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F E D E R A L R E S E R V E BAN K O F N E W Y O R K C ir cu la r N o. 4 5 3 9 D e c e m b e r 5, 1957 . Fiscal A gent o f the United States Offering of $1,800,000,000 of 91-Day Treasury Bills Dated D ecem ber 12, 1957 Maturing M arch 13, 1958 To all Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal Reserve District: 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 h u rsd a y, D e ce m b e r 5, 1957. TREASU RY D EPARTM EN T W a sh in g to n T h e T re a su ry D epartm en t, b y this p u b lic n otice, invites tenders for $1,800,000,000, o r thereabouts, o f 9 1-d ay T re a su ry bills, fo r cash and in exch a n ge for T rea su ry bills m aturing D e ce m b e r 12, 1957, in the a m ou n t o f $1,802,221,000, 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 provided . T h e bills o f this series w ill be dated D e ce m b e r 12, 1957, and w ill m ature M a rch 13, 1958, w hen the 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 fo r m on 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 v a lu e ). T e n d e rs w ill be receiv ed at F ed eral R e serv e B anks and B ran ch es up to the clo s in g h our, on e-th irty o ’ c lo ck p.m ., E astern Standard tim e, M on d a y , D ecem b er 9, 1957. T en d ers w ill n ot be receiv ed at the T rea su ry D epartm en t, W a s h in g to n . E ach ten der m u st be fo r an even m ultiple o f $1,000, and in the case o f com p etitive tenders the price offered 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 raction s m a y n ot be used. I t is u rg ed that tenders be m ade on the printed form s and forw a rd ed in the special en velop es w h ich w ill be supplied b y F ed eral R eserve B anks or B ra n ch es o n a pp lication therefor. O th ers than b ankin g institutions w ill n o t 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 received w ith ou t dep osit fro m in corp ora ted banks a n d trust com pa n ies and fr o m respon sib le and re co g n iz e d 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 applied fo r, unless th e tenders are a ccom p a n ied b y an exp ress guaranty o f p a ym en t b y an in corpora ted b a n k o r trust com pan y. Im m ed ia tely after the clo s in g h our, ten ders w ill be op en ed at th e Federal R eserve B anks and B ran ches, fo llo w in g w hich pu b lic a n n ou n cem en t w ill b e m ade b y th e 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 ecretary o f the T r e a s u ry ex p ressly reserves the righ t to a cce p t o r reject a n y or all ten ders, in w h o le or in part, and his action in a n y such resp ect shall b e final. S u b je ct to these reservations, n on com p etitive tenders fo r $200,000 o r less w ith ou t stated price fro m a n y on e b id d er w ill b e a ccepted in fu ll at the a verage price (in th ree decim als) o f a ccep ted com p etitive bids. Settlem ent for a ccep ted ten ders in a ccord a n ce w ith the b id s m ust be m ade o r com p leted at the Federal R e serv e B ank on D e ce m b e r 12, 1957, in cash o r oth er im m ediately available fu n ds o r in a like face a m ou n t o f T rea su ry bills m atu rin g D ecem b er 12, 1957. Cash and exch a n ge tenders w ill receive equal treatm ent. Cash adjustm ents w ill be m ade fo r differences betw een the par value o f m atu rin g bills a ccep te d in exch a n ge a n d the issue price o f the n ew bills. T h e in co m e derived fr o m T rea su ry bills, w hether in terest or gain fr o m the sale o r oth er d isp osition o f th e bills, d oes n ot have any exem ption , as such, and loss fr o m the sale or oth er d isp osition o f T rea su ry bills does n o t 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 to estate, inheritance, g ift o r oth er excise taxes, w hether F ed era l o r State, but are exem p t fr o m all taxation n o w o r hereafter im posed 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 any loca l taxing authority. F o r p u rp oses o f taxation the a m ou n t o f discou 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 t o be interest. U n der S ection 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 a m ou n t o f discou n t at w h ich bills issued hereunder are so ld is n ot 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 fro 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 (oth er than life insurance com p a n ies) issued hereunder need in clude in his in com e ta x return o n ly the difference b etw een the price paid for such bills, w hether on original issue o r o n subsequent purchase, and the a m ou n t actu a lly received either u pon sale or red em p tion at m aturity d u rin g the taxable year fo r w hich the return is m ade, as ord in a ry gain o r loss. T re a su ry D epartm en t C ircu lar N o . 418, R evised, a n d this notice, p rescrib e the term s o f the T rea su ry bills and g o v e rn the con d ition s o f their issue. C op ies o f the circular m ay be obtain ed fro m any F ed eral R eserve B ank or B ran ch. This Bank will receive tenders up to 1:30 p.m., Eastern Standard time, Monday, December 9, 1957, at the Securi ties 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, 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 Tax and Loan Account. immediately available funds or in maturing Treasury bills. Settlement must be made in cash or other A lfr e d H ayes, President. Results of last offering of Treasury bills (91-day bills dated December 5, 1957, maturing March 6, 1958) T o ta l applied f o r .......... $2,655,217,000 T o t a l a c c e p t e d ...............$1,800,110,000 (in clu des $336,832,000 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: H ig h ............... 99.220 E quivalent rate o f discount approx. 3.086% per annum L o w ............... 99.212 E quivalent rate o f discou nt app rox. 3.117% per annum A v e ra g e ........ ...... 99.215 E quivalent rate o f discou nt a pp rox. 3.105% per annum (10 percent o f the am ount bid fo r at the low price w as a ccep ted) Federal Reserve District .... N ew Y o r k ................... .... Philadelphia ............... C leveland ................... R ich m on d ................... St. L ou is ..................... M in neapolis ............... K ansas C ity ............... San F ra n cisco .......... T otal ...................... .... Total Applied for $ 32,513,000 1,787,749,000 39,998,000 63,760,000 21,803,000 37,871,000 319,180,000 37,550,000 25,676,000 41,155,000 47,130,000 200,832,000 $2,655,217,000 Total Accepted $ 30,463,000 1,098,179,000 19,752,000 62,227,000 19,813,000 33,221,000 248,327,000 34,505,000 25,396,000 40,355,000 28,230,000 159,642,000 $1,800,110,000 ( over ) N o__ TENDER FOR 91 -D A Y TREASURY BILLS Dated December 12, 1957 To Maturing March 13, 1958 Dated a t .................... F ed era l R eserve B a n k o f N ew Y ork , Fiscal Agent of the United States. 19... 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: D o not fill in both Competitive and Noncompetitive Noncompetitive tenders tenderson onone oneform form C $ ................................................... (maturity value), $ ................................................... (maturity value). or any lesser amount that may be awarded. (N ot to exceed $200,000 fo r one bidder through all sources) COMPETITIVE TENDER Price: ............................... per 100. ( Price must be expressed with not more than three decimal places, f o r example, 99.925) J1 NONCOMPETITIVE TENDER 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 $ 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 ac count o f member bank on ly) □ 4. Allotm ent □ 5. transfer (see list attached) 100,000 500,000 Special instructions: 1,000,000 (No changes in delivery instructions will be accepted) T otals- Paym ent 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 □ B y surrender o f $ ....................... (m aturity value) o f maturing Treasu ry bills. Pay cash adjust ment, i f any— □ B y check □ B y credit to our reserve account (Payment cannot be made through Treasury T ax 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 **Tender _ for 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, o r attach a list) (Name o f customer) (Address) IN S T R U C T IO N S : 1. N o te n d e r fo r less than $1,000 w ill b e co n sid e re d , a n d 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 perm itted t o su b m it ten ders e x c e p t fo r their o w n a cco u n t. B an k s su b m ittin g ten ders f o r c u s to m e r a c c o u n t m a y c o n s o lid a te com p etitiv e ten ders 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 te n d e r s, p r o v id e d a list is a tta ch ed s h o w in g the nam e o f each b id d er, th e a m o u n t b id f o r his a ccou n t, and m e th o d o f p a ym en t. F o r m s f o r this p u rp ose w ill be fu rn ish ed on request. 3. I f the p e rso n m a k in g th e ten der is a c o rp o ra tio n , the ten der sh ou ld be sign ed b y an o ffice r o f th e c o r p o r a tio n a u th o rize d to m a k e th e ten d er, and 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 represen tation b y h im that he has been s o au th orized . I f the ten der is m ade b y a p a rtn ersh ip, it s h ou ld b e sign ed b y a m e m b e r o f th e firm , w h o s h o u ld sign in the fo r m “ ................................................................................................f 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 b e receiv ed w ith o u t d e p o s it fr o m in co rp o ra te d banks and tru st 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 ym en t o f 2 p e rce n 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 cco m p a n ie d 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 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 e d in a n y resp ect, w h ich , in the o p in io n o f the S ecreta ry o f the T re a su ry , is m aterial, th e ten d er m a y be disreg arded. ( over)