The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
FEDERAL RESERVE BANK OF NEW YORK r Circular No. 4 5 6 9 1 L February 20, 1958 J Fiscal Agent of the United States O ffe rin g o f $ 1 ,8 0 0 ,0 0 0 ,0 0 0 o f 9 1 -D a y T reasu ry B ills Dated February 27, 1958 Maturing M ay 29, 1958 T o all Incorporated B anks and Trust Com panies, and O thers Concerned, in the Second Federal R eserv e 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 ay, February 20, 1958. TREASURY DEPARTM ENT W ash ington T h e T reasu ry D epartm ent, by this pu blic notice, invites tenders fo r $1,800,000,000, or thereabouts, o f 91-day T reasu ry bills, fo r cash and in exch a n ge fo r T reasu ry bills m aturing February 27, 1958, in the am ount o f $1,800,644,000, to be issued on a discou n t basis under com petitive and noncom petitive bid d in g as h ereinafter provided . T h e bills o f this series w ill be dated F ebru ary 27, 1958, and w ill mature M a y 29, 1958, w hen the fa ce am ount w ill be payable w ithout interest. T h ey w ill be issued in bearer form on ly, and in denom inations o f $1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,000 (m atu rity va lu e). T en ders w ill be received at F ed eral R eserve Banks and B ran ches up to the clo s in g hour, on e-thirty o ’c lo ck p.m., Eastern Standard time, M on d a y, Febru ary 24, 1958. T en ders w ill not be received at the T reasu ry Departm ent, W a sh in gton . E ach tender m ust be fo r an even m ultiple o f $1,000, and in the case o f com petitive tenders the p rice offered m ust be exp ressed on the basis o f 100, w ith n ot m ore than three decim als, e. g., 99.925. F raction s m ay not be used. It is urged that tenders be made on the printed form s and forw a rd ed in the special envelopes w hich w ill be supplied by Federal R eserve Banks or B ran ches o n a pp lication th erefor. O thers than banking institutions w ill not be perm itted to subm it tenders excep t fo r their ow n account. T en ders w ill be received w ith ou t deposit from in corporated banks and trust com panies and from responsible and recogn ized dealers in in vestm ent securities. T en ders from others must be accom panied by paym ent o f 2 percent o f the face am ount o f T reasu ry bills applied fo r, unless the tenders are accom pa n ied by an express guaranty o f paym ent b y an in corporated bank or trust com pany. Im m ediately a fter the clo s in g hour, tenders w ill be opened at the Federal R eserve Banks and B ranches, fo llo w in g w hich pu blic announcem ent w ill be made by the T reasu ry D epartm ent o f the am ount and price range o f a ccepted b ids. T h ose subm itting tenders w ill be advised o f the acceptance o r rejection th ereof. T h e S ecreta ry o f the T reasu ry exp ressly reserves the righ t to accep t o r reject any or all tenders, in w h ole or in part, and his action in any such respect shall be final. S u b ject to these reservations, noncom petitive tenders fo r $200,000 or less w ithout stated price from any one b idder w ill be accepted in fu ll at the a vera ge price (in three decim a ls) o f accepted com petitive bids. Settlem ent f o r a ccepted tenders in a ccord a n ce w ith the bids must be m ade or com pleted at the Federal R eserve Bank on F ebru ary 27, 1958, in cash or oth er im m ediately available funds o r in a like fa ce am ount o f T reasu ry bills m aturing Febru ary 27, 1958. Cash and exch a n ge tenders w ill receive equal treatment. Cash adjustm ents w ill be made for differences betw een the par value o f m aturing bills a ccepted in exch a n ge and the issue price o f the new bills. T h e in com e derived from T reasu ry b ills, w hether interest or ga in from the sa le o r oth er disp osition o f the b ills, d oes not have any exem ption, as such, and loss fro m the sale or oth er d isp osition o f T reasu ry bills does n ot have any special treat ment, as such, under the Internal Revenue C od e o f 1954. T h e bills are subject to estate, inheritance, g ift o r oth er e x cis e taxes, w hether F ed eral o r State, but are exem pt from all taxation n ow o r hereafter im posed on the principal o r interest th ereof by any State, o r any o f the possessions o f the U n ited States, o r by any lo ca l taxing authority. F o r purposes o f ta xation the am ount o f discou nt at w h ich T reasu ry bills are o rigin a lly sold by the U nited States is con sid ered to be interest. U nder S ections 4 5 4(b) and 1221(5) o f the Internal Revenue C ode o f 1954 the am ount o f discou n t at w hich bills issued hereunder are so ld is not con sidered to a ccru e until such bills are sold, redeem ed or oth erw ise disposed of, and such bills are exclu d ed from con sideration as ca pita l assets. A cco rd in g ly , the ow n er o f T reasu ry bills (oth er than life insurance com p a n ies) issued hereunder need include in his incom e ta x return on ly the difference betw een the price paid fo r such b ills, whether on origin a l issue o r on subsequent purchase, and the am ount actu ally received either upon sale or redem ption at m aturity d u rin g the ta x ab le year fo r w h ich the return is m ade, as ord in a ry ga in or loss. T reasu ry D epartm ent C ircu lar N o. 418, R evised, and this notice, prescribe the terms o f the T reasu ry bills and govern the con dition s o f their issue. Copies o f the circu la r m ay be obtained from any Federal R eserve Bank or B ranch. This Bank will receive tenders up t o 1 :30 p.m., E a s t e r n S t a n d a r d time, Monday, February 24, 1958, at the Securi ties Department o f its Head Office and a t 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 j or 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 of last offering of Treasury bills (91-day bills dated February 20, 1958, maturing May 22, 1958) T o ta l applied f o r ........ $2,619,035,000 T o ta l a c c e p t e d .............$1,800,871,000 (in clu des $302,315,000 entered on a n on com petitive basis and accepted in full at the a ver age price show n b elow ) R ange o f accepted com petitive b id s : H i g h ....................... 99.582 E quivalent rate o f discount approx. 1.654% per annum L o w ......................... 99.560 Equivalent rate o f discount app rox. 1.741% per annum A v e ra g e ................. 99.562 Equivalent rate o f discount approx. 1.731% per annum (46 percent o f the am ount bid for at the low price w as accep ted) Federal R eserve D istrict B oston ......................... . . N ew Y o rk ................. P h iladelphia ............. C leveland ................... R ich m on d ................... A tlanta ....................... C h icago ....................... St. L o u i s ..................... M in neapolis ............... K ansas C ity ............. D allas ......................... San F r a n cis co ......... T o t a i ................................ Total A pplied for $ 48,401,000 1,845,104,000 31,430,000 63,084,000 18,109,000 47,883,000 254,238,000 24,608,000 13,631,000 39,944,000 44,365,000 188,238,000 $2,619,035,000 Total A ccepted $ 34,876,000 1,199,317,000 21,202,000 56,733,000 17,009,000 36,045,000 167,206,000 23,974,000 13,131,000 39,701,000 21,993,000 169,684,000 $1,800,871,000 (o v No. T E N D E R FOR 91-D A Y T R E A S U R Y BILLS Dated February 27, 1958 To F ederal R ese rv e Bank of N ew Y Maturing May 29, 1958 Dated a t ...................................................... .......................................................... 19 ork, 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: COMPETITIVE TENDER [ D o n ot fill in both Com petitive and N on com petitive tenders on one form $ ........................................................ (maturity value), or any lesser amount that may be awarded. P r ic e :.................................. per 100. (P r ic e m ust b e exp ressed with not more 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: Pieccs Denomination $ M aturity value 1,000 5,000 10,000 □ 1. D eliver over the counter to the undersigned □ 2. □ 3. H old in safekeeping ( f o r a c count o f member bank on ly) □ 4. Allotm ent attached) □ 5. Special instructions: 100,000 500,000 Ship to the undersigned transfer (see list 1,000,000 (N o T o ta l' changes in delivery instructions will be accepted) 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 T reasu ry bills. P a y cash adjust ment, if any— □ B y check □ B y crcdit to our reserve account (P aym en t cannot be made through T reasury T a x and Loan A cco u 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 sif?nature(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 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 ered , and each ten d er m u st be fo r an even 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 p erm itted t o 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 c u sto m e r a cco u n t m a y co n so lid a te com p etitiv e tenders at the same price and m ay co n so lid a te n o n co m p e titiv e ten 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 bid fo r his a cco u n t, and m e th o d o f pa ym en t. F o r m s fo r this p u rp ose w ill be furn ished on request. 3. I f th e 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 officer o f the co rp o ra tio n a u th o rize d to m a ke th e ten der, and the sig n in g o f the 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 him that he has been s o a u th orized . I f the ten der is m ade b y a p a rtn ersh 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 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 be 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 from re s p o n sib le and re c o g n iz e d dealers in in vestm ent securities. T e n d e rs 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 the 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 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 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 op in io n o f the S ecreta ry o f the T re a su ry , is m aterial, the ten der m a y be disreg arded. ( over)
@FedFRASER