Public Debt Operations, Calls of Guaranteed Obligations, Regulations, and Legislation

Treasury Certificates of Indebtedness, Treasury Notes, and Treasury Bonds Offered and Allotted

EXHIBIT 1.-Treasury certificates of indebtedness

A Treasury circular containing a representative certificate offering during the fiscal year 1960 is reproduced in this exhibit. The circulars pertaining to the other exchange offerings are similar in form and therefore are not reproduced in this report. However, the essential details for each issue are summarized in the first table following the circular and the final allotments of new certificates issued in exchange for maturing securities are shown in the second table.

DEPARTMENT CIRCULAR NO. 1037. PUBLIC DEBT

TREASURY DEPARTMENT,
Washington, February 1, 1960.

1. OFFERING OF CERTIFICATES

1. The Secretary of the Treasury, pursuant to the authority of the Second Liberty Bond Act, as amended, invites subscriptions, at par, from the people of the United States for certificates of indebtedness of the United States, designated 4% percent Treasury certificates of indebtedness of Series A-1961 in exchange for:

334 percent Treasury certificates of indebtedness of Series A-1960, maturing February 15, 1960

11⁄2 percent Treasury notes of Series EA-1960, maturing April 1, 1960 Interest will be adjusted as of March 15, 1960, in the case of the notes of Series EA-1960, as provided in Section IV, PAYMENT, hereof. The amount of the offering under this circular will be limited to the amount of the eligible securities of the two issues tendered in exchange and accepted. The books will be open only on February 1 through February 3 for the receipt of subscriptions for this issue. 2. In addition to the offering under this circular, holders of the maturing certificates and the notes of Series EA-1960 are offered the privilege of exchanging all or any part of such securities for 4% percent Treasury notes of Series C-1964, which offering is set forth in Department Circular No. 1038, issued simultaneously with this circular.

11. DESCRIPTION OF CERTIFICATES

1. The certificates will be dated February 15, 1960, and will bear interest from that date at the rate of 4% percent per annum, payable semiannually on August 15, 1960, and February 15, 1961. They will mature February 15, 1961, and will not be subject to call for redemption prior to maturity.

2. The income derived from the certificates is subject to all taxes imposed under the Internal Revenue Code of 1954. The certificates are subject to estate, inheritance, gift, or other excise taxes, whether Federal or State, but are exempt from all taxation now or hereafter imposed on the principal or interest thereof by any State, or any of the possessions of the United States, or by any local taxing authority.

3. The certificates will be acceptable to secure deposits of public moneys. They will not be acceptable in payment of taxes.

4. Bearer certificates with interest coupons attached will be issued in denominations of $1,000, $5,000, $10,000, $100,000, $1,000,000, $100,000,000, and $500,000,000. The certificates will not be issued in registered form.

5. The certificates will be subject to the general regulations of the Treasury Department, now or hereafter prescribed, governing United States certificates.

III. SUBSCRIPTION AND ALLOTMENT

1. Subscriptions will be received at the Federal Reserve Banks and branches and at the Office of the Treasurer of the United States, Washington. Banking institutions generally may submit subscriptions for account of customers, but only the Federal Reserve Banks and the Treasury Department are authorized to act as official agencies.

2. The Secretary of the Treasury reserves the right to reject or reduce any subscription, and to allot less than the amount of certificates applied for; and any action he may take in these respects shall be final. Subject to these reservations, all subscriptions will be allotted in full. Allotment notices will be sent out promptly upon allotment.

IV. PAYMENT

1. Payment at par for certificates allotted hereunder must be made on or before February 15, 1960, or on later allotment, and may be made only in Treasury certificates of indebtedness of Series A-1960, maturing February 15, 1960, or Treasury notes of Series EA-1960, maturing April 1, 1960, which will be accepted at par, and should accompany the subscription. Coupons dated February 15, 1960, should be detached from the maturing certificates by holders and cashed when due. Coupons dated April 1, 1960, must be attached to the notes when surrendered, and accrued interest from October 1, 1959, to March 15, 1960 ($6.80328 per $1,000), will be credited, accrued interest from February 15, 1960, to March 15, 1960 ($3.88393 per $1,000), on the certificates to be issued will be charged, and the difference ($2.91935 per $1,000) will be paid to holders of the notes following their acceptance.

V. GENERAL PROVISIONS

1. As fiscal agents of the United States, Federal Reserve Banks are authorized and requested to receive subscriptions, to make allotments on the basis and up to the amounts indicated by the Secretary of the Treasury to the Federal Reserve Banks of the respective districts, to issue allotment notices, to receive payment for certificates allotted, to make delivery of certificates on full-paid subscriptions allotted, and they may issue interim receipts pending delivery of the definitive certificates.

2. The Secretary of the Treasury may at any time, or from time to time, prescribe supplemental or amendatory rules and regulations governing the offering, which will be communicated promptly to the Federal Reserve Banks.

ROBERT B. ANDERSON,
Secretary of the Treasury.

Summary of information pertaining to Treasury certificates of indebtedness issued during the fiscal year 1960

1 Coupons dated Nov. 15, 1959, were detached from the maturing securities by holders and cashed when due.

2 See Department Circular No. 1037, secs. III and IV, in this exhibit, for provisions for subscription and payment of interest.

Coupons dated May 15, 1960, were detached from the maturing securities by holders and cashed when due.

Allotments of Treasury certificates of indebtedness issued druing the fiscal year 1960, by Federal Reserve districts

[In thousands of dollars]