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FEDERAL RESERVE BANK OF DALLAS F IS C A L A G E N T O F TH E U N ITE D ST A T E S Dallas, Texas, April 3,1958 CASH OFFERING 2% Percent Treasury Notes of Series A-1963 To all Banking Institutions and Others Concerned in the Eleventh Federal Reserve District: Enclosed is Treasury Department Circular No. 1007 covering a cash offering of 2% percent Treasury Notes of Series A-1963. Enclosed also is a supply o f subscription forms. Additional circulars and forms will be forwarded upon request. The books for the receipt of subscriptions will be open on Monday, April 7, for one day only. Subscriptions will be received at this bank and its branches at El Paso, Houston and San Antonio. Commercial banks may submit subscriptions for the account of customers, but others will not be permitted to enter subscriptions except for their own account. Subscriptions by commercial banks for their own account should be entered by the subscribing bank and not through another bank. A qualified depositary will be permitted to make payment by Treasury Tax and Loan Account credit for securities allotted to it for itself and its customers. Subscriptions from commercial banks for their own account will be received without deposit, but will be restricted in each case to an amount not exceeding 75 percent of the combined capital, surplus and undivided profits of the subscribing bank. Subscriptions from all others must be accompanied by 10 percent of the amount of notes subscribed for; however, such deposits accom panying subscriptions entered through a commercial bank are to remain at the commercial bank submitting the subscription. CLOSING OF SUBSCRIPTION BOOKS The subscription books will close at the close of business Monday, April 7. No further closing announcement will be made. Subscriptions addressed to a Federal Reserve bank or branch or to the Treasury Department and placed in the mail before midnight, Monday, April 7, will be considered as having been entered before the close of the subscription books. 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) UNITED STATES OF AMERICA T W O A N D F IV E -E IG H T H S P E R C E N T T R E A S U R Y N O T E S O F S E R IE S A - 1 9 6 3 Dated and bearing interest from April 15, 1958 1958 Department Circular No. 1007 --------Fiscal Service Bureau o f the Public Debt Due February 15,1963 TREASURY DEPARTMENT Office of the Secretary Washington, April 7,1958 I. OFFERING OF NOTES 1. The Secretary of the Treasury, pursuant to the authority of the Second Liberty Bond Act, as amended, invites subscriptions, at par and accrued interest, from the people of the United States for notes of the United States, designated 2% percent Treasury Notes o f Series A-1963. The amount of the offering under this circular is $3,500,000,000, or thereabouts. In addition to the amount offered for public subscription, the Secretary of the Treasury reserves the right to allot up to $100,000,000 of these notes to Government Investment Accounts. The books will be open only on April 7 for the receipt of subscrip tions for this issue. II. DESCRIPTION OF NOTES 1. The notes will be dated April 15, 1958, and will bear interest from that date at the rate of 2% percent per annum, payable on a semiannual basis on August 15, 1958, and thereafter on February 15 and August 15 in each year until the principal amount becomes payable. They will mature February 15, 1963, 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 o f 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 here after 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 payment of taxes. 4. Bearer notes with interest coupons attached will be issued in denominations of $1,000, $5,000, $10,000, $100,000, $1,000,000, $100,000,000 and $500,000,000. The notes will not be issued in registered form. 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 o f the Treasurer of the United States, Washington. Commercial banks, which for this purpose are defined as banks accepting demand deposits, 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. Others than commercial banks will not be permitted to enter subscriptions except for their own account. Subscriptions from commercial banks for their own account will be received without deposit, but will be restricted in each case to an amount not exceeding 75 percent of the combined capital, surplus and undivided profits, of the subscribing bank. Subscriptions from all others must be accompanied by payment of 10 percent of the amount of notes applied for, not subject to withdrawal until after allotment. Following allotment, any portion of the 10 percent payment in excess of 10 percent of the amount of notes allotted may be released upon the request of the subscribers. 2. 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. 3. The Secretary of the Treasury reserves the right to reject or reduce any subscrip tion, and to allot less than the amount of notes applied for, and to make different per centage 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. IY. PAYMENT 1. Payment at par and accrued interest, if any, for notes allotted hereunder must be made or completed on or before April 15, 1958, or on later allotment. In every case where payment is not so completed, the payment with application up to 10 percent of the amount of notes allotted shall, upon declaration made by the Secretary of the Treasury in his discretion, be forfeited to the United States. Any qualified depositary will be per mitted to make payment by credit for notes allotted to it for itself and its customers up to any amount for which it shall be qualified in excess of existing deposits when so notified by the Federal Reserve Bank of its District. V. 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. ROBERT B. ANDERSON, Secretary of the Treasury. FEDERAL RESERVE BANK OF DALLAS F IS C A L A G E N T O F T H E U N ITE D S T A T E S Dallas, Texas, April 2, 1958 PRELIMINARY ANNOUNCEMENT CASH OFFERING 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 a new cash offering: “ The Treasury Department announced today that on Monday, April 7, it will offer for cash subscription $ 3 ^ billion, or there abouts, of 2% percent 4-year 10-month Treasury notes. The sub scription books will be open only on April 7 for this offering. In addition up to $100 million of the notes may be allotted to Govern ment Investment accounts. “ The new notes will be dated April 15, 1958, and will mature February 15, 1963. Interest will be payable on a semiannual basis on August 15, 1958, and thereafter on February 15 and August 15 in each year. “ Subscriptions from commercial banks, which for this pur pose are defined as banks accepting demand deposits, for their own account, will be received without deposit, but will be restricted to an amount not exceeding 75 percent of the combined capital, sur plus and undivided profits of the subscribing bank. A payment of 10 percent of the amount of notes subscribed for must be made on all other subscriptions. The new securities may be paid for by credit in Treasury Tax and Loan accounts. “ Commercial banks and other lenders are requested to refrain from making unsecured loans, or loans collateralized in whole or in part by the notes subscribed for, to cover the deposits required to be paid when subscriptions are entered. “ Any subscription addressed to a Federal Reserve Bank or Branch, or to the Treasurer of the United States, and placed in the mail before midnight, April 7, will be considered as timely.” The official circular and subscription forms for the cash offering will be mailed to reach you by Monday. However, if the circular and forms are not received by Monday, April 7, subscriptions may be entered by mail, telegraph or telephone, subject to confirmation with an official subscription blank. Yours very truly, Watrous H. Irons President
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