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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 S T A T E S

Dallas, Texas, April 30,1952

PRELIM INARY ANNOUNCEM ENT
CASH AN D EXCHANGE OFFERING

To A ll Banking Institutions, and Others Concerned,
In the Eleventh Federal Reserve D istrict:

There is quoted below a statement released today by the Treasury Department announcing
that on May 19, 1952, an additional amount of the 2% percent Treasury Bonds, Investment Series
B-1975-80, will be offered for cash and in exchange for any of the four outstanding restricted
Treasury Bonds, with the longest maturities:
“ Secretary o f the Treasury Snyder today announced an additional step in the
Treasury’s program to raise funds required in financing the defense program from nonbank
sources. On May 19, 1952, there will be offered for subscription for a limited period addi­
tional amounts of the 2% percent Treasury Bonds, Investment Series B-1975-80. These
bonds were originally issued April 1,1951; they are nontransferable, but may at the owner’s
option be exchanged for 1*4 percent five-year marketable Treasury notes to be dated April 1
and October 1 of each year during the life of the bond. Subscriptions to the new 2% percent
Treasury Bonds may be paid for in full in cash, or not less than one-quarter of the amount
subscribed for may be paid for in cash and the remainder by exchange, par for par, of
bonds of any of the four outstanding restricted Treasury Bonds with the longest maturities.
The issues eligible for exchange under this offering are the 2% percent bonds of 1965-70,
the 2*4 percent bonds of 1966-71, and the two issues of 2*4 percent bonds of June 15 and
December 15, 1967-72. The two latter issues are the issues which were exchangeable for
the 2% percent Treasury Bonds originally issued April 1, 1951, which are now outstanding
in the amount of about $11,500,000,000.
“ Payment for the new bonds may be made in full on June 4, 1952, or may be made in
four equal installments on June 4, August 1, October 1, and December 1, 1952, with provi­
sion for acceleration of payments if desired by subscribers.
“ Commercial banks are excluded from this offering, except to the extent that they turn
in restricted bonds acquired prior to December 31, 1945, for the partial investment of their
savings accounts.
“ Further details with respect to this offering will be made available somewhat in
advance of the opening of the subscription books on May 19,1952.”
The official offering circular and subscription forms for the cash and exchange offering will be
mailed so as to reach all banking institutions on or before Monday, May 19, 1952.
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)


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