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FEDERAL RESERVE BANK O F NEW YORK Circular N o. 4 4 0 4 Fiscal Agent of the United States A u g u st 8 , 1957 Offering of $1,700,000,000 of 91-Day Treasury Bills Dated August 15, 1957 Maturing N ovem ber 14, 1957 T o all Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal R eserv e D istrict: Following is the text o f a notice published tod ay: 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, A u g u s t 8, 1957. TREASU RY D EPARTM EN T W a sh in g to n T h e T r e a s u ry D epartm en t, by this pu blic n otice, in vites tenders f o r $1,700,000,000, o r th ereabouts, o f 91 -d a y T rea su ry bills, fo r cash and in e x ch a n g e for T rea su ry bills m aturing A u g u st 15, 1957, in the a m ou n t o f $1,700,033,000, to be issued on a d isco u n t basis u nder com p etitive and n on com p etitiv e b id d in g as h ereinafter provided . T h e bills o f this series w ill be dated A u g u s t 15, 1957, and w ill m ature N o v e m b e r 14, 1957, w h en the fa ce a m ou n t w ill be 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 anks and B ra n ch es up to the clo s in g h ou r, on e-th irty o ’ c lo c k p.m ., E astern D a y lig h t S a vin g tim e, M on d a y , A u g u st 12, 1957. T en d ers w ill n ot be received 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 fo r an even m u ltiple o f $1,000, and in the ca se o f com p etitive tenders the p rice offered m u st be ex p resse d on the basis o f 100, w ith n ot m o re than th ree decim a ls, e.g., 99.925. F ra ction s m ay n ot be used. It is u rged that ten ders be m a d e o n the prin ted fo rm s and fo rw a rd e d in the special en v e lo p e s w h ich w ill be supplied b y Federal R e serv e B anks or B ra n ch es o n a pp lica tion th erefor. O th ers than banking institutions w ill n ot be perm itted to subm it ten ders e x cep t f o r their ow n a ccou n t. T en d ers w ill be re ce iv e d w ith ou t dep osit fr o m in corp ora ted banks and trust com p a n ies and fr o m resp on sib le and re co g n iz e d dealers in in v e st 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 rea su ry bills a pp lied fo r, unless the tenders are a ccom p a n ied b y an exp ress gu a ra n ty 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 a fter th e clo s in g h our, ten ders w ill be op en ed at the F ed eral R e serv e Banks and B ra n ch es, fo llo w in g w hich p u b lic a n n o u n ce m e n t w ill be m ade b y th e T rea su ry D epartm 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 b e 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 e x p re s sly reserves th e righ t to a cce p t o r re je ct any 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 etitiv e tenders for $200,000 o r less w ith ou t stated p rice fro m any on e b idd er w ill b e a ccep ted in full at the a vera ge p rice (in th ree d ecim a ls) o f a ccep ted com p etitiv e bids. Settlem ent fo r a ccep ted ten ders in a ccord a n ce w ith the bids m ust be m ade or com p leted at the Federal R eserve B ank on A u gu st 15, 1957, in cash o r oth er im m ediately available funds o r in a like face a m ou n t o f T r e a s u ry bills m aturing A u g u st 15, 1957. Cash and ex ch a n g e tenders w ill receive equal treatm en t. Cash adju stm en ts w ill be m ade fo r d ifferen ces betw een the par valu e o f m atu rin g bills a ccep ted in ex ch a n g e and the issue p rice o f th e n ew bills. T h e in co m e derived fro m T rea su ry bills, w hether interest or gain fro m the sale o r oth er disp osition o f the bills, d o e s n o t 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 rea su ry bills d oes n ot have a n y special treat m ent, as such, under the Internal R even u e C od e o f 1954. T h e bills are su b ject to estate, inheritance, g ift o r oth er e x cis e taxes, w h eth er F ed eral o r State, but are exem p t fro m all ta xation n o w o r h ereafter im p osed on the principal o r interest th ereo f by an y State, o r a n y o f the p ossession s o f the U n ited States, o r b y any loca l ta x in g authority. F o r pu rposes o f ta xation the a m o u n t o f d is co u n t at w h ich T r e a s u ry bills are o rig in a lly s o ld b y the U n ited States is co n sid e re d to be in terest. U n d e r S e ctio n s 4 5 4 (b ) and 1221(5) o f the Internal R even u e C od 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 sid ered to accru e u ntil such bills are sold, red eem ed o r oth erw ise disp osed o f, and such bills are exclu ded fr o m con sid era tion as capital assets. A c c o r d in g ly , the o w n e r 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 o n ly the differen ce betw een the price paid fo r such bills, w hether on original issue o r o n subsequen t purchase, and the a m ou n t actu a lly received either u p on sale o r red em ption at m aturity d u rin g the taxable year f o r w hich the return is m ade, as ord in a ry ga in o r loss. T r e a s u ry D epa rtm en t C ircu lar N o . 418, R evised , and this n otice, p rescrib e th e 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 the circu la r m a y be obtain ed fro m any F ed eral R e serv e B a n k o r Branch. This Bank will receive tenders up to 1 :30 p.m., Eastern Daylight Saving time, Monday, August 12, 1957, at the Securities Department o f 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.” Tenders may be sub mitted by telegraph, subject to written confirmation; they may not be submitted by telephone. Payment f o r the Treasury bills cannot be made by credit through the Treasury T a x and Loan Account. Settlement must be made in cash or other immediately available funds or in maturing Treasury bills. A lfred H ayes, P r e s id e n t . b ills d a t e d A u g u s t 8 , 1 9 5 7 , m a t u r i n g N o v e m b e r 7 , 1 9 5 7 ) T o t a l applied fo r ...$2,545,259,000 T o t a l a ccep ted . $1,700,044,000 (in clu d es $364,932,000 entered on a n on com p etitiv e basis and a ccep ted in fu ll at the a verage price sh ow n b e lo w ) R a n g e o f a ccep ted co m p etitive b id s: (e x c e p tin g on e ten der o f $2,000) H ig h ........... . . . 99.178 E quivalent rate o f discou n t a p p rox . 3.252% per annum E quivalent rate o f discou nt Low ........... . . 99.157 a p p rox. 3.335% per annum E quivalent rate o f discou nt 99.164 A v e ra g e . . . . . a p p rox. 3.308% p er annum (22 p ercen t o f the a m ou n t b id fo r at the low p rice w as a ccep ted ) Total A pplied f o r Federal R eserve D istrict B o s to n ................ ........... ........... N ew Y o rk Philadelphia . . . ........... C leveland ......... ........... R ich m o n d ......... ........... A tlanta ............. C h ica g o ............. ........... St. L ou is ........... ........... ........... M in neapolis K ansas C ity . . . ........... D allas .................. ........... ........... San F ra n cisco T o ta l ........... $ 33,708,000 1,685,943,000 48,328,000 71,121,000 19,408,000 45,006,000 337,063,000 37,733,000 29,619,000 45,809,000 43,986,000 147,535,000 $2,545,259,000 Total A ccepted $ 22,928,000 948,143,000 33,328,000 66,121,000 19,408,000 44,706,000 279,903,000 37,733,000 29,119,000 45,804,000 32,826,000 140,025,000 $1,700,044,000 (O V E S ) No. B 1 TEN D ER F O R 91-D A Y T R E A S U R Y BILLS Dated August 15, 1957 To Maturing N ovem ber 14, 1957 Dated at F ederal R eserve B a n k of N e w Y o r k , 1 9 .. . Fiscal Agent o f the United States. Pursuant to the provisions o f Treasury Department Circular No. 418, Revised, and to the provisions o f 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 TENDER D o not fill in both C om petitive and N Non oncom competitive petitive tenders tenders on on one onefo form rm C $ ............................................................ (maturity value), or any lesser amount that may be awarded. P r i c e : .................................... per 100. (P rice m ust b e exp ressed with not m ore than three decimal places, f o r exam ple, 99.925) J1 N O N C O M P E T IT IV E T E N D E R $ ............................................................ (maturity value). (N o t to ex ceed $200,000 f o r one bidder through all sou rces) A t the average price o f accepted competitive bids. Subject to allotment, please issue, deliver, and accept payment for the bills as indicated below: Pieces Denomination $ M aturity value □ 1. D eliver over the counter to the undersigned 1,000 □ 2. Ship to the undersigned 5,000 □ 3. H old in safekeeping ( f o r ac count o f member bank on ly) □ 4. Allotm ent attached) □ 5. Special instructions: 10,000 100,000 transfer (see list Paym ent w ill be made as fo llo w s : □ B y charge to our reserve account □ B y cash o r other immediately avail able funds □ B y surrender o f $ ........................... (m aturity value) o f maturing T reasu ry bills. P ay cash adjust ment, if any— 500,000 □ B y check 1,000,000 □ B y credit to our reserve account ( N o changes in delivery instructions will be accepted) T o ta ls (P a ym en t cannot be made through T reasury T a x and L oa n A cco u n t) The undersigned ( i f 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 solely owned by the undersigned. N a m e o f su b scrib er 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 By (Official signature(s) required) T i t l e .............................................................................. . T i t l e ........... A d d re s s ......................................................................................................... (B anks submitting tenders f o r 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 te n d er fo r less than $1,000 w ill be co n sid e re d , and each ten d er m u st b e f o r an even m u ltip le o f $1,000 (m a tu rity va lu e). 2. O th e rs than b a n k in g in stitu tion s w ill n o t be perm itted t o subm it ten ders e x ce p t f o r their o w n a cco u n t. B ank s su b m ittin g ten ders f o r c u sto m e r a cco u n t m a y co n so lid a te co m p e titiv e ten ders at the same price and m a y co n 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 bid fo r his a cco u n t, an d 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 fu rn ish ed on request. 3. I f the p e r so n m a k in g the ten der is a c o rp o ra tio n , the ten der sh ou ld be sign ed b y an o ffice r o f the co r p o r a tio n a u th o rize d to m a k e the ten der, and th e s ig n in g o f th e ten der b y an officer o f the c o r p o r a tio n w ill be c o n stru e d as a representation 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 sig n e d 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 “ ................................................................................................t a co p a rtn e rsh ip , b y .................................................................................................................... , a m e m b e r o f the firm .” 4. T e n d e r s w ill be re ce iv e d 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 c o g n iz e d dealers in in vestm en t securities. T en d ers fr o m oth ers m u st b e a cco m p a n ie d b y p a y m e n t o f 2 p e rce n t o f th e fa c e a m ou n t o f T r e a s u ry bills a p p lied fo r, u nless the ten ders are a cco m p a n ie d b y an ex p re s s gu a ra n ty o f pa ym en t b y an in co rp o ra te d ba n k o r trust com p a n y . 5. I f th e la n g u a ge o f this ten der is ch a n g ed in any resp ect, w hich, in the op in io n o f the S ecreta ry o f the T re a su ry , is m aterial, th e ten d er m a y b e disreg arded. ( over)