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FEDERAL RESERVE BANK
OF NEW YORK
Certificates of Indebtedness
Department
("Circular N o . 569"
[.September 10, 1923.
$200,000,000
(or thereabouts)
September 15th Offering of 4V4 Per Cent. Treasury Certificates
Maturing in Six Months
Subscription Books Open September 10
To all Banks, Trust Companies, Savings Banks, Bankers, Investment Dealers,
Principal Corporations and Others Concerned in the Second Federal Reserve District:
The Secretary of the Treasury today offers for subscription a new series of
Treasury certificates of indebtedness running for six months from September 15,
1923, and bearing interest at the rate of 4 ^ per cent, on a semiannual basis. In
announcing the offering Secretary Mellon made the following statement:
The Treasury is today announcing its September financing, which takes the
form of an offering of six months 4)4 per cent. Treasury certificates of indebtedness,
dated September 15, 1923, and maturing March 15, 1924, in the principal amount
of $200,000,000, or thereabouts. The Treasury will accept in exchange for the
new certificates at par, with adjustment of accrued interest, any Treasury certificates maturing September 15, 1923. About $290,000,000 of Treasury certificates
will become payable on September 15, 1923, together with interest on the public
debt of approximately $145,000,000. Called and matured Victory notes in the
aggregate amount of $53,000,000 and matured War Savings certificates of about
$30,000,000 still outstanding are coming in slowly for payment. The Treasury
expects to receive $340,000,000 in income tax payments during the September
period.
The present offering of certificates is intended, with the balances already on
hand, to provide for the payments coming due in September over and above tax
receipts and to cover the Treasury's further cash requirements. The Treasury
will have no further payments of principal of the public debt to meet until December 15, 1923, and it is expected that no additional financing will be necessary before
that date.
The subscription books for this issue are now open and applications will be
received by this bank. The terms of the offering are given in full on the next page.
Very truly yours,
BENJ. STRONG,
Governor.
(New Issue)
Federal Reserve Bank of New York
Offering of $ 2 0 0 , 0 0 0 , 0 0 0 (or thereabouts)
United States of America
Four and One Quarter Per Cent. Treasury Certificates of Indebtedness
SERIES TM2-1924
Dated and bearing interest from September 15, 1923.
Due March 15, 1924.
To all Banks, Trust Companies, Savings Banks, Bankers, Investment Dealers,
Principal Corporations and Others Concerned in the Second Federal Reserve District:
The Secretary of the Treasury, under the authority of the act approved September 24, 1917,
as amended, offers for subscription, at par and accrued interest, through the Federal Reserve Banks,
Treasury certificates of indebtedness of Series TM2-1924, dated and bearing interest from September 15, 1923, payable March 15, 1924, with interest at the rate of four and one quarter per cent,
per annum on a semiannual basis.
Applications will be received at the Federal Reserve Banks.
Bearer certificates will be issued in denominations of $500. $1,000, $5,000, $10,000, and $100,000.
The certificates will have one interest coupon attached, payable March 15, 1924.
The certificates of said series shall be exempt, both as to principal and interest, from all taxation
now or hereafter imposed by the United States, any State, or any of the possessions of the United
States, or by any local taxing authority, except (a) estate or inheritance taxes, and (b) graduated
additional income taxes, commonly known as surtaxes, and excess-profits and war-profits taxes,
now or hereafter imposed by the United States, upon the income or profits of individuals, partnerships, associations, or corporations. The interest on an amount of bonds and certificates authorized
by said act approved September 24, 1917, and amendments thereto, the principal of which does
not exceed in the aggregate $5,000, owned by any individual, partnership, association, or corporation,
shall be exempt from the taxes provided for in clause (b) above.
The certificates of this series will be accepted at par, with an adjustment of accrued interest,
during such time and under such rales and regulations as shall be prescribed or approved by the
Secretary of the Treasury, in payment of income and profits taxes payable at the maturity of the
certificates. The certificates do not bear the circulation privilege.
The right is reserved to reject any subscription and to allot less than the amount of certificates
applied for and to close the subscriptions at any time without notice. The Secretary of the Treasury
also reserves the right to make allotment in full upon applications for smaller amounts, and to
make reduced allotments upon, or to reject, applications for larger amounts, and to make classified
allotments and allotments upon a graduated scale; and his action in these respects will be final.
Allotment notices will be sent out promptly upon allotment, and the basis of allotment will be
publicly announced.
Payment at par and accrued interest for certificates allotted must be made on or before
September 15, 1923, or on later allotment.
After allotment and upon payment Federal Reserve
Banks may issue interim receipts pending delivery of the definitive certificates. Any qualified
depositary will be permitted to make payment by credit for certificates allotted to it for itself and
its customers up to any amount for which it shall be qualified in excess of existing deposits, when so
notified by the Federal Reserve Bank of its district.
Treasury certificates of indebtedness of Series
TSand TS2-1923, both maturing September 15, 1923, will be accepted at par, with an adjustment of
accrued interest, in payment for any certificates of the Series TM2-1924 now offered which shall be
subscribed for and allotted.
As fiscal agents of the United States, Federal Reserve Banks are authorized and requested to
receive subscriptions and to make allotments on the basis and up to the amounts indicated by the
Secretary of the Treasury to the Federal Reserve Banks of the respective districts.
New York, September
Yours very truly,
BENJ. STRONC;,
Governor.
10. 1923.
@FedFRASER