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FED ERAL RE SE R V E BANK
OF NEW YORK
Fiscal A g en t o f the U nited States
48
[ Circular No.1960 7 1
A pril 7,

Offering of $2,000,000,000 of Special 365-Day Treasury Bills
Dated April 15,1960

Maturing April 15, 1961

T o A ll Incorporated Ranks and T rust Companies, and O th ers Concerned,
in the Second F ederal R eserve District:

Follow ing is the text o f a notice issued by the Treasury Department for release today:
T he Treasury Department, by this public notice, invites
tenders for $2,000,000,000, or thereabouts, o f 365-day Treasury
bills, for cash and in exchange for Treasury bills maturing
A pril 15, 1960, in the amount o f $2,003,314,000, to be issued
on a discount basis under competitive and noncompetitive
bidding as hereinafter provided. T he bills o f this series will be
dated April 15, 1960, and will mature April 15, 1961, when
the face am ount will be payable without interest. T h ey w ill be
issued in bearer form only, and in denominations o f $1,000,
$5,000, $10,000, $100,000, $500,000 and $1,000,000 (maturity
value).
Tenders w ill be received at Federal Reserve Banks and
Branches up to the closing hour, one-thirty o ’clock p.m.. East­
ern Standard time, Tuesday, April 12, 1960. Tenders w ill be
received at the Federal Reserve Banks o f Philadelphia and
C hicago and at the Baltim ore Branch o f the Federal Reserve
Bank o f Richm ond only from bidders w hose principal places
o f business are located in their respective districts, except in
those cases where bidders located in other areas customarily
enter their tenders through Philadelphia, Chicago, or Baltimore.
T enders w ill not be received at the Treasury Department,
W ashington. Each tender must be for an even multiple of
$1,000, and in the case o f competitive tenders the price offered
must be expressed on the basis o f 100, with not m ore than three
decimals, e.g., 99.925. Fractions may not be used. (N otw ith ­
standing the fact that these bills will run for 365 days, the dis­
count rate w ill be computed on a bank discount basis o f 360
days, as is currently the practice on all issues o f Treasury bills.)
It is urged that tenders be made on the printed form s and
forwarded in the special envelopes which will be supplied by
Federal Reserve Banks or Branches on application therefor.
Others than banking institutions w ill not be permitted to
submit tenders except for their ow n a ccou n t Tenders w ill be
received without deposit from incorporated banks and trust
com panies and from responsible and recognized dealers in
investment securities. Tenders from others must be accom ­
panied by payment o f 2 percent o f the face amount o f Treasury
bills applied for, unless the tenders are accompanied by an
express guaranty o f payment by an incorporated bank or trust
com pany.
A ll bidders are required to agree not to purchase or to sell,
or to make any agreements with respect to the purchase or
sale or other disposition o f any bills o f this issue, until after
one-thirty o ’clock p.m., Eastern Standard time, Tuesday,
A pril 12, 1960.

Immediately after the closing hour, tenders will be opened
at the Federal Reserve Banks and Branches, follow in g which
public announcement will be made by the Treasury Department
o f the amount and price range o f accepted bids. Those sub­
mitting tenders w ill be advised o f the acceptance or rejection
thereof. T h e Secretary o f the Treasury expressly reserves the
right to accept or reject any or all tenders, in whole or in part,
and his action in any such respect shall be final. Subject to
these reservations, noncompetitive tenders for $400,000 or less
without stated price from any one bidder w ill be accepted in
full at the average price (in three decim als) o f accepted com ­
petitive bids. Settlement for accepted tenders in accordance
with the bids must be made or com pleted at the Federal
Reserve Bank on April 15, 1960, in cash or other immediately
available funds or in a like face amount o f Treasury bills
maturing April 15, 1960. Cash and exchange tenders will
receive equal treatm ent Cash adjustments w ill be made for
differences between the par value o f maturing bills accepted in
exchange and the issue price o f the new bills.
T he incom e derived from Treasury bills, whether interest
or gain from the sale or other disposition o f the bills, does not
have any exemption, as such, and loss from the sale or other
disposition o f Treasury bills does not have any special treat­
ment, as such, under the Internal Revenue Code o f 1954. The
bills are subject to estate, inheritance, gift or other excise
taxes, whether Federal or State, but are exem pt from all taxa­
tion now or hereafter imposed on the principal or interest
thereof by any State, or any o f the possessions o f the United
States, or by any local taxing authority. F or purposes o f
taxation the amount o f discount at which Treasury bills are
originally sold by the United States is considered to be interest
Under Sections 454 (b ) and 1221 (5 ) o f the Internal Revenue
Code o f 1954 the amount o f discount at which bills issued
hereunder are sold is not considered to accrue until such bills
are sold, redeemed or otherwise disposed of, and such bills
are excluded from consideration as capital assets. A ccordingly,
the ow ner o f Treasury bills (other than life insurance com ­
panies) issued hereunder need include in his incom e tax return
only the difference between the price paid for such bills,
whether on original issue or on subsequent purchase, and the
amount actually received either upon sale or redemption at
maturity during the taxable year for which the return is made,
as ordinary gain or loss.
Treasury Departm ent Circular N o. 418, Revised, and this
notice, prescribe the terms o f the Treasury bills and govern
the conditions o f their issue. Copies o f the circular may be
obtained from any Federal Reserve Bank or Branch.

PLEASE NOTE, in the second paragraph o f the Treasury’s notice, the special provision relating to
receipt o f tenders at the Federal Reserve Banks o f Philadelphia and Chicago and the Baltimore Branch o f the
Federal Reserve Bank o f Richmond. This provision will apply only to tenders for this issue and is necessary
because the Banks and Branch referred to will be closed on A pril 15, 1960, the issue date o f the bills.
This Bank will receive tenders up to 1 :30 p.m., Eastern Standard time, Tuesday April 12, 1960, at the
Securities 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 the enclosed yellow envelope marked “ Tender for Special Treasury
Bills.” Tenders may be submitted by telegraph, subject to written confirmation; they may not be submitted by tele­
phone. 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

lfred

H

ayes.

President.
( over)

IM P O R T A N T — The discount rate on the bills o f this issue w ill be com puted on a bank discount basis of
360 days, as is currently the practice on all issues o f Treasury bills.

No............................
TENDER FOR SPECIAL 365-DAY TREASURY BILLS
Dated April 15, I960
To

F e d e ra l R eserve B a n k o f N ew

Maturing April 15, 1961
Dated at

Y ork ,

1960

Fiscal A gent of the United States.

Pursuant to the provisions o f Treasury Department Circular N o. 418, Revised, and to the provisions of
the public notice issued by the Treasury Department and printed on the reverse side o f 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 b elow :
C O M P E T IT IV E T E N D E R

[

D o not fill in both Competitive and

Noncompetitive tenders on one form

$ ............................................................ (maturity value),
or any lesser amount that may be awarded.
P rice: .....................................per 100.
(Price must be expressed with not more than three
decimal places, for example, 99.925)

N O N C O M PE TITIV E TEN DER

J

$ ............................................................ ( maturity value ).
( Not to exceed $400,000 fo r one bidder through all sources)

A t the average price of accepted competitive bids.

Subject to allotment, please issue, deliver, and accept payment for the bills as indicated below:
Pieces

Denomination

$

Maturity value

Payment will be made as follows:

□ 1. Deliver over the counter to the

1,000

undersigned

□

5,000

□

10,000
100,000

□ 4. Allotment transfer

(see

list

attached)

G

5. Special instructions:

By cash or other immediately avail­
able funds

□

3. Hold in safekeeping (fo r ac­
count o f member bank only)

By charge to our reserve account

□

□ 2. Ship to the undersigned

By surrender o f $ ..............................
(maturity value) o f maturing
Treasury bills. Pay cash adjust­
ment, if any—

1, 000,000

0

(N o changes in delivery instructions
will be accepted)

Totals

By check

□

500,000

By credit to our reserve account

(P aym en t cannot be made through
Treasury T a x and Loan A ccoun 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 owned solely by the undersigned.
W e hereby agree not to buy or to sell, or to make any agreements with respect to the purchase or sale
or other disposition of any bills of this issue, until after one-thirty o’clock p.m., Eastern Standard time, Tuesday,
April 12, 1960.
Name o f subscriber ..............................................................................................................................
(Please print)

*1

Insert this tender
in yellow en velope
marked “ Tender for
Special Treasury Bills’

By

By
Title

(Official signature(s) required)

........................................................................Title ...............

Address
(Banks submitting tenders for 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 tender for less than $1,000 will be considered, and each tender must be tor an even multiple o f $1,000
(maturity value).
2. Others than banking institutions w ill not be permitted to submit tenders except for their ow n account. Banks
submitting tenders for custom er account may consolidate competitive tenders at the same price and may consolidate
noncompetitive tenders, provided a list is attached show ing the name o f each bidder, the amount bid for his account,
and m ethod o f payment. F orm s for this purpose will be furnished on request
3. If the person making the tender is a corporation, the tender should be signed by an officer o f the corporation
authorized to make the tender, and the signing o f the tender by an officer o f the corporation w ill be construed as a
representation by him that he has been so authorized. I f the tender is made by a partnership, it should be signed by a
member o f the firm, w ho should sign in the form “ .............................................................................................a copartnership, by
......................................................................................................... a mem ber o f the firm.”
4. Tenders will be received without deposit from incorporated banks and trust companies and from respon­
sible and recognized dealers in investment securities. Tenders from others must be accompanied by payment of
2 percent o f the face am ount o f Treasury bills applied for, unless the tenders are accompanied by an express guaranty
o f payment by an incorporated bank or trust company.
5. If the language o f this tender is changed in any respect, which, in the opinion o f the Secretary o f the

Treasury, is material, the tender may be disregarded.



1
F

ederal

R eserve B

a n k of

New Y

ork

NOTICE OF ALLOTMENT
OF U N ITED STATES O F A M E R IC A S PE C IA L T R E A S U R Y BILLS

A p ril 13, 1960.

Y ou r □

competitive □

noncompetitive tender fo r—

U N IT E D S T A T E S O F A M E R I C A S P E C I A L 3 6 5 -D A Y T R E A S U R Y B IL L S
D A T E D A P R I L 1 5 , 1 9 6 0 , D U E A P R I L 15, 1961

has been accepted at the price o f

(p er 100), in the amount o f—
$

(m aturity value)

Settlement therefor must be made in cash or other immediately available funds or in a like
face amount o f the m aturing issue o f Treasury bills at the Federal Reserve Bank o f New Y ork
on or before A p ril 15, 1960. I f settlement is to be made by check on a bank other than the
Federal Reserve Bank o f New Y ork, such check should be received by us in time fo r collection
on A p ril 15, 1960, otherwise it w ill be necessary for the bidder to pay fo r the securities allotted
at the price computed on the rate o f discount on such securities to the date o f collection.
Delivery o f the Treasury bills will be made in accordance with instructions given on your
tender form and your reserve account will be charged on the issue date if you so indicated. I f
additional instructions are required, a Letter o f Instructions form is attached which should be
completed in duplicate and returned prom ptly to the Federal Reserve Bank o f New York.

F ederal R eserve B a n k

of

N e w Y ork

Fiscal A gent o f the United States.

Checked by.




2

(This letter o f instructions, accompanied by attached duplicate copy,
should be filled in and returned to Federal Reserve Bank o f New Y ork )

LETTER OF INSTRUCTIONS
To

F e d e ra l R eserve B a n k

o f N ew Y ork ,

Fiscal A gent o f the United States,
Federal Reserve P. 0 . Station,
New Y ork 45, N. Y .

A tten tion:

Government B ond Division— 2nd F loor
Dated a t .........................................................

..........................................................1960

On our □

competitive □ noncompetitive tender fo r—
U N IT E D S T A T E S O F A M E R I C A S P E C I A L 3 6 5 -D A Y T R E A S U R Y B IL L S
D A T E D A P R I L 15, 1 9 6 0 , D U E A P R I L 15, 1961

(per 100), in the amount o f—

accepted at the price of

(m aturity value)

S
Please issue and make delivery o f the bills as instructed below:
Pieces

Denomination
$

Maturity Value

P

lease

Do N ot

U se T

h is

S pace

1,000
5,0 00
10,000
100,000
500,000
1,000,000

T o ta ls—
□

1.

□

2.

□

3.

□

4.

□

5.

Deliver over the counter to the undersigned
Ship to the undersigned
H old in safekeeping (fo r account o f member bank
only)
Allotm ent transfer (see list attached)
Special instructions:

(N o changes in delivery instructions will be accepted)

Payment will be made as follow s:
□ By charge to our reserve account
□ B y cash or other immediately available funds
□ B y surrender o f $ ............................ (m aturity value)
o f maturing Treasury bills. Pay cash adjustment,
if any—
□ B y check
□ B y credit to our reserve account
(Paym ent cannot be made through Treasury T ax and
Loan A ccoun t)

T h e u n d e r s ig n e d , i f a b a n k o r t ru 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 ic h y o u a r e 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 n u m b e r e d 3 a b o v e a r e o w n e d s o le ly b y th e u n d e r s ig n e d .

This letter o f instructions must be signed
officially in the space provided and re­
turned immediately to
Federal Reserve Bank o f New York,
Fiscal Agent o f the United States.

Submitted b y ..............................................................................................
(Please print)

By ............................................................................

By .................

(Authorised signsture(s) required)

Title .........................................................................

T i t l e .............

A d d re ss.................................................................................................

( S p a c e s b e l o w a r e f o r th e u s e o f F e d e r a l R e s e r v e B a n k o f N e w Y o r k )

Government Bond Division

Safekeeping Division

Payment received ...........................................................................................................................................
Deliver against payment o f $..............................................................................................................................
DELIVE RY RECEIPT
Received from Federal Reserve Bank o f New York. Fiscal Agent o f the United States, the above described securities allotted in the amount
indicated above.
Date.................................




Subscriber...................................................................................

B y ...................................................................................................

(DUPLICATE FOR USE OF FEDERAL RESERVE BANK OF NEW YO R K )

3

LETTER OF INSTRUCTIONS
To F e d e r a l R e s e r v e B a n k o f N e w Y
Fiscal A gent o f the United States,
Federal Reserve P. 0 . Station,
New Y ork 45, N. Y .

ork,

A ttention:

Government Bond Division— 2nd F loor
Dated a t .........................................................
................................................................... 1960

On our □ competitive □

noncompetitive tender fo r—

U N IT E D

S T A T E S O F A M E R IC A S P E C IA L 3 8 5 -D A Y T R E A S U R Y
D A T E D A P R I L 15, 1 9 6 0 , D U E A P R I L 15, 1961

accepted at the price o f

B IL L S

(per 100), in the amount o f—
$

(m aturity value)

Please issue and make delivery o f the bills as instructed below :
Pieces

Denomination

$

Maturity Value

P le a s e

Do N ot

U se T h is S pace

1,000
5,000
10,000
100,000
500,000
1,000,000

Totals—
□
□
□
□
□

1. Deliver over the counter to the undersigned
2. Ship to the undersigned
3. H old in safekeeping (fo r account o f member bank
only)
4. Allotm ent transfer (see list attached)
5. Special instructions:

(N o changes in delivery instructions will be accepted)

Payment will be made as follow s:
□ By charge to our reserve account
□ B y cash or other immediately available funds
□ B y surrender o f $ ............................ (m aturity value)
o f maturing Treasury bills. Pay cash adjustment,
if any—
□ B y check
□ B y credit to our reserve account
( Payment cannot be made through Treasury Tax and
Loan A ccoun t)

T h e u n d e r s ig n e d , i f a b a n k o r tru s t c o m p a n y , h e r e b y c e r t ifie s t h a t th e T r e a s u r y b ills w h ic h y o u a r e h e r e b y in s t r u c t e d to dia p ose
o f in th e m a n n e r in d ic a t e d in ite m n u m b e r e d 3 a b o v e a r e o w n e d s o le ly b y th e u n d e r s ig n e d .

This letter o f instructions must be signed
officially in the space provided and re­
turned immediately to
Federal Reserve Bank o f New York,
Fiscal Agent o f the United States.

Subm itted b y ..............................................................................................
(Please print)

By

............................................................................

By .................

(Authorized signature(s) required)

Title .........................................................................

Title .............

A d d re ss.................................................................................................

( S p a c e s b e l o w a r e f o r th e u s e o f F e d e r a l R e s e r v e B a n k o f N e w Y o r k )

Government Bond Division

Safekeeping Division

Payment received ...........................................................................................................................................

Checked

.......................................................................

Deliver against payment o f $................................................... ...........................................................................
D E L IV E R Y R E C E IP T

Received from Federal Reserve Bank o f New York, Fiscal Agent o f the United States, the above described securities allotted in the amount
indicated above.
Date.................................




Subscriber...................................................................................

B y .......................................................................................

PE N D IN G D E L IV E R Y T IC K E T FO R G O V E R N M E N T BON D D IV ISIO N

Y ou r □

competitive □

4

noncompetitive tender fo r—

U N IT E D S T A T E S O F A M E R I C A S P E C I A L 3 6 5 -D A Y T R E A S U R Y B IL L S
D A T E D A P R I L 15, 1 9 6 0 , D U E A P R I L 15, 1961

which has been accepted at the price o f

(per 100), in the amount of—

P R IN C IP A L

MASTER
M A T U R IT Y V A L U E

P R IN C IP A L

DISPOSITION

□

Over the Counter

S P L IT D IS P O S IT IO N

M ETHOD OF PAYM ENT

□

Reserve A ccount

□

Check or Cash

□

Safekeeping

□

Delivery Teller

□

Ship

□

Foreign Oper. Div.

□

Treasury Tax & Loan

□

Form 12

□

Allotm ent Transfer




ALLOTMENT NOTICE FOR SECURITIES DEPARTMENT

□

com petitive □




noncompetitive

U N IT E D S T A T E S O F A M E R I C A S P E C I A L 3 6 5 -D A Y T R E A S U R Y B IL L S
D A T E D A P R I L 1 5 , 1 9 6 0 , D U E A P R I L 1 5 , 1961

$

5

ALLOTMENT NOTICE FOR SECURITY FILES

□

com petitive □




noncompetitive

U N IT E D S T A T E S O F A M E R I C A S P E C I A L 3 6 5 -D A Y T R E A S U R Y B IL L S
D A T E D A P R I L 1 5 , 1 9 6 0 , D U E A P R I L 1 5 , 1961

$

6


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102