The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
FEDERAL RESERVE BANK OF NEW YORK r C ircular No. 4 0 1 9 1 J u ly 17, 1958 J Fiscal Agent of the United States L O fferin g o f $ 1 ,7 0 0 ,0 0 0 ,0 0 0 o f 9 1 -D a y T reasu ry B ills Dated July 24, 1958 Maturing October 23, 1958 T o all In corporated B anks 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: TREASURY DEPARTM EN T W ash ington 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, July 17, 1958. T h e T reasu ry D epartm ent, by this pu blic notice, invites tenders fo r $1,700,000,000, o r thereabouts, o f 91-day T reasu ry bills, fo r cash and in exch a n ge fo r T reasu ry bills m aturing J u ly 24, 1958, in the am ount o f $1,699,865,000, to be issued on a discou n t basis under com petitive and noncom petitive b idd ing as h ereinafter provided. T h e bills o f this series w ill be dated Ju ly 24, 1958, and w ill mature O ctob er 23, 1958, w hen the face am ount w ill be payable w ithout 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 valu e). T en ders w ill be received at Federal R eserve Banks and B ranches up to the clo s in g hour, on e-thirty o ’ c lo ck p.m., Eastern D a yligh t S avin g time, M on day, July 21, 1958. T en ders w ill n ot be received at the T reasu ry D epartm ent, W ash ington. Each tender must be fo r an even m ultiple o f $1,000, and in the ca se o f com petitive tenders the price offered m ust 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 m ade on the printed form s and forw a rd ed in the special envelopes w hich w ill be supplied b y 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. Tenders 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 others must be accom panied by paym ent o f 2 percent o f the face am ount o f T reasu ry bills a pplied fo r, 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 F ed eral R eserve Banks and B ranches, fo llo w in g w hich p u blic 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 ose subm itting tenders w ill be advised o f the acceptance or rejection thereof. T h e Secretary o f the T reasu ry expressly reserves the righ t to accept o r reject any or a ll tenders, in w hole or in part, and his action in any such respect shall be final. S ubject to these reservations, n oncom petitive tenders for $200,000 or less w ithout stated price from any one bidder w ill be accepted in fu ll at the average price (in three decim als) o f accepted com petitive bids. Settlem ent f o r a ccepted tenders in a ccordance w ith the bids must be made or com pleted at the F ed eral R e serv e Bank on July 24, 1958, in cash or other im m ediately a vaila b le funds o r in a like face am ount o f T reasu ry bills m aturing July 24, 1958. Cash and exch a n ge tenders w ill receive equal treatment. Cash adjustm ents w ill be made fo r differences betw een the par value o f m aturing bills accepted in exch a n ge and the issue price o f the new bills. T h e incom e derived from T reasu ry bills, whether interest or gain from the sale o r other d isp 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 n ot have any special treat ment, as such, under the Internal Revenue C ode o f 1954. T h e b ills are subject to estate, inheritance, g ift o r oth er e x cis c taxes, w hether F ed eral o r State, but are exem pt from all taxation n ow or hereafter im posed on the principal o r interest th ereof by any State, o r any o f the possessions o f the U nited States, or by any loca l ta x in g authority. F o r purposes o f taxation the amount o f discou n t at w hich T reasu ry b ills are o rigin a lly sold by the U nited States is con sidered to be interest. U nder Sections 454(b) and 1221(5) o f the Internal Revenue C ode o f 1954 the am ount o f discou n t at w hich bills issued hereunder are so ld is not con sidered to accru e u ntil such bills are sold, redeem ed o r otherw ise disposed o f, and such bills are excluded from con sideration as capital assets. A cco rd in g ly , the ow n er o f T reasu ry bills (oth er than life insurance com pan ies) issued hereunder need in clude 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 h ich the return is m ade, as ord in a ry gain o r loss. T reasu ry D epartm ent C ircu lar N o. 418, R evised, and this n otice, 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 may be obtained from any Federal R eserve Bank or Branch. This Bank will receive tenders up to 1 :30 p.m., Eastern Daylight Saving time, Monday, July 21, 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 o f the last offering o f Treasury bills (91-day bills dated July 17, 1958, maturing October 16, 1958) T o ta l applied f o r .........$2,653,127,000 T o ta l a c c e p t e d ............. $1,700,003,000 (in clu des $297,798,000 entered on a n on com petitive basis and accepted in fu ll at the a ver a ge price show n b elow ) R ange o f a ccepted com petitive b id s : (excep tin g five tenders totalin g $3,165,000) H i g h ....................... 99.724 E quivalent rate o f discount app rox. 1.092% per annum L o w ......................... 99.706 E quivalent rate o f discount approx. 1.163% per annum A v e r a g e ................. 99.713 Equivalent rate o f discount app rox. 1.137% per annum (22 percent o f the amount b id fo r at the low price w as accep ted) T otal Applied fo r Federal R eserve D istrict .. $ .. $2,653,127,000 N ew Y o r k ................. Ph iladelphia ............. C leveland ................... R ich m on d ................... A tlanta ....................... St. L ou is ................... M in n e a p o lis ............... K ansas C ity ............. San F ra n cisco ......... T o t a l ........................ 44,033,000 1,860,585,000 42,526,000 74,757,000 16,731,000 62,915,000 268,761,000 35,822,000 23,989,000 61,645,000 26,661,000 134,702,000 Total A ccepted $ 43,033,000 1,060,405,000 24,186,000 67,197,000 15,731,000 62,681,000 182,981,000 35,622,000 23,889,000 51,645,000 20,661,000 111,972,000 $1,700,003,000 (o v e r ) No T E N D E R FOR 91-D A Y T R E A S U R Y BILLS Dated July 24, 1958 To F ederal R eserve B a n k of N ew Y Maturing October 23, 1958 o rk Dated at , 1 9. .. Fiscal Agent o f the United States. 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: E COMPETITIVE TENDER D o n ot fill in both Com petitive and N Noncom on competitive petitive lenders tenders on on one one fo forrm m $ ........................................................ (maturity value), or any lesser amount that may be awarded. Price: .................................. per 100. ( P r ic e m ust b e exp ressed with not m ore than three decim al places, f o r exam ple, 99.925) JJ NONCOMPETITIVE TENDER $ ........................................................ ( maturity value ). (N o t to exceed $200,000 f o r one bidder through all sources) 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 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) T otal s- 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 T reasu 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 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 Billsn _ (Please print) By .................................................................... By (Official signature(s) required) 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) (Nam e o f customer) (Address) IN S T R U C T IO N S : 1. N o ten d er fo r less than $1,000 w ill b e co n sid e re d , and each ten der m u st b e 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 an k in g in stitu tions w ill n o t be perm itted to subm it ten ders e x ce p t fo r their o w n a ccou n t. Banks su b m ittin g tenders f o r c u sto m e r a cco u n t m a y co n so lid a te com petitive 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 ders, p r ovid ed a list is attached s h o w in g the nam e o f each b idd er, the a m ou n t bid fo r his a ccou n t, and m e th o d o f paym ent. F o r m s f o r this p u rp ose w ill be furn ished on request. 3. I f the person m a k in g the ten der is a c o rp o ra tio n , the tender sh ou ld be sign ed b y an officer o f the c o r p o r a tio n a u th orized to m ak e the ten der, and the sign in g o f the tender b y an officer o f the c o r p o r a tio n w ill be c o 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 partnersh ip, it sh ou ld be sig n ed b y a m em b er o f the firm , w h o sh ou ld sign in the fo r m “ ............................................................................................... , a cop artn ersh ip , by ................................................................................................................... . a m em b er 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 co rp o ra te d banks and trust co m p a n ie s and fr o m re s p o n sib le and r e co g n iz e d dealers in in vestm ent securities. T e n d e rs 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 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 th e ten ders are a cco m p a n ie d b y an ex p re s s gu aranty o f pa ym en t b y an in co rp o ra te d bank 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, th e ten der m a y be disregarded. ( over)
@FedFRASER