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FEDERAL RESERVE BANK O F NEW YORK F is c a l A g e n t o f th e U n i t e d S t a te s [ Circji?y Offering o f $1,700,000,000 o f 91-Day Treasury Bills Dated July 10, 1958 Maturing October 9, 1958 T o all Incorporated Banks and T rust 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 , W e d n e s d a y , July 2, 1958. TREASURY DEPARTM ENT W a s h in g to n T h e T re a su ry D ep a rtm en t, b y this p u b lic n otice, invites ten ders fo r $1,700,000,000, o r th ereabouts, o f 91 -d a y 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 aturing July 10, 1958, in th e a m ou n t o f $1,700,140,000, t o be issued on a d isco u n t basis u nder co m p e titiv e 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 Ju ly 10, 1958, and w ill m ature O c t o b e r 9, 1958, w h en the fa ce 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 ceiv ed at F ed era l R e serv e B anks and B ra n ch es up to the clo s in g h our, o n e-th irty o ’ c lo c k p.m ., E astern D a y lig h t S a vin g tim e, M o n d a y , Ju ly 7, 1958. T en d ers w ill n ot be receiv ed 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 u ltiple o f $1,000, and in the ca se o f com p etitiv e tenders the p rice offered m u st be exp ressed on the 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. It is u rged that ten ders be m ade o n the printed fo rm s and fo rw a rd e d in th e special en velop es w h ich w ill be sup plied b y F ed eral R eserve B anks or B ran ch es o n a pp lica tion th erefor. O th ers than b a n k in g in stitu tions w ill n o t be perm itted to su b m it tenders e x ce p t fo r th eir ow n a ccou n t. T en d ers w ill be receiv ed w ith ou t d ep o sit fr o m in corp ora ted banks and trust com p a n ies and fro m resp on sib le and re co g n iz e d d ea lers in in vest 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 r e a s u ry bills a pp lied fo r , unless the tenders are a cco m p a n ie d b y an ex p ress gu aranty 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 a fter th e c lo s in g h our, 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 pu b lic a n n ou n cem en t w ill b e m ade b y th e T rea su ry D epa rtm en t o f th e a m ou n t a n d price ran ge o f a ccep ted b ids. T h o s e su b m ittin g ten ders w ill b e a d v ised 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 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 any o r all tenders, in w h o le or in part, and his a ction in a n y such resp ect shall b e final. S u b ject 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 any on e b idd er w ill be a ccep ted in full at th e average price (in three decim a ls) o f a ccep ted com p etitive 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 or com p le te d at the Federal R eserve Bank on July 10, 1958, in cash or oth er im m ediately available funds o r in a like face a m ou n t o f T rea su ry bills m aturing Ju ly 10, 1958. Cash and ex ch a n g e ten ders w ill receive equal treatm ent. Cash ad ju stm en ts w ill be m ade for d ifferen ces b etw een the par valu e o f m a tu rin g b ills a ccep te d in e x ch a n g e and the issue p rice o f th e n ew bills. T h e in co m e derived fr o m T r e a s u ry bills, w h eth er interest or gain fr o m the sale o r oth er disp osition o f the bills, d o e s n ot have any 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 r e a s u ry bills d oes n ot have a n y special treat m ent, 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 to estate, inheritance, g ift o r oth er excise taxes, w h e th e r F ed era l o r State, b u t are ex em p t fr o m all ta xation n o w o r h erea fter im p osed on the principal o r in terest th ereof b y an y State, o r a n y o f the p ossession 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 rp oses o f ta xation the am ou nt 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 der Section 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 d iscou n t at w h ich bills issued hereunder are so ld is n o t co n sid ered to a ccru e until such bills are sold , red eem ed o r oth erw ise d isp o se d o f, and such bills are exclu ded fro m con sid era tion as capita l 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 insurance co m p a n ie s ) issued h ereun der n eed in clu d e in his in co m e ta x return o n ly th e differen ce betw een the p rice 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 actu a lly received eith er u pon 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 epa rtm en t C ircu la r N o . 418, R ev ised , and this n otice, prescrib e the term s o f the 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 a n y F ed eral R eserve B ank o r B ranch. T h i s 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 te r n D a y lig h t S a v in g tim e , M o n d a y , J u ly 7, 1 9 5 8 , a t th 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 ff a lo B r a n c h . P le a s e u s e th 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 t e 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 j e c t t o w r it t e n c o n f i r m a t i o 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 . Paym ent f o r the Treasury bills cannot be made by credit through the Treasury T ax and Loan Account. funds or in maturing Treasury bills. Settlement must be made in cash or other immediately available A lfred H ayes, President. Results o f the last offering o f T reasu ry bills (9 1 -d a y bills dated July 3, 1 9 5 8 , m atu rin g O ctober 2 , 1 9 5 8 ) T ota l applied fo r . $2,329,811,000 T o ta l a ccep ted .........$1,700,356,000 (in clu d es $220,963,000 entered o n a n on com p etitiv e basis and a ccep ted in full at the average price sh ow n b e lo w ) R a n g e o f a cccp te d co m p etitive b ids: H ig h .................. 99.815 L ow .................. 99.800 A v e ra g e ........... 99.806 E quivalent rate app rox. 0.732% E quivalent rate app rox. 0.791% E quivalent rate a p p rox. 0.768% o f discou nt per annum o f discount per annum o f discou nt per annum (8 2 p e r c e n t o f th e a m o u n t b id fo r at th e lo w p r ic e w a s a c c e p t e d ) F edera l R eserv e D istrict B o s to n .......................... N ew Y o r k .................... Philadelphia .................. C leveland ........................ R ich m on d ...................... A tlanta ............................. C h ica g o ........................... St. L ou is ........................ M in n ea p olis .................. K ansas C ity .................. D allas ............................. San F ra n cisco ............. T o ta l ............. T otal A pplied f o r $ 32,638,000 1,697,826,000 32,899,000 46,473,000 14,140,000 21,897,000 250,479,000 28,354,000 11,890,000 46,317,000 33,693,000 113,205,000 $2,329,811,000 Total A ccep ted $ 22,566,000 1,141,426,000 25,899,000 45,173,000 14,140,000 21,753,000 208,759,000 28,213,000 11,890,000 45,477,000 32,233,000 102.827,000 $1,700,356,000 ( over ) TENDER FOR 91-DAY TREASURY BILLS Dated July 10, 1958 Maturing October 9, 1958 D a t e d a t .......................................... T o F ed era l R eserve B an 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 . .......................................................................... , 19. . . 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 te a t th e p r ic e in d ic a t e d b e l o w : D o not fill in both Com petitive and |_ NN onon com petitive com petitivetenders tendersononone oneform fo rm C 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 ) , 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 100. (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 i c 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 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 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) 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 T reasury bills. P ay cash adjust ment, if any— □ B y check □ By 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 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 re s o le ly o w n e d b y th e u n d e r s ig n e d . N am 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) ................................. ...................... , B y ................ T i t l e ............................... ...................... . T i t l e ........... By (O fficial s ig n a tu r e (s ) re q u ire d ) A d d re s s ........................................................................................................ (B a n k s submitting tenders fo r customer account must indicate name on line below, o r attach a list) (N a m e o f cu sto m e r) (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 co n sid ered , and each ten d er 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 t o subm it ten ders e x ce p t f o r their ow n a cco u n t. Banks 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 etitive tenders at the same price a n d 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, the a m ou n t bid f o 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 furn ished on request. 3. I f the 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 b e sign ed b y an officer o f th e co rp o ra 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 th e ten der b y an officer o f the co r p o r a tio n w ill b e 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 partnersh 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 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 e p o s it fr o m in corp ora ted banks and trust co m p a n ie s and from re s p o n sible and r e co g n iz e d dealers in in vestm ent securities. T en 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 th e fa ce a m ou n t o f T rea su 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 aranty o f paym ent 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 th e o p in io n o f the S ecreta ry o f the 1 reasury, is m aterial, th e ten der m a y b e disregarded. ( over )
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