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CIRCULAR N O .
197
Federal Reserve Bank of New York
OFFERING OF
UNITED STATES OF AMERICA Al/z%
TREASURY CERTIFICATES OF INDEBTEDNESS
(NO FIXED MINIMUM AMOUNT)
SERIES C 1920
Dated and bearing interest from September 2, 1919.
Due February 2, 1920.
To all Banks, Trust Companies, Savings Banks, Bankers, Investment Dealers and
Principal Corporations in the Second Federal Reserve District,
Dear Sirs:
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 C 1920, dated and bearing interest
from September 2, 1919, payable February 2, 1920, with interest at the rate of four and one-half
per cent 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 or the first
installment thereof be payable on a date occurring at or before the maturity of such certificates
then on and after such date (a) such certificates will be accepted at par with an adjustment of
accrued interest in payment on the subscription price when payable at or before the maturity
or redemption of such certificates of any such notes subscribed for by and allotted to holders
of such certificates; (b) upon ten days public notice given in such manner as may be determined by the Secretary of the Treasury the certificates of this series may be redeemed as a
whole at par and accrued interest. 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 September 2, 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 the
Federal Reserve Bank of its district. Treasury certificates of indebtedness of Series VJ, maturing September 9, and VK, maturing October 7, 1919, and of Series T4 and T6, maturing September 15, 1919, (with any unmatured interest coupons attached), will be accepted at par with
an adjustment of accrued interest in payment for any certificates of the Series C 1920 now
offered which shall be subscribed for and allotted.
Asfiscalagents 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.
Yours very truly,
R. H. TREMAN,
Deputy Governor.
New York, August 25, 1919
(For your convenient reference the statement of the Treasury Department respecting the financial
plan of the Treasury for the next few weeks is attached.)
(C{ "7- 6 < r > u u W t ^
STATEMENT BY THE TREASURY DEPARTMENT ANNOUNCING THE TREASURY'S
FINANCIAL PROGRAM FOR THE NEXT FEW WEEKS
"Washington, D. C.
August 22, 1919.
"The second semi-monthly issue of Treasury certificates of indebtedness, Series B 1920,
in pursuance of the program for financing the current necessities of the government set forth
in Secretary Glass' letter of July 25, 1919, to all banks and trust companies, was oversubscribed.
"The splendid response of the banking institutions of the country to the Treasury's
plan for financing the current needs of the government as set out in the Secretary's letter of
July 25, gives assurance that the Treasury may count upon unqualified and ample support
whenever needed. The success of the first two issues, which realized a total of $1,065,953,500, has placed the Treasury in a very satisfactory cash position. This makes it possible to
make the following announcement as to the program for the next few weeks:
" 1 . There will be no fixed minimum amount for the issue of loan certificates dated
September 2, and maturing February 2, Series C, 1920. The issue will not remain open for any
stated period but will be closed without notice. Federal Reserve Banks will not assign quota
in respect to this issue to the banking institutions of their districts.
"2. There will be no issue of loan certificates upon September 15. An issue or issues
of tax certificates of longer maturity may be substituted.
" 3 . The Secretary of the Treasury has authorized the Federal Reserve Banks on and
after Tuesday, September 2, to redeem in cash before maturity at the holder's option, at par
and accrued interest to the date of such optional redemption, Treasury certificates of indebtedness of Series V J, dated April 10, 1919, and maturing September 9, 1919.
"The minimum amount of subscriptions for Series B certificates asked for was $500;000,000 and the total subscriptions aggregate $532,152,000. Payment for certificates of this
issue was made in certificates of other series in the approximate amount of $14,300,000. All
Federal Reserve Districts except Richmond equalled or exceeded their quotas.
"The results for Series B, 1920, by Federal Reserve Districts which are ranked in the
order of the percentage of their aggregate subscriptions to aggregate quotas for both issues of
the 1920 series to date are as follows:
District
Dallas
New York
Chicago
San Francisco
St. Louis
Atlanta
Philadelphia
Minneapolis
Kansas City
Cleveland
Boston
Richmond
Total
Quota
this issue
Subscriptions
this issue
$ 12,000,000
169,600,000
70,000,000
35,300,000
20,000,000
14,600,000
35,300,000
17,300,000
20,000,000
45,300,000
43,300,000
17,300,000
14,429,000
201,904,500
70,582,000
37,300,000
20,569,000
15,427,500
36,276,000
17,300,000
20,238,500
45,319,000
43,855,500
8,951,000
$500,000,000
$532,152,000"
Percent
both issues
127.5
116.2
107.3
106.9
105.6
103.7
102.7
100.6
100.5
100.0
99.0
54.1
Announcement of new issue Series C, 1920, forms part of this statement and is given
in full on the first and second pages.
@FedFRASER