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FEDERAL RESERVE BANK OF N EW YORK Fiscal A gen t o f the United States r Circular No. 5 0 3 5 'I I January 25, 1967 J Treasury Announces February Refunding Terms To All Banking Institutions, and Others Concerned, in the Second Federal Reserve D istrict: The following statement was made public today by the Treasury Departm ent: The Treasury will borrow $7.5 billion, or thereabouts, through the issuance o f 15-month and 5-year Treasury notes for the purpose o f paying off in cash a like amount o f Treasury securities maturing February 15, 1967. The amount o f the maturing issues held by the public is $3.8 billion. The notes to be issued a r e : $5.5 billion of 4 % percent Treasury Notes o f Series B-1968, to be dated February 15, 1967, and to mature M ay 15, 1968, at a price o f 99.875 (to yield about 4.85 percent) ; and $2 billion of 4% percent Treasury Notes o f Series A-1972, to be dated February 15, 1967, and to mature February 15, 1972, at a price o f 99.625 (to yield about 4.84 percent). The m aturing securities a r e : $2,358 million o f 3 % percent Treasury Notes o f Series B-1967, dated March 15, 1963; and $5,151 million of 4 percent Treasury Notes o f Series C-1967, dated A ugust 13, 1965. Interest will be payable on the 15-month notes on M ay 15 and November 15, 1967, and M ay 15, 1968, and on the 5-year notes semiannually on February 15 and A ugust 15. 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 iden tifyin g numbers as required on tax returns and other documents submitted to the Internal Revenue Service. Payment and delivery date for the notes will be February 15. Payment may be made in cash, or in 3 % percent Notes of Series B-1967, or 4 percent Notes o f Series C-1967, which will be accepted at par, in payment or exchange, in whole or in part, for the notes subscribed for, to the extent such sub scriptions are allotted by the Treasury. The notes may not be paid fo r by credit in Treasury Tax and Loan Accounts. The subscription books will be open only on Monday, January 30. 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, January 30, 1967, 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), surplus, and undivided profits o f 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 mem bership, foreign central banks and foreign States, dealers who make prim ary markets in Government securities and report daily to the Federal Reserve Bank o f 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 B-1967 or C-1967, maturing February 15, 1967, at par) o f the amount o f notes applied for, not subject to withdrawal until after allotment. ( over) The Secretary o f 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 o f subscribers; and any action he may take in these respects shall be final. The bases o f the allotments 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 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, Government Investment Accounts, and the Federal Reserve Banks, will be allotted in fu ll if a statement is submitted certifyin g that the amount o f the subscription does not exceed the amount o f the two m aturing notes owned or contracted fo r purchase for value at 4 p.m., Eastern Standard time, January 25, 1967. A n y such subscriber may enter an additional subscription subject to a percentage allotment. 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 of, any o f the notes subscribed for under this offering at a specific rate or price until after midnight, January 30, 1967. Commercial banks in submitting subscriptions will be required to certify that they have no beneficial interest in any o f 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 circulars and subscription forms for the new securities will be mailed to reach you by Monday, January 30. A lfred H ayes, President.
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