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CIRCULAR NO. 189

FEDERAL RESERVE BANK
OF N E W YORK
July 25, 1919

UNITED STATES OF AMERICA
FOUR AND ONE-HALF PER CENT TREASURY CERTIFICATES OF INDEBTEDNESS
SERIES A 1920
Dated and bearing interest from August 1, 1919.

Due January 2, 1920.

To ALL BANKS, TRUST COMPANIES AND SAVINGS BANKS IN THE
SECOND FEDERAL RESERVE DISTRICT,
DEAR SIRS :

The Treasury Department today announced a new offering of Treasury Certificates of
Indebtedness as follows:
"The Secretary of the Treasury under the authority of the Act approved September 24,
1917, as amended, offers for subscription at par and accrued interest, through the Federal Reserve
Banks, Treasury Certificates of Indebtedness, Series A 1920, dated and bearing interest from
August 1, 1919, payable January 2, 1920, with interest at the rate of 4J^% per annum.
"Applications will be received at the Federal Reserve Banks.
"Bearer certificates, without coupons, will be issued in denominations of $500, $1,000,
$5,000, $10,000 and $100,000. Said certificates shall be exempt both as to principal and interest
from all taxation now or hereafter imposed by the United States, any State, or any of the possessions of the United States, or by any local taxing authority except (a) estate or inheritance
taxes and (b) graduated additional income taxes commonly known as surtaxes and excess profits
and war profits taxes now or hereafter imposed by the United States upon the income or profits
of individuals, partnerships, associations or corporations. The interest on an amount of bonds
and certificates authorized by said act, approved September 24, 1917, and amendments thereto,
the principal of which does not exceed in the aggregate $5,000 owned by any individual, partnership, association or corporation shall be exempt from the taxes provided for in clause (b) above.
"If any notes should be offered for subscription by the United States after the offering and
before the maturity of such certificates, and the subscription price of such notes be payable on or
before the maturity of such certificates then such certificates will be accepted at par with adjustment of accrued interest in payment on the subscription price when payable of any such notes
subscribed for by and allotted to holders of such certificates.
"The certificates of this series do not bear the circulation privilege and will not be accepted
in payment of taxes or on Victory Loan subscriptions. The right is reserved to reject any subscription and to allot less than the amount of certificates applied for and to close the subscriptions
at any time without notice. Payment at par and accrued interest for certificates allotted must
be made on or before August 1, 1919 or on later allotment.
"After allotment and upon payment Federal Reserve Banks may issue interim receipts
pending delivery of the definitive certificates.
"Any qualified depositary will be permitted to make payment by credit for certificates
allotted to it for itself and its customers up to any amount for which it shall be qualified in excess
of existing deposits when so notified by lyederal Reserve Banks.



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"Treasury Certificates of Indebtedness of Series V H, maturing August 12, V J , maturing
September 9, and V K, maturing October 7, 1919, will be accepted at par with an adjustment
of accrued interest in payment for any certificates of the Series A 1920, now offered, which shall
be subscribed for and allotted.
"As fiscal agents of the United States, Federal Reserve Banks are authorized and requested
to receive subscriptions and to make allotment in full in the order of the receipt of applications
up to amounts indicated by the Secretary of the Treasury to the Federal Reserve Banks of the
respective districts.
TREASURY DEPARTMENT,

CARTER GLASS,

OFFICE OF THE SECRETARY,

July 26, 1919.

Secretary of the Treasury.

Department Circular No. 159.
(Loans and Currency.)"




Yours very truly,
R. H. TREMAN,

Deputy Governor.

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