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FE D E R A L R E S E R V E B AN K O F D A L L A S F IS 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, January 29,1958 P R E L IM IN A R Y A N N O U N C E M E N T E X C H A N G E OFFERING To all Banking Institutions and Others Concerned in the Eleventh Federal Reserve D istrict: There is quoted below a press statement issued today by the Treasury Department in regard to the new exchange offering: “ The Treasury Department today announced that on Monday, February 3, it will offer three new Treasury securities, all to be dated February 14, 1958, as follows: 2V2 percent Treasury Certificates of Indebtedness of Series A-1959, maturing February 14, 1959 3 percent Treasury Bonds of 1964, maturing February 15, 1964 3 V2 percent Treasury Bonds of 1990, maturing February 15, 1990. Each of the three issues will be open only on an exchange basis to holders of any of the follow ing maturing securities: Title of Issue Maturity Date Amount Outstanding (Millions of Dollars) 3% % Treasury Certificates, SeriesA-1958............. February 14,1958__________ 2y%% Treasury Bonds of 1956-58_________ ____ .March 15, 1958....................... li/ 2 % Treasury Notes, Series E A -1 9 5 8 ..__ __ ___ April 1, 1958________ Treasury Bills (Special Issue).............. ......................April 15, 1958...... 3 1 4 % Treasury Certificates, Series B-1958 . ......... ..April 15, 1958..... ................... Total____________________________________________ 10,851 1,449 383 1,751 2,351 16,785 “ Interest on the new certificates will be payable on August 14, 1958, and February 14, 1959. Interest on the two new bonds will be payable on August 15, 1958, and thereafter on February 15 and August 15, in each year until they respectively mature. “ Exchange of the maturing securities for any of the three new issues will be made par for par with the following interest adjustments: 3% % Certificates of Indebtedness of Series A-1958: Coupons dated February 14, 1958, to be detached and cashed when due. 21/ 2 % Treasury Bonds of 1956-58: To be surrendered with coupons dated March 15, 1958, attached. Accrued interest from September 15, 1957, to February 14, 1958, will be paid the subscriber following acceptance of the bonds. In the case of registered bonds accrued interest will be paid in accordance with the assignments. i y 2 % Treasury Notes of Series EA-1958: To be surrendered with coupons dated April 1, 1958, attached. Interest from October 1, 1957, to April 1, 1958, will be credited, accrued interest from February 14, 1958, to April 1, 1958, at the appropriate rate on the new securities for which the notes are exchanged will be charged, and the difference will be paid the subscriber following acceptance of the notes. (Over) This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) Treasury Bills maturing April 15, 1958: They will be accepted at face value. Accrued interest from February 14, 1958, to April 15, 1958, at the rate borne by the securities for which the bills are exchanged must be paid by the subscriber following acceptance of the bills. 3i/2% Certificates of Indebtedness of Series B-1958: Coupons dated April 15, 1958, must be attached to certificates when surrendered. Interest from October 15, 1957, to February 14, 1958, will be paid if exchanged for new 3% % bonds. If exchanged for the 2']/>% certificates or the 3% bonds interest from October 15, 1957, to April 15, 1958, will be credited. Interest from February 14, 1958, to April 15, 1958, at the appropriate rate borne by the new securities subscribed for will be charged, and the difference will be paid the subscriber following accept ance of the certificates. “ The subscription books will be open only on February 3 through February 5 for this exchange offering. Any subscription for any of the three issues addressed to a Federal Reserve Bank or Branch or to the Treasurer of the United States and placed in the mail before midnight Wednesday, February 5, will be considered as timely.” TABLE OF INTEREST ADJUSTMENTS PER $1,000 IN CONNECTION WITH EXCHANGE OF VARIOUS MATURING SECURITIES FOR NEW 2/z % CERTIFICATES, 3% BONDS AND 3 % % Int. Credited to Subscriber Securities Surrendered S % % Certs., Series A-1958 . 2 % % Bonds o f 1956-58 . . . . 1 % % Notes of Series EA-1958 ( I f Exchanged for 2 % ’s) . (I f Exchanged fo r 3’s) . . (I f Exchanged fo r 3 % ’s) . Treasury Bills (I f Exchanged for 2% ’s) . (I f Exchanged fo r 3’s) . (I f Exchanged for 3 % ’s) 3 % % Certs., Series B-1958 . (I f Exchanged fo r 2 % ’s) . (I f Exchanged fo r 3’s) . (I f Exchanged fo r 3% ’s) . ........................................................ $16.78 ........................................................ 10.50 . . . ........................................................ ........................................................ ........................................................ » > • • • • • • • , • • ........................................................ ....................................................... ........................................................ Net Amout to Be Paid Subscriber $ ....... $16.78 10.50 7.50 7.50 7.50 3.18 3.81 4.45 4.32 3.69 3.05 ...... 4.14 4.97 5.80 . . . . . Int. Charged to Subscriber 17.50 17.50 11.73 4.14 4.97 BONDS Net Amount to Be Collected From Subscriber * ■ 4.14 4.97 5.80 13.36 12.53 11.73 Official circulars and subscription forms for the exchange offering will be mailed to reach all banking institutions by Monday, February 3. However, if the circulars and forms are not received in sufficient time, 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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