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Show notes and bonds obliga Treasury bills are short-terfederal of the tions government, issued with initial maturities of three, six or 12 months and sold in minimum amounts of $10,000 and additional in crements of $5000 A new batch of category Small Investors Try T-No-tes y of dozen people JkI ccxiple stood on line recentlv front in of tellers' windows at an imposing building in New York s Wall Street area They were men and women, young and old, workers, housewives and retired couples and they ail had checks or cash in their hands But they were not waiting to make a deposit at a commercial bank or savings and loan association They were all buying Treasury securities These people were doing what more and more Americans are doing nowadays trying to get a share of the action in an era of soaring interest rates by purchasing securities issued directly by the federal government Buffeted by inflation, they are trying to at least partially maintain their pur- branch chasing power by acquiring securities that combine high interest with ab- solute safety "My husband and wanted to buy a house, but we couldn't get mortgage money," said Pat Mondragon as she completed an application form for I Treasury securities at the Federal Reserve Bank of New York Buying this seemed to be the best thing to do after being caught in the crunch This is the first time that I've bought Treasuries," noted Marie Hall, who waited with her husband to make a purchase ' We're both retired and we're careful with our money But I'm " going to try it now To many who have never done so investing in these Treasury notes and bonds seems an impenetrable maze But today such sesome call them Treasuries, curities or others call them are an increasingly popular citizens vehicle for The minimum amount required is as low as $1000, and purchases can be made directly from the Treasury Department in Washington or from any local Federal Reserve Bank or branch An even simpler way of purchasing Treasuries (although a small fee is usually required) is through your stock broker or bank The greatest appeal of these issues either in competitively which your price is specified and you run the risk of losing out by bidding in too low or which you agree to pay the average price of the competitive tenders accepted For the small investor, a non competitive tender is usually the best method of buying bills, as well as notes and bonds Treasury notes and bonds are simi lar federal instruments with longer maturities one to 10 years for notes, and normally more than 10 years for bonds Although the minimum denomination is $1000, the government sometimes sets higher minimums for particular issues There are also periodic auctions for and although not as and both frequently as for bid competitive and ding for them Notes and bonds, however, are sold either in registered form listed in the owner's name so that interest payments are automatically mailed or in bearer form making them fully negotiable and containing interest coupons to be clipped and cashed for payment While there are some three dozen Federal Reserve Banks and branches around the country at which Treasury securities are sold at no cost and tenders can also be submitted by mail semi-annuall- y before, bills, e are auc and tioned every Monday, while new isbills are sold every sues of one-yea- r four weeks The government issues bills only in book-entrform, so that ownership is signified by an account at the Treasury, rather than through the more familiar engraved certificate Further more, prices of new bills are set not by the Treasury, but by the competitive bidding of investors soon after the an nouncement of an offering Thus you can submit a tender by mail or in per son at a Federal Reserve Bank or by Leonard Sloane middle-incom- three- - is other than their high interest that they are lOUs of the U S government, backed by its full faith and credit As one dealer puts it, "T reasury securities are like stretched out dollars " Not only are new secure ties continually being sold by the Treasury, but bills, notes and bonds issued previously are also available the secondary market from others The government must sell these securities because Uncle Sam like many of us, and perhaps even more so than most must borrow to meet his financial requirements And when you today rates is combine the government's need to borrow with the need of ordinary people to protect themselves against the ravages of inflation, you wind up with a vehicle that in many cases seems to fit the bill For here you are lending money to the federal government, the most credit worthy borrower in the nation and earning good interest for your cash to boot And the income from Treasuries is not subect to state or local taxes Treasuries are frequently broken down into two classifications The first consists of Treasury bills, the second directly to the Treasury Department's Bureau of Public Debt in Washington large numbers of purchasers ac quire their securities through banks and brokers The cost of the transaction is typically in the $25 range, but the broker or banker handles the paperwork and saves you the corres ponding time and effort Regardless of how you buy Treasuries, price quota tions on recent issues can be obtained from any local Fed office W 12 PXKMH 1 HKl MO 111 I rail |