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FEDERAL RESERVE BANK OF DALLAS
FISC A L. A G E N T O F T H E U N ITE D ST A T E S

Dallas, Texas, September 5,1947

TREASURY OFFERING OF NONMARKETABLE BONDS

To All Banking Institutions, and Others Concerned,
in the Eleventh Federal Reserve District:
Secretary of the Treasury Snyder today released further details with respect to the
2i/a% nonmarketable bonds for which subscriptions will be invited the latter part of
this month. These bonds are designated 2 ^ % Treasury Bonds, Investment Series A-1965.
The minimum denomination will be $5,000.
The bonds will be dated October 1, 1947, and will mature October 1, 1965. They may
not be called for redemption by the Secretary of the Treasury prior to maturity, but hold­
ers will be given the option of redeeming them on and after April 1, 1948, on the first day
of any calendar month, on one month’s notice in writing, at fixed redemption values, as
shown on the table which will be included in the offering circular.
These bonds will be available for subscription only by or for account of the following
organizations and funds doing business in the United States, its territories and possessions:
1. Insurance companies
2. Savings banks
3. Savings and loan associations and building and loan associations, and
cooperative banks
4. Pension and retirement funds, including those of the Federal, State and
local governments
5. Fraternal benefit associations
6. Endowment funds
7. Credit unions
8. Commercial and industrial banks holding savings deposits or issuing time
certificates of deposit in the names of individuals, and of corporations,
and other organizations not operated for profit.
Subscriptions from or for account of such investors (except commercial and industrial
banks) will be limited to an amount (adjusted to the next higher multiple of $5,000) not
in excess of 25 per cent of the increase in the amount of net assets between December 31,
1946, and June 30, 1947, as shown by the financial statements of the subscribers, or
$250,000, whichever is greater. Copies of the financial statements, certified to by a public
accountant or by a responsible officer of the subscriber, must accompany each subscrip­
tion for more than $250,000, or should be furnished to this bank or its branch to which
the subscription will be presented, prior to the submission of such subscription. Net
assets, for this purpose, means the amount of total assets less outstanding indebtedness
for borrowed money, and total assets of insurance companies means the total admitted
assets calculated in accordance with the laws of the states in which the company is
organized or licensed.

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)

Subscriptions from commercial and industrial banks eligible to subscribe hereunder
will be limited to an amount (adjusted to the next higher multiple of $5,000) not in excess
of 25 per cent of the increase in the combined amount of time certificates of deposit (but
only those issued in the names of individuals, and of corporations, associations, and other
organizations not operated for profit), and of savings deposits, between December 31,
1946, and June 30, 1947, as certified by an officer of the subscribing bank, or $25,000,
whichever is greater.
In addition to the bonds allotted to the above classes of subscribers, the Secretary
of the Treasury reserves the right to make an allotment of these bonds to Government
investment accounts.
The Secretary stated that he planned to open the subscription books on Monday,
September 29, but that the full terms of the offering and the official circular would prob­
ably be made available a week earlier. The subscription books will probably remain open
for a week or ten days although the Secretary will reserve the right to close the books as
to any or all subscriptions at any time without notice. Deferred payment subscriptions
will not be received. Qualified depositaries will be permitted to make payment by credit
for bonds allotted to themselves and their customers.
The Secretary reiterated his statement of August 18 that further offerings of securi­
ties suitable primarily for institutional investment needs will be made available when­
ever the situation warrants such action.
Copies of the official offering circulars and subscription forms will be forwarded to
the banks and other interested concerns as soon as they are available. Banks may wish
to advise their customers who are eligible to subscribe for these bonds so they will have
an opportunity to enter their subscriptions.
Yours very truly,
R. R. GILBERT
President.