings and loan associations, States, political subdivisions or instru­
mentalities thereof, public pension and retirem ent and other public funds, international organizations
in which the United States holds membership, foreign central banks and foreign States, Government
investment accounts and dealers who make prim ary 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 paym ent of 2 percent of the amount of
notes 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 50 percent of
the combined capital (not including capital notes or debentures), surplus and undivided profits of the
subscribing bank.
The Secretary of the Treasury reserves the right to reject or reduce any subscription, to allot less
than the amount of notes applied for, and to make different percentage allotments to various classes
of subscribers.
(Over)

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)

Commercial banks and other lenders are requested to refrain from making unsecured loans, or
loans collateralized in whole or in part by the notes 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
th at effect.
All subscribers to the notes 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 at a specific rate or price, until after midnight M arch 31.
Tender forms for the one-year bill are enclosed. It will be observed th at the closing time for the receipt of
tenders for the bills is one-thirty p.m., Eastern Standard time, Friday, April 3. The official circular and
subscription forms for the additional issue of 3% percent notes due August 13, 1965, will be mailed Friday,
M arch 27; however, if the forms are not received by Tuesday, M arch 31, subscriptions m ay be entered by mail
or telegram, subject to confirmation on official subscription blanks.
Yours very truly,
W atrous H. Irons
President


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102