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FE D E RA L R E SE R V E BANK O F N EW YO R K Fiscal Agent of the United States [ CNffvemb2?sffw? ] Offering of $1,700,000,000 of 91-Day Treasury Bills Dated N ovem ber 14, 1957 Maturing February 13, 1958 T o all In corporated Banks and Trust Companies, and Others Concerned, in the Second Federal R eserv e D istrict: Following is the text of 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 u e s d a y , N o v e m b e r 5, 1957. TREASU RY DEPARTM EN T W a sh in g to n T h e T re a su ry D ep a rtm en t, b y this p u b lic n otice, invites ten ders fo r $1,700,000,000, o r th ereabouts, o f 91-day T rea su ry b ills, f o r cash and in e x ch a n g e f o r T r e a s u ry bills m atu rin g N o v e m b e r 14, 1957, in the a m ou n t o f $1,699,925,000, to be issu ed on a d isco u n t basis under com p etitiv e and n on co m p e titiv e b id d in g as h ereinafter provided . T h e bills o f this series w ill be dated N o v e m b e r 14, 1957, and w ill m atu re F eb ru a ry 13, 1958, w h en the face a m ou n t w ill be pa ya b le w ith ou t interest. T h e y w ill be issued in bearer fo r m o n ly, and in den om in a tion s o f $1,000, $5,000, $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 Federal R eserve B anks and B ra n ch es up to the clo s in g hour, o n e-th irty o ’ c lo c k p.m ., Eastern Sta n da rd tim e, F rida y, N o v e m b e r 8, 1957. T e n d e rs w ill n ot be receiv ed at the T r e a s u ry D ep a rtm en t, W a s h in g to n . E ach ten der m u st be fo r an even m u ltiple o f $1,000, and in the case o f com p etitiv e tenders the price o ffe re d m u st be exp ressed on the basis o f 100, w ith n ot m ore than th ree decim als, e.g., 99.925. F ra ction s m ay n ot be used. It is u rged that ten ders be m ade o n the printed fo rm s and fo rw a rd e d in the special en velop es w h ich w ill be supplied b y F ed eral R es e rv e B anks o r B ra n ch es o n a pp lica tion th erefor. O th e rs than b ank in g in stitu tions w ill n o t be perm itted to subm it tenders ex cep t fo r their ow n a ccou n t. T en d ers 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 p a 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 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 applied fo r, unless th e tenders are a ccom p a n ied b y an exp ress gu aranty o f p a y m 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 the c lo s in g h our, ten ders w ill be op en ed at the F ed era l R e serv 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 the T rea su ry D epa rtm en t o f the am ou nt and price ran ge o f a ccep ted b ids. T h o s e su b m ittin g ten ders w ill be a d vised o f the a ccep ta n ce o r re je ctio n th ereof. T h e S ecreta ry o f the T r e a s u ry ex p re s sly reserves th e righ t t o a cce p t o r re je ct a n y o r all tenders, in w h o le or in part, and his a ction in a n y such resp ect shall b e final. S u b ject to th ese reservations, n on com p etitive tenders fo r $200,000 o r less w ith ou t stated p rice fro m any on e b idd er w ill be a ccep ted in full at th e a vera ge price (in th ree decim 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 w ith th e b id s m ust be m ade o r c o m p le te d at the F ed era l R eserve B a n k on N o v e m b e r 14, 1957, in cash o r oth er im m ediately available fu n d s o r in a like fa ce a m ou n t o f T r e a s u ry bills m a tu rin g N o v e m b e r 14, 1957. Cash and e x ch a n g e ten d ers w ill receiv e equal treatm ent. C ash ad ju stm en ts w ill b e m ade fo r d ifferen ces betw een the par valu e o f m a tu rin g bills a ccep te d in e x ch a n g e and the issue p rice o f the n ew b ills. T h e in co m e derived fro m T rea su ry bills, w h eth er interest o r gain fro m the sale or oth er disposition o f the bills, d oes n ot have any e x e m p tion , as such, and loss fr o m the sale or oth er d isp osition o f T r e a s u ry bills d oes n ot have any special treat m en t, as such, under the 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 oth er excise taxes, w h eth er F ed eral o r State, but are exem p t fr o m all ta xation n ow o r hereafter im p osed on the principal o r interest th ereof b y an y State, o r any o f the possession s o f the U n ited States, o r b y any lo ca l taxing authority. F o r pu rp oses o f taxation the a m ou n t 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 to be interest. U n der S e ctio n s 4 5 4 (b ) and 1221(5) o f the Internal R even u e C od e o f 1954 the a m ou n t o f d iscou n t at w hich bills issued hereunder are so ld is n o t con sidered t o a ccru e until such bills are sold, red eem ed or 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 rea su ry bills (o th e r than life insurance co m p a n ie s ) issued hereun der need in clude in his in com e ta x return on ly the differen ce b_etween the price paid for such bills, w h eth er on original issue o r o n subsequent purchase, and the a m ou n t actu a lly received either u pon sale o r red em ption at m a tu rity du rin g the taxable year fo r w h ich the return is m ade, as ord in a ry gain or loss. T re a su 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 the T r e a s u ry bills and g o v e rn the co n d itio n s o f their issue. C op ies o f th e circular m a y be obtain ed fro m any Federal R eserve B a n k o r B ranch. This Bank will receive tenders up to 1:30 p.m., Eastern Standard time, Friday, November 8, 1957, at the Securities Department of its Head Office and at its Buffalo Branch. Please use the form on the reverse side of this circular to submit a tender, and return it in an envelope marked “Tender for Treasury Bills.” Tenders may be submitted by telegraph, sub ject to written confirmation; they may not be submitted by telephone. Payment fo r the Treasury bills cannot be made by credit through the Treasury Tax and Loan Account. funds or in maturing Treasury bills. Settlement must be made in cash or other immediately available A l f r e d H a y e s , President. (CLOSING DAY FOR RECEIPT OF TENDERS IS FRIDAY, NOVEMBER 8, 1957) THIS CIRCULAR WAS PRINTED BEFORE THE RE SULTS OF THE BIDDING FOR TREASURY BILLS DATED NOVEMBER 7, 1957 WERE AVAILABLE; THOSE RESULTS WILL BE ANNOUNCED AFTER RELEASE BY THE TREASURY DEPARTMENT. ( over) IM PO RTAN T — Please note that tenders fo r this issue must be received by Friday, November 8 , at 1 :30 p .m ., Eastern Standard time. No............ TEN D ER F O R 91-D A Y T R E A S U R Y BILLS Dated N ovem ber 14, 1957 To F e d e r a l R e s e r v e B a n k o f N e w Maturing February 13, 1958 Dated at Y o r k , 19 . . . Fiscal Agent of the United States. Pursuant to the provisions of Treasury Department Circular No. 418, Revised, and to the provisions of the public notice issued by the Treasury Department and printed on the reverse side of 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: Do not fill in both Competitive and Noncompetitive Noncompetitive tenders tenderson onone oneform form JJ C $ ...................................................( maturity value), COMPETITIVE TENDER or any lesser amount that may be awarded. NONCOMPETITIVE TENDER $ ...................................................(maturity value). (Not to exceed $200,000 for one bidder through all sources) P rice:............................... per 100. (Price must be expressed with not more than three decimal places, for example, 99.925) At the average price of accepted competitive bids. Subject to allotment, please issue, deliver, and accept payment for the bills as indicated below: Pieces Denomination $ Maturity value □ 1. Deliver over the counter to the undersigned 1,000 □ 2. Ship to the undersigned 5,000 □ 3. H old in safekeeping ( f o r ac count o f member bank only) □ 4. Allotment attached) 10,000 100,000 □ 5. transfer (see Paym ent will be made as fo llo w s : □ B y charge to our reserve account □ By cash or other immediately avail able funds □ B y surrender o f $ ..................... (m aturity value) o f maturing Treasu ry bills. P a y cash adjust ment, i f any— list Special instructions: 500,000 □ B y check 1,000,000 □ B y credit to our reserve account (N o changes in delivery instructions will be accepted) Total s- (Payment cannot be made through Treasury Tax and Loan Account) The undersigned (if a bank or trust company) hereby certifies that the Treasury bills which you are hereby instructed to dispose of 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 envelope m arked t‘ T en d er _ for Treasury Bills” _ (P le a s e p r in t) By ................................ ..................... B y -----(O ffic ia l s ig n a t u r e (s ) r e q u ir e d ) 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) (A d d r e s s ) IN S T R U C T IO N S : 1. N o ten der fo r less than $1,000 w ill be con sid ered , 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 to subm it ten ders e x ce p t f o r their o w n a ccou n t. B an k s su b m ittin g ten ders f o r cu sto m e r a cco u n t m ay co n so lid a te com p etitive tenders at the same price and m a y co n so lid a te n o n co m p e titiv e ten d ers, p r ov id ed 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 f o r his a cco u n t, and m e th o d o f paym ent. F o r m s fo r this p u rp ose w ill be furn ished on request. 3. I f the p erson 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 r p o r a tio n a u th o rize d to m a ke 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 rp o ra tio n w ill be co n stru e d as a representation b y him that he has been s o auth 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 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 ep osit 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 sible and re co g n iz e d dealers in in vestm ent securities. T en d ers fro m oth ers m ust b e a cco m p a n ie d b y pa ym en t o f 2 p ercen t o f the 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 exp ress 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 a n y resp ect, w hich, in the o p in io n o f the S ecreta ry o f the T rea su ry, is m aterial, the ten der m a y be disregarded. ( over)
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