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F E D E R A L R E S E R V E BANK O F N EW YO R K F is c a l A gent of the U n ited S ta te s 58J1 C i r c u l a r N o . 6618 O c t o b e r 14, 1 9 7 0 T o A ll B a n k in g I n s t i t u ti o n s , a n d O th e r s C o n c e r n e d , in th e S e c o n d F e d e r a l R e s e r v e D i s t r i c t : The following statem ent was made public today by the T reasu ry Department: CHANGE OF CLOSING HOUR FOR RECEIVING SUBSCRIPTIONS TO TREASURY NOTE OFFERINGS The T reasu ry Department today called attention to changes it is making in the tim e its books will be open for subscriptions in future offerings of T reasury notes and bonds. Until now the p ractice has been to keep the books open for subscriptions up to m id night of the last day specified in the offering announcement, and to accept subscriptions postm arked before that tim e. Under the new practice —which is sim ilar to that now used in accepting tenders for T reasu ry bills —the subscription books will be open until the day and hour (probably 7:00 p.m . local time) specified in the offering announcement, but to be tim ely subscriptions m ust be received by a Federal R eserve Bank or Branch or by the T reasury by the speci fied tim e. Subscriptions postm arked before midnight of the preceding day will, however, be deemed to have been received by the specified tim e. The T reasu ry said that the new p ractice will enable it to know —and to announce — the resu lts of a financing e a rlie r and with g re a te r precision. This knowledge is p a rtic u larly useful when m ore than one financing operation may have to be com pressed into a lim ited period of tim e. This change in procedure will also minim ize revisions in the early published re su lts of financing operations — revisions which have resulted in p art from mail delays. In view of the changes in T reasu ry procedures outlined above, potential su b scrib ers should review th eir procedures in subm itting subscriptions for exchange and cash offerings of T reasu ry issu es to ensure that they will be postm arked in a tim ely m anner or will reach this Bank o r its Buffalo Branch before the closing hour on the day the books close. It is p articu larly im portant for su b scrib ers in the Second Federal R eserve D istrict, which custom arily have submitted subscriptions for th eir own and, in the case of banks, for custom er accounts by m ail, to develop new procedures to conform to the new deadlines. To the extent subscriptions cannot be m ailed in time to m eet the requirem ent of a midnight postm ark of the day before the closing, su b scrib ers should consider other m eans of tra n s m itting th eir subscriptions to a rriv e at this Bank or its Buffalo Branch before the closing hour. One such m eans of subscribing would be to use the serv ices of a correspondent bank in New York or Buffalo, which might involve establishing new arrangem ents for this purpose. Or, in some circum stances, the subscriptions might be sent by courier serv ice, if such a serv ice is used for checks o r cash. In any case, we would urge that su b scrib ers explore the steps to be taken in o rd e r to comply with the T re a su ry ’s new requirem ent before the next financing operation commencing la te r this month. Alfred Hayes, President.
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