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FED ERAL RE SE R V E BANK OF NEW YORK F iscal A g en t o f the U nited States r Circular N o. 4 6 4 2 T L September 25, 1958 J TREASURY FINANCING T o A ll Banking Institutions, and Others Concerned, in the Second Federal R eserve D istrict: The follow in g statement was made public tod a y: T he T reasu ry D ep a rtm en t a n nou n ced tod a y that o n M on d ay, S eptem ber 29, it w ill offer fo r cash su b scrip tion $1 b illion , or thereabouts, o f 3*4 p e rce n t 13-m onth T reasu ry notes a t p ar, an d $2 ^ b illion , or thereabouts, o f 219-day special T rea su ry b ills (t o be issued on a fix ed -p rice basis) at 98.023, at w hich p rice the y ie ld to the p u rch a ser is ap p rox im a tely 3.25 p ercen t p e r annum . I n add ition , u p to $100 m illion o f the notes m a y be allotted to G overnm ent Investm ent A cco u n ts. T he notes w ill be dated O ctob er 10, 1958, and w ill m ature N ovem ber 15, 1959. In terest w ill be pa ya b le o n a sem iann u al basis on M a y 15 an d N ovem ber 15, 1959. T he T reasu ry bills w ill be dated O ctober 8, 1958, an d w ill m ature M a y 15, 1959. S u bscrip tion s fo r either issue fro m com m ercial banks, w h ich fo r this p u rp ose are defined as banks a ccep tin g dem and deposits, f o r th e ir ow n a ccou n t, w ill be received w ith ou t d ep osit b u t w ill be restricted in the case o f the notes to an am ount n o t ex ceed in g 25 p ercen t, an d in the case o f the bills n o t ex ceed in g 50 p ercen t, o f the com bined ca p ita l, su rp lu s an d u n d ivid ed profits o f th e su b scrib in g bank. P a y m en t o f 2 p e rce n t o f th e am ou n t o f notes or bills su bscribed fo r m ust be m ade on all o th e r subscriptions. T he new securities m ay be p a id f o r b y cred it in T re a su ry T a x an d L oa n A ccou n ts. C om m ercial banks an d oth er lenders are requested to re fr a in fro m m aking unsecured loans, o r loans collateralized in whole o r in p a rt b y the securities su bscribed fo r , to cover the deposits req u ired to be p a id w hen su b scrip tion s are entered. A n y su b scrip tion f o r either issue addressed to a F e d e ra l R eserve B a n k o r B ra n ch , o r to the T rea su rer o f the U n ited States, an d p la ce d in the m ail b e fo re m idnight, Septem ber 29, w ill be con sidered as tim ely. Circulars and subscription form s w ill be m ailed to reach you by Monday, Septem ber 29. A lfred H ayes, President.
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