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FEDERAL RESERVE BANK OF N EW YORK Fiscal Agent of the United States J* Circular No. 5 5 6 6 1 L October 28, 1964 J Treasury Announces November Refunding Terms To All Banking Institutions, and Others Concerned, in the Second Federal Reserve District: The following statement was made public today by the Treasury Department: The Treasury will borrow $91/4 billion, or thereabouts, through the issuance o f 18-month 4 percent Treasury Notes, at par, dated November 15, 1964, fo r the purpose o f borrow ing new cash and o f paying off in cash $8.7 billion o f the follow ing Treasury securities maturing November 15, 1964: $3,267 million of 4 % percent Notes o f Series C-1964, dated February 15, 1960; and $5,441 million o f 3 % percent Notes of Series F-1964, dated A ugust 15, 1963. The new notes will be dated November 15, 1964, and will mature May 15, 1966. Interest will be pay able semiannually on May 15 and November 15, 1965, and on May 15, 1966. The notes will be made available in registered as well as bearer form . A ll subscribers requesting registered notes will be required to furnish appropriate identifying numbers as required on tax returns and other documents submitted to the Internal Revenue Service. Paym ent and delivery date fo r the notes will be November 16. Payment may be made in cash, or in 4 % percent Notes of Series C-1964 or 3 % percent Notes of Series F-1964, which will be accepted at par, in pay ment or exchange, in whole or in part, fo r the notes subscribed for, to the extent such subscriptions are allotted by the Treasury. The new issue may not be paid fo r by credit in Treasury Tax and Loan Accounts. The subscription books will be open only on M onday, N ovem ber 2. A n y subscriptions with the required deposits addressed to a Federal Reserve Bank or Branch, or to the Treasurer o f the United States, and placed in the mail before midnight, November 2, 1964, will be considered timely. Subscriptions from commercial banks, fo r their own account, will be restricted in each case to an amount not exceeding 50 percent o f the combined capital (not including capital notes or debentures), sur plus and undivided profits of the subscribing bank. Subscriptions from commercial and other banks fo r their own account, Federally insured savings and loan associations, States, political subdivisions or instrumentalities thereof, public pension and retirement and other public funds, international organizations in which the United States holds membership, foreign central banks and foreign States, dealers who make prim ary markets in Government securities and report daily to the Federal Reserve Bank of New Y ork their positions with respect to Government securities and borrowings thereon, Government Investment Accounts, and the Federal Reserve Banks will be received without deposit. Subscriptions from all others must be accompanied by payment o f 2 percent (in cash, or Treasury Notes o f Series C-1964 or Series F-1964, maturing November 15, 1964, at par) of the amount o f notes applied fo r not subject to withdrawal until after allotment. The Secretary of the Treasury reserves the right to reject or reduce any subscription, to allot less than the amount o f notes applied for, and to make different percentage allotments to various classes of sub scribers; and any action he may take in these respects shall be final. The basis o f the allotment will be publicly announced, and allotment notices will be sent out prom ptly upon allotment. Subject to the reservations in the preceding paragraph, all subscriptions from States, political sub divisions or instrumentalities thereof, public pension and retirement and other public funds, international organizations in which the United States holds membership, foreign central banks and foreign States, Gov ernment Investment Accounts, and the Federal Reserve Banks, will be allotted in fu ll upon the submission of a written certification by the subscriber that the amount o f the subscription does not exceed the amount o f the two maturing securities owned or contracted fo r purchase fo r value, at 4 p.m., Eastern Standard time, October 28, 1964. Should any such subscriber enter any subscription which does not carry the certifi cation as to ownership of the eligible securities, any and all subscriptions received from such subscriber will be allotted on the basis of the allotment to be publicly announced fo r other classes o f subscribers. A ll subscribers are required to agree not to purchase or to sell, or to make any agreements with respect to the purchase or sale or other disposition o f any o f the new 4 percent notes at a specific rate or price until after midnight, November 2, 1964. Commercial banks in submitting subscriptions will be required to certify that they have no beneficial interest in any of the subscriptions they enter for the account o f their customers, and that their customers have no beneficial interest in the banks’ subscriptions for their own account. The official offering circular and subscription form for the new notes will be mailed to reach you by Monday, November 2. 19 14 A lfr e d FIFTIETH ANNIVERSARY IIa y e s , 19 6 4 President.
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