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FEDERAL RESERVE 0 BANK OF NEW YORK Fiscal A gent o f the United States L r c ir c u ia r N o. 4500-1 A ugust 27, 1957 J O ffering o f $ 1 ,8 0 0 ,0 0 0 ,0 0 0 o f 91-D ay Treasury B ills Dated September 5, 1957 Maturing December 5, 1957 To all Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal R eserve D istrict: F ollow ing is the text o f a notice published today: TREASURY DEPARTMENT 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 , Tu esday, A u gu st 27, 1957. W ash in gton T h e T reasu ry Department, by this public notice, invites tenders for $1,800,000,000, or thereabouts, o f 91-day T reasu ry bills, fo r cash and in exchange for T reasu ry bills m aturing Septem ber 5, 1957, in the am ount o f $1,799,572,000, to be issued on a discou nt basis under com petitive and n on com petitive b idd ing as hereinafter provided. T h e bills o f this series w ill be dated Septem ber 5, 1957, and w ill mature D ecem ber 5, 1957, w hen the face am ount w ill be payable w ithout interest. T h ey w ill be issued in bearer form only, and in denom inations o f $1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,000 (m atu rity v a lu e ). T en ders w ill be received at Federal R eserve Banks and Branches up to the clo s in g hour, on e-th irty o ’c lo ck p.m., E astern D ayligh t S a v in g time, F riday, A u gu st 30, 1957. Tenders w ill not be received at the T reasu ry Departm ent, W ash ington. E ach tender m ust be fo r an even m ultiple o f $1,000, and in the ca se o f com petitive tenders the price offered must be expressed on the basis o f 100, w ith n ot m ore than three decim als, e.g., 99.925. F raction s m ay n ot be used. It is u rged that tenders be made on the printed form s and forw a rd ed in the special envelopes w hich w ill be supplied by Federal R eserve Banks o r B ranches on application therefor. O thers than banking institutions w ill n ot be perm itted t o subm it tenders excep t fo r th eir ow n account. T en ders w ill be received w ithout deposit from in corporated banks and trust com panies and from responsible and recogn ized dealers in in vestm ent securities. T en ders from others must be accom panied by paym ent o f 2 percent o f the face am ount o f T reasu ry bills applied for, unless the tenders are accom panied b y an express guaranty o f paym ent b y an in corporated bank o r trust com pany. Im m ediately after the closin g hour, tenders w ill be opened at the F ed eral R eserve Banks and B ranches, fo llo w in g w hich public announcem ent w ill be made by the T reasu ry D epartm ent o f the am ount and price range o f a ccepted bids. T h ose subm itting tenders w ill be advised o f the acceptance or rejection thereof. T h e Secretary o f the T reasu ry exp ressly reserves the right to accep t o r reject any or all tenders, in w hole or in part, and his action in any such respect shall be final. Su bject to these reservations, noncom petitive tenders fo r $200,000 or less w ithout stated price from any one b idd er w ill be accepted in fu ll at the average price (in three decim als) o f accepted com petitive bids. Settlem ent f o r accepted tenders in a ccord a n ce with the bids must be made or com pleted at the Federal R eserve Bank on Septem ber 5, 1957, in cash o r oth er im m ediately available funds o r in a like face amount o f T reasu ry bills m aturing Septem ber 5, 1957. Cash and exch ange tenders w ill re ceive equal treatment. Cash adjustm ents w ill be made fo r differences betw een the par value o f m aturing bills a ccep ted in exch ange and the issue price o f the new bills. T h e incom e derived from T reasu ry bills, w hether interest or gain from the sale or oth er disposition o f the bills, does not have any exem ption, as such, and loss from the sale o r other disposition o f T reasu ry bills does not have any special treat ment, as such, under the Internal Revenue C od e o f 1954. T he b ills are subject to estate, inheritance, g ift or oth er excise taxes, whether F ed eral o r State, but are exem pt fro m all taxation n ow or hereafter im posed on the principal or interest th ereof by any State, or any o f the possessions o f the U n ited_ States, or by any loca l taxin g authority. F o r purposes o f taxation the amount o f discou nt at w hich T reasu ry bills are o rigin a lly s o ld by the United States is con sidered to be interest. U nder Sections 454(b) and 1221(5) o f the Internal Revenue C ode o f 1954 the am ount o f discou nt at w hich bills issued hereunder are sold is not con sid ered to accrue until such bills are sold, redeem ed or otherw ise disposed of, and such bills are exclu ded from con sideration as capital assets. A cco rd in g ly , the ow ner o f T reasu ry bills (oth er than life insurance com pan ies) issued hereunder need include in his incom e tax return only the difference between the price pa id fo r such bills, w hether on origin al issue o r on subsequent purchase, and the am ount actually received either upon sale or redem ption at m aturity during the taxable year fo r w hich the return is m ade, as ord in a ry gain or loss. T reasu ry D epartm ent C ircu lar N o . 418, R evised, and this notice, prescribe the terms o f the T reasu ry bills and govern the con ditions o f their issue. Copies o f the circu la r m ay be obtain ed from any Federal Reserve Bank o r Branch. This Bank will receive tenders up to 1 :30 p.m., Eastern Daylight Saving time, Friday, August 30, 1957, at the Securi ties Department o f its H ead 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 m ay be submitted by telegraph, subject to written confirm ation; they may n ot be submitted by telephone. Payment jo 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 junds or in maturing Treasury bills. A l f r e d H a y e s , President. (CLOSIN G D A Y FO R R E C E IP T OF TEN DERS IS F R ID A Y , AUGUST 30, 1957) TH IS C IR C U LA R W A S P R IN T E D B E FO R E TH E R E SULTS OF T H E B ID D IN G FO R T R E A S U R Y BILLS DATED AUGUST 29, 1957 W ERE A V A IL A B L E ; TH OSE RESULTS W IL L BE ANNOUNCED A F T E R RELEASE BY TH E TREASURY D E PA R TM E N T. (OVK») IM P O R T A N T — Please note that tenders fo r this issue must be received not later than onethirty o ’clock p.m., Eastern D aylight Saving time, Friday, August 30, 1957. N o ................................. T E N D E R F O R 9 1 -D A Y T R E A S U R Y B IL L S Dated Septem ber 5, 1957 To Maturing D ecem ber 5, 1957 Dated at F ed eral R eserve B a n k o f N e w Y o r k , Closing time for receipt of tenders is 1:30 p. m., Eastern Daylight Saving time, Friday, August 30, 1957 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 C O M P E TIT IV E TEN DER D o not fill in both Com petitive and j NNoncom oncompetitive petitivetenders tenderson onone onefo forrmm JJ $ ........................................................... (maturity value), or any lesser amount that may be awarded. 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 sources) P r i c e : .................................... per 100. (P r ic e must be expressed 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. Deliver over the counter to the undersigned □ 2. Ship to the undersigned □ 3. H old in safekeeping ( f o r ac count o f member bank only) □ 4. Allotment attached) □ 5. Special instructions: 100,000 500,000 transfer (see list 1,000,000 (N o Totals------- changes in delivery instructions will be accepted) Paym ent will be made as fo llo w s : □ B y charge to our reserve account □ By cash o r other immediately avail able funds □ By surrender o f $ ........................... (m aturity value) o f maturing Treasu ry bills. P ay cash adjust ment, if any— □ B y check □ B y credit to our reserve account (P aym en t cannot be made through Treasury T a x and Loan A cco u 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 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 _ for Treasury Bills” _ (Please print) By ................................. T i t l e ......................... A d d re s s By (Official signature(s) required) ...................... . T i t l e ........... ........................................................................................................ (B anks submitting tenders fo r customer account must indicate name on line below, or attach a list) (N am e o f 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 co n sid ered , and each ten der m u st b e f o r an even m u ltiple 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 tions w ill n o t be perm itted to subm it ten ders e x cep t fo r their o w n a ccou n t. Banks su b m ittin g tenders f o r cu s to m e r a ccou n t m ay co n so lid a te com p etitive tenders at the same price and m ay co n so lid a te n o n co m p e titiv e ten ders, p r o v id e d a list is attached s h o w in g the nam e o f each bidd er, th e a m ou n t b id fo r his a ccou n t, and m e th o d o f paym ent. F orm s f o r this pu rp ose w ill be furn ished on request. 3. I f the p erson m a k in g the ten der is a co rp o ra tio n , the ten der sh ou ld be sign ed b y an officer o f the co rp o ra tio n a u th orized to m ake th e ten der, a n d the sig n in g o f th e ten der b y an officer o f th e co r p o r a tio n w ill be co n stru ed as a representation b y him that he has been s o auth orized. I f the ten der is m ade b y a partnersh ip, it sh 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 “ ...............................................................................................f 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 receiv ed w ith ou t d e p o s it fr o m in co rp o ra te d banks and trust com p a n ies and fro m re s p o n sib le and re co g n iz e d dealers in in vestm ent securities. T en d ers fr o m oth ers m u st be a ccom p a n ied b y pa ym en t o f 2 percen t o f the fa ce a m ou n t o f T r e a s u ry bills a pp lied fo r, unless th e 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 th e la n g u a ge o f this ten der is ch a n g ed in a n y resp ect, w hich, in the 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 be disregarded. ( over)
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