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FEDERAL RESERVE BANK O F DALLAS
FISC A L. A G EN T O F T H E U N IT E D ST A T E S

Dallas, Texas, January 27, 1965

PRELIMINARY ANNOUNCEMENT
TREASURY 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 Announces February Refunding Terms
The Treasury will borrow $2,170 million, or thereabouts, through the issuance of 21-month 4%
Treasury Notes of Series E-1966, dated February 15, 1965, and maturing November 15, 1966, for the
purpose of paying off in cash about $2,170 million of 2% % Treasury Bonds of 1965, maturing
February 15, 1965. The notes are to be offered at a price of $99.85 (to yield about 4.09 percent).
Interest will be payable on the notes on M ay 15 and November 15, 1965, and on M ay 15 and
November 15, 1966.
The notes will be made available in registered as well as bearer form. 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.
Paym ent and delivery date for the notes will be February 15. Paym ent may be made in cash,
or in 2% % bonds of 1965, which will be accepted at par, in payment or exchange, in whole or in part,
for the notes subscribed for, to the extent such subscriptions are allotted by the Treasury. Cash
adjustments will be made for the difference between the par value of maturing bonds accepted in
exchange and the issue price of the notes. In the case of registered bonds submitted in payment, the
final interest due on February 15, 1965, will be paid by the issue of interest checks in regular
course to holders of record on January 15, 1965, the date the transfer books closed. The new issue
may nof be paid for by credit in Treasury Tax and Loan Accounts.
The subscription books will be open only on M onday, February 1. 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, February 1, 1965, will be considered timely.
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
membership, foreign central banks and foreign States, dealers who make primary markets in Govern­
ment 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
Bonds of 1965, maturing February 15, 1965, at par) of the amount of notes applied for not subject
to withdrawal until after allotment.
(O V E R )

1

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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; and any action he may take in these respects shall be final. The basis of the
allotment will be publicly announced, and allotment notices will be sent out promptly upon allotment.
Subject to the reservations in the preceding paragraph, all subscriptions from States, political
subdivisions or instrumentalities thereof, public pension and retirement and other public funds, inter­
national 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
upon the submission of a written certification by the subscriber that the amount of the subscription
does not exceed the amount of the maturing bonds owned or contracted for purchase for value, at
4 P.M., Eastern Standard Time, January 27, 1965. Should any such subscriber enter any subscription
which does not carry the certification as to ownership of the eligible securities, any and all sub­
scriptions received from such subscriber will be allotted on the basis of the allotment to be publicly
announced for other classes of subscribers.
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 notes subscribed for under this
offering at a specific rate or price until after midnight February 1, 1965.
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, January 28;
however, if the forms are not received by Monday, February 1, 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