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Reserve Ba nk



DALLAS. TEXAS 7 5 2 2 2

Circular No. 68-168
July 3 1 , 1968

To All Banking Institutions and Others Concerned
in the Eleventh Federal Reserve District:
There is quoted
Department in regard

below a
press statement
to current financing:

issuedtoday by the Treasury

The Treasury will borrow $5*1 billion, or thereabouts,
from the public through
the issuance of
6 -year5-5/8'joTreasury
Notes of Series B-197^3
at 99*62 to yield about 5-70'jo for the
purpose of paying off in cash Treasury securities maturing
August 15, 1968, and borrowing new cash. In addition to the
amount offered to the public, an additional amount will be
allotted to Government Investment Accounts and Federal Reserve
Banks. The amount of the maturing issues is $8 . 6 billion of
which $3 .6 billion is held by the public.
The maturing securities are:
$5,936 million of h - l / h ' j o Treasury Notes of Series C-I9 68 ,
dated May 15, 19&7; and
$2,61*0 million of 3 - 3 Treasury Bonds of 1968 , dated
April 18, 1962.
The new notes will be dated August 15, 1968, and will
mature August 15, 197^. Interest will be payable on Febru­
ary 15 and August 15.
Payment and delivery date for the notes will be August 15.
Payment may be made in cash, or in b - l / h ' j o notes of Series C-I9 68 ,
or 3 -3/ ^ bonds of 1968 , which will be accepted at par, in pay­
ment or exchange, in whole or in part, for the notes subscribed
for, to the extent such subscriptions are allotted by the Treas­
ury. Payment by credit in Treasury Tax and Loan Accounts may
be made for 50'jo of the amount of notes allotted.

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (


2 -

The subscription books will be open only on Monday, August j.
Subscriptions with the required deposits addressed to a Federal
Reserve Bank or Branch, or to the Treasurer of the United States,
and placed in the mail before midnight August 5, 1968, will be
considered timely.
Subscriptions from commercial banks, for their own account,
will be restricted in each case to an amount not exceeding 50 %
of the combined capital (not including capital notes or deben­
tures), surplus and undivided profits of the subscribing bank.
Subscriptions for commercial and other banks for their
own account, Federally-insured savings and loan associations,
States, political subdivisions or instrumentalities thereof,
public pension and retirement and other public funds, inter­
national organizations in which the United States holds member­
ship, foreign central banks and foreign States, and dealers who
make primary markets in Government securities and report daily
to the Federal Reserve Bank of New York their positions with
respect to Government securities and borrowings thereon will
be received without deposit.
Subscriptions from all others must be accompanied by pay­
ment of 10% (in cash, or eligible Treasury securities maturing
August 15, 1968, at par) of the amount of notes applied for not
subject to withdrawal until after allotment.
The Secretary of the Treasury reserves the right to reject
or reduce any subscription, to allot less than the amount of
notes applied for, and to make different percentage allotments
to various classes of subscribers; and any action he may take
in these respects shall be final. The basis of the allotment
will be publicly announced, and allotment notices will be sent
out promptly upon allotment.
Subject to the reservations in the preceding paragraph,
(l) all.subscriptions in amounts up to and including $2 5 0 ,0 0 0
will be allotted in full and subscriptions over $2 5 0 ,0 0 0 will
be allotted on a percentage basis but not less than $2 5 0 ,000 ;
and (2) all subscriptions from States, political subdivisions
or instrumentalities thereof, public pension and retirement
and other public funds, international organizations in which
the United States holds membership, and foreign central banks
and foreign States will be allotted in full if a statement is
submitted certifying that the amount of the subscription does
not exceed the amount of the two maturing securities owned or
contracted for purchase for value, at i p.m., Eastern Daylight
Saving Time, July 31, 1968. Any such subscriber may enter an
additional subscription subject to a percentage allotment.

- 3 The notes will be made available in registered as well
as bearer form. All subscribers requesting registered notes
will be required to furnish appropriate identifying numbers
as required on tax returns and other documents submitted to
the Internal Revenue Service.
All subscribers are required to agree not to purchase or
to sell, or to make any agreements with respect to the purchase
or sale or other disposition of any of the notes subscribed
for under this offering at a specific rate or price, until
after midnight August 55 19&8.
Commercial banks in submitting subscriptions will be re­
quired to certify that they have no beneficial interest in any
of the subscriptions they enter for the account of their cus­
tomers, and that their customers have no beneficial interest
in the banks' subscriptions for their own account.
The official circular and subscription form for the new issue of
Treasury notes will be mailed Thursday, August 1; however, if the forms
do not reach you by Monday, August 5, subscriptions may be entered by
mail or telegram, subject to confirmation on official subscription blanks.

Yours very truly,
P. E. Coldwell

Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102