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FEDERAL RESERVE BANK OF DALLAS
F IS C A L A G E N T O F THE U N ITE D ST A T E S

Dallas, Texas, July 29, 1964

PRELIMINARY ANNOUNCEMENT
TREASURY FINANCING
To Ail 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 Announces August Refunding Terms and Plans
for March Tax Bill Offering
The Treasury will borrow $4 billion, or thereabouts, through the issuance of 18-month 3 % %
Treasury Notes, at par, dated August 15, 1964, for the purpose of paying off in cash $4.1 billion of
the following Treasury securities maturing August 15, 1964: $1,198 million of 5 % Treasury Notes
of Series B-1964, dated October 15, 1959; and $2,910 million of 3 % % Treasury Notes of Series
E-1964, dated August 1, 1961.
The Treasury also announced that it plans to offer $1 to $1 Vz billion March tax bills later in
August.
The new 18-month 3 % % notes being offered now will be dated August 15, 1964, and will mature
February 15, 1966. Interest will be payable semiannually on February 15 and August 15, 1965, and
on February 15, 1966. The notes will be made available in registered as well as bearer form. Payment
and delivery date for the notes will be August 17.
Subscriptions will be received subject to allotment. All subscribers requesting registered notes
will be required to furnish appropriate identifying numbers as required on tax returns and other
documents submitted to the Internal Revenue Service. Payment may be made in cash, or in 5%
Treasury Notes of Series B-1964 or 3 % % Treasury Notes of Series E-1964, which will be accepted
at par, in payment or exchange, in whole or in part, for the Treasury notes subscribed for, to the
extent such subscriptions are allotted by the Treasury.
The subscription books will be open only o n M onday , A ugust 3. Any subscriptions with the
required deposits addressed to a Federal Reserve Bank or Branch, or to the Treasurer of the United
States, and placed in the mail before midnight, August 3, 1964, will be considered timely.
The new issue may

not

be paid for by credit in Treasury Tax and Loan Accounts.

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 deben­
tures), surplus and undivided profits of the subscribing bank.
Subscriptions from commercial and other banks for their own account, Federally-insured savings
and loan associations, States, political subdivisions or instrumentalities thereof, public pension and
retirement and other public funds, international organizations in which the United States holds mem­
bership, foreign central banks and foreign States, 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, Government Investment Accounts, and the Federal
Reserve Banks will be received without deposit.
Subscriptions from all others must be accompanied by payment of 2 % (in cash, or Treasury
Notes of Series B-1964 or Series E-1964, maturing August 15, 1964, at par) of the amount of notes
applied for not subject to withdrawal until after allotment.
(OVER)

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

The Secretary of the Treasury reserves the right to reject or reduce any subscription, to allot less
than the amount of 3 % % notes applied for, and to make different percentage allotments to various
classes of subscribers; and any action he may take in these respects shall be final. Subject to these
reservations, and the submission of a written certification by the subscriber that the amount of the
subscription does not exceed the amount of the two eligible securities owned or contracted for purchase
for value, at 4 p.m., Eastern Daylight Saving time, July 29, 1964, all subscriptions from States,
political subdivisions or instrumentalities thereof, public pension and retirement and other public
funds, international organizations in which the United States holds membership, foreign central banks
and foreign States, Government Investment Accounts, and the Federal Reserve Banks, will be allotted
in full; provided, however, when any such subscriber elects to enter any subscription which does not
carry the certification as to ownership of the maturing securities, any and all subscriptions received
from the subscriber will be allotted on the basis of the allotment to be publicly announced. The basis
of the allotment of all other subscriptions will be publicly announced, and allotment notices will be
sent out promptly upon allotment.
All subscribers 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 any of the 3 % % notes until after midnight
August 3, 1964.
Commercial banks in submitting subscriptions will be required to certify that they have no
beneficial interest in any of the subscriptions they enter for the account of their customers, and that
their customers have no beneficial interest in the banks’ subscriptions for their own account.
The official circular and subscription forms for the Treasury notes will be mailed Thursday, July 30;
however, if the forms are not received by Monday, August 3, subscriptions may be entered by letter or
telegram, subject to confirmation on official subscription blanks.
Yours very truly,
Watrous H. Irons
President

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