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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, May 18, 1949 EXCHANGE OFFERING To All Banking Institutions, and Others Concerned, in the Eleventh Federal Reserve District: There is reproduced herein Treasury Department Circular No. 846, dated May 19, 1949, in which the Secretary of the Treasury offers 1*4% Treasury Certificates of Indebtedness of Series E-1950, on an exchange basis, in authorized denominations, to holders of l 1/8% Treasury Certifi cates of Indebtedness of Series E-1949, maturing June 1, 1949, in the amount of $4,801,117,000, or 2% Treasury Bonds of 1949-51, dated January 15, 1942, called for redemption on June 15, 1949, in the amount of $1,014,018,900. Exchanges will be made par for par in the case of the maturing certificates, and at par with an adjustment of interest as of June 15, 1949, in the case of the called bonds. Cash subscriptions will not be received. The new certificates will be dated June 1, 1949, and will bear interest from that date at the rate of m % per annum, payable with the principal at maturity on June 1, 1950. They will be issued in bearer form only, in denominations of $1,000, $5,000, $10,000, $100,000 and $1,000,000. Although the maturing bonds are outstanding in denominations as low as $50, exchanges may be made only in amounts or multiples of $1,000 in the aggregate, since this is the lowest denomination in which the new certificates will be available. The books for the receipt of subscriptions to this exchange offering will be opened on Thursday, May 19, 1949. All timely subscriptions will be allotted in full. Subscriptions will be received at this bank and its branches at El Paso, Houston and. San Antonio, and should be submitted on the enclosed form, with surrender of the maturing securities. The full year’s interest on the Certificates of Indebtedness of Series E-1949 surrendered will be paid to the subscriber following acceptance of the certificates. Treasury bonds in coupon form submitted for exchange should be accompanied by payment of accrued interest on the new certificates from June 1, 1949 to June 15, 1949, at the rate of $0.47945 per $1,000. In the case of the registered bonds the accrued interest will be deducted from the amount of the check which will be issued in payment of final interest on the bonds surrendered. Final interest due June 15 on bonds surrendered will be paid, in the case of coupon bonds, by payment of June 15, 1949 coupons, which should be detached by holders before presentation of the bonds, and in the case of registered bonds, by checks drawn in accordance with the assignments on the. bonds surrendered. It is urged that subscriptions be entered on the subscription forms rather than by letter or otherwise. Additional subscription forms will be forwarded upon request. CLOSING OF SUBSCRIPTION BOOKS The subscription books will close at the close of business Monday, May 23. 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 of the closing day will be considered as having been entered before the close of the subscription books. Yours very truly, R. R. GILBERT President This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) U NITED S T A T E S O F A M E R IC A O N E A N D O N E -F O U R T H P E R C E N T T R E A S U R Y C E R T IF IC A T E S O F IN D E B T E D N E S S O F S E R IE S E -1 9 S O Dated and bearing interest from June 1, 1949 1949 Department Circular No. 846 ---------Fiscal Service Bureau of the Public Debt Due June 1, 1950 TREASU RY DEPARTMENT Office of the Secretary Washington, May 19, 1949 I. OFFERING OF CERTIFICATES 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 certificates of indebtedness of the United States, designated 1*4 percent Treasury Certificates of Indebtedness of Series E-1950, in exchange for 1% percent Treasury Certificates of Indebtedness of Series E-1949, maturing June 1, 1949, or 2 percent Treasury Bonds of 1949-51, dated January 15, 1942, called for redemption on June 15, 1949. Exchanges will be made par for par in the case of the maturing certificates, and at par with an adjustment of interest as of June 15, 1949, in the case of the called bonds. II. DESCRIPTION OF CERTIFICATES 1. The certificates will be dated June 1, 1949, and will bear interest from that date at the rate of 1*4 percent per annum, payable with the principal at maturity on June 1, 1950. They will not be subject to call for redemption prior to maturity. 2. The income derived from the certificates shall be subject to all taxes, now or hereafter imposed under the Internal Revenue Code, or laws amendatory or supplementary thereto. The certificates shall be subject to estate, inheritance, gift or other excise taxes, whether Federal or State, but shall be 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 certificates will be acceptable to secure deposits of public moneys. They will not be acceptable in payment of taxes. 4. Bearer certificates will be issued in denominations of $1,000, $5,000, $10,000, $100,000 and $1,000,000. The certificates will not be issued in registered form. 5. The certificates will be subject to the general regulations of the Treasury Department, now or hereafter prescribed, governing United States certificates. III. SUBSCRIPTION AND ALLOTMENT 1. Subscriptions will be received at the Federal Reserve Banks and Branches and at the Treasury Department, Washington. 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. The Secretary of the Treasury reserves the right to reject any subscriptions, in whole or in part, to allot less than the amount of certificates applied, for, and to close the books as to any or all subscriptions at any time without notice; 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 certificates allotted hereunder must be made on or before June 1, 1949, or on later allotment. Payment of the principal amount may be made only in Treasury Certifi cates of Indebtedness of Series E-1949, maturing June 1, 1949, or in Treasury Bonds of 1949-51, called for redemption on June 15, 1949, which will be accepted at par and should accompany the subscription. The full year’s interest on the certificates surrendered will be paid to the subscriber following acceptance of the certificates. In the case of the called, bonds in coupon form, payment of accrued interest on the new certificates from June 1, 1949 to June 15, 1949 ($0.47945 per $1,000) should be made when the subscription is tendered. In the case of called registered bonds, the accrued interest will be deducted from the amount of the check which will be issued in payment of final interest on the bonds surrendered. Final interest d.ue June 15 on bonds surrendered will be paid, in the case of coupon bonds, by payment of June 15, 1949 coupons, which should be detached by holders before presentation of the bonds, and in the case of registered bonds, by checks drawn in accordance with the assignments on the bonds surrendered. EXCHANGE OFFERING SUBSCRIPTION FOR 1-1/4% United States Treasury Certificates of Indebtedness SERIES E-1950 Dated June 1, 1949 Due June 1, 1950 T o: □ Federal Reserve Bank, Dallas 13, Texas □ Federal Reserve Bank Branch, El Paso, Texas Q Federal Reserve Bank Branch, Houston 1, Texas Q Federal Reserve Bank Branch, San Antonio 6, Texas For Use of Federal Reserve Bank Number------------- ------------Amount $-----------------... Pursuant to the provisions of Treasury Department Circular No. 846, dated May 19, 1949, the undersigned hereby subscribes for $._.................... , United States Treasury 1% % Certificates of Indebtedness, Series E-1950, dated June 1, 1949, maturing June 1, 1950, and tenders the following securities in payment: THE AGGREGATE AMOUNT OF THIS SUBSCRIPTION MUST BE IN MULTIPLES OF $1,000 li/8% Certificates of Indebtedness of Series E-1949, maturing June 1, 1949.......................................................... ...... -........................................................................$............................... 2% COUPON Treasury Bonds of 1949-51, called for redemption June 15, 1949 (Coupons due 12-15-49 and all subsequent should be attached)--------------- --------------------------$______ ___ ____ _ (Accrued interest from June 1, 1949, to June 15, 1949 ($0.47945 per $1,000) on Certificates of Indebtedness, Series E-1950, should be remitted with subscription.) Amount of Accrued Interest.................$................ .............. Method of Payment of Accrued Interest □ Paid by debit to our reserve account (Member Banks). □ Paid by draft on............................—~............................. 2% REGISTERED Treasury Bonds of 1949-51, called for redemption June 15, 1949.........................................................................................................................................$............................... (Accrued interest from June 1, 1949, to June 15, 1949 ($0.47945 per $1,000) on Certificates of Indebtedness, Series E-1950, to be deducted from the amount of interest due June 15, 1949, on REGISTERED BONDS sur rendered.) Serial numbers of the maturing securities tendered should be listed on the reverse side. The maturing securi ties should be surrendered with this subscription. If maturing securities are not tendered with this subscription, please attach a letter giving complete information regarding the location and approximate date of surrender of the securities. INSTRUCTIONS FOR DELIVERY OF NEW SECURITIES SCHEDULE FOR ISSUE OF SECURITIES Issued in Bearer Form Only. Fill in Number of Pieces By Denomination □ Hold in Custody Account (Allottted to member bank3 for own account only) □ Number of Pieces Pledge to secure War Loan Deposits DO NOT USE THIS COLUMN At Amount (Allotted to qualified banks for own account only) $1,000 □ Ship to------------------------------------------------------------------- $5,000 $10,000 $100,000 $1,000,000 □ Securities to be transferred by wire to (State whether free delivery or against funds) TOTAL □ This is an original subscription Q This is a confirmation Time Stamp For use of Federal Reserve Bank X) (N a m e o f S u b s cr ib e r ) By (Authorized Signature) (Address) Dated. (Over) $ LIST OF SUBSCRIBERS AMOUNT ADDRESS NAME OF SUBSCRIBER TOTAL $ ■ SERIAL NUMBERS OF TREASURY CERTIFICATES OF INDEBTEDNESS OF SERIES E-1949 SURRENDERED 5,000’s 1000’s 10,000’s 100,000’s 1,000,000’s SERIAL NUMBERS OF 2% COUPON TREASURY BONDS OF 1949-51 SURRENDERED Coupons due 12-15-49 and all subsequent should be attached. 50’s 100’s 500’s 1,000’s 5,000’s 10,000’s 100,000’s 2% REGISTERED TREASURY BONDS O F 1949-51 SURRENDERED N AM E APPEARING ON FACE OF SECURITIES SERIAL NUMBER OF SECURITIES NUMBER OF PIECES AND DENOMINATION @ @ @ @ PAR V A L U E $ V. ASSIGNMENT OF REGISTERED BONDS 1. Treasury Bonds of 1949-51 in registered form tendered in payment for certificates offered hereunder should be assigned by the registered payees or assignees thereof to “ The Secretary of the Treasury for exchange for Treasury Certificates of Indebtedness of Series E-1950 to be delivered to_________________ in accordance with the general regulations of the Treasury Department governing assignments for transfer or exchange, and thereafter should be presented and surrendered with the subscription to a Federal Reserve Bank or Branch or to the Treasury Department, Division of Loans and Currency, Washington, D. C. The bonds must be delivered at the expense and risk of the holders. 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 certificates allotted, to make delivery of certificates on full-paid subscriptions allotted, and they may issue interim recepits pending delivery of the definitive certificates. 2. The Secretary of the Treasury may at any time, or from time to time, prescribe sup plemental or amendatory rules and regulations governing the offering, which will be com municated promptly to the Federal Reserve Banks. JOHN W. SNYDER, Secretary of the Treasury.
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