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F E D E R A L R E S E R V E BAN K OF NEW YORK Fiscal A gen t of the United States I" Circular N o. 3 8 4 7 1 L May 1. 1952 TREASURY FINANCING To all Banks, and Others Concerned, in the Second Federal Reserve D istrict: Secretary o f the Treasury Snyder has announced an additional step in the T reasury’s program to raise funds required in financing the defense program from nonbank sources. On May 19,1952, there will be offered fo r subscription fo r a limited period additional amounts of the 2% percent Treasury Bonds, Investment Series B-1975-80. These bonds were originally issued A pril 1,1951; they are nontransferable, but may at the owner’s option be exchanged fo r IV2 percent five-year marketable Treasury notes to be dated A pril 1 and October 1 o f each year during the life of the bond. Subscriptions to the new 2% percent Treasury bonds may be paid fo r in full in cash, or not less than one-quarter of the amount subscribed fo r may be paid fo r in cash and the remainder by exchange, par fo r par, o f bonds o f any of the four outstanding restricted Treasury bonds with the longest maturities. The issues eligible fo r exchange under this offer ing are the 2^2 percent bonds of 1965-70, the 2% percent bonds of 1966-71, and the two issues o f 2 ^ percent bonds o f June 15 and December 15, 1967-72. The two latter issues are the issues wr hich w rere exchangeable for the 2% percent Treasury bonds originally issued A pril 1, 1951, which are now outstanding in the amount of about $11,500,000,000. Payment for the new bonds may be made in full on June 4,1952, or may be made in four equal installments on June 4, August 1, October 1, and December 1, 1952, with provision for acceleration o f payments if desired by subscribers. Commercial banks are excluded from this offering, except to the extent that they turn in restricted bonds acquired prior to December 31, 1945, fo r the partial investment of their savings accounts. Further details with respect to this offering will be made available somewhat in advance o f the opening o f the subscription books 011 May 19, 1952. A llan S proul, President. J