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FEDERAL RESERVE BANK O F DALLAS F IS C A L A G E N T O F T H E U N IT E D ST A T E S Dallas, Texas, November 15, 1962 SPECIAL EXCHANGE OFFERING To All Banking Institutions and Others Concerned in the Eleventh Federal Reserve District: A press statem ent issued today by the Treasury D epartm ent in regard to an offering of 3% percent Treasury Bonds of 1971 and 4 percent Treasury Bonds of 1980 in exchange for Series F and G Savings Bonds maturing in 1963 and 1964 is quoted below: Exchange Offering for Holders of Series F and G Savings Bonds Maturing in 1963 and 1964 The Treasury is offering to the holders of approxim ately $458 million of Series F and G Savings Bonds issued in 1951 and 1952, which m ature January 1, 1963, through April 1, 1964, an opportunity to exchange them at their face amount, with certain interest and other adjust m ents as of December 15, 1962, for 3% % Treasury Bonds of 1971 (Additional Issue), dated M ay 15, 1962, m aturing Novem ber 15, 1971 (about $1,204 million of these bonds are now outstanding), to be issued a t 99.50, or 4% T reasury Bonds of 1980 (Additional Issue), dated January 23, 1959, m aturing Feb ruary 15, 1980 (about $1,446 million of these bonds are now outstanding), to be issued a t 99.50. Interest is payable M ay 15 and November 15 on the 3 % % bonds and February 15 and August 15 on the 4% bonds. The Series F and G bonds will be accepted in the exchange at amounts set forth in the offering circulars for their respective months of m aturity. These exchange values are higher than present redem ption values. T hey have been set so th at holders of Series F and G bonds who elect to accept this exchange offer will receive, in effect, an investment yield of approxi m ately 1 % per annum more than would otherwise accrue from December 15, 1962, to the m aturity dates of their bonds, and will receive an investment yield of approxim ately 3.94% on the 3 % % m arketable bonds and approximately 4.04% on the 4% m arketable bonds received in exchange for the period from the m aturity dates of their Series F and G bonds to the respec tive m aturity dates of the m arketable bonds. The subscription books for exchanges of the Series F and G Savings Bonds m aturing in 1963 and 1964 will be open for the receipt of subscriptions from all classes of subscribers during the period from November 19 through November 26, 1962, and in addition, subscriptions may be subm itted by individuals through November 30, 1962. For this purpose, individuals are defined as natural persons in their own right. Any subscription addressed to a Federal Reserve Bank or Branch, or to the Treasurer of the United States, and placed in the mail before mid night of the respective closing dates, accompanied by the Series F and G bonds m aturing from January 1, 1963, through April 1, 1964, to be exchanged, together with any cash difference necessary to make up the next higher $500 multiple (the lowest denomination of the new bonds), will be considered timely. The delivery date for the 3 % % bonds of 1971 and the 4% bonds of 1980 will be Decem ber 17, 1962. The bonds will be available in registered form, as well as bearer form. The Treasury bonds m ay be registered jointly in the names of two individuals, but not in the beneficiary fortn as in the case of savings bonds. However, unlike savings bonds, Treasury bonds registered jointly in two names require the signature of each owner to effect transfer or sale. This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) Exchanges of Series F and G Savings Bonds maturing in 1963 and 1964, will be m ade on the basis of equal face amounts and will be allotted in full. Since holders of the Series F and G bonds will receive interest on the 3 % % bonds of 1971 at the rate of 3 % % from November 15, 1962, and on the 4% bonds of 1980 at the rate of 4% from August 15, 1962, interest adjust m ents will be made as follows: Subscribers to the 3% % bonds will be charged accrued interest from November 15 to December 15, 1962 ($0.32 per $100), and subscribers to the 4% bonds will be charged accrued interest from August 15 to December 15, 1962 ($1.33 per $100). Subscribers to both the 3% % and 4% bonds will be credited with the discount on the issue price of the bonds ($0.50 per $100). The lowest denomination of the new 3% % and 4% bonds is $500. Holders of smaller denominations of Series F and G bonds m ay exchange them for the next higher m ultiple of $500 upon paym ent of any cash difference. The m arketable 3 7 /s% bonds of 1971 and the 4% bonds of 1980 are subject to fluctuations in prices at which they m ay be sold. Holders of Series F and G bonds (except bonds registered in the names of commercial banks in their own right, as distinguished from a representative or fiduciary capacity) desiring a security not subject to m arket fluctuations m ay exchange them at m aturity for Series E or H bonds with interest a t 3 % % if held to m aturity. Full details of this offering to holders of Series F and G bonds appear in the official circulars being released a t this time, and which will be available at banking institutions on November 19, 1962, or shortly thereafter. Holders m ay consult their local banks for further information after th at time. Copies of the official circulars and subscription forms will be mailed to reach all banking institutions by November 19. Any subscription addressed to a Federal Reserve Bank or Branch or to the Treasurer of the United States and placed in the mail before midnight, M onday, November 26, will be considered timely. In addition, subscriptions m ay be subm itted by individuals through Friday, November 30, 1962. Additional subscription forms will be furnished upon request Yours very truly, W atrous H. Irons President
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