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FE D E R A L R E SE R V E BAN K O F N EW YO R K r Circular N o. 4 5 4 3 "1 L December 19, 1957 J Fiscal Agent o f the United States Offering of $1,700,000,000 of 91-Day Treasury Bills Dated December 26, 1957 Maturing March 27, 1958 To all Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal Reserve 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 h u rsd a y , D e ce m b e r 19, 1957. TREASURY DEPARTM ENT W a s h in g to n T h e T r e a s u ry D ep a rtm en t, b y this p u b lic n otice, in vites tenders fo r $1,700,000,000, o r th erea b ou ts, o f 9 1 -d a y T re a su ry b ills, fo r cash and in e x ch a n g e f o r T rea su ry bills m a tu rin g D e ce m b e r 26, 1957, in the a m ou n t o f $1,601,601,000, to be issued on a d isco u n t basis under com p etitive and n on com p etitiv e b id d in g as h ereinafter provid ed . T h e bills o f this series w ill be dated D e ce m b e r 26, 1957, and w ill m ature M a rch 27, 1958, w h en the fa ce a m ou n t w ill be pa ya b le w ith ou t in terest. 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 b e received at F ed eral R e serv e B anks and B ra n ch es u p t o the clo s in g h our, on e-th irty o ’ c lo ck p.m ., E astern S tandard tim e, M o n d a y , D ecem b er 23, 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 ca se o f com p etitive ten ders the p rice o ffe re d m u st be ex p resse d on th e basis o f 100, w ith n ot m o re than th ree decim a ls, e.g., 99.925. F raction s m a y n ot be used. It is u rg ed that ten ders be m ade o n the printed fo rm s and fo rw a rd e d in the special en v elop es w h ich w ill be sup plied b y F ed eral R e serv e B anks o r B ran ch es o n a p p lica tion th erefor. O th e rs than b a n k in g in stitu tions w ill n ot be perm itted to subm it ten ders e x cep t fo r th eir ow n a ccou n t. T e n d e rs 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 dea lers in in vest 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 y m en t o f 2 p ercen t o f the face a m ou n t o f T r e a s u ry bills a pp lied fo r, unless th e ten ders are a ccom p a n ied b y an exp ress gu aranty o f p a ym en t b y an in corp ora ted b a n k o r trust com p a n y . Im m e d ia te ly after th e clo s in g h our, ten ders w ill be op en ed at the F ed era l R e s e rv e B anks and B ra n ch es, fo llo w in g w hich p u b lic a n n ou n cem en t w ill be m ade b y th e T rea su ry D epa rtm en t o f th e a m ou n t a n d price ran ge o f a ccep ted bids. T h o s e su b m ittin g tenders w ill b e 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 e x p re s sly reserves the righ t to a cce p t o r reject 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 je ct to th ese reserva tion s, 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 b e a cce p te d in full at the a vera ge price (in three decim a ls) o f a ccep ted com p etitive bids. S ettlem ent fo r a ccep ted ten ders in a ccord a n ce w ith the b id s m u st be m ade o r c o m p le te d at the F ed eral R e serv e B ank on D e ce m b e r 26, 1957, in cash o r o th e r 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 b ills m a tu rin g D e ce m b e r 26, 1957. Cash and ex ch a n g e tenders w ill receiv e equal treatm ent. Cash adju stm en ts w ill be m a d e f o r d ifferen ces b etw een the p a r valu e o f m a tu rin g bills a cce p te d in e x ch a n g e and the issue p rice o f the n ew bills. T h e in co m e derived fro m T rea su ry bills, w hether interest o r gain fro m the sale o r oth er d isp osition o f th e bills, d oes n o t have a n y e x e m p tio n , as such, and lo s s fr o m th e sale o r oth er d isp osition o f T r e a s u 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 to estate, inheritance, g ift o r oth er excise taxes, w h e th e r 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 o r interest th ereof b y any State, o r a n y o f the p ossession s o f the U n ited States, or b y any lo c a l 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 h ich T rea su ry bills are o rig in a lly s o ld b y the U n ited States is con sid ered to be interest. U n d er 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 h ich bills issued h ereunder are so ld is n o t con sidered to a ccru e u ntil such bills are sold, red eem ed o r oth erw ise disp osed o f, and such bills a re 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 clu d e in his in com e ta x return o n ly the differen ce betw een the price paid fo r such bills, w hether on origin al issue o r o n subsequent purchase, and the a m ou n t actu a lly received either u p on sale o r red em ption at m atu rity du rin g the taxable year fo r w h ich the return is m ade, as ord in a ry ga in o r loss. T re a su ry D epartm en t C ircu lar N o . 418, R evised , and this n otice, prescribe the term s o f the T rea su 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 circu la r m a y be obtain ed fr o m any F ed era l R eserve B ank o r B ranch. This Bank will receive tenders up to 1 :30 p.m., Eastern Standard time, Monday, December 23, 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 lfr e d H ayes, President. Results of last offering of Treasury bills (91-day bills dated December 19, 1957, maturing March 20, 1958) T o t a l a pp lied f o r . . .$2,347,738,000 T o t a l a c c e p t e d ......... $1,700,340,000 (in clu d es $398,962,000 en tered o n a n on com p etitiv e 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 co m p etitiv e b id s : (e x c e p t in g 4 ten ders tota lin g $515,000) E q u iva len t rate o f d iscou n t H ig h .................. 99.225 a p p rox . 3.066% p er annum E q u iva len t rate o f d iscou n t L o w .................. 99.202 a p p ro x . 3.157% p er annum E q u iva len t rate o f d iscou n t A v e ra g e ........... 99.206 a p p ro x . 3.140% per annum (37 p ercen t o f the a m ou n t bid fo r at the lowprice w a s a cce p te d ) Total A pplied fo r Federal Reserve District B o s to n ...................... . . . N e w Y o r k ............... P h iladelp hia ........... C levela n d .................. R ic h m o n d ............... A tla n ta ...................... C h ica g o .................... St. L ou is .................. M in n ea p olis ........... K a n sa s C ity ........... D a lla s ........................ San F r a n cis co T o t a l ......... $ 37,645,000 1,521,885,000 41,541,000 73,984,000 26,729,000 66,880,000 279,194,000 49,574,000 18,035,000 50,473,000 42,604,000 139,194,000 $2,347,738,000 Total Accepted $ 37,645,000 976,662,000 21,541,000 68,984,000 26,729,000 65,450,000 209,154,000 49,574,000 18,035,000 46,843,000 42,604,000 137,119,000 $1,700,340,000 ( over) N o. TEN D ER FO R 91-D A Y T R E A S U R Y BILLS Dated Decem ber 26, 1957 To Maturing March 27, 1958 Dated a t ............................... F ed era l R eserve B an k o f N ew Y ork , 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 Noncomte ,i,K ',c tenders n J e rs oon n oone n e foform r m JJ Noncompetitive C $ ...................................................( maturity value), COMPETITIVE TENDER or any lesser amount that may be awarded. NONCOMPETITIVE TENDER $ ...................................................(maturity value). (N ot to exceed $200fl00 f o r one bidder through all sources) Price: ............................... per 100. (P rice must be expressed with not more than three decimal places, f o r 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 $ M aturity value 1,000 5,000 10,000 □ 1. Deliver over the counter to the undersigned n n 2. Ship to the undersigned 3. H old in safekeeping ( f o r ac count o f member bank only) □ attached) 100,000 □ 500,000 5. Special instructions: 1,000,000 (No changes in delivery instructions will be accepted) Totals------- Payment 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. Pay cash adjust ment, if 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 “ T en d er 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 f o r customer account must indicate name on line below, o r attach a list) (Name of customer) (Address) IN S T R U C T IO N S : 1. N o ten der f o r le s s than $1,000 w ill be con sid e re d , and each ten der m u st b e f o r an ev en m u ltiple 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 to subm it ten ders e x ce p t f o r their o w n a ccou n t. Banks su b m ittin g ten ders f o r cu s to m e r a cco u n t m a y co n so lid a te com p etitiv e ten ders 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 sh ow in g the nam e o f each bidd er, th e a m ou n t bid fo r his a cco u n t, and m e th o d o f paym ent. F o r m s f o r this p u rp o s e w ill be furn ished o n request. 3. I f the p e rson m a k in g th e ten der is a co rp o ra tio n , the tender 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 ke th e ten der, a n d the sig n in g o f the ten der b y an officer o f the co r p o r a tio n w ill be co n stru e d as a representation b y him that he has been s o au 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 sh ou ld sign in the fo r m “ ............................................................................................... . a cop a rtn ersh ip , b y ................................................................................................................... . a m em b er o f th e firm .” 4. T e n d e r s w ill b e receiv ed w ith ou t d ep osit fro m in co rp o ra te d banks and trust co m p a n ie s and fro m resp o n sib le and re co g n iz e d d ea lers in in vestm ent securities. T en d ers fro m o th 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 r e a s u ry bills applied fo r, unless the ten ders are a ccom p a n ied b y an ex p re s s 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 language o f this ten der is ch a n g ed in any respect, w hich, in th e 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 b e disregarded. ( over)