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FEDERAL RESERVE BANK OF NEW YORK Circular No. 4 5 2 0 October 24, 1957 . Fiscal Agent o f the United States O ffering o f $1,700,000,000 o f 91-Day Treasury B ills Dated October 31, 1957 Maturing January 30, 1958 To 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: TREASU RY DEPARTM ENT W a sh in g ton 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 c to b e r 24, 1957. T h e T re a su ry D epartm en t, b y this p u b lic n otice, invites tenders fo r $1,700,000,000, or thereabouts, o f 91-day T reasu ry bills, fo r cash and in exch an ge for T rea su ry bills m aturing O c to b e r 31, 1957, in the a m ou n t o f $1,699,862,000, to be issued on a d iscou 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 31, 1957, and w ill m ature January 30, 1958, w hen th e face a m ou n t w ill be payable w ith ou t interest. T h e y w ill be issued in bearer form on ly, and in den om in ation s o f $1,000, $5,0Gu, $10,000, $100,000, $500,000 and $1,000,000 (m a tu rity va lu e). T e n d e rs w'ill be receiv ed at F ed eral R eserve B anks and B ran ch es up to the clo s in g hour, on e-th irty o ’ c lo c k p.m ., E astern S tandard tim e, M on d a y, O cto b e r 28, 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 gton . E a ch ten der m u st be for an even m u ltiple o f $1,000, and in the ca se o f com p etitive tenders the price o ffe re d m u st be expressed on the basis o f 100, w ith n ot m ore than three decim als, e. g., 99.925. F ra ction s m a y n ot be used. It is u rg ed that tenders be m a d e o n the printed fo rm s and forw a rd ed in the special en v elop es w h ich w ill be sup plied b y F ed eral R e s e rv e Banks o r B ran ch es o n application therefor. O th e rs than banking institutions w ill n ot be perm itted to subm it tenders e x cep t fo r their ow n a ccou n t. T en d ers w ill be received w ith ou t deposit fro m in corp ora ted banks and trust com pa n ies and fr o m respon sib le and recog n ized dealers in in vest m en t securities. T e n d ers fro m oth ers m u st be a ccom p a n ied b y p a y m en t o f 2 p ercen t o f the face a m ou n t o f T rea su ry bills a pplied fo r, unless th e tenders are a ccom p a n ied b y an exp ress gu aranty o f paym ent b y an in corpora ted bank or trust com pany. Im m ed ia tely a fter the clo s in g h our, tenders w ill be o p en ed at th e F ed eral R eserve B anks and B ranches, fo llo w in g w hich pu blic a n n ou n cem en t w ill be m ade b y the T rea su 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 S ecreta ry o f the T rea su ry ex p ressly reserves the righ t to a ccep t o r reject a n y or all tenders, in w h ole o r in part, and his action in a n y such respect shall be final. S u bject t o these reservations, n on com petitive tenders fo r $200,000 or less w ith ou t stated price fr o m any on e b idd er w ill be a ccepted in fu ll at the average p rice (in th ree decim a ls) o f a ccep ted com p etitive bids. Settlem ent fo r a ccep ted tenders in a ccord a n ce w ith the bids m u st be m ade or com p leted at the Federal R eserve B ank on O c to b e r 31, 1957, in cash o r oth er im m ediately available funds o r in a like face am ou nt o f T rea su ry bills m atu rin g O c to b e r 31, 1957. Cash and ex ch a n g e tenders w ill receive equal treatm ent. Cash adjustm ents w'ill be m ade fo r differences betw een the pa r value o f m atu rin g bills a ccep ted in exch a n ge and the issue price o f the new bills. T h e in co m e derived fr o m T rea su ry bills, w hether in terest o r gain fr o m the sale or oth er d isp osition o f the bills, does not have a n y exem p tion , as such, and loss fro m the sale or oth er d isp osition o f T rea su ry bills d oes n ot have a n y special treat m en t, as such, under the Internal R even u e C od e o f 1954. T h e bills are su b ject t o estate, inheritance, g ift o r oth er ex cise taxes, w h eth er F ed eral o r State, but are exem p t fro m all taxation n o w o r h ereafter im p osed on the principal or interest th ereof b y any State, o r any o f the possession s o f the U n ited States, or b y any loca l ta x in g authority. F o r pu rp oses o f taxation the am ou nt o f d iscou n t at w h ich T rea su ry bills are o rigin a lly sold b y the U n ited States is con sidered t o be interest. U nder S ection s 4 5 4 (b ) and 1221(5) o f th e Internal R even u e C o d e o f 1954 the am ou nt o f discou n t a t w hich bills issued hereunder are so ld is n o t con sidered to a ccru e until such bills are sold , red eem ed o r oth erw ise disp osed of, and such bills are excluded fr o m con sidera tion as capital assets. A c co r d in g ly , the o w n e r o f T rea su ry bills (o th e r than life insurance co m p a n ie s ) issued hereun der need include in his in com e tax return o n ly the differen ce b etw een the price paid fo r such bills, w hether on original issue o r on subsequent purchase, a n d the a m ou n t actu a lly receiv ed either u pon sale o r red em p tion a t m aturity du rin g the taxable yea r f o r w hich the return is m ade, as ordinary gain o r loss. T r e a s u ry D epartm en t C ircu lar N o . 418, R evised, and this n otice, prescrib e the term s o f the T rea su ry bills and govern the co n d itio n s o f their issue. C opies o f the circular m ay be obtain ed fr o m any F ed eral R eserve B ank or B ranch. T h is Bank w ill receive tenders up to 1 :30 p.m., Eastern Standard time, M onday, O ctober 28, 1957, at the Securi ties 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 submitted by telegraph, subject to written confirmation; they may not be submitted by telephone. P aym ent f o r the T reasury bills cannot be made by credit through the T reasury T a x and L oan A cco u n t. im m ediately available fu n d s or in maturing T reasury bills. S ettlem en t m ust be made in cash or other A lfr e d H ayes, P resident. Results o f last offering o f Treasury bills (91 -d ay bills dated O ctober 24, 1957, m aturing January 23, 1958) T o ta l a pplied f o r .......... $2,352,766,000 T o ta l a c c e p t e d ...............$1,600,993,000 (in clu des $389,991,000 entered on a n on com petitive basis and accepted in full at the average price show n b e lo w ) R a n g e o f accepted com petitive b id s: (e x ce p tin g 3 ten ders totalin g $1,300,000) H i g h ..................... 99.093 E quivalent rate o f discou nt a p p rox. 3.588% per annum 99.083 E quivalent rate o f discou nt Low app rox. 3.628% per annum A v e r a g e .............. 99.085 E quivalent rate o f discou nt app rox. 3.619% per annum (91 percent o f the a m ou n t bid for at the low price w as a ccep ted ) Federal R eserv e D istrict Total A pplied f o r Toial A ccep ted B o s to n .............................. N ew Y o r k ........................ P h iladelphij C leveland ....... R ich m on d ....... A tlanta ........... C h ica g o ........... St. L ou is ......... M in n eap olis .... K ansas C ity ... D allas .............. San F ra n cisco $ 48,748.000 1,597,971.000 44.692.000 71.672.000 17.836.000 36.941.000 235.200.000 34.390.000 29.202.000 54.208.000 45.505.000 136.401.000 33.898.000 987.171.000 25.108.000 ...................... $2,352,766,000 $1,600,993,000 T otal . 66 222.000 17.836.000 34.715.000 163.120.000 34.390.000 27.884.000 53.909.000 38.055.000 118.685.000 ( over) IM P O R T A N T — Please note that closing time is 1:30 p.m ., Eastern Standard time. No., TE N D E R FOR 91 -D A Y TREASURY BILLS M aturing January 30, 1958 tim e, M onday, O ctob e r 28, 1957 D ated O ctober 31, 1957 To Standard time for receipt of tenders is 1:30 p.m., Eastern 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 e lo w : C O M P E TIT IV E TEN DER [ Do not fill in both Competitive and Noncompetitive tenders on one form J $ ............................................................(maturity value), or any lesser amount that may be awarded. P r i c e : .................................... per 100. (Price must be expressed with not more than three decimal places, fo r example, 99.925) N O N C O M PE TITIV E TEN DER $ ............................................................(maturity value). (N ot to exceed $200,000 for 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 Closing Dated a t ........................ F e d e ra l R eserve B a n k o f N ew Y o rk , $ Maturity value 1,000 □ 5,000 □ □ 10,000 □ 100,000 □ 500,000 1. Deliver over the counter to the undersigned 2. Ship to the undersigned 3. Hold in safekeeping (fo r ac count of member bank only) 4. Allotment transfer (see list attached) 5. Special instructions: Payment will be made as follows: □ 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 (if 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 ............................. (Please print) By (Official signature(s) required) T it le ................................................................... . 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) IN S T R U C T IO N S : 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 o f 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 o f 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 o f payment by an incorporated bank or trust company. 5. If the language of this tender is changed in any respect, which, in the opinion o f the Secretary of the Treasury, is material, the tender may be disregarded. ( over)