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(New Issues) CIRCULAR N O . 389. Federal Reserve Bank of New York Offering of $ 3 0 0 , 0 0 0 , 0 0 0 (or thereabouts) United States of America Treasury Certificates of Indebtedness Dated and bearing Interest from August 1, 1921 Series TM 2—1922, 5 ^ Per Cent. Due March 15, 1922 Series B—1922, 5 ^ Per cent. Due August 1, 1922 To all Banks, Trust Companies, Savings Banks, Bankers, Investment and Principal Corporations in the Second Federal Reserve District: Dealers 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, in two series, both dated and bearing interest from August 1, 1921, the certificates of Series T M 2—1922, being payable on March 15, 1922 with interest at the rate of five and one-quarter per cent, per annum, and the certificates of Series B—1922, being payable on August 1, 1922, with interest at the rate of five and one-half per cent, per annum payable semiannually. Applications will be received at the Federal Reserve Banks. Bearer certificates will be issued in denominations of $500, $1,000, $5,000, $10,000, and $100,000. The certificates of Series TM 2—1922 will have one interest coupon attached, payable March 15, 1922, and the certificates of Series B—1922 two interest coupons attached payable February 1,1922, and August 1, 1922. The certificates of said series 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 warprofits 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 (6) above. The certificates of these series do not bear the circulation privilege, and the certificates of Series B—1922 will not be accepted in payment of taxes. The certificates of Series TM 2—1922 will be accepted at par, with an adjustment of accrued interest, during such time and under such rules and regulations as shall be prescribed or approved by the Secretary of the Treasury, in payment of income and profits taxes payable at the maturity of the certificates. The right is reserved to reject any subscription and to allot less than the amount of certificates of either or both series applied for and to close the subscriptions as to either or both series at any time without notice. Payment at par and accrued interest for certificates allotted must be made on or before August 1, 1921, 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 C—1921, maturing August 16, 1921, 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 TM 2—1922 or B—1922 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. Yours very truly, BENJ. STRONG, New York, July 27, 1921 Governor.