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FEDERAL RESERVE BANK O F NEW YO R K Circular No. 4 6 5 8 1 November 6, 1958 J Fiscal Agent o f the United States O ffe r in g o f $ 1 ,8 0 0 ,0 0 0 ,0 0 0 o f 9 2 -D a y T r e a s u r y B ills Dated November 13, 1958 Maturing February 13, 1959 T o all Incorporated Banks and T ru st Companies, and O thers Concerned, in the Second F ederal R eserv e D istrict: F o l l o w i n g is t h e t e x t o f a n o t ic e p u b lis h e d t o d a y : 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 , N o v e m b e r 6, 1958. TREASU RY DEPARTM ENT W a s h in g to n T h e T r e a s u ry D epa rtm 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 9 2 -d a y T re a su ry bills, f o r cash and in e x ch a n g e f o r T rea su ry bills m a tu rin g N o v e m b e r 13, 1958, in th e a m ou n t o f $1,699,217,000, to be issued on a d isco u n t basis under com p etitive and n o n co m p e titiv e b id d in g as h ereinafter provid ed . T h e bills o f this series w ill b e dated N o v e m b e r 13, 1958, and w ill m ature F eb ru a ry 13, 1959, w h en th e fa ce a m ou n t w ill b e pa ya 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 receiv ed at F ed eral R e serv e B an ks and B ra n ch es up t o th e c lo s in g h ou r, o n e -th irty o ’ c lo c k p. m ., E astern S ta n da rd tim e, M o n d a y , N o v e m b e r 10, 1958. T e n d e rs w ill n o t be receiv ed a t the T r e a s u ry D ep a rtm en t, W a s h in g to n . E a ch ten der m u st b e fo r an even m u ltiple o f $1,000, and in th e case o f co m p e titiv e ten ders th e p rice o ffe re d m u st be exp ressed o n th e basis o f 100, w ith n ot m o re than th ree decim a ls, e.g., 99.925. F r a c tio n s m a y n o t be u sed. It is u rg ed that ten d e rs be m a d e o n the printed fo rm s a n d 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 ank s o r B ra n ch es o n a pp lica tion th erefor. O th e rs than b a n k in g in stitu tions w ill n o t be perm itted to subm it tenders e x cep t fo r th eir o w n a ccou n t. T en d ers w ill be receiv ed w ith ou t dep osit fr o m in corp ora ted banks and trust com p a n ies and fro m resp on sib le and re co g n iz e d 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 p a ym en t o f 2 p ercen t o f the face a m ou n t o f T rea su ry bills a pplied fo r, unless the tenders are a ccom p a n ied b y an exp ress gu aranty o f p a y m 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 ou r, ten ders w ill be op en ed at the F ed eral R e s e rv e B anks and B ra n ch es, 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 epa rtm en t o f the a m ou n t a n d price ran ge o f a ccep ted bids. T h o s e su b m ittin g ten ders w ill b e a d vised o f th e a ccep ta n ce o r re je ctio n th ereof. T h e S ecreta ry o f th e T rea su ry e x p re s sly reserves the righ t to a cce p t o r reject a n y o r all tenders, in w h o le or in part, and his a ction in a n y such resp ect shall b e final. S u b ject to th ese reserva tion s, n on com p etitive ten ders fo r $200,000 o r less w ith ou t stated p rice fr o m a n y on e b idd er will be a cce p te d in full at the a vera ge p rice (in three d ecim a ls) o f a ccep ted com p etitive bids. S ettlem ent fo r a ccep ted tenders in a ccord a n ce w ith the bids m u st be m ade o r co m p le te d at the F ed era l R eserve B ank on N o v e m b e r 13, 1958, in cash or oth er im m ediately available fu n ds o r in a like fa ce a m ou n t o f T r e a s u ry bills m a tu rin g N o v e m b e r 13, 1958. Cash and e x ch a n g e ten ders w ill re ce iv e equal treatm ent. C ash a d ju stm en ts w ill be m a d e f o r d ifferen ces betw een the pa r va lu e o f m a tu rin g bills a cce p te d in e x ch a n g e and th e issue p r ice o f th e n ew b ills. T h e in co m e derived fro m T rea su ry b ills, w h eth er interest o r gain fr o m the sale o r oth er d isp osition o f the bills, d oes n o t have a n y e x e m p tion , as such, and lo s s fr o m the sale o r oth er d isp osition o f T r e a s u ry bills d oes n ot have a n y special treat m en t, as such, under the Internal R even u e C o d e o f 1954. T h e bills are su b ject t o estate, inheritance, g ift or oth er ex cise taxes, w h eth er F ed eral o r State, but are exem p t fro m all taxation n o w o r hereafter im p osed on the principal o r interest th ere o f b y a n y State, o r any o f the p ossession s o f th e U n ited States, o r b y a n y lo ca l ta x in g authority. F o r pu rp oses o f taxation the a m ou n t o f d iscou n t at w h ich T rea su ry bills are orig in a lly sold b y th e U n ited States is con sid ered to be interest. U n d er S e ctio n s 4 5 4 (b ) and 1221(5) o f th e Internal R even u e C o d e o f 1954 the a m ou n t o f d iscou n t at w h ich bills issued hereunder are so ld is n o t con sidered to a ccru e u ntil such bills are sold, red eem ed o r oth erw ise disp osed o f, and such bills are exclu d ed fr o 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 h ereun der need in clu d e in his in com e tax return on ly th e differen ce b etw een the p rice paid fo r such bills, w hether on origin a l issue o r o n subsequent purchase, and the a m ou n t actu a lly received eith er u p on sale o r red em p tion at m aturity d u rin g the taxable yea r fo r w h ich the return is m ade, as ord in a ry gain o r loss. T rea su ry D epa rtm en t C ircu la r N o . 418, R evised , and this n otice, prescrib e the term s o f th e T rea su ry bills and g o v e rn 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 fr o m a n y F ed eral R e serv e B a n k o r B ranch. T h i s B a n k w i ll r e c e iv e t e n d e r s u p t o 1 :3 0 p .m ., E a s t e r n tie s D e p a r t m e n t o f its H e a d O f fic e a n d a t its B u f f a lo B r a n c h . s u b m it a te n d e r , a n d r e t u r n it in a n e n v e lo p e m a r k e d “ T e n d e r s u b j e c t t o w r it t e n c o n f i r m a t i o n ; t h e y m a y n o t b e s u b m itt e d b y credit through the Treasury T ax and Loan Account. funds or in maturing Treasury bills. S t a n d a r d tim e , M o n d a y , N o v e m b e r 1 0 , 1 9 5 8 , a t th e S e c u r i P le a s e u s e th e f o r m o n th e r e v e r s e s id e o f t h is c ir c u l a r t o f o r T r e a s u r y B ills .” T e n d e r s m a y b e s u b m itt e d b y te le g r a p h , te le p h o n e . Paym ent f o r the Treasury bills cannot be made by Settlement must be made in cash o r other immediately available A lfr e d H ayes, President. Results o f the last offering o f Treasury bills (9 1 -d a y bills dated N ovem ber 6, 1958, m aturing February 5, 1959) T o t a l a p p lie d fo r . . .$2,814,757,000 T o t a l a cce p te d ......... $1,802,354,000 (in clu d es $300,940,000 en tered o n a n o n co m p e titiv e basis and a ccep ted in full at the a vera ge price s h o w n b e lo w ) R a n g e o f a cce p te d co m p etitiv e b id s : (e x ce p tin g on e te n d e r o f $400,000) E q u iva len t ra te o f d iscou n t H ig h ........... . . . 99.335 a p p ro x . 2.631% p er annum E q u iva len t rate o f d is co u n t L o w ............. 99.329 a p p rox. 2.655% p er annum E q u iva len t ra te o f d iscou n t A v e ra g e . . . . . . 99.330 a p p rox . 2.649% p e r annum (9 4 p e r c e n t o f t h e a m o u n t b id f o r at th e l o w p r ic e w a s a c c e p t e d ) Federal R eserve D istrict B o s to n ........................ . . N e w Y o r k ................ P h iladelphia ............. 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 ansas C ity .............. D a lla s ........................... San F r a n cisco ......... T ota l ........... . . Total A pplied f o r $ 55,460,000 1,948,749,000 43,409,000 65,412,000 19,944,000 31,176,000 366,049,000 39,931,000 23,856,000 52,921,000 24,106,000 143,744,000 $2,814,757,000 Total A ccep ted $ 35,835,000 1,170,168,000 21,430,000 42,487,000 16,613,000 21,325,000 313,832,000 32,208,000 19,634,000 38,581,000 21,506,000 68,735,000 $1,802,354,000 Please n ote that the cu rren t offering is f o r 92-day Treasury bills. (oveb) IMPORTANT— Please note that this offering is for 92-day Treasury bills, which will mature on Friday, February 13, 1959, because February 12 is Lincoln’s Birthday. No.......................... TENDER FOR 92-DAY TREASURY BILLS Dated November 13, 1958 To F ederal Maturing February 13, 1959 D a t e d a t ................................ R eserve B a n k o f N e w Y o r k , 19... F is c a l A g e n t o f th e U n it e d S ta tes. P u r s u a n t t o th e p r o v is io n s o f T r e a s u r y D e p a r t m e n t C ir c u la r N o . 4 1 8 , R e v is e d , a n d t o th e p r o v is io n s o f t h e p u b lic n o t ic e is s u e d b y th e T r e a s u r y D e p a r t m e n t a n d p r in t e d o n th e r e v e r s e s id e o f th is te n d e r , th e u n d e r s ig n e d h e r e b y o f f e r s t o p u r c h a s e t h e a b o v e d e s c r ib e d T r e a s u r y b ills in th e a m o u n t in d ic a t e d b e lo w , a n d a g r e e s t o m a k e p a y m e n t t h e r e f o r a t y o u r B a n k o n o r b e f o r e th e is s u e d a t e a t th e p r ic e in d ic a t e d b e l o w : C COMPETITIVE TENDER D o not fill in both Com petitive and N oncom petitive tenders on one fo rm N oncom petitive tenders on one fo r m $ ..........................................................................( m a t u r it y v a l u e ) , o r a n y le s s e r a m o u n t th a t m a y b e a w a r d e d . 1 J NONCOMPETITIVE TENDER $ ......................................................................... ( m a t u r it y v a l u e ) . (N o t to ex ceed $200,000 f o r one bidder through all sources) P r i c e : ............................................. p e r 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 th e a v e r a g e p r ic e o f a c c e p te d c o m p e t it iv e b id s . S u b je c t t o a llo tm e n t, p le a s e is s u e , d e liv e r , a n d a c c e p t p a y m e n t f o r th e b ills a s in d ic a te d b e l o w : Pieces Denomination M aturity value 3. H old in safekeeping ( f o r ac count o f member bank only) □ 4. Allotment attached) □ 10,000 2. □ 5,000 1. D eliver over the counter to the undersigned □ 1,000 □ 5. Special instructions: 100,000 500,000 (see list □ B y charge to our reserve account □ Ship to the undersigned transfer Paym ent will be made as fo llo w s : 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, i f any— □ □ 1,000,000 (N o changes in delivery instructions will be accepted) Totals 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) T h e u n d e r s ig n e d ( i f a b a n k o r tr u s t c o m p a n y ) h e r e b y c e r t ifie s th a t th e T r e a s u r y b ills w h i c h y o u a re h e r e b y in s t r u c t e d t o d is p o s e o f in th e m a n n e r in d ic a t e d in ite m 3 a b o v e a r e s o le ly o w n e d b y th e u n d e r s ig n e d . N am e o f su bscriber Insert this tender in special en velop e m a rk ed “ T e n d e r _ fo r Treasury Bills” (Please print) By ................................. T i t l e ............................... A d d re s s By (Official signature(s) required) ...................... . T i t l e ........... ........................................................................................................ (B anks submitting tenders fo r customer account must indicate name on line below , or attach a list) (;«u:::e of customer) (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 each ten d er m u st b e f o 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 perm itted to su b m it ten ders e x ce p t f o r their o w n a ccou n t. B ank s su b m ittin g ten ders f o r c u sto m e r a ccou n t m ay 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 te n 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 b id d er, the a m ou n t b id f o r his a ccou n t, and m e th o d o f paym ent. F orm s fo r this pu rp ose w ill be fu rn ish ed on request. 3. I f the p e rson 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 o rize d to m a k e 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 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 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 e m b e r o f th e firm .” 4. T e n d e r s w ill be receiv ed 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 and fro m re s p o n sib le and re co g n iz e d dea lers in in vestm ent securities. T en d ers fr o m oth ers m u st be a cco m p a n ie d b y paym ent o f 2 p ercen t o f th e fa ce a m ou n t o f T rea su ry bills a pp lied fo r , u nless th e tenders are a ccom p a n ied b y an exp ress gu aranty o f paym ent b y an in co rp o ra te d bank 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 ed in a n y resp ect, w hich, in th e o p in io n o f the S ecreta ry o f the T rea su ry, is m aterial, th e ten d er m a y b e disregarded. (o v e r )
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