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FED ER A L R ESE R V E BANK O F DALLAS FISCAL. AGENT O F THE UNITED STATES Dallas, Texas, January 31, 1957 PRELIMINARY ANNOUNCEMENT EXCHANGE OFFERING FOR CERTIFICATES AND NOTES CASH AND EXCHANGE OFFERING OF TREASURY BILLS To all Banking Institutions and Others Concerned in the Eleventh Federal Reserve District: There is quoted below a press statement issued today by the Treasury Department in regard to an exchange offering for certificates and notes and a cash and exchange offering of Treasury bills: “The Treasury Department announced today an optional exchange offering of 3% percent 1-year Treasury Certificates of Indebtedness maturing February 14, 1958, and 3Y2 percent 3-year and 3-month Treasury Notes maturing May 15, 1960, open to the holders of $7,219 million 2% percent certificates maturing February 15 and $2,997 million 2% percent notes maturing March 15. The new certificate offering will also be open to holders of the $531 million 1 ^ percent notes maturing April 1. Cash subscriptions will not be received. “The new certificates and the new notes will be dated February 15, 1957, and exchanges will be made at par, with an adjustment of interest in all cases as of that date. In the case of the notes maturing March 15, accrued interest from September 15 to February 15 will be paid to subscribers following acceptance of the notes. In the case of the notes maturing April 1, accrued interest from October 1 to February 15 will be paid to subscribers following acceptance of these notes. In all cases the final coupon should be attached to the notes when surrendered. “Interest on the new certificates will be payable August 15, 1957, and at maturity on February 14, 1958. Interest on the new notes will be payable on November 15, 1957, and semiannually thereafter. “The subscription books will open on Monday, February 4, and will remain open only for two days for this exchange offering. Any subscription for either issue addressed to a Federal Reserve Bank or Branch, or to the Treasurer of the United States, and placed in the mail before midnight Tuesday, February 5, will be considered as timely. “The Treasury also announced that it will invite tenders for $1,750 million, or there abouts, of 129-day Treasury bills for cash and in exchange for the special Treasury bills maturing February 15. The full terms of the offering will be contained in a statement to be released Monday morning, February 4. Tenders will be opened at 1:30 P.M., Eastern Standard Time, on Thursday, February 7. “The new bills will be dated February 15 and will mature June 24, 1957. These will be Tax Anticipation Bills, acceptable at face value in payment of income and profits taxes due June 15, 1957. Settlement for accepted tenders must be made in cash or other imme diately available funds or in a like face amount of Treasury bills maturing February 15.” Official circulars and subscription forms for the exchange offering will be mailed to reach all banking institutions by Monday, February 4. However, if the circulars and forms are not received in sufficient time, subscriptions may be entered by mail, telegraph or telephone, subject to confirma tion with an official subscription blank. The formal circulars and forms for the Tax Anticipation Treasury Bills will be placed in the mail so as to reach all banking institutions in time for tenders to reach this bank or appropriate branch by Thursday, February 7. 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) This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)
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