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FEDERAL RESERVE BANK OF DALLAS F IS C A I. A G E N T O F T H E U N IT ED ST A T E S Dallas, Texas, July 25, 1960 PRELIM INARY A N N O U N C E M E N T TREASURY F IN A N C IN G 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 current financing: “The holders of $9.6 billion of 4% percent Treasury notes maturing August 15, 1960, and of $0.8 billion Federal National Mortgage Association SYs percent notes maturing August 23, 1960, will not be offered preemptive rights to ex change their holdings for new securities to be offered later this week. Both maturing issues will be paid off in cash. Approximately $4.7 billion of the two maturing issues are publicly held. “The necessary funds will be provided by a new issue, or issues, of direct Treasury obligations offered for cash subscription and by a reduction in the Treasury cash balance. The new issue, or issues, to be offered will aggregate approximately $9 billion as against the aggregate of $10.4 billion of securities being paid off. “Subscribers to the new issue, or issues, who hold the maturing securities may, if they wish, deposit them at IFace value in lieu of any cash down payments required with subscriptions. To the extent subscribers are allotted the new secur ities, the Treasury will accept the maturing securities in lieu of cash in making final payments. Accrued interest on the FNMA notes will be adjusted as of August 15, the expected delivery date of the new securities. “An announcement of the terms of the new issue, or issues, will be made later this week.” Official circulars and subscription forms will be mailed after the Treasury Depart ment announces the terms of the new offering. 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)