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FEDERAL RESERVE BANK OF NEW YORK [ C ir cMu laa yr Fiscal Agent of the United States N o. 4 6 0 4 28, 1958 Offering o f $1,800,000,000 of 91-Day Treasury Bills Dated June 5, 1958 Maturing September 4, 1958 T o all In corporated 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 N E W S P A P E R S , W ed n esd a y, M a y 28, 1958. TREASU RY DEPARTM ENT W ash ington T h e T reasu ry Departm 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 ange fo r T reasu ry bills m aturing June 5, 1958, in the am ount o f $1,800,147,000, 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 June 5, 1958, and w ill mature Septem ber 4, 1958, when the face am ount w ill be payable w ithout interest. Th ey w ill be issued in bearer form only, and in denom inations o f $1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,000 (m aturity va lu e). T en ders w ill be received at Federal R eserve Banks and B ran ches up to the closin g hour, on e-thirty o ’c lo ck p.m., Eastern D a yligh t S a vin g time, M on day, June 2, 1958. T en ders w ill not be received at the T reasu ry D epartm ent, W ash ington. E ach tender must be fo r an even m ultiple o f $1,000, and in the case o f com petitive tenders the price offered must be expressed 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 F ed eral R eserve Banks or Branches on application therefor. O thers than banking institutions w ill n ot be perm itted to subm it tenders excep t fo r their ow n a ccou nt. Tenders w ill be received w ith ou t deposit from in corporated banks and trust com panies and fro m respon sible and recogn ized dealers in in vestm ent securities. T en ders from others m ust be accom panied by paym ent o f 2 percent o f the fa ce am ount o f T reasu ry bills applied fo r, unless the tenders are accom panied 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 public announcem ent w ill be made by the T reasu ry D epartm ent o f the am ount and price range o f accepted bids. T h o se subm itting tenders w ill be advised o f the acceptance or rejection thereof. T h e Secretary o f the T rea su ry exp ressly reserves the righ t to accept o r reject any or all tenders, in w hole or in part, and his action in any such respect shall be final. S u bject to these reservations, noncom petitive tenders fo r $200,000 or less w ith ou t stated price from any one bidder w ill be accepted in fu ll at the a verage price (in three decim als) o f accepted com petitive bids. Settlem ent for accepted tenders in a ccord a n ce w ith the bids m ust be m ade or com pleted at the Federal Reserve B ank on June 5, 1958, in cash or other im m ediately available funds o r in a like face am ount o f T reasu ry bills m aturing June 5, 1958. Cash and exch ange tenders w ill receive equal treatment. Cash adjustm ents w ill be m ade for differences betw een the par value o f m aturing bills accepted in exch ange and the issue price o f the new bills. T h e in com e derived from T reasu ry bills, w hether interest or gain from the sale or oth er disp osition o f the bills, does not have any exem ption, as such, and loss fro m the sale or oth er disp osition o f T reasu ry bills does not have any special treat ment, as such, under the Internal Revenue C ode o f 1954. T h e bills are subject to estate, inheritance, g ift or other e x cis e taxes, whether F ed eral o r State, but are exem pt from all taxation n ow or hereafter im posed on the principal or 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 taxin g authority. F o r purposes o f taxation the am ount o f discou nt at w hich T reasu ry bills are origin a lly sold by the U nited States is con sidered to be interest. U nder Sections 4 5 4(b) and 1221(5) o f the Internal Revenue C ode o f 1954 the am ount o f discou nt at w hich bills issued hereunder are sold is not con sidered to accrue until such bills are sold, redeem ed or otherw ise disposed of, and such bills are exclu ded from con sideration as capital assets. A cco rd in g ly , the ow ner o f T reasu ry bills (oth er than life insurance com pan ies) issued hereunder need include in his incom e ta x return o n ly the differen ce between the price paid fo r such bills, w hether on origin al issue o r on subsequent purchase, and the am ount actually received either upon sale or redem ption at m aturity du rin g the taxable year fo r w h ich the return is made, as ord in a ry gain o r loss. T reasu ry Departm ent C ircu la r N o. 418, R evised, and this notice, prescribe the terms o f the T reasu ry bills and govern the con ditions o f their issue. Copies o f the circu la r m ay be obtained from any F ed eral R eserve Bank or Branch. This Bank will receive tenders up to 1 :30 p.m., Eastern Daylight Saving time, Monday, June 2, 1958, at the Secur ities 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 tele graph, 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 imme diately 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 May 29, 1958, maturing August 28, 1958) T ota l applied f o r .........$2,383,446,000 T o ta l a c c e p t e d .............$1,800,025,000 (in clu des $190,410,000 entered on a noncom petitive basis and accepted in fu ll at the a ver a ge price shown b elow ) Range o f a cccpted com petitive b id s : H i g h ....................... 99.852 E quivalent rate o f discount app rox. 0.585% per annum L o w ......................... 99.830 E quivalent rate o f discount approx. 0.673% per annum A v e r a g e ................. 99.840 Equivalent rate o f discou nt approx. 0.635% per annum (43 percent o f the am ount bid fo r at the low price was accepted) Federal R eserve D istrict Total A pplied fo r .. $ .. $2,383,446,000 N ew Y o r k ................. P h iladelphia ............. Cleveland ................... R ich m on d ................... C h ica go ....................... St. L ou is ................... M in neapolis ............... K ansas C i t y ............... D allas ......................... San F r a n c i s c o ........... T otal ........................ 27,967,000 1,724,097,000 25,325,000 35,839,000 8,365,000 26,453,000 250,740,000 21,703,000 14,520,000 43,399,000 25,275,000 179,763,000 Total A ccepted $ 17,967,000 1,208,677,000 10,325,000 30,839,000 8,365,000 26,282,000 224,740,000 16,703,000 14,420,000 37,669,000 24,275,000 179,763,000 $1,800,025,000 ( over) No. TENDER FOR 91-DAY TREASURY BILLS Dated June 5, 1958 To Maturing September 4, 1958 Dated at F ederal R eserve B a n k of N e w Y o r k , Fiscal Agent o f the United States. 19. . 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 n ot fill in both Com petitive and N Non oncom competitive petitive tenders tenders on on one one fo form rm $ ........................................................ (maturity value), or any lesser amount that may be awarded. P r i c e :.......... ........................per 100. (P r ic e m ust be exp ressed with not m ore than three decimal 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. A llotm ent attached) □ 5. Special instructions: 100,000 500,000 transfer (see list , 1 000,000 (N o T otal s- changes in delivery instructions will be accepted) Payment w ill be made as fo llo w s : □ B y charge to our reserve account □ B y cash or other immediately avail able funds □ B y surrender o f $ ........................... (m aturity value) o f maturing Treasu ry bills. P ay cash adjust ment, if any— □ B y check □ B y credit 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” _ (Please print) By ............................................... ............. . . . . , B y . . . . . . . . . (Official signature(s) required) T i t l e .............................................................................., T itle A d d re s s ........................................................................................................ (B anks submitting tenders fo r 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 ten der fo r less than $1,000 w ill be co n sid ered , and each ten der m u st be fo r an even m u ltiple 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 to subm it ten ders e x ce p t f o r their o w n a cco u n t. B anks su b m ittin g ten ders fo 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 same price and m a y 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 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 f o r this p u rp ose w ill be fu rn ish ed on request. 3. I f th e p e r so n m a k in g the ten der is a co rp o ra tio n , the ten der sh ou ld be sign ed b y an officer o f the co r p o r a tio n a u th o rize d to m a k e th e ten d er, a n d th e sig n in g o f th e ten der b y an officer o f the 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 au 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 s h o u ld sign in the fo r m “ ................................................................................................, a cop a rtn ersh ip , b y ...................................................................................................................., a m e m b e r o f the firm .” 4. T e n d e r s w ill be receiv ed w ith ou t d ep osit fr o m in co rp o ra te d banks and trust co m p a n ie s and fro m re s p o n sible and re c o g n iz e d dealers in in vestm en t securities. T en d ers 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 th e 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 th e la n g u a ge o f this ten der is ch a n g e d in a n y 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, the ten d er m a y be disregarded. ( over)
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