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FED ERAL RESER VE BANK
O F NEW YORK
F is c a l A g e n t o f th e U n ite d S ta te s
r Circular No. 4 6 63*1
L November 18, 1958 J
TREASURY FINANCING
— Offering of Two New Issues in Exchange for December Maturities
— New Program for Offerings of 26-Week Treasury Bills
To A ll B an kin g In stitution s, and Others Concerned,
in th e Second F edera l R eserve D istrict:
The following statement was made public today:
T h e T r e a s u r y D e p a r t m e n t a n n o u n c e d t o d a y t w o f u r t h e r s t e p s i n it s p r o g r a m t o a c h ie v e a m o r e
o r d e r l y s c h e d u l i n g o f it s s h o r t - t e r m d e b t m a t u r it ie s .
T h e f ir s t o f th e s e s t e p s is t h e o f f e r i n g t o h o ld e r s o f $ 9 ,8 5 3 m i l l i o n o f 3 % p e r c e n t c e r t ifi c a t e s o f
in d e b t e d n e s s m a t u r i n g D e c e m b e r 1 , 1 9 5 8 , a n d t h e h o ld e r s o f $ 2 ,3 6 8 m i l l i o n o f 2 % p e r c e n t T r e a s u r y
B o n d s m a t u r i n g D e c e m b e r 1 5 , 1 9 5 8 , th e o p p o r t u n i t y t o e x c h a n g e th e s e h o l d i n g s f o r e it h e r o f t w o n e w
is s u e s : a 3 % p e r c e n t l l ^ - m o n t h c e r t if i c a t e d u e N o v e m b e r 1 5 , 1 9 5 9 , t o b e is s u e d a t a p r i c e o f 9 9 .9 5
p e r c e n t o f f a c e v a lu e , t o y i e l d 3 .4 3 p e r c e n t , o r a 3 % p e r c e n t 2 - y e a r 5 % - m o n t h n o t e d u e M a y 1 5 ,
1 9 6 1 , t o b e is s u e d a t a p r i c e o f 9 9 % p e r c e n t o f f a c e v a lu e , t o y i e l d 3 .6 8 p e r c e n t .
W i t h t h e c o m p l e t i o n o f t h is f in a n c in g , o v e r 8 0 p e r c e n t o f o u t s t a n d i n g T r e a s u r y m a r k e t a b le s e c u r i
tie s m a t u r i n g w i t h i n t h e n e x t t e n y e a r s ( e x c l u d i n g r e g u l a r T r e a s u r y b i l l s a n d t a x a n t i c i p a t i o n
s e c u r itie s ) w ill f a l l d u e in F e b r u a r y , M a y , A u g u s t , o r N o v e m b e r.
F o r s o m e t i m e , th e T r e a s u r y h a s b e e n w o r k i n g t o w a r d s c h e d u l i n g it s m a t u r i t i e s o n t h e s e q u a r t e r l y
d a t e s t o r e d u c e t h e n u m b e r o f t im e s e a c h y e a r it s f in a n c i n g w i l l in t e r f e r e w i t h o t h e r b o r r o w e r s s u c h
a s c o r p o r a t i o n s , s ta t e s , m u n ic ip a lit ie s , e t c . ; t o m i n im iz e th e “ c h u r n i n g ” i n th e m o n e y m a r k e t s o n t h e
m a j o r q u a r t e r l y c o r p o r a t e in c o m e t a x d a t e s ; a n d f a c i l i t a t e t h e e f f e c t iv e e x e c u t i o n b y t h e F e d e r a l
R e s e r v e o f it s m o n e t a r y p o l i c y . I n a d d i t i o n , t h e p r e s e n t o f f e r i n g a ls o w o r k s i n th e d i r e c t i o n o f a m o r e
e v e n d i s t r i b u t i o n o f t h e a m o u n t s o f c e r t ifi c a t e s m a t u r i n g o n e a c h o f t h e f o u r q u a r t e r l y d a t e s .
A n o t h e r i m p o r t a n t d e b t m a n a g e m e n t o b j e c t i v e , f r o m th e s t a n d p o i n t o f m a r k e t in g t e c h n iq u e s , is
t o p l a c e o n a r o u t in e b a s is , s o f a r a s p r a c t i c a b l e , t h e r o l l - o v e r o f t h e T r e a s u r y d e b t m a t u r i n g w it h in
o n e y e a r . T h e a m o u n t o u ts ta n d in g a t a g iv e n tim e w ill te n d t o v a r y c o n s id e r a b ly , d e p e n d in g o n th e
l i q u i d i t y n e e d s o f th e e c o n o m y a n d o n th e a b i l i t y o f t h e T r e a s u r y t o e x t e n d t h e d e b t . T h e c o m p o s i
t i o n o f t h e s h o r t - t e r m d e b t , h o w e v e r , in flu e n c e s t o a d e g r e e th e a m o u n t o f m a r k e t d is t u r b a n c e o c c a
s i o n e d b y r e f i n a n c in g , a n d a ls o a ff e c t s T r e a s u r y b o r r o w i n g c o s ts .
N e w 2 6 -w e e k T r e a s u r y b ills
A s t h e s e c o n d s t e p i n it s p r o g r a m t o a c h ie v e , a b e t t e r c o m p o s i t i o n o f t h e s h o r t - t e r m d e b t , th e
T r e a s u r y a ls o a n n o u n c e d t h a t i t p la n s a r e - a r r a n g e m e n t o f t h e s t r u c t u r e o f it s w e e k ly b i l l m a t u r it ie s .
A c c o r d i n g l y , o n D e c e m b e r 1 1 , 1 9 5 8 , th e T r e a s u r y w i l l in a u g u r a t e a p r o g r a m t o m o v e g r a d u a l l y
o v e r th e n e x t 6 m o n t h s f r o m th e p r e s e n t cycl-e o f 1 3 -w e e k b i l l s ( $ 2 3 .4 b i l l i o n t o t a l ) t o a n e w c y c l e
w h i c h w i l l i n c l u d e b o t h 1 3 -w e e k a n d 2 6 -w e e k b i l l s ( $ 2 6 .0 b i l l i o n t o t a l ) . F u l l d e t a ils o f t h e p r o g r a m
w i l l b e a n n o u n c e d d u r i n g th e w e e k p r e c e d i n g t h e o f f e r i n g .
T h e s h i f t o f p a r t o f th e v o lu m e o f T r e a s u r y b i l l s o u t s t a n d i n g t o a 2 6 -w e e k c y c l e w i l l e n a b le c e r
t a i n c o r p o r a t i o n s a n d o t h e r in v e s t o r s t o m e e t t h e i r r e q u ir e m e n t s f o r a r e g u l a r b i l l w h i c h is l o n g e r
t h a n th e p r e s e n t 1 3 -w e e k m a t u r i t y . I n t h e c o u r s e o f th e t r a n s i t i o n t o t h e n e w c y c l e o f T r e a s u r y b ills ,
a t o t a l o f $ 2 .6 b i l l i o n o f n e w m o n e y w i l l b e r a i s e d d u r i n g t h e n e x t t h r e e m o n t h s , t h u s m e e t i n g m o r e
t h a n h a l f o f t h e T r e a s u r y ’s a n t i c i p a t e d c a s h b o r r o w i n g n e e d s o f $ 4 -$ 4 :V2 b i l l i o n t h r o u g h M a r c h 1 9 5 9 .
I n c r e a s e s i n th e a m o u n t o f o u t s t a n d i n g b i l l s u n d e r t h is p r o g r a m , t o g e t h e r w it h c o n t i n u i n g e f f o r t s t o
e x t e n d th e d e b t , s h o u ld p e r m i t a r e d u c t i o n i n . T r e a s u r y c e r t if i c a t e s o f in d e b t e d n e s s o u t s t a n d i n g o v e r
th e p e r i o d a h e a d , s o t h a t t h e o v e r - a l l v o l u m e o f s h o r t - t e r m d e b t w o u l d n o t b e in c r e a s e d .
E x c h a n g e o ffe r in g s
B o t h t h e n e w 3 % p e r c e n t c e r t if i c a t e a n d t h e n e w 3 % p e r c e n t n o t e w i l l b e d a t e d D e c e m b e r 1, 1 9 5 8 .
I n t e r e s t w i l l b e p a y a b l e o n t h e n e w c e r t ifi c a t e s o n a s e m ia n n u a l b a s is o n M a y 1 5 a n d N o v e m b e r 1 5 ,
1 9 5 9 . I n t e r e s t o n t h e n e w n o t e s w i l l b e p a y a b l e o n a s e m ia n n u a l b a s is o n M a y 1 5 a n d N o v e m b e r 1 5 ,
in e a ch y e a r .
E x c h a n g e s w i l l b e m a d e a s o f D e c e m b e r 1 , 1 9 5 8 , a n d i n t h e c a s e o f th e m a t u r i n g b o n d s w it h a n
a d j u s t m e n t o f in t e r e s t a s o f t h a t d a t e . C o u p o n s d a t e d D e c e m b e r 1 , 1 9 5 8 , s h o u l d b e d e t a c h e d f r o m
t h e m a t u r i n g c e r t ifi c a t e s a n d c a s h e d w h e n d u e . I n t h e c a s e o f t h e b o n d s , c o u p o n s d a t e d D e c e m b e r 1 5 ,
1 9 5 8 , m u s t b e a t t a c h e d t o t h e b o n d s w h e n s u r r e n d e r e d a n d a c c r u e d in t e r e s t f r o m J u n e 1 5 , 1 9 5 8 , t o
D e c e m b e r 1 , 1 9 5 8 , w i l l b e p a i d f o l l o w i n g a c c e p t a n c e o f t h e b o n d s . A p a y m e n t o f $ .5 0 p e r $ 1 ,0 0 0 f a c e
v a lu e o f th e n e w c e r t ifi c a t e s , a n d $ 1 .2 5 p e r $ 1 ,0 0 0 f a c e v a lu e o f t h e n e w n o t e s r e p r e s e n t i n g t h e d is c o u n t
f r o m t h e f a c e v a lu e s w i l l b e p a i d t o h o ld e r s u p o n is s u a n c e o f t h e n e w s e c u r it ie s .
T h e s u b s c r i p t i o n b o o k s w i l l b e o p e n N o v e m b e r 1 9 t h r o u g h N o v e m b e r 2 1 f o r t h is e x c h a n g e o f f e r
i n g . A n y s u b s c r i p t i o n f o r e it h e r is s u e a d d r e s s e d t o a F e d e r a l R e s e r v e B a n k o r B r a n c h , o r t o th e
T r e a s u r e r o f t h e U n i t e d S t a t e s , a n d p l a c e d in t h e m a il b e f o r e m i d n i g h t F r i d a y , N o v e m b e r 2 1 , w i l l b e
c o n s i d e r e d a s t i m e ly .
The terms of the exchange offerings are set forth in Treasury Department Circulars
No. 1017 and No. 1018, both dated November 19, 1958, copies of which are printed below.
Subscriptions will be received by this Bank as fiscal agent of the United States. C a sh
Subscriptions should be submitted in triplicate on official
subscription forms, copies of which are enclosed, and should be mailed immediately;.if filed
by telegram or letter, the subscriptions should be confirmed immediately by mail on the forms
provided. The subscription books will remain open for t h r e e d a y s o n ly , November 19, 20,
and 21. Any subscription addressed to a Federal Reserve Bank or Branch or to the Treasury
Department and placed in the mail before midnight Friday, November 21, will be considered
timely.
s u b s c r i p t i o n s w ill n o t b e r e c e iv e d .
A lfred
H ayes,
P r e s id e n t .
UNITED STATES OF AMERICA
3 % PERCENT TREASURY CERTIFICATES OF INDEBTEDNESS OF SERIES E-1959
Dated and bearing interest from D ecem ber 1, 1958
19 5 8
D epartm en t C ircular N o . 1 0 1 7
Due N ovem ber 15, 1959
TREASURY
.
F isca l Service
Bureau o f the Public D ebt
I.
O FF E R IN G O F CERT IFIC A T E S
1.
T h e S e c r e t a r y o f t h e T r e a s u r y , p u r s u a n t t o th e
a u t h o r ity o f th e S e c o n d L ib e r t y B o n d A c t , as a m e n d e d ,
in v i t e s s u b s c r ip t io n s , a t 9 9 .9 5 p e r c e n t o f t h e i r f a c e v a lu e ,
f r o m t h e p e o p l e o f t h e U n i t e d S t a t e s f o r c e r t if i c a t e s o f
in d e b t e d n e s s o f t h e U n i t e d S t a t e s , d e s i g n a t e d 3 % p e r
c e n t T r e a s u r y C e r t ifi c a t e s o f I n d e b t e d n e s s o f S e r ie s
E - 1 9 5 9 , i n e x c h a n g e f o r a lik e f a c e a m o u n t o f 3 % p e r
c e n t T r e a s u r y C e r t ifi c a t e s o f I n d e b t e d n e s s o f S e r ie s
D - 1 9 5 8 , m a t u r i n g D e c e m b e r 1, 1 9 5 8 , o r 2 ^ p e r c e n t
T r e a s u r y B o n d s o f 1 958, m a tu rin g D e ce m b e r 15, 1958,
s i n g l y o r i n c o m b i n a t i o n s a g g r e g a t i n g $ 1 ,0 0 0 o r m u lt ip le s
t h e r e o f . I n t e r e s t w i l l b e a d j u s t e d a s o f D e c e m b e r 1,
19 5 8, in th e ca se o f th e T r e a s u r y B o n d s o f 1 9 5 8, m a t u r
in g D e ce m b e r 15, 1958.
I n a ll c a s e s a c a s h a d j u s t m e n t
r e p r e s e n t i n g t h e d i s c o u n t f r o m t h e f a c e v a lu e o f t h e n e w
c e r t ifi c a t e s w i l l b e m a d e i n f a v o r o f t h e s u b s c r ib e r , a s
p r o v id e d in S e c tio n I V , P a y m e n t, h e r e o f. T h e a m o u n t o f
t h e o f f e r i n g u n d e r t h is c i r c u l a r w i l l b e l i m i t e d t o th e
a m o u n t o f m a t u r i n g c e r t if i c a t e s a n d b o n d s t e n d e r e d in
e x c h a n g e a n d a c c e p te d . T h e b o o k s w ill b e o p e n o n ly o n
DEPARTM ENT,
O f f ic e
of th e
S ecretary,
W a s h in g to n , N o v e m b e r 1 9 , 19 5 8 .
N o v e m b e r 1 9 t h r o u g h N o v e m b e r 2 1 f o r th e r e c e ip t o f
s u b s c r i p t i o n s f o r t h is is s u e .
2.
I n a d d i t i o n t o t h e o f f e r i n g u n d e r t h is c i r c u l a r ,
h o ld e r s o f t h e m a t u r i n g s e c u r it ie s a r e o f f e r e d t h e p r i v i
le g e o f e x c h a n g i n g a l l o r a n y p a r t o f s u c h s e c u r it ie s f o r
3 % p e r c e n t T r e a s u r y N o t e s o f S e r ie s B - 1 9 6 1 , w h i c h o f f e r
i n g is s e t f o r t h i n D e p a r t m e n t C i r c u l a r N o . 1 0 1 8 , is s u e d
s im u lt a n e o u s ly w i t h t h is c i r c u l a r .
II.
D E SC R IP TIO N O F CERT IFIC A T E S
1 . T h e c e r t ifi c a t e s w i l l b e d a t e d D e c e m b e r 1, 1 9 5 8 ,
a n d w i l l b e a r in t e r e s t f r o m t h a t d a t e a t th e r a t e o f 3 %
p e r c e n t p e r a n n u m , p a y a b l e o n a s e m ia n n u a l b a s is o n
M a y 15 a n d N o v e m b e r 15, 19 5 9.
T h e y w ill m a tu re
N o v e m b e r 15, 1 9 5 9. T h e y w ill n o t b e s u b je c t to c a ll fo r
r e d e m p t io n p r i o r t o m a t u r i t y .
2 . T h e in c o m e d e r i v e d f r o m t h e c e r t ifi c a t e s is s u b j e c t
t o a ll t a x e s i m p o s e d u n d e r t h e I n t e r n a l R e v e n u e C o d e
o f 1 9 5 4 . T h e c e r t ifi c a t e s a r e s u b j e c t t o e s ta t e , in h e r it a n c e ,
g i f t o r o t h e r e x c is e t a x e s , w h e t h e r F e d e r a l o r S t a t e , b u t
a r e e x e m p t f r o m a l l t a x a t i o n n o w o r h e r e a f t e r im p o s e d
o n th e p r i n c i p a l o r in t e r e s t t h e r e o f b y a n y S t a t e , o r a n y
o f th e p o s s e s s io n s o f t h e U n i t e d S t a t e s , o r b y a n y lo c a l
t a x in g a u t h o r ity .
3. T h e c e r t ifi c a t e s w i l l b e a c c e p t a b le t o s e c u r e d e p o s it s
o f p u b l i c m o n e y s . T h e y w i l l n o t b e a c c e p t a b le i n p a y
m e n t o f ta x e s .
4 . B e a r e r c e r t ifi c a t e s w it h in t e r e s t c o u p o n s a t t a c h e d
w i l l b e is s u e d i n d e n o m in a t io n s o f $ 1 ,0 0 0 , $ 5 ,0 0 0 , $ 1 0 ,0 0 0 ,
$ 1 0 0 ,0 0 0 , $ 1 ,0 0 0 ,0 0 0 , $ 1 0 0 ,0 0 0 ,0 0 0 a n d $ 5 0 0 ,0 0 0 ,0 0 0 . T h e
c e r t ifi c a t e s w i l l n o t b e is s u e d in r e g is t e r e d f o r m .
5 . T h e c e r t ifi c a t e s w i l l b e s u b j e c t t o t h e g e n e r a l r e g u
la tio n s o f th e T r e a s u r y D e p a r t m e n t, n o w o r h e r e a ft e r
p r e s c r i b e d , g o v e r n i n g U n i t e d S t a t e s c e r t ific a t e s .
III.
SUBSCR IPTION A N D A LL O TM E N T
1. S u b s c r i p t i o n s w i l l b e r e c e i v e d a t t h e F e d e r a l
R e s e r v e B a n k s a n d B r a n c h e s a n d a t th e O ffic e o f th e
T r e a s u r e r o f t h e U n i t e d S t a te s , W a s h i n g t o n . B a n k i n g
in s t i t u t i o n s g e n e r a l l y m a y s u b m it s u b s c r i p t i o n s f o r a c
c o u n t o f c u s t o m e r s , b u t o n l y th e F e d e r a l R e s e r v e B a n k s
a n d th e T r e a s u r y D e p a r t m e n t a r e a u t h o r iz e d t o a c t as
o f fic i a l a g e n c ie s .
2. T h e S e c r e t a r y o f t h e T r e a s u r y r e s e r v e s t h e r i g h t
t o r e j e c t o r r e d u c e a n y s u b s c r i p t i o n , a n d t o a l l o t le s s
t h a n t h e a m o u n t o f c e r t ifi c a t e s a p p l i e d f o r ; a n d a n y
a c t i o n h e m a y ta k e i n th e s e r e s p e c t s s h a ll b e f in a l. S u b
j e c t t o th e s e r e s e r v a t io n s , a l l s u b s c r i p t i o n s w i l l b e a llo t t e d
in f u l l . A l l o t m e n t n o t ic e s w i l l b e s e n t o u t p r o m p t l y
u p o n a llo t m e n t .
IV .
PA Y M E N T
1.
P a y m e n t f o r th e f a c e a m o u n t o f c e r t ifi c a t e s a llo t t e d
h e r e u n d e r m u s t b e m a d e o n o r b e f o r e D e c e m b e r 1, 1 9 5 8 ,
o r o n l a t e r a llo t m e n t , a n d m a y b e m a d e o n l y i n a lik e
f a c e a m o u n t o f T r e a s u r y C e r t ific a t e s o f I n d e b t e d n e s s o f
S e r ie s D -1 9 5 8 , m a t u r in g D e c e m b e r 1, 1 9 5 8 , o r T r e a s u r y
B o n d s o f 1 9 5 8 , m a t u r in g D e c e m b e r 15, 19 5 8, w h ich
s h o u l d a c c o m p a n y t h e s u b s c r ip t io n .
C ou p on s d a ted
D e c e m b e r 1 , 1 9 5 8 , s h o u ld b e d e t a c h e d f r o m t h e S e r ie s
D - 1 9 5 8 c e r t if i c a t e s b y h o ld e r s a n d c a s h e d w h e n d u e . T h e
d i s c o u n t o f $ 0 .5 0 p e r $ 1 ,0 0 0 o n c e r t if i c a t e s a l l o t t e d w ill
be p a id s u b s c r ib e r s f o llo w in g a c c e p ta n c e o f th e c e r tifi
c a t e s . I n th e c a s e o f t h e b o n d s , c o u p o n s d a t e d D e c e m
b e r 1 5 , 1 9 5 8 , m u s t be a t t a c h e d to th e b o n d s w h e n s u r
r e n d e r e d , a n d a c c r u e d in t e r e s t f r o m J u n e 1 5 , 1 9 5 8 , t o
D e c e m b e r 1, 1 9 5 8 ( $ 1 1 .5 4 3 7 2 p e r $ 1 ,0 0 0 ) p l u s t h e d is
c o u n t o f $ 0 .5 0 p e r $ 1 ,0 0 0 o n c e r t ifi c a t e s a llo t t e d w i l l b e
p a i d s u b s c r ib e r s , in t h e e a s e o f b e a r e r b o n d s f o l l o w i n g
t h e ir a c c e p t a n c e , a n d i n th e c a s e o f r e g is t e r e d b o n d s , f o l
l o w i n g d is c h a r g e o f r e g is t r a t io n .
V.
ASSIG NM ENT OF REG IST E R E D BONDS
1. T r e a s u r y B o n d s o f 1 9 5 8 in r e g is t e r e d f o r m t e n d
e r e d i n p a y m e n t f o r c e r t ifi c a t e s o f f e r e d h e r e u n d e r s h o u l d
b e a s s i g n e d b y th e r e g is t e r e d p a y e e s o r a s s ig n e e s t h e r e o f
t o “ T h e S e c r e t a r y o f th e T r e a s u r y f o r e x c h a n g e f o r
3 % p e r c e n t T r e a s u r y C e r t ifi c a t e s o f I n d e b t e d n e s s o f
S e r ie s E - 1 9 5 9 t o b e d e li v e r e d t o ................................................. ” ,
in a c c o r d a n c e w it h t h e g e n e r a l r e g u la t io n s o f th e T r e a s
u r y D e p a r t m e n t g o v e r n i n g a s s ig n m e n t s f o r t r a n s f e r o r
e x c h a n g e , a n d th e r e a fte r s h o u ld b e p r e se n te d a n d s u r
r e n d e r e d w i t h th e s u b s c r i p t i o n t o a F e d e r a l R e s e r v e
B a n k o r B r a n c h , o r t o t h e O ffic e o f th e T r e a s u r e r o f t h e
U n i t e d S t a te s , W a s h i n g t o n . T h e b o n d s m u s t b e d e l i v e r e d
a t t h e e x p e n s e a n d r is k o f th e h o ld e r s .
V I.
G E N E R A L PROVISIO N S
1 . A s fis c a l a g e n t s o f t h e U n i t e d S t a te s , F e d e r a l
R e s e r v e B a n k s a r e a u t h o r iz e d a n d r e q u e s t e d t o r e c e iv e
s u b s c r ip t io n s , t o m a k e a llo t m e n t s o n t h e b a s is a n d u p t o
t h e a m o u n t s i n d i c a t e d b y t h e S e c r e t a r y o f th e T r e a s u r y
t o th e F e d e r a l R e s e r v e B a n k s o f th e r e s p e c t iv e D i s t r i c t s ,
t o is s u e a l l o t m e n t n o t ic e s , t o r e c e iv e p a y m e n t f o r c e r t i f i
c a te s a llo t t e d , t o m a k e d e l i v e r y o f c e r t ifi c a t e s o n f u l l - p a i d
s u b s c r i p t i o n s a l l o t t e d , a n d t h e y m a y is s u e in t e r im r e
c e i p t s p e n d i n g d e l i v e r y o f t h e d e f in it iv e c e r t ific a t e s .
2 . T h e S e c r e t a r y o f t h e T r e a s u r y m a y a t a n y tim e ,
o r fr o m tim e to tim e , p r e s c r ib e s u p p le m e n ta l o r a m e n d a
t o r y r u le s a n d r e g u l a t i o n s g o v e r n i n g th e o f f e r i n g , w h i c h
w ill b e c o m m u n ic a te d p r o m p t ly to th e F e d e r a l R e s e rv e
B anks.
ROBERT
B. AN D ERSO N ,
S e c r e t a r y o f th e T r e a s u r y .
UNITED STATES OF AMERICA
3% PERCENT TREASURY NOTES OF SERIES B-1961
D ue May 15, 1961
Dated and bearing interest from D ecem ber 1, 1958
1958
D epartm en t Circular N o . 1 0 1 8
TREASURY
DEPARTM ENT,
O ffic e o f th e
F isca l Service
B ureau o f the Public Debt
I.
O FFERIN G OF NOTES
1.
T h e S e c r e t a r y o f t h e T r e a s u r y , p u r s u a n t t o th e
a u th o r ity o f th e S e c o n d L ib e r t y B o n d A c t , as a m en d ed ,
in v i t e s s u b s c r i p t i o n s , a t 9 9 % p e r c e n t o f t h e i r f a c e v a lu e ,
f r o m t h e p e o p l e o f t h e U n i t e d S t a t e s f o r n o t e s o f th e
U n it e d S ta te s , d e s ig n a te d 3 % p e r c e n t T r e a s u r y N o te s
o f S e r i e s B - 1 9 6 1 , i n e x c h a n g e f o r a lik e f a c e a m o u n t o f
S ecreta ry ,
W a s h in g t o n , N o v e m b e r 1 9 , 19 5 8 .
3 % p e r c e n t T r e a s u r y C e r t ifi c a t e s o f I n d e b t e d n e s s o f
S e r ie s D - 1 9 5 8 , m a t u r i n g D e c e m b e r 1, 1 9 5 8 , o r 2 1/2 p e r
ce n t T r e a s u ry B o n d s o f 1958, m a tu rin g D e ce m b e r 15,
1 9 5 8 , s i n g l y o r in c o m b i n a t i o n s a g g r e g a t i n g $ 1 ,0 0 0 o r
m u lt ip le s t h e r e o f . I n t e r e s t w i l l b e a d j u s t e d a s o f D e c e m
b e r 1, 1 9 5 8 , i n th e c a s e o f th e T r e a s u r y B o n d s o f 1 9 5 8 ,
m a t u r i n g D e c e m b e r 1 5 , 1 9 5 8 . I n a ll c a s e s a c a s h a d j u s t
m e n t r e p r e s e n t i n g t h e d i s c o u n t f r o m t h e f a c e v a lu e o f
t h e n e w n o t e s w i l l b e m a d e i n f a v o r o f t h e s u b s c r ib e r , a s
p r o v id e d in S e c t io n I V , P a y m e n t , h e r e o f. T h e a m o u n t o f
th e o f f e r i n g u n d e r t h is c i r c u l a r w i l l b e l i m i t e d t o t h e
a m o u n t o f m a t u r i n g c e r t if i c a t e s a n d b o n d s t e n d e r e d in
e x ch a n g e a n d a cce p te d . T h e b ook s w ill b e o p e n o n ly o n
N o v e m b e r 1 9 t h r o u g h N o v e m b e r 2 1 f o r th e r e c e ip t o f
s u b s c r i p t i o n s f o r t h is is s u e .
2.
I n a d d i t i o n t o t h e o f f e r i n g u n d e r t h is c i r c u l a r ,
h o ld e r s o f th e m a t u r i n g s e c u r it ie s a r e o f f e r e d t h e p r i v i
le g e o f e x c h a n g i n g a ll o r a n y p a r t o f s u c h s e c u r it ie s f o r
3 % p e r c e n t T r e a s u r y C e r t ifi c a t e s o f I n d e b t e d n e s s o f
S e r i e s E - 1 9 5 9 , w h i c h o f f e r i n g is s e t f o r t h i n D e p a r t
m e n t C i r c u l a r N o . 1 0 1 7 , is s u e d s im u lt a n e o u s ly w it h
t h is c i r c u l a r .
II.
D E SC R IP TIO N OF NOTES
1 . T h e n o t e s w i l l b e d a t e d D e c e m b e r 1, 1 9 5 8 , a n d w i l l
b e a r in t e r e s t f r o m t h a t d a t e a t t h e r a t e o f 3 % p e r c e n t
p e r a n n u m , p a y a b l e o n a s e m ia n n u a l b a s is o n M a y 15
a n d N o v e m b e r 1 5 , 1 9 5 9 , a n d th e r e a fte r o n M a y 15 a n d
N o v e m b e r 15 in e a ch y e a r u n t il th e p r in c ip a l a m o u n t
b e co m e s p a y a b le . T h e y w ill m a tu re M a y 15, 19 6 1, a n d
w ill n o t b e s u b je c t to c a ll f o r r e d e m p t io n p r io r to
m a tu r ity .
2 . T h e i n c o m e d e r i v e d f r o m t h e n o t e s is s u b j e c t t o
a l l t a x e s im p o s e d u n d e r th e I n t e r n a l R e v e n u e C o d e o f
1 9 5 4 . T h e n o t e s a r e s u b j e c t t o e s ta t e , i n h e r it a n c e , g i f t
o r o t h e r e x c is e t a x e s , w h e t h e r F e d e r a l o r S t a t e , b u t a r e
e x e m p t f r o m a l l t a x a t i o n n o w o r h e r e a f t e r im p o s e d o n
t h e p r i n c i p a l o r in t e r e s t t h e r e o f b y a n y S t a t e , o r a n y
o f t h e p o s s e s s io n s o f t h e U n i t e d S t a t e s , o r b y a n y l o c a l
t a x in g a u t h o r ity .
3 . T h e n o t e s w i l l b e a c c e p t a b l e t o s e c u r e d e p o s it s o f
p u b l i c m o n e y s . T h e y w i l l n o t b e a c c e p t a b le i n p a y m e n t
o f ta x es.
4 . B e a r e r n o t e s w i t h in t e r e s t c o u p o n s a t t a c h e d w i l l
b e is s u e d in d e n o m i n a t i o n s o f $ 1 ,0 0 0 , $ 5 ,0 0 0 , $ 1 0 ,0 0 0 ,
$ 1 0 0 ,0 0 0 , $ 1 ,0 0 0 ,0 0 0 , $ 1 0 0 ,0 0 0 ,0 0 0 , a n d $ 5 0 0 ,0 0 0 ,0 0 0 . T h e
n o t e s w i l l n o t b e is s u e d i n r e g is t e r e d f o r m .
5. T h e n o t e s w i l l b e s u b j e c t t o t h e g e n e r a l r e g u la t io n s
o f th e T r e a s u r y D e p a r tm e n t, n o w o r h e r e a fte r p r e
s c r ib e d , g o v e r n i n g U n i t e d S t a t e s n o t e s .
III.
SU BSCRIPTION A N D A LL O TM E N T
1. S u b s c r i p t i o n s w i l l b e r e c e i v e d a t t h e F e d e r a l
R e s e r v e B a n k s a n d B r a n c h e s a n d a t t h e O ffic e o f th e
T r e a s u r e r o f th e U n i t e d S t a te s , W a s h i n g t o n . B a n k i n g
i n s t i t u t i o n s g e n e r a l l y m a y s u b m it s u b s c r i p t i o n s f o r a c
c o u n t o f cu sto m e rs, b u t o n ly th e F e d e r a l R e s e rv e B a n k s
a n d t h e T r e a s u r y D e p a r t m e n t a r e a u t h o r iz e d t o a c t a s
o f fic i a l a g e n c ie s .
2 . T h e S e c r e t a r y o f t h e T r e a s u r y r e s e r v e s t h e r ig h t
t o r e j e c t o r r e d u c e a n y s u b s c r i p t i o n , a n d t o a l l o t le s s
th a n th e a m o u n t o f n o te s a p p lie d f o r ; a n d a n y a ctio n
h e m a y ta k e i n th e s e r e s p e c t s s h a ll b e fin a l. S u b j e c t t o
th e s e r e s e r v a t io n s , a l l s u b s c r i p t i o n s w i l l b e a l l o t t e d i n
f u ll. A llo t m e n t n o tic e s w ill b e s e n t o u t p r o m p t ly u p o n
a llo t m e n t .
IV . P A Y M E N T
1. P a y m e n t f o r t h e f a c e a m o u n t o f n o t e s a ll o t t e d
h e re u n d e r m u st b e m a d e o n o r b e fo r e D e ce m b e r 1, 1958,
o r o n l a t e r a llo t m e n t , a n d m a y b e m a d e o n l y i n a lik e
f a c e a m o u n t o f T r e a s u r y C e r t if i c a t e s o f I n d e b t e d n e s s o f
S e r ie s D - 1 9 5 8 , m a t u r i n g D e c e m b e r 1 , 1 9 5 8 , o r T r e a s u r y
B o n d s o f 19 5 8, m a t u r in g D e c e m b e r 1 5 , 19 5 8, w h ic h
s h o u ld a c c o m p a n y t h e s u b s c r i p t i o n .
C o u p o n s d a ted
D e c e m b e r 1 , 1 9 5 8 , s h o u l d b e d e t a c h e d f r o m t h e S e r ie s
D - 1 9 5 8 c e r t ifi c a t e s b y h o l d e r s a n d c a s h e d w h e n d u e . T h e
d i s c o u n t o f $ 1 .2 5 p e r $ 1 ,0 0 0 o n n o t e s a llo t t e d w i l l b e
p a i d s u b s c r i b e r s f o l l o w i n g a c c e p t a n c e o f t h e c e r t ific a t e s .
I n th e ca se o f th e b o n d s , c o u p o n s d a t e d D e c e m b e r 15,
1 9 5 8, m u st b e a t t a c h e d t o th e b o n d s w h e n s u rr e n d e re d ,
a n d a c c r u e d in t e r e s t f r o m J u n e 1 5 , 1 9 5 8 , t o D e c e m b e r 1,
1 9 5 8 ( $ 1 1 .5 4 3 7 2 p e r $ 1 ,0 0 0 ) p l u s t h e d i s c o u n t o f $ 1 .2 5
p e r $ 1 ,0 0 0 o n n o t e s a l l o t t e d w i l l b e p a i d s u b s c r ib e r s , in
th e ca se o f b e a r e r b o n d s fo llo w in g th e ir a c c e p ta n c e , a n d
i n th e c a s e o f r e g is t e r e d b o n d s , f o l l o w i n g d i s c h a r g e o f
r e g is t r a t io n .
V.
ASSIGNM ENT OF R E G IST E R E D BONDS
1. T r e a s u r y B o n d s o f 1 9 5 8 i n r e g i s t e r e d f o r m t e n d
e r e d in p a y m e n t f o r n o te s o ffe r e d h e r e u n d e r s h o u ld b e
a s s i g n e d b y t h e r e g i s t e r e d p a y e e s o r a s s ig n e e s t h e r e o f
t o “ T h e S e c r e t a r y o f th e T r e a s u r y f o r e x c h a n g e f o r 3 %
p e r c e n t T r e a s u r y N o t e s o f S e r ie s B - 1 9 6 1 t o b e d e l i v e r e d
t o .................................................................” , i n a c c o r d a n c e w i t h th e
g e n e r a l r e g u la tio n s o f th e T r e a s u r y D e p a r t m e n t g o v e r n
i n g a s s ig n m e n t s f o r t r a n s f e r o r e x c h a n g e , a n d t h e r e a f t e r
s h o u ld b e p r e s e n t e d a n d s u r r e n d e r e d w it h t h e s u b s c r i p
t i o n t o a F e d e r a l R e s e r v e B a n k o r B r a n c h , o r t o t h e O ffic e
o f t h e T r e a s u r e r o f th e U n i t e d S t a t e s , W a s h i n g t o n . T h e
b o n d s m u s t b e d e l i v e r e d a t t h e e x p e n s e a n d r is k o f
th e h o ld e r s .
V I.
G E N E R A L PROVISIO N S
1. A s f is c a l a g e n t s o f t h e U n i t e d S t a te s , F e d e r a l
R e s e r v e B a n k s a r e a u t h o r i z e d a n d r e q u e s t e d t o r e c e iv e
s u b s c r ip t io n s , t o m a k e a llo t m e n t s o n th e b a s is a n d u p t o
th e a m o u n ts in d ic a t e d b y th e S e c r e t a r y o f th e T r e a s u r y
t o th e F e d e r a l R e s e r v e B a n k s o f t h e r e s p e c t iv e D i s t r i c t s ,
t o is s u e a llo t m e n t n o t ic e s , t o r e c e iv e p a y m e n t f o r n o t e s
a llo t t e d , t o m a k e d e l i v e r y o f n o t e s o n f u l l - p a i d s u b s c r i p
t i o n s a l l o t t e d , a n d t h e y m a y is s u e i n t e r i m r e c e i p t s p e n d
i n g d e l i v e r y o f th e d e f i n i t i v e n o te s .
2 . T h e S e c r e t a r y o f t h e T r e a s u r y m a y a t a n y tim e , o r
f r o m t i m e t o tim e , p r e s c r i b e s u p p l e m e n t a l o r a m e n d a t o r y
r u le s a n d r e g u l a t i o n s g o v e r n i n g t h e o f f e r i n g , w h i c h w i l l
b e c o m m u n ic a t e d p r o m p t ly to th e F e d e r a l R e s e rv e B a n k s.
ROBERT
B. AN DERSON ,
S e c r e t a r y o f th e T r e a s u r y .
(Please type or print legibly and submit in triplicate)
ib e r ’s Reference No.
EXCHANGE
C -l
Subscription N o.
S U B S C R IP T IO N
U n i t e d S t a t e s o f A m e r i c a 3 % P e r c e n t T r e a s u r y C e r t ific a t e s o f I n d e b t e d n e s s
o f S e r ie s E -1 9 5 9 , D a t e d D e c e m b e r I , 1958, D u e N o v e m b e r 15, 1959
Im p o rta n t InMtructiona. 1 . S e c u r itie s o f d iffe r e n t issu e s s u r r e n d e r e d in e x c h a n g e m a y b e lis te d t o g e t h e r o n th e
e s u b s c r ip t io n f o r m , e x c e p t th a t a s e p a r a t e fo r m s h o u ld b e u s e d ( a ) f o r lis tin g cou p on s e c u r it ie s su r r e n d e r e d ,
f o r lis tin g reg is te r e d s e c u r it ie s s u r r e n d e r e d , a n d ( c ) f o r e a c h g r o u p o f n ew s e c u r it ie s f o r w h ic h d iffe r e n t
v e r y in s tr u c tio n s a r e g iv e n . 2 . S ig n a tu r e s a r e r e q u ir e d o n o r ig in a l o n l y ; a ll o t h e r fille d -in m a tte r s h o u ld a p p e a r
r ip lic a t e .
3 . T h e n e w c e r t ific a t e s c a n b e s u b s c r ib e d f o r a t 9 9 .9 5 p e r c e n t o f t h e ir f a c e v a lu e . P a y m e n t o f th e
o u n t o f $ 0 .5 0 p e r $ 1 ,0 0 0 o n th e c e r t ific a t e s a llo t t e d w ill b e m a d e to s u b s c r ib e r s in a c c o r d a n c e w ith th eir
r u c tio n s in d ic a t e d h e r e in a n d th e te rm s o f th e o ffe r in g .
je r a l R e s e r v e B a n k
op N e w
D a t e d a t ...............................................
Y ork ,
F i s c a l A g e n t o f th e U n it e d S ta te s,
N ew Y o r k 45, N . Y .
.....................................................................
A tte n tio n :
.1 9 5 8
G o v e r n m e n t B o n d D iv is io n
ut S ir s :
S u b je c t to th e p r o v is io n s o f T r e a s u r y D e p a r t m e n t C ir c u la r N o . 1 0 1 7, d a t e d N o v e m b e r 19, 1 9 5 8, th e
Lersigned h e r e b y s u b s c r ib e s , a t 9 9 .9 5 p e r c e n t o f t h e ir f a c e v a lu e , f o r U n ite d S ta te s o f A m e r ic a 3 % p e r c e n t
a s u r y C e r tific a te s o f In d e b te d n e s s o f S e r ie s E -1 9 5 9 , in th e a m o u n t o f $ .....................................................* a n d
3rs i n p a y m e n t t h e r e f o r a lik e p a r a m o u n t o f th e s e c u r itie s —
D e liv e r e d to y o u h e r e w ith .............................................................................................................
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T o b e w it h d r a w n f r o m s e c u r itie s h e ld b y y o u ..................................................................
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( A l l s u b s c r ib e r s s h o u ld fill i n it e m 1 b e lo w .
1.
P a y th e d i s c o u n t ( $ 0 .5 0 p e r $ 1 ,0 0 0 o n th e c e r t ific a t e s a llo t t e d ) d u e s u b s c r ib e r i n th e a m o u n t o f
..................................................:
2.
I n a d d it io n , i f b o n d s a re s u r r e n d e r e d , fill in it e m 2 b e lo w )
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B y ch eck
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B y c r e d it t o o u r r e s e r v e a c c o u n t
P a y a c c r u e d in t e r e s t o n th e b o n d s s u r r e n d e r e d f r o m J u n e 15 t o D e c e m b e r 1, 1 9 5 8 ($ 1 1 .5 4 3 7 2 p e r
0 0 0 ) i n th e a m o u n t o f $ ........................ ............................ , a s f o l l o w s :
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B y ch eck
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B y c r e d it t o o u r r e s e r v e a c c o u n t
(S ign a tu re(s) required also on Delivery Instructions below)
( D o n o t fill in b o x e s b e l o w )
G o v e r n m e n t B o n d D iv is io n
Submitted by
Canceled
Checked
Received
(Please print)
.......................
B y ...................
B y ........................
(Authorized signature(s) required)
Title.
T itle.................
Address
Subscription No.
D E L I V E R Y IN S T R U C T I O N S — E X C H A N G E S U B S C R I P T I O N
r U n it e d S t a t e s o f A m e r i c a 3 % P e r c e n t T r e a s u r y C e r t ific a t e s o f I n d e b t e d n e s s
o f S e r ie s E -1 9 5 9 , D a t e d D e c e m b e r 1, 1958, D u e N o v e m b e r 15, 1959
C E R T IF IC A T E S D E S IR E D
Denomi
nation
ces
$
IN E X C H A N G E
D is p o s e o f s e c u r itie s is s u e d as f o l l o w s :
□
1. D e liv e r o v e r th e c o u n t e r to
th e u n d e r s ig n e d
□
2. H o ld
in
s a fe k e e p in g
m em ber b a n k o n ly )
□
3. H o l d a s c o lla t e r a l f o r T r e a s
u ry T a x and L oan A ccou n t
□
4. S h ip to th e u n d e r s ig n e d
□
5. S p e c ia l in s t r u c t io n s :
(L ea v e this space blank)
Face amount
1,000
5,000
30,000
(fo r
300,000
1,000,000
TO TAL
h e u n d e r s ig n e d h e r e b y c e r tifie s th a t th e
e c u r itie s t o b e d is p o s e d o f a s in d ic a t e d
a ite m 2 o r 3 a b o v e a r e o w n e d s o le ly b y
l e u n d e r s ig n e d .
a c c e p t e d . A s e p a r a te s u b s c r ip t io n fo r m m u st b e s u b m itte d f o r
e a c h g r o u p o f s e c u r itie s f o r w h ic h d iffe r e n t d e liv e r y in s tr u c
tio n s a re g iv e n .)
S u b m itte d
by
(P lease print)
B y ....................
[Tie subscription books will open on
Vovember 19, and close at the close
business November 21, 1958.
B y.
(A u th orized sign a tu re(s) required)
T itle......................................................
Title..................
Address
(S p a c e s b e lo w a r e f o r th e u s e o f th e F e d e r a l R e s e r v e B a n k o f N e w Y o r k )
S a f f .k e e p i n g R e c o r d
Received from F e d e r a l R e s e r v e B a n k o p N e w
States obligations in the amount subscribed for.
ie c e iv e d
Subscriber
Ihecked
and
elivered
D ate...........
B y.
Y ork
the above described United
(If space is insufficient in schedules below, attach separate listing)
List o f Accounts Included in this Subscription
(Indicate amount of each issue surrendered by each customer and by yourself)
(Leave this
space blank)
N am e a n d a d d ress o f a ccou n t
(Please print or typewrite)
3 % % O o f I ’s
(D 1958)
2 % % B onds
(1 9 5 8 )
T ota l
$ ........................ $ ........................ $ ..................
*
O u r o w n a c c o u n t ........................................................
T o t a l s u b s c r i p t i o n ...........................................
$ ........................ $ ................................... $ ..................
D enom inations and Serial N umbers o f Securities Surrendered
I ssu e
3 % % C o f I ’s
( D 1958)
2 % % B onds
(1 9 5 8 )
.'5: •
............
DU PLICATEr-SECU RITY RECORDS “ IN TICK ET”
ib e r ’s Reference No.
C -2 |
Subscription No.
EXCHANGE SUBSCRIPTION
U n i t e d S t a t e s o f A m e r i c a 3 % P e r c e n t T r e a s u r y C e r t ific a t e s o f I n d e b t e d n e s s
o f S e r ie s E -1 9 5 9 , D a t e d D e c e m b e r 1, 1958, D u e N o v e m b e r 15, 1959
je r a l R eserv e B a n k o f N ew Y o rk ,
F is c a l A g e n t o f th e U n it e d S ta tes,
N ew Y o r k 45, N . Y .
D a t e d a t ....................................................................
..............................................................................19 5 8
ar S ir s :
v.
]
S u b je c t t o th e p r o v is io n s o f T r e a s u r y D e p a r t m e n t C ir c u la r N o . 1 0 1 7 , d a t e d N o v e m b e r 1 9 , 1 9 5 8 , th e
le r s i g n e d h e r e b y s u b s c r ib e s , a t 9 9 .9 5 p e r c e n t o f t h e ir f a c e v a lu e , f o r U n it e d S ta te s o f A m e r ic a 3 % p e r c e n t
;a s u r y C e r t ific a te s o f I n d e b t e d n e s s o f S e r ie s E - 1 9 5 9 , in th e a m o u n t o f $ .....................................................* a n d
d e r s in p a y m e n t t h e r e f o r a lik e p a r a m o u n t o f th e s e c u r itie s —
D e liv e r e d t o y o u h e r e w ith
.............................................................................................................
$ .........................................
T o b e w it h d r a w n f r o m s e c u r itie s h e ld b y y o u ..................................................................
$ .........................................
T o b e d e liv e r e d b y ...............................................................................................................................
..........................
* (Please fill in on the reverse side the schedule “ List o f Accounts Included in this Subscription.” )
v-..........
........ ....... ~~— ■
...........
= .....
.
.......................
=====
S E C U R IT IE S
SU RREN DERED
(L ist strial n u m b e rs
oh
reverse side)
F a ce am ount
3% %
Treasury C of Ps of Series D -1958 (detach coupons)............... $ ...........................
2 V % °7o Treasury Bonds of 1958 with Dec. 15, 1958 coupons attached $ ...........................
Total .....................................................................................
( A l l s u b s c r ib e r s s h o u ld fill i n it e m 1 b e lo w .
1.
2.
□
B y ch eck
□
$ ...........................
I n a d d it io n , i f b o n d s a r e s u r r e n d e r e d , f i l l i n it e m 2 b e lo w )
P a y th e d is c o u n t ( $ 0 .5 0 p e r $ 1 ,0 0 0 o n th e c e r t ific a t e s a llo t t e d )
.................................................. :
d u e s u b s c r ib e r in th e a m o u n t o f
B y c r e d it t o o u r r e s e r v e a c c o u n t
P a y a c c r u e d in t e r e s t o n th e b o n d s s u r r e n d e r e d f r o m J u n e 15 t o D e c e m b e r 1, 19 5 8 ($ 1 1 .5 4 3 7 2 p e r
,0 0 0 ) i n th e a m o u n t o f $ ..................................................... , a s f o l l o w s :
□
B y ch eck
□
B y c r e d it t o o u r r e s e r v e a c c o u n t
Submitted by
Subscription No.
S E C U R IT Y R E C O R D S “ O U T T IC K E T ”
D E L IV E R Y IN S T R U C T IO N S — E X C H A N G E S U B S C R IP T IO N
p U n it e d S t a t e s o f A m e r i c a 3 % P e r c e n t T r e a s u r y C e r t if ic a t e s o f I n d e b t e d n e s s
o f S e r ie s E -1 9 5 9 , D a t e d D e c e m b e r 1, 1958, D u e N o v e m b e r 15, 1959
C E R T IF IC A T E S
>ces
Denomi
nation
$
D E S IR E D
Face amount
IN E X C H A N G E
D is p o s e o f s e c u r itie s is s u e d as f o l l o w s :
□
1. D e liv e r o v e r th e c o u n t e r to
th e u n d e r s ig n e d
□
2. H o l d
in
s a fe k e e p in g
m em b er b a n k o n ly )
□
3. H o l d a s c o lla t e r a l f o r T r e a s
u ry T ax and L oan A ccou n t
□
4. S h ip t o th e u n d e r s ig n e d
□
5. S p e c ia l in s t r u c t io n s :
(L ea ve this space blank)
1,000
5,000
10,000
100,000
1,000,000
TOTAL
;
Submitted by
Address
(fo r
S O
-•
*'vvyr*ri Tr-;v.r
"
a e -:? r .m r -j< i
(If space is insufficient in schedules below, attach separate listing)
List of Accounts Included in thi6 Subscription
(Indicate amount of each issue surrendered by each customer and by yourself)
t=" ■
= ---(Leave this
sfiace blank)
■
■
■ ------
.
—
-----
Name and address of account
( Please print or typewrite)
3 % % C o f I ’s
( D 1958)
2 % % B onds
(1 9 5 8 )
$ ........................ $ ................
Total subscription.................................
$ ........................
Denominations and Serial Numbers of Securities Surrendered
I ssu e
3 % % C o f I ’s
(D 1958)
2 Y i% B onds
(1 9 5 8 )
T otal
$
TRIPLICATE— TREASURY REPORTS COPY
liber’ s Reference No.
C-3
Subscription No.
EXCHANGE SUBSCRIPTION
U n ited States o f A m e rica 3 % P e rce n t T reasu ry C ertificates o f In d eb ted n ess
o f Series E-1959, D ated D ecem b er 1, 1958, D u e N ovem b er 15, 1959
3ral R eserve B an k o f N ew
Dated at
Y ork ,
fiscal Agent of the United States,
New York 45, N. Y.
.1958
S ir s :
r
Subject to the provisions of Treasury Department Circular No. 1017, dated November 19, 1958, the
ersigned hereby subscribes, at 99.95 percent of their face value, for United States of America 3% percent
sury Certificates of Indebtedness of Series E-1959, in the amount of $........................................ * and
:irs in payment therefor a like par amount of the securities—
delivered to you herew ith...................................................................................
$...............................
r, o be withdrawn from securities held by y o u ..................................................
°ro be delivered b y .................................................................................................
$...... ........................
$...............................
''(P le a se fill in on the reverse side the schedule “ List o f Accounts Included in this Subscription.” )
SECURITIES SURRENDERED
(L ist serial numbers on reverse side)
F a c e am o u n t
3% %
Treasury C of I’s of Series D -1958 (detach coupons)...............
$.
2 Vs8% Treasury Bonds of 1958 with Dec. 15, 1958 coupons attached $.
Total .....................................................................................
$ ......................................
(All subscribers should fill in item 1 below. In addition, if bonds are surrendered, fill in item 2 below)
1. Pay the discount ($0.50 per $1,000 on the certificates allotted) due subscriber in the amount of
..................................... : □ By check
□ By credit to our reserve account
2. Pay accrued interest on the bonds surrendered from June 15 to December 1, 1958 ($11.54372 per
300) in the amount of $........................................ , as follows:
□ By check
□ By credit to our reserve account
Submitted by
Address
S ubscription N o.
NONNEGOTIABLE RECEIPT
Subscriber:
i a l R e s e r v e B a n k o f N e w Y o r k , Fiscal Agent of the United States, hereby acknowledges receipt of
ities tendered with subscription numbered as above in exchange for
3% PERCENT TREASURY CERTIFICATES OF INDEBTEDNESS OF SERIES E-1959.
ities allotted on this subscription will be delivered
jcember 1,1958, in accordance with your instructions.....................................................................................
Teller
G overn m en t B o n d D iv ision — Issues & R edem ption Section
CERTIFICATES DESIRED IN EXCHANGE
D en om i
nation
8
$
(L eave this space blank)
F a c e am ount
1,000
5,000
10,000
Dispose of securities issued as follows:
□ I- Deliver over the counter to
the undersigned
□ 2. Hold in safekeeping (for
member bank only)
□ 3. Hold as collateral for Treas
ury Tax and Loan Account
□ 4. Ship to the undersigned
□ 5. Special instructions:
100,000
1,000,000
TOTAL
...
F ederal R eserve B a n k o f N e w Y o r k ,
- - ....... - - ^ ___
Submitted by
Fiscal A gent o f the United States
(D a t e )
u are hereby authorized to deliver to
(N a m e o f representative)
Address
ose signature appears below,
$....................................... par amount
securities issued pursuant to this subscription.
Name.
(P lea se print)
(O fficia l signature required)
(S ig n a tu re o f authorized representative)
To Subscriber.- I f securities are to be delivered over the
counter at this Bank to your representative,
the authority in the box to the left should
be executed on the date o f delivery.
( "!
■”i i ' ' ' • ■ \
i. .
' .” '7 - _
?i T
f ; > T' ’ 7 H T
(If space is insufficient in schedules below, attach separate listing)
List of Accountg Ineluded in this Subscription
(Indicate amount of each issue surrendered by each customer and by yourself)
(Leave this
space blank)
3 % % C o f I ’s
( D 1958)
Name and address of account
(Phase print or typewrite)
$
2 % % B onds
(1 958)
T otal
$
/•*'
•
-s:,;
{
,■->
Our own accou n t...........................................
Total subscription................................. $........................ $ ........................ $..................
Denominations and Serial Numbers of Securities Surrendered
I ssue
3 % % C o f I ’a
( D 1958)
2 % % Bonds
(1 9 5 8 )
i
:r
'i{ j ' j ; | 0
!
1 I
T
fiber ’s Reference No.
(Please type or print legibly and submit in triplicate)
|
Subscription No.
N -l
EXCHANGE SUBSCRIPTION
For United States o f America 3% Percent Treasury Notes of Series B-1961
Dated December 1, 1958, Due May 15, 1961
Im p orta n t In stru ction s. 1 . S e c u r itie s o f d iffe re n t issu es su rren d ered in ex ch a n g e m ay b e lis te d to g e th e r on the
le su b scrip tio n fo rm , e x c e p t th a t a s e p a ra te fo rm sh ou ld b e used ( a ) f o r lis tin g cou p on se c u ritie s su rren d ered ,
f o r lis tin g r e g istered se c u ritie s su rre n d e re d , an d ( c ) f o r e a c h g ro u p o f n ew se c u ritie s f o r w hich d ifferen t
iv ery in s tru ctio n s a re g iv e n . 2 . S ig n a tu re s a r e re q u ire d on o rig in al o n ly ; a ll o th e r filled -in m a tte r shou ld a p p ear
r ip lic a te .
3 . T h e n o tes c a n b e su b s crib e d f o r a t 9 9 % p e r c e n t o f th e ir f a c e valu e. P a y m en t o f th e d isco u n t o f
2 5 p e r $ 1 ,0 0 0 on th e n o te s a llo tte d w ill b e m ad e to su b s c rib e r s in a c c o rd a n c e w ith th e ir in stru ctio n s in d ica ted
e in an d th e term s o f th e o fferin g .
R e serve B a n k
deral
op
New Y
Dated a t ....................................................
ork,
:Fiscal Agent of the United States,
I
New York 45, N. Y.
i
.............................................................1958
Attention: Government Bond Division
AR &IRS:
Subject to the provisions of Treasury Department Circular No. 1018, dated November 19, 1958, the
dersigned hereby subscribes, at a price of 99% percent of their face value, for-United States of America
i percent Treasury Notes of Series B-1961, in the amount of $.......................................... * and tenders in
pment therefor a like par amount of the securities—
Delivered to you herewith ...................................................................................
$...............................
To be withdrawn from securities held by y o u ..................................................
$...............................
To be delivered b y .................................................................................................
$...............................
•(Please fill in on the reverse side the schedule “ List o f Accounts Included in this Subscription.” )
SECURITIES SURRENDERED
(L ist serial numbers on reverse side)
Face amount
3% %
Treasury C of I’s of Series D-1958 (detach coupons)..............
$.
2l/2%
Treasury Bonds of 1958 with Dec. 15, 1958 coupons attached
$.
Total........................................................................................
$ ...................................
(All subscribers should fill in item 1 below. In addition, if bonds are surrendered, fill in item 2 below)
1. Pay the discount ($1.25 per $1,000 on the notes allotted) due subscriber in the amount of
................................ :
□ By check
□ By credit to our reserve account
2. Pay accrued interest on the bonds surrendered from June 15 to December 1, 1958 ($11.54372 per
,000) in the amount of $........................................ , as follows:
□ By check
□ By credit to our reserve account
(S ig n a tu re ( s ) requ ired also on D eliv ery In s tru c tio n s below )
(D o not fill in boxes below)
G o v e r n m e n t B o n d D iv is io n
Submitted by ...............................................................................................
Canceled
Checked
Received
(P le a se print)
B y ................................................................
B y ...........................................
(A u th orized sig n a tu re(s) required)
T itle..............................................................
T itle.....................................
Address ...........................................................................................................
Subscription No.
DELIVERY INSTRUCTIONS—EXCHANGE SUBSCRIPTION
For United States o f America 3% Percent Treasury Notes o f Series B-1961
Dated December 1, 1958, Due May 15, 1961
NOTES DESIRED IN EXCHANGE
ces
Denomi
nation
$
(Leave this space blank)
Pace amount
1,000
5,000
10,000
Dispose of securities issued as follows:
□ 1. Deliver over the counter to
the undersigned
□ 2. Hold in safekeeping (for
member bank only)
□ 3. Hold as collateral for Treas
ury Tax and Loan Account
□ 4. Ship to the undersigned
□ 5. Special instructions:
100,000
1,000,000
TOTAL
’he undersigned hereby certifies that the
ecurities to be disposed o f as indicated
item 2 or 3 above are owned solely by
e undersigned.
K
(IM P O R T A N T : No changes in delivery instructions will be
accepted. A separate subscription form must be submitted for
each group of securities for which different delivery instruc
tions are given.)
Submitted by
(P le a se prin t)
B y ...................
The subscription books will open on
November 19, and close at the close
of business November 21, 1958.
B y.
(A u th o rize d s ig n a tu re (s) required)
........................
Title.
T itle...................
Address
(Spaces below are for the use of the Federal Reserve Bank of New York)
S a f e k e e p in g R ecord
Received
IChecked
and
lelivered
Received from F e d e r a l R e s e r v e B a n k o f N e w
States obligations in the amount subscribed for.
Subscriber ..............................
D a te..............................
B y.
Y ork
the above described United
( I f space is insufficient in schedules below, attach separate listing)
List of Accounts Included in this Subscription
(Indicate amount of each issue surrendered by each customer and by yourself)
( Leave this
space blank)
3 % % C o f I ’s
(D 1958)
Name and address of account
(Please print or typewrite)
$
B onds
(1 9 5 8 )
$
Our own account .........................................
Total subscription ............................... $..................................... $........................
Denominations and Serial Numbers of Securities Surrendered
I ssu e
*
3 % % C o f I ’s
( D 1958)
2 % % B onds
(1 9 5 8 )
T otal
jriber ’a Beference No.
DUPLICATE— SECURITY RECORDS “ IN TICK ET”
Subscription No.
N-2
EXCHANGE SUBSCRIPTION
For United States o f America 3% Percent Treasury Notes of Series B-1961
Dated December 1, 1958, Due May 15, 1961
R eserve B a n k
oeral
of
New
D a t e d a t ....................................................................
Y ork,
F i s c a l A g e n t o f t h e U n it e d S ta te s ,
N e w Y o r k 45, N . Y .
ar
.............................................................1958
S ir s :
Subject to the provisions of Treasury Department Circular No. 1018, dated November 19, 1958, the
iersigned hereby subscribes, at a price of 99% percent of their face value, for United States of America
$ p e r c e n t Treasury Notes of Series B-1961, in the amount of $.......................................... # and tenders in
yment therefor a like par amount of the securities—
D e liv e r e d t o y o u h e r e w i t h ..............................................................................................................
$ .........................................
T o b e w i t h d r a w n f r o m s e c u r it ie s h e ld b y y o u ...................................................................
$ .........................................
T o b e d e liv e r e d b y ................................................................................................................................
$ .........................................
•(Please fill in on the reverse side the schedule “ List o f Accounts Included in this Subscription.” )
SECURITIES SURRENDERED
(List serial numbers on reverse side)
F a c e am o u n t
3% %
Treasury C of Ps of Series D -1958 (detach coupons)...............
$ .............................
2 i/2%
Treasury Bonds of 1958 with Dec. 15, 1958 coupons attached
$ .............................
Total.............................................................................................
$ .............................
(All subscribers should fill in item 1 below. In addition, if bonds are surrendered, fill in item 2 below)
1. Pay the discount ($1.25 per $1,000 on the notes allotted) due subscriber in the amount of
...................................... :
□ By check
Q By credit to our reserve account
2. Pay accrued interest on the bonds surrendered from June 15 to December 1, 1958 ($11.54372 per
,000) in the amount of $........................................ , as follows:
□ By check
□ By credit to our reserve account
Submitted by
Address
............................................................................................................................
]
i
Subscription No. •
SECURITY RECORDS “ OUT TICKET”
DELIVERY INSTRUCTIONS—EXCHANGE SUBSCRIPTION
For United States o f America 3% Percent Treasury Notes o f Series B-1961
Dated December 1, 1958, Due May 15, 1961
NOTES DESIRED IN EXCHANGE
aces
Denomi
nation
$
Face amount
(Leave this space blanlc)
1,000
5,000
10,000
100,000
1,000,000
TOTAL
Submitted by
Address
Dispose of securities issued as follows:
□ 1. Deliver over the counter to
the undersigned
□ 2. Hold in safekeeping
(for
member bank only)
□ 3. Hold as collateral for Treas
ury Tax and Loan Account
□ 4. Ship to the undersigned
□ 5. Special instructions:
(If space is insufficient in schedules below, attach separate listing)
List o f Accounts Included in this Subscription
(Indicate amount of each issue surrendered by each customer and by yourself)
(Leave this
space blank)
Name and address o f account
(Please print or typewrite)
3% % C o f I ’s
2V i % Bonds
(D 1958)
(1958)
Total
$ ........................ $ ........................ $
O ur own account
..............................................
Total subscription ................................... $ ........................ $ ........................ $ ...................
Denominations and Serial Numbers of Securities Surrendered
I ssu e
3 % % C o f I ’s
(D 1958)
2 Vz°fo B onds
(1 9 5 8 )
TRIPLICATE— TREASURY REPORTS COPY
je r ’ s Reference No.
N-3
Subscription No.
EXCHANGE SUBSCRIPTION
For United States o f America 3% Percent Treasury Notes of Series B-1961
Dated December 1, 1958, Due May 15, 1961
eral
R
eserve
B
an k
op
N
e w
Y
ork
Dated at
,
fiscal Agent of the United States,
New York 45, N. Y.
r
.1958
S ir s :
Subject to the provisions of Treasury Department Circular No. 1018, dated November 19, 1958, the
ersigned hereby subscribes, at a price of 99% percent of their face value, for United States of America
percent Treasury Notes of Series B-1961, in the amount of $.......................................... * and tenders in
ment therefor a like par amount of the securities—•
Delivered to you herewith ...................................................................................
$............... .'..............
To be withdrawn from securities held by y o u ..................................................
$...............................
To be delivered b y .................................................................................................
$...............................
* (Please fill in on the reverse side the schedule “ List o f Accounts Included in this Subscription., , )
SECURITIES SURRENDERED
(L ist serial numbers on reverse side)
F a ce am ount
3% %
Treasury C of Ps of Series D -1958 (detach coupons)...............
$.
2VZ%
Treasury Bonds of 1958 with Dec. 15, 1958 coupons attached
$.
Total.............................................................................................
$ ......................................
'A ll subscribers should fill in item 1 below. In addition, if bonds are surrendered, fill in item 2 below)
_ 1. Pay the discount ($1.25 per $1,000 on. the notes allotted) due subscriber in the amount of
...................................: □ By check
□ By credit to our reserve account
‘ 2. Pay accrued interest on the bonds surrendered from June 15 to December 1, 1958 ($11.54372 per
000) in the amount of $........................................ , as follows:
□ By check
□ By credit to our reserve account
Submitted by
Address
Subscription No.
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1*663
November 14, 1958
THE TREND OF BUSINESS IN
THE SECOND DISTRICT
Research Department
Federal Reserve Bank of New York
Business activity in the Second District evidently edged upward
with the national recovery during August and September, although with less
apparent vigor than could be observed elsewhere in the country. To judge
by the rising levels of earnings, department store sales, and construction
activity, the recovery has been steady. However, it has been unevenly dis
tributed throughout the District. Unemployment has fallen seasonally, but
pockets of substantial labor surplus remain and the District level of un
employment is still high.
Seasonally adjusted total nonagricultural employment has shown no
clear sign of participating in the recovery.
In contrast to the national
total, which has risen steadily, nonagricultural employment in this District
has been marked by small erratic monthly changes and no net increase since
May. Following a small increase in July, employment fell in August to the
lowest level in the past three years and rose only slightly in September.
The August and September changes were chiefly attributable to
variations in manufacturing employment, which fell 1 per cent in August to a
new recession low, 11 per cent below the cyclical peak reached in June 1957;
in September it recovered only very slightly. The chief areas of weakness
in the employment picture are in automotive and machinery manufacturing
among durable goods, and in textile, apparel, and petroleum manufacturing
among nondurables. The number of workers employed in both durable and non
durable goods manufacturing enterprises, before seasonal adjustment, was
higher in September than in July--but in both manufacturing lines the in
crease was less than seasonally expected.
Outside of manufacturing, nonfarm employment (seasonally adjusted)
apparently reached its low point in July and has been rising at an accelerat
ing pace since that time. However, nonmanufacturing employment has shown a
much smaller decline in the past year than employment in manufacturing; while
nonmanufacturing employment in September was less than 1 per cent below the
year-ago level, manufacturing employment was down more than 9 Pe** cent from
September 1957* From the viewpoint of available jobs, the recession in this
District has been concentrated in manufacturing industries and it is in this
same area that the least recovery is evident.
2
Unemployment in the District!s Major Labor Market Areas
_______________ Classification*______________
September 1957
July 195%
September 195®
Area
Connecticut
Bridgeport
Stamford-Norwalk
B
A
F
C
E
C
C
C
C
D
E
E
D
D
D
C
B
C
C
B
B
C
D
C
F
D
C
D
E
D
D
F
D
D
D
E
New Jersey
Newark
Paterson
Perth Amboy
New York
Albany-Schenectady-Troy
Binghamton
Buffalo
New York
Rochester
Syracuse
Utica-Rome
N o t e : There are currently nineteen smaller areas in the District with sub
stantial labor surplus. These areas include: in Connecticut, Ansonia and
Danbury; in New Jersey, Long Branch, Morristown-Dover, and PlainfieldSomerville; in New York, Amsterdam, Auburn, Batavia, Corning-Hornell,
Elmira, Glens Falls-Hudson Falls, Gloversville, Jamestown-Dunkirk, Kingston,
Newburgh-Middletown-Beacon, Olean-Salamanca, Oneida, Oneonta, and Watertown.
In July sixteen areas had substantial labor surplus, while in September 1957
only one area (Long Branch, New Jersey) was in this category.
*
Group
Group
Group
Group
Group
Group
Source:
A
B
C
D
E
F
-
critical labor shortage; unemployment less than 1.5 per cent.
moderate labor shortage; unemployment 1.5-2.9 per cent.
moderate labor surplus; unemployment 3*0-5*9 per cent.
substantial labor surplus; unemployment 6.0-8.9 per cent.
very substantial labor surplus; unemployment 9*0-11.9 per cent.
severe labor surplus; unemployment 12.0 per cent or more.
United States Bureau of Labor Statistics.
3
The fall upturn in business activity has significantly reduced
unemployment throughout the District, but, as in the country, the reduction
has been largely seasonal. In New York (both in the city and upstate), the
number of unemployed claimants under the State insurance programs declined
steadily from early July to late October, but part of the drop reflected the
exhaustion of benefit rights by people who had been unemployed for longer
periods. New Jersey and Connecticut have shown similar patterns, although
the decline in the number of jobless in these States has lagged behind New
York.
Despite the recent improvement, unemployment remains high in most
of the District’s major labor markets (see table). Of the thirty-one labor
markets in this District classified by the Bureau of Labor Statistics, only
two (Rochester and Stamford-Norwalk) were estimated in September to have
an unemployment rate less than the national average of 6.0 per cent (not
adjusted for seasonal variation). Binghamton, which previously was found
to have only a moderate labor surplus, was reclassified in September as an
area of substantial labor surplus. Three major labor markets in the
District showed improvement, however. The number of jobless fell below
12 per cent in Bridgeport and below 9 per cent in Paterson and Perth Amboy,
all three cases representing a significant decline in unemployment from
July to September. Only Buffalo is now considered to have a "severe" labor
surplus— 12 per cent or more of the labor force unemployed— and rehiring
by durable goods manufacturers, including motor vehicle facilities, began
to ease unemployment in this area during September.
While weekly hours worked in the District have increased since July,
the increase has been less than seasonal and has probably reflected lessthan-normal opportunity for overtime earnings. Hourly earnings in September,
however, were at about the same high level as in July and average weekly earn
ings in the District rose to a new peak, $85.23> up $1.01 from July. Total
factory payrolls expanded by almost 5 per cent in the same two-month period,
incorporating an increase in the number of workers on factory payrolls and
a rise in average wage rates.
At the same time, while incomes were rising, department store sales
in the District reached a new peak in August, and ran nearly 2 per cent
above year-ago levels in both August and September. The pattern was uneven
in the District, however, with sales depressed to levels significantly below
year-ago volume in serious unemployment areas, such as Buffalo, Bridgeport,
and Newark. In the New York metropolitan area, on the other hand, there
has been vigorous consumer buying, with the result that department store sales
have averaged nearly 4 per cent above year-ago volume since July. While
these gains partly reflect the opening of new suburban stores in New Jersey,
it is notable that in October the sales by big downtown stores rose to the
highest levels in history for that month. Outstanding consumer credit at
District commercial banks has also risen slightly in each month since
April, demonstrating a renewed willingness of consumers to accumulate in
debtedness to attain their buying goals.
4
Construction has contributed strongly to the rise of activity in
the District and promises to show continued gains in future months. Awards
of public works and utilities contracts in August and September were more
than double the value of awards in the corresponding months of 1957 or 1956 ,
with the most significant increases above the year-ago levels appearing in
New York State and in Fairfield County, where new power-generating and
transmission facilities are to be installed. Other nonresidential building
contracts in New York State and Fairfield County also turned upward to
levels substantially above the comparative periods in 1957 and 1956 , com
pensating for the low level of such awards in June and July of this year.
Awards for nonresidential building in New Jersey also increased in August
and September, but less sharply than elsewhere in the District.
Since June, contracts for residential construction in the District,
as in the nation, have been significantly above the levels of the correspond
ing months in recent years. In September, chiefly as a result of a surge
of new awards in New York, total residential building contracts turned up
again, contraseasonally, to a level 40 per cent above that of September 1956
or 1957. New York will be the chief beneficiary of the stimulus to business
activity from the high level of construction expenditures predicted by these
contract awards, while New Jersey appears to be lagging significantly.
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