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F E D E R A L R E S E R V E BA N K O F NEW YORK F iscal A gent of the U nited States [c C i r c u l a r N o. 6 5 8 2 J u l y 29, 1970 To A ll B a n k in g In stitu tio n s, and Others C oncerned, in the Second F e d e ra l R e se rv e D is t ric t : The following statement was made public today by the Treasury Department: TREASURY ANNOUNCES AUGUST FINANCING PLANS The Treasury announced today that it is offering holders of the $6.5 billion of 6-3/8% Treasury Notes of Series D-1970 and 4% Treasury Bonds of 1970, maturing August 15, 1970, the right to exchange their holdings for a 3 - 1 /2 -year 7-3/4% Treasury note or a 7-year 7-3/4% Treasury note. The public holds about $5.6 billion and Government accounts and Federal R eserve Banks hold about $0.9 billion of the secu rities eligible for exchange. The Treasury also announced that it w ill offer $2.75 billion, or thereabouts, of 18-month 7-1/2% Treasury notes to pay for the August 15 m aturities not exchanged and to ra ise new cash. An additional amount of these 18-month notes may be allotted to Government accounts and Federal R eserve Banks in exchange for maturing notes and bonds held by them. EXCHANGE OFFERING The notes being offered in exchange are: 7-3/4% Treasury Notes of Series C-1974, dated August 15, 1970, due February 15, 1974, at par; and 7-3/4% Treasury Notes of Series B -1977, dated August 15, 1970, due August 15, 1977, at 99.75 (to yield about 7.80%). Subscription books for the exchange offering w ill be open for three days, Monday, August 3 through Wednesday, August 5. Cash subscriptions w ill not be accepted. CASH OFFERING The notes being offered for cash are: 7-1/2% Treasury Notes of Series C-1972, dated August 17, 1970, due February 15, 1972, at 99.95 (to yield about 7.54%). Payment for these 18-month notes, to the extent allotted, may be made in cash, in 6-3/8% notes or 4% bonds maturing August 15, or by credit in Treasury Tax and Loan Accounts up to 50% of the amount of the notes allotted, or any combination thereof. Subscription books for the 18-month notes will be open one day only, Wednesday, August 5. The subscription from any com m ercial bank, for its own account, w ill be restricted to an amount not exceeding 50 percent of its combined capital (not including capital notes or debentures), surplus and undivided profits. (O v e r) Subscriptions w ill be received without deposit from com m ercial and other banks for their own account, Federally insured savings and loan association s, States, political sub divisions or instrum entalities thereof, public pension and retirem ent and other public funds, international organizations in which the United States holds m em bership, foreign central banks and foreign States, and d ealers who make prim ary m arkets in Government secu rities and report daily to the Federal R eserve Bank of New York their positions with respect to Government secu rities and borrowing thereon. Subscriptions from all others must be accompanied by payment of 10% (in cash, or T rea s ury notes or bonds maturing August 15, 1970, at par) of the amount of notes applied for not subject to withdrawal until after allotment. The Secretary of the T reasury r ese rv e s the right to reject or reduce any subscription, to allot le s s than the amount of notes applied for, and to make different percentage allotm ents to various c la ss e s of su b scrib ers. Subject to these reservations subscriptions in amounts up to and including $200,000 w ill be allotted in full and subscriptions over $200,000 may be allotted on a percentage b a sis but not le s s than $200,000. All subscrib ers are required to agree not to purchase or to se ll, 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 sp ecific rate or p rice, until after midnight, August 5, 1970. Com m ercial banks in submitting subscriptions w ill be required to certify that they have no beneficial in terest in any of the subscriptions they enter for the account of their custom ers, and that their custom ers have no beneficial interest in the banks' subscriptions for their own account. EXCHANGE AND CASH OFFERING Subscriptions addressed to a Federal R eserve Bank or Branch, or to the Office of the T reasurer of the United States, and placed in the m ail before midnight Wednesday, August 5, w ill be considered as tim ely. The payment and delivery date for the notes w ill be August 17. The notes w ill be made available in registered as well as bearer form in denominations of $1,000, $5,000, $10,000, $100,000 and $1,000,000. All subscrib ers requesting registered notes w ill be required to furnish appropriate identifying numbers as required on tax returns and other documents submitted to the Internal Revenue Service. Coupons dated August 15, 1970, on secu rities tendered in exchange or payment should be detached and cashed when due. The August 15, 1970 interest due on registered secu rities w ill be paid by issu e of in terest checks in regular course to holders of record on July 15, 1970, the date the transfer books closed. The official offering circu lars and subscription form s for this offering w ill be mailed to reach you by Monday, August 3; however, if they do not reach you by that date, subscrip tions may be entered by telegram or letter, subject to confirmation on the form s provided. Alfred Hayes, President.
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