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FEDERAL RESERVE BANK OF DALLAS FISCAL. A G E N T O F T H E U N ITE D S T A T E S Dallas, Texas, February 21, 1963 ADVANCE REFUNDING To All Banking Institutions and Others Concerned in the Eleventh Federal Reserve District: The following material relating to an advance refunding by the Treasury Department is enclosed: ( 1 ) press release issued by the Treasury Department on February 20, 1963, ( 2 ) an appendix to para graph 9 of the press release relative to the treatment of gain or loss for Federal income tax purposes in connection with the exchange, ( 3 ) a special advance refunding notice which may be useful in handling inquiries, ( 4 ) Treasury Department Circulars, Public Debt Series Nos. 4-63, 5-63, 6-63 and 7-63, and ( 5 ) official subscription forms. SECURITIES OFFERED 3% 3% 4 3% PERCENT TREASURY PERCENTTREASURY PERCENTTREASURY PERCENT TREASURY NOTES BONDS BONDS BONDS OF SERIES OF 1971 OF 1980 OF 1974 B-1967 (Additional Issue) (Additional Issue) (Additional Issue) SECURITIES ELIGIBLE FOR EXCHANGE 3 'A 2 Vi 3Ve 3 3Vi 3% 3 3% percent Treasury Certificates of Indebtedness of Series C-1963, maturing August 15, 1963 percent Treasury Bonds of 1963, maturing August 15, 1963 percent Treasury Certificates of Indebtedness of Series D-1963, maturing November 15, 1963 percent Treasury Bonds of 1964, maturing February 15, 1964 percent TreasuryNotes of Series B-1965, maturing November 15, 1965 percent TreasuryNotes of Series B-1966, maturing February 15,1966 percentTreasury Bonds of 1966, maturing August 15, 1966 percent TreasuryBonds of 1966, maturing November 15, 1966 PAYMENT The securities to be exchanged should accompany the subscriptions and final settlement will be made on March 15, 1963. TAX ACCOUNT NUMBERS All subscribers requesting registered securities will be required to furnish appropriate identifying num bers as required on tax returns and other documents submitted to the Internal Revenue Service, i.e., an indi vidual’s social security number or an employer identification number. CLOSING OF SUBSCRIPTION BOOKS The subscription books will be open for all classes of subscribers on February 25 through February 28, 1963, and, in addition, subscriptions may be submitted by individuals through March 8, 1963. Subscrip tions placed in the mail before midnight on the closing dates will be considered timely. Subscriptions will be received at this bank and its branches at El Paso, Houston, and San Antonio, and should be submitted on the enclosed forms. Additional circulars and forms will be furnished upon request 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) TREASUR Y DEPARTM ENT Washington, D . C. February 20, 1963 ADVANCE REFUNDING OFFER The Treasury today announced that it will offer holders of $29.0 billion o f outstanding Treasury securities an opportunity to extend their holdings at higher yields. O f this total, $20.3 billion are held by the public. The possibility of such an announcement was indicated on January 30 when it was stated that the Treasury planned, upon completion o f the February 15 financing, to announce a program of advance refunding adapted to the requirements of the market at that time. The current offering combines a junior advance refunding with a “ prerefunding” , that is, an advance refunding o f issues maturing within the next 12 months. Holders of securities eligible for exchange have the option o f exchanging them, as o f March 15, 1963, for four new issues as follow s: Securities Eligible for Exchange and Their Maturity Dates Securities Offered in Exchange and Their Maturity Dates PREREFUNDING 31/ 2% Ctfs., C -1963 8 /1 5 /6 3 21/ 2% Bonds, 1963 8 /1 5 /6 3 ) s % % Notes, B-1967 (New) 2 /1 5 /6 7 } 3 % % Bonds, 1971 (Addl. Issue) 1 1 /1 5 /7 1 14% Bonds, 1980 (Addl. Issue) 2 /1 5 /8 0 31/8% Ctfs., D -1963 1 1 /1 5 /6 3 3 % Bonds, 1964 2 /1 5 /6 4 “JUNIOR” ADVANCE REFUNDING 3 % % Notes, B-1965 1 1 /1 5 /6 5 3 % % Notes, B-1966 2 /1 5 /6 6 3 % Bonds, 1966 8 /1 5 /6 6 3 % % Bonds, 1966 1 1 /1 5 /6 6 ( 3 % % Bonds, 1974 (Addl. Issue) 1 1 /1 5 /7 4 (4 % Bonds, 1980 (Addl. Issue) 2 /1 5 /8 0 The exchanges will be made on the basis of par for par with accrued interest adjustments and cash payments to or payable by the subscribers which will approximately equalize current market values among eligible issues having different coupons and maturities, and provide an attractive exchange value for each of the issues offered. The amount of the offering will be limited to the amount o f securities accepted in exchange. Cash subscriptions are not invited. The exchange will not be treated as a sale and purchase for tax purposes; therefore, there will be no recognition o f gain or loss for Federal income tax purposes solely on account o f the exchange o f old for new securities. Details are presented in the following paragraph No. 9. The subscription books will be open beginning Monday, February 25, and will remain open through Thursday, February 28, 1963, for all classes o f subscribers. In addition, individuals (natural persons in their own right) will be allowed to subscribe for a further period through Friday, March 8, 1963. The amounts of cash payments due to or by subscribers, including the amounts o f accrued interest adjustments, as well as other details relating to this advance refunding are as follows. Terms and Conditions o f the Advance Refunding Offer 1. To all holders o f the following outstanding Treasury securities: Description of securities 3 % % certificate C-1963 2 % % bond 1963 3,i/ 8 % certificate D -1963 3 % bond 1964 31/ 2% note B-1965 3 % % note B-1966 3 % bond 1966 33/8 % bond 1966 Final maturity date Issue date A u g. 15, 1962 Dec. 15, 1954 Nov. 15, 1962 Feb. 14, 1958 Nov. 15, 1962 M ay 15, 1962 Feb. 28, 1958 March 15, 1961 Remaining term to maturity Yrs. - Mos. A u g. 15, 1963 A u g. 15, 1963 Nov. 15, 1963 Feb. 15, 1964 Nov. 15, 1965 Feb. 15, 1966 A ug. 15, 1966 Nov. 15, 1966 — — — — 2 2 3 3 Amount outstanding (in billions) 5 5 $6.9 4.3 4.9 2.7 3.3 3.1 1.5 2.4 8 11 8 11 5 8 -r additional amounts o f outstanding issu e s): Description of securities 35/8 % note of Feb. 1 5 ,1 9 6 7 37/8% bond o f Nov. 1 5 ,1 9 7 1 37/8% bond of Nov. 15, 1974 4 % bond of Feb. 15, 1980 Issue date March 15, 1963 May 15, 1962 Dec. 2, 1957 Jan. 23, 1959 Interest on the securities surrendered stops on March 15, 1963. Amount outstanding (in billions) — $1.2 1.2 1.5 Interest starts1 March March March March 15, 15, 15, 15, 1963 1963 1963 1963 Interest payable Feb. M ay May Feb. 15 15 15 15 and and and and A u g 15 Nov. 15 Nov. 15 A ug. 15 3. Terms o f the exchange: Exchanges will be made on the basis of equal face amounts, with payments to or by the Treasury, and with adjustments of accrued interest to March 15, 1963, on the securities surrendered and on the additional issues of bonds (per $100 face am ount), as indicated below: Securities to be exchanged Amounts to be paid to or by subscribers On on account of accrued interest to 3/15/63 account Payable Payable of to by purchase subscriber subscriber price of on securities on securities securities to be to be to be exchanged issued issued1 Net amount To be paid to subscriber FOR THE &%% NOTES OF SERIES B-1967 $ .50 $ .270718 — $ .770718 — .293370 .10 .193370 — 1.335912 1.035912 .30 .332044 .232044 .10 — FOR THE 3%% BONDS OF 1971 $ .086188 $ .270718 $1.284530 3 V2 % certificate C-1963 $1.10 — 1.284530 .70 .193370 21 / 2 % bond 1963 .651382 1.035912 1.284530 .90 3 Ys% certificate D-1963 .232044 1.284530 — .70 3 % bond 1964 3i/2 % certificate C-1963 21 / 2 % bond 1963 31 / 8 % certificate D-1963 3 % bond 1964 31 / 2 % note B-1965 35/8 % note B-1966 3 % bond 1966 33/8% bond 1966 $1.50 1.70 — .90 3 1 4 % certificate C-1963 $ .90 .50 .70 .50 1.00 1.20 ( .50) .40 21/ 2% bond 1963 31/8% certificate D-1963 3 % bond 1964 31/ 2 % note B-1965 3 % % note B-1966 3 % bond 1966 3 3 /8 % bond 1966 FOR THE 3 % % BONDS OF 1974 $1.375691 $1.160221 $1.284530 .695857 1.284530 .280387 — .232044 1.284530 .734255 1.284530 1.118785 FOR THE 4% BONDS OF 1980 $ .861326 $ .270718 $ .309392 .309392 .383978 .193370 .309392 1.426520 1.035912 .232044 .422652 .309392 .309392 1.850829 1.160221 .309392 1.170995 .280387 — .232044 .309392 1.118785 .309392 1.209393 To be collected from sub scriber Extension of maturity Yrs. - Mos. — 3— 3— 3— 3— 6 6 3 0 $ .391160 — .352486 8— 8— 8— 7— 3 3 0 9 — $1.052486 — 9— 8— 8— 8— 0 9 3 0 16 — 16 — 16 — 16 — 14 — 14 — 13 — 6 6 3 0 3 0 6 — — — — — — — $ .577348 — 13 — 3 1 Amounts payable by subscribers are included within parenthesis. The following coupons should be attached to the securities in bearer form when they are surrendered: Securities 31/ 2% certificate C-1963, 2 % % bond 1963 3 Ys% certificate D-1963, 31/ 2% note B-1965, 3 % % bond 1966 3 % bond 1964, 3 % % note B -1966, 3 % bond 1966 Coupons to be attached A ug. 1 5 ,1 9 6 3 May 1 5 ,1 9 6 3 , and subsequent A u g. 1 5 ,1 9 6 3 , and subsequent 4. Paym ent: Payment for the new securities must be completed by March 15, 1963. The new securities will be delivered March 15, 1963. W here the table in the preceding paragraph shows a net amount to be collected from subscribers such amount should accompany the subscription. Where the table shows a net amount payable to subscribers the payment will be made by the Treasury, if bearer securities are surrendered following their acceptance, and if registered securities are surrendered following discharge o f registration in accordance with the assignments on the securities. 5. Limitation on amount of securities to be issued: The amount o f securities to be issued under this offering will be limited to the amount o f the eligible securities tendered in exchange and accepted. 6. Books open for subscriptions for the new securities: The books will be open fo r the receipt of subscriptions from ALL classes of subscribers from Monday, February 25, through Thursday, February 28. In addition, the books will also be open for the receipt o f subscriptions from individuals through Friday, March 8. For this purpose, individuals are defined as natural persons in their own right. Subscriptions placed in the mail by midnight of the respective closing dates, addressed to any Federal Reserve Bank or Branch or the Treasurer, U . S., Washington 25, D. C., will be considered as timely. The use of registered mail is recommended fo r the security holders’ protection in submitting securities to be exchanged. If securities eligible for exchange are pledged with a State or Federal Government Agency or Authority and such securities cannot or will not be released by such authority to the pledgor in time for use in making payment for the securities offered in this exchange, the pledgor may, nevertheless, enter a subscrip tion. Such subscriptions should be accompanied by a letter signed by an authorized official of the pledgor explaining the circumstances and, if the authority will not release the securities, a request and authorization for the Federal Reserve Bank, or Branch, or the Treasurer o f the U . S. (according to where the subscription is directed) to deliver the new securities to the State or Federal Authority in exchange for the old securities held by such authority. 7. Requirements applicable to subscriptions: Subscriptions will be received at the Federal Reserve Banks and Branches and at the Office o f the Treasurer of the United States, Washington 25, D. C. Banking institutions generally may submit subscriptions for account of customers. 8. Denominations and other characteristics of new securities: The notes will be issued in denominations o f $1,000, $5,000, $10,000, $100,000, $1,000,000, $100,000,000 and $500,000,000 in coupon and registered forms. The bonds will be issued in denominations of $500, $1,000, $5,000, $10,000, $100,000 and $1,000,000 in coupon and registered forms. A ll sub scribers requesting registered securities will be required to furnish appropriate identifying numbers as required on tax returns and other documents submitted to the Internal Revenue Service. The notes and bonds will be acceptable to secure deposits o f public moneys. 9. Nonrecognition of gain or loss for Federal income tax purposes: (a) General — The Secretary o f the Treasury has declared pursuant to section 1 0 3 7 (a ) o f the Internal Revenue Code that no gain or loss shall be recognized for Federal income tax purposes solely on account o f the exchange o f the securities; however, section 1031 (b) of the Code requires recognition of any gain realized on the exchange to the extent that money (other than interest) is received by the security holder in connection with the exchange as indicated in ( b ) . (b) Where the securities to be issued are offered by the Treasury with a payment to the investor If the fair market value1 of the securities to be issued plus the amount paid to the investor (dis count) exceeds the cost basis to the investor of the securities to be exchanged, such gain (but not to exceed the amount of the payment) m ust be recognized and accounted for as gain for the taxable year of exchange. He will carry the new securities on his books at the same amount as he is now carrying the old securities except that he will reduce the cost basis by the amount o f the payment and increase it by the amount of the gain recognized. I f the fa ir market value o f the new securities plus the amount of the payment does not exceed the cost basis o f the old securities, the basis in the new securities will be the cost basis in the old securities reduced by the amount o f the payment. (c) Where premium is paid by the subscriber — I f a premium is paid by the subscriber no gain or loss will be recognized; but his tax basis in the new securities will be his cost basis in the old securities increased by the amount o f the premium. (d) Gain to the extent not recognized under (b) (or lo ss), i f any, upon the old securities sur rendered in exchange will be taken into account upon the disposition or redemption o f the new securities. (See appendix to Paragraph 9 attached.) 10. Federal estate tax option on the 3 % % bonds o f 1974 and 4 % bonds: The 3 % % bonds o f 1974 and 4 % bonds o f 1980 will be redeemable at par and accrued interest prior to maturity for the purpose of using the proceeds in payment of Federal estate taxes but only if they are owned by the decedent at the time of his death and thereupon constitute part of his estate. 11. Book value o f new securities to banking institutions: The Comptroller of the Currency, Board of Governors o f the Federal Reserve System, and the Federal Deposit Insurance Corporation have indicated to the Treasury that banks under their supervision may place the new notes and bonds received in exchange on their books at an amount not greater than the amount at which the eligible securities surrendered by them are carried on their books plus the amount o f premium, if any, paid on the new securities, or reduced by the amount of discount, if any, received by the subscriber and increased by the amount of gain, if any, which will be recognized as indicated in paragraph 9. They will so advise their examiners. 12. Computation of reinvestment rate for the extension o f m aturity: A holder of the outstanding eligible securities has the option o f accepting the Treasury’s exchange offer or of holding them to maturity. Consequently, he can compare the interest plus (or minus) any payment, other than the adjustment of accrued interest, he will receive resulting from exchanging now with the total of the interest on the eligible issues and what he m ight obtain by reinvesting the proceeds o f the eligible securities at maturity. The income before tax for making the extension now through exchange will be the coupon rates plus (or minus) any payment on the new issues. I f a holder of the eligible securities does not make the exchange he would receive the coupon rates on the eligible issues to their maturity and would have to reinvest at that time at a rate equal to that indicated in paragraph 13 below fo r the remaining terms of the issues now offered, in order to equal the return (including any payment) he would receive by accepting the exchange offer. For example, if the 3 % bonds of 2 /1 5 /6 4 are exchanged for 3 % % bonds of 1 1 /1 5 /7 1 the investor receives 3 % % interest fo r the entire eight years and eight months plus $.70 (per $100 face value) immediately. I f the exchange is not made, a 3 % rate will be received until February 15, 1964, requiring reinvestment of the proceeds o f the 3 ’s o f 1964 at that time at a rate of at least 4 .1 1 % for the remaining seven years and nine months, all at compound interest, to average out to a 3 % % rate for eight years and eight months plus the $.70 immediate payment. This minimum reinvestment rate fo r the extension period is shown in the table under paragraph 13. The minimum reinvestment rates for the other issues included in the exchange are also shown in the table under paragraph 13. 1 The mean of the bid and asked quotations on date subscriptions are submitted. 13. Investment rates on the new notes and bonds offered in exchange to holders of the eligible securities: Eligible securities 3«/2% C/Is 8/15/63 2'/2% Bonds 8/15/63 354% C/Is 11/15/63 $ .50 $ .10 $ .30 3% Bonds 2/15/64 FOR THE NEW 3%% NOTES OF FEBRUARY 15, 1967 Payments on account o f $100 issue price to subscriber._____________________________________________ $ .10 Approximate investment yield from exchange date ( 3 /1 5 /6 3 ) to maturity of notes offered in exchange based on price of securities eligible for exchange1__________________ ______ 3 .65 % 3 .6 5 % 3 .6 4 % 3.63% Approximate minimum reinvestment rate for the extension period2______________________________ 3.80 3.80 3.84 3.87 $1.10 $ .70 $ .90 $ .70 FOR THE NEW 3%% BONDS OF NOVEMBER 15, 1971 Payments on account of $100 issue price to subscriber._____________________________________________ Approximate investment yield from exchange date ( 3 /1 5 /6 3 ) to maturity of bonds offered in exchange based on price o f securities eligible for exchange1_________________________ 3 .97 % 3 .9 7 % 3 .9 6 % Approximate minimum reinvestment rate for the extension period2______________________________ 4.05 4.06 4.08 4.11 314% Notes 11/15/65 3%% Notes 2/15/66 3% Bonds 8/15/66 3%% Bonds 11/15/66 $1.50 $1.70 — 3.96% FOR THE NEW 3%% BONDS OF NOVEMBER 15, 1974 Payments on account of $100 issue price to subscriber:____________________________________________ Approximate investment yield from exchange date ( 3 /1 5 /6 3 ) to maturity of bonds offered in exchange based on price o f securities eligible for exchange1_________________________ 3.98% Approximate minimum reinvestment rate for the extension period2______________________________ 4.24 Eligible securities 31/2% C/Is 8/15/63 214% Bonds 8/15/63 3 Vs % C/Is 11/15/63 3% Bonds 2/15/64 3'/2% Notes 11/15/65 3 .9 8 % 4.24 3%% Notes 2/15/66 3 .9 7 % 4.33 $ .90 3.97% 4.32 3% Bonds 8/15/66 3%% Bonds 11/15/66 $ .50 — $ .40 FOR THE NEW 4% BONDS OF FEBRUARY 15, 1980 Payments on account o f $100 issue price: By subscriber__________________ To su b scriber__________________ — $ .90 $ .50 $ .70 $ .50 $1.00 — $1.20 _ Approximate investment yield from exchange date ( 3 /1 5 /6 3 ) to maturity of bonds offered in exchange based on price of securities eligible for exchange1 _______________________ 4 .0 4 % 4 .0 4 % 4 .04 % 4 .0 3 % 4 .04 % 4 .0 4 % 4 .0 3 % 4 .03 % Approximate minimum reinvest ment rate for the extension period2 __________________________ 4.09 4.10 4.11 4.12 4.23 4.24 4.30 4.29 1Yield to nontaxable holder or before tax. Based on mean of bid and asked prices (adjusted for payments on account of issue price) at noon on February 19, 1963. 2Rate for nontaxable holder or before tax. For explanation see paragraph 12 above. A P P E N D IX TO P A R A G R A P H 9 OF T H E A D V A N C E R E F U N D IN G A N N O U N C E D B Y TH E T R E A S U R Y ON F E B R U A R Y 20, 1963 Appendix to paragraph 9 — Nonrecognition of gain or loss for Federal income tax purposes. W here a bond is offered by the Treasury with a payment (other than the accrued interest adjustm ent) to the investor. Exam ples: 1. Assum e th a t: (a) The fair market value of the security offered by the Treasury on the date the subscription is submitted is $99.00 (per $100 face value). (b) The payment to the subscriber (discount) on account of $100 issue price is $.50. (c) The cost basis o f the security surrendered by the subscriber is $99.75 (per $100 face value). The sum of the fair market value of the security offered by the Treasury and the payment to the subscriber is $99.00 plus $.50 or $99.50. This is less than the cost basis o f the issue surrendered, therefore, no gain is recognized. The new issue will be entered on the books o f the subscriber at a cost basis of $99.25, the cost basis of the issue surrendered less $.50. The gain or loss between this cost basis and the proceeds o f a subsequent sale or redemption o f the new issue will be a capital gain or loss to all investors, except those to whom the bonds are stock in trade. Under present law, if the combined time that the security surrendered and the new security received in exchange were held exceeds 6 months, the capital gain or loss is long-term, otherwise it is short-term. 2. The assumptions are the same except that the cost basis on the books o f the subscriber, o f the security surrendered is now $99.25 (per $100 face value) instead o f $99.75 in Example 1. The sum of the fair market value o f the new security received in exchange by the subscriber plus the $.50 payment (discount) is again $99.50. This exceeds the cost basis o f the security surrendered by $.25. This excess is a recognized gain reportable for the year in which the exchange takes place. The gain is a capital gain except to those to whom the bonds are stock in trade. Under present law, if the time the security sur rendered was held exceeds 6 months, the capital gain is long-term, otherwise it is short-term. The subscriber will carry the new issue received in exchange at a cost basis equal to the basis o f the issue surrendered ($ 99 .2 5), less the payment ($ .5 0 ), plus the amount of the recognized gain ($ .2 5 ), or ($99.25 minus $.50 plus $.25) $99.00. 3. The assumptions are the same as in Example 1, except that the cost basis on the books o f the subscriber, of the security surrendered is $98.75 (per $100 face value) instead o f $99.75 in Example 1. The sum o f the fair market value o f the new issue received in exchange by the sub scriber plus the $.50 payment (discount) is still $99.50. This exceeds the $98.75 cost basis by more than $.50. However, the amount o f the gain reportable for the year of the exchange is $.50, since the amount o f gain recognized cannot exceed the amount o f the payment. The nature o f the recognized gain and its treatment is the same as in Example 2. In this case, the subscriber will enter the new security received in exchange on his books at the same cost basis as the security surrendered. Treasury Department Washington, D . C. ADVANCE REFUNDING U .S. TREASURY DEPARTMENT During the period of February 25 to 28, 1963* OFFERS TO ISSUE With dates o f Securities Issue 3-5/8% Treasury Notes, Series B-1967 as- 4% Treasury Bonds o f 1980J ,ssues Mar. May Dec. Jan. Maturity 15, 1963 15, 1962 2, 1957 23,1959 Feb. Nov. Nov. Feb. 15, 1967 15,1971 15, 1974 15, 1980 IN EXCHANGE FOR Outstanding Treasury securities as set forth in the following table. EXCHANGES TO BE MADE ON THE BASIS OF Par for par in multiples of $1,000 for the new notes and in multiples of $500 for the new bonds with interest adjustments as of March 15, 19o3, and cash ayments due from (indicated by parentheses) or payable to subscribers per 100 face amount as follows : S S E C U R IT IE S T O B E E X C H A N G E D A N D M A T U R IT Y D A T E S A M O U N T S T O B E P A ID T O OR B Y S U B S C R IB E R ON ACCOUNT OF ACCRUED INTEREST ON A C NET AMOUNT TO 3 /1 5 /6 3 COUNT OF TO BE PAID PURCHASE TO SUB PAYABLE PAYABLE PRICE OF SCRIBE R OR TO SUB BY SUB SECURITIES BY S C R I B E R ON S C R I B E R ON TO BE SECURITIES SECURITIES SUBSCRIBER ISSUED T O BE T O BE ISSUED EXCHANGED FOR 3-5/8% NOTES OF SERIES B-1967 3-1/2% Ctfs., C-1963 2-1/2% Bonds 1963 3-1/8% Ctfs., D-1963 3% Bonds 1964 8/15/63 8/15/63 11/15/63 2/15/64 $0.50 0.10 0.30 0.10 $0.270718 $ 0.193370 1.035912 0.232044 $1.10 0.70 0.90 0.70 $0.270718 $1.284530 $ 0.086188 0.193370 1.284530 (0.391160) 1.035912 1.284530 0.651382 0.232044 1.284530 (0.352486) $1.50 1.70 0.90 $1.160221 $1.284530 $ 1.375691 0.280387 1.284530 0.695857 0.232044 1.284530 (1.052486) 1.118785 1.284530 0.734255 $0.90 0.50 0.70 0.50 1.00 1.20 (0.50) 0.40 $0.270718 $0.309392 $0.861326 0.193370 0.309392 0.383978 1.035912 0.309392 1.426520 0.232044 0.309392 0.422652 1.160221 0.309392 1.850829 0.280387 0.309392 1.170995 0.232044 0.309392 (0.577348) 1.118785 0.309392 1.209393 — — $ 0.770718 0.293370 1.335912 0.332044 FOR 3-7/8% BONDS OF 1971 3-1/2% C tfs .,C 1963 2-1/2% Bonds 1963 3-1/8% Ctfs., D-1963 3% Bonds 1964 8/15/63 8/15/63 11/15/63 2/15/64 FOR 3-7/8% BONDS OF 1974 3-1/2% Notes, B-1965 11/15/65 3-5/8% Notes, B-1966 2/15/66 3% Bonds 1966 8/15/66 3-3/8% Bonds 1966 11/15/66 — FOR 4% BONDS OF 1980 3-1/2% Ctfs., C-1963 8/15/63 2-1/2% Bonds 1963 8/15/63 3-1/8% Ctfs., D-1963 11/15/63 3% Bonds 1964 2/15/64 3-1/2% Notes, B-1965 11/15/65 3-5/8% Notes, B-1966 2/15/66 3% Bonds 1966 8/15/66 3-3/8% Bonds 1966 11/15/66 A LL SUBSCRIPTIONS ACCEPTED WILL BE ALLOTTED IN FU LL. FULL INFORMATION CONCERNING TERMS OF THE EXCHANGE OFFERINGS AND TERMS OF NEW SECURITIES MAY BE OBTAINED FROM MOST COMMERCIAL BANKS, FEDERAL RESERVE BANKS AND BRANCHES, OR THE TREASURER OF THE UNITED STATES, WASHINGTON 25, D.C. *S u b scrip tio n s from A L L c l o s s e s o f s u b s c r ib e r s w ill be r e c e i v e d from M onday, F ebru a ry 2 5 , through T hursday, F e b r u a r y 28, 1963. In addition, s u b sc rip tio n s m ay fee s u b m itted b y in divid uals through F rid a y, March 8, 1963. F o r th is p u rp o se, individuals are d efin ed a s natural p e r s o n s in th eir ow n right. S u b scrip tion s p la c e d in the mail by midnight o f th e r e s p e c t i v e c lo s in g d a tes , a d d ressed *0 <Ut¥ F e d e ra l R e s e r v e B ank or B ranch, or to the T rea su rer o f th e U nited S ta tes, W ashington 2 5 , D . C ., w ill be a c c e p t e d , t h e u se o f r e g is te r e d mail is recom m en ded fo r th e p r o te c tio n o f s e c u r it y h old ers. UNITED STATES OF AMERICA 3 % PERCENT TREASURY NOTES OF SERIES B-1967 Dated and bearing interest from March 15, 1963 Due February 15, 1967 TREASURY DEPARTMENT Office of the Secretary Washington, February 21, 1963 DEPARTMENT CIRCULAR Public Debt Series — No. 4-63 I. OFFERING OF NOTES 1. The Secretary of the Treasury, pursuant to the authority of the Second Liberty Bond Act, as amended, invites subscriptions from the people of the United States for notes of the United States, designated 3 % per cent Treasury Notes of Series B-1967: ( 1 ) at 99.50 percent of their face value in exchange for 3Vz percent Treasury Certificates of Indebted ness of Series C-1963, dated August 15, 1962, due August 15, 1963; ( 2 ) at 99.90 percent of their face value in exchange for 2Vz percent Treasury Bonds of 1963, dated December 15, 1954, due August 15, 1963, in amounts of $1,000 or multiples thereof; ( 3 ) at 99.70 percent of their face value in exchange for 3 Vs percent Treasury Certificates of Indebted ness of Series D-1963, dated November 15, 1962, due November 15, 1963; or ( 4 ) at 99.90 percent of their face value in exchange for 3 percent Treasury Bonds of 1964, dated February 14, 1958, due February 15, 1964, in amounts of $1,000 or multiples thereof. Interest adjustments as of March 15, 1963, and the cash payments due to the subscriber on account of the issue prices of the notes will be made as set forth in Section IV hereof. The amount of the offering under this circular will be limited to the amount of eligible securities tendered in exchange and accepted. The books will be open for the receipt of subscriptions for this issue from all classes of subscribers from February 25 through February 28, 1963, and, in addition, subscriptions may be submitted by individuals through March 8, 1963. For this purpose individuals are defined as natural persons in their own right. 2. In addition to the offering under this circular, holders of the eligible securities are offered the privilege of exchanging all or any part of such securities for 3 % percent Treasury Bonds of 1971 (additional issue), or 4 percent Treasury Bonds of 1980 (additional issue), which offerings are set forth in Department Circulars, Public D ebt Series — Nos. 5-63 and 6-63, respectively, issued simultaneously with this circular. 3. Nonrecognition of gain or loss for Federal income tax purposes. — Pursuant to the provisions of section 1037(a) of the Internal Revenue Code of 1954 as added by Public Law 86-346 (approved September 22, 1959), the Secretary of the Treasury hereby declares that no gain or loss shall be recognized for Federal income tax purposes upon the exchange with the United States of the eligible securities enumerated in paragraph one of this section solely for the 3 % percent Treasury Notes of Series B-1967. Section 103 1 (b ) of the Code, how ever, requires recognition of any gain realized on the exchange to the extent that money is received by the security holder in connection with the exchange. T o the extent not recognized at the time of the exchange, gain or loss, if any, upon the obligations surrendered in exchange will be taken into account upon the disposition or redemption of the new obligations. II. DESCRIPTION OF NOTES 1. The notes will be dated M arch 15, 1963, and will bear interest from that date at the rate of 3 % per cent per annum, payable on a semiannual basis on August 15, 1963, and thereafter on February 15 and August 15 in each year until the principal amount becomes payable. They will mature February 15, 1967, and will not be subject to call for redemption prior to maturity. 2. The income derived from the notes is subject to all taxes imposed under the Internal Revenue Code of 1954. The notes are subject to estate, inheritance, gift or other excise taxes, whether Federal or State, but are exempt from all taxation now or hereafter imposed on the principal or interest thereof by any State, or any of the possessions of the United States, or by any local taxing authority. 3. The notes will be acceptable to secure deposits of public moneys. They will not be acceptable in pay ment of taxes. 4. Bearer notes with interest coupons attached, and notes registered as to principal and interest, will be issued in denominations of $1,000, $5,000, $10,000, $100,000, $1,000,000, $100,000,000 and $500,000,000. Pro vision will be made for the interchange of notes of different denominations and of coupon and registered notes, and for the transfer of registered notes, under rules and regulations prescribed by the Secretary of the Treasury. 5. The notes will be subject to the general regulations of the Treasury Department, now or hereafter prescribed, governing United States notes. III. SUBSCRIPTION AND ALLOTMENT 1. Subscriptions will be received at the Federal Reserve Banks and Branches and at the Office of the Treasurer of the United States, Washington 25, D. C. Banking institutions generally may submit subscriptions for account of customers, but only the Federal Reserve Banks and the Treasury Department are authorized to act as official agencies. 2. 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, i.e., an individual’s social security number or an employer identification number. 3. The Secretary of the Treasury reserves the right to reject or reduce any subscription, and to allot less than the amount of notes applied for; and any action he may take in these respects shall be final. Subject to these reservations, all subscriptions will be allotted in full. Allotment notices will be sent out promptly upon allotment IV. PAYMENT 1. Payment for the face amount of notes allotted hereunder must be made on or before March 15, 1963, or on later allotment, and may be made only in a like face amount of securities of the four issues enumerated in paragraph one of Section I hereof, which should accompany the subscription. Payment will not be deemed to have been completed where registered notes are requested if the appropriate identifying number, as required by paragraph 2 of Section III hereof, has not been furnished; provided, however, if a subscriber has applied for but is unable to furnish the identifying number by the payment date only because it has not been issued, he may elect to receive, pending the furnishing of the identifying number, interim receipts and in this case payment will be deemed to have been completed. 2. 3 ’A percent certificates of indebtedness of Series C-1963. — Coupons dated August 15, 1963, must be attached to the certificates when surrendered. Accrued interest from February 15 to March 15, 1963 ($2.70718 per $1,000), plus the payment ($5.00 per $1,000) due to the subscriber on account of the issue price of the notes will be paid to subscribers following acceptance of the certificates. 3. 2 Vi percent bonds of 1963. — Coupons dated August 15, 1963, must be attached to the bonds in bearer form when surrendered. Accrued interest from February 15 to March 15, 1963 ($1.93370 per $1,000), plus the payment ($1.00 per $1,000) due to the subscriber on account of the issue price of the notes will be paid to subscribers. Payments will be made in the case of bearer bonds following their acceptance and in the case of registered bonds following discharge of registration. In the case of registered bonds, the payment will be made by check drawn in accordance with the assignments on the bonds surrendered, or by credit in any account maintained by a banking institution with the Federal Reserve Bank of its District 4. 3 Vs percent certificates of indebtedness of Series D-1963. — Coupons dated M ay 15 and November 15, 1963, must be attached to the certificates when surrendered. Accrued interest from November 15, 1962, to March 15, 1963 ($10.35912 per $1,000), plus the payment ($3.00 per $1,000) due to the subscriber on account of the issue price of the notes will be paid to subscribers following acceptance of the certificates. 5. 3 percent bonds of 1964. — Coupons dated August 15, 1963, and February 15, 1964, must be attached to the bonds in bearer form when surrendered. Accrued interest from February 15 to March 15, 1963 ($2.32044 per $1,000), plus the payment ($1.00 per $1,000) due to the subscriber on account of the issue price of the notes will be paid to subscribers. Payments will be made in the case o f bearer bonds following their acceptance and in the case of registered bonds following discharge of registration. In the case of registered bonds, payment will be made by check drawn in accordance with the assignments on the bonds surrendered or by credit in any account maintained by a banking institution with the Federal Reserve Bank of its District. V. ASSIGNMENT OF REGISTERED BONDS 1. Treasury bonds in registered form tendered in payment for notes offered hereunder should be assigned by the registered payees or assignees thereof, in accordance with the general regulations of the Treas ury Department governing assignments for transfer or exchange, in one of the forms hereafter set forth, and thereafter should be surrendered with the subscription to a Federal Reserve Bank or Branch or to the Office of the Treasurer of the United States, Washington 25, D. C. The bonds must be delivered at the expense and risk of the holder. If the notes are desired registered in the same name as the bonds surrendered in exchange, the assignment should be to “The Secretary of the Treasury for exchange for 3 % percent Treasury Notes of Series B-1967”; if the notes are desired registered in another name, the assignment should be to “The Secretary of the Treasury for exchange for 3 % per cent Treasury Notes of Series B-1967 in the name of______________ ”; if notes in coupon form are desired, the assignment should be to “The Secretary of the Treasury for exchange for 3 % percent Treasury Notes of Series B-1967 in coupon form to be delivered to__________________________ ”. VI. GENERAL PROVISIONS 1. As fiscal agents of the United States, Federal Reserve Banks are authorized and requested to receive subscriptions, to make allotments on the basis and up to the amounts indicated by the Secretary of the Treasury to the Federal Reserve Banks of the respective Districts, to issue allotment notices, to receive payment for notes allotted, to make delivery of notes on full-paid subscriptions allotted, and they may issue interim receipts pending delivery of the definitive notes. 2. The Secretary of the Treasury may at any time, or from time to time, prescribe supplemental or amendatory rules and regulations governing the offering, which will be communicated promptly to the Federal Reserve Banks. DOUGLAS DILLON, Secretary of the Treasury. UNITED STATES OF AMERICA 3% PERCENT TREASURY BONDS OF 1971 Dated May 15, 1962, with interest from March 15, 1963 Due November 15, 1971 Interest payable May 15 and November 15 ADDITIONAL ISSUE TREASURY DEPARTMENT Office of the Secretary DEPARTMENT CIRCULAR --------Public Debt Series — No. 5-63 Washington, February 21, 1963 1. OFFERING OF BONDS 1. The Secretary o f the Treasury, pursuant to the authority o f the Second Liberty Bond A ct, as amended, invites subscriptions from the people of the United States for bonds of the United States, designated 37/s percent Treasury Bonds of 1971: (1 ) at 98,90 percent of their face value in exchange for 3 / percent Treasury Certificates of Indebt edness of Series C-1963, dated August 15, 1962, due August 15, 1963; (2 ) at 99.30 percent of their face value in exchange for 2 / percent Treasury Bonds of 1963, dated Decem ber 15, 1954, due August 15, 1963; (3 ) at 99.10 percent of their face value in exchange for 3% percent Treasury Certificates of Indebt edness of Series D-1963, dated November 15, 1962, due November 15, 1963; or (4 ) at 99.30 percent of their face value in exchange for 3 percent Treasury Bonds of 1964, dated February 14, 1958, due February 15, 1964. Interest adjustments as o f March 15, 1963, and the cash payments due to the subscriber on account of the issue prices o f the new bonds will be made as set forth in Section I V hereof. T he amount of the offering under this circular will be limited to the amount of eligible securities tendered in exchange and accepted. The books will be open for the receipt of subscriptions for this issue from all classes of subscribers from February 25 through February 28, 1963, and, in addition, subscriptions may be submitted by individuals through March 8, 1963. For this purpose individuals are defined as natural persons in their own right. 2. In addition to the offering under this circular, holders of the eligible securities are offered the privilege o f exchanging all or any part of such securities for 3^4 percent Treasury Notes of Series B-1967, or 4 percent Treasury Bonds o f 1980 (additional issue), which offerings are set forth in Department Circulars, Public D ebt Series — Nos. 4-63 and 6-63, respectively, issued simultaneously with this circular. 3. Nonrecognition of gain or loss for Federal income tax purposes. — Pursuant to the provisions o f sec tion 1037(a) of the Internal Revenue Code of 1954 as added by Public Law 86-346 (approved September 22, 1959), the Secretary of the Treasury hereby declares that no gain or loss shall be recognized for Federal income tax purposes upon the exchange with the United States of the eligible securities enumerated in paragraph one of this section solely for the 37/a percent Treasury Bonds o f 1971. Section 1031(b) of the Code, however, requires recognition of any gain realized on the exchange to the extent that money is received by the security holder in connection with the exchange. T o the extent not recognized at the time of the exchange, gain or loss, if any, upon the obligations surrendered in exchange will be taken into account upon the dis position or redemption of the new obligations. II. DESCRIPTION OF BONDS 1. T he bonds now offered will be an addition to and will form a part of the series o f 37/a percent Treasury Bonds o f 1971 issued pursuant to Department Circulars, Public Debt Series — Nos. 11-62 and 20-62, dated April 30, 1962, and Novem ber 15, 1962, respectively, will be freely interchangeable therewith, and are identical in all respects therewith except that interest on the bonds to be issued under this circular will accrue from March 15, 1963. Subject to the provision for the accrual of interest from March 15, 1963, on the bonds now offered, the bonds are described in the follow ing quotation from Department Circular No. 11-62: “ 1. The bonds w ill be dated M ay 15, 1962, and will bear interest from that date at the rate of 37/a percent per annum, payable semiannually on N ovember 15, 1962, and thereafter on M ay 15 and N ovem ber 15 in each year until the principal amount becomes payable. T hey will mature November 15, 1971, and w ill not be subject to call for redemption prior to maturity. “ 2. The income derived from the bonds is subject to all taxes imposed under the Internal Revenue Code o f 1954. The bonds are subject to estate, inheritance, gift or other excise taxes, whether Federal or State, but are exempt from all taxation now or hereafter imposed on the principal or interest thereof b y any State, or any of the possessions of the United States, or by any local taxing authority. “ 3. T he bonds w ill be acceptable to secure deposits of public moneys. T hey will not be accept able in payment o f taxes. “ 4. Bearer bonds with interest coupons attached, and bonds registered as to principal and interest, will be issued in denominations of $500, $1,000, $5,000, $10,000, $100,000 and $1,000,000. Provision will be made for the interchange o f bonds of different denominations and of coupon and registered bonds, and for the transfer of registered bonds, under rules and regulations prescribed by the Secretary of the Treasury. “ 5. The bonds w ill be subject to the general regulations of the Treasury Department, now or hereafter prescribed, governing United States bonds.” III. SUBSCRIPTION AND ALLOTMENT 1. Subscriptions will be received at the Federal Reserve Banks and Branches and at the Office o f the Treasurer of the United States, W ashington 25, D. C. Banking institutions generally may submit subscrip tions for account of customers, but only the Federal Reserve Banks and the Treasury Department are authorized to act as official agencies. 2. A ll 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, i.e., an individual’s social security number or an employer identification number. 3. The Secretary of the Treasury reserves the right to reject or reduce any subscription, and to allot less than the amount of bonds applied fo r; and any action he may take in these respects shall be final. Subject to these reservations, all subscriptions will be allotted in full. Allotment notices will be sent out promptly upon allotment. IV. PAYMENT 1. Payment for the face amount of bonds allotted hereunder must be made on or before March 15, 1963, or on later allotment, and may be made only in a like face amount of securities of the four issues enumerated in paragraph 1 of Section I hereof, which should accompany the subscription. Payment w ill not be deemed to have been completed where registered bonds are requested if the appropriate identifying number, as required b y paragraph 2 o f Section III hereof, has not been furnished; provided, however, if a subscriber has applied for but is unable to furnish the identifying number by the payment date only because it has not been issued, he may elect to receive, pending the furnishing of the identifying number, interim receipts and in this case payment will be deemed to have been completed. 2. 3Vi percent certificates of indebtedness of Series C-1963.— Coupons dated August 15, 1963, must be attached to the certificates when surrendered. Accrued interest from February 15 to March 15, 1963 ($2.70718 per $1,000) on the certificates plus the payment ($11.00 per $1,000) due to the subscriber on account of the issue price o f the bonds w ill be credited, accrued interest from November 15, 1962, to M arch 15, 1963 ($12.84530 per $1,000) on the bonds to be issued will be charged, and the difference ($0.86188 per $1,000) will be paid to subscribers follow ing acceptance of the certificates. 3. 2 Vi percent bonds of 1963. — Coupons dated August 15, 1963, must be attached to the bonds when surrendered. Accrued interest from February 15 to March 15, 1963 ($1.93370 per $1,000) on the 2 percent bonds plus the payment ($7.00 per $1,000) due to the subscriber on account of the issue price o f the new bonds will be credited, accrued interest from November 15, 1962, to March 15, 1963 ($12.84530 per $1,000) on the bonds to be issued will be charged, and the difference ($3.91160 per $1,000) must be paid b y subscribers and should accompany the subscription. 4. 3Vs percent certificates of indebtedness of Series D -1963.— Coupons dated M ay 15 and November 15, 1963, must be attached to the certificates when surrendered. Accrued interest from November 15, 1962, to March 15, 1963 ($10.35912 per $1,000) on the certificates plus the payment ($9.00 per $1,000) due to the subscriber on account of the issue price of the bonds will be credited, accrued interest from November 15, 1962, to March 15, 1963 ($12.84530 per $1,000) on the bonds to be issued will be charged, and the difference ($6.51382 per $1,000) will be paid to subscribers follow ing acceptance o f the certificates. 5. 3 percent bonds of 1964.— Coupons dated August 15, 1963, and February 15, 1964, must be attached to the bonds when surrendered. Accrued interest from February 15 to March 15, 1963 ($2.32044 per $1,000) on the 3 percent bonds plus the payment ($7.00 per $1,000) due to the subscriber on account of the issue price of the new bonds will be credited, accrued interest from N ovember 15, 1962, to March 15, 1963 ($12.84530 per $1,000) on the bonds to be issued will be charged, and the difference ($3.52486 per $1,000) must be paid by subscribers and should accompany the subscription. V. ASSIGNMENT OF REGISTERED BONDS 1. Treasury bonds in registered form tendered in payment for bonds offered hereunder should be assigned by the registered payees or assignees thereof, in accordance with the general regulations of the Treasury Department governing assignments for transfer or exchange, in one of the forms hereafter set forth, and thereafter should be surrendered with the subscription to a Federal Reserve Bank or Branch or to the Office of the Treasurer of the United States, W ashington 25, D. C. The bonds must be delivered at the expense and risk of the holder. If the new bonds are desired registered in the same name as the bonds surrendered, the assignment should be to “ The Secretary of the Treasury for exchange for 3% percent Treasury Bonds of 1971” ; if the new bonds are desired registered in another name, the assignment should be to “ The Secretary of the Treasury for exchange for 3% percent Treasury Bonds of 1971 in the name o f _______________________________ ” ; if new bonds in coupon form are desired, the assignment should be to “ The Secretary o f the Treasury for exchange for Zy% percent Treasury Bonds of 1971 in coupon form to be delivered to_______________________________ ” . VI. GENERAL PROVISIONS 1. A s fiscal agents of the United States, Federal Reserve Banks are authorized and requested to receive subscriptions, to make allotments on the basis and up to the amounts indicated b y the Secretary o f the Treasury to the Federal Reserve Banks of the respective Districts, to issue allotment notices, to receive payment for bonds allotted, to make delivery of bonds on full-paid subscriptions allotted, and they may issue interim receipts pending delivery of the definitive bonds. 2. The Secretary of the Treasury may at any time, or from time to time, prescribe supplemental or amendatory rules and regulations governing the offering, which will be communicated prom ptly to the Federal Reserve Banks. DOUGLAS DILLON, Secretary of the Treasury. UNITED STATES OF AMERICA 4 PERCENT TREASURY BONDS OF 1980 Dated January 23, 1959, with interest from March 15, 1963 Due February 15, 1980 Interest payable February 15 and August 15 ADDITIONAL ISSUE TREASURY DEPARTMENT Office of the Secretary Washington, February 21, 1963 DEPARTMENT CIRCULAR ---------Public Debt Series — No. 6-63 I. OFFERING OF BONDS 1. The Secretary of the Treasury, pursuant to the authority of the Second Liberty Bond Act, as amended, invites subscriptions from the people of the United States for bonds of the United States, designated 4 percent Treasury Bonds of 1980: ( 1 ) at 99.10 percent of their face value in exchange for 3 Vi percent Treasury Certificates of Indebtedness of Series C-1963, dated August 15, 1962, due August 15, 1963; ( 2 ) at 99.50 percent of their face value in exchange for 2 V2 percent Treasury Bonds of 1963, dated December 15, 1954, due August 15, 1963; ( 3 ) at 99.30 percent of their face value in exchange for 3 Vs percent Treasury Certificates of Indebted ness of Series D-1963, dated November 15, 1962, due November 15, 1963; ( 4 ) at 99.50 percent of their face value in exchange for 3 percent Treasury Bonds of 1964, dated Feb ruary 14, 1958, due February 15, 1964; (5 ) at 99.00 percent of their face value in exchange for 3 Vi percent Treasury Notes of Series B-1965, dated November 15, 1962, due November 15, 1965; ( 6 ) at 98.80 percent of their face value in exchange for 3 s/s percent Treasury Notes of Series B-1966, dated M ay 15, 1962, due February 15, 1966; ( 7 ) at 100.50 percent of their face value in exchange for 3 percent Treasury Bonds of 1966, dated Feb ruary 28, 1958, due August 15, 1966; or ( 8 ) at 99.60 percent of their face value in exchange for 3 3/s percent Treasury Bonds of 1966, dated March 15, 1961, due November 15, 1966. Interest adjustments as of March 15, 1963, and the cash payments due to or from the subscriber on account of the issue prices of the new bonds will be made as set forth in Section IV hereof. The amount of the offering under this circular will be limited to the amount of eligible securities tendered in exchange and accepted. The books will be open for the receipt of subscriptions for this issue from all classes of subscribers from February 25 through February 28, 1963, and, in addition, subscriptions may be submitted by individuals through March 8, 1963. For this purpose individuals are defined as natural persons in their own right. 2. In addition to the offering under this circular, (a ) holders of the first four issues of securities enumerated in paragraph 1 are offered the privilege of ex changing all or any part of such securities for 3 5/s percent Treasury Notes of Series B-1967, or 3 7/s percent Treasury Bonds of 1971 (additional issue), which offerings are set forth in Department Cir culars, Public Debt Series — Nos. 4-63 and 5-63, respectively, and (b ) holders of the last four issues of securities enumerated in paragraph 1 are offered the privilege of exchanging all or any part of such securities for 3 % percent Treasury Bonds of 1974 (additional issue), which offering is set forth in Department Circular, Public Debt Series — No. 7-63. These three circulars are being issued simultaneously with this circular. 3. Nonrecognition of gain or loss for Federal income tax purposes. — Pursuant to the provisions of section 1037(a) of the Internal Revenue Code of 1954 as added by Public Law 86-346 (approved September 22, 1959), the Secretary of the Treasury hereby declares that no gain or loss shall be recognized for Federal income tax pur poses upon the exchange with the United States of the eligible securities enumerated in paragraph one of this section solely for the 4 percent Treasury Bonds of 1980. Section 1031(b) of the Code, however, requires recognition of any gain realized on the exchange to the extent that money is received by the security holder in connection with the exchange. T o the extent not recognized at the time of the exchange, gain or loss, if any, upon the obligations surrendered in exchange will be taken into account upon the disposition or redemption of the new obligations. !!. DESCRIPTION OF BONDS 1. The bonds now offered will be an addition to and will form a part of the series of 4 percent Treasury Bonds o f 1980 issued pursuant to Department Circulars No. 1020, and Public Debt Series — Nos. 5-62 and 21-62, dated Jan uary 12, 1959, February 19, 1962, and November 15, 1962, respectively, will be freely interchangeable therewith, and are identical in all respects therewith except that interest on the bonds to be issued under this circular will accrue from March 15, 1963. Subject to the provision for the accrual of interest from March 15, 1963, on the bonds now offered, the bonds are described in the following quotation from Department Circular No. 1020: “ 1. The bonds will be dated January 23, 1959, and will bear interest from that date at the rate of 4 percent per annum, payable on a semiannual basis on August 15, 1959, and thereafter on February 15 and August 15 in each year until the principal amount becomes payable. They will mature February 15, 1980, and will not be subject to call for redemption prior to maturity. “2. The income derived from the bonds is subject to all taxes imposed under the Internal Revenue Code of 1954. The bonds are subject to estate, inheritance, gift or other excise taxes, whether Federal or State, but are exempt from all taxation now or hereafter imposed on the principal or interest thereof by any state, or any of the possessions of the United States, or by any local taxing authority. “3. The bonds will be acceptable to secure deposits of public moneys. “4. Bearer bonds with interest coupons attached, and bonds registered as to principal and interest, will be issued in denominations of $500, $1,000, $5,000, $10,000, $100,000 and $1,000,000. Provision will be made for the interchange of bonds of different denominations and of coupon and registered bonds, and for the transfer of registered bonds, under rules and regulations prescribed by the Secretary of the Treasury. “5. Any bonds issued hereunder which upon the death of the owner constitute part of his estate, will be redeemed at the option of the duly constituted representatives of the deceased owner’s estate, at par and accrued interest to date of payment,1 provided: ( a ) that the bonds were actually owned by the decedent at the time of his death; and ( b ) that the Secretary of the Treasury be authorized to apply the entire proceeds of redemption to the payment of Federal estate taxes. Registered bonds submitted for redemption hereunder must be duly assigned to ‘The Secretary of the Treasury for redemption, the proceeds to be paid to the District Director of Internal Revenue at______ ------------------------- for credit on Federal estate taxes due from estate o f_______________________’ Owing to the periodic closing of the transfer books and the impossibility of stopping payment of interest to the regis tered owner during the closed period, registered bonds received after the closing of the books for payment during such closed period will be paid only at par with a deduction of interest from the date of payment to the next interest payment date;2 bonds received during the closed period for payment at a date after the books reopen will be paid at par plus accrued interest from the reopening of the books to the date of payment. In either case checks for the full six months’ interest due on the last day of the closed period will be forwarded to the owner in due course. All bonds submitted must be accompanied by Form PD 1782,3 properly completed, signed and certified, and by proof of the representatives’ authority in the form of a court certificate or a certified copy of the representatives’ letters of appointment issued by the court. The certificate, or the certification to the letters, must be under the seal of the court, and except in the case of a corporate representative, must contain a statement that the appointment is in full force and be dated within six months prior to the submission of the bonds, unless the certificate or letters show that the appointment was made within one year immediately prior to such submission. Upon payment of the bonds appropriate memorandum receipt will be forwarded to the representatives, which will be followed in due course by formal receipt from the District Director of Internal Revenue. “6. The bonds will be subject to the general regulations of the Treasury Department, now or here after prescribed, governing United States bonds.” III. SUBSCRIPTION AND ALLOTMENT 1. Subscriptions will be received at the Federal Reserve Banks and Branches and at the Office of the Trea surer of the United States, Washington 25, D. C. Banking institutions generally may submit subscriptions for account of customers, but only the Federal Reserve Banks and the Treasury Department are authorized to act as official agencies. 1 An exact half-year’s interest is computed for each full half-year period irrespective of the actual number of days in the half year. For a fractional part of any half year, computation is on the basis of the actual number of days in such half year. 2 The transfer books are closed from January 16 to February IS, and from July 16 to August 15 (both dates inclusive) in each year. 3 Copies of Form PD 1782 may be obtained from any Federal Reserve Bank or from the Treasury Department, Washington 25, D. C. 2. 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, i.e., an individual’s social security number or an employer identification number. 3. The Secretary of the Treasury reserves the right to reject or reduce any subscription, and to allot less than the amount of bonds applied for; and any action he may take in these respects shall be final. Subject to these reservations, all subscriptions will be allotted in full. Allotment notices will be sent out promptly upon allotment. IV. PAYMENT 1. Payment for the face amount of bonds allotted hereunder must be made on or before March 15, 1963, or on later allotment, and may be made only in a like face amount of securities of the eight issues enumerated in paragraph 1 of Section I hereof, which should accompany the subscription. Payment will not be deemed to have been completed where registered bonds are requested if the appropriate identifying number, as required by paragraph 2 of Section III hereof, has not been furnished; provided, however, if a subscriber has applied for but is unable to furnish the identifying number by the payment date only because it has not been issued, he may elect to receive, pending the furnishing of the identifying number, interim receipts and in this case payment will be deemed to have been completed. 2. 3 Vs percent certificates of indebtedness of Series C-1963. — Coupons dated August 15, 1963, must be attached to the certificates when surrendered. Accrued interest from February 15 to March 15, 1963 ($2.70718 per $1,000) on the certificates plus the payment ($9.00 per $1,000) due to the subscriber on account of the issue price of the bonds will be credited, accrued interest from February 15 to March 15, 1963 ($3.09392 per $1,000) on the bonds to be issued will be charged, and the difference ($8.61326 per $1,000) will be paid to subscribers following acceptance of the certificates. 3. IV i percent bonds of 1963. — Coupons dated August 15, 1963, must be attached to the bonds in bearer form when surrendered. Accrued interest from February 15 to March 15, 1963 ($1.93370 per $1,000) on the 2 xh per cent bonds plus the payment ($5.00 per $1,000) due to the subscriber on account of the issue price of the new bonds will be credited, accrued interest from February 15 to March 15, 1963 ($3.09392 per $1,000) on the bonds to be issued will be charged, and the difference ($3.83978 per $1,000) will be paid to subscribers. Payments will be made in the case of bearer bonds following their acceptance and in the case of registered bonds following discharge of registration. In the case of registered bonds, the payment will be made by check drawn in accordance with the assignments on the bonds surrendered, or by credit in any account maintained by a banking institution with the Federal Reserve Bank of its District. 4. 3 Vs percent certificates of indebtedness of Series D-1963.— Coupons dated M ay 15 and November 15, 1963, must be attached to the certificates when surrendered. Accrued interest from November 15, 1962, to March 15, 1963 ($10.35912 per $1,000) on the certificates plus the payment ($7.00 per $1,000) due to the subscriber on account of the issue price of the bonds will be credited, accrued interest from February 15 to March 15, 1963 ($3.09392 per $1,000) on the bonds to be issued will be charged, and the difference ($14.26520 per $1,000) will be paid to subscribers following acceptance of the certificates. 5. 3 percent bonds of 1964. — Coupons dated August 15, 1963, and February 15, 1964, must be attached to the bonds in bearer form when surrendered. Accrued interest from February 15 to March 15, 1963 ($2.32044 per $1,000) on the 3 percent bonds plus the payment ($5.00 per $1,000) due to the subscriber on account of the issue price of the new bonds will be credited, accrued interest from February 15 to March 15, 1963 ($3.09392 per $1,000) on the bonds to be issued will be charged, and the difference ($4.22652 per $1,000) will be paid to subscribers. Pay ments will be made in the case of bearer bonds following their acceptance and in the case of registered bonds following discharge of registration. In the case of registered bonds, the payment will be made by check drawn in accordance with the assignments on the bonds surrendered, or by credit in any account maintained by a banking institution with the Federal Reserve Bank of its District. 6. 3'A per cent notes of Series B-1965. — Coupons dated M ay 15, 1963, and all subsequent coupons, must be attached to the notes in bearer form when surrendered. Accrued interest from November 15, 1962, to March 15, 1963 ($11.60221 per $1,000) on the notes plus the payment ($10.00 per $1,000) due to the subscriber on account of the issue price of the bonds will be credited, accrued interest from February 15 to March 15, 1963 ($3.09392 per $1,000) on the bonds to be issued will be charged, and the difference ($18.50829 per $1,000) will be paid to subscribers. Pay ments will be made in the case of bearer notes following their acceptance and in the case of registered notes following discharge of registration. In the case of registered notes, the payment will be made by check drawn in accordance with the assignments on the notes surrendered, or by credit in any account maintained by a banking institution with the Federal Reserve Bank of its District.7 7. 3 5/s percent notes of Series B-1966. — Coupons dated August 15, 1963, and all subsequent coupons, must be attached to the notes in bearer form when surrendered. Accrued interest from February 15 to March 15, 1963 ($2.80387 per $1,000) on the notes plus the payment ($12.00 per $1,000) due to the subscriber on account of the issue price of the bonds will be credited, accrued interest from February 15 to March 15, 1963 ($3.09392 per $1,000) on the bonds to be issued will be charged, and the difference ($11.70995 per $1,000) will be paid to subscribers. Pay ments will be made in the case of bearer notes following their acceptance and in the case of registered notes following discharge of registration. In the case of registered notes, the payment will be made by check drawn in accordance with the assignments on the notes surrendered, or by credit in any account maintained by a banking institution with the Federal Reserve Bank of its District. 8. 3 percent bonds of 1966. — Coupons dated August 15, 1963, and all subsequent coupons, must be attached to the bonds in bearer form when surrendered. Accrued interest from February 15 to March 15, 1963 ($2.32044 per $1,000) on the 3 percent bonds will be credited, accrued interest from February 15 to March 15, 1963 ($3.09392 per $1,000) on the bonds to be issued plus the payment ($5.00 per $1,000) due the United States on account of the issue price of the new bonds will be charged, and the difference ($5.77348 per $1,000) must be paid by subscribers and should accompany the subscription. 9. 3 % percent bonds of 1966. — Coupons dated M ay 15, 1963, and all subsequent coupons, must be attached to the bonds in bearer form when surrendered. Accrued interest from November 15, 1962, to March 15, 1963 ($11.18785 per $1,000) on the 3 % percent bonds plus the payment ($4.00 per $1,000) due to the subscriber on account of the issue price of the new bonds will be credited, accrued interest from February 15 to March 15, 1963 ($3.09392 per $1,000) on the bonds to be issued will be charged, and the difference ($12.09393 per $1,000) will be paid to subscribers. Payments will be made in the case of bearer bonds following their acceptance and in the case of registered bonds fol lowing discharge of registration. In the case of registered bonds, the payment will be made by check drawn in accord ance with the assignments on the bonds surrendered, or by credit in any account maintained by a banking institution with the Federal Reserve Bank of its District. V. ASSIGNMENT OF REGISTERED SECURITIES 1. Treasury notes and bonds in registered form tendered in payment for bonds offered hereunder should be assigned by the registered payees or assignees thereof, in accordance with the general regulations of the Treasury Department governing assignments for transfer or exchange, in one of the forms hereafter set forth, and thereafter should be surrendered to a Federal Reserve Bank or Branch or to the Office of the Treasurer of the United States, Washington 25, D. C. The securities must be delivered at the expense and risk of the holder. If the new bonds are desired registered in the same name as the securities surrendered in exchange, the assignment should be to “The Secretary of the Treasury for exchange for 4 percent Treasury Bonds of 1980” ; if the new bonds are desired regis tered in another name, the assignment should be to “The Secretary of the Treasury for exchange for 4 percent Treasury Bonds of 1980 in the name of________________ if new bonds in coupon form are desired, the assignment should be to “The Secretary of the Treasury for exchange for 4 percent Treasury Bonds of 1980 in coupon form to be delivered to_______________________________ ”. VI. GENERAL PROVISIONS 1. As fiscal agents of the United States, Federal Reserve Banks are authorized and requested to receive subscrip tions, to make allotments on the basis and up to the amounts indicated by the Secretary of the Treasury to the Federal Reserve Banks of the respective Districts, to issue allotment notices, to receive payment for bonds allotted, to make delivery of bonds on full-paid subscriptions allotted, and they may issue interim receipts pending delivery of the definitive bonds. 2. The Secretary of the Treasury may at any time, or from time to time, prescribe supplemental or amendatory rules and regulations governing the offering, which will be communicated promptly to the Federal Reserve Banks. DOUGLAS DILLON, Secretary of the Treasury. UNITED STATES OF AMERICA 3% PERCENT TREASURY BONDS OF 1974 Dated December 2, 1957, with interest from March 15, 1963 Due November 15, 1974 Interest payable May 15 and November 15 ADDITIONAL ISSUE TREASU RY DEPARTM ENT Office of the Secretary Washington, February 21, 1963 DEPARTMENT CIRCULAR Public Debt Series — No. 7-63 I. OFFERING OF BONDS 1. The Secretary of the Treasury, pursuant to the authority of the Second Liberty Bond Act, as amended, invites subscriptions from the people of the United States for bonds of the United States, designated 37/g percent Treasury Bonds of 1974: (1) at 98.50 percent of their face value in exchange for 3 y2 percent Treasury Notes of Series B-1965, dated November 15, 1962, due November 15, 1965; (2) at 98.30 percent of their face value in exchange for 3*/% percent Treasury Notes of Series B-1966, dated M ay 15, 1962, due February 15, 1966; (3) at par in exchange for 3 percent Treasury Bonds of 1966, dated February 28, 1958, due August 15, 1966; or (4) at 99.10 percent of their face value in exchange for 3Y& percent Treasury Bonds of 1966, dated March 15, 1961, due Novem ber 15, 1966. Interest adjustments as of March 15,1963, and the cash payments due to the subscriber on account of the issue prices of the new bonds will be made as set forth in Section I V hereof. The amount of the offering under this circular will be limited to the amount of eligible securities tendered in exchange and accepted. The books will be open for the receipt of subscriptions for this issue from all classes of subscribers from February 25 through February 28, 1963, and, in addition, subscriptions may be submitted by individuals through March 8, 1963. For this purpose individuals are defined as natural persons in their own right. 2. In addition to the offering under this circular, holders of the eligible securities are offered the privilege of exchanging all or any part of such securities for 4 percent Treasury Bonds of 1980 (additional issue), which offering is set forth in Department Circular, Public Debt Series — No. 6-63, issued simultaneously with this circular. 3. Nonrecognition of gain or loss for Federal income tax purposes. — Pursuant to the provisions of section 1037(a) of the Internal Revenue Code of 1954 as added by Public Law 86-346 (approved September 22, 1959), the Secretary of the Treasury hereby declares that no gain or loss shall be recognized for Federal income tax purposes upon the exchange with the United States of the eligible securities enumerated in paragraph one of this section solely for the 3y% percent Treasury Bonds of 1974. Section 1031(b) of the Code, however, requires recognition of any gain realized on the exchange to the extent that m oney is received by the security holder in connection with the exchange. T o the extent not recognized at the time of the exchange, gain or loss, if any, upon the obligations surrendered in exchange will be taken into account upon the disposition or redemption of the new obligations. II. DESCRIPTION OF BONDS 1. The bonds now offered will be an addition to and will form a part o f the series of 3% percent Treasury Bonds of 1974 issued pursuant to Department Circulars Nos. 1000 and 1071, dated November 20,1957, and November 6, 1961, respectively, will be freely interchangeable therewith, and are identical in all respects therewith except that interest on the bonds to be issued under this circular will accrue from March 15, 1963. Subject to the provision for the accrual of interest from March 15, 1963, on the bonds now offered, the bonds are described in the following quotation from Department Circular No. 1000: “ 1. The bonds will be dated December 2, 1957, and will bear interest from that date at the rate of 37/g percent per annum, payable on a semi-annual basis on M ay 15 and November 15, 1958, and thereafter on M ay 15 and November 15 in each year until the principal amount becomes payable. They will mature Novem ber 15, 1974, and will not be subject to call for redemption prior to maturity. “ 2. The income derived from the bonds is subject to all taxes imposed under the Internal Revenue Code of 1954. The bonds are subject to estate, inheritance, gift or other excise taxes, whether Federal or State, but are exempt from all taxation now or hereafter imposed on the principal or interest thereof by any State, or any of the possessions of the United States, or by any local taxing authority. “ 3. The bonds will be acceptable to secure deposits of public moneys. “ 4. Bearer bonds with interest coupons attached, and bonds registered as to principal and interest, will be issued in denominations of $500, $1,000, $5,000, $10,000, $100,000 and $1,000,000. Provision will be made for the interchange of bonds of different denominations and of coupon and registered bonds, and for the transfer of registered bonds, under rules and regulations prescribed by the Secretary of the Treasury. “ 5. A n y bonds issued hereunder which upon the death of the owner constitute part of his estate, will be redeemed at the option of the duly constituted representatives of the deceased owner’s estate, at par and accrued interest to date of payment,1 provided: (a ) that the bonds were actually owned by the decedent at the time of his death; and (b ) that the Secretary of the Treasury be authorized to apply the entire proceeds of redemption to the payment of Federal estate taxes. Registered bonds submitted for redemption hereunder must be duly assigned to ‘The Secretary of the Treasury for redemption, the proceeds to be paid to the District Director of Internal Revenue at ------------------------------------------for credit on Federal estate taxes due from estate of_________________________ ’. O w ing to the periodic closing of the transfer books and the impossibility of stopping payment of interest to the registered owner during the closed period, registered bonds received after the closing of the books for payment during such closed period will be paid only at par with a deduction of interest from the date of payment to the next interest payment date;2 bonds received during the closed period for payment at a date after the books reopen will be paid at par plus accrued interest from the reopening of the books to the date of payment. In either case checks for the full six months’ interest due on the last day of the closed period will be forwarded to the owner in due course. All bonds submitted must be accompanied by Form P D 1782,3 properly completed, signed and certified, and by proof of the representatives’ authority in the form of a court certificate or a certified copy of the representatives’ letters of appointment issued by the court. The certificate, or the certification to the letters, must be under the seal of the court, and except in the case of a corporate representative, must contain a statement that the appointment is in full force and be dated within six months prior to the submission of the bonds, unless the certificate or letters show that the appointment was made within one year immediately prior to such submission. Upon payment of the bonds appropriate memorandum receipt will be forwarded to the representatives, which will be followed in due course by formal receipt from the District Director of Internal Revenue. “ 6. The bonds will be subject to the general regulations of the Treasury Department, now or here after prescribed, governing United States bonds.” III. SUBSCRIPTION AND ALLOTMENT 1. Subscriptions will be received at the Federal Reserve Banks and Branches and at the Office of the Treasurer of the United States, W ashington 25, D. C. Banking institutions generally may submit subscriptions for account of customers, but only the Federal Reserve Banks and the Treasury Department are authorized to act as official agencies. 2. A ll 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, i.e., an individual’s social security number or an employer identification number. 3. The Secretary of the Treasury reserves the right to reject or reduce any subscription, and to allot less than the amount of bonds applied fo r ; and any action he may take in these respects shall be final. Subject to these reser vations, all subscriptions will be allotted in full. Allotment notices will be sent out promptly upon allotment. IV. PAYMENT 1. Payment for the face amount of bonds allotted hereunder must be made on or before March 15, 1963, or on later allotment, and may be made only in a like face amount of securities of the four issues enumerated in para graph 1 of Section I hereof, which should accompany the subscription. Payment will not be deemed to have been completed where registered bonds are requested if the appropriate identifying number, as required by paragraph 2 of Section III hereof, has not been furnished; provided, however, if a subscriber has applied for but is unable to furnish the identifying number by the payment date only because it has not been issued, he may elect to receive, pending the furnishing of the identifying number, interim receipts and in this case payment will be deemed to have been completed. 2. 3'A percent notes of Series B-1965. — Coupons dated M ay 15, 1963, and all subsequent coupons, must be attached to the notes in bearer form when surrendered. Accrued interest from November 15, 1962, to March 15, 1963 ($11.60221 per $1,000) plus the payment ($15.00 per $1,000) due to the subscriber on account of the issue price of the bonds will be credited, accrued interest from November 15, 1962, to March 15, 1963 ($12.84530 per $1,000) on the bonds to be issued will be charged, and the difference ($13.75691 per $1,000) will be paid to sub1 An exact half-year’s interest is computed for each full half-year period irrespective of the actual number of days in the half year. For a fractional part of any half year, computation is on the basis of the actual number of days in such half year. 2 The transfer books are closed from April 16 to May IS and from October 16 to November 15 (both dates inclusive) in each year. 3 Copies of Form PD 1782 may be obtained from any Federal Reserve Bank or from the Treasury Department, Washington, D. C. scribers. Payments will be made in the case of bearer notes follow ing their acceptance and in the case of registered notes follow ing discharge of registration. In the case of registered notes, the payment will be made by check drawn in accordance with the assignments on the notes surrendered, or by credit in any account maintained by a banking institution with the Federal Reserve Bank of its District. 3. 3% percent notes of Series B-1966. — Coupons dated August 15, 1963, and all subsequent coupons, must be attached to the notes in bearer form when surrendered. Accrued interest from February 15 to March 15, 1963 ($2.80387 per $1,000) plus the payment ($17.00 per $1,000) due to the subscriber on account of the issue price of the bonds will be credited, accrued interest from November 15, 1962, to March 15, 1963 ($12.84530 per $1,000) on the bonds to be issued will be charged, and the difference ($6.95857 per $1,000) will be paid to subscribers. Pay ments will be made in the case of bearer notes follow ing their acceptance and in the case of registered notes follow ing discharge of registration. In the case of registered notes, the payment will be made by check drawn in accordance with the assignments on the notes surrendered, or by credit in any account maintained by a banking institution with the Federal Reserve Bank of its District. 4. 3 percent bonds of 1966. — Coupons dated August 15, 1963, and all subsequent coupons must be attached to the bonds in bearer form when surrendered. Accrued interest from February 15 to March 15, 1963 ($2.32044 per $1,000) will be credited, accrued interest from November 15, 1962, to March 15, 1963 ($12.84530 per $1,000) on the bonds to be issued will be charged, and the difference ($10.52486 per $1,000) must be paid by subscribers and should accom pany the subscription. 5. 3% percent bonds of 1966. — Coupons dated M ay 15,1963, and all subsequent coupons, must be attached to the bonds in bearer form when surrendered. Accrued interest from November 15,1962, to March 15,1963 ($11.18785 per $1,000) plus the payment ($9.00 per $1,000) due to the subscriber on account of the issue price of the new bonds will be credited, accrued interest from November 15, 1962, to March 15, 1963 ($12.84530 per $1,000) on the bonds to be issued will be charged and the difference ($7.34255 per $1,000) will be paid to subscribers. Payments will be made in the case of bearer bonds follow ing their acceptance and in the case of registered bonds following discharge of registration. In the case of registered bonds, the payment will be made by check drawn in accordance with the assignments on the bonds surrendered, or b y credit in any account maintained by a banking institution with the Federal Reserve Bank of its District. V. ASSIGNMENT OF REGISTERED SECURITIES 1. Treasury notes and bonds in registered form tendered in payment for bonds offered hereunder should be assigned by the registered payees or assignees thereof, in accordance with the general regulations of the Treasury Department governing assignments for transfer or exchange, in one of the forms hereafter set forth, and thereafter should be surrendered with the subscription to a Federal Reserve Bank or Branch or to the Office of the Treasurer of the United States, W ashington 25, D. C. The securities must be delivered at the expense and risk of the holder. If the new bonds are desired registered in the same name as the securities surrendered, the assignment should be to “ The Secretary of the Treasury for exchange for 37/% percent Treasury Bonds of 1974” ; if the new bonds are desired registered in another name, the assignment should be to “ The Secretary of the Treasury for exchange for 37/% percent Treasury Bonds of 1974 in the name of_____________________ if new bonds in coupon form are desired, the assignment should be to “ The Secretary of the Treasury for exchange for 37/% percent Treasury Bonds of 1974 in coupon form to be delivered to_______________________ ” . VI. GENERAL PROVISIONS 1. A s fiscal agents of the United States, Federal Reserve Banks are authorized and requested to receive sub scriptions, to make allotments on the basis and up to the amounts indicated by the Secretary of the Treasury to the Federal Reserve Banks of the respective Districts, to issue allotment notices, to receive payment for bonds allotted, to make delivery of bonds on full-paid subscriptions allotted, and they may issue interim receipts pend ing delivery of the definitive bonds. 2. The Secretary of the Treasury may at any time, or from time to time, prescribe supplemental or amenda tory rules and regulations governing the offering, which will be communicated promptly to the Federal Reserve Banks. D O U G L A S D IL L O N , Secretary of the Treasury.
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