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FED ERAL RESER VE BANK O F N EW YO RK r<C ircular Fiscal Agent of the United States L No. 4 6 0 6 J u n e 5, 1958 Offering o f $1,700,000,000 of 91-Day Treasury Bills Dated June 12, 1958 Maturing September 11, 1958 T o all Incorporated Banks and Trust Companies, and O thers Concerned, in the Second Federal R eserv e D istrict: J 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 , T h u rsd a y, June 5, 1958. TREASU RY DEPARTM ENT W ashington T h e T re a su ry D epartm en t, b y this pu blic n otice, invites tenders for $1,700,000,000, o r thereabouts, o f 91-day T reasu ry bills, fo r cash and in exch a n ge for T rea su ry bills m atu rin g June 12, 1958, in the a m ou n t o f $1,699,839,000, to be issued on a discou n t basis under com p etitive and n on com p etitive bid d in g as h ereinafter provided . T h e bills o f this series w ill be dated June 12, 1958, and w ill m ature S ep tem ber 11, 1958, w h en the face a m ou n t w ill be payable w ith ou t interest. T h e y w ill be issued in bearer fo rm 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 ran ch es up to the clo s in g hour, on e-th irty o ’ c lo c k p.m ., Eastern D a yligh t S a vin g tim e, M on d a y, June 9, 1958. T en d ers w ill n ot be received at th e T rea su ry D epartm en t, W a sh in g ton . E ach tender m u st be fo r an even m u ltiple o f $1,000, and in th e case o f com p etitive ten ders the p rice offered m u st be expressed o n the basis o f 100, w ith n ot m ore than three decim als, e. g., 99.925. F raction s m a y n ot be used. It is u rged that tenders be m ade o n the printed fo rm s and forw a rd ed in the special en velopes w hich w ill b e supplied b y F ed eral R e serv e B anks or B ran ches o n a pp lication therefor. O th ers than banking institutions w ill n ot be perm itted t o subm it tenders ex cep t for their o w n a ccou n t. T e n d e rs w ill be receiv ed w ith ou t dep osit fro m in corp ora ted banks and trust com pa n ies and fro m respon sib le and re co g n iz e d dealers in invest m ent securities. T e n d ers fr o m oth ers m u st be a ccom p a n ied b y paym ent o f 2 p ercen t o f the face a m ou n t o f T rea su ry bills applied for, unless the tenders are a ccom p a n ied b y an exp ress gu aranty o f paym ent b y an in corp ora ted bank o r trust com pan y. Im m ed ia tely after the clo s in g h our, ten ders w ill be op en ed at the Federal R eserve Banks and B ran ches, fo llo w in g w hich pu blic a n n ou n cem en t w ill be m ade b y the T rea su ry D ep a rtm en t o f the a m ou n t and price ran ge o f a ccep ted bids. T h o s e subm itting ten ders w ill be advised o f the a ccep ta n ce o r re je ctio n th ereof. T h e S ecreta ry o f the T rea su ry e x p ressly reserves the righ t to a cce p t o r reject a n y o r a ll tenders, in w h o le o r in part, and his action in a n y such resp ect shall be final. S u b ject to these reservations, n on com petitive tenders fo r $200,000 o r less w ith ou t stated price fro m any on e b idd er w ill be a ccep ted in full at the a vera ge price (in three decim a ls) o f a ccep ted com p etitive bids. Settlem ent fo r a ccep ted ten ders in a ccord a n ce with the bids m u st be m ade o r com p leted at the Federal R eserve B ank o n June 12, 1958, in cash o r o th e r im m ediately available fu n ds o r in a like face am ou nt o f T rea su ry bills m atu rin g June 12, 1958. Cash and ex ch a n g e tenders w ill receive equal treatm ent. Cash adjustm ents w ill be m ade fo r differences betw een the par valu e o f m atu rin g bills a ccep ted in exch a n ge and the issue price o f the n ew bills. T h e in co m 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, does n ot have any e x e m p tion , as such, and loss fr o m the sale or oth er disp osition o f T rea su ry bills does n ot have a n y special treat m en t, as such, under the In tern al R even u e 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 F ed eral o r State, but are exem pt fro m all taxation n o w o r h ereafter im p osed on the principal o r interest th ere o f b y any State, o r a n y o f the possession 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 d iscou n t at w hich T rea su ry bills are o rigin a lly sold b y the U n ited States is con sidered to be interest. U n der S e ctio n s 4 5 4 (b ) and 1221(5) o f the Internal R even u e C od e o f 1954 the a m ou n t o f d iscou n t at w hich bills issued hereunder are so ld is n ot co n sid ered to a ccru e until such bills are sold, red eem ed o r oth erw ise disp osed of, and such bills are exclu ded fro 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 (oth er than life insurance com p a n ies) issued hereunder need in clude in his in com e ta x return o n ly the differen ce betw een the p rice pa id fo r such bills, w h eth er o n origin al issue o r on subsequen t purchase, and th e am ou nt actu ally receiv ed either u pon sale or redem ption at m atu rity du rin g the taxable year fo r w h ich the return is m ade, as ord in a ry gain o r loss. T re a su ry D ep a rtm 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 B a n k o r B ranch. This Bank will receive tenders up to 1 :30 p.m., Eastern Daylight Saving time, Monday, June 9, 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 telegraphy subject 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 offering o f T reasu ry bills (9 1 -d a y bills dated June 5, 1 9 5 8 , m aturing September 4 , 1 9 5 8 ) T o ta l applied fo r ........ $2,415,342,000 T o ta l a ccep ted ............ $1,800,597,000 entered on a and a ccep ted price sh ow n (in clu des $167,283,000 n on com p etitive basis in full at the average b e lo w ) R a n g e o f a ccep ted com p etitive b id s: H i g h ............... . , 99.840 L o w .............. 99.810 A v e r a g e ........ ..... 99.817 E quivalent rate app rox. 0.633% E quivalent rate app rox. 0.752% E quivalent rate a p p rox. 0 .723% o f discou nt per annum o f discou nt p er annum o f discount per annum (33 percent o f the a m ou n t bid for at the low p rice w as a ccep ted ) Federal R eserve D istrict B oston .............................. N ew Y o r k ..................... Philadelphia C leveland ........ R ich m on d ....... A tlanta ........... C h ica go ........... St. L ou is .......... M in n eap olis .... K ansas C ity .... D allas ................ San F ra n cisco T otal ........................ Total A pplied f o r $ Total A ccep ted 35,509,000 1,847,852,000 24.311.000 34.665.000 7,612,000 26.073.000 217.057.000 21.470.000 14.184.000 44.350.000 21.936.000 120.323.000 5 25,509,000 1,311,002,000 9.311.000 30.645.000 7.612.000 26.073.000 180.387.000 21.470.000 14.184.000 39.680.000 21.936.000 112.788.000 $2,415,342,000 $1,800,597,000 ( over) TENDER FOR 91 -DA Y TREASURY BILLS Maturing September 11, 1958 Dated June 12, 1958 Dated a t ...................... To F e d e r a l R e se rv e B a n k o f N e w Y o rk , 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: COMPETITIVE TENDER C Do not fill in both Competitive and | Noncompetitive Noncompetitivetenders tenderson onone oneform form JJ NONCOMPETITIVE TENDER $. . ........................ ............................(maturity value), or any lesser amount that may be awarded. $ ........................ ................................(maturity value). (Not to exceed $200,000 for one bidder through all sources) P r i c e :.................................. per 100. (Price must be expressed with not more than three decimal places, for example, 99.925) 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 □ 500,000 1. Deliver over the counter to the undersigned 2. Ship to the undersigned 3. Hold in safekeeping (for ac count of member bank only) 4. Allotment transfer (see list attached) 5. Special instructions: 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— □ 1,000,000 (N o Totals changes in delivery instructions will be accepted) By check □ By credit to our reserve account (Payment cannot be made through Treasury Tax and Loan Account) 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. Name of subscriber Insert this tender in special envelope marked “ Tender _ for Treasury Bills” _ By Title (Please print) By (Official signature(s) required) .................. T itle ......... Address ............................................................................... (Banks submitting tenders for customer account must indicate name on line below, or attach a list) (Name of customer) (Address) INSTRUCTIONS: 1. No tender for less than $1,000 will be considered, and each tender must be for an even multiple of $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 of 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 of the firm, who should sign in the form “ ........................................................................., a copartnership, by ............................................................................... » a member of 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. 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. 5. If the language of this tender is changed in any respect, which, in the opinion of the Secretary of the Treasury, is material, the tender may be disregarded. ( over)
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