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FEDERAL RESERVE BANK OF NEW YORK Fiscal Agent of the United States r Circular N o. 5 3 1 9 L A pril 2, 1963 Offering of $ 2 ,5 0 0 ,0 0 0 ,0 0 0 of Special 366-Day Treasury Bills Dated April 15, 1963 Maturing April 15, 1964 To All Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal Eeserve D istrict: Following is the text of a notice issued by the Treasury Department for release today: The Treasury Department, by this public notice, invites tenders for $2,500,000,000, or thereabouts, o f 366-day Treasury bills, for cash and in exchange for Treasury bills maturing April 15, 1963, in the amount of $2,000,754,000 to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be dated April 15, 1963, and will mature April 15, 1964, when the face amount will be payable without interest. T h ey will be issued in bearer form only, and in denominations o f $1,000, $5,000, $10,000, $50,000, $100,000, $500,000 and $1,000,000 (maturity value). Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern Standard time, W ednesday, April 10, 1963. Tenders will 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 otwithstanding the fact that these bills will run for 366 days, the discount rate will 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. Banking institutions generally may submit tenders for account of customers provided the names o f the customers are set forth in such tenders. Others than banking institutions will not be permitted to submit tenders except for their own account. Tenders will be received without deposit from incor porated banks and trust companies and from responsible and recognized dealers in investment securities. Tenders from others must be accompanied by payment of 2 percent o f the face amount of Treasury bills applied for, unless the tenders are accompanied by an express guaranty of payment by an incorporated bank or trust company. Immediately after the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, follow ing 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 will be advised o f the acceptance or rejection thereof. T he Secretary o f the Treasury expressly reserves the right to accept or reject any or all tenders, in w hole 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, 1963, in cash or other immediately available funds or in a like face amount o f Treasury bills maturing A pril 15, 1963. Cash and exchange tenders will receive equal treatm ent Cash adjustments w ill be made for differences between the par value of maturing bills accepted in exchange and the issue price o f the new bills. T h e 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 exempt from all taxa tion now or hereafter imposed on the principal or interest thereof by any State, or any of the possessions o f the United States, or by any local taxing authority. F or purposes of 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 of 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 ccordin gly, the owner 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 Department Circular N o. 418 (current revision) and this notice, prescribe the terms of 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. This Bank will receive tenders up to 1 :30 p.m., Eastern Standard time, Wednesday, April 10, 1963, at the Securities 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 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 a y e s , President. ( over) I M P O R T A N T — T h e d is c o u n t r a t e o n t h e b il l s o f t h in is s u e w i l l b e c o m p u t e d o n a b a n k d is c o u n t b a s is o f 360 days, as is c u r r e n t l y t h e p r a c t ic e o n a ll issues o f T r e a s u r y b ills . No.................................. TENDER FOR SPECIAL 366-DAY TREASURY BILLS Dated April 15, 1963 To F ed er al R eserve B a n k of N ew Maturing April 15, 1964 Y ork, Fiscal Agent of the United States. Dated a t .................................................. 1963 Pursuant to the provisions of Treasury Department Circular N o. 418 (current revision) and to the provisions of the public notice issued by the Treasury Department and printed on the reverse side of this tender, the undersigned 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 April 15, 1963 at the price indicated b elow : C O M P E TIT IV E TE N D E R [ Do not till in both Competitive and Noncompetitive tenders on one form $ ............................................................ (maturity value), or any lesser amount that may be awarded. P r ic e : .....................................per 100. (Price must be expressed urith not more than three decimal places, fo r example, 99.925) N O N C O M PE TITIV E T E N D E R ] $ ............................................................ (maturity value). (N ot to exceed $400,000 for 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 1,000 □ □ □ 5,000 □ 10,000 □ 50,000 1. Deliver over the counter to the undersigned 2. Ship to the undersigned 3. Hold in safekeeping (for ac count of member bank on ly)* 4. Allotment transfer (see list attached) 5. Special instructions: Payment will be made as follow s: □ By charge to our reserve account □ By cash or check in immediately available funds □ By surrender of $ ............................. (maturity value) of maturing Treasury bills. Pay cash adjust ment, if any— 100,000 □ By check 500,000 □ By credit to our reserve account 1,000,000 (N o changes in delivery instructions will be accepted) Total (Payment cannot be made through Treasury Tax and Loan Account) * I f this item is checked, the undersigned certifies that the allotted bills will be owned solely by the undersigned. Name of subscriber (Please print) Insert this tender in yellow envelope marked “ Tender for Special Treasury Bills' By ......................... Title ......................... By (Official signature(s) required) ..................... Title ............ Address (Banks submitting tenders for customer account must indicate name on line below, or attach a list) (N am e of custom er) IN S T R U C T IO N S : 1. No tender for less than $1,000 will be considered, and each tender must be for an even multiple of $1,000 (maturity value). 2. Others than banking institutions will not be permitted to submit tenders except for their own account. Banks submitting tenders for customer account may consolidate competitive tenders at the same price and may consolidate non competitive tenders, provided a list is attached showing the name of each bidder, the amount bid for his account, and method of payment. Forms for this purpose will be furnished on request. 3. I f the person making the tender is a corporation, the tender should be signed by an officer of the corporation authorized to make the tender, and the signing of the tender by an officer o f the corporation will be construed as a representation by him that he has been so authorized. If the tender is made by a partnership, it should be signed by a member o f the firm, who should sign in the form “ ..................................................................................................a copartnership, by ............................................................................................ a member o f the firm.” 4. Tenders will be received without deposit from incorporated banks and trust companies and from responsible and recognized dealers in investment securities. Tenders from others must be accompanied by payment of 2 percent of the face amount of Treasury bills applied for, unless the tenders are accompanied by an express guaranty of payment by an incor porated bank or trust company. 5. If the language o f this tender is changed in any respect, which, in the opinion of the Secretary o f the Treasury, is material, the tender may be disregarded. Federal Reserve Bank of New York Securities Department ( 9th Floor) 33 Liberty Street TENDER FOR SPECIAL TREASURY BELLS (D O N O T U SE T H IS E N V E L O P E F O R O T H E R PU R P O SE S) New York 45, N. Y, F e d e r a l R ese rv e B a n k of New Y 1 ork NOTICE OF A LLO TM EN T OF U N ITED STATES OF A M E R IC A T R E A SU R Y BILLS A pril 11, 1963. 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 6 -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 3 , D U E A P R I L 15, 1 9 6 4 has been accepted at the price o f B IL L S (per 100), in the amount o f— $ (m aturity value) Settlement therefor must be made in cash or check in immediately available funds or in a like face amount of the maturing issue o f Treasury bills at the Federal Reserve Bank o f New Y ork on or before A p ril 15, 1963. I f settlement is to be made by check on a bank other than the Federal Reserve Bank o f New York, such check should be received b y us in time for collection on A p ril 15, 1963; otherwise it will be necessary for the bidder to pay for the securities allotted at the accepted price, plus interest to the date of collection at the equivalent rate o f discount. Delivery o f the Treasury bills will be made in accordance with instructions submitted with you r tender, and your reserve account will be charged on A p ril 15, 1963 if you so indicated. I f you did not submit such instructions, a Letter o f Instructions form is enclosed; please com plete the letter in duplicate and return it prom ptly to this Bank. F e d e r a l R ese rv e B a n k o f N e w Y o r k Fiscal A gent of the United States Cheeked by (This letter of instructions, accompanied by attached duplicate copy, should be filled in and returned to Federal Reserve Bank of New Y o rk ) LETTER OF INSTRUCTIONS To F e d er a l R ese r v e B a n k op N e w Y ork, Fiscal A gent of the United States, Federal Reserve P. 0 . Station, New Y ork 45, N. Y. A ttention: Government B ond Division— 2nd F loor Dated a t .......................................................... ....................................................................1963 On our □ competitive Q 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 6 -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 3 , D U E A P R I L 15, 1 9 6 4 accepted at the price of B IL L S (per 100), in the amount o f— $ (m aturity value) Please issue and make delivery of the bills as instructed b elow : Pieces Denomination $ P lease D o N Maturity Value ot U se T h is S pace 1,000 5,000 10,000 50,000 100,000 500,000 1,000,000 Total— □ □ □ □ □ 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 on ly )* 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: □ □ □ B y charge to our reserve account B y cash or check in 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 (P aym en t cannot be made through Treasury Tax and Loan A ccou n t) I f this item is ch e c k e d , the u n d e rsig n e d certifies that the a llo tte d b ills are o w n e d s o le ly b y the u n d e rsig n e d . This letter o f instructions must be signed officially in the space provided and Submitted by ................................................................................. returned immediately to By .................................................................. .. (Please print) B y ............. (Authorized signature(s) required) Federal Reserve Bank of New Y ork, Title ........................................................................... Title Fiscal Agent o f the United States. Address ................................................................................. (S p a c e s b e lo w are f o r the use o f the F ed era l R e s e rv e Bank o f N ew Y o r k ) Government Bond Division Safekeeping Division Payment received ........................................................................................................................................... Deliver against payment of $ Checked . ......................... ........................................................................ DELIVE RY RECEIPT Received from Federal Reserve Bank of New York, Fiscal Agent o f the United States, the above described securities allotted in the amount indicated above. http://fraser.stlouisfed.org/ Date................................. Subscriber................................................................................... Federal Reserve Bank of St. Louis By (D U P L IC A T E F O R U SE OF F E D E R A L R E S E R V E B A N K OF N E W Y O R K ) LETTER OF INSTRUCTIONS T o F e d e r a l R e se r v e B a n k of N ew Y ork, Fiscal A gent of the United States, Federal Reserve P. 0 . Station, New Y ork 45, N. Y. A tten tion: Government Bond Division— 2nd Floor Dated a t ......................................................... .................................................................. 1963 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 6 -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 3, D U E A P R I L 15, 1964 B IL L S (per 100), in the amount of- accepted at the price of ( maturity value) Please issue and make delivery of the bills as instructed b elow : Pieces Denomination $ Maturity Value P l e a s e D o N ot U se T h i s S pace 1,000 5,000 10,000 50,000 100,000 500,000 1,000,000 T o ta l— □ □ □ □ □ 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 on ly )* 4. Allotment 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 check in immediately available funds By surrender o f $ ............................(m aturity value) of maturing Treasury bills. Pay cash adjustment, if any— □ B y check □ By credit to our reserve account (Paym ent cannot be made through Treasury Tax and Loan A ccou n t) ^ I f this item is ch e c k e d , the u n d e rsig n e d certifies that the a llo tte d bills are o w n e d s o le ly b y the u n d ersig n ed . This letter o f instructions must be signed Submitted by ................................................................................. officially in the space provided and returned immediately to By ............................................................................., By ..................... Federal Reserve Bank of New York, Title ........................................................................... Title ............... (Please print) (A uthorized signature(s) required) Fiscal Agent o f the United States. Address ................................................................................................. (S p a c e s b e lo w are fo r the u se o f the F e d e ra l R e se rv e Bank o f N ew Y o r k ) Government Bond Division Safekeeping Division Payment received ........................................................................................................................................... D ELIVE RY RECEIPT Received from Federal Reserve Bank of New York, Fiscal Agent o f the United States, the above described securities allotted in the amount indicated above. http://fraser.stlouisfed.org/ Subscriber Date Federal Reserve Bank of St. Louis By PEN DIN 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 BOND D IVISION 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 6 -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 3 , D U E A P R I L 15, 1 9 6 4 which has been accepted at the price o f B IL L S (per 100), in the amount o f— P R IN C IP A L M A S T E R M A T U R IT Y VALUE P R IN C IP A L DISPOSITION □ Over the Counter □ Safekeeping □ Ship □ Treasury T ax & Loan □ Allotm ent Transfer S P L IT D IS P O S IT IO N M ETHOD OF PAYM EN T □ Reserve Account □ Check or Cash □ Delivery Teller □ Foreign Oper. Div. □ Form 12 4 A LL O TM E N T N OTICE FO R SECURITIES D E P A R T M E N T □ competitive □ noneompetitive U N ITE D S T A T E S O F A M E R IC A SP E C IA L 36 6 -D A Y T R E A S U R Y B ILLS D A T E D A P R IL 15, 1963, DUE A P R IL 15, 1964 6 ALLO TM EN T N O TICE FO R SE C U R ITY FILES □ competitive □ 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 6 -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 3 , D U E A P R I L 15, 1 9 6 4 $ B IL L S
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