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FEDERAL RESERVE BANK O F N EW YORK C ircular No. 4 5 5 1 Ja n u a ry 9, 1958 Fiscal Agent of the United States Offering o f $1,700,000,000 o f 91-Day Treasury Bills Dated January 16, 1958 Maturing April 17, 1958 To all Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal Reserve District: Following is the text o f 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 u rsd a y, January 9, 1958. TREASURY W a sh in g to n DEPARTM ENT T h e T re a su ry D epartm en t, b y this pu blic n otice, invites tenders fo r $1,700,000,000, or thereabouts, o f 91-day T reasu ry bills, fo r cash and in exch an ge for T rea su ry bills m atu rin g January 16, 1958, in the a m ou n t o f $1,600,332,000, to be issued on a discou n t basis under com p etitive and n on com p etitive b id d in g as h ereinafter provided . T h e bills o f this series w ill be dated January 16, 1958, and w ill m ature A p r il 17, 1958, w hen the face am ou nt w ill be pa ya b le w ith ou t interest. T h e y w ill be issued in bearer fo rm on ly, and in den om in ation s o f $1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,000 (m atu rity va lu e). T e n d e rs w ill be received at Federal R eserve B anks and B ra n ch es up to the clo s in g hour, on e-th irty o ’ c lo ck p.m ., E astern Standard tim e, M on d a y, January 13, 1958. T en d ers w ill n ot be received at the T rea su ry D epartm en t, W a sh in g ton . E ach ten der m u st be fo r an even m ultiple o f $1,000, and in the ca se o f com p etitive tenders the price offered m u st be exp ressed 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 u rged that tenders be m ade on the printed form s and forw a rd ed in the special en v elop es w h ich will be supplied b y Federal R eserve B anks or B ran ches on application therefor. O th e rs than b ankin g institutions w ill n ot be perm itted to su b m it tenders excep t fo r their ow n a ccou n t. T en d ers w ill be received w ith ou t deposit from in corp ora ted banks a n d trust com pa n ies and fro m respon sible and re co g n iz e d dealers in in vest m en t securities. T e n d ers fr o m oth ers m u st be a ccom p a n ied b y p a ym en t o f 2 percent o f the face a m ou n t o f T rea su ry bills a pplied for, unless the tenders are a ccom p a n ied b y an express gu aranty o f paym ent b y an in corpora ted bank or trust com pan y. Im m ed ia tely after the clo s in g hour, ten ders w ill be op en ed at th e Federal R eserve Banks and B ranches, fo llo w in g w hich p u b lic a n n ou n cem en t w ill be m ade b y th e T rea su ry D ep a rtm en t o f the a m ou n t and price ran ge o f a ccep ted bids. T h o s e subm itting tenders w ill be advised o f the a ccep ta n ce or rejection th ereof. T h e Secretary o f the T rea su ry exp ressly reserves the righ t to a cce p t o r reject a n y or all tenders, in w h ole o r in part, and his action in a n y such resp ect shall b e final. S u b je ct to these reservations, n on com p etitive tenders fo r $200,000 o r less w ith ou t stated price fro m a n y on e b idd er w ill be a ccep ted in full at the a verage price (in th ree decim a ls) o f a ccep ted com p etitive bids. Settlem ent fo r a ccep ted tenders in a ccord a n ce w ith the bids m u st be m ade or com p leted at the Federal R e serv e Bank on January 16, 1958, in cash or oth er im m ediately available funds o r in a like face a m ou n t o f T rea su ry bills m aturing January 16, 1958. Cash and exch a n ge tenders w ill receive equal treatm ent. Cash adjustm ents w ill be m ade fo r differences betw een the par value o f m atu rin g bills a ccep ted in exch an ge and the issue price o f the n ew bills. T h e in co m e derived fr o m T rea su ry bills, w hether in terest or gain fr o m the sale o r oth er d isp osition o f the bills, d oes n ot have a n y exem ption , as such, and lo s s fro m th e sale o r oth er d isp osition o f T rea su ry bills does n ot have a n y special treat m en t, as such, under the Internal R even u e C od e o f 1954. T h e bills are su b ject to estate, inheritance, g ift o r oth er excise taxes, w hether F ed eral o r State, but are exem pt fr o m all taxation n ow o r hereafter im p osed on the principal o r interest th ereof b y a n y State, o r a n y o f the possession s o f the U n ited States, o r by any local ta x in g authority. F o r pu rp oses o f taxation the am ou nt o f d iscou n t at w hich T rea su ry bills are origin a lly sold b y the U n ited States is con sidered to be interest. U n der S ection s 4 5 4 (b ) and 1221(5) o f th e In tern al R even u e C o d e o f 1954 the am ou nt o f discou n t at w h ich bills issued hereunder are so ld is n o t con sidered to a ccru e until such bills are sold , red eem ed or oth erw ise disp osed o f, and such bills are exclu ded fro m con sideration as capital assets. A c c o r d in g ly , th e o w n e r o f T rea su ry bills (oth er than life insurance com p a n ies) issued hereunder need include in his in com e ta x return o n ly the differen ce betw een th e price paid fo r such bills, w hether on original issue o r o n subsequent pu rch ase, and the a m ou n t a ctu a lly receiv ed either upon sale o r red em ption at m aturity du rin g the taxable year fo r w hich the return is m ade, as ord in a ry ga in o r loss. T reasu ry D epartm en t C ircu lar N o . 418, R evised , a n d this n otice, prescrib e the term s o f the T rea su ry bills and govern the con d ition s o f their issue. C op ies o f the circular m a y be obtain ed from any Federal R eserve B ank o r Branch. This Bank will receive tenders up to 1 :30 p.m., Eastern Standard time, Monday, January 13, 1958, at the Securi ties Department o f 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 fo r 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 o f last offering o f Treasury bills (91-day bills dated January 9, 1958, maturing April 10, 1958) T o ta l applied f o r .......... $2,430,399,000 T o ta l a c c e p t e d ...............$1,700,147,000 (in clu des $411,298,000 entered o n a n on com petitive basis and a ccepted in full at the average price show n b e lo w ) R ang e o f accepted com petitive b id s: (e x ce p tin g on e ten der totaling $350,000) H i g h ..................... 99.288 E quivalent rate o f discou nt a p p rox. 2.817% per annum L o w ..................... 99.272 E quivalent rate o f discount 2.880% per annum A v e r a g e ............... 99.278 E quivalent rate o f discou nt a p p rox. 2.858% per annum (1 p ercen t o f the am ou nt bid fo r at the low price w as a ccep ted ) Federal Reserve District ...... N ew Y o r k ............... ...... Philadelphia ............. C leveland ................. R ich m on d ................. A tlanta ..................... C h ica g o ..................... St. L ou is ................. M in n eap olis ............ K an sas C ity .......... D allas ........................ San F ra n cisco ........ T o t a l .................. ...... Total Applied for $ 45,410,000 1,647,812,000 48,419.000 79,889.000 23.378,000 49,823,000 244.545,000 46,060,000 23,838.000 59,148.000 39,733,000 122,344,000 $2,430,399,000 Total A ccepted $ 35,410,000 1,007,918.000 41,419,000 79,889,000 23,378,000 48,228,000 193.615.000 46.030.000 23,340.000 59.148,000 39,733,000 102,039,000 $1,700,147,000 (O T K ») N o— TENDER FOR 91 -D A Y TREASURY BILLS Dated January 16, 1958 To Maturing April 17, 1958 Dated a t ...................... F ederal R eserve B a n k of N e w Y o rk , 1 9 ... Fiscal Agent o f the United States. Pursuant to the provisions o f 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: COMPETITIVE TENDER C D o not fill in both Com petitive and NNoncom n, on competitive petitivetenders tenderson onone onefo forrm $ ........................................................ (maturity value), or any lesser amount that may be awarded. P r ic e :.................................. per 100. (P r ic e m ust b e exp ressed w ith n ot m ore than three decimal places, f o r exam ple, 99.925) | ■ J NONCOMPETITIVE TENDER $ ........................................................ (maturity value). (N o t to ex ceed $200,000 f o r one bidder through all sou rces) 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. D eliver over the counter to the undersigned □ 2. Ship to the undersigned □ 3. H old in safekeeping ( f o r a c count o f member bank on ly) □ 4. Allotm ent attached) □ 5. Special instructions: 100,000 500,000 transfer (see list 1,000,000 (No changes in delivery instructions will be accepted) Totals Paym ent will be made as fo llo w s : □ B y charge to our reserve account □ B y cash o r other immediately avail able funds □ B y surrender o f $ ........................... (m aturity value) o f maturing Treasu ry bills. P ay cash adjust ment, if any— □ B y check □ B y credit to our reserve account (P aym en t cannot be made through T reasury T a x and Loan A ccou n t) The undersigned (if a bank or trust company) hereby certifies that the Treasury bills which you are hereby instructed to dispose o f in the manner indicated in item 3 above are solely owned by the undersigned. N a m 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) (Name of customer) (Address) IN S T R U C T IO N S : 1. N o ten d er fo r le ss than $1,000 w ill be co n sid e re d , and each ten der m ust b e fo r an even m u ltiple o f $1,000 (m a tu rity valu e). 2. O th e rs than b a n k in g institutions w ill n ot be p erm itted to subm it tenders e x c e p t f o r their o w n a cco u n t. B anks su b m ittin g tenders fo r cu sto m e r a cco u n t m a y co n so lid a te co m p e titiv e 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 bidder, the a m ou n t b id f o r his accou n t, an d m e th o d o f paym ent. F o r m s f o r this p u rp ose w ill be furn ished on request. 3. I f the p e r so n m a k in g the ten der is a c o rp o ra tio n , the tender sh ou ld be signed b y an o ffice r o f the co r p o r a tio n a u th o rize d to m ake the ten der, and the sign in g o f the ten der b y an officer o f the c o r p o r a tio n w ill be co n stru e d as a representation b y him that he has been s o au th orized. I f the tender is m ade b y a partnersh ip, it sh 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 r m “ ................................................................................................, a co p a rtn e rsh ip , b y ..................................................................................................................... a m em b er o f th e firm .’ ' 4. T e n d e r s w ill be re ce iv e d w ith ou t d e p o s it fr o m in co rp o ra te d banks and trust co m p a n ie s a n d fro m re s p o n sib le a n d re co g n iz e d dea lers in in vestm en t securities. T en d ers fr o m oth ers m u st b e a cco m p a n ie d b y p a y m en t o f 2 p e rce n t o f th e fa ce a m ou n t o f T r e a s u ry bills a pp lied fo r, u n less th e ten ders are a cco m p a n ie d b y an ex p re s s gu a ra n ty o f p a ym en t b y an in co rp o ra te d b a 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 any resp ect, w h ich , in the o p in io n o f the S ecreta ry o f the T re a s u ry , is m aterial, th e ten der m a y be disregarded. (o v e r )
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