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F E D E R A L R E S E R V E B A N K <DF N E W Y O R K r Circular No. 4502 1 L Septembers, 1957 J Fiscal Agent of the United States Offering of $1,800,000,000 of 91-Day Treasury Bills Dated September 12, 1957 Maturing Decem ber 12, 1957 To all Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal Reserve District: Following 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 , T h u rsd a y , S e p te m b e r 5, 1957. TREASU RY DEPARTM EN T W a s h in g to n T h e T re a su ry D epa rtm en t, b y this p u b lic n otice, invites te n d e rs f o r $1,800,000,000, o r th ereabouts, o f 9 1 -d a y T r e a s u ry bills, f o r ca sh and in e x ch a n g e fo r T r e a s u ry b ills m a tu rin g S ep tem b er 12, 1957, in the a m ou n t o f $1,799,907,000, t o be issu ed o n a d is co u n t basis u nder com p etitive and n on co m p e titiv e b id d in g as h ereinafter provid ed . T h e bills o f this series w ill b e dated S e p te m b e r 12, 1957, and w ill m ature D e ce m b e r 12, 1957, w h en the fa ce a m ou n t w ill be p a ya b le w ith ou t interest. T h e y w ill be issued in b ea rer fo r m 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 e n d e rs w ill b e receiv ed at F ed era l R e serv e B anks and B ra n ch es up to the clo s in g h our, o n e-th irty o ’ c lo c k p.m ., E astern D a y lig h t S a v in g tim e, M o n d a y , S ep tem ber 9, 1957. T e n d e rs will n ot be receiv ed at the T r e a s u 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 co m p e titiv e ten ders the p rice offered m u st be exp ressed o n th e basis o f 100, w ith n ot m o re than th ree d ecim a ls, e.g., 99.925. F ra ction s m a y n ot be used. It is u rg ed that ten ders be m a d e o n th e prin ted fo rm s a n d fo rw a rd e d in the special en v elop es w h ich w ill be sup plied b y Federal R e s e rv e B anks o r B ra n ch es o n a p p lica tio n th erefor. O th e rs than b a n k in g institutions w ill n ot be perm itted t o subm it ten ders e x ce p t fo r th eir o w n a ccou n t. T en d ers w ill be re ce iv e d w ith o u t dep osit fr o m in co rp o ra te d b a n k s and trust com p a n ies and fr o m respon sib le and re co g n iz e d dealers in in vest 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 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 a re a ccom p a n ied b y an exp ress gu a ra n ty 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 e d ia te ly a fte r th e c lo s in g h our, ten ders w ill be op en ed at the F ed era l R e serv e B anks 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 b e m a d e b y th e T r e a s u ry D epa rtm en t o f the a m ou n t and price ran ge o f a cce p te d bids. T h o s e su b m ittin g ten ders w ill b e a d v ised o f th e a cce p ta n ce o r re je ctio n th ereof. T h e S ecreta ry o f th e T r e a s u ry e x p re s sly reserves the rig h t t o a cce p t o r re je ct a n y o r all tenders, in w h o le o r 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 fo r $200,000 o r less w ith ou t stated p r ice fro m a n y o n e b idder w ill be a cce p te d in fu ll at the a vera ge p r ice (in th ree decim a ls) o f a cce p te d com p etitive bids. S ettlem ent fo r a ccep ted ten ders in a ccord a n ce w ith the b id s m u st be m ade o r c o m p le te d at the F ed era l R eserve Bank on S ep tem ber 12, 1957, in cash o r o th e r im m ediately a vaila b le fu n d s o r in a like fa ce a m ou n t o f T r e a s u ry bills m a tu rin g S ep tem ber 12, 1957. Cash and e x ch a n g e ten ders w ill receive equal treatm ent. Cash adju stm en ts w ill be m ade fo r d ifferen ces betw een the par valu e o f m a tu rin g bills a ccep te d in e x ch a n g e and the issue p rice o f the n ew bills. T h e in co m e derived fr o m T rea su ry b ills, w h eth er interest or gain fro m th e sale o r oth er disp osition o f th e b ills, d oes n ot have a n y e x e m p tio n , as such, and lo s s fr o m th e sale o r oth er d isp osition o f T rea su ry bills d oes not have a n y special treat m en t, as such, u nder th e In tern al R even u e C o d e o f 1954. T h e bills are s u b je ct to estate, inheritance, g ift or o th e r ex cise taxes, w h eth er F ed era l o r S tate, b u t are exem p t fr o m all taxation n o w o r hereafter im p osed on th e principal o r in terest th ereo f by a n 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 rp oses o f taxation 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 t o b e 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 the a m ou n t o f d iscou n t at w h ich bills issued h ereunder are so ld is n o t co n sid e re d t o a ccru e until su ch 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 ow n er 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 n eed in clu d e in his in com e ta x return o n ly the differen ce betw een the p rice paid fo r such bills, w h eth er on original issue o r o n su b seq u en t pu rch ase, and th e a m ou n t actu a lly receiv ed either u p on sale o r red em ption at m a tu rity d u rin g the ta xab le yea r 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 ep a rtm en t C ircu lar N o. 418, R evised , and this n otice, p rescrib e the 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 fr o m a n y F ed eral R eserve B a n k o r B ranch. This Bank will receive tenders up to 1 :30 p.m., Eastern Daylight Saving time, Monday, September 9, 1957, at the Securities Department o f its Head Office and at its Buffalo Branch. Please use the form on the reverse side of this circular to submit a tender, and return it in an envelope marked “ Tender fo r 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 , President. Results o f last offering o f Treasury bills (9 1 -d a y bills dated September 5, 1957, m aturing Decem ber 5, 1957) T o ta l applied fo r . . $2,422,578,000 T o ta l a ccep ted ......... $1,800,295,000 (in clu d e s $315,682,000 entered on a n on com p etitiv e basis and a ccep ted in full at th e average p rice sh ow n b e lo w ) R a n g e o f a ccep ted co m p e titiv e b id s : (e x c e p tin g tw o ten ders tota lin g $130,000) H ig h .................. 99.115 E q u iva len t rate o f discou n t a p p ro x . 3.501% per annum E q u iva len t rate o f discou nt L o w .................. 99.093 a p p rox . 3.588% p er annum E q u iva len t rate o f discou n t A v e ra g e ........... 99.097 a p p rox . 3.571% p er annum (19 percen t o f the a m ou n t bid fo r at th e lo w price was a c c e p te d ) Federal Reserve District B o s to n ...................... . . . N ew Y o r k ............... P h ila delp h ia ........... C levelan d .................. R ich m o n d ............... A tlanta ...................... C h ica g o .................... St. L o u is ................. M in n ea p olis ........... . . K ansas C ity ........... D allas ........................ San F r a n c i s c o ......... T o t a l ......... . . . Total Applied for $ 32,691,000 1,706,464,000 41,534,000 62,704,000 23,983,000 37,910,000 238,487,000 28,359,000 16,019,000 46,645,000 35,764,000 152,018,000 $2,422,578,000 Toted Accepted $ 22,691,000 1,201,607,000 26,534,000 51,121,000 23,983,000 30,100,000 190,863,000 28,359,000 15,257,000 41,048,000 30,144,000 138,588,000 $1,800,295,000 (O V K M ) N o......................... TEN D ER F O R 91-D A Y T R E A S U R Y BILLS Dated September 12, 1957 To Maturing Decem ber 12, 1957 Dated a t ............................................. F ed era l R eserve B an k o f N ew Y ork , 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 elow : COMPETITIVE TENDER [ ] $ ..........................................................(maturity value), o r any lesser amount that may be awarded. NONCOMPETITIVE TENDER $ ............................................................(maturity value). ( N o t to ex ceed $200/XX) f o r one bidder through all sou rces) Price r .................................... 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 b elow : Pieces Denomination $ M aturity value 1,000 5,000 10,000 □ 1. D eliver over the counter to the undersigned Paym ent w ill be made as fo llo w s : □ 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. Allotment attached) □ 5. Special instructions: B y surrender o f $ ........................... (m aturity value) o f maturing Treasury bills. Pay cash adjust ment, if any— 100,000 transfer (see list 500,000 □ B y check 1,000,000 □ B y credit to our reserve account (N o c Totals------ (P aym en t cannot b e made through T reasury T a x and Loan A cco u n t) will be accepted) 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 v elop e m a rk ed 44T e n d e r fo r Treasury Bills” _ (Please print) By ................................. T i t l e ............................... A d d re s s ......... .. B y ................ (Official signature(s) required) ...................... . T i t l e ............ ......................................................................................................... (B anks submitting tenders f o r customer 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 ten d er f o r less than $1,000 w ill be co n sid e re d , an d each te n d e r m u st b e f o r an even 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 institutions w ill n o t b e p erm itted to subm it ten ders e x c e p t fo r their o w n a cco u n t. B anks su b m ittin g ten ders f o r cu sto m e r a cco u n t m ay c o n so lid a te com p etitiv e tenders at the same price an d m a y co n so lid a te n on com p etitiv e ten 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 idd er, the a m ou n t b id fo r his a ccou n t, and m e th o d o f p a y m e n t F o r m s f o r this p u rp ose w ill be furn ished o n 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 o u ld be signed b y an o ffice r o f the c o r p o r a tio n a u th orized to m a k e the ten der, and the sign in g o f the 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 representation b y him that he has been s o au th orized. I f the ten der is m ad e b y a pa rtn ersh ip, it sh ou ld b e sign ed b y a m em b er o f the firm , w h o sh o u ld sign in the fo r m “ ................................................................................................t a co p a rtn e rsh ip , by .................................................................................................................... . a m em b er o f th e 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 a n d trust co m p a n ie s and fro m re s p o n sib le a n d r e c o g n iz e d dea lers in in vestm en t secu rities. T en d ers fr o m oth ers m u st be a cco m p a n ie d b y p a ym en 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 n less the ten ders are a cco m p a n ie d b y an ex p re s s gu aranty o f p a y m e n t b y an in co rp o ra te d b a n k o r trust co m p a n y . 5. I f th e la n g u a g e o f this ten der is ch a n g cd in a n y resp ect, w hich, in the o p in io n o f the S ecreta ry o f the Treasury, is material, the tender m ay be disregarded. ( over )