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FEDERAL RESERVE BANK OF NEW YORK Fiscal Agent of the United States r C ir c u la r N o. 4 5 7 9 T L M a r c h 13, 1958 J Offering o f $1,700,000,000 o f 91-Day Treasury Bills Dated March 20, 1958 Maturing June 19, 1958 To all Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal Reserve District: Following is the text of a notice published today: FOR RELEASE, MORNING NEW SPAPERS, Thursday, March 13, 1958. TREASU RY DEPARTMENT Washington The Treasury Department, by this public notice, invites tenders for $1,700,000,000, or thereabouts, o f 91-day Treasury bills, for cash and in exchange for Treasury bills maturing March 20, 1958, in the amount o f $1,700,115,000, to be issued on a discount ba>is under competitive and noncompetitive bidding as hereinaiter provided. The bills of this series will be dated March 20, 1958, and will mature June 19, 1958, when the face amount will be payable without interest. They will be issued in bearer form only, and in denominations o f $1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,000 (maturity value). Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty o'clock p.m., Eastern Standard time, Monday, March 17, 1958. Tenders will not be received at the Treasury Department, Washington. Each tender must be for an even multiple of $1,000, and in the case of competitive tenders the price offered must be expressed on the basis of 100, with not more than three decimals, e.g., 99.925. Fractions may not be used. It is urged that tenders be made on the printed forms and forwarded in the special envelopes which will be supplied by Federal Reserve Banks or Branches on application therefor. Others than banking institutions will not be permitted to submit tenders except for their own account. Tenders will be received without deposit from incorporated banks and trust companies and from responsible and recognized dealers in in vestment securities. Tenders from others must be accompanied by payment of 2 percent of the face amount of Treasury bills applied for, unless the tenders are accompanied by an express guaranty of payment by an incorporated bank or trust company. Immediately after the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, following which public announcement will be made by the Treasury Department of the amount and price range of accepted bids. Those submitting tenders will be advised of the acceptance or rejection thereof. The Secretary of the Treasury expressly reserves the right to accept or reject any or all tenders, in whole or in part, and his action in any such respect shall be final. Subject to these reservations, noncompetitive tenders for $200,000 or less without stated price from any one bidder will be accepted in full at the average price (in three decimals) of accepted competitive bids. Settlement for acceptcd tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on March 20, 1958, in cash or other immediately available funds or in a like face amount of Treasury bills maturing March 20, 1958. Cash and exchange tenders will receive equal treatment. Cash adjustments will be made for differences between the par value of maturing bills accepted in exchange and the issue price of the new bills. The income derived from Treasury bills, whether interest or gain from the sale or other disposition of the bills, does not have any exemption, as such, and loss from the sale or other disposition of Treasury bills does not have any special treat ment, as such, under the Internal Revenue Code of 1954. The bills are subject to estate, inheritance, gift or other excise taxes, whether Federal or State, but are exempt from all taxation now or hereafter imposed on the principal or interest thereof by any State, or any of the possessions of the United States, or by any local taxing authority. For purposes o f taxation the amount of discount at which Treasury bills are originally sold by the United States is considered to be interest. Under Sections 454(b) and 1221(5) of the Internal Revenue Code of 1954 the amount of discount at which bills issued hereunder are sold is not considered to accrue until such bills are sold, redeemed or otherwise disposed of, and such bills are excluded from consideration as capital assets. Accordingly, the owner of Treasury bills (other than life insurance companies) issued hereunder need include in his income tax return only the difference between the price paid for such bills, whether on original issue or on subsequent purchase, and the amount actually received either upon sale or redemption at maturity during the taxable year for which the return is made, as ordinary gain or loss. Treasury Department Circular No. 418, Revised, and this notice, prescribe the terms of the Treasury bills and govern the conditions of their issue. Copies of the circular may be obtained from any Federal Reserve Bank or Branch. This Bank will receive tenders up to 1 :30 p.m., Eastern Standard time, Monday, March 17, 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 of last offering o f Treasury bills (91-day bills dated March 13, 1958, maturing June 12, 1958) Total applied for....... $2,436,867,000 Total accepted........... $1,700,377,000 (includes $312,155,000 entered on a noncompetitive basis and accepted in full at the aver age price shown below) Range of accepted competitive bids: (excepting one tender of $100,000) H ig h .................... 99.660 Equivalent rate of discount approx. 1.345% per annum Low ...................... 99.609 Equivalent rate of discount approx. 1.547% per annum Average.............. 99.613 Equivalent rate o f discount approx. 1.532% per annum (3 percent of the amount bid for at the low price was accepted) Federal Reserve District Total Applied for .. $ .. $2,436,867,000 New York ............... Philadelphia ........... Cleveland ................ Richmond ................ Atlanta .................... Chicago .................... St. L o u is.................. Minneapolis ............. Kansas C it y ............. Dallas ...................... San Francisco ....... T o t a l ........................ 49260,000 1,689.294,000 35.050.000 55,979,000 17,562.000 58,516.000 237,529,000 30,740,000 15,459,000 71,022,000 30,293.000 146.163.000 Total Accepted $ 34,260,000 1,078,254,000 15,050,000 50,329,000 17,562,000 56,746,000 194,409,000 30,740,000 15,459,000 64,972,000 27,353,000 115,243,000 $1,700,377,000 (o v e r) No. TENDER FOR 91-DAY TREASURY BILLS Dated March 20, 1958 To F ed eral R eserve B a n k o f N e w Maturing June 19, 1958 Dated at 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 Do not fill in both Competitive and Noncompetitive tenders on one form $ ........................................................ (maturity value), or any lesser amount that may be awarded. Price: .................................. per 100. (Price must be expressed with not more than three decimal places, fo r example, 99.925) j J NONCOMPETITIVE TENDER ........ .................................... (maturity $ ...................... value). (Not to exceed $200J)00 fo r one bidder through all sources) 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 10,000 100,000 □ □ □ undersigned 2. Ship to the undersigned 3. Hold in safekeeping (fo r ac count of member bank only) □ 4. Allotment transfer (see list C □ 500,000 1. Deliver over tlic counter to the attached) 5. Special instructions: 1,000,000 (No changes in delivery instructions will be accepted) Totals Payment will be made as follows: □ By charge to our reserve account □ By cash or other immediately avail able funds □ By surrender of $ ...................... (maturity value) of maturing Treasury bills. Pay cash adjust ment, if any— □ By check □ By credit to our reserve account (Paym ent cannot be made 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 of in the manner indicated in item 3 above are solely owned by the undersigned. Name of subscriber ......... Insert this tender in special envelope marked “ Tender _ for Treasury Bills” _ (P le a s e prin t) By ........................................ ............................, B y ..................... (Official signature(s) required) T it le ................................................................... . Title Address .......................................................................................... (Banks submitting tenders for 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 tender for less than $1,000 will be considered, and each tender must be for an even multiple o f $1,000 (maturity value). 2. Others than banking institutions will not be permitted to submit tenders except for their own account. Banks submitting tenders for customer account may consolidate competitive tenders at the same price and may consolidate noncompetitive tenders, provided a list is attached showing the name of each bidder, the amount bid for his account, and method of payment. Forms for this purpose will be furnished on request. 3. If the person making the tender is a corporation, the tender should be signed by an officer o f the corporation authorized to make the tender, and the signing of the tender by an officer of the corporation will be construed as a representation by him that he has been so authorized. If the tender is made by a partnership, it should be signed by a member o f the firm, who should sign in the form “ .................................................................................. , a copartnership, by .................................................................................................... . a member o f the firm.” 4. Tenders will be received without deposit from incorporated banks and trust companies and from respon sible and recognized dealers in investment securities, 'lenders from others must be accompanied by payment of 2 percent of the face amount of Treasury bills applied for, unless the tenders are accompanied by an express guaranty o f payment by an incorporated bank or trust company. 5. If the language o f this tender is changed in any respect, which, in the opinion o f the Secretary of the Treasury, is material, the tender may be disregarded. ( ovek)
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