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1 FE D E RA L R E SE R V E BANK O F NEW YORK Fiscal A g e n t o f the U nited States r Circular No. 4 0 3 2 1 L October 26, 1953 J T R E A S U R Y FINAN CING To all Banking In stitution s, and Others Concerned, in the Second Federal R eserve D istrict: The follow in g statement was made public tod a y : Secretary o f the Treasury H um phrey announced today that on "Wednes day, October 28, the Treasury will offer fo r cash subscription an issue o f $2,000,000,000, or thereabouts, o f fu lly marketable 2 % percent Treasury bonds, to be dated November 9 ,19 53 , and to mature September 15, 1961. Subscriptions from commercial banks, which fo r this purpose are defined as banks accepting demand deposits, fo r their own account will be received without deposit. A paym ent o f 10 percent o f the amount o f bonds subscribed for, not subject to withdrawal until after allotment, must be made on all other subscriptions. Commercial banks and other lenders are requested to refrain from making unsecured loans, or loans collateralized in whole or in part by the bonds subscribed fo r to cover the 1 0 percent deposits required to be paid when subscriptions are entered, and a certification b y the submitting bank that no such loan has been made w ill be required on each subscription entered by it fo r account o f its customers. The Treasury reserves the righ t to reject or reduce any subscription, and to make different percentage allotments to various classes o f subscribers. Copies o f the official offerin g circular and subscription form s w ill be m ailed to reach you on O ctober 28. S ubscriptions should be en tered p rom p tly in order to be tim ely; in the past some investors have fa iled to obtain T reasury securities because they did not enter subscriptions b efore the subscription books were closed. A llan S proul, President.
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