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FEDERAL RESERVE BANK OF NEW YORK Fiscal A gent o f the United States [ Circular No. 4 6 1 4 J u n e 26, 1958 Offering o f $1,700,000,000 o f 91-Day Treasury Bills Dated July 3, 1958 Maturing October 2, 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 t h e t e x t o f a n o t i c e p u b l i s 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 ursday, June 26, 1958. TREASURY DEPARTM ENT W ash ington T h e T reasu ry D epartm ent, by this public notice, invites tenders for $1,700,000,000, o r thereabouts, o f 91-day T reasu ry bills, fo r cash and in exch ange fo r T reasu ry bills m aturing July 3, 1958, in the am ount o f $1,700,087,000, to be issued on a discou nt basis under com petitive and noncom petitive b idding as h ereinafter provided . T h e bills o f this series w ill be dated July 3, 1958, and w ill m ature O ctober 2, 1958, when the face am ount w ill be payable w ith ou t interest. T h 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 F ed eral R eserve Banks and B ran ches up to the clo s in 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 30, 1958. T en ders w ill not be received at the T reasu ry D epartm ent, W a sh in gton . Each tender m ust be fo r an even m ultiple o f $1,000, and in the case o f com petitive tenders the price offered m ust be exp ressed on the basis o f 100, w ith not 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 Federal R eserve Banks or B ranches 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 account. T en ders w ill be received w ithout deposit from in corporated banks and trust com panies and from responsible and recogn ized dealers in in vestm ent securities. T en ders from oth ers must be accom panied by paym ent o f 2 percent o f the fa ce am ount o f T reasu ry bills applied for, unless the tenders are accom pa n ied by an express guaranty o f paym ent by an in corporated bank or trust com pany. Im m ediately after the closin 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 m ade by the T reasu ry D epartm ent o f the am ount and p rice range o f accepted bids. T h ose subm itting tenders w ill be advised o f the acceptance or rejection thereof. T h e S ecretary o f the T reasu ry exp ressly reserves the right to accep t o r reject any or all tenders, in w hole or in part, and his action in any such respect shall be final. S ubject to these reservations, n on com petitive tenders fo r $200,000 or less w ithout stated price from any one b idder w ill be accepted in full at the average 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 must be m ade o r com pleted at the Federal R eserve Bank on July 3, 1958, in cash or oth er im m ediately available funds o r in a like face am ount o f T reasu ry bills m aturing July 3, 1958. Cash and exch a n ge tenders w ill receive equal treatment. Cash adjustm ents w ill be made fo r differences between 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 c 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 from the sale or other disp osition o f T reasu ry bills does not have any special treat ment, as such, under the Internal R evenue C ode o f 1954. T he b ills are subject to estate, inheritance, g ift o r oth er e x cis e taxes, whether Federal o r State, but are exem pt from a ll 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, or by any lo ca l taxing authority. F o r purposes o f taxation the amount o f discou nt at w h ich T reasu ry bills are o rigin 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 R evenue C ode o f 1954 the am ount o f discou nt at w hich bills issued hereunder are sold is n ot con sid ered to a ccru e until such bills are sold, redeem ed or oth erw ise disposed of, and such bills are exclu ded from con sideration as capital assets. A ccord in g ly , the ow n er o f T reasu ry bills (oth er than life insurance com pa n ies) issued hereunder need include in his incom e ta x return on 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 actu ally received either upon sale or redem ption at m aturity du rin g the taxable year fo r w hich the return is made, as ord in a ry gain o r loss. T re a su ry D epartm 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 conditions o f their issue. Copies o f the circu la r m ay be obtained from any Federal R eserve Bank o r Branch. T h i s B a n k w i ll r e c e i v 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 l i g h t S a v i n g tim e , M o n d a y , J u n e 3 0 , 1 9 5 8 , a t t h e S e c u r it ie 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 l o B r a n c h . P le a s e u s e th e f o r m o n t h e r e v e r s e s id e o f t h is c i r c u l a 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 i l l s . ” T e n d e r s m a y b e s u b m it t e d b y t e 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 itt e d b y te le p h o n e . P a y m e n t j 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 l e m e n t m u s t b e m a d e in c a s h o r o t h e r im m e d i a t e l y a v a i l a b le j u n d s o r in m a t u r in g T r e a s u r y b il l s . 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 i l l s (9 1 -d a y b ills d a te d J u n e 2 6 , 1958, m a tu r in g S e p te m b e r 2 5 , 1 9 5 8 ) T o ta l applied f o r ......... $2,470,831,000 T o ta l a c c e p t e d .............$1,700,234,000 (in clu des $267,451,000 entered on a noncom petitive basis and a ccepted in fu ll at the a ver age price show n b elow ) R a n g e o f accepted com petitive b id s : H i g h ....................... 99.759 E quivalent rate o f discount app rox. 0.953% per annum L o w ......................... 99.743 Equivalent rate o f discou nt approx. 1.017% per annum A v e r a g e ................. 99.746 Equivalent rate o f discount approx. 1.006% per annum (87 percent o f the am ount bid for at the low price w as accepted) Federal R eserve D istrict Total Applied fo r .. N ew Y o r k ................. P h iladelphia ............. Cleveland ................... R ich m on d ................... A tlanta ....................... C h i c a g o ....................... St. L ou is ................... M in n e a p o lis ............... K ansas C i t y ............... San F ra n cisco ........ T o ta l ...................... . . $ 40,194,000 1,783,261,000 44,906,000 53,040,000 20,623,000 37,338,000 266,578,000 22,872,000 28,086.000 43,162,000 19,732,000 111,039,000 $2,470,831,000 Total A ccepted $ 37,252,000 1,132,001,000 31,386,000 53,040,000 20,623,000 36,408,000 202,318,000 22,872,000 28,086,000 32,772,000 19,632,000 83,844,000 $1,700,234,000 (ovek) N o. TEN DER FOR 91-DAY TREASURY BILLS D a te d J u ly 3, 1958 M a tu r in g O c t o b e r 2 , 1958 D a t e d at T o F ed era 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 th 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 lic 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 : [ C O M P E T IT IV E T E N D E R D o not fill in both Com petitive and N on com petitive tenders on one form $ ..........................................................................( 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 . 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 exceed $200,000 f o r one bidder through all sou rces) P r i c e : ............................................. p e r 100. (P r ic e m ust be expressed 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 t e 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 issu 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 as in d ic a te d b e l o w : Pieces Denomination $ M aturity value 1,000 5,000 10,000 □ 1. Deliver over the counter to the undersigned □ 2. Ship to the undersigned □ 3. H old in safekeeping ( f o r ac count o f member bank only) □ 4. Allotment attached) □ 5. Special instructions: 100,000 transfer (see list 500,000 1,000,000 (N o Totals------- changes in delivery instructions will be accepted) Payment will 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 cco u 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 ic 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 ite 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 velope m a rk ed “ T e n d e r _ for Treasury Bills” _ (P le a s e prin t) By ................................. By (O fficia l s ig n a t u r e (s ) re q u ire d ) T i t l e ............................................................................... T i t l e ........... A d d re s s ........................................................................................................ (B anks submitting tenders fo r customer account must indicate name on line below, or attach a list) (N a m e o f cu stom er) (A d d r e s s ) IN S T R U C T IO N S : 1. N o ten der fo r less than $1,000 w ill be con sid e re d , and each ten d er m u st be fo 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 to subm it ten ders e x cep t fo r their o w n a cco u n t. B anks su b m ittin g ten ders fo r c u sto m e r a cco u n t m ay co n so 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 ten d ers, p r ov id ed a list is a ttached 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 cco u n t, and m e th o d o f pa ym en t. F o r m s fo r this p u rp ose w ill be fu rn ish ed on request. 3. I f th e p e rso 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 rp o ra tio n a u th o rize d to m ake the ten der, and the sig n in g o f the 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 represen tation 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 s h ou ld be sig n ed b y a m e m b e r o f the firm, w h o s h ou ld sign in the fo r m “ ............................................................................................... , a cop a rtn ersh 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 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 sp o n sib le and r e co g n iz e d dealers in in vestm ent securities. T en d ers fr o m o th ers m ust be a cco m p a n ie d b y pa ym en t o f 2 p e rce n t o f the 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 ccom p a n ied b y an ex p re s s gu a ra n ty o f pa ym en t b y an in co rp o ra te d ba 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 a n y respect, 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 der m a y be disreg arded. ( over )
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