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Dallas, Texas, February 2, 1961


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, which supplements the information contained in our circular letter dated January 30, 1961:
“The Treasury will borrow $6.9 billion, or thereabouts, on February 15, 1961, for the purpose
of paying off in cash $6.9 billion of 4 % percent Treasury certificates of indebtedness maturing
February 15, 1961. The $6.9 billion to be borrowed will be obtained from the issue of:
$6.9 billion, or thereabouts, of 18-month 3 Va percent Treasury notes, at par, to be dated
February 15, 1961, and to mature August 15, 1962, interest to be payable semiannually
on February 15 and August 15.
“Subscriptions to the new Treasury notes will be received subject to allotment. Payment for
the securities may be made in cash, or Treasury Certificates of Indebtedness of Series A-1961,
maturing February 15, 1961, 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 for the 3 Va percent Treasury notes only on Monday,
February 6.
“Any subscriptions for the Treasury notes 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 6, 1961, will be considered timely.
“The new issue may not be paid for by credit in Treasury Tax and Loan accounts.
“Other details concerning the new 3V a percent Treasury notes are as follows:
“Subscriptions to the 3V a percent notes from commercial banks, for their own account, will
be restricted in each case to an amount not exceeding 50 percent of the combined capital, surplus
and undivided profits of the subscribing bank.
“Subscriptions to the 3V a percent notes from commercial and other banks for their own
account, Federally-insured savings and loan associations, States, political subdivisions or instru­
mentalities thereof, public pension and retirement and other public funds, international organiza­
tions in which the United States holds membership, 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 to the 3V a percent notes from all others must be accompanied by payment
of 2 percent (in cash, or Treasury certificates of indebtedness, maturing February 15, 1961, at
par) of the amount of notes applied for not subject to withdrawal until after allotment.

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“The Secretary o f 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 m ay take in these respects shall be final. Subject
to these reservations, 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, Govern­
ment Investment Accounts, and the Federal Reserve Banks, will be allotted in full. 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 notes of this issue, until after
midnight February 6, 1961.
“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.”
Official circulars and subscription forms for the Treasury notes will be mailed as soon as possible.
However, if the circulars and forms are not received by Monday, February 6, subscriptions may be entered
by mail or telegraph, subject to confirmation on official subscription forms.

Yours very truly,
Watrous H. Irons