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FEDERAL RESERVE BANK OF DALLAS F I S C A L A G E N T O F T H E U N IT E D S T A T E S Dallas, Texas, March 20, 1959 CASH OFFERING 289-DAY TREASURY BILLS 4 PERCENT TREASURY NOTES OF SERIES B-1963 4 PERCENT TREASURY BONDS OF 1969 (Additional Issue) To all Banking Institutions and Others Concerned in the Eleventh Federal Reserve District: Enclosed is a press statement covering a special offering of 289-D ay Treasury Bills, to be issued on an auction basis. Also enclosed are Treasury Department Circulars Nos. 1023 and 1024 covering a cash offering of 4 percent Treasury Notes of Series B -1963 and 4 percent Treasury Bonds of 1969, additional issue. Tender forms for the Treasury bills are on the reverse side of the press statements and subscription forms for the notes and bonds are enclosed. Additional circulars and forms will be forwarded upon request. Tenders for the bills from commercial banks for their own account or for the account of customers will be received without deposit. Tenders from all others must be accompanied by payment of 2 percent of the face amount of Treasury biffs applied for. 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. Subscriptions to the notes from commercial banks for their own account will be received without deposit, but will be restricted in each case to an amount not exceeding 50 percent of the combined capital, surplus and undivided profits of the submitting bank. Subscriptions to the notes from others than commercial banks must be accompanied by a deposit of 2 percent of the amount of notes applied for. Subscriptions to the bonds from commercial banks for their own account will be received without deposit, but will be restricted in each case to an amount not exceeding 5 percent of the combined amount of time certificates of deposit (but only those issued in the names of individuals and of corporations, associations, and other organizations not operated for profit), and of savings deposits, or 15 percent of the combined capital, surplus and undivided profits, whichever is greater. Subscriptions to the bonds from States, political subdivisions or instrumentalities thereof, and public pension and retirement and other public funds will be received without deposit. Subscriptions from others must be accompanied by a deposit of 20 percent of the amount of bonds applied for. All deposits accompanying subscriptions entered through a commercial bank are to remain at the commercial bank submitting the subscription. A qualified depositary will be permitted to make payment by Treasury T ax and Loan Account credit for securities allotted to it for itself and its customers. It will be observed that all bidders are required to agree not to purchase or sell, or to make any agreements with respect to the purchase or sale or other disposition of the biffs of this issue until after 1 :3 0 o’clock p.m., Eastern Standard Tim e, Thursday, March 26, 1959, while, in the case of the Treasury notes and the Treasury bonds subscribed for under the terms of this offering, the same agreement is required until after midnight, M arch 23, 1959. CLOSING OF SUBSCRIPTION BOOKS Tenders for the Treasury bills will be received at this bank and its branches up to 12:30 o’clock p.m., Central Standard Tim e, Thursday, March 26, 1959. The subscription books for the notes and bonds w ill close at the close of business Monday, March 23, and any subscription addressed to a Federal Reserve Bank or branch or to the Treasury Department and placed in the mail before midnight M onday, March 23, will be considered as having been entered before the close of the subscription books. N o further closing announcement will be made. 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 O F AMERICA FOUR PERCENT TREASURY BONDS OF 1969 Dated October 1, 1957, with interest from April 1, 1959 Due October 1, 1969 Interest payable April 1 and October 1 ADDITIONAL ISSUE 1959 TREASURY DEPARTMENT Office of the Secretary Washington, March 23, 1959 Department Circular No. 1024 Fiscal Service Bureau of the Public Debt I. OFFERING OF BONDS 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 bonds of the United States, designated 4 percent Treasury Bonds of 1969. T h e amount of the offering under this circular is $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 $50,000,000 of these bonds to Government Investment Accounts. T he books will be open only on March 23, 1959, for the receipt of subscriptions for this issue. II. 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 of 1969 issued pursuant to Department Circular No. 996, dated September 16, 1957, 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 April 1, 1959. Subject to the provision for the accrual of interest from April 1, 1959, on the bonds now offered, the bonds are described in the following quotation from Department Circular No. 9 9 6 : “ 1. T he bonds will be dated October 1, 1957, and will bear interest from that date at the rate of 4 percent per annum, payable semiannually on April 1 and October 1 in each year until the principal amount becomes payable. T hey will mature October 1, 1969, 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. T he 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 of_______________________________ ” Owing 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 reopen ing 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 sworn to, and by proof iA n exact half-year’ s interest is com puted for each full half-year period irrespective o f the actual num ber o f days in the half year. F or a fractional part of any half year, com putation is on the basis o f the actual number o f days in such half year. 2The transfer books are closed from M arch 2 to A pril 1, and from Septem ber 2 to October 1 (b o th dates inclusive) in each year. 3Copies of Form P D 1782 m ay be obtained from any Federal Reserve Bank or from the Treasury Departm ent, Washington, D . C. of the representatives’ authority in the form of a court certificate or a certified copy of the representa tives’ 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 b y 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 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 of the Treasurer of the United States, Washington. Commercial banks, which for this purpose are defined as banks accepting demand deposits, may submit subscriptions 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. Subscrip tions from commercial banks for their own account will be received without deposit but will be restricted in each case to an amount not exceeding 5 percent of the combined amount of time certificates of deposit (but only those issued in the names of individuals, and of corporations, associations, and other organizations not operated for profit), and of savings deposits, or 15 percent of the combined capital, surplus and undivided profits, of the subscribing bank, whichever is greater. Subscriptions from States, political sub divisions or instrumentalities thereof, and public pension and retirement and other public funds also will be received without deposit. Subscriptions from all others must be accompanied by payment of 20 percent of the amount of bonds applied for, not subject to withdrawal until after allotment. Following allotment, any portion of the 20 percent payment in excess of 20 percent of the amount of bonds allotted may be released upon the request of the subscribers. 2. A ll 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 bonds subscribed for hereunder, until after mid night March 23, 1959. 3. Commercial banks in submitting subscriptions will be required to certify that they have no bene ficial 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 4. T he Secretary of the Treasury reserves the right to reject or reduce any subscription, to allot less than the amount of bonds applied for, and to make different percentage allotments to various classes of subscribers; and any action he may take in these respects shall be final. The basis of the allotment will be publicly announced, and allotment notices will be sent out promptly upon allotment. IV. PAYMENT 1. Payment at par and accrued interest, if any, for bonds allotted hereunder must be made or com pleted on or before April 1, 1959, or on later allotment. In every case where payment is not so completed, the payment with application up to 20 percent of the amount of bonds 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 permitted to make payment by credit in its Treasury tax and loan account for bonds 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 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. T he 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. R O B E R T B. A N D E R S O N , Secretary of the Treasury. UNITED STATES O F AMERICA FOUR PERCENT TREASURY NOTES OF SERIES B-1963 Dated and bearing interest from April 1, 1959 1959 Department Circular No. 1023 Due M ay 15, 1963 TREASURY DEPARTM ENT ---------- Office of the Secretary Washington, March 23, 1959 Fiscal Service Bureau of the Public Debt 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 4 percent Treasury Notes of Series B -1963. T he amount of the offering under this circular is $1,500,000,000, 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. T he books will be open only on March 23 for the receipt of subscriptions for this issue. II. DESCRIPTION O F NOTES 1. The notes will be dated April 1, 1959, and will bear interest from that date at the rate of 4 percent per annum, payable on a semiannual basis on November 15, 1959, and thereafter on M a y 15 and November 15 in each year until the principal amount becomes payable. T hey will mature M a y 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 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. T hey 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 of the Treasurer of the United States, Washington. Commercial banks, which for this purpose are defined as banks accepting demand deposits, m ay submit subscriptions 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 sub scriptions 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 50 percent of the combined capital, surplus and undivided profits, of the subscribing bank. Subscriptions from all others must be accompanied by payment of 2 percent of the amount of notes applied for, not subject to withdrawal until after allotment. Following allotment, any portion of the 2 percent payment in excess of 2 percent of the amount of notes allotted may be released upon the request of the subscribers. 2. All subscribers are required to agree not to purchase or to sell, or to make any agree ments with respect to the purchase or sale or other disposition of any notes of this issue, until after midnight March 23, 1959. 3. 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. 4. The Secretary of the Treasury reserves the right to reject or reduce any subscription, to allot less than the amount of notes applied for, and to make different percentage allotments to various classes of subscribers; and any action he may take in these respects shall be final. The basis of the allotment will be publicly announced, and allotment notices will be sent out promptly upon allotment. IV. PAYMENT 1. Payment at par and accrued interest, if any, for notes allotted hereunder must be made or completed on or before April 1, 1959, or on later allotment. In every case where payment is not so completed, the payment with application up to 2 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 permitted to make payment by credit in its Treasury tax and loan account 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 indi cated 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 m ay at any time, or from time to time, prescribe supple mental or amendatory rules and regulations governing the offering, which will be communicated promptly to the Federal Reserve Banks. R O B E R T B. A N D E R S O N , Secretary of the Treasury.
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