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FEDERAL RESERVE BANK O F NEW YORK r Circular No. 4 5 1 1 1 L September 26, 1957 J Fiscal Agent o f the United States O ffering o f $1,600,000,000 o f 91-Day Treasury B ills Dated October 3, 1957 Hf .vM Maturing January 2, 1958 'w 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 , TREASU RY DEPARTM ENT W a s h in g to n Thursday, September 26, 1957. The Treasury, Department, by this public notice, invites tenders for $1,600,000,000, or thereabouts, of 91-day Treasury bills, for cash and in exchange for Treasury bills maturing October 3, 1957, in the amount of $1,599,216,000, to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. T h e bills o f this series w ill be dated October 3, 1957, and will mature January 2, 1958, when the face amount will be payable without interest. They will be issued in bearer fo rm only, and in denominations of $1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,000 (maturity value). Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, two o’clock p.m., Eastern Daylight Saving time, Monday, September 30, 1957. Tenders will not be received at the Treasury Department, Washington. Each tender must be for an even multiple o f $1,000, and in the case of competitive tenders the price offered must be expressed on the basis of 100, with not more than three decimals, e.g., 99.925. Fractions may not be used. It is urged that tenders be made on the printed forms and forwarded in the special envelopes which will be sup plied b y Federal R eserve B anks o r B ra n ch es o n a p p lica tion th erefor. O th e rs than b ank in g in stitu tions w ill n o t be perm itted t o subm it tenders e x ce p t f o r th eir ow n a ccou n t. T e n d e rs w ill be re ce iv e d w ith ou t dep osit fr o m in corp ora ted banks and trust com pa n ies and fro m resp on 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 p a ym en t o f 2 p ercen t o f th e face a m ou n t o f T r e a s u ry bills applied fo r, unless th e ten ders are a ccom p a n ied b y an exp ress gu aranty o f p a ym 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 fter th e clo s in g h our, ten ders w ill be op en ed at the F ed eral R es e rv e B anks and B ra n ch es, fo llo w in g w hich pu b lic a n n ou n cem en t w ill be m ade b y th e T rea su ry D epartm en t o f the 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 ten ders w ill b e a d vised o f th e a ccep ta n ce o r re je ctio n th ereof. T h e S ecreta ry o f the T rea su ry ex p re s sly reserves the rig h t t o a cce p t o r reject any o r all tenders, in w h o le or in part, and his a ction in any such resp ect shall b e final. S u b je ct to these reservations, n on com p etitiv e tenders fo r $200,000 or less w ith ou t stated p rice fr o m a n y on e b idd er w ill b e a ccep ted in fu ll at the average price (in th ree d ecim 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 with the b id s m u st.b e , m ade or completed at the Federal Reserve Bank on October 3, 1957, in cash or oth er im m ediately available fu n ds o r in a like face amount of Treasury bills maturing October 3, 1957. Cash and exchange ten ders w ill receive equal treatm ent. Cash adjustments will be made for differences between the par valu e o f m a tu rin g b ills a ccep te d in exchange and the issue p rice o f the new bills. T h e in co m e derived fro m T rea su ry bills, w hether interest or gain fro m the sale o r oth er d isp osition o f th e bills, d oes n ot have a n y e x e m p tion , as such, and loss fro m the sale o r oth er d isp osition o f T r e a s u ry bills d oes n ot have a n y special treat m en t, as such, u nder th e 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 o th e r excise taxes, w h eth er Federal o r State, but are exem p t from all taxation n o w o r h ereafter im p osed on the principal o r in terest th ereof b y any State, o r ^ny o f . the possession s o f the U n ited States, o r b y a n y 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 a t 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 to 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 hich bills issued h ereunder are s o ld is n o t co n sid ered to 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 d ed fro 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 tax return on ly th e differen ce betw een the price paid fo r such b ills, w h eth er on original issue o r o n subsequen t purchase, and the 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 taxable yea r fo r w h ich the return is m ade, as ord in a ry gain o r loss. T r e a s u ry D epa rtm en t C ircu lar N o . 418, R evised , and this n otice, prescrib 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 ay be obtain ed fr o m any F ed eral R eserve B a n k o r B ranch. This Bank will receive tenders up to 2 p.m., E a s t e r n Daylight Saving time, Monday, September 30, 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. Payment 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 b ills d a t e d September 2 6 , 1 9 5 7 , m aturing December 2 6 , 1 9 5 7 ) Total applied for . . .$2,510,309,000 Total accepted ....... $1,601,899,000 (includes $429,840,000 entered on a noncompetitive basis and accepted in full at the average price shown below) Range of accepted competitive bids: Equivalent rate of discount H ig h ........... 99.115 approx. 3.501% per annum L ow ........... . . . A v e ra g e ....... 99.105 E quivalent rate o f d iscou n t a p p rox. 3.541% p er annum 99.107 E q u iva len t rate o f discou n t a p p rox. 3.534% per annum (66 p ercen t o f the a m ou n t bid f o r at the lowprice w as a ccep ted ) Federal R eserve District Total A pplied f o r B oston ...................... N e w Y o r k ............. Philadelphia ........... C leveland ............... R ich m on d ............... . . A tla n ta .................... C h ica g o .................... St. L o u is .................. M in neapolis ........... K an sas C ity ........... D allas ...................... San F ra n cisco T o ta l ... $ 41,046,000 1,649,750.000 52,672,000 79,482,000 33,874.000 43,126,000 302,295,000 39.735,000 17,984,000 52,211,000 52.145,000 145,989,000 $2,510,309,000 Total A ccepted $ 27,584.000 999,937,000 29,659,000 58,532.000 27,730,000 32,956,000 195,449,000 39,229.000 15,442,000 46,007,000 31,663,000 97,711,000 $1,601,899,000 ( over ) IM P O R T A N T — Please n o te that clo s in g tim e is 2 p .m ., E astern D ayligh t S aving tim e. No.................... Closing time for receipt of tenders is 2 p.m., Eastern Daylight Saving time, Monday, September 30, 1957. TENDER FOR 91-DAY TREASURY BILLS Dated October 3, 1957 Maturing January 2, 1958 T o F ed e r a l R ese r v e B a n k o i- N ew Y Dated a t .................................. ork, 1 9 .. . F is c a l A g e n t o f th e U n ite d S ta tes. 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 PE TITIV E TENDER [ Do not fill in both Com petitive and N oncom petitive tenders on one fo rm $ ........................................................... (maturity value), or any lesser amount that may be awarded. P rice : .................................... per 100. (P r ic e m ust be expressed with not m ore than three decimal places, f o r exam ple, 99.925) N O N CO M PE TITIV E TENDER $ ........................................................... (maturity value). (N o t to exceed $200,000 f o r one bidder through all sources) 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 □ □ 3. H old in safekeeping ( f o r a c count o f member bank on ly) □ 4. Allotment attached) □ 5. Special instructions: 100,000 500,000 Ship to the undersigned 2. transfer (see list 1,000,000 (N o Total 55- changes in delivery instructions will be accepted) Payment will be made as fo llo w s : □ B y charge to our reserve account □ B y cash o r other immediately avail able funds □ By surrender o f $ ........................... (m aturity value) o f maturing T reasu ry bills. P a y cash adjust ment, if any— □ By check □ B y credit to our reserve account (P aym en t cannot be made through Treasury T a x and Loan 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 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 i t l e ............................................................................... T i t l e ........... A d d re s s ........................................................................................................ (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 te n d er f o r less than $1,000 w ill be con sid ered , and each ten der m u st be 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 ot be perm itted to subm it ten ders e x ce 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 c u sto m e r a cco u n t m a y co n so lid a te com p etitiv e tenders 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 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 id d 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 o r m s f o r this p u rp o s e w ill be furn ished o n request. 3. I f th e p e r so n m a k in g th e 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 o rize d t o m a ke the ten der, a n d the sig n in g o f th e ten der b y an officer o f th e 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 th e ten der is m ade b y a partnersh ip, it sh ou ld b e sig n e d 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 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 e p o s it fr o m in co rp o ra te d banks and trust co m p a n ie s and fro m re sp o n sible and re c o g n iz e d dealers in in vestm ent securities. T en d ers fr o m o th ers 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 th e fa ce a m ou n t o f T rea su ry bills a pp lied fo r, u n less th e ten ders are a ccom p a n ied b y an e x p re s s gu a ra n ty 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 lan gu age o f this ten der is ch a n g ed in a n y resp ect, w hich, in th e o p in io n o f the S e cre ta ry o f the T rea su ry, is m aterial, the ten der m a y b e disreg arded. ( over )
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