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FE D E RA L RE SE R V E BANK O F N EW YO R K
Circular No. 4 5 5 8 '
J a n u a ry 23, 1958 .

Fiscal Agent of the United States

Offering o f $1,700,000,000 of 91-Day Treasury Bills
Dated January 30, 1958

Maturing May 1, 1958

T o 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:
F O R R E L E A S E , M O R N IN G
T h u rsd a y, January 23, 1958.

NEW SPAPERS,

TREASURY DEPARTM ENT
W ashington

T h e T reasu ry D epartm en t, b y this p u b lic n otice, invites tenders for $1,700,000,000, or thereabouts, o f 91-d a y T reasu ry
bills, fo r cash and in exch a n ge for T rea su ry bills m aturing January 30, 1958, in the am ou nt o f $1,699,189,000, t o 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
January 30, 1958, and w ill m ature M a y 1, 1958, w hen 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 form 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 va lu e).
T e n d e rs w ill be received at Federal R eserve B anks and B ra n ch es up to the clo s in g hour, on e-th irty o ’ c lo c k p.m ., Eastern
Standard tim e, M o n d a y , January 27, 1958. T en d ers w ill n ot be received at the T reasu ry D epartm en t, W a sh in g ton . E ach
tender m u st be fo r an even m ultiple o f $1,000, and in the ca se o f com p etitive tenders the price offered m u st b e exp ressed 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 urged that tenders be
m ade o n the printed form s and forw a rd ed in the special en velop es w h ich w ill be supplied b y Federal R eserve Banks o r
B ran ches on application th erefor.
O th ers than banking institutions w ill n ot be perm itted to subm it tenders excep t fo r their ow n a ccou nt. T e n d e rs w ill be
received w ith ou t dep osit fro m in corpora ted banks and trust com p a n ies and fro m respon sible and recog n ized dealers in in vest­
m ent securities. T en d ers from oth ers m u st be a ccom p a n ied b y paym ent o f 2 percent o f the fa ce am ou nt 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 a ra n ty o f paym ent b y an in corp ora ted bank o r trust com pan y.
Im m ediately after the closin g h our, tenders w ill be op en ed at the Federal R eserve B anks and B ranches, fo llo w in g w hich
p u b lic ann oun cem ent 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 range o f a ccep ted bids. T h o s e
su b m ittin g tenders w ill be advised o f the a ccep ta n ce or reje ctio n thereof. T h e S ecretary o f the T reasu ry exp ressly reserves
the righ t to accep t o r reject a n y or all tenders, in w h ole or in part, and his action in any such resp ect shall be final. S u b ject
to these reservations, n on com petitive ten ders for $200,000 o r less w ith ou t stated price fro m a n y one bidder w ill be a ccep ted
in full at the a verage price (in th ree decim a ls) o f a ccep ted com p etitiv e bids. Settlem ent for a ccep ted tenders in a ccord a n ce
w ith the bids m ust be m ade or com p leted at the Federal R es e rv e Bank on January 30, 1958, in cash or oth er im m ediately
available funds o r in a like face am ou nt o f T rea su ry bills m aturing January 30, 1958. Cash and exch a n ge tenders w ill
receive equal treatm ent. Cash adjustm ents w ill be m ade for differences betw een the par value o f m aturing bills a ccep ted in
exch a n ge and the issue price o f the new bills.
T h e in com 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 the bills, d oes n ot
have a n y exem ption , as such, and loss fro m the sale or oth er disp osition o f T rea su ry bills d oes n ot have a n y special treat­
m ent, as such, under the Internal R even ue 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 Federal o r State, but are exem pt fro m all taxation n ow or hereafter im p osed on the principal or interest th ereof b y
a n y State, o r any o f the p ossession s o f the U n ited States, o r b y a n y loca l taxing authority. F o r pu rposes o f taxation the
am ou nt o f discou 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 sidered to be interest. U n der
S ection s 4 5 4 (b ) and 1221(5) o f the Internal R even u e C od e o f 1954 the am ou nt o f d iscou n t at w h ich bills issued h ereunder
are so ld is n ot con sid ered t o accru e until such bills are sold, red eem ed or oth erw ise disp osed o f, and such bills are exclu ded
fro m con sideration 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 com p a n ies) issued
hereunder need include in his in com e tax return o n ly the differen ce betw een the price paid for such bills, w hether on origin a l
issue o r o n subsequent purchase, and the am ou nt actu ally receiv ed either u pon sale o r redem ption at m aturity d u rin g the
taxable year fo r w h ich the return is made, as ord in a ry gain or loss.
T re a su ry D epartm en t Circular N o . 418, R evised, and this n otice, p rescrib e the term s o f the T rea su ry bills and g o v e rn
the con dition s o f their issue. C op ies o f the circular m ay be ob ta in ed from a n y Federal R eserve Bank or B ranch.

This Bank will receive tenders up to 1 :30 p.m., Eastern Standard time, Monday, January 27, 1958. 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. Payment for 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 l f r e d H a y e s , President.
Results o f last offering o f Treasury bills (91-day bills dated January 23, 1958, maturing April 24, 1958)
T o ta l applied f o r .......... $2,750,212,000
T o ta l a c c e p t e d .............. $1,700,823,000 (in clu des $355,694,000
entered on a n on com p etitive basis
and a ccep ted in full at the average
price show n b e lo w )
R a n ge o f a ccepted com petitive b id s : (e x ce p tin g on e ten­
der o f $600,000)
E quivalent rate o f discou nt
H i g h ..................... 99.359
app rox. 2.536% per annum
E quivalent rate o f discou n t
L o w ..................... 99.344
a p p rox. 2.595% per annum
E quivalent rate o f discou nt
A v e r a g e ............... 99.346
app rox. 2.587% per annum
(31 percent o f the am ou nt bid fo r at the low
p rice w as a ccep ted )




Federal R eserve
District

Total
A pplied fo r

Total
A ccepted

B oston ..................
N ew Y o r k ...........
Philadelphia ........
C leveland ............
R ich m on d ...........
A tlanta ................
C h ica g o .................
St. L ou is ..............
M in neapolis .......
K ansas C ity ........
D allas ..................
San F r a n cis co ...

5 45,378,000
1,998,445,000
41.399.000
70.419.000
18.726.000
41.147.000
246.378.000
34.028.000
17.064.000
55.854.000
36.158.000
145.216.000

> 34,378,000
1,100,045,000
21.019.000
60.419.000
18.726.000
40.647.000
177.648.000
34.028.000
16.114.000
51.350.000
35.658.000
110.791.000

$2,750,212,000

$1,700,823,000

T o t a l ........................

(o v e r )

TENDER FOR 91 -D A Y TREASURY BILLS
Dated January 30, 1958
To

Maturing May 1, 1958
Dated a t ......................

F ederal 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 o f 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:
COMPETITIVE TENDER

[

D o n ot fill in both Com petitive and
N on com petitive tenders on one fo rm

$ ........................................................ (maturity value),
or any lesser amount that may be awarded.
P r i c e :.................................. per 100.
(P rice m ust be exp ressed with n ot m ore than three
decimal places, f o r exam ple, 99.925)

]

NONCOMPETITIVE TENDER

$ ...................................................... (maturity value).
(N o t to ex ceed $200,000 f o r one bidder through all sou rces)

At the average price of accepted competitive bids.

Subject to allotment, please issue, deliver, and accept payment for the bills as indicated below:
Picces

Denomination

M aturity value

3. H old in safekeeping ( f o r ac­
count o f member bank on ly)

□

4. Allotm ent
attached)

□

10,000

2. Ship to the undersigned

□

5,000

1. D eliver over the counter to the
undersigned

□

1,000

□

5. Special instructions:

100,000
500,000

transfer

(see

Paym ent will be made as fo llo w s :

list

□

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
T reasu ry bills. P ay cash adjust­
ment, if any—
□

(No changes in delivery instructions
will be accepted)

Totals

B y check

□

1,000,000

B y credit to our reserve account

(P aym en t cannot be made through
T reasury 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” _

(Please print)

By .........................
T i t l e ...............................
A d d re s s

.................• ••. B y ------ ------(Official signature(s) required)

T itle

.........................................................................................................

(B anks submitting tenders fo r custom er 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 ten der f o r less than $1,000 w ill be co n sid e re d , and each ten der 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 ot be p erm itted to subm it ten ders e x ce p t f o r their o w n a cco u n t. B ank s
su b m ittin g ten ders f o r c u s to m e r a cco u n t m a y co n so lid a te co m p e titiv e tenders 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 s h o w in g the nam e o f each bidd er, the a m ou n t b id f o r his a ccou n t,
a n d m e th o d o f pa ym en t. 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 r so n m a k in g the 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 the co r p o r a tio n
a u th o rize d t o m a k e th e ten d er, and th e sig n in g o f the ten der b y an officer o f th e co r p o r a tio n w ill be c o n stru e d as a
represen tation 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 sig n 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 co p a rtn e rsh ip , b y
...................................... ............................................................................. . a m em b er 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 fr o m re s p o n ­
sib le a n d re c o g n iz e d dealers in in vestm en t securities. T en d ers fro m oth ers m u st b e 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 c e 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 ccom p a n ied b y an ex p re s s gu a ra n ty
o f p a 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 any resp ect, w hich, 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 disregarded.




(o v e r )


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102