View original document

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

FED ER AL RESERVE BANK
O F NEW YORK
Fiscal Agent of the United States

J C ir c u la r N o. 6194
|_ J u ly 31, 1968

To All Banking Institutions, and Others Concerned,
in the Second Federal Reserve District:

The following statement was made public today by the Treasury Department:
TREASURY ANNOUNCES AUGUST FINANCING
The Treasury will borrow $5.1 billion, or thereabouts, from the public through the i s ­
suance of 6-year 5 -5 /8 % Treasury notes of Series B -1 974, at 99.62 to yield about 5.70% for
the purpose of paying off in cash Treasury securities maturing August 15, 1968, and borrowing
new cash. In addition to tjie amount offered to the public an additional amount will be allotted
to Government Investment Accounts and Federal Reserve Banks. The amount of the maturing
issues is $8.6 billion of which $3.6 billion is held by the public.
The maturing securities are:
$5,936 million of 4 -1 /4 %

Treasury

Notes of Series C -1968, dated May 15, 1967; and

$2,640 million of 3 -3 /4 % Treasury Bonds of 1968, dated April 18, 1962.
The new notes will be dated August 15, 1968, and will mature August 15, 1974. Interest
will be payable on February 15 and August 15.
Payment and delivery date for the notes will be August 15. Payment may be made in cash,
or in 4 -1 /4 % notes of Series C -1968, or 3 -3 /4 % bonds of 1968, which will be accepted at par,
in payment or exchange, in whole or in part, for the notes subscribed for, to the extent such
subscriptions are allotted by the Treasury. Payment by credit in Treasury Tax and Loan A c ­
counts may be made for 50% of the amount of notes allotted.
The subscription books will be open only on Monday, August 5. Subscriptions with the
required deposits addressed to a Federal Reserve Bank or Branch, or to the Treasurer of
the United States, and placed in the mail before midnight August 5, 1968, will be considered
timely.
Subscriptions from commercial banks, for their own account, will be restricted in each
case to an amount not exceeding 50 percent of the combined capital (not including capital
notes or debentures), surplus and undivided profits of the subscribing bank.
Subscriptions from commercial and other banks for 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, and dealers who
make primary markets in Government securities and report daily to the Federal Reserve
Bank of New York their positions with respect to Government securities and b o rro w in g
thereon will be received without deposit.




(Over)

Subscriptions from all others must be accompanied by payment of 1 0 % (in cash, or
eligible Treasury securities maturing August 15, 1968, at par) of the amount of notes applied
for 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 of notes applied for, and to make different percentage allotments
to various classes of subscribers; and any action he may take in these respects shall be final.
The basis of the allotment will be publicly announced, and allotment notices will be sent out
promptly upon allotment.
Subject to the reservations in the preceding paragraph, (1) all subscriptions in amounts
up to and including $250,000 will be allotted in full and subscriptions over $250,000 will be
allotted on a percentage basis but not less than $250,000; and (2) 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, and
foreign central banks and foreign States will be allotted in full if a statement is submitted
certifying that the amount of the subscription does not exceed the amount of the two maturing
securities owned or contracted for purchase for value, at 4 p.m ., Eastern daylight saving
time, July 31, 1968. Any such subscriber may enter an additional subscription subject to a
percentage allotment.
The notes will be made available in registered as well as bearer form. All 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.
All subscribers are required to agree not to purchase or to sell, or to make any agree­
ments with respect to the purchase or sale or other disposition of, any of the notes subscribed
for under this offering at a specific rate or price, until after midnight August 5, 1968.
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 of their customers,
and that their customers have no beneficial interest in the banks1 subscriptions for their
own account.

The official offering circular and subscription forms for this offering will be mailed to
reach you by Monday, August 5; however, if they do not reach you by that date, subscriptions
may be entered by telegram or letter, subject to confirmation on the forms provided.




Alfred Hayes,
President.