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FEDERAL RESERVE BANK O F NEW YORK Fiscal A gent o f the United States [ C ircular N'o. O ctober 31, 1957 . Offering of $1,700,000,000 of 91-Day Treasury Bills D ated N ovem ber 7, 1937 M aturing February 6, 1958 T o all In corporated Banks and Trust Companies, and O thers Concerned, in the Second Federal R eserve D istrict: Following is the text of a notice published today: F O R R E L E A S E , M O R N IN G N E W S P A P E R S , T h ursday. O cto b e r 31, 1957. TREASURY DEPARTM EN T W a sh in gton The T reasu ry D epartment, by this pu blic n otice, invites tenders for $1,700,000,000, or thereabouts, o f 91-day T reasu ry bills, fo r cash and in exch ange for T reasu ry bills m aturing N ovem ber 7, 1957, in the am ount o f $1,700,194,000, to be issued on a discou nt basis under com petitive and noncom petitive b idd ing as h ereinafter provided. T h e bills o f this series w ill be dated N ovem ber 7, 1957, and w ill mature February 6, 1958, when the face am ount w ill be payable w ithout interest. T h ey w ill be issued in bearer form on ly, and in denom inations o f $1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,000 (m atu rity v a lu e ). T en ders w ill be received at F ed eral R eserve Banks and Branches up to the clo s in g hour, on e-thirty o 'c lo c k p.m., E astern Standard time, M onday, N ovem ber 4, 1957. T en ders w ill n ot be received at the T reasu ry Departm ent, W a sh in gton . E ach tender must be fo r an even m ultiple o f $1,000, and in the case o f com petitive tenders the price offered m ust be expressed on the basis o f 100, w ith n ot m ore than three decim als, e.g., 99.925. F raction s m ay n ot be used. It is urged that tenders be made on the printed form s and forw a rd ed in the special envelopes w hich w ill be supplied b y F ed eral R eserve Banks or Branches on application therefor. O thers than banking institutions w ill not be perm itted to subm it tenders excep t for their ow n account. T en ders w ill be received w ithout deposit from in corporated banks and trust com panies and from responsible and recogn ized dealers in in vestm ent securities. T en ders from others must be accom panied by paym ent o f 2 percent o f the face am ount o f T reasu ry bills applied for, unless the tenders are accom panied b y an express guaranty o f paym ent by an in corporated bank or trust com pany. Im m ediately after the closin g hour, tenders w ill be opened at the Federal R eserve Banks and Branches, fo llo w in g w hich public announcem ent w ill be made b y the T reasu ry D epartm ent o f the am ount and price range o f a ccepted bids. T h ose subm itting tenders w ill be advised o f the acceptance or rejection th ereof. T he S ecretary o f the T reasu ry exp ressly reserves the right to accep t o r reject any or all tenders, in w hole or in part, and his action in any such respect shall be final. S ubject to these reservations, noncom petitive tenders fo r $200,000 or less w ithout stated price from any one bidder w ill be accepted in fu ll at the a vera ge price (in three decim als) o f accepted com petitive bids. Settlem ent fo r accepted tenders in a ccord a n ce w ith the bids must be made o r com pleted at the Federal R eserve Bank on N ovem ber 7, 1957, in cash or oth er im m ediately availa b le funds o r in a like face amount o f T reasu ry bills m aturing N ovem ber 7, 1957. Cash and exch a n ge tenders w ill re ceive equal treatment. Cash adjustm ents w ill be made fo r differences between the par value o f m aturing bills a ccepted in exch an ge and the issue price o f the new bills. T h e incom e derived from T reasu ry b ills, w hether interest or gain from the sale or other disp osition o f the bills, does not have any exem ption, as such, and loss from the sale or other disp osition o f T reasu ry bills does not have any special treat ment, as such, under the Internal Revenue C ode o f 1954. T he bills are subject to estate, inheritance, g ift or other excise taxes, whether Federal o r State, but are exem pt from all taxation n ow or hereafter im posed on the principal or interest th ereof by any State, o r any o f the possessions o f the U nited States, or by any loca l ta x in g authority. F o r purposes o f ta xation the amount o f discou n t at w hich T reasu ry bills are o rigin a lly s o ld by the U nited States is con sidered to be interest. U nder Sections 4 5 4(b) and 1221(5) o f the Internal Revenue C ode o f 1954 the amount o f discou nt at w hich bills issued hereunder are sold is not con sidered to accrue until such bills are sold, redeem ed o r otherw ise disposed of* and such bills are exclu ded from con sideration as capital assets. A cco rd in g ly , the ow n er o f T reasu ry bills (oth er than life insurance com pa n ies) issued hereunder need include in his incom e ta x return on ly the difference between the price paid fo r such b ills, w hether on original issue o r on subsequent purchase, and the am ount actually received either upon sale or redem ption at m aturity during the taxable year fo r w hich the return is made, as ordinary gain or loss. T reasu ry D epartm ent C ircu lar N o. 418, R evised, and this notice, prescribe the terms o f the T reasu ry bills and govern the con dition s o f their issue. Copies o f the circu la r m ay be obtain ed from any Federal R eserve Bank o r Branch. This Bank will receive tenders up to 1:30 p.m., Eastern Standard time, Monday, November 4, 1957, at the Securi ties Department of its Head Office and at its Buffalo Branch. Please use the form on the reverse side of this circular to submit a tender, and return it in an envelope marked “Tender for Treasury Bills.” Tenders may be submitted by telegraph, subject to written confirmation; they may not be submitted by telephone. Payment for the Treasury bills cannot be made by credit through the Treasury Tax and Loan Account. Settlement must be made in cash or other immediately available funds or in maturing Treasury bills. A l f r e d H a y e s , President. Results of last offering of Treasury bills (91-dav bills dated October 31, 1957, maturing January 30, 1958) T ota l applied f o r ......... $2,503,122,000 T ota l a c c e p te d .............$1,700,061,000 (in clu d es $373,449,000 entered on a n oncom petitive basis and accepted in full at the a ver age price show n b elow ) Range o f accepted com petitive b id s : H i g h ....................... 99.105 E quivalent rate o f discount approx. 3.541% per annum L o w ......................... 99.082 Equivalent rate o f discount approx. 3.632% per annum A v e r a g e ................. 99.085 Equivalent rate o f discount approx. 3.622% per annum (21 percent o f the amount b id fo r at the low price w as accepted) Federal R eserve D istrict Total Applied for Boston ....................... . . . X ew Y o rk ............... Philadelphia ........... C leveland ................. R ic h m o n d ................. A tlanta ..................... C h i c a g o ..................... St. L ouis ................. M in n e a p o lis ............. Kansas City ........... Dallas ....................... San F ran cisco T o t a i ....................... ... $ 33.931.000 1,753.328,000 41.233,000 83,251,000 21.133,000 34,528.01)0 253,323.000 31,369.000 19,990,000 50,286,000 48.326,000 132.424,000 $2,503,122,000 Total A ccep t cd $ 32,931.000 1,096,897,000 22,933,0C0 73,251,000 20,896,000 31,628,000 190,743,000 29,908,000 18.258.0U0 46,111,000 32.514.000 103,991,000 $1,700,061,000 ( over) IMPORTANT—Please note that closing time is 1:30 p.m., Eastern Standard time. No. T E N D E R F O R 9 1 -D A Y T R E A S U R Y B IL L S Closing time for receipt of tenders is 1:30 p.m., Eastern Standard time, Monday, November 4,1957 Dated November 7, 1957 To Maturing February 6, 1958 Dated at F e d e ra l R eserve B a n k o f N ew Y ork , 19. Fiscal Agent of the United States. Pursuant to the provisions of Treasury Department Circular No. 418. Revised, and to the provisions of the public notice issued by the Treasury Department and printed on the reverse side of this tender, the under signed hereby offers to purchase the above described Treasury bills in the amount indicated below, and agrees to make payment therefor at your Bank on or before the issue date at the price indicated below: T Noncompetitive ^ ° n0* ^ Competitive and ” 1 tenders on one form J POTV'fP’f i'T’T T T V i r TFTVTVfi’R liU M r b llllV r i ItiiN U IijK $ .................................................(maturity value), or any lesser amount that may be awarded. P rice:............................... per 100. (Price must be expressed zvith not more than three decimal places, fo r example, 99.925) NONCOMPETITIVE TENDER $ ...................................................(maturity value). (Not to exceed $200,000 for one bidder through all sources) At the average price of accepted competitive bids. Subject to allotment, please issue, deliver, and accept payment for the bills as indicated below: Pieces Denomination $ M aturity value 1,000 5,000 10,000 □ 1. Deliver over the counter to the undersigned □ 2. Ship to the undersigned □ 3. H old in safekeeping ( f o r ac count o f member bank on ly) □ 4. Allotment attached) □ 5. Special instructions: 100,000 transfer (see list 500,000 1,000,000 (No changes in delivery instructions ivill be accepted) Totals------ Payment will be made as fo llo w s: □ B y charge to our reserve account □ By cash o r other immediately avail able funds □ By surrender o f $ ........................... (m aturity value) o f maturing Treasury bills. Pay cash adjust ment, if any— □ By check □ B y credit to our reserve account (Payment cannot be made through Treasury Tax and Loan Account) The undersigned (if a bank or trust company) hereby certifies that the Treasury bills which you are hereby instructed to dispose of in the manner indicated in item 3 above are solely owned by the undersigned. N am e o f su b scrib er _ Insert this tender in special envelope m arked “ T en d er for Treasury Bills” By (Please print) ......................................................................... . B .y (Official signature(s ) required) T i t l e .................................................................................... T itle ............ A d d re s s ........................................................................................................ (B anks submitting tenders fo r customer account must indicate name on line below, or attach a list) (N a m e o f cu s to m e r) (Address) IN S T R U C T IO N S : 1. N o ten der fo r less than $1,000 w ill be co n sid ered , and ca ch ten der m u st be fo r an even m u ltiple o f $1,000 (m a tu rity va lu e). 2. O th e rs than b a n k in g in stitu tions w ill n ot be perm itted to subm it ten ders e x ce p t fo r their o w n a cco u n t. B anks su b m ittin g ten ders fo r c u sto m e r a ccou n t m a y co n so lid a te com p etitive tenders at the same price and m a y co n so lid a te n o n co m p e titiv e ten d ers, p r o v id e d a list is attached s h o w in g the nam e o f each bidd er, the a m ou n t b id fo r his a ccou n t, and m e th o d o f paym ent. F orm s fo r this p u rp ose w ill be furn ished on request. 3. I f th e p erson m a k in g th e ten der is a co rp o ra tio n , the ten der sh ou ld be sign ed b y an officer o f the co rp o ra tio n a u th o rize d to m a k e th e ten der, and the sign in g o f the ten der b y an officer o f the co r p o r a tio n w ill be co n stru e d as a represen tation b y him that he has been s o au th orized . I f the ten der is m ade b y a p a rtn ersh ip, it s h ou ld be sign ed b y a m e m b e r o f the firm , w h o sh ou ld sign in the fo rm “ ............................................................................................... , a cop a rtn ersh ip , b y ..................................................................................................................... a m e m b e r o f the firm .” 4. T e n d e r s w ill be receiv ed w ith ou t d ep osit fro m in co rp o ra te d banks and trust co m p a n ie s and from re s p o n sible and r e co g n iz e d dealers in in vestm ent securities. T en d ers fr o m oth ers m ust be a cco m p a n ie d b y pa ym en t o f 2 p ercen t o f the fa ce a m ou n t o f T rea su ry bills a pp lied fo r, u nless the ten ders are a ccom p a n ied b y an ex p re s s gu aranty o f paym ent b y an in co rp o ra te d ba n k o r trust com p a n y . 5. I f th e la n g u a ge o f this ten der is ch a n g ed in a n y resp ect, w hich, in the o p in io n o f the S ecreta ry o f the T re a su ry , is m aterial, the ten der m a y be disregarded. ( over)