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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 )