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F E D E R A L R E S E R V E BAN K O F N E W Y O R K C ir c u la r N o. 4 4 9 9 A u g u s t 22, 1957 Fiscal Agent o f the United States Offering of $1,800,000,000 of 92-Day Treasury Bills Dated August 29, 1957 Maturing N ovem ber 2 9, 1957 To 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 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 , T h u rsd a y , A u g u st 22, 1957. TREASU RY D EPARTM EN T W a sh in g ton 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, or thereabouts, o f 92-day T rea su ry bills, fo r cash and in exch a n ge fo r T rea su ry bills m atu rin g A u g u st 29, 1957, in the a m ou n t o f $1,800,524,000, to be issued on a discou n t basis under com p etitive and n on com p etitive bid d in g as hereinafter provid ed . T h e bills o f this series w ill be dated A u g u s t 29, 1957, and w ill m ature N ov em b er 29, 1957, w hen the face am ou nt w ill be payable w ith ou t interest. T h e y w ill be issued in bearer fo rm on ly , and in den om in ation 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 received at Federal R e serv e B anks and B ran 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 vin g tim e, M on d a y, A u gu st 26, 1957. T en d ers w ill not be received at the T reasu ry D epa rtm en t, W a sh in g ton . E ach tender m u st be fo r an even m ultiple o f $1,000, and in the case o f com p etitive tenders the price offered m ust be exp ressed on the basis o f 100, w ith n ot m ore than three decim als, e.g., 99.925. 1-ractions m a y n ot be used. It is u rged that tenders be m ade on the printed fo rm s and forw a rd ed in the special en velopes w hich w ill be supplied b y F ed eral R e serv e B anks o r B ran ch es o n a pp lication therefor. O th ers than b ank in g institutions w ill n ot be perm itted to su b m it tenders excep t for their ow n a ccou n t. T en d ers w ill be receiv ed w ith ou t dep osit fro m in corp ora ted banks and trust com panies and fro m respon sible and recog n ized dealers in in vest m en t securities. T e n d ers 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 am ou nt o f T rea su ry bills applied for, unless the tenders are a ccom p a n ied b y an exp ress guaranty o f paym ent b y an in corpora ted bank or trust com pany. Im m ed ia tely after the clo s in g h our, tenders w ill be op en ed at the Federal R eserve Banks and B ranches, 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 the am ou nt and price ran ge o f a ccep ted bids. T h o s e subm itting tenders w ill be advised o f the a ccep ta n ce or rejection th ereof. T h e S ecretary o f the T rea su ry exp ressly reserves the righ t to a cce p t o r reject any or all tenders, in w h ole o r in part, and his action in any such resp ect shall be final. S u b ject to these reservations, n on com p etitive tenders fo r $200,000 o r less w ith ou t stated price fro m any on e b idd er w ill be a ccepted in full at the a verage price (in three decim a ls) o f a ccep ted com p etitive bids. Settlem ent fo r a ccep ted tenders in a ccord a n ce w ith the bids m ust be m ade or com p leted at the F ed eral R e serv e Bank on A u g u st 29, 1957, in cash or oth er im m ediately available funds o r in a like face am ount o f T rea su ry bills m aturing A u gu st 29, 1957. Cash and exch a n ge tenders will receive equal treatm ent. Cash adjustm ents w ill be m ade fo r d ifferen ces betw een the par value o f m aturing bills a ccep ted in exch a n ge and the issue price o f the n ew bills. T h e in co m e derived fro m T rea su ry bills, w hether in terest or gain fro m the sale or oth er d isp osition o f the bills, d oes not have any exem ption , as such, and loss fro m the sale or oth er d isp osition o f T rea su ry bills d oes n ot have any 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 t o estate, inheritance, gift o r oth er excise taxes, w hether F ed eral o r State, but are exem pt fr o m all taxation n ow o r hereafter im posed on the principal or interest th ere o f by any State, o r any o f the possession s o f the U n ited States, or b y any local ta x in g authority. F o r pu rp oses o f taxation the am ou nt o f d iscou n t at w hich T rea su ry bills are origin a lly sold b y the U n ited States is con sid ered to be interest. U nder S ection s 4 5 4 (b ) and 1221(5) o f the Internal R even u e C o d e o f 1954 the am ou nt o f discou n t at w h ich bills issued hereunder are sold is n ot con sidered 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 co r d in g ly , the o w n e r o f T rea su ry bills (oth er than life insurance com p a n ies) issued hereun der need in clude in his in com e ta x return on ly the difference b etw een the price paid fo r such bills, w hether on original issue o r on subsequent purchase, and the a m ou n t a ctu a lly received either upon sale o r red em ption at m aturity d u 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 epartm en t C ircu lar N o . 418, R evised , a n d this n otice, p rescrib e the term s o f the T rea su ry bills and govern the con d ition s o f their issue. C opies o f the circular m ay be obtain ed fro m any Federal R eserve Bank o r B ran ch. This Bank will receive tenders up to 1 :30 p.m., Eastern Daylight Saving time, Monday, August 26, 1957, at the Securi ties 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 submitted 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 ax and Loan Account. Settlement must be made in cash or other immediately available funds or in maturing Treasury bills. A l f r e d H a y e s , President. Results o f last offering o f Treasury bills (9 1 -d a y bills dated A ugust 22, 1957, m aturing N ovem ber 21, 1957) T o ta l applied f o r .......... $2,353,582,000 T o ta l a c c e p te d ...............$1,800,123,000 (in clu d es $342,263,000 en tered on a n on com p etitive basis and a ccep ted in full at the average p rice sh ow n b e lo w ) R a n g e o f a ccepted com p etitive b id s: (e x ce p tin g on e ten der o f $15,000) H ig h ..................... 99.163 E quivalent rate o f discou nt a pp rox. 3.311% per annum L o w ..................... 99.145 E quivalent rate o f discou nt app rox. 3.382% p er annum A v e r a g e ............... 99.152 E quivalent rate o f discou nt app rox. 3.354% per annum (4 percent o f the am ou nt bid f o r at the low price w as a ccep ted ) Federal R eserve District B oston ..................... ...... N ew Y o r k ............... ...... Philadelphia ............ C leveland ................. R ich m on d ................. A tlanta ..................... C h ica go ................... St. L ou is ................. M in neapolis ............ K ansas C ity ............ San F ra n cisco ........ T otal ............... ....... Total Applied fo r $ 37,499,000 1,627,709.000 37,308,000 65,553,000 32,423,000 33,754,000 243,251,000 28.355,000 14,409,000 49,100,000 48,302,000 135,919,000 $2,353,582,000 Please n ote th at the cu rren t offering is f o r 92-d a y T reasury bills. Total A ccepted $ 25,291,000 1,167,077,000 22,288,000 60,343,000 32,123,000 32,394,000 198,031,000 28,355,000 14,013,000 49,075,000 40,302,000 130,831,000 $1,800,123,000 ( over) IM P O R T A N T — Please note that this offering is f o r 9 2-day Treasury bills, w h ich w ill m ature on Friday, N ovem ber 29, 1957, because Thursday, N ovem ber 28, w ill be Thanks givin g D ay. N o ______________ T E N D E R F O R 9 2 -D A Y T R E A SU R Y BILLS D ated A u gu st 29, 1957 To M aturing N ovem ber 29, 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 below : C O M P E TIT IV E TEN DER E D o not f i l l in both Com petitive and NNoncom oncompetitive petitivetenders tenderson onone onefoform rm $ ............................................................(maturity value), or any lesser amount that may be awarded. J N O N CO M PETITIV E TENDER $ ............................................................(maturity value). (N o t to ex ceed $200,000 f o r one bidder through all sou rces) P r i c e :.................................... per 100. (P r ic e m ust be 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 □ B y charge to our reserve account □ 2. Ship to the undersigned □ □ 3. H old in safekeeping ( f o r ac count o f member bank on ly) B y cash o r other immediately avail able funds □ □ 4. □ 5. Special instructions: B y surrender o f $ ............................ (m aturity value) o f maturing Treasu ry bills. P ay cash adjust ment, i f any— 100,000 500,000 Allotment attached) transfer (see list 1,000,000 (N o Totals Payment will be made as fo llo w s : 1. D eliver over the counter to the undersigned D changes in delivery instructions will be accepted) □ B y check □ B y credit to our reserve account (P aym en t cannot be made through T reasury T a x and Loan A ccou 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 am 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 itle A d d re s s ...................... . T i t l e ........... ........................................................................................................ (B anks submitting tenders fo r custom er 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 ten der fo r less than $1,000 w ill be con sid e re d , and each ten der m u st b e fo r an ev en m u ltiple 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 ot be perm itted t o subm it ten ders e x ce p t fo r their o w n a ccou n t. Banks su b m ittin g ten ders f o r c u sto m e r a cco u n t m a y c o n s o lid a te com p etitiv e tenders at the same price and 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 attached s h o w in g the nam e o f each b id d er, the a m ou n t b id fo r his a cco u n t, an d m e th o d o f pa ym en t. F o r m s f o r this p u rp ose w ill be furn ished on request. 3. I f th e p e rso 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 ake th e ten d er, and th e sig 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 co n stru e d as a represen tation b y him that he has b een s o au th orized . I f the ten der is m ade b y a partnersh ip, it sh ou ld be sign ed b y a m e m b e r o f the firm , w h o s h ou ld sig n in the fo r m “ ................................................................................................f a cop a rtn ersh ip , b y ................................................................................................................... . a m em b er o f the firm .” 4. T e n d e r s w ill be receiv ed w ith ou t d ep osit 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 sible and r e co g n iz e d dealers in in vestm ent securities. T e n d e rs fro m oth ers m u st be a cco m p a n ie d b y pa ym en t o f 2 p ercen t o f the fa ce a m ou n t o f Treasu ry bills a p p lied fo r , u nless the ten ders are a ccom p a n ied b y an ex p re s s gu a ra n ty o f paym ent b y an in co rp o ra te d bank o r trust com p a n y . 5. I f the la n g u a ge o f this ten der is ch a n g ed in a n y respect, w h ich , in the op in ion o f the S ecreta ry o f the T re a s u ry , is m aterial, the ten der m a y be disregarded. ( over)
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