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FED ER A L RESERVE BANK O F NEW YORK F isca l A g e n t o f the U n ited States rC ircu la r No. 4 5 0 7 1 L Septem ber 19, 1957 J O ffe r in g o f $ 1 ,6 0 0 , 0 0 0 , 0 0 0 o f 9 1 -D a y T r e a s u r y B ills D ated Septem ber 26, 1957 M aturing D ecem ber 26, 1957 T o all In corporated B anks and Trust Companies, and O thers Concerned, in the Second F ederal R eserv e D istrict: F ollow in g is the text o f a notice published to d 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 ay, Septem ber 19, 1957. TREASU RY DEPARTM ENT W ash in gton T h e T reasu ry Departm ent, by this pu blic notice, invites tenders fo r $1,600,000,000, or thereabouts, o f 91-day Treasu ry bills, fo r cash and in exch a n ge fo r T reasu ry bills m aturing Septem ber 26, 1957, in the am ount o f $1,601,643,000, to be issued on a discou n t basis under com petitive and noncom petitive bid d in g as h ereinafter provided . T h e bills o f this series w ill be dated Septem ber 26, 1957, and w ill mature D ecem ber 26, 1957, w hen the face am ount w ill be payable w ithout interest. T h ey w ill be issued in bearer form on ly, and in denom inations o f $1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,000 (m aturity va lu e). T en ders w ill be received at F ed eral R eserve Banks and Branches up to the clo s in g hour, on e-thirty o ’ c lo ck p.m., Eastern D a y lig h t S a vin g time, M on day, Septem ber 23, 1957. T en ders w ill n ot be received at the T reasu ry Departm ent, W ash ington. E a ch tender m ust be f o r an even m ultiple o f $1,000, and in the case o f com petitive tenders the price offered m ust 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 may n ot be used. It is urged 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 F ed eral R eserve Banks or Branches on a pp lication th erefor. O thers than banking institutions w ill n ot be perm itted to subm it tenders excep t f o r their ow n a ccou nt. T en ders w ill be received w ith ou t deposit from in corpora ted 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 pa n ied by paym ent o f 2 percent o f the face am ount o f T reasu ry bills applied fo r, unless the tenders are accom pa n ied b y an express guaranty o f paym ent by an in corporated bank or trust com pany. Im m ediately a fter the clo s in 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 pu blic announcem ent w ill be m ade 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 accep tance or rejection th ereof. T h e Secretary o f the T reasu ry exp ressly reserves the righ t to accep t o r reject any o r all tenders, in w h ole o r in part, and his a ction in any such respect shall be final. S ubject to these reservations, noncom petitive tenders fo r $200,000 or less w ith ou t stated price from any one b idd er w ill be accepted in fu ll at the a verage price (in three decim als) o f accepted com petitive bids. Settlem ent fo r accepted tenders in a ccord a n ce w ith the bids m ust be made o r com pleted at the F ed era l R eserve B ank on Septem ber 26, 1957, in cash or oth er im m ediately available funds o r in a like face am ount o f T reasu ry bills m aturing Septem ber 26, 1957. Cash and exch a n ge tenders w ill re ceive equal treatment. Cash adjustm ents w ill be m ade fo r differences betw een the par value o f m aturing bills accepted in exch a n ge and the issue price o f the new b ills. T h e incom e derived from T reasu ry bills, w hether interest or gain from the sale or oth er disp osition o f the bills, does not have any exem ption, as such, and loss from the sale or other disp osition o f T rea su ry bills does n ot have any special treat m ent, as such, under the Internal Revenue C ode o f 1954. T h e 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 from all ta xation n o w or hereafter im posed on the principal or interest th ereof by any State, o r any o f the possessions o f the U n ited States, or by a n y lo ca l ta x in g authority. F o r purposes o f taxation the am ount o f discou nt at w hich T reasu ry bills are o rigin a lly s o ld by the U n ited States is con sidered to be interest. U nder S ections 45 4 (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 sidered to a ccru e until such bills are sold, redeem ed or otherw ise disposed of, and such bills are exclu ded fro m con sideration as capital assets. A cco rd in g ly , the ow n er o f T reasu ry bills (oth er than life insurance com pa n ies) issued hereunder need include in his incom e tax return only the difference between the price pa id fo r such b ills, w hether on origin a l issue o r on subsequent purchase, and the am ount actu ally received either upon sale or redem ption at. m aturity during the ta x ab le year fo r w hich the return is m ade, as ord in a ry ga in or loss. T re a su ry D epartm ent C ircu la r N o. 418, R evised, and this notice, prescribe the terms o f the T rea su ry bills and govern the con dition s o f their issue. Copies o f the circu la r m ay be ob ta in ed from any Federal R eserve Bank o r Branch. T his Bank will receive tenders up to 1 :30 p.m., Eastern Daylight Saving time, Monday, September 23, 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 cir cular to submit a tender, and return it in an envelope marked “ Tender for Treasury Bills.” Tenders may be submitted by telegraph, subject to written confirm ation; they may n ot be submitted by telephone. Paym ent for 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 (91-day bills dated Septem ber 19, 1957, maturing D ecem ber 19, 1957) T o ta l applied f o r ......... $2,384,814,000 T o ta l a c c e p te d ............. $1,601,009,000 (in clu des $423,083,000 entered on a n on com pctitivc basis and a ccepted in fu ll at the a ver a ge price show n b elow ) R a n g e o f accepted com petitive b id s : H i g h ....................... 99.115 E quivalent rate o f discount app rox. 3.501% per annum L o w ......................... 99.079 Equivalent rate o f discount app rox. 3.644% per annum A v e r a g e ................. 99.082 E quivalent rate o f discount app rox. 3.633% per annum (35 percent o f the am ount bid for at the low price w as accepted) Federal R eserve D istrict B oston ..................... . . . N ew Y o r k ............... P h iladelphia .......... Cleveland ................. R ich m on d ............... A tlanta ..................... C h ica go ................... St. L ou is ................. M inneapolis ........... K ansas City .......... San F ra n cisco T otal .................... Total A pplied jo r $ 40,793,000 1,529,318,000 50,228,000 80,696,000 29.787,000 55,470,000 295,166,000 54,873,000 18,016,000 49.117,000 44,925,000 136,425,000 $2,384,814,000 Total A ccep ted $ 30,793,000 872,968,000 35,228,000 70,696,000 29,787,000 52,370,000 227,866,000 54,873,000 17,516,000 48,187,000 42,925,000 117,800,000 $1,601,009,000 (o v 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 26, 1957 To F ederal R eserve B a n k of N ew Y ork Maturing D ecem ber 26, 1957 Dated a t .......................................................... , 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 : C O M P E T IT IV E T E N D E R C D o n ot fill in both Com petitive and Noncompetitive N on com petitive ,cnders tenderson on one oneform fo r m JJ $ ............................................................(maturity value), or any lesser amount that may be awarded. P r i c e : .................................... per 100. (P r ic e m ust b e exp ressed with not m ore than three decimal places, f o r exam ple, 99.925) N O N C O M PE TITIV E TE N D E R $ ............................................................(maturity value). (N o t to exceed $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 b elow : Pieces Denomination $ M aturity value 1,000 5,000 10,000 □ 1. D eliver over the counter to the undersigned □ 2. □ 3. H old in safekeeping ( f o r ac count o f member bank on ly) □ 4. □ 5. Special instructions: 100,000 500,000 Ship to the undersigned Allotment attached) transfer (see list 1,000,000 (N o changes in delivery instructions will be accepted) Total s- Payment w ill be made as fo llo w s : □ B y charge to our reserve account □ B y cash or other immediately avail able funds □ B y surrender o f $ ..................... (m aturity value) o f maturing Treasu ry bills. P ay cash adjust ment, i f any— □ 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 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 a m e o f su b scrib er Insert this tender in special en velope m a rk ed “ T e n d er __ fo r Treasury Bills'* __ (Please print) By ...................... » B y ................. (Official signature(s) required) T i t l e ............................................................................... T itle A d d re s s ........................................................................................................ (B a n k s submitting tenders fo 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 der fo r le s s than $1,000 w ill be co n sid e re d , and each ten der m u st b e fo 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 tions w ill n o t be perm itted t o subm it ten ders e x ce p t fo r their o w n a ccou n t. B anks su b m ittin g ten ders f o r c u s to 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 con 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 attached 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, a n d m e th o d o f paym 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 erson m a k in g th e ten der is a co rp o ra tio n , the ten der s h ou ld be sign ed b y an o ffice r o f the co rp o ra tio n a u th o rize d to m a k e th e ten der, a n d th e sig n in g o f th e ten der b y an officer o f the co r p o r a tio n w ill be con stru e d as a representation b y him that he has b een s o au th orized . I f the ten der is m ade b y a partn ersh 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 o u ld sign in the fo r m “ ................................................................................................. a cop a rtn ersh ip , b y ..................................................................................................................... a m e m b e r o f the firm .” 4. T e n d e r s w ill b e 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 sp o n sib le and r e co 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 b e 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 r e a s u ry bills a pp lied fo r, u nless the ten ders are a ccom p a n ied b y an ex p re s s gu aranty o f paym ent 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 this ten der is ch a n g ed in any 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, the ten der m a y be disregarded. ( over)
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