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F E D E R A L R E S E R V E B AN K O F N E W Y O R K Fiscal A gent o f the United States r Circular N o. 4 4 8 1 1 L June 24, 1957 J Offering of $3,000,000,000 of 264-Day Treasury Bills To Be Designated “ Tax Anticipation Series” Dated July 3, 1957 Maturing March 24, 1958 To all Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal Reserve District: Follow ing is the text of 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 , Monday, June 24, 1957. TREASU RY D EPARTM EN T Washington The Treasury Department, by this public notice, invites tenders for $3,000,000,000, or thereabouts, of 264-day Treasury bills, to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be designated Tax Anticipation Series, they will be dated July 3, 1957, and they will mature March 24, 1958. They will be accepted at face value in payment of income and profits taxes due on March 15, 1958, and to the extent they are not presented for this purpose the face amount of these bills will be payable without interest at maturity. Taxpayers desiring to apply these bills in payment of March 15, 1958, income and profits taxes have the privilege of surrendering them to any Federal Reserve Bank or Branch or to the Office of the Treasurer o f the United States, W ash ington, not more than fifteen days before March 15, 1958, and receiving receipts therefor showing the face amount of the bills so surrendered. These receipts may be submitted in lieu o f the bills on or before March 15, 1958, to the District Director of Internal Revenue for the district in which such taxes are payable. The bills will be issued in bearer form only, and in denominations of $1,000, $5,000, $10,000, $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 o’clock p.m., Eastern Daylight Saving time, Wednesday, June 26, 1957. Tenders will not be received at the Treasury Department, Washington. Each tender must be for an even multiple of $1,000, and in the case of competitive tenders the price offered must be expressed on the basis of 100, with not more than three decimals, e.g., 99.925. Fractions may not be used. It is urged that tenders be made on the printed forms and forwarded in the special envelopes which will be supplied by Federal Reserve Banks or Branches on application therefor. Others than banking institutions will not be permitted to submit tenders except for their own account. Tenders will be received without deposit from incorporated banks and trust companies and from responsible and recognized dealers in invest ment 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 o f payment by an incorporated bank or trust company. Immediately after the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, following which public announcement will be made by the Treasury Department of the amount and price range of accepted bids. Those submitting tenders will be advised of the acceptance or rejection thereof. The Secretary of 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 will be accepted in full at the average price (in three decimals) o f accepted competitive bids. Payment of accepted tenders at the prices offered must be made or completed at the Federal Reserve Bank in cash or other immediately available funds on July 3, 1957, provided, however, any qualified depositary will be permitted to make payment by credit in its Treasury Tax and Loan Account for Treasury bills allotted to it for itself and its customers up to any amount for which it shall be qualified in excess of existing deposits when so notified by the Federal Reserve Bank of its district. The income derived from Treasury bills, whether interest or gain from the sale or other disposition of the bills, does not have any exemption, as such, and loss from the sale or other disposition of Treasury bills does not have any special treat ment, as such, under the Internal Revenue Code of 1954. The bills are subject to estate, inheritance, gift or other excise taxes, whether Federal or State, but are exempt from all taxation now or hereafter imposed on the principal or interest thereof by any State, or any of the possessions of the United States, or by any local taxing authority. For purposes of taxation the amount of discount at which Treasury bills are originally sold by the United States is considered to be interest. Under Sections 454(b) and 1221(5) of 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. Accordingly, the owner o f Treasury bills (other than life insurance companies) issued hereunder need include in his income 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 No. 418, Revised, and this notice, prescribe the terms of the Treasury bills and govern the conditions of 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 Daylight Saving time, Wednesday, June 26, 1957, at the Securities Department of its Head Office and at its Buffalo Branch. Please use the form on the reverse side o f this circular to submit a tender, and return it in an envelope marked “ Tender for Treasury Bills— T a x Anticipation Series.” Tenders may be submitted by telegraph, subject to written confirmation; they may not be submitted by telephone. Settlement for accepted tenders must be made in cash or other immediately available funds, except that any qualified depositary may make payment by credit in its Treasury T ax and Loan A ccount for Treasury bills allotted to it for itself and its customers, up to any amount for which it shall be qualified in excess of existing deposits. A lfred H ayes, President. ( over) IM P O R T A N T — I f you desire to bid on a com p etitive basis, fill in rate p er 100 and maturity value in paragraph headed “ Com petitive B id.” I f you desire to b id on a n on com petitive basis, fill in on ly the maturity value in paragraph headed “ N oncom petitive B id.” DO N O T fill in both paragraphs on on e form . A separate tender must be used fo r each bid, except that com m ercial banks submitting bids fo r their customers’ accounts may consolidate com petitive tenders at th e same p rice and may consolidate noncom petitive tenders, p ro vided a list is attached showing the name o f each bidder, the amount b id fo r his account, and m ethod o f paym ent. Form s fo r this purpose w ill b e furnished on request. No. TENDER FOR 264-DAY TREASURY BILLS T O B E D E SIG N A TE D “ T A X A N T IC IP A T IO N SERIES” Dated July 3, 1957 Maturing M arch 24, 1958 Dated a t .............................. T o F ed eral R eserve B a n k o f N e w Y o r k , Fiscal A gent of the United States. 1957 C O M P E T IT IV E BID N O N C O M P E T IT IV E B ID Pursuant to the provisions o f Treasury Department Circular N o. 418, Revised, and to the provisions o f the public notice on June 24, 1957, as issued by the Treasury Department, the Pursuant to the provisions of Treasury De partment Circular N o. 418, Revised, and to the provisions of the public notice on June 24, 1957, as issued by the Treasury Department, the undersigned offers a noncompetitive tender undersigned o f f e r s ............................................. * for (Rate per 100) for a total amount o f $ ............................................... a total amount of $ ................................ ..................... (maturity value) of the Treasury bills therein described, or for any less amount that may be awarded, settlement therefor to be made at your Bank, on the date stated in the public notice, as indicated below: □ □ (N ot to exceed $400,000 for one bidder through all sources) (maturity value) o f the Treasury bills therein described, at the average price (in three decimals) of accepted competitive bids, settlement therefor to be made at your Bank, on the date stated in the public notice, as indicated b elow : By credit to Treasury T a x and Loan Account □ By credit to Treasury T a x and Loan Account By cash or other immediately available funds □ By cash or other immediately available funds * P rice must be expressed, on the basis o f 100, with not m ore than three decimal places, for exam ple, 99.925. The Treasury bills for which tender is hereby made are to be dated July 3, 1957, and are to mature on March 24, 1958. This tender will be inserted in special envelope marked “ Tender for Treasury Bills— T ax Anticipation Series Name of Bidder ....................................................................................................................... (Please print) By . . . . (Official signature required) (Title) Street Address ................................. (City, Town or Village, P . O. No., and State) If this tender is submitted by a bank for the account of a customer, indicate the customer’s name on line below: (Name o f Customer) (City, Town or Village, P. O. No., and State) IM P O R T A N T IN STR U CTIO N S: 1. N o tender for less than $1,000 will be considered, and each tender must be for an even multiple of $1,000 (maturity value). 2. 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 of the tender by an officer o f the corporation will be construed as a rep resentation by him that he has been so authorized. If the tender is made by a partnership, it should be signed by a mem ber of the firm, who should sign in the form “ ................................................................................................ a copartnership, by ......................................................................................................a member of the firm.” 3. 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 of 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. 4. If the language o f this tender is changed in any respect, which, in the opinion o f the Secretary of the Treasury, is material, the tender may be disregarded. TEN STB— 13 B e sure to return ten d er in special en velop e m arked “ T end er fo r Treasury Bills— T ax A nticipation Series.” (OVER) F ederal R e serve B a n k of New Y ork NOTICE OF ALLOTMENT OF UNITED STATES OF AM ERICA TREASU RY BILLS T A X ANTICIPATION SERIES June 27, 1957. Y our □ competitive Q noncompetitive tender for Treasury bills (Tax Anticipation Series), dated July 3, 1957, maturing March 24, 1958, has been accepted at the rate of (per 100), in the amount of $ (maturity value). Settlement therefor must be made in cash or other immediately available funds at the Federal Reserve Bank o f New York on or before July 3, 1957, except that a qualified depositary may make settlement by credit to Treasury Tax and Loan Account. To obtain delivery o f the Treasury bills, please complete both copies o f the attached Letter o f Instructions, and return them promptly to the Federal Reserve Bank o f New York. I f settlement is to be made by check on a bank other than the Federal Reserve Bank o f New York, the check should be received by us in time fo r collection on date bills are issued, otherwise it will be necessary for the bidder to pay fo r the bills allotted at the price computed on the rate of discount on such bills to the date o f collection. I f settlement is to be made by credit to Treasury Tax and Loan Account, the Certificate o f Deposit, which is part o f the attached form, must be executed and officially signed. F ederal R e serve B ank of N ew Y ork Fiscal Agent o f the United States. Checked by TH IS LETTER OF INSTRUCTIONS (ACCOMPANIED BY ATTACHED DUPLICATE YELLOW COPY) TO BE FILLED IN AND RETURNED TO FEDERAL RESERVE BANK OF NEW YORK 2 TAB LETTER OF INSTRUCTIONS T o F e d e r a l R eserve B a n k op N e w Y o r k , Fiscal Agent o f the United States, Government Bond Division, New York 45, N. Y. From ............................................... (Date) Referring to our [[] competitive Q noncompetitive tender for Treasury bills (Tax Anticipation Series), dated July 3, 1957, maturing March 24, 1958, which has been accepted at the rate of (per 100), in the amount o f $ (maturity value), please issue and make delivery of the bills as instructed below. Settlement will be made as indicated below: By check in funds available on issue date $............................ B y charge to our reserve account, which you are authorized to make . . . $............................ By credit to Treasury Tax and Loan Account on our books as indicated on the attached Certificate of Deposit which we have officially executed. . $. By cash $............................ Issue bills in the following denominations iecea Denomination $ Dispose of bills as indicated below (Please do not use this space) 0 Numbers Maturity value 1,000 □ □ 5,000 10,000 □ 100,000 □ 500,000 I 1. Deliver over the counter to the undersigned 2. Ship to the undersigned 3. Hold in safekeeping (for member bank only) 4. Hold as collateral for Treasury Tax and Loan Account 5. Special instructions: 1,000,000 Totals------- IMPORTANT: No changes in delivery instructions will be accepted. T h e u n d e r sig n e d ( i f a b a n k or tru st c o m p a n y ) h e r e b y c e rtifies 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 re b y in stru c te d to o f in th e m a n n e r in d ic a te d in ite m 3 or 4 a b o v e a r e th e s o le p r o p e r ty o f th e u n d e r sig n e d . (F ill in all required spaces before signing) Name of subscriber (Please print) By B y ......................... (Official signatures required) Title .................... Title ........... Addre ( S p a c e s b e lo w a r e f o r th e n 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 ) Safekeeping Division Security Custody Department Government Bond Division Payment received sigued: Deliver against payment Taken from vault Checked . Counted ............. Delivered of $ ....................................... Checked ............. [| signed: D E L IV E R Y R E CEIP T Received from Federal Reserve Bank of New York, Fiscal Agent o f the United States, the above described Treasury bills allotted in the amount indicated above. Date..................................... Subscriber. B y. l~ If payment is to be made by credit to Treasury Tax and Loan Account, the following Certificate of Deposit should be officially executed. SERVE BANK OF NEW YORK NMENT BOND DIVISIO N is c e r tific a te m u s t b e e x e c u te d w h e n s u b sc r ib e r is m a k in g p a y m e n t th ro u g h 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 .) Certificate o f Deposit in Treasury Tax and Loan Account (Purchase price) e undersigned depositary certifies that it will deposit on July 3, 1957, to the of Federal Reserve Bank o f New York, Fiscal Agent of the United States, in the ry Tax and Loan Account, to be held subject to withdrawal on demand the above sum ment o f $ (maturity value) Treasury bills dated July 3, 1957, due March 24, 1958, allotted Notice o f Allotment dated June 27, 1957. Dated (Name of depositary) B y .......................................................................................... (Official signature required) ................................ (Title) Street addresB ........................................................................................................ (City, Town or Village, P. O. No., and State) (DUPLICATE FOR USE OF FEDERAL RESERVE BANK OF NEW YORK) TAB 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 o r k , Fiscal Agent o f the United States, Government Bond Division, New York 45, N. Y. From ............................................... (Date) Referring to our □ competitive □ noncompetitive tender for Treasury bills (Tax Anticipation Series), dated July 3, 1957, maturing March 24, 1958, which has been accepted at the rate of (per 100), in the amount of $ (maturity value), please issue and make delivery o f the bills as instructed below. Settlement will be made as indicated below: B y check in funds available on issue date $............................ B y charge to our reserve account, which you are authorized to make . . . $............................ B y credit to Treasury Tax and Loan Account on our books as indicated on the attached Certificate of Deposit which we have officially execu ted.. $. B y cash $............................ Issue bills in the following denominations Pieces Maturity value Denomination Dispose of bills as indicated below ( Please do not use this space) Numbers O 1,000 0 □ 5 ,000 10,000 □ 100,000 □ 5 0 0 ,0 0 0 1. Deliver over the counter to the undersigned 2. Ship to the undersigned 3. Hold in safekeeping (for member bank only) 4. Hold as collateral for Treasury Tax and Loan Account 5. Special instructions: 1 ,000,000 Total*------- IMPORTANT: No changes in delivery instructions will be accepted. T h e u n d e r sig n e d ( i f a b a n k or tru st c o m p a n y ) h e r e b y c e rtifies th a t th e T r e a s u r y b ills w h ich y o u are h e r e b y in stru c te d to d is p o s e o f in th e m a n n e r in d ic a te d in item 3 or 4 a b o v e a r e th e s o le p r o p e r ty o f th e u n d e r sig n e d . (Fill in all required spaces before signing) Name o f subscriber (Please print) B y .......................... T itle ..................... By (Official signatures required) ................ Title ......... Address ( S p a c e s b e lo 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 ) . "^.'Governm ent Bond Division Security Custody Department Safekeeping Division Payment received Taken from v a u l t ......................................................... '' . Deliver against payment Counted ............................................................. of $ ....................................... D E L IV E R Y RECEIPT Received from Federal Reserve Bank of New York, Fiscal Agent o f the United States, the above described Treasury bills allotted in the amonnt indicated above. Subscriber...................................................................................................................... B y. 4 F TAB ederal R eserve Bank op N ew Y ork PENDING DELIVERY TICKET OF UNITED STATES OF AMERICA TREASURY BILLS TAX ANTICIPATION SERIES June 27, 1957. Your □ competitive £ ] noncompetitive tender for Treasury bills (Tax Anticipation Series), dated July 3, 1957, maturing March 24, 1958, has been accepted at the rate of (per 100), in the amount of $ (maturity value). PAB PRINCIPAL DISCOUNT MASTEB METHOD OP PA YM E N T DISPOSITION F TAB ederal R eserve B a n k of New Y ork FILLED ALLOTMENT DELIVERY TICKET OF UNITED STATES OF AMERICA TREASURY BILLS TAX ANTICIPATION SERIES June 27, 1957. Your Q competitive Q noncompetitive tender for Treasury bills (Tax Anticipation Series), of dated July 3, 1957, maturing March 24, 1958, has been accepted at the rate (per 100), in the amount of $ (maturity value). TAB SECURITIES DEPARTMENT COPY TAX ANTICIPATION SERIES • •• ’ i '. V * ' ir \-i& ■% '' ‘SrefrK • v ■■■ ■ June 27, 1957. Your □ competitive Q noncompetitive tender for Treasury bills (Tax Anticipation Series), dated July 3, 1957, maturing March 24, 1958, has been accepted at the rate of (per 100), in the amount of $ (maturity value). RECORDS STORAGE OFFICE, ITHACA, N. Y. F ederal R eserve B a n k op N ew Y ork NOTICE OF ALLOTMENT TAB OF UNITED STATES OF AMERICA TREASURY BILLS TAX ANTICIPATION SERIES 1957. Your Q competitive Q noncompetitive tender for Treasury bills (Tax Anticipation Series), dated July 3, 1957, maturing March 24, 1958, has been accepted at the rate of (per 100), in the amount o f $ (maturity value).
@FedFRASER