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FEDERAL RESERVE BANK OF NEW YORK Circular No. 4 5 1 2 ' October 3, 1957 Fiscal A gent o f the United States O ffering o f $1,600,000,000 o f 91-Day Treasury B ills Dated October 10, 1957 Maturing January 9, 1958 T o all Incorporated Banks and Trust Companies, and O thers 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, O cto b e r 3, 1957. TREASU RY D EPARTM EN T W a s h in g to n T h e T reasu ry D epartm en t, b y this p u b lic n otice, invites tenders fo r $1,600,000,000, or thereabouts, o f 91 -d a y T reasu ry bills, fo r cash and in exch a n ge fo r T rea su ry bills m atu rin g O c to b e r 10, 1957, in the a m ou n t o f $1,599,742,000, to be issued on a discou n t basis under com p etitive and n on com p etitive b id d in g as h ereinafter provid ed . T h e bills o f this series w ill be dated O c to b e r 10, 1957, and w ill m ature January 9, 1958, 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 F ed eral R eserve B anks and B ran ches up to the clo s in g hour, tw o 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 , O c to b e r 7, 1957. T en d ers w ill n ot be received at the T rea su ry D epa rtm en t, W a sh in g to n . E a ch ten der m u st be for an even m ultiple o f $1,000, and in the case o f com p etitive tenders the price o ffe re d m u st be expressed o n the basis o f 100, w ith n ot m ore than three decim als, e.g., 99.925. F raction s m a y n ot be used. It is u rged that tenders be m ade o n the printed fo rm s and fo rw a rd e d in the special en velop es w hich w ill be sup plied b y F ed eral R es e rv e Banks or B ran ches o n application th erefor. O th e rs than ban k in g institutions w ill n ot be perm itted to su b m it tenders excep t fo r their ow n a ccou n t. T e n d e rs w ill be receiv ed w ith ou t dep osit fr o m in corp ora ted banks and trust com p a n ies and fro m respon sible and recog n ized dealers in invest m en t securities. T e n d e rs fro m oth ers m u st be a ccom p a n ied b y p a ym en t o f 2 percen t o f the face a m ou n t o f T rea su ry bills applied for, unless the tenders are a ccom p a n ied b y an express gu a ra n ty o f paym ent b y an in corpora ted bank or trust com pan y. Im m ed ia tely after the clo s in g h ou r, ten ders w ill be op en ed at th e F ed eral R eserve B anks and B ran ches, fo llo w in g w hich pu b lic a nn oun cem ent w ill be m ade b y the T reasu ry D ep a rtm 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 subm itting tenders w ill be advised o f the a ccep ta n ce or rejection th ereof. T h e Secretary o f the T rea su ry exp ressly reserves the righ t to a ccep t o r reject any or all tenders, in w h ole o r in part, and his action in any such respect shall be final. S u b je ct to these reservations, n on com p etitive ten ders fo r $200,000 o r less w ith ou t stated price fro m any on e b id d er w ill be a ccep ted in fu ll at the a vera ge price (in th ree decim a ls) o f a ccep ted com p etitive bids. Settlem ent for a ccep ted tenders in a ccord a n ce w ith the bids m u st be m ade o r com p leted at the Federal R es e rv e Bank on O c to b e r 10, 1957, in cash o r oth er im m ediately available funds o r in a like face a m ou n t o f T rea su ry bills m aturing O c to b e r 10, 1957. Cash and ex ch a n g e tenders w ill receive equal treatm ent. Cash adju stm en ts w ill be m a d e fo r d ifferen ces betw een the par value o f m atu rin g bills a ccep ted in e x ch a n g e and th e issue price o f the n ew bills. T h e in co m e derived fro m T rea su ry b ills, w hether in terest or gain fr o m the sale o r oth er disp osition o f the bills, d o e s n o t have a n y exem ption , as such, and lo s s fr o m the sale o r oth er d isp osition o f T rea su ry bills does n ot have a n y special treat m en t, as such, under the In tern al 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 oth er excise taxes, w h eth er F ed eral o r State, but are exem p t fro m all taxation n o w or hereafter im p osed on the principal o r interest th ereof b y a n y State, o r a n y o f the possession s o f the U n ited States, or b y a n y local ta x in g authority. F o r pu rp oses o f taxation the a m ou n t 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 n der S e ctio n s 4 5 4 (b ) and 1221(5) o f th e In tern al R even u e C o d e o f 1954 the am ou nt o f discou n t a t w h ich bills issued hereunder are so ld is n ot con sidered to a ccru e u ntil such bills are sold, red eem ed o r oth erw ise disp osed of, and such bills are exclu ded fr o m con sidera tion as capital assets. A c c o r d in g ly , the o w n e r o f T reasu ry bills (o th e r than life insurance com p a n ies) issued hereun der need in clude in his in com e ta x return o n ly the difference betw een the price paid for such bills, w hether on origin al issue o r o n subsequent pu rch ase, and the a m ou n t a ctu a lly receiv ed either u pon sale o r red em ption at m atu 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 re a su ry D epa rtm en t C ircu lar N o . 418, R evised , a n d this n otice, prescrib e the term s o f the T r e a s u ry bills a n d govern the co n d itio n s o f their issue. C op ies o f the circular m a y be obtain ed fro m any F ed eral R eserve B ank or B ran ch. T h is Bank w ill receive tenders up to 2 p.m ., Eastern D aylight S avin g time, M onday, O ctober 7, 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 fo r 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 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 O ctober 3, 1957, m aturing January 2, 1958) T o t a l applied fo r .......... $2,290,002,000 T o t a l a c c e p t e d .............. $1,600,194,000 (in clu d es $354,658,000 entered on a n on com petitive basis and a ccep ted in fu ll at the average p rice sh ow n b e lo w ) R a n g e o f a ccep ted com p etitive b id s: E quivalent rate o f discou n t H i g h .............. . ... 99.123 a p p rox. 3.469% per annum L o w ............... ... 99.104 E quivalent rate o f discount a p p rox . 3.545% per annum A v e r a g e ........ ..... 99.108 E quivalent rate o f discou nt a p p rox. 3.528% per annum (60 percent o f the a m ou n t bid fo r at the low price w as a ccep ted) Federal R eserve District ...... N e w Y o r k ................. ...... Philadelphia ............. C leveland ................. R ich m o n d ............... St. L o u is ................... M in n ea p olis ............ K an sas C ity ............. San F r a n cis co ........ T otal ................... ...... Total A pplied fo r $ 35,637,000 1,568,229,000 46,146.000 69,967,000 15,722,000 32,767.000 255,248.000 34,752.000 17,313,000 51,962,000 40,716,000 121,543,000 $2,290,002,000 Total A ccep ted $ 25,637,000 995,429,000 26,488,000 59,967,000 15,722,000 32,067,000 190,958,000 34,752,000 17,033,000 51,962,000 34,516,000 115,663,000 $1,600,194,000 ( over) IM P O R T A N T — Please note that closing tim e is 2 p.m., Eastern D aylight Saving time. No._ TE N D E R FOR 91 -D A Y TREASURY BILLS M aturing January 9, 1958 Dated O ctober 10, 1957 T o F ed eral R eserve B a n k of N e w Y Fiscal Agent o f the United States. Dated a t ........................ ork, 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 : D o not fill in both Com petitive and C C O M P E T IT IV E TE N D E R Noncompetitive N on com petitive tenders tenders on on one one form fo r m $ ............................................................(maturity value), or any lesser amount that may be awarded. P r i c e : .................................... per 100. (P rice m ust be exp ressed with not m ore than three decimal places, f o r exam ple, 99.925) J' N O N C O M PE TITIV E TEN DER $ ............................................................(maturity value). (N o t to ex ceed $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 below: Pieces Denomination $ M aturity value 1,000 5,000 10,000 □ 1. D eliver over the counter to the undersigned □ 2. Ship to the undersigned □ 3. H old in safekeeping ( f o r a c count o f member bank on ly) □ 4. Allotm ent attached) □ 5. Special instructions: 100,000 transfer (see list 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 T reasu ry bills. P ay cash adjust ment, i f any— 500,000 □ B y check 1,000,000 □ B y credit to our reserve account (N o T otals- changes in delivery instructions will be accepted) (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 a m e o f s u 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 ............................................... .................... . B y ................ (Official signature(s) required) T i t l e ............................................................................... T itle A d d re s s ........................................ ................................................................ (B anks submitting tenders fo r customer 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 le s s than $1,000 w ill be con sid e re d , and each ten d er m u st b e f o 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 o t be p erm itted to subm it ten ders e x ce p t f o r th eir o w n a cco u n t. B anks su b m ittin g ten ders fo 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 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 bidd er, the a m ou n t bid f o r his a cco u n t, and m e th o d o f pa ym en t. F o r m s fo r this pu rp ose w ill be fu rn ish ed o n request. 3. I f the p e rso n 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 th e co r p o r a tio n a u th o rize d to m a k e th e ten der, 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 c o n stru e d as a represen tation b y him that he has b een s o a u 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 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 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 s p o n sib le and re c o g n iz e d dealers in in vestm en t securities. T en d ers fr o m oth ers m u st b e a cco m p a n ie d b y p a y m en t o f 2 p ercen t o f th e fa ce 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 a ra n ty o f pa ym en t b y an in co rp o ra te d ba n k 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 resp ect, w hich, in the o p in io n o f th e S e cre ta ry o f the T re a su ry , is m aterial, th e ten d er m a y be disregarded. ( over)