Full text of Federal Reserve Bank of New York Circulars : 4572. Treasury Cash Financing

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FED ERAL RE SE R V E BANK
OF NEW YORK
Fiscal Agent of the United States
r C ir c u la r N o . 4 5 7 2 1
L F e b ru a ry 25, 1958 J

TREASURY CASH FINANCING

To A ll Banking Institutions, and Others Concerned,
in the Second Federal R eserve D istrict:

The following statement was made public today:
The Treasury Department announced today that the Treasury bond 011 which the cash
subscription books will be open on Friday, February 28, will be dated February 28, 1958,
and will bear interest from that date at the rate of 3 percent per annum, and will mature
August 15, 1966. The amount o f the offering is $1,250 million or thereabouts, and in addi­
tion, up to $100 million may be allotted to Government Investment Accounts. Interest will
be payable on a semiannual basis on August 15, 1958, and thereafter each six months until
the bonds become payable. Delivery o f the new bonds will be made on March 10. The books
will be open only for one day, on February 28.
Subscriptions from commercial banks, which for this purpose are defined as banks
accepting demand deposits, for their own account will be received without deposit but
will be restricted in each case to an amount not exceeding 25 percent of the combined capital,
surplus and undivided profits o f the subscribing bank. A payment of 15 percent of the
amount of bonds subscribed for must be made on all other subscriptions, and this payment
must be forwarded with the subscriptions in immediately available funds, or by credit in a
Treasury Tax and Loan Account o f the bank through which the subscription is entered,
to the Federal Reserve Bank or Branch, or to the Office of the Treasurer of the United
States. Following allotment, any portion of the 15 percent payment in excess o f the amount
of bonds allotted will be returned to the subscribers. The new bonds may be paid for by
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 bonds subscribed for, to cover the
15 percent deposits required to be paid when subscriptions are entered.
Any subscription addressed to a Federal Reserve Bank or Branch, or to the Treasurer
of the United States, and placed in the mail before midnight February 28, will be considered
as timely.

Circulars and subscription forms will be mailed to reach you by Friday,
February 28.




A

lfred

H

ayes,

President.