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FEDERAL RESERVE BANK O F NEW YO RK r Circular N o. 4 6 4 1 1 I September 25, 1958 J Fiscal Agent o f the United States Offering o f $1,800,000,000 o f 92-Day Treasury Bills Dated October 2, 1958 Maturing January 2, 1959 T o all In corporated Banks and Trust Companies, and Others Concerned, in the Second Federal R eserv e D istrict: F ollow in g is the text o f a notice published to d a y : TREASU RY DEPARTM EN T W a sh in g to n 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 , S ep tem ber 25, 1958. T h e T r e a s u ry D epartm en t, b y this p u b lic n otice, invites ten ders fo r $1,800,000,000, o r th erea b ou ts, o f 92 -d a y T rea su ry bills, fo r cash and in e x ch a n g e fo r T r e a s u ry bills m a tu rin g O c t o b e r 2, 1958, in th e a m ou n t o f $1,699,816,000, t o b e issued on a d is co u n t basis u nder co m p etitive and n on com p etitiv e b id d in g as h erein a fter provid ed . T h e bills o f this series w ill be dated O c t o b e r 2, 1958, and w ill m ature J a n u a ry 2, 1959, w h en the fa ce a m ou n t w ill b e p a y a b le w ith ou t interest. T h e y w ill be issued in bearer fo r m on ly , and in den om in a tion s o f $1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,000 (m a tu rity v a lu e ). T e n d e rs w ill be received at Federal R eserve Banks and B ran ch es up t o the clo s in g hour, tw o o ’ c lo ck p.m ., E astern D a y lig h t S a vin g tim e, M on d a y , S ep tem ber 29, 1958. T e n d e rs w ill n ot be receiv ed at the T rea su ry D epa rtm en t, W a s h in g to n . E ach ten der m u st be f o r an even m u ltiple o f $1,000, and in th e ca se o f co m p e titiv e ten ders the p rice o ffe re d m u st be exp ressed on the basis o f 100, w ith n ot m ore than th ree decim a ls, e.g., 99.925. F r a c tio n s m a y n ot be used. It is u rg ed that ten d ers be m ade o n the printed fo rm s and fo rw a rd e d in the special en v elop es w h ich w ill be sup plied b y F ed eral R eserve B anks o r B ran ch es o n a pp lica tion th erefor. O th e rs than b a n k in g institutions w ill n o t be perm itted to subm it tenders e x cep t fo r th eir ow n a ccou n t. T en d ers w ill be receiv ed w ith o u t d ep o sit fr o m in corp ora ted banks and trust com p a n ies and fro m resp on sib le and recog n ized dealers in in vest m en t securities. T e n d e rs fr o m oth ers m u st be a ccom p a n ied b y pa ym en t o f 2 p ercen t o f the face a m ou n t o f T r e a s u ry bills a pp lied fo r, unless th e tenders are a ccom p a n ied b y an exp ress gu aranty o f p a ym en t b y an in corp ora ted bank o r trust com p a n y . Im m e d ia te ly after the clo s in g h our, ten ders w ill be op en ed at the F ed eral R es e rv e Banks and B ran ches, fo llo w in g w hich pu b lic a n n ou n cem en t w ill be m ade b y th e T rea su ry D epa 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 su b m ittin g ten ders w ill be a d vised o f the a ccep ta n ce o r re je ctio n th ereof. T h e S ecreta ry o f the T rea su ry ex p re s sly reserves the righ t to a cce p t o r re ject a n y o r all tenders, in w h o le or in part, and his a ction in any such resp ect shall be final. S u b ject to th ese reservations, n o n com p etitive ten ders fo r $200,000 o r less w ith ou t stated p rice fro m any on e b idd er will be a ccep ted in full at the a vera ge price (in three d ecim a ls) o f a ccep ted com p etitiv e bids. Settlem ent fo r a ccep ted tenders in a ccord a n ce w ith the b id s m u st be m ade or com p le te d at the F ed eral R e s e rv e B ank on O c t o b e r 2, 1958, in cash o r oth er im m ediately available fu n ds o r in a like face a m ou n t o f T r e a s u ry bills m a tu rin g O c t o b e r 2, 1958. Cash and e x ch a n g e ten ders w ill receiv e equal treatm ent. Cash ad ju stm en ts w ill be m ade fo r d ifferen ces betw een th e pa r va lu e o f m a tu rin g bills a cce p te d in ex ch a n g e and the issue p rice o f the n ew bills. T h e in co m e derived fro m T rea su ry bills, w h eth er interest o r gain fro m the sale or oth er disp osition o f the bills, d o e s n ot have any e x e m p tion , as such, and loss fr o m the sale o r oth er d isp osition o f T r e a s u ry bills d oes not have any special treat m ent, as such, under the Internal R even u e C o d e o f 1954. T h e bills are su b ject to estate, inheritance, g ift o r oth er ex cise taxes, w h eth er F ed eral o r State, but are exem p t fr o m all taxation n ow o r hereafter im p osed on the principal o r interest th ereo f b y any State, o r a n y o f the possession s o f the U n ited States, or b y any lo ca l taxing authority. F o r pu rp oses o f taxation the am ou n t o f d iscou n t at w h ich T rea su ry bills are origin a lly sold b y the U n ited States is con sid ered to be interest. U n der S ection s 4 5 4 (b ) and 1221(5) o f the Internal R even u e C od e o f 1954 th e am ou nt o f d iscou n t at w h ich bills issued hereunder are so ld is n o t con sid ered to a ccru e until such bills are sold, red eem ed o r oth erw ise disp osed o f, and such bills are exclu ded fro m con sidera tion as capital assets. A c c o r d in g ly , the ow n er o f T rea su ry bills (o th e r than life insurance co m p a n ie s ) issued hereun der need in clu d e in his in com e ta x return o n ly the differen ce betw een the p rice paid fo r such bills, w hether on original issue o r o n subsequent purchase, and the a m ou n t actu a lly received either u p on sale o r red em p tion at m aturity du rin g the taxable year fo r w h ich the return is m ade, as ord in a ry gain o r loss. T re a su ry D epa rtm en t C ircu lar N o . 418, R evised , and this n otice, prescrib e the term s o f the T rea su ry bills and govern the co n d itio n s o f their issue. C op ies o f th e circular m a y be obtain ed fro m a n y Federal R eserve B ank o r B ranch. T his Bank will rcceive tenders up to 2 p.m., Eastern Daylight Saving time, M onday, Septem ber 29, 1958, at the S ecuri ties Departm ent o f its H ead Office and at its B uffalo Branch. Please use the fo rm on the reverse side o f this circular to submit a tender, and return it in an envelope marked “ T en d er fo r T reasury B ills.” T enders may be submitted by telegraph, su bject to written con firm ation ; they may not be submitted by telephone. P a y m e n t f o r the T r e a s u r y bills c a n n o t b e m a d e b y credit t h r o u g h the T r e a s u r y T a x a n d L o a n A c c o u n t . Settlement must be made in c a s h o r o t h e r i m m e d i a t e l y available f u n d s o r in m a t u r i n g T r e a s u r y bills. A lfr e d H a y e s , President. Results of the last offering of Treasury bills (92-d a y bills dated September 25 , 1958, maturing December 26 , 1958) T o t a l a p p lie d fo r ...$2,575,969,000 T o t a l a c c e p t e d ......... $1,800,187,000 (in clu d es $359,860,000 en tered on a n on com p etitiv e basis and a ccep ted in full at the a verage p rice s h o w n b e lo w ) R a n g e o f a cce p te d co m p e titiv e b id s: H ig h ........... 99.375 L ow ........... 99.352 A v e ra g e ... 99.358 E quivalent rate a p p rox . 2.446% E quivalent rate a p p rox . 2.536% E quivalent ra te a p p rox. 2.511% o f d iscou n t p er annum o f d iscou n t per annum o f d iscou n t p er annum (78 p ercen t o f the a m ou n t bid f o r at the low p rice w as a ccep ted ) F edera l R eserv e D istrict B o s to n ........... N ew Y o r k . . . P h iladelp hia C levelan d . . . . R ic h m o n d . . . A tla n ta ........... C h ica g o ......... St. L o u is M in n ea p olis K an sas C ity . D a lla s .............. San F r a n cis co T o t a l ............... Total A pplied f o r $ 44,515,000 1,837,785,000 44.760.000 63.928.000 28.396.000 32.147.000 283,616,000 39.482.000 24.953.000 57.703.000 22.996.000 95.688.000 $2,575,969,000 Total A c cep ted t 33,915,000 1,176,225,000 29.560.000 63.428.000 27.396.000 29.747.000 218,739,000 39.347.000 24.143.000 46.703.000 22.796.000 88.188.000 $1,800,187,000 Please n ote that the cu rren t offering and the results shown above are f o r 92-d ay T reasury bills. ( over ) I M P O R T A N T — P lease n ote that clo sin g tim e is 2 p .m ., Eastern D a y lig h t S aving tim e. I M P O R T A N T — P lease n o te that this o ffe rin g is fo r 92-day T reasu ry b ills, w h ich w ill m ature o n F rid a y , January 2, 1959, b eca u se T h u rsd a y, Jan uary 1, w ill b e N ew Y e a r ’ s Day. N o......................... 1958. TENDER FO R 92-D A Y T R E A S U R Y BILLS D ated O cto b e r 2, 1958 M atu rin g January 2, 1959 29, Pursuant to the provisions o f T reasury Department Circular N o. 418, R evised, and to the provisions o f the public notice issued b y the T reasu ry Department and printed on the reverse side o f this tender, the under signed hereby offers to purchase the above described T reasury bills in the amount indicated below , and agrees to make payment th erefor at you r Bank on o r b efore the issue date at the price indicated b e lo w : Closing time for receipt of tenders is 2 p.m., Eastern Daylight Saving time, Monday, September Dated at To F e d e ra l R eserv e B a n k o f N e w Y o r k , 19... Fiscal A gen t o f the U nited States. C C O M P E T IT IV E T E N D E R D o not fill in both Com petitive and NNon com petitive oncom petitivetenders tenderson onone onefo forr,,, m JJ $ ............................................................... (m aturity va lu e), o r any lesser amount that may be awarded. N O N C O M P E T IT IV E T E N D E R $ ............................................................... (m aturity valu e). (N o t to exceed $200,000 f o r one bidder through all sources) P r i c e : .......................................per 100. (P r ic e must be expressed with not m ore than three decimal places, f o r exam ple, 99.925) A t the average price o f accepted competitive bids. Su bject to allotment, please issue, deliver, and accept payment fo r the bills as indicated b e lo w : 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 only) □ 4. Allotment attached) □ 5. Special instructions: 100,000 transfer (see list 500,000 1, 000,000 (N o changes in delivery instructions will be accepted) Total s- Paym ent w ill 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. P ay cash adjust ment, if any— □ B y check □ B y credit to our reserve account (Paym ent cannot be made through Treasury T a x and Loan A ccoun t) T h e undersigned ( i f a bank or trust com pan y) hereby certifies that the T reasury bills which you are hereby instructed to dispose o f in the manner indicated in item 3 above are solely ow ned by the undersigned. N am e o f su b scrib er ........... Insert this tender in special en velope m a rk ed “ T e n d er _ for Treasury Bills” (P le a s e prin t) By ............................................... .................... , B y ................ (O fficia l s ig n a tu r e (s ) re q u ire d ) 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 sto m e r) (A d d r e s s ) 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 each ten der m u st be fo r an even m u ltiple o f $1,000 (m a tu rity v a lu e). 2. O th e rs than b a n k in g in stitu tions w ill n o t be p erm itted t o subm it ten ders e x cep t f o r their o w n a ccou n t. B anks su b m ittin g ten ders f o r c u sto m e r a cco u n t m ay co n so lid a te com p etitive ten ders at the same price and m a y con 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 a tta ch ed s h o w in g the nam e o f each bidd er, th e a m ou n t b id fo r his a cco u n t, and 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 erson m a k in g the 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 orized t o m ake th e ten der, and th e sig n in g o f th e ten der b y an officer o f th e co rp o ra tio n w ill be co n stru e d as a representation b y him that he has been s o a u th orized . I f th e ten der 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 s h ou ld sign in the fo r m “ ............................................................................................... . a cop a rtn ersh ip , b y ................................................................................................................... , a m em b er o f th e firm .” 4. T e n d e r s w ill be receiv ed w ith ou t d ep osit fr o m in co rp o ra te d banks and trust com p a n ies and fro m re s p o n sib le and re co g n iz e d dealers in investm ent securities. T en d ers fr o m o th ers m ust b e a ccom p a n ied b y paym ent o f 2 p ercen 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 nless the ten ders are a ccom p a n ied b y an exp ress gu aranty o f paym ent b y an in corp ora ted b a n k o r trust com p a n y . 5. I f the la n g u a ge o f this ten der is ch a n g e d in a n y resp ect, w h ich , in the o p in io n o f the S ecreta ry o f the T rea su ry, is m aterial, th e ten der m a y be disregarded. ( over )