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FE D ER AL R ESER VE B AN K O F D A L L A S 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, August 19,1946 EXCHANGE OFFERING ON ALLOTMENT BASIS To All Banking Institutions, and Others Concerned, in the Eleventh Federal Reserve District: There is reproduced on the reverse side hereof Treasury Department Circular No. 792 dated August 19, 1946, in which the Secretary of the Treasury offers % % Certificates of Indebted ness of Series H-1947, on an exchange basis, to holders of Treasury Certificates of Indebtedness of Series G-1946, maturing September 1, 1946, in the amount of $4,336,327,000. Since it is planned to retire about $2,000,000,000 of the maturing certificates by redemption in cash, subscriptions will be received subject to allotment to all holders on an equal percentage basis except that subscriptions in amounts up to $25,000 will be allotted in full. Cash subscriptions will not be received. The new certificates will be dated September 1, 1946, and will bear interest from that date at the rate of % % per annum, payable with the principal at maturity on September 1, 1947. In connection with this change in the method of interest payment, the Treasury made the following comment in its press statement of August 16: “The new certificate will differ from those we have been issuing in that interest will be paid with the principal at maturity, thus eliminating the need for the conventional semiannual interest coupons. We have had this change under consideration for some time and have dis cussed it with the Federal Reserve System and a number of representative holders of certifi cates. We think it will be of benefit both to the certificate holders and to us to pay the interest with the principal at maturity. It avoids the inconvenience of clipping coupons twice a year and cashing them and the clerical and accounting expenses incident to that task.” The certificates will be issued in bearer form only in denominations of $1,000, $5,000, $10,000, $100,000 and $1,000,000. The books for the receipt of subscriptions to this exchange offering will be opened on Monday, August 19, 1946. It is important that subscribers tender maturing certificates in an amount equal to the amount of new certificates subscribed for or arrange for delivery of the maturing certificates to this bank or one of its branches prior to the close of the subscription books. If the maturing certificates are held in safekeeping at this bank or one of its branches, please so indicate on the subscription form. Arrangements should be made to substitute other securities for any maturing pledged certificates to be tendered in order that the maturing certificates may be available to support the subscription. 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. It is urged that subscriptions be entered on the subscrip tion forms rather than by letters or otherwise. Additional subscription forms will be forwarded upon request. CLOSING OF SUBSCRIPTION BOOKS The subscription books will close at the close of business Wednesday, August 21, except for the receipt of subscriptions from holders of $25,000 or less of the maturing certificates. The subscription books will close for the receipt of subscriptions of the latter class at the close of business Thursday, August 22. 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 respective closing days, 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) UNITED S T A T E S O F AM E R IC A SEVEN-EIGHTHS PERCENT TREASURY CERTIFICATES OF INDEBTEDNESS OF SERIES H -I947 Dated and bearing interest from September 1, 1946 1946 Department Circular No. 792 Due September 1, 1947 TREASURY DEPARTMENT Office of the Secretary Washington, August 19, 1946 Fiscal Service Bureau of the Public Debt I. OFFERING OF CERTIFICATES 1. The Secretary of the Treasury, pursuant to the authority of the Second Liberty Bond Act, as amended, invites subscriptions, at par, from the people of the United States for certificates of indebtedness of the United States, designated % percent Treasury Certificates of Indebtedness of Series H-1947, in exchange for Treasury Certificates of Indebtedness of Series G-1946, maturing September 1, 1946. Approximately $2,000,000,000 of the maturing certificates will be retired on cash redemption. II. DESCRIPTION OF CERTIFICATES 1. The certificates will be dated September 1, 1946, and will bear interest from that date at the rate of % percent per annum, payable with the principal at maturity on September 1, 1947. They will not be subject to call for redemption prior to maturity. 2. The income derived from the certificates shall be subject to all Federal taxes, now or here after imposed. 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 Treas ury 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 subscription, 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, subscriptions for amounts up to and including $25,000 will be allotted in full, and subscriptions for amounts over $25,000 will be allotted to all holders on an equal percentage basis, but not less than $25,000 on any one subscription. The basis of the allot ment will be publicly announced, and allotment notices will be sent out promptly upon allotment. IV. PAYMENT 1. Payment at par for certificates allotted hereunder must be made on or before September 3, 1946, or on later allotment, and may be made only in Treasury Certificates of Indebtedness of Series G-1946, maturing September 1, 1946, which will be accepted at par, and should accompany the subscription. 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 allot ment notices, to receive payment for certificates allotted, to make delivery of certificates on fullpaid subscriptions allotted, and they may issue interim receipts pending delivery of the definitive certificates. 2. The Secretary of the Treasury may 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. JOHN W. SNYDER Secretary of the Treasury. Exchange Offering on an Allotment Basis SUBSCRIPTION FOR 7 /8 % United States Treasury Certificates of Indebtedness Series H-1947 Due September 1, 1947 Dated September 1, 1946 For Use of Federal Reserve Bank Number.......................... Amount $...................... To: □ Federal Reserve Bank, Dallas 13, Texas □ Federal Reserve Bank Branch, El Paso, Texas □ Federal Reserve Bank Branch, Houston 1, Texas □ Federal Reserve Bank Branch, San Antonio 6, Texas Pursuant to the provisions of Treasury Department Circular No. 792, dated August 19, 1946, the under signed hereby subscribes for $_____________________ , United States Treasury % % Certificates of Indebtedness, Series H-1947, dated September 1, 1946, maturing September 1, 1947, and tenders the following securities in payment: % per cent Certificates of Indebtedness, Series G-1946, maturing September 1, 1946..... ........... ..... ....... ........ ...................................................................... $............................... Amoont of List your own and customers’ subscriptions on reverse side. Subscription^) Subscriptions in amounts of $25,000 and less - - - - - - - - - Subscriptions in amounts over $25,000 - - - - - - - - - - - ? - ......... - ................... Total Subscriptions ......................................................................... ? - ............................. A SUBSCRIBER MAY ENTER SUBSCRIPTION EITHER FOR AN AMOUNT UP TO AND INCLUDING $25,000, WHICH WILL BE ALLOTTED IN FULL, OR FOR AN AMOUNT OYER $25,000, BUT NOT FOR BOTH. A SUBSCRIBER SUBSCRIBING FOR AN AMOUNT UP TO AND INCLUDING $25,000 WILL BE RESTRICTED TO ONE SUBSCRIPTION. Disposition of proceeds of redemption of Certificates of Indebtedness, Series G-1946, not used in payment of this subscription, to be made as follows: ..........................................................................- - □ Credit our Reserve Account □ Remit to the undersigned "U Otherwise (Give disposition) Serial numbers of certificates tendered should be listed on the reverse side. The maturing securities should be surrendered with this subscription. (It is important that subscribers tender maturing certificates in an amount equal to the amount of new certifi cates subscribed for or arrange for delivery of the maturing certificates to this bank or one of its branches prior to the closing dates.) SCHEDULE FOR ISSUE OF CERTIFICATES INSTRUCTIONS FOR DELIVERY OF CERTIFICATES □ O □ □ Issued in Bearer Form Only. Fill in Number of Pieces and Denominations Desired Hold in Custody Account (Allotted to banks for own account only) Pledge to Secure War Loan Deposits (Allotted to qualified banks for own account only) Number of Pieces DO NOT USE THIS COLUMN At $1,000 Ship to_________________________________________ $5,000 $10,000 $100,000 $1,000,000 Certificates of Indebtedness to be transferred by wire to (State whether free delivery or against funds) Time Stamp For use o f Federal Reserve Bank Amount TOTAL $ □ This is an original subscription. □ This is a confirmation (Name o f Subscriber) By......................................................... (President-Cashier) (Address) Dated. (Over) LIST OF SUBSCRIBERS NAME OF SUBSCRIBER AMOUNT ADDRESS ALLOTMENT TOTAL $ SERIAL NUMBERS OF TREASURY CERTIFICATES OF INDEBTEDNESS OF SERIES G-1946 SURRENDERED All coupons should be detached from the surrendered certificates.
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