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New Note Issue Circular No. 803 Federal Reserve Bank of New York Fiscal Agent of the United States Offering ot United States of America Three and One-Half Per Cent Treasury Notes Series B-1930-32 Offered for Cash and in Exchange for Second Liberty Loan Converted 4Vi Per Cent Bonds Dated and bearing interest from September 15, 1927. Due September 15, 1932 REDEEMABLE AT THE OPTION OF THE UNITED STATES AT PAR AND ACCRUED INTEREST ONT AND AFTER SEPTEMBER 15, 1930 Interest Payable March 15 and September 15. To all Banks, Trust Companies, Savings Banks, Bankers, Investment Dealers, Principal Corporations and Others Concerned in the Second Federal Reserve District: 1. The Secretary of the Treasury invites subscriptions through the Federal Reserve Banks, for 3 % per cent Treasury notes of Series B-1930-32 of an issue of gold notes of the United States authorized by the Act of Congress approved September 24, 1917, as amended. 2. Cash subscriptions are invited, at par and accrued interest. The amount of the issue for cash will be $250,000,000, or thereabouts. 3. Exchange subscriptions, in payment of which only Second Liberty Loan Converted 4^4 per cent bonds of 1927-1942 (hereinafter referred to as Second 41/£s) may be tendered, are invited at 100%. Interest on any Second 41/4s so surrendered and accepted will be paid in full to November 15, 1927. The amount of the issue upon exchange subscriptions will be limited to the amount of the Second Vfak tendered and accepted. DESCRIPTION OF NOTES s\ 4. The notes will be dated September 15, 1927, and will bear interest from that date at the rate of 3*4 per cent per annum payable semiannually on March 15 and September 15 in each year until the principal amount becomes payable. The notes will mature September 15, 1932, but may be redeemed at the option of the United States on and after September 15, 1930, in whole or in part, on any interest day or days, on six months' notice of redemption given in such manner as the Secretary of the Treasury may prescribe. In case of partial redemption the notes to be redeemed will be determined by such method as may be prescribed by the Sec- retary of the Treasury. From the date of redemption designated in any such notice, interest on the notes called for redemption shall cease. The principal and interest of the notes will be payable in United States gold coin of the present standard of value. 5. Bearer notes with interest coupons attached will be issued in denominations of $50, $100, $500, $1,000, $5,000, $10,000, and $100,000. The notes will not be issued in registered form. The notes will be acceptable to secure deposits of public moneys, but will not bear the circulation privilege. 6. The notes of this 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. 7. The notes of this series will be accepted at par, with an adjustment of accrued interest, during such time and under such rules and regulations as shall be prescribed or approved by the Secretary of the Treasury, in paymeut of income and profits taxes payable at the maturity of the notes, and, with respect to any such notes that may be called for prior redemption, will be receivable in like manner and for the same purpose at the redemption date fixed. APPLICATION AND ALLOTMENT 8. Applications will be received at the Federal Reserve Banks, as fiscal agents of the United States. Banking institutions generally will handle applications for subscribers, but only the Federal Reserve Banks are authorized to act as official agencies. 9. The right is reserved to reject any subscription in whole, or in part, to allot less than the amount of notes applied for, and to close either the cash or the exchange subscriptions at any time without notice, and the act of the Secretary of the Treasury in these respects will be final. Exchange subscriptions will probably remain open until September 29, 1927. 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. PAYMENT 10. Cash Subscriptions.—Payment at par and accrued interest for any notes allotted on cash subscriptions must be made on or before September 15, 1927, or on later allotment. Any qualified depositary will be permitted to make payment by credit for notes 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 TS-1927 and TS2-1927, both maturing September 15, 1927, will be accepted at the Federal Reserve Banks at par, to be applied in payment for any Treasury notes of Series B-1930-32 now offered which shall be subscribed for and allotted. 11. Exchange Subscriptions.—Payment for any notes allotted on exchange subscriptions may be made only through the surrender of a like principal amount of Second 41/4s which will be accepted at par, and, at the time of delivery of the notes, interest on any such Second 41/4s so surrendered and accepted will be paid in full to November 15, 1927, less the amount of the premium on the notes. Second Liberty Loan converted 41/4 per cent bonds tendered in payment for notes subscribed for should be presented when the subscription is tendered. If any subscription is rejected in whole or in part, any bonds which may have been tendered and not accepted will be returned to the subscriber. SURRENDER OF BONDS ON EXCHANGE SUBSCRIPTIONS 12. Surrender of Coupon Bonds.—Second 41/4s in coupon form tendered in exchange for Treasury notes issued hereunder should be presented and surrendered to a Federal Reserve Bank. The bonds must be delivered at the expense and risk of the holder. Facilities for transportation of bonds by registered mail insured may be arranged between incorporated banks and trust companies and the Federal Reserve Banks, and holders may take advantage of such ar rangements when available, utilizing such incorporated banks and trust companies as their agents. Incorporated banks and trust companies are not agents of the United States under this circular. 13. Coupons dated November 15, 1927, and all coupons bearing dates subsequent theieto, must be attached to such coupon bonds when presented. At the time of delivery of the Treasury notes of Series B-1930-32 (or interim certificates) upon allotted subscriptions, Federal Reserve Banks will pay to the subscriber or his authorized agent the interest from May 15, 1927, to November 15, 1927, on the coupon Second 4%s surrendered in exchange, less the amount of the premium on the notes issued. 14. Surrender of Registered Bonds.—Second iY^s in registered form, tendered in exchange for Treasury notes issued hereunder, should be assigned by the registered payee or aligns thereof to "The Secretary of the Treasury for redemption" in accordance with the general regulations of the Treasury Department governing assignments for transfer or exchange into coupon bonds, and thereafter should be presented and surrendered to a Federal Reserve Bank. The bonds must be delivered at the expense and risk of the holder. At the time of delivery of the Treasury notes of Series B-1930-32 (or interim certificates) upon allotted subscriptions Federal Reserve Banks will pay to the subscriber or his authorized agent the interest from May 15, 1927, to November 15, 1927, en the registered Second 4*4s surrendered in exchange, less the amount of the premium on the notes issued. 15. The Federal Reserve Banks, as fiscal agents of the United States, are hereby authorized and requested to receive subscriptions for Treasury notes hereunder, to receive Second 4*4s tendered in exchange, to make allotments of subscriptions on the basis and up to the amounts indicated to them by the Secretary of the Treasury, and to make delivery of Treasury notes on full paid subscriptions allotted, and, pending delivery of definitive notes, to issue interim certificates. FURTHER DETAILS 16. Any further information which may be desired as to subscriptions for Treasury notes under the provisions of this circular may be obtained upon application to a Federal Reserve Bank. The Secretary of the Treasury may at any time, or from time to time, prescribe supplemental or amendatory rules, and regulations governing the exchange and may terminate the offer at any time in his discretion. Very truly yours, BENJ. STRONG, Governor. New York, September 6, 1927. FEDERAL RESERVE BANK OF NEW YORK Fiscal Agent of the United States D m «.. -> ("September 6. 19271 - L to accompany circulars 802 and 808 J Securities Department . United States Treasury September Financing ! 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 invites subscriptions to two new issues of Government obligations. In announcing these offerings Acting Secretary Mills made the following statement: The Treasury is today announcing its September offering of securities. Two separate issues are being offered, first, an offering of six months 3 per cent Treasury certificates of indebtedness and second, an offering of 3-5 year 3j4 per cent Treasury notes, both offerings being dated September 15, 1927, and bearing interest from that date. CERTIFICATES OF INDEBTEDNESS The amount of the 3 per cent certificates of indebtedness offered is $250,000,000 or thereabouts. Subscriptions are invited at par and accrued interest. The certificates will mature on March 15, 1928. 314 PER CENT TREASURY NOTES The 3J/2 per cent Treasury notes are being offered both for cash and in exchange for Second Liberty Loan converted 4J4 per cent bonds. The 4 per cent Second Liberty Loan bonds will not be accepted in exchange for the new notes. The amount of the cash offering of Treasury notes will be $250,000,000, or thereabouts. Cash subscriptions for the new Treasury notes are invited at par and accrued interest. The amount of the issue upon exchange subscriptions will be limited only by the amount of the Second 4J4's tendered and accepted. Exchange subscriptions are invited at 100/^. Interest on any Second 4J4's surrendered and accepted upon allotted exchange subscriptions will be paid in full to November 15, 1927. Accordingly, at the time of delivery of the new Treasury notes the Federal Reserve Banks will pay to the subscriber or his authorized agent the interest from May 15, 1927 to November 15, 1927 on the Second 4^4's surrendered in exchange, less the amount of the premium on the notes issued. Treasury certificates of indebtedness of Series TS-1927 and TS2-1927 both maturing September 15, 1927, will be accepted at the Federal Reserve Banks at par to be applied in payment for any certificates of indebtedness of the series now offered which shall be subscribed for and allotted with an adjustment of the interest accrued, if any, on the certificates of the series so paid for. Treasury certificates of indebtedness of Series TS-1927 and TS2-1927 will also be accepted at the Federal Reserve Banks at par, to be applied in payment for any Treasury notes of Series B-1930-32 now offered which shall be subscribed for and allotted upon cash subscriptions. The exchange offering of Treasury notes will probably be kept open until September 29th. The offering of certificates of indebtedness and the cash offering of Treasury notes will probably be available for only a few days, the Secretary of the Treasury reserving the right to close the subscription books of these offerings, as well as the exchange offering, at any time without notice. The Treasury desires again to call attention to the fact that all bonds of the Second Liberty Loan have been called for redemption on November 15, 1927 and will cease to bear interest on that date. The total amount of the Second Liberty Loan issued on November 15, 1917 was $3,807,865,000. When the refunding of this loan was begun in March last, $3,104,520,050 remained outstanding. On March 15, $1,360,456,450 of these bonds were refunded into 3l/2 per cent Treasury notes of 1930-32 and on June 15 a further amount of $245,256,000 was refunded into 3M per cent Treasury bonds of 1943-47. Further reductions were made through purchases for sinking fund account and from surplus money. As a result of all these operations the amount of Second Liberty Loan bonds outstanding at the present time is something less than $1,200,000,000 of which $1,180,924,400 are Second 4}4's. The issue of the new Treasury notes in exchange for these bonds is in furtherance of the Treasury's refunding program. Except for the premium the present exchange offering is substantially the same as that of March 15th last. SUBSCRIPTION BOOKS OPEN SEPTEMBER 6 The subscription books for the new issues are now open and applications will be received by this bank as fiscal agent of the United States. The details of the offerings will be found in the accompanying circulars. Very truly yours, B E N J . STRONG, Governor. O. D. 1 TO BE USED IN REPORTING PAYMENTS FOR TREASURY CERTIFICATES ONLY •£ o (Name of bank or trust company) Si SERIES TM2—1928—3% • «<««*») ~ Dated September 15, 1927—Due March 15, 1928. 1927 (Date) ll CO I HEREBY CERTIFY that there has been deposited this day with the above bank or trust company, to the credit of the Federal Reserve Bank of New York, as Fiscal Agent of the United States War Loan Deposit Account, to be held subject to withdrawal on demand, the sum of o u- _. $ Cashier or Vice-President Dollars, INSTRUCTIONS Make reports on this form when payments for certificates of indebtedness subscriptions are made through credit in the FEDERAL RESERVE BANK OF NEW YORK as FISCAL AGENT OF THE UNITED STATES WAR LOAN DEPOSIT ACCOUNT in your books, forwarding to the Federal Reserve Bank of New York. Demands for withdrawal of deposits in the above account will be made through the Federal Reserve Bank of New York as fiscal agent of the United States. NOTE—See reverse BTC-N Subscription by Bank or Trust Company Lot Number Application Number c By Check, by Charge, by Book Credit or by Treasury Certificates of Indebtedness Maturing September 15, 1927 To Sy2 Per Cent United States Treasury Notes of 1930-32 Dated September 15, 1927 Due September 15, 1932 Dated at .1927 ml one day's interest on $1,000 for first interest period (Septembt to March 15, I 35 on 182 ckiy basis. FaDXBAL BX8XRTK BANK Or NKW YOEK Fiscal Agent of the United StatM New York, N. Y. DEAR SIRS: Pursuant to the terms stated in the offering of the Secretary of the Treasury dated September 6, 1927, please enter subscriptions at par and accrued interest for United States of America 3% per cent Treasury notes of 1930-32 dated September 15, 1927 and clue September 15, 1932 as follows: For our own account (not classified below) $ For our customers (classified below) Total Subscription $ CLASSIFICATION OF CUSTOMERS' SUBSCRIPTIONS (Not for denomination of securities) CLASS C CLASS B CLASS A Subscriptions of $1,000 and under I^eave Blapk Number Amount CLASS D Subscriptions of $1,100 to $10,000 Inclusive Subscriptions of $10,100 to $50,000 Inclusive Amount Leave Blank Number Amount Leave Blank Numbor CLASS E of $100,100 to $500,000 Inclusive Amount Number Leave Blank CLASS F Sub's of $500,100 to $1,000,000 Inclusive Number Amount Leave Blank Subscriptions of $50,100 to $100,000 Inc. Number Amount Leave Blank CLASS G Subscriptiona of over $1,000,000 Number Amount Leave Blank r any bonds allotted • By ir Loan Deposi d e b i t t o our r e s e r v e a c c o u n t - B y check - - - - - - iptibn, and - - J. - By T -ificates, So !7 - By Treasury Certificates, Series ! - - - - - ? Before signing fill in all required TO SUBSCRIBER: Mark ( X ) in proper space to indicate if this is: Ciuk «f Trust Company Post Office Address.. Original subscription State. Confirmation of a telegram. Confirmation of a l e t t e r . . . . Official signature required SPACES BELOW ABE FOB THE USE OF THE FEDERAL RESERVE BANK Examined Ledger Classified Carded Acknowledged Government Deposit Disposition Hold Allotment Reoeived Figured | Checked Checked Advised Recorded Method of Payment Window Amount Custody Date Released By Other Department! BTC-C Subscription by Bank or Trust Company Lot Number Application Number c By Check, Charge, Book Credit, or Exchange To 3 Per Gent Treasury Certificates, Series TM2-1928 Dated September 15, 1927 Due March 15,1928 Dated at .1927 Decimal for one day's interest on $1,000 first interest period 182 days $.08241758. FEDERAL EESKEVE BANK or NEW YORK Fiscal Agent of the United States New York, N. Y. DEAR SIRS: Pursuant to the terms stated in the offering of the Secretary of the Treasury dated September 6, 1927, please enter subscription at par and accrued interest for United States of America 3 per cent Treasury certificates of indebtedness, Series TM2-1928 dated September 15, 1927, and due March 15, 1928, as follows: For our own account (not classified below) $ For our customers (classified below) ^^^^^^__^ Total Subscription $ CLASSIFICATION OF CUSTOMERS' SUBSCRIPTIONS (Not for denomination of securities) CLASS C CLASS D CLASS B Subscriptions of $1,100 to 810,000 Inclusive Subscriptions of $10,100 to $50,000 Inclusive Subscriptions of $50,100 to $100,000 Inc. Amount Number Amount Number Leave Blank Leave Blank Leave Blank Number Amount CLASS A Subscriptions of $1,000 and under Amount Leave Blank Number CLASS E Sub's of $100,100 to $500,000 Inclusive Amount Leave Blank Number CLASS F Sub's of $500,100 to $1,000,000 Inclusive Amount Leave Blank Number CLASS G Subscriptions of over $1,000,000 Number Amount Leave Blank i 1 We agree to pay to you on September 15, 1927, at par and accrued interest for any certificates allotted on account of this subscription, and payment will be made by the method indicated below: By debit By check to our . reserve - - - account - - - - - - - - - - $ . By credit to War Loan Deposit Account - $ . . By exchange of Treasury - - Certificates, Series - - - - f., TS-1927 - $. B y e x c h a n g e of T r e a s u r y Certificates, Series T S 2 - 1 9 2 7 - $. ' Before signing fill in all required spaces. \ TO SUBSCEIBEB: Mark (X) in proper space to indicate if this is: Original subscription Confirmation of a telegram.. Confirmation of a letter Bank or Trust Company Post Office Address.. State. Official signature required SPACES BELOW ABE FOB THE USE OF THE FEDEBAL. BESEBVE BANK Examined Ledger Classified Carded Acknowledged Government Deposit Disposition Hold Allotment Received Figured Checked Checked Advised Recorded Method of Payment Window Amount Date Released By 1 Custody Mail Other Departments IB-C SUBSCRIPTION Lot Number Application Number IB To 3 Per Cent Treasury Certificates of Indebtedness Series TM2-1928 Dated September 15, 1927. Due March 15, 1928. Dated at. .1927 Decimal for one day's interest on $1,000 first interest period 182 days $.08241758. FEDERAL RESERVE BANK or NEW YORK, Fiscal Agent of the United States, New York, N. Y. DEAR SIRS: Pursuant to the terms stated in the offering of the Secretary of the Treasury dated September 6, 1927, please enter our (my) subscription at par and accrued interest for $ (par value) United States of America 3 per cent Treasury certificates of indebtedness, Series TM2-1928 dated September 15, 1927, due March 15, 1928. We (I) agree to pay to you on September 15, 1927, at par and accrued interest for any certificates allotted on account of this subscription, and payment will be made by the method indicated below: By By Treasury cheek By ca»h By • Treasury certificates, Series TS-1927 certificates, Series - TS2-1927 - . - . . . - $ . . $.... Payment will be made by (name).. This is a confirmation of a previous subscription. Write Yes Write No Subscriber Street address. Town State THIS SPACE IS FOR THE USE OF THE FEDERAL RESERVE BANK OF NEW YORK FIGURED CLASSIFIED Allotment LEDGER ACKNOWLEDGED DISPOSITION Payment Figured Checked Advised Released By exchange of Series TS-1927 Date 1 By exchange of Series TS2-1927 \ \ By Cash By Check Drawn on Cheek No. Received Checked Interest Checked Kecorded Window Custody- Mail IB-M CASH SUBSCRIPTION Lot Number Application Number To 3% Per Cent Treasury Notes of 1930-1932 Dated September 15,1927. Due September 15, 1932. Dated at. .1927 Decimal one day's interest on $1,000 for first interest period {September 15, 1927 to March 15, 1928) $0.09615385 on 182 day basis. FEDERAL EESEEVE BANK OP NEW YORK, Fiscal Agent of the United States, New York, N. Y. DEAB SIRS: Pursuant to the terms stated in the offering of the Secretary of the Treasury dated September 6, 1927, please enter our (my) subscription for $ (par value) United States of America 3% per cent Treasury notes of 1930-1932, dated September 15, 1927, due March 15, 1932, offered at par and accrued interest. We (I) agree to pay to you on September 15, 1927, at par and accrued interest for any notes allotted on account of this subscription, and payment will be made by the method indicated below: By Treasury certificates, Series TS-1927 By check I By cash - B y Treasury certificates. Series %. TS2-1927 - - - . $ . Payment will be made by (name) This is a confirmation of a previous subscription. Write Yes Write No Subscriber Street address. Town State THIS SPACE IS FOR THE USE OF THE FEDERAL RESERVE BANK OF NEW YORK FIGURED CAED CLASSIFIED LEDGER Figured Checked Advised Allotment ACKNOWLEDGED DISPOSITION Payment By Series TS-1927 Released % Date $ By Series TS2-1927 By Cash By Cheek Drawn on Cheek No. Received Cheeked Interest Checked Recorded Window Safekeeping Mail ENAC 4^4 COUPON 4M PER CENT BOND EXCHANGE APPLICATION For 3H Per Cent Treasury Notes of 1930-32, Dated Sept. 15, 1927, Due Sept. 15, 1932 In Exchange for Coupon Second Liberty Loan Converted A?A Per Cent Bonds INSTRUCTIONS TO APPLICANTS: This form should be used in subscribing to 3V2 per cent Treasury notes of 1930-32, by offering in payment Coupon Second Liberty Loan Converted 4*4 Per Cent Bonds of 1927-42 which should accompany this application. If payment is to be made by such bonds now held by this bank instructions should be given accordingly. Such bonds must bear coupon maturing on November 15, 1927, and all coupons bearing dates subsequent thereto. TREASURY NOTES OFFERED AT lOOVi ON EXCHANGE BASIS The amount of the issue upon exchange subscriptions will be limited only by the amount of Second 4Yi's tendered and accepted. Exchange subscriptions are invited at lOOVs- Interest on any Second 4y 4 's surrendered and accepted upon allotted exchange subscriptions will be paid in full to November 15, 1927. Accordingly, at the time of delivery of the hew Treasury notes the Federal Reserve Bank will pay the interest from May 15, 1927 to November 15, 1927 on the Second 4%'s surrendered in exchange, less the amount of the premium on the notes issued. FEDERAL RESERVE BANK OF NEW YORK Fiscal Agent of the United States, New York, N. Y. 1927 DEAR SIRS: Pursuant to the terms stated in the offering of the Secretary of the Treasury dated September 6, 1927, please enter exchange subscription at 100% in payment of which Second Liberty Loan Converted 4% per cent bonds of 1927-42 are tendered herewith as set forth below: INSTRUCTIONS TO FEDERAL RESERVE BANK OF NEW YORK Second Liberty Loan Converted 4 } i Per Cent Coupon Bonds Tendered Herewith Par Amount Denominations Pieces $ Leave Blank 3% Per Cent Treasury Notes of 1930-32 Desired in Exchange Pieces Leave Blank 50 100 100 500 500 1,000 1,000 5,000 5,000 10,000 10,000 X X X X X X X X X X X X X X X X X X X X X X X X X X X 100,000 TOTAL AMOUNT SURRENDERED Z3T TOTAL AMOUNT DISPOSE OF INTEREST PROCEEDS AS FOLLOWS By credit to our Eeserve Account Q Make check payable to IMPORTANT Par Amount Denominations $ 50 DISPOSE OF NEW SECURITIES AS FOLLOWS By check • This is: ' An original subscription.. A confirmation of a previous subscriptio: In payment of subscription already filed Deliver over the counter Ship definitive securities Hold for safekeeping (For members only)_ Deliver to Loan and Discount Department. Hold to secure War Loan deposits JO JO JO JO Special instructions: Subscriber. Street address. Town and State. SPACES BELOW FOR THE USE OP THE FEDERAL RESERVE BANK OF NEW YORK. Received from FEDERAL RESERVE BANK OF NEW YORK $ par value 3*4% Treasury Notes of 1930-32 Dated September 15, 1927 Due September 15, 1932 Subscriber. By. Date. Window Mail Safekeeping Received Checked Recorded Interest Checked Credit Check v \l Journal Payment Released Requisitioned Taken from Vault Counted Checked Delivered LOT NUMBER