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FED ERAL RESER VE BANK O F NEW YO R K [ Cirju n e 19 ° m ^ 1 3 ] F is c a l A g e n t o f t h e U n it e d S t a te s Offering o f $1,700,000,000 o f 91-Day Treasury Bills Dated June 26, 1958 Maturing September 25, 1958 T o all Incorporated Banks and Trust Companies, and O thers Concerned, in the Second Federal R eserv e D istrict: F o l l o w i n g is th e t e x t o f a n o t ic e p u b lis h e d t o d a y : 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 19, 1958. TREASURY DEPARTM ENT W ashington T h e T re a su ry D epartm en t, b y this p u b lic notice, invites tenders f o r $1,700,000,000, o r thereabouts, o f 91-day T rea su ry bills, fo r cash and in ex ch a n g e fo r T rea su ry bills m aturing June 26, 1958, in the a m ou n t o f $1,700,801,000, to b e issued on a d iscou n t basis under com p etitive and n on com p etitive b id d in g as h ereinafter provid ed . T h e bills o f this series w ill be dated June 26, 1958, and w ill m ature Sep tem ber 25, 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 ation 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 receiv ed at F ed eral R eserve B anks and B ran ches up to the clo s in g hour, on e-th irty o ’ c lo ck p.m ., Eastern D a yligh t Savin g tim e, M on d a y , June 23, 1958. T e n d e rs w ill n ot be received at the T rea su ry D epartm en t, W a s h in g to n . E ach ten der m u st be fo r an even m ultiple o f $1,000, and in the case o f com p etitive tenders the price offered m u st be exp ressed on the basis o f 100, w ith n ot m o re than three decim als, e. g., 99.925. F ra ction s m a y n ot be used. It is u rged that ten ders be m ade on the printed fo rm s and forw a rd ed in the special en velop es w h ich w ill be 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 b ankin g institutions w ill n ot be perm itted to su b m it tenders e x cep t fo r their ow n a ccou nt. T en d ers w ill be received w ith ou t dep osit fro m in corp ora ted banks and trust com panies and fro m respon sib le and recog n ized dealers in in vest m en t securities. T e n d ers fro m others m u st be a ccom p a n ied b y p a y m en t 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 ex p ress gu a ra n ty o f paym ent b y an in corp ora ted bank o r trust com p a n y . Im m edia tely a fter the clo s in g h our, tenders w ill be o p en ed at th e Federal R eserve Banks and B ranches, fo llo w in g w hich p u b lic 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 am ou nt and price ran ge o f a ccep ted bids. T h o s e subm itting tenders w ill be advised o f the a ccep ta n ce or rejection th ereof. T h e S ecretary o f the T rea su ry ex p ressly reserves the right to accep t o r re je ct any or all tenders, in w h ole o r in part, and his a ction in a n y such resp ect shall be final. S u b ject to these reservations, n on com p etitiv e tenders f o r $200,000 or less w ith ou t stated price fro m a n y on e b idder w ill be a ccepted in full at the average price (in three decim a ls) o f a ccep ted com p etitive bids. Settlem ent fo r a ccep ted tenders in a ccord a n ce w ith the bids m u st be m ade or com p leted at the F ed eral R eserve B ank on June 26, 1958, in cash or oth er im m ediately available fu n ds o r in a like fa ce a m ou n t o f T rea su ry bills m atu rin g June 26, 1958. Cash and exch a n ge tenders w ill receive equal treatm ent. Cash adjustm ents w ill be m ade fo r d ifferen ces betw een the par value o f m aturing 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 or ga in fr o m the sale or oth er d isp osition o f the bills, d oes n ot have any exem ption , as such, and loss fro m the sale or oth er disp osition o f T rea su ry bills d oes n ot have a n y special treat m ent, as such, u nder the Internal R even u e C od e o f 1954. T h e bills are su b ject to estate, inheritance, g ift or oth er excise taxes, w hether Federal o r State, but are exem pt fro m all taxation n ow or hereafter im p osed on the principal or in terest th ereof b y a n y 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 lo ca l ta x in g authority. F o r pu rposes o f taxation the am ount o f discou n t at w h ich T rea su ry bills are o rigin a lly sold b y the U n ited States is con sid ered to be interest. U nder S ection s 4 5 4 (b ) and 1221(5) o f the In tern al R even u e C od e o f 1954 the a m ou n t o f discou n t at w hich bills issued hereunder are so ld is n o t con sidered to accru e until such bills are sold, redeem ed o r oth erw ise disp osed o f, and such bills are exclu ded fr o m con sideration as capital assets. A c c o r d in g ly , the ow n er o f T r e a s u ry bills (oth er than life insurance com p a n ies) issued hereunder need include in his in com e tax return on ly the difference betw een the p rice paid f o r such bills, w h eth er on original issue o r o n subsequent purchase, and the a m ou n t actu ally received either u pon sale or redem ption at m aturity du rin g the taxable year fo r w h ich the return is m ade, as ordinary gain o r loss. T re a su ry D epa rtm en t C ircu lar N o. 418, R evised , and this n otice, prescrib 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 opies o f the circular m ay be obtain ed fro m a n y Federal R e serv e B a n k o r B ranch. T h is B a n k w ill r e c e iv e t e n d e r s u p t o 1 :3 0 p .m ., E a s t e r n D a y lig h t S a v in g tim e , M o n d a y , J u n e 2 3 , 1 9 5 8 , a t th e S e c u r i tie s D e p a r t m e n t o f its H e a d O f fic e a n d a t its B u f f a lo B r a n c h . P le a s e u s e t h e f o r m o n th e r e v e r s e s id e o f th is c ir c u la r t o s u b m it a te n d e r , a n d r e t u r n it in a n e n v e lo p e m a r k e d “ T e n d e r f o r T r e a s u r y B ills .” T e n d e r s m a y b e s u b m itt e d b y te le g r a p h , s u b je c t t o w r it t e n c o n f ir m a t io n ; th e y m a y n o t b e s u b m it t e d b y te le p h o n e . P a y m e n t f o r t h e T r e a s u r y b i l l s c a n n o t b e m a d e b y c r e d it th r o u g h th e T r e a s u r y T a x a n d L o a n A c c o u n t. S e t t le m e n t m u s t b e m a d e in c a sh o r o t h e r i m m e d i a t e l y a v a il a b le f u n d s o r i n m a t u r i n g T r e a s u r y b ills . A l f r e d H a y e s , P r e s id e n t. R e s u l t s o f la s t o f f e r i n g o f T r e a s u r y b ills (9 1 -d a y T o ta l applied fo r ..........$2,471,696,000 T o t a l a c c e p t e d ...............$1,700,932,000 (inclu des $261,078,000 entered o n a n on com petitive basis and a ccep ted in full at the average price show n b e lo w ) R ange o f a ccepted com petitive b id s: H ig h ..................... 99.850 Low ..................... 99.755 A v era ge ............... 99.759 E quivalent rate a p p rox. 0.593% E quivalent rate app rox. 0.969% E quivalent rate approx. 0.953% o f discou nt per annum o f discou n t p er annum o f discount per annum (1 6 p e r c e n t o f th e a m o u n t b id f o r at th e lo w p r ic e w a s a c c e p t e d ) b ills d a t e d J u n e 1 9 , 1 9 5 8 , m a t u r i n g S e p t e m b e r 1 8 , 1 9 5 8 ) Federal R eserv e D istrict B o s to n .............................. N ew Y o r k ..................... Philadelphia ................... C leveland ........................ R ich m o n d ........................ A tlanta ............................ C h ica g o ............................ St. L ou is .......................... M in neapolis ................... K ansas C ity ................... D a lla s ................................. San F ra n cisco ............... T otal ........................ Total A pplied f o r $ 39,413,000 1,717,692,000 42,452,000 63,168,000 7,945,000 43,784,000 299,607,000 38,536,000 19,143,000 54,427,000 22,869,000 122,660,000 $2,471,696,000 Total A ccepted $ 39,413,000 1,072,892,000 34,305,000 52,288,000 7,861,000 37,431,000 245,527,000 38,536,000 19,143,000 40,427,000 22,869,000 90,240,000 $1,700,932,000 ( over ) .Njo__ TENDER FOR 91-D AY TREASURY BILLS D a te d June 2 6 , 1958 M aturin g September 2 5 , 1958 D a ted at . . . T o F e d e ra l R eserve B a n k o f N ew Y ork , ............. F is c a l A g e n t o f th e U n it e d S ta te s . 1 9 ... P u r s u a n t t o t h e p r o v is io n s o f T r e a s u r y D e p a r t m e n t C ir c u la r N o . 4 1 8 , R e v is e d , a n d t o th e p r o v i s i o n s o f th e p u b li c n o t ic e is s u e d b y th e T r e a s u r y D e p a r t m e n t a n d p r in t e d o n th e r e v e r s e s id e o f th is te n d e r , th e u n d e r s ig n e d h e r e b y o f f e r s t o p u r c h a s e th e a b o v e d e s c r ib e d T r e a s u r y b ills in th e a m o u n t in d ic a t e d b e lo w , a n d a g r e e s t o m a k e p a y m e n t t h e r e f o r a t y o u r B a n k o n o r b e f o r e th e is s u e d a t e a t th e p r ic e in d ic a t e d b e l o w : E C O M P E T IT IV E T E N D E R D o n ot fill in both Com petitive and N on com petitive tenders on one fo r m $ ..........................................................................( m a t u r it y v a l u e ) , o r a n y le s s e r a m o u n t th a t m a y b e a w a r d e d . J N O N C O M P E T IT IV E T E N D E R $ ..................................... ......................... .. ( m a t u r it y v a l u e ) . (N o t to ex ceed $200,000 f o r one bidder through all sou rces) P r i c e : ........................ ..................................... p e r 10 0 . (P r ic e must be exp ressed with not m ore than three decimal places, f o r exam ple, 99.925) A t th e a v e r a g e p r ic e o f a c c e p te d c o m p e t it iv e b id s . S u b je c t t o a llo tm e n t, p le a s e is s u e , d e liv e r , a n d a c c e p t p a y m e n t f o r th e b ills a s in d ic a t e d b e l o w : Pieces Denomination $ M aturity value 1,000 5,000 10,000 □ 1. D eliver ov er the counter to the undersigned □ 2. Ship to the undersigned □ 3. H old in safekeeping ( f o r ac count o f member bank on ly) □ 4. Allotm ent attached) □ 5. Special instructions: 100,000 500,000 transfer (see list 1,000,000 (N o changes in delivery instructions will be accepted) Totals------- 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 T reasury T a x and Loan A ccou n t) T h e u n d e r s ig n e d ( i f a b a n k o r tr u s t c o m p a n y ) h e r e b y c e r t ifie s th a t th e T r e a s u r y b ills w h i c h y o u a re h e r e b y in s t r u c t e d t o d is p o s e o f in th e m a n n e r in d ic a t e d in it e m 3 a b o v e a r e s o le ly o w n e d b y th e u n d e r s ig n e d . N a m e o f su b scrib er ........... Insert this tender in special en velop e m a rk ed *‘ T e n d e r _ fo r 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 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 less than $1,000 w ill b e co n sid e re d , a n d each ten d er m u st b e fo r an ev en 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 ot be p erm itted t o su b m it ten ders e x c e p t fo r their o w n a cco u 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 a y c o n s o lid a te com p etitiv e ten ders at the same price and m a y co n so lid a te n o n co m p e titiv e te n 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 b id d er, th e a m ou n t b id f o r his a ccou n t, and m e th o d o f p a ym en t. F o r m s f o r th is p u rp ose w ill be fu rn ish ed on request. 3. I f th e p e r s o n m a k in g the ten der is a c o rp o ra tio n , the ten der s h ou ld be sign ed b y an o ffice r o f th e c o r p o r a tio n a u th o rize d t o m a k e th e ten d er, a n d th e s ig n in g o f th e ten der b y an officer o f th e c o r p o r a tio n w ill be c o n stru e d as a represen tation b y him that he has b een 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 sig n ed b y a m e m b e r o f the firm , w h o s h o u ld sig n in the fo r m “ ................................................................................................, a co p a rtn e rsh ip , b y ..................................................................................................................... a m e m b e r o f th e firm .” 4. T e n d e r s w ill be re ce iv e d w ith ou t d e p o s it fr o m in co rp o ra te d banks a n d trust co m p a n ie s a n d fr o m re s p o n sib le 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 cco m p a n ie d b y p a y m en t o f 2 p e rce n t o f th e fa ce a m ou n t o f T r e a s u ry bills a p p lied fo r , u nless the ten ders are a cco m p a n ie d b y an exp ress gu a ra n ty o f pa 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 g e o f this ten der is ch a n g e d in a n y resp ect, w h ich , in the op in io n o f the S ecreta ry o f th e T re a su ry , is m aterial, th e ten d er m a y be disregarded. ( over ) FE D E RA L RESERVE BANK O F NEW YORK June 20, 1958. T o A ll Banking Institutions iti the Second Federal R eserve D istrict: We are pleased to announce that C o u n ty Bank and T ru st C om pany, Jersey, has become a member of the Federal Reserve System, effective today. today, P a s s a ic -C lifto n N a tio n a l B a n k a n d T r u s t C om pan y, Paterson, New Also effective Clifton, New Jersey, was merged into County Bank and Trust Company under the latter’s charter and new name of B a n k and T r u s t C om pany, N ew Jersey Clifton, New Jersey. The capital of the combined bank is $6,105,000 and its surplus, $8,895,000. The senior officers of New Jersey Bank and Trust Company are: C. K e n n e th C h a irm a n o f th e B o a r d F u lle r J o h n C. B a rb ou r P r e s id e n t J osep h F . H am m ond •Senior V ic e P r e s id e n t C o w le s A n d r u s S e n i o r V i c e P r e s id e n t C arl R. S e n i o r V i c e P r e s id e n t G r iffe n N orm a n B r a s s le r E x e c u t i v e V i c e P r e s id e n t E d w a rd H . R od en E x e c u t i v e V i c e P r e s id e n t We are advised that, for the time being, New Jersey Bank and Trust Company will con tinue to. use the A.B.A. transit numbers and check routing symbols of the merging banks. These numbers and symbols are: County Bank and Trust Company Paterson, Passaic, and West Paterson Offices: Little Falls Office: Haledon Office: 55-57 55-409 212 55-615 212 Passaic-Clifton National Bank and Trust Company: 212 55-129 212 A lfred H ayes, President.