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FEDERAL RESERVE BANK OF NEW YORK Fiscal A g en t o f the U nited States No. 4 5 0 5 T September [Circular 12, 1957 J T R E A S U R Y FINANCING To all Banking Institutions, and Others Concerned, in the Second Federal Reserve District: The following statement was made public today: The Treasury Department announced today that on Monday, September 16, it will offer fo r cash subscription $3 billion, or thereabouts, o f public debt securities. The offering will consist o f $500 million, or thereabouts, o f a new 4 percent 12-year Treasury b on d ; $1,750 million, or thereabouts, o f a new 4 percent 5-year Treasury note redeemable at the option o f the holder on February 15, 1960, on 3 m onths’ advance n otice; and $750 million, or thereabouts, o f the 4 percent Treasury Certificates o f Indebtedness o f Series C-1958, dated and bearing interest from August 1, 1957, and due A ugust 1, 1958. In addition, up to $100 m illion o f each o f the three issues may be allotted to Government Investment Accounts. The new bonds will be dated October 1, 1957, and will mature October 1, 1969. Payment o f not more than 50 percent o f the amount allotted on this issue may be deferred until not later than October 21, 1957. In the case o f deferred payments, accrued interest must be paid at the rate o f $0.11 a day per $1,000 from October 1 to the dates payments are completed. Interest w ill be payable on these bonds semiannually on A p ril 1 and October 1 in each year. The new notes will be dated September 26, 1957, and will mature August 15, 1962. Interest w ill be payable on a semiannual basis on February 15, 1958, and thereafter each six months until the notes become payable. Since interest will run from A ugust 1, 1957, in the case o f the additional issue o f certificates o f indebtedness, accrued interest from A ugust 1, 1957, to September 26, 1957, the date payment must be made, will be collected. This interest will amount to about $6.09 per $1,000. Interest on this issue will be payable on February 1 and A ugust 1, 1958. Subscriptions fo r each o f the three issues 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, and such banks may subscribe fo r each issue to an amount not exceeding 50 percent o f the combined capital, surplus and undivided profits o f the subscribing banks. A payment o f 2 percent o f the amount o f securities subscribed fo r must be made on all other subscriptions. The securities may be paid for b}' credit in Treasury Tax and Loan Accounts. Commercial banks and other lenders are requested to refrain from making unsecured loans, or loans collateralized in whole or in part by the securities subscribed for, to cover the 2 percent deposits required to be paid when subscriptions are entered. A n y subscription addressed to a Federal Reserve Bank or Branch, or to the Treasurer o f the United States, and placed in the mail before midnight, September 16, will be considered as timely. Subscription form s fo r the offerings will be mailed to reach you on Monday, September 16. Please note that the subscription books will be open fo r only one day, September 16. A lfred H ayes, President.
@FedFRASER