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FEDERAL RESERVE BANK O F NEW YORK Fiscal Agent of the United States r C ircu lar N o . 4 4 9 7 1 A u g u s t 15, 1957 J L Offering of $1,800,000,000 of 91-Day Treasury Bills Dated August 22, 1957 Maturing N ovem ber 21, 1957 To all In corporated Banks and T ru st Companies, and Others Concerned, in the Second Federal R eserv e D istrict: Following is the text o f a notice published tod 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, A u g u st 15, 1957. TREASU RY D EPARTM EN T W a sh in g to n T h e T re a su ry D epartm en t, b y this p u b lic n otice, invites tenders fo r $1,800,000,000, o r th ereabouts, o f 9 1-d ay T re a su ry bills, f o r cash and in e x ch a n g e fo r T rea su ry bills m atu rin g A u gu st 22, 1957, in the a m ou n t o f $1,800,033,000, 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 erein a fter provid ed . T h e bills o f this series w ill b e dated A u g u st 22, 1957, and w ill m ature N o v e m b e r 21, 1957, w hen the face a m ou n t w ill be p ayable w ith ou t interest. T h e y w ill be issued in bearer form o n 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 en d ers w ill be received at Federal R eserve Ranks and B ra n ch es up to the clo s in g h our, on e-th irty o ’ c lo ck p.m ., E astern D a y lig h t S a v in g tim e, M on d a y , A u g u st 19, 1957. T en d ers w ill n ot be received at the T rea su ry D epartm 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 etitiv e tenders the price o ffe re d m u st be ex p resse d on the basis o f 100, w ith n ot m ore than th ree decim als, e.g., 99.925. F raction s m a y n ot be used. It is u rged that ten ders be m ade o n the printed fo rm s and forw a rd ed in the special en velop es w hich w ill be supplied b y Federal R eserve B anks 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 institutions w ill n ot be perm itted to subm it ten ders e x ce p t fo r their 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 b a n k s and trust com p a n ies and fro m resp on sib le and recog n ized dealers in in vest m ent securities. T e n d e rs fro 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 pp lied 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 ed ia tely a fter th e clo s in g h our, ten ders w ill b e 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 pu blic a n n ou n cem en t w ill be m ade b y the T rea su ry D epa rtm en t o f th e 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 tenders w ill be advised 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 r e a s u ry ex p re s sly reserves the righ t t o a cce p t o r re je ct any o r all tenders, in w h ole or in part, and his a ction in a n y such resp ect shall be final. S u b ject to th ese reservations, n on com p etitiv e tenders for $200,000 or less w ith ou t stated p rice fro m any on e b idd er w ill be a ccep ted in fu ll at the a vera ge price (in three decim a ls) o f a ccep ted com p etitiv e bids. S ettlem ent fo r a ccep ted ten ders in a ccord a n ce w ith the bids m ust be m ade o r com p leted at the Federal R eserve B ank on A u g u st 22, 1957, in cash o r oth er im m ediately available funds o r in a like face am ou nt o f T rea su ry bills m aturing A u g u st 22, 1957. Cash and exch a n ge tenders w ill receive equal treatm en t. Cash adju stm en ts w ill be m ade for d ifferen ces betw een the par value 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 from T rea su ry bills, w h eth er interest or gain fr o m the sale o r oth er disp osition o f the bills, d oes not have a n y 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 r e a s u ry bills does 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 to estate, inheritance, g ift or oth er e x cis e taxes, w hether F ed eral o r State, but are exem p t fro m all ta xation n ow o r hereafter im p osed on the principal o r interest th ereof by any State, o r a n y o f the possession s o f the U n ited States, o r b y any loca l ta x in g authority. F o r pu rp oses o f ta xation the a m ou n t o f d is co u n t at w h ich T rea su 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 o d e o f 1954 th e a m ou n t o f d iscou n t at w hich bills issued hereunder are so ld is n o t co n sid ered to a ccru e until such bills are sold, red eem ed o r oth erw ise disp osed of, and such bills are exclu ded fro m con sidera 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 hereunder need in clu d e in his in com e tax return o n ly the difference betw een the price paid fo r such bills, w h eth er on original issue o r o n subsequen t purchase, and the a m ou n t actu a lly received either u pon sale o r red em ption at m atu rity du rin g the taxable year fo r w h ich the return is m ade, as ord in a ry gain o r loss. T re a su ry D epa rtm en t C ircu lar N o. 418, R evised , and this n otice, prescrib e th e term s o f the 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 ay be obtain ed fro m any F ed eral R eserve B a n k o r B ran ch. This Bank will receive tenders up to 1 :30 p.m., Eastern Daylight Saving time, Monday, August 19, 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. Paym ent fo r the Treasury bills cannot be made by credit through the Treasury T ax and Loan Account. Settlement must be made in cash or other immediately available funds or in maturing Treasury bills. A lfred H ayes , President. Results o f last offering o f Treasury bills (9 1 -d a y bills dated A u gu st 15, 1957, m aturing N ovem ber 14, 1957) T o ta l applied fo r . . $2,595,649,000 T o ta l a ccep ted .........$1,700,000,000 (in clu des $388,960,000 entered on a n on com p etitiv e basis and accepted in full at the average price show n b e lo w ) R a n g e o f a ccep ted com petitive b id s: (e x c e p tin g seven tenders totalin g $2,135,000) H ig h .................. 99.136 E quivalent rate o f discount app rox. 3.418% per annum E quivalent rate o f discount L ow .................. 99.110 a p p rox . 3.521% per annum E quivalent rate o f discount A v e ra g e ........... 99.116 approx. 3.498% per annum (51 p ercen t o f the am ount bid fo r at the low p rice w as a ccep ted ) Federal R eserve District Total A pplied f o r ...................... B o s to n N ew Y o r k ............... P h iladelphia ............. C leveland .................. R ich m on 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 ......... $ 42,573,000 1,714,651,000 57,790,000 72,019,000 25,557,000 42,802,000 299,532,000 27,158,000 22,058,000 67,547,000 44,377,000 179,585,000 $2,595,649,000 Total A ccep ted $ 32,573,000 929,331,000 42,790,000 64,569,000 25,557.000 42,802,000 236,592,000 27,158,000 22,009,000 63,077,000 38,377,000 175,165,000 $1,700,000,000 (ov*jt) No...................... TEN DER F O R 91-D A Y T R E A S U R Y BILLS Dated August 22, 1957 To Maturing N ovem ber 21, 1957 Dated a t ........................................... F ederal R eserve B a n k of N e w Y o r k , Fiscal Agent o f the United States. 1 9 ... 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 e lo w : C O M P E T IT IV E TE N D E R D o n ot fill in both Com petitive and N Non oncom competitive petitive tenders tenders on on one one fo forrm m C $ ............................................. (maturity value), or any lesser amount that may be awarded. J N O N C O M P E T IT IV E TEN DER $ ..........................................................(maturity value). ( N o t to ex cee d $200000 f o r one bidder through all sou rces) P r i c e : .................................... per 100. (P r ic e must b e exp ressed with not m ore than three decimal places, f o r exam ple, 99.925) 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 1,000 5,000 10,000 □ 1. D eliver over the counter to the undersigned n 2. Ship to the undersigned □ 3. H old in safekeeping ( f o r a c count o f member bank on ly) □ attached) 100,000 □ 500,000 Totals------- □ 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 Treasu ry bills. P ay cash adjust- 5. Special instructions: 1,000,000 (N o Paym ent w ill be made as fo llo w s : changes in delivery instructions will be accepted) □ B y check □ B y credit to our reserve account (P a ym en t cannot be made through T reasury T a x and L oa n A ccou n t) The undersigned ( i f a bank or trust com pany) 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 ........................ B y ................ T itle ........................ T i t l e .............. A d d re s s (Official signature(s) required) ......................................................................................................... (B anks submitting tenders fo r custom er account must indicate name on line below, o r attach a list) (Name of customer) (Address) IN S T R U C T IO N S : 1. N o te n d er f o r less than $1,000 w ill be co n sid e re d , and ea ch ten d er m u st b e fo r an ev en m u ltip le 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 p erm itted to su b m it ten ders e x ce p t f o r th eir o w n a ccou n t. B an k s su b m ittin g ten ders f o r cu s to m e r a cco u n t m a y c o n s o lid a te co m p e titiv e ten ders at the same price a n d 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 a tta ch ed s h o w in g the n am e o f each b id d er, th e a m ou n t b id fo r his a cco u n t, a n d m e th o d o f p a ym en t. F o r m s f o r this p u rp o s e w ill be fu rn ish ed on request. 3. I f th e p e r so n m a k in g the ten der is a co r p o r a tio n , the ten der s h ou ld be sign ed b y an o ffice r o f th e co r p o r a tio n a u th o rize d to m a ke th e ten d er, and the sig n in g o f the ten der b y an officer o f th e c o r p o r a tio n w ill b e co n stru e d as a represen tation b y h im that he has been s o a u th orized . I f the ten der is m ade b y a p a rtn ersh ip, it s h ou ld be sig n ed b y a m e m b e r o f the firm , w h o sh 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 re ce iv e d w ith o u t d e p o s it fr o m in co rp o ra te d banks and tru st co m p a n ie s and fr o m re s p o n sib le a n d r e c o g n iz e d dealers in in vestm en t securities. T en d ers fr o m o th e rs m u st b e a cco m p a n ie d b y p a ym en t o f 2 p ercen t o f the fa ce a m ou n t o f T r e a s u ry bills a p p lied fo r , u n less 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 p a ym en t b y an in co rp o ra te d b a n k o r trust com p a n y . 5. I f th e la n g u a ge o f th is ten d er is ch a n g e d in any resp ect, w h ich , in th e o p in io n o f the S ecreta ry o f the T re a su ry , is m aterial, th e ten der m a y b e disreg arded. ( over)
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