Allotments of Treasury notes issued during the fiscal year 1960, by Federal Reserve districts Federal Reserve district [In thousands of dollars] 44 percent Series C-1960 Treasury notes issued 434 percent Series A-1964 Treasury notes issued in exchange for 15% percent Series C-1959 certificates maturing Aug. 1, 1959 1 4 percent Series A-1961 Treasury notes maturing Aug. 1, 1961, 1redeemable Aug. 1, 1959 2 Total issued 15% percent Series C-1959 certificates maturing Aug. 1, 1959 3 in exchange for 4 percent Series A-1961 Treasury notes maturing Aug. 1, 1961, redeemable Aug. 1, 1959 2 Total issued 5 percent Series B-1964 Treas ury notes issued for cash 4 1 Series A-1964 Treasury 44 percent notes also offered in exchange for this security. * Series C-1960 Treasury 434 percent notes also offered in exchange for this security. 4 Subscriptions from savings-type investors were allotted 45 percent, subscriptions from commercial banks for their own account were allotted 8 percent, and all other subscriptions were allotted 5 percent, but not less than $1,000 on any one subscription. All subscriptions up to a maximum of $25,000 were allotted in full where accompanied by 100 percent payment at the time subscriptions were entered. 34 percent 131⁄2 percent Allotments of Treasury notes issued during the fiscal year 1960, by Federal Reserve districts-Continued Series Series Treasury notes Aug. 15, redeemable Feb. 15, 1960 6 maturing 1962, Series C-1960 Treasury 44 percent certificates also offered in exchange for this Redeemable at the option of the holder at par and accrued interest on Feb. 15, 1960, 7 Exchanges together with cash differences necessary to make up the next higher $1,000 multiple. Series A-1961 Treasury 47% percent certificates also offered in exchange for this security; see exhibit 1. Allotments of Treasury notes issued during the fiscal year 1960, by Federal Reserve districts-Continued [In thousands of dollar] Subscriptions in excess of $100,000 were allotted 30 percent but not less than $100,000 and subscriptions for $100,000 or less were allotted in full. 10 Series B-1961 Treasury 43% percent certificates also offered in exchange for this security; see exhibit 1. 11 These exchanges were an advance refunding and not a maturing issue. 37% percent Treasury bonds of 1968 also offered in exchange for this security; see exhibit 3. EXHIBIT 3.-Treasury bonds Two Treasury circulars for the two bond offerings during the fiscal year 1960, one a cash and the other an exchange, are reproduced in this exhibit. The essential details for each issue are summarized in the first table following the circulars and the final allotments of new bonds issued for cash or in exchange for outstanding securities are shown in the second table. DEPARTMENT CIRCULAR NO. 1040. PUBLIC DEBT I. OFFERING OF BONDS 1. The Secretary of the Treasury, pursuant to the authority of the Second Liberty Bond Act, as amended, invites subscriptions, at par and accrued interest, from the people of the United States for bonds of the United States, designated 44 percent Treasury bonds of 1975-85. The amount of the offering under this circular is up to $1,500,000,000, or thereabouts. In addition to the amount offered for public subscription, the Secretary of the Treasury reserves the right to allot up to $100,000,000 of these bonds to Government investment accounts. The books will be open only on April 4 and April 5 for the receipt of subscriptions for this issue. 2. Deferred payment for bonds allotted hereunder may be made as provided in Section IV hereof by any of the following subscribers, who for this purpose are defined as savings-type investors: Pension and retirement funds—public and private. Endowment funds. Common trust funds under Regulation F of the Board of Governors of the Insurance companies. Mutual savings banks. Fraternal benefit associations and labor unions' insurance funds. Savings and loan associations. Credit unions. Other savings organizations (not including commercial banks). States, political subdivisions or instrumentalities thereof, and public funds. II. DESCRIPTION OF BONDS 1. The bonds will be dated April 5, 1960, and will bear interest from that date at the rate of 44 percent per annum, payable on a semiannual basis on November 15, 1960, and thereafter on May 15 and November 15 in each year until the principal amount becomes payable. They will mature May 15, 1985, but may be redeemed at the option of the United States on and after May 15, 1975, in whole or in part, at par and accrued interest, on any interest day or days, on 4 months' notice of redemption given in such manner as the Secretary of the Treasury shall prescribe. In case of partial redemption the bonds to be redeemed will be determined by such method as may be prescribed by the Secretary of the Treasury. From the date of redemption designated in any such notice, interest on the bonds called for redemption shall cease. 2. The income derived from the bonds is subject to all taxes imposed under the Internal Revenue Code of 1954. The bonds 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 bonds will be acceptable to secure deposits of public moneys. 4. Bearer bonds with interest coupons attached, and bonds registered as to principal and interest, will be issued in denominations of $500, $1,000, $5,000, $10,000, $100,000, and $1,000,000. Provision will be made for the interchange of bonds of different denominations and of coupon and registered bonds, and for the transfer of registered bonds, under rules and regulations prescribed by the Secretary of the Treasury. 5. Any bonds issued hereunder which upon the death of the owner constitute part of his estate, will be redeemed at the option of the duly constituted repre sentatives of the deceased owner's estate, at par and accrued interest to date of payment,1 Provided: (a) that the bonds were actually owned by the decedent at the time of his death; and (b) that the Secretary of the Treasury be authorized to apply the entire proceeds of redemption to the payment of Federal estate taxes. Registered bonds submitted for redemption hereunder must be duly assigned to "The Secretary of the Treasury for redemption, the proceeds to be paid to the District Director of Internal Revenue at for credit on Federal estate taxes due from estate of Owing to the periodic closing of the transfer books and the impossibility of stopping payment of interest to the registered owner during the closed period, registered bonds received after the closing of the books for payment during such closed period will be paid only at par with a deduction of interest from the date of payment to the next interest payment date; 2 bonds received during the closed period for payment at a date after the books reopen will be paid at par plus accrued interest from the reopening of the books to the date of payment. In either case checks for the full six months' interest due on the last day of the closed period will be forwarded to the owner in due course. All bonds submitted must be accompanied by Form PD 1782,8 properly completed, signed and certified, and by proof of the representatives' authority in the form of a court certificate or a certified copy of the representatives' letters of appointment issued by the court. The certificate, or the certification to the letters, must be under the seal of the court, and except in the case of a corporate representative, must contain a statement that the appointment is in full force and be dated within six months prior to the submission of the bonds, unless the certificate or letters show that the appointment was made within one year immediately prior to such submission. Upon payment of the bonds appropriate memorandum receipt will be forwarded to the representatives, which will be followed in due course by formal receipt from the District Director of Internal Revenue. 6. The bonds will be subject to the general regulations of the Treasury Department, now or hereafter prescribed, governing United States bonds. 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. Commercial banks, which for this purpose are defined as banks accepting demand deposits, may submit subscriptions for account of customers, but only the Federal Reserve Banks and the Treasury Department are authorized to act as official agencies. Others than commercial banks will not be permitted to enter subscriptions except for their own account. Subscriptions from commercial banks for their own account will be received without deposit but will be restricted in each case to an amount not exceeding 4 percent of the combined amount of time certificates of deposit (but only those issued in the names of individuals, and of corporations, associations, and other organizations not operated for profit), and of savings deposits, or 10 percent of the combined capital, surplus, and undivided profits of the subscribing bank, whichever is greater. Subscriptions from States, political subdivisions or instrumentalities thereof, and public pension and retirement and other public funds also will be received without deposit. Subscriptions from all others must be accompanied by payment of 20 percent of the amount of bonds applied for, not subject to withdrawal until after allotment; provided, however, that all subscriptions up to a maximum of $25,000 will be allotted in full if accompanied by 100 percent payment at the time of entering the subscription. All payments accompanying subscriptions must be made to a Federal Reserve Bank or branch or to the Treasurer of the United States in immediately available funds or by credit in a Treasury tax and loan account. Following allotment, any portion of the 20 percent payment in excess of 20 percent of the amount of bonds allotted may be released upon the request of the subscribers. 1 An exact half-year's interest is computed for each full half-year period irrespective of the actual number of days in the half year. For a fractional part of any half year, computation is on the basis of the actual number of days in such half year. The transfer books are closed from Apr. 16 to May 15, and from Oct. 16 to Nov. 15 (both dates inclusive) in each year. 3 Copies of Form PD 1782 may be obtained from any Federal Reserve Bank or from the Treasury Depart. ment, Washington 25, D.C. |