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FEDERAL RESERVE BANK OF NEW YORK Fiscal Agent of the United States r Circular N o. 5 2 9 3 1 L January 30, 1963 J Treasury Announces $9 .5 Billion Exchange and Outlines Future Financing Plans To All Banking Institutions, and Others Concerned, in the Second Federal Reserve D istrict: The following statement was made public today by the Treasury Department: In announcing today its plans for the refunding of $9.5 billion o f securities maturing February 15, 1963, the Treasury said that this operation is to be viewed as the first step in a probable three-phase program. Subject to future market developments, the Treasury plans, upon completion of the February 15 financing, to announce a “ ju n io r ” advance refunding adapted to the requirements of the market at that time. The Treasury is also considering the employment for the second time of the newly developed tech nique for offering iong-term bonds at competitive bidding. Subject to market developments, it is likely that the bidding for this offering o f long-term bonds will occur during the first half o f A pril. The holders of Treasury securities maturing February 15, aggregating $9,465 million, will have the right to exchange them for any of the follow ing securities: percent Treasury certificates of indebtedness, to be dated February 15, 1963, and to mature February 15, 1964, at p a r; or A n additional amount of 3 % percent Treasury Bonds of 1968, originally issued A p ril 18, 1962, maturing August 15, 1968, at par, of which $1,258 million are now outstanding. Cash subscriptions for the new securities will not be received. The maturing issues eligible fo r exchange are as follow s: $5,719 million o f 3Y> percent Treasury Certificates of Indebtedness o f Series A-1963, dated February 15, 1962, $1,487 million o f 2 % percent Treasury Notes o f Series A-1963, dated A pril 15, 1958, and $2,259 million o f 3x/4 percent Treasury Notes o f Series E-1963, dated November 15, 1961. Exchanges of the maturing 3l/-2 percent certificates and the 2 % percent and S1/^ percent notes will be made in a like face amount o f the new securities as o f February 15. Coupons dated February 15 on the maturing certificates and notes should be detached and cashed when due. The subscription books will be open only on February 4 through F ebruary 6 for the receipt o f sub scriptions. Subscriptions for any issue addressed to a Federal Reserve Bank or Branch, or to the Office of the Treasurer of the United States, and placed in the mail before midnight February 6, will be con sidered as timely. The new securities will be delivered February 15, 1963. The new certificates o f indebt edness will be available only in bearer form. The new bonds will be made available in registered as wrell as bearer form. A ll subscribers requesting registered bonds will be required to furnish appropriate identi fyin g numbers as required on tax returns and other documents submitted to the Internal Revenue Service. Interest on the 3 % percent certificates o f indebtedness will be paid on August 15, 1963, and February 15, 1964. Interest on the 3 % percent Treasury Bonds of 1968 is payable semiannually on February 15 and August 15. Circulars and subscription forms for the February refunding will be mailed to reach you by Monday, February 4. A lfred H ayes, President.
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