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FEDERAL RESERVE BANK OF NEW YORK Fiscal Agent of the United States r Circular No. 1402*1 L July 23, 1934 J 3 PER CENT BONDS OF 1944-49 OF THE FEDERAL FARM MORTGAGE CORPORATION To all Banks and Trust Companies in the Second Federal Reserve District and Others Concerned: The following statement was today made public by the Treasury Department: The Secretary of the Treasury, on behalf of the Federal Farm Mortgage Corporation, is today offering to the public $100,000,000, or thereabouts, 3 per cent bonds of 1944-49 of the Federal Farm Mortgage Corporation, and is inviting tenders therefor at not less than par and accrued interest through the Federal reserve banks. The bonds will be sold to the highest bidders. Tenders will be received at the Federal reserve banks or the branches thereof up to two o'clock p.m., Eastern standard time, on "Wednesday, July 25, 1934. Tenders will not be received at the Treasury Department, Washington. The bonds for which tenders are invited will form part of a series of 3 per cent bonds of 1944-49 of the Federal Farm Mortgage Corporation, dated May 15, 1934, maturing May 15, 1949, and redeemable at the option of the Corporation on and after May 15, 1944. They will be fully and unconditionally guaranteed both as to interest and principal by the United States, and will be exempt both as to principal and interest from Federal, State, municipal and local taxation (except surtaxes, estate, inheritance and gift taxes). Bearer bonds with interest coupons attached and bonds registered as to principal and interest will be issued in denominations of $100, $500, $1,000, $5,000 and $10,000. Tenders should be made on the printed forms and forwarded in the special envelopes which will be supplied by the Federal reserve banks. Each tender should state the face amount of bonds applied for and the price offered, which must be expressed on the basis of 100 with not more than three decimal places, e.g., 101.125. Each tender must be in multiples of $100. Tenders at less than par will not be considered. Tenders received at a Federal reserve bank or branch after two o'clock p.m., Eastern standard time, "Wednesday, July 25, 1934, will be disregarded. Tenders will be accepted without deposit from incorporated banks and trust companies and from responsible and recognized dealers in investment securities. Tenders from others must be accompanied in every case by a deposit of 5 per cent of the face amount of bonds bid for, except where the tender is accompanied by an express guaranty of payment by an incorporated bank or trust company. If the tender is accepted, any deposit will be applied toward payment for the bonds, and if the tender is rejected any deposit will be returned to the bidder. Immediately after the closing hour for the receipt of tenders on July 25, 1934, all tenders received at the Federal reserve banks or branches thereof up to the closing hour will be opened and public announcement of the acceptable prices will follow as soon as possible thereafter. Those submitting tenders will be advised of the acceptance or rejection thereof. In considering the acceptance of tenders, the highest prices offered will be accepted in full down to the amount required, and if the same price appears in two or more tenders and it is necessary to accept only part of the amount offered at such price, the amount accepted at such price will be prorated in accordance with the respective amounts bid for. However, the Secretary of the Treasury expressly reserves the right to reject any or all tenders or parts of tenders and to award less than the amount bid for, and any action he may take in any such respect or respects shall be final. Payment for any bonds allotted on accepted tenders must be made or completed in cash or other immediately available funds on or before August 1,1934, and must include the face amount and the premium, if any, which the bidder has agreed to pay, together with accrued interest on the face amount from May 15 to August 1, 1934. Tenders for bonds of the above series will be received at the Securities Department of the Federal Reserve Bank of New York (2nd floor, 33 Liberty Street, New York City) or at the Buffalo Branch of the Federal Reserve Bank of New York (272 Main Street, Buffalo, New York), until two o'clock p.m., Eastern Standard time (three o'clock p.m., Daylight Saving time), on "Wednesday, July 25, 1934. It is requested that tenders be submitted on special form and in special envelope enclosed herewith. A copy of Treasury Department Circular No. 515, dated July 23, 1934, relative to this issue is printed on the following pages. GEORGE L HARRISON> Governor. FEDERAL FARM MORTGAGE CORPORATION 3% BONDS OF 1944-49 Dated May 15, 1934 Due May 15, 1949 Redeemable at the option of the Corporation on any interest-payment date on and after May 15, 1944, at par and accrued interest. Interest payable May 15 and November 15 FULLY AND UNCONDITIONALLY GUARANTEED BOTH AS TO PRINCIPAL AND INTEREST BY THE UNITED STATES OF AMERICA AS EVIDENCED BY THE STATEMENT OF THE SECRETARY OF THE TREASURY ON EACH BOND. Exempt both as to principal and interest from all Federal, State, municipal, and local taxation (except surtaxes, estate, inheritance, and gift taxes). Department Scalar No. 5,5 (Public"B^Tservice) TREASURY DEPARTMENT, OFFICE OF THE SECRETARY, Washington, July 23, 1934. The Secretary of the Treasury, on behalf of the Federal Farm Mortgage Corporation, offers to the public $100,000,000, or thereabouts, 3 per cent bonds of 1944-49 of the Federal Farm Mortgage Corporation, and invites tenders therefor, through the Federal reserve banks, at not less than par and accrued interest from May 15 to August 1, 1934. DESCRIPTION OF BONDS The bonds of this issue are dated May 15, 1934, and bear interest at the rate of 3 per cent per annum, payable semiannually, on May 15 and November 15 of each year, until the principal amount becomes payable. These bonds will mature May 15, 1949. All or any part of this issue of bonds may be redeemed at par and accrued interest on May 15, 1944, or on any subsequent interest-payment date. In the event of any such redemption, notice thereof will be given in such manner as the Board of Directors of the Corporation may prescribe. Interest ceases to accrue on any bond after the redemption date of which notice is so given, whether the bond is then surrendered or not. Bearer bonds with interest coupons attached and bonds registered as to principal and interest are issued in denominations of $100, $500, $1,000, $5,000, and $10,000. Exchanges of denominations and of registered for coupon or coupon for registered bonds may be made through any Federal reserve bank or at the Division of Loans and Currency of the United States Treasury, Washington, D. C, and through any other agency designated for the purpose by the Federal Farm Mortgage Corporation. These bonds are issued under the authority of the Federal Farm Mortgage Corporation Act, approved January 31, 1934, as amended, which provides that these bonds and the income derived therefrom shall be exempt from Federal, State, municipal, and local taxation (except surtaxes, estate, inheritance, and gift taxes). Section 16 (a) of that Act contains the following provisions: "The first sentence of the eighth paragraph of section 13 of the Federal Reserve Act, as amended, is further amended by inserting before the semicolon after the words 'Section 13 (a) of this Act' a comma and the following: 'or by the deposit or pledge of Federal Farm Mortgage Corporation bonds issued under the Federal Farm Mortgage Corporation A c t ' . " Thus, the bonds are legally acceptable to secure 15-day borrowings from the Federal reserve banks. However, they do not have the circulation privilege. Section 4 of the Federal Farm Mortgage Corporation Act, as amended, also provides as follows: <l * * * Such bonds shall be fully and unconditionally guaranteed both as to interest and principal by the United States and such guaranty shall be expressed on the face thereof, and such bonds shall be lawful investments, and may be accepted as security, for all fiduciary, trust, and public funds the investment or deposit of which shall be under the authority or control of the United States or any officer or officers thereof. In the event that the Corporation shall be unable to pay upon demand, when due, the principal of, or interest on, such bonds, the Secretary of the Treasury shall pay to the holder the amount thereof which is hereby authorized to be appropriated, out of any moneys in the Treasury not otherwise appropriated, and thereupon to the extent of the amount so paid the Secretary of the Treasury shall succeed to all the rights of the holders of such bonds. * * * " TENDERS AND ALLOTMENTS Tenders will be received at the Federal reserve banks and the branches thereof up to two o'clock p.m., Eastern standard time, "Wednesday, July 25, 1934, and unless received by that time will be disregarded. Tenders will not be received at the Treasury Department, Washington. Each tender must be in multiples of $100, must state the face amount of bonds applied for, and the price offered. The price offered (not less than par) must be expressed on the basis of 100 with not more than three decimal places, e.g., 101.125. The price offered must be stated exclusive of accrued interest from May 15 to August 1, 1934. Tenders at less than par will not be considered. Tenders will be accepted without deposit from incorporated banks and trust companies and from responsible and recognized dealers in investment securities. Tenders from others must be accompanied in every case by a deposit of 5 per cent of the face amount of bonds bid for, except where the tender is accompanied by an express guaranty of payment by an incorporated bank or trust company. If the tender is accepted, any deposit will be applied toward payment for the bonds, the balance to be paid as hereinafter provided. If the tender is rejected, any deposit will be returned to the bidder. Tenders must be enclosed in envelopes, securely sealed, addressed to the Federal reserve bank, or branch, of the district, and plainly marked "Tender for 3 per cent bonds of Federal Farm Mortgage Corporation''. The Federal reserve banks will supply printed forms and special envelopes for submitting tenders. Immediately after the closing hour for the receipt of tenders on July 25, 1934, all tenders received at the Federal reserve banks or branches thereof up to the closing hour will be opened. The Secretary of the Treasury will determine the acceptable prices offered and will make public announcement thereof as soon as possible after the opening of tenders. Those submitting tenders will be advised by the Federal reserve banks of the acceptance or rejection thereof, and payment on accepted tenders must be made as hereinafter provided. In considering the acceptance of tenders, the highest prices offered will be accepted in full down to the amount required, and if the same price appears in two or more tenders and it is necessary to accept only a part of the amount offered at such price, the amount accepted at such price will be prorated in accordance with the respective amounts bid for. However, the Secretary of the Treasury expressly reserves the right to reject any or all tenders or parts of tenders, and to award less than the amount bid for, and any action he may take in any such respect or respects shall be final. PAYMENT Payment for any bonds allotted on accepted tenders must be made or completed on or before August 1, 1934, in cash or other immediately available funds, and must include the face amount and the premium, if any, which the bidder has agreed to pay, together with accrued interest on the face amount from May 15 to August 1, 1934.* In every case where payment is not so completed, the 5 per cent payment with application shall, upon declaration by the Secretary of the Treasury in his discretion, be forfeited to the United States. GENERAL PROVISIONS Federal reserve banks, as fiscal agents of the United States, are authorized and requested to receive tenders, to make allotments as indicated by the Secretary of the Treasury to the Federal reserve banks of the respective districts, to issue allotment notices, to receive payment for bonds allotted, to make delivery of bonds on full-paid allotments, and to perform such other acts as may be necessary to carry out the provisions of this circular. Pending delivery of the definitive bonds, Federal reserve banks may issue interim receipts. The Secretary of the Treasury may at any time, or from time to time, prescribe supplemental or amendatory rules and regulations governing the receipt of tenders and the sale of bonds under this circular, which will be promptly communicated to the Federal reserve banks. T . J . COOLIDGE, Acting Secretary of the Treasury. * Accrued interest from May 15 to August 1, 1934, on $1,000 face amount is $6.358695. No. NOTICE OF ALLOTMENT of FEDERAL FARM MORTGAGE CORPORATION BONDS Your tender at the rate of per $100 of face amount, and accrued interest, has been accepted in the total face amount of $ for % Federal Farm Mortgage Corporation bonds of • dated and maturing on Payment therefor must be made in cash or other immediately available funds at the Federal Reserve Bank of New York on or before To obtain delivery of the bonds, please state on the attached form in the spaces provided therefor, the denominations of the bonds desired and method by which payment will be made. If payment is to be made by check on a bank other than the Federal Reserve Bank of New York, such check should be received by us in time for collection on , otherwise it will be necessary to charge interest to the date of collection. FEDERAL RESERVE BANK OP NEW YORK, Fiscal Agent of the United States. per pro (Securities Department) FFMC—NA DUPLICATE MAIL TO No. FEDERAL RESERVE B A N K OF N E W YORK NOTICE OF ALLOTMENT of FEDERAL FARM MORTGAGE CORPORATION BONDS From Referring to our tender at the rate of per $100 of face amount, and accruedinterest J whichhasbeenacceptedinthetotalfaceamountof$ for % Federal Farm Mortgage Corporation bonds of dated and maturing on please issue and make delivery of the bonds in the denominations as instructed below. Payment will be made as indicated: By cash []] By check Q By debit to our reserve account [H (Accrued interest to on $1,000 face amount is $ ) Payment cannot be made through War Loan Deposit Account. Issue the Bonds in the Following Denominations Pieces PLEASE DO NOT USE THIS SPACE DISPOSE OF THE BONDS AS INDICATED BELOW Numbers Denomination Hold for safekeeping (for member banks only) 100 Deliver over counter 500 | 1 1,000 Deliver to your Discount Department 5,000 Bonds to be registered as shown on reverse side and after registry deliver or ship as indicated ... 1 1 10,000 Ship by registered mail .. . Totals 1] PLEASE DO NOT USE THESE SPACES Figured Checked Name Premium Post Ofiice Address Interest State Face Amount TOTAL Official signature required Released Paid Stamp Taken from Vault Counted Daily Receipt Received from FEDERAL RESERVE BAXK OF NEW YORK the above described Amount Federal Farm Mortgage Corporation bonds allotted in the amount indicated Subscriber Checked Delivered By Date ... By SCHEDULE FOR ISSUE OF REGISTERED BONDS NOTE NAMES AND ADDRESSES MUST BE PRINTED OR TYPEWRITTEN NAME IN WHICH BONDS SHALL BE REGISTERED AND POST OFFICE ADDRESS FOR INTEREST CHECKS AND MAIL. INDICATE UNDER APPROPRIATE DENOMINATIONS, NUMBER OF BONDS DESIRED AMOUNT $100 S500 $1,000 $5,000 $10,000 • - - FFMC—NA TRIPLICATE FEDERAL RESERVE B A N K OF N E W YORK FFMC NO. PENDING DELIVERY TICKET of FEDERAL FARM MORTGAGE CORPORATION BONDS Your tender at the rate of per $100 of face amount, and accrued interest, has been accepted in the total face amount of $ for % Federal Farm Mortgage Corporation bonds of dated and maturing on Partial Deliveries Made as Follows: DATE AMOUNT BALANCE DISPOSITION No TENDER FOR FEDERAL FARM MORTGAGE CORPORATION 3 PER CENT BONDS OF 1944-49 Dated May 15, 1934 Maturing May 15, 1949 Dated at. 1934. To THE FEDERAL RESERVE BANK OF NEW YORK, Fiscal Agent of the United States, New York City, N. Y. Pursuant to the provisions of Treasury Department Circular No. 515, dated July 23, 1934, the undersigned offers to pay at the rate of * per $100 of face amount, and accrued (not less than par) interest, for a total face amount of $ of the Federal Farm Mortgage Corporation 3 per cent bonds of 1944-49 therein described, or for any less amount that may be allotted, payment therefor to be made at your bank in cash or other immediately available funds on or before August 1, 1934. This tender will be inserted in special envelope entitled "Tender for 3 per cent bonds of Federal Farm Mortgage Corporation." IMPORTANT INSTRUCTIONS: 1. No tender for less than $100 will be considered, and each tender must be for an amount in multiples of $100 (face amount). Also, if more than one price is offered, a separate form must be executed at each price. 2. If the person making the tender is a corporation, the form should be signed by an officer of the corporation authorized to make the tender, and the signing of the form by an officer of the corporation will be construed as a representation by him that he has been so authorized. If the tender is made by a partnership, it should be signed by a member of the firm, who should sign in the form " , a copartnership, by , a member of the firm." 3. Tenders will be accepted without deposit from incorporated banks and trust companies and from responsible and recognized dealers in investment securities. Tenders from others must be accompanied in every case by a deposit of 5 per cent of the face amount of bonds bid for, except where the tender is accompanied by an express guaranty of payment by an incorporated bank or trust company. If the tender is accepted, any deposit will be applied toward payment for the bonds, and if the tender is rejected any deposit will be returned to the bidder. 4. If the language of this form is changed in any respect, which, in the opinion of the Secretary of the Treasury, is material, the tender may be disregarded. Payment by credit through War Loan Deposit Account will not be permitted. Before signing fill in all required spaces. Bank or Trust Company Post Office Address. State Official signature required. SPACES BELOW ABE FOE THE USE OP THE FEDERAL RESERVE BANK Examined Allotment Received Carded Classified Figured Checked FMC-1 Checked Ledger Advised Recorded Acknowledged Disposition Method of Payment Window Amount Custody * Price should be expressed on the basis of 100, with not more than three decimal places, e. g., 101.125. Fractions must not be used. Date Released Mail By Other Departments
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