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FEDERAL RESERVE BANK O F NEW YORK r Circular No. 4 5 4 8 1 I January 2, 1958 J Fiscal Agent of the United States Offering of $1,700,000,000 o f 91-Day Treasury Bills Dated January 9, 1958 Maturing April 10, 1958 To all Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal Reserve District: Following is the text o f 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 r sd a y , J a n u a ry 2, 1958. TREASU RY D EPARTM EN T W a s h in g to n T h e T r e a s u ry D epa rtm en t, b y this p u b lic n otice, in vites tenders f o r $1,700,000,000, o r th ereabou ts, o f 91-d a y T re a su ry b ills, fo r cash and in ex ch a n g e fo r T r e a s u ry bills m a tu rin g Janu ary 9, 1958, in the a m ou n t o f $1,600,260,000, t o be issued o n a d is co u n t basis u nder 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 J anu ary 9, 1958, and w ill m ature A p r il 10, 1958, w h en the face a m ou n t w ill b e p a ya b le 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 b e receiv ed at F ed eral R e serv e B anks and B ra n ch es up t o the clo s in g h our, on e-th irty o ’ c lo c k p.m ., E astern S tandard tim e, M o n d a y , January 6, 1958. T e n d e rs w ill n ot be receiv ed at th e T r e a s u ry D epa rtm en t, W a s h in g to n . E a ch 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 etitiv e ten ders the p rice o ffe re d m u st b e ex p resse d o n th e basis o f 100, w ith n ot m ore than th ree decim a ls, e.g., 99.925. F raction s m a y n ot b e used. It is u rged that ten ders be m a d e o n the printed fo rm s and fo rw a rd e d in the sp ecia l en v elop es w h ich w ill b e supplied b y Federal R eserve B ank s o r B ran ch es o n a p p lica tion th erefor. O th ers than b a n k in g in stitu tions w ill n ot be perm itted to subm it ten ders ex cep t fo r th eir o w n a ccou n t. T en d ers w ill be re ce iv e d w ith ou t d ep o sit fr o m in corp ora ted banks and trust com p a n ies and fr o m resp on sib le and re co g n iz e d d ea lers 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 ym en t o f 2 p ercen t o f th e fa ce a m ou n t o f T r e a s u ry bills applied fo r, unless the 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 th e clo s in g h ou r, ten ders w ill be op en ed at the F ed eral R e s e rv e B anks and B ra n ch es, fo llo w in g w h ich p u b lic a n n ou n cem en t w ill be m ade b y th e T r e a s u ry D epa rtm en t o f the 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 be a d vised o f the a ccep ta n ce o r reje ctio n th ereof. T h e S ecreta ry o f th e T rea su 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 ten ders, 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 reservations, n on com p etitiv e tenders for $200,000 o r less w ith ou t stated p rice fro m any o n e b idd er w ill be a ccep ted in full at the a vera ge p rice (in three d ecim 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 a d e o r co m p le te d at th e F ed era l R e serv e B ank on J a n u a ry 9, 1958, in cash o r o th e r im m ediately available fu n d s o r in a like fa c e a m ou n t o f T r e a s u ry bills m atu rin g Janu ary 9, 1958. Cash and ex ch a n g e ten ders w ill receiv e equal treatm ent. C ash ad ju stm en ts w ill be m a d e fo r d ifferen ces betw een the pa r valu e o f m a tu rin g bills a ccep te d in e x ch a n g e and th e issu e 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 fr o m the sale o r oth er d isp osition o f the bills, d oes n ot have a n y exem ption , as such, and lo s s fr o m th e sale o r oth er d isp osition o f T rea su ry bills d oes n ot have any special tre a t m ent, as such, under the In tern al R even u e C o d e o f 1954. T h e bills are su b ject t o estate, inheritance, g ift o r oth er excise taxes, w h eth er F ed eral o r State, but are exem p t fr o m all taxation n o w o r hereafter im p osed on the principal o r interest th ereof b y a n y State, o r a n y o f the p ossession s o f the U n ited States, or b y any lo ca l ta x in g authority. F o r pu rp oses o f taxation the a m ou n t o f d isco u n t at w h ich T rea su ry bills are origin a lly sold b y the U n ited States is con sid ered 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 h ich bills issued h ereunder are so ld is n ot con sid ered to a ccru e until such bills are sold, red eem ed or oth erw ise disp osed o f, and such bills are exclu d ed fr o m con sidera tion as capital assets. A c c o r d in g ly , the ow n er 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 co m e tax return o n ly the differen ce b etw een the p rice paid fo r such bills, w hether on original issue o r o n subsequent purchase, and th e a m ou n t actu a lly received either u p on sale o r red em ption at m aturity d u rin g the taxable year fo r w h ich 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 , and this n otice, prescrib e 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 the circu la r m a y be ob ta in ed fr o m a n y F ed era l R eserve B a n k o r B ran ch. This Bank will receive tenders up to 1 :30 p.m., Eastern Standard time, Monday, January 6 , 1958, at the Securities Department o f 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. Settlement must be made in cash or other immediately available funds or in maturing Treasury bills. A lfred H a y e s, President. Results o f last offering o f T reasu ry bills (9 1 -d a y bills dated January 2 , 1 9 5 8 , m aturing A p ril 3 , 1 9 5 8 ) T o ta l applied fo r . . $2,388,282,000 T o ta l a cccp te d .........$1,700,438,000 (in clu d es $367,958,000 entered on a n on com p etitive basis and a ccep ted in full 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 etitive b id s: .................. 99.312 E q u iva len t rate o f d iscou n t a p p rox . 2.722% per annum L o w .................... 99.298 E quivalent rate o f discou nt a p p rox . 2.777% p er annum A v e ra g e 99.304 E quivalent rate o f discou nt a p p rox. 2.752% p e r annum H ig h ........... F ederal R eserv e D istrict B o s to n ........................... N e w Y o r k .................... Philadelphia C leveland R ich m on d .................... A tla n ta ........................... C h ica g o ........................... St. L ou is ...................... M in neapolis .................. K ansas C ity ................ Dallas ............................. San F r a n cisco ............. Total A pplied f o r $ 52,304,000 1,613,828,000 43,020.000 66.872,000 18,169,000 34,308,000 300.053.0(10 37,260.0(H) 16,631,000 42,675,000 42,495,000 120,667,000 T otal A ccep ted $ 49,604,000 1,077,573,000 28,020,000 65,297,000 16,984,000 29,178,000 207,532,000 32,850,000 16,231.000 39,122,000 34.936,000 103,111,000 (92 percent o f the am ou nt b id fo r at the low price w as a cce p te d ) T o ta l ............... $2,388,282,000 $1,700,438,000 ( over ) N o............... TENDER FOR 91-DAY TREASURY BILLS Dated January 9, 1958 To Maturing April 10, 1958 Dated a t ................................ F ed eral R eserve B a n k of N e w Y o r k , 19. . . Fiscal Agent o f 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: D o not fill in both Com petitive and j C $ ........................................................(maturity value), $ ........................................................(maturity value). or any lesser amount that may be awarded. (N o t to exceed $200,000 f o r one bidder through all sources) COMPETITIVE TENDER Noncon.petUive N oncom petitivetenders tenderson onone onefor,,, fo rm JJ P r ic e :.................................. per 100. (P r ic e must be exp ressed with not m ore than three decimal places, f o r exam ple, 99.925) 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 $ Maturity value 1,000 5,000 10,000 n i. □ 2. Ship to the undersigned □ 3. H old in safekeeping ( f o r ac count o f member bank on ly) □ 4. Allotment transfer □ 5. Special instructions: D eliver over the counter to the undersigned (see list attached) 100,000 500,000 , 1 000,000 (N o 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 □ By 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 (P aym en t cannot be nmde 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. 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” By (Please print) ......................................................................... 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, or attach a list) (Name of customer) (Address) IN S T R U C T IO N S : 1. N o te n d er fo r less than $1,000 w ill be con sid ered , and each ten der m u st be fo r an even m u ltiple 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 ot be perm itted to subm it ten ders e x cep t fo r their o w n a ccou n t. B anks su b m ittin g tenders f o r c u sto m e r a ccou 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 ders, p r o v id e d a list is a ttached s h o w in g the nam e o f each bidd er, the 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 pu rp ose w ill be furn ished on request. 3. I f the p e rson m a k in g the 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 rp o ra tio n a u th orized to m a k e the ten der, and th e sign in g o f th e tender 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 so 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 em 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 e m b e r o f th e firm .” 4. T e n d e rs w ill be receiv ed w ith ou t d e p o s it fr o m in co rp o ra te d banks and trust co m p a n ie s and from re s p o n sible a n d re co g n iz e d dealers in in vestm ent securities. T en d ers fr o m oth ers m u st be a cco m p a n ie d b y pa ym en t o f 2 p ercen t o f th e fa ce a m ou n t o f T rea su ry bills a pp lied fo r, u nless the 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 ba n k o r trust com p a n y . 5. I f the 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 reasu ry, is m aterial, the ten der m a y be disregarded. (o v e r )
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