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F E D E R A L R E S E R V E B A N K OF N E W Y O R K r «C ircular N o . 4 6 0 3 Fiscal Agent of the United States L M a y 2 2 .1 9 5 8 Offering o f $1,800,000,000 o f 91-Day Treasury Bills Dated May 29, 1958 Maturing August 28, 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: TREASU RY DEPARTM EN T W a s h in g to n 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 a y, M a y 22, 1958. T h e T re a su ry D epa rtm en t, b y this p u b lic n otice, invites tenders fo r $1,800,000,000, o r th ereabouts, o f 91-day T rea su ry bills, fo r cash and in e x ch a n g e fo r T rea su ry bills m atu rin g M a y 29, 1958, in the a m ou n t o f $1,802,235,000, to be issued on a d isco u n t basis u nder com p etitive and n o n co m p e titiv e b id d in g as h erein a fter p rov id ed . T h e bills o f this series w ill b e dated M a y 29, 1958, and w ill m ature A u g u st 28, 1958, w h en the face a m ou n t w ill be p ayable w ith ou t interest. T h e y w ill be issued in bearer fo r m o n 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 re ce iv e d at F ed era l R e s e rv e B a n k s and B ra n ch es up t o th e c lo s in g h ou r, on e -th irty o ’ c lo c k p.m ., E astern D a y lig h t S a v in g tim e, M on d a y , M a y 26, 1958. T e n d e rs w ill n ot be receiv ed at the T rea su ry D epa rtm en t, W a s h in g to n . E ach ten der m u st be fo r an even m u ltiple o f $1,000, a n d in th e ca se o f com p etitiv e ten ders th e p rice o ffe re d m u st be ex p re s se d on th e basis o f 100, w ith n ot m o re than th ree decim a ls, e.g., 99.925. F raction s m a y n ot be used. I t is u rg ed th at ten ders be m a d e o n th e printed fo rm s and fo rw a rd e d in the special e n v e lo p e s w h ich w ill be sup plied b y F ed eral R e serv e B an k s or B ran ch es o n a pp lica tion th erefor. 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 ce p t fo r th eir o w n a ccou n t. T en d ers w ill be receiv ed w ith ou t dep osit fr o m in co rp o ra te d banks a n d trust com p a n ies and fr o m resp on sib le and re co g n iz e d dealers in invest m en t securities. T e n d e rs fr o m oth ers m u st b e a ccom p a n ied b y pa ym en t o f 2 p ercen t o f the face a m ou n t o f T rea su ry bills a pp lied fo r , unless th e tenders are a ccom p a n ied b y an ex p ress gu a ra n ty 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 after th e c lo s in g h ou r, ten ders w ill be o p en ed at the F ed eral R e serv e B anks and B ra n ch es, fo llo w in g w hich p u b lic a n n ou n cem en t w ill b e 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 and p rice ra n ge o f a cce p te d b ids. T h o s e su b m ittin g ten ders w ill b e a d vised o f the a ccep ta n ce o r re je ctio n th ereof. T h e S ecreta ry o f th e T r e a s u ry ex p re s sly reserves the righ t to a cce p t o r re je ct a n y o r all ten ders, in w h o le o r 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 reserva tion s, n on com p etitiv e ten ders fo r $200,000 o r less w ith ou t stated p rice fr o m a n y on e b idd er w ill be a cce p te d in full at th e a vera ge price (in three decim a ls) o f a ccep ted com p etitiv e bids. S ettlem ent fo r a ccep ted ten ders in a ccord a n ce w ith the bids m ust be m ade o r c o m p le te d at the F ed eral R es e rv e B ank on M a y 29, 1958, in cash o r oth er im m ediately available fu n d s o r in a like face a m ou n t o f T rea su ry bills m aturing M a y 29, 1958. Cash and ex ch a n g e ten ders w ill re ce iv e equal treatm en t. Cash a d ju stm en ts w ill b e m a d e fo r d ifferen ces b etw een th e pa r valu e o f m a tu rin g bills a ccep te d in e x ch a n g e a n d th e issue p rice o f the n ew bills. T h e in co m e derived fro m T rea su ry bills, w h eth er in terest or gain fr o m the sale or oth er d isp osition o f th e b ills, d oes n o t have a n y e x e m p tion , 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 a n y special treat m en t, 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 or oth er excise taxes, w h eth er F ed eral o r State, b u t are exem p t fr o m all ta xation n o w o r hereafter im p osed on th e principal o r interest th ereo f by any State, o r a n y o f th e p ossession s o f the U n ited States, or b y a n y 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 o rig in a lly sold b y the U n ited States is con sid ered to be interest. U n d er S ection s 4 5 4 (b ) and 1221(5) o f the Internal R ev en u e C o d e o f 1954 th e a m ou n t o f d iscou n t at w h ich bills issued hereunder are so ld is n o t co n sid ered t o a ccru e u ntil su ch bills are sold, red eem ed o r 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 o w n e r o f T rea su ry bills (o th e r than life in su rance co m p a n ie s ) issued h ereun der need in clu d e in his in com e ta x return o n ly th e differen ce betw een the price paid fo r such bills, w h eth er on original issue o r o n subsequent pu rch ase, and th e a m ou n t a ctu a lly receiv ed either u p on sale o r red em p tion at m atu rity d u rin g the taxable yea r fo r w h ich the return is m ade, as ord in a ry gain o r loss. T r e a s u ry D epartm en t C ircu la r N o . 418, R evised , and this n otice, prescrib e th e term s o f th e 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 th e circu la r m a y be ob ta in ed fr o m any F ed eral R e serv e B a n k o r B ran ch. This Bank will receive tenders up to 1 :30 p.m., Eastern Daylight Saving time, Monday, May 26, 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 l f r e d H a y e s , President. Results o f last offe rin g o f T re a s u ry bills ( 9 1 -d a y bills d a ted M ay 2 2 , 1 958, m a tu rin g A u g u s t 2 1 , 1 9 5 8 ) T ota l applied fo r . . .$2,503,958,000 T o ta l a cce p te d ......... $1,800,311,000 (in clu d es $244,403,000 entered on a n on com p etitiv e basis and a ccep ted in fu ll at the average price sh ow n b e lo w ) R a n g e o f a ccep ted co m p e titiv e b id s: H ig h .................. 99.770 Low .................. 99.761 A v e ra g e ........... 99.765 E q u iva len t rate a p p rox . 0 .910% E q u iva len t rate a p p rox . 0 .945% E q u iva len t rate a p p rox . 0.931% o f discou n t p e r annum o f discou n t p er annum o f discou nt per annum (31 per cen t o f the a m ou n t bid fo r at the low p rice w as a ccep ted ) Total Applied for Federal Reserve District B o s to n ........................ N e w Y o r k .................. Philadelphia ............. C levelan d .................. R ich m o n d .................. C h ica g o ...................... St. L ou is .................... M in neap olis ............. K a n sa s C ity ............. D allas ......................... San F r a n cis co ......... T ota l ......... $ 34,266,000 1,783,654,000 46,695,000 47,160,000 12,827,000 35,049,000 259,544,000 24,548,000 27,347,000 46,684,000 30,983,000 155,201,000 $2,503,958,000 Total Accepted $ 18,209,000 1,235,885,000 20,148,000 41,427,000 12,827,000 31,969,000 197,444,000 19,548,000 27,347,000 36,068,000 18,688,000 140,751,000 $1,800,311,000 ( over) No. TENDER FOR 91-DAY TREASURY BILLS Dated May 29, 1958 Maturing August 28, 1958 To F ederal R eserve B a n k of N ew Y ork Dated a t ................................ , 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: C COMPETITIVE TENDER D o not fill in both Com petitive and N oncom petitive tenders on one fo rm $ ........................................................(maturity value), or any lesser amount that may be awarded. P r i c e :.................................. per 100. ( P r ice m ust be expressed w ith not m ore than three decim al places, f o r exam ple, 99.925) J 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: Pieces Denomination $ M aturity value 1,000 5,000 10,000 □ 1. D eliver over the counter to the undersigned □ 2. Ship to the undersigned □ 3. H old in safekeeping ( f o r a c count o f member bank on ly) □ 4. Allotment attached) □ 5. Special instructions: 100,000 500,000 transfer (see list , 1 000,000 (N o Totals changes in delivery instructions will be accepted) Paym ent w ill 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 Treasu ry bills. P ay cash adjust ment, i f any— □ B y check □ B y credit to our reserve account (P aym en t 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 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 marked “ Tender _ for Treasury Bills” _ (Please print) By ................................................................................. B y ................ (Official signature(s) required) T i t l e ............................................................................... T i t l e ............ A d d re s s ........................................................................................................ (B anks submitting tenders f o 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 le s s than $1,000 w ill be co n sid ered , and each ten d er m u st b e f o 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 perm itted t o subm it ten ders e x ce p t fo r their o w n a ccou n t. B anks su b m ittin g ten ders f o r cu s to m e r a cco u n t m ay co n so lid a te com p etitive tenders at the sam e 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, th e a m ou n t b id fo r his a ccou n t, and m e th o d o f p a y m e n t F o r m s f o r this p u rp ose w ill b e 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 officer o f th e 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 co n stru e d as a representation b y him that he has been s o a u th orized . I f the ten der is m ade b y a partnersh ip, it s h 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 14............................................................................................... , a cop a rtn ersh ip , b y ................................................................................................................... . a m em b er o f th e firm .” 4. T e n d e rs w ill be receiv ed w ith ou t d ep osit fro m in co rp o ra te d banks a n d trust co m p a n ie s and fro m re sp o n sible and re co g n iz e d dealers in in vestm en t securities. T en d ers fro m o th 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 ce a m ou n t o f T r e a s u ry bills a pp lied fo r , unless th e ten ders are a ccom p a n ied b y an ex p re s s gu a ra n ty o f paym ent 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 ed in any resp ect, w hich, in th e o p 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)
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