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FEDERAL RESERVE BANK OF NEW YORK Fiscal A gent o f the United States [-Circular No. 4 5 1 3 i L October 10, 1957 J O ffering o f $1,600,000,000 o f 91-Day Treasury B ills Dated October 17, 1957 Maturing January 16, 1958 T o all In corporated B anks and Trust Companies, and Others Concerned, in the Second F ederal R eserve D istrict: F ollow in g is the text o f a notice published to d a y : FOR RELEASE, MORNING NEWSPAPERS, TREASURY DEPARTMENT Thursday, October 10, 1957. Washington 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 17, 1957, in the amount of $1,600,562,000, to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be dated October 17, 1957, and will mature January 16, 1958, when the face amount will be payable without interest. They will be issued in bearer form 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, October 14, 1957. Tenders will not be received at the Treasury Department, Washington. Each tender must be for an even multiple of $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 supplied by Federal Reserve Banks or Branches on application therefor. Others than banking institutions will not be permitted to submit tenders except for their own account. Tenders will be received without deposit from incorporated banks and trust companies and from responsible and recognized dealers in in vestment securities. Tenders from others must be accompanied by payment of 2 percent of the face amount of Treasury bills applied for, unless the tenders are accompanied by an express guaranty of payment by an incorporated bank or trust company. Immediately after the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, following which public announcement will be made by the Treasury Department of the amount and price range of accepted bids. Those submitting tenders will be advised of the acceptance or rejection thereof. The Secretary of the Treasury expressly reserves the right to accept or reject any or all tenders, in whole or in part, and his action in any such respect shall be final. Subject to these reservations, noncompetitive tenders for $200,000 or less without stated price from any one bidder will be accepted in full at the average price (in three decimals) of accepted competitive bids. Settlement for accepted tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on October 17, 1957, in cash or other immediately available funds or in a like face amount of Treasury bills maturing October 17, 1957. Cash and exchange tenders will receive equal treatment. Cash adjustments will be made for differences between the par value of maturing bills accepted in exchange and the issue price of the new bills. The income derived from Treasury bills, whether interest or gain from the sale or other disposition of the bills, does not have any exemption, as such, and loss from the sale or other disposition of Treasury bills does not have any special treat ment, as such, under the Internal Revenue Code of 1954. The bills are subject to estate, inheritance, gift or other excise taxes, whether Federal or State, but are exempt from all taxation now or hereafter imposed on the principal or interest thereof by any State, or any of the possessions of the United^ States, or by any local taxing authority. For purposes of taxation the amount of discount at which Treasury bills are originally sold by the United States is considered to be interest. Under Sections 454(b) and 1221(5) of the Internal Revenue Code of 1954 the amount of discount at which bills issued hereunder are sold is not considered to accrue until such bills are sold, redeemed or otherwise disposed of, and such bills are excluded from consideration as capital assets. Accordingly, the owner of Treasury bills (other than life insurance companies) issued hereunder need include in his income tax return only the difference between the price paid for such bills, whether on original issue or on subsequent purchase, and the amount actually received either upon sale or redemption at maturity during the taxable year for which the return is made, as ordinary gain or loss. Treasury Department Circular No. 418, Revised, and this notice, prescribe the terms of the Treasury bills and govern the conditions of their issue. Copies of the circular may be obtained from any Federal Reserve Bank or Branch. This Bank will receive tenders up to 2 p.m., Eastern Daylight Saving time, Monday, O ctober 14, 1957 at the Securities Department o f its H ead 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. Payment jor 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 O ctober 10, 1957, maturing January 9, 1958) Total applied for.......$2,201,138,000 Total accepted.......... $1,600,546,000 (includes $394,167,000 entered on a noncompetitive basis and accepted in full at the aver age price shown below) Range of accepted competitive bids: H ig h ................... 99.126 Equivalent rate of discount approx. 3.458% per annum L o w .................... 99.106 Equivalent rate of discount approx. 3.537% per annum Average............. 99.109 Equivalent rate of discount approx. 3.525% per annum (59 percent of the amount bid for at the low price was accepted) Federal R eserve D istrict New York .............. Philadelphia .......... Cleveland ............... Richmond ............... Atlanta .................. Chicago................... St. L ouis................. Minneapolis............ Kansas C ity............ Dallas .................... San Francisco ....... T otal ........................... Total Applied jo r .. Total A ccep ted $ 32,212,000 1,462,734,000 50,533.000 76,508,000 19,818,000 42,569,000 236,819.000 39,913,000 20,721,000 55,602,000 46.760.000 116,949,000 $ 21,612,000 998,393,000 28,465,000 69,458,000 19,818,000 40,859,000 174,334,000 39,913,000 19,898,000 49,103,000 31,760,000 106,933,000 $2,201,138,000 $1,600,546,000 (ov IM P O R T A N T — Please note that closing tim e is 2 p.m ., Eastern D aylight Saving time. N o......................... TENDER FOR 91-DAY TREASURY BILLS Dated O ctober 17, 1957 To F R ederal eserve B a n k of N ew Y ork Maturing January 16, 1958 Dated at , 19. Fiscal Agent o f the United States. 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 TIT IV E TE N D ER [ N O N C O M PE TITIV E TEN DER ] $ ............................................................(maturity value), or any lesser amount that may be awarded. P rice: .................................... per 100. (P rice m ust be exp ressed with n ot m ore than three decimal places, f o r exam ple, 99.925) $ ............................................................(maturity value). ( N o t to exceed $200,000 f o r one bidder through all sou rces) At 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 $ Maturity value 1,000 5,000 10,000 n i. □ □ 2. □ 4. □ 5. 3. 100,000 500,000 Payment will be made as follows: undersigned Ship to the undersigned Hold in safekeeping (for ac count of member bank only) Allotment transfer (see list attached) Special instructions: □ By charge to our reserve account □ By cash or other immediately avail able funds □ By surrender of $ .................. (maturity value) of maturing Treasury bills. Pay cash adjust ment, if any— 1,000,000 (N o Totals changes in delivery instructions will be accepted) □ By check □ By 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 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. Name of subscriber Insert this tender in special en velop e m a rk ed “ T e n d e r _ fo r Treasury Bills” _ By Title (Please print) By (Official signature(s) required) .................. . T i t l e ......... Address .................................................................................... (Banks submitting tenders for customer account must indicate name on line below, or attach a list) (Name of customer) (Address) INSTRUCTIONS: 1. No tender for less than $1,000 will be considered, and each tender must be for an even multiple of $1,000 (maturity value). 2. Others than banking institutions will not be permitted to submit tenders except for their own account. Banks submitting tenders for customer account may consolidate competitive tenders at the same price and may consolidate noncompetitive tenders, provided a list is attached showing the name of each bidder, the amount bid for his account, and method of payment. Forms for this purpose will be furnished on request. 3. If the person making the tender is a corporation, the tender should be signed by an officer of the corporation authorized to make the tender, and the signing of the tender by an officer of the corporation will be construed as a representation by him that he has been so authorized. If the tender is made by a partnership, it should be signed by a member of the firm, who should sign in the form “ ............................................................................. , a copartnership, by ............................................................................................. . a member of the firm.” 4. Tenders will be received without deposit from incorporated banks and trust companies and from respon sible and recognized dealers in investment securities. Tenders from others must be accompanied by payment of 2 percent of the face amount of Treasury bills applied for, unless the tenders are accompanied by an express guaranty of payment by an incorporated bank or trust company. 5. If the language of this tender is changed in any respect, which, in the opinion of the Secretary of the Treasury, is material, the tender may be disregarded. ( over )
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