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FEDERAL RESERVE BANK O F N EW YORK r «Circular N o. 4 6 2 2 Fiscal A gent o f the United States L July 2 4 , 1958 Offering o f $1,700,000,000 o f 91-Day Treasury Bills Dated July 31, 1958 Maturing October 30, 1958 T o all In corporated Banks and Trust Companies, and Others Concerned, in the Second Federal R eserv e D istrict: F ollow in g is the text o f a notice published to 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 , July 24, 1958. TREASU RY DEPARTM ENT W a sh in g to n T h e T re a su ry D epa rtm en t, b y this p u b lic n otice, invites ten ders fo r $1,700,000,000, o r th ereabou ts, o f 91-day T reasu ry bills, fo r cash and in e x ch a n g e fo r T r e a s u ry bills m atu rin g Ju ly 31, 1958, in th e a m ou n t o f $1,701,714,000, to be issued on a d isco u n t basis u nder com p etitive and n on co m p e titiv e b id d in g as h ereinafter provid ed . T h e bills o f this series w ill b e dated J u ly 31, 1958, and w ill m ature O c to b e r 30, 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 receiv ed at F ed eral 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 on d a y, July 28, 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 b e fo r an even m u ltiple o f $1,000, and in th e ca se o f com p etitive ten ders the p rice o ffe re d m u st b e exp ressed on the basis o f 100, w ith n ot m o re than th ree decim als, e.g., 99.925. F raction s m a y n ot be used. I t is u rg ed that ten ders be m ade o n the p rin ted 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 era l R e serv e B anks or B ra n ch es o n a pp lica tion th erefor. O th e rs than b a n k in g institutions w ill n o t be perm itted to subm it ten ders e x cep t fo r th eir o w n a ccou n t. T en d ers w ill be re ce iv e d w ith ou t d ep o sit fr o m in corp ora ted banks and trust com p a n ies and fr o m resp on sib le and re co g n iz e d dealers 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 p a y m en t o f 2 p ercen t o f the fa ce a m ou n t o f T rea su ry bills a pplied fo r, unless th e tenders are a ccom p a n ied b y an ex p ress gu a ra n ty o f pa ym en t b y an in corp ora ted bank o r trust com p a n y . Im m ed ia tely a fter th e clo s in g h our, ten ders w ill be o p en ed at th e F ed eral R e serv e B an ks and B ra n ch es, fo llo w in g w h ich pu b lic a n n o u n ce m e n t w ill b e m ade b y the T rea su ry D epa rtm en t o f the a m ou n t a n d p rice ra n ge o f a ccep ted bids. T h o s e su b m ittin g ten ders w ill b e a d vised o f th e a ccep ta n ce o r re je ctio n th ereof. T h e S ecreta ry o f th e 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 ten ders, in w h o le or in part, and his a ction in a n y such resp ect shall be final. S u b ject to th ese reserva tion s, n o n com p etitiv e tenders 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 the a vera ge price (in th ree decim a ls) o f a ccep ted com p etitiv e bids. Settlem ent fo r a ccep ted ten ders in a ccord a n ce w ith the bids m u st be m ade o r com p leted at the Federal R eserve B ank on Ju ly 31, 1958, in cash o r oth er im m ediately available funds o r in a like face a m ou n t o f T r e a s u ry bills m atu rin g J u ly 31, 1958. Cash and ex ch a n g e ten ders 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 atu rin g bills a ccep ted in exch a n ge and the issue p rice o f the n ew bills. T h e in co m e derived fr o m T rea su ry bills, w h eth er interest o r gain fr o m the sale or oth er d isp osition o f th e bills, d o e s n ot have a n y e x e m p tio n , as such, and lo s s fr o m the sale or oth er d isp osition o f T r e a s u ry bills d oes n ot have any special treat m ent, as such, u n d er th e Internal R even u e C o d e o f 1954. T h e bills are su b ject to estate, inheritance, g ift or oth er excise taxes, w h e th e r F ed era l o r State, but are exem p t fr o m all taxation n o w o r hereafter im p osed on the principal o r in terest th e re o f b y an 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 rp oses o f ta xation the a m ou n t o f d iscou n t at w h ich T rea su ry bills are o rig in a lly s o ld b y the U n ited States is con sidered to be interest. U n der S ection s 4 5 4 (b ) and 1221(5) o f the In tern a l R even u e C od e o f 1954 th e a m ou n t o f d iscou n t at w h ich bills issued hereunder are s o ld is n o t co n sid e re d to a ccru e until such bills are sold , red eem ed o r oth erw ise d isp osed of, and such bills are exclu d e d fr o m con sidera tion as capital assets. A c c o r d in g ly , the ow n er o f T rea su ry bills (o th e r than life insurance co m p a n ie s ) issued hereun der need in clu d e in his in com e ta x return o n ly the differen ce betw een the p rice paid fo r such bills, w h eth er o n original issue o r o n subsequent purchase, and the a m ou n t actu a lly receiv ed either u pon sale o r red em ption 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 re a su ry D epa rtm en t Circular N o . 418, R evised , and this n otice, prescrib e the term s o f th e T rea su ry bills and g ov e rn the co n d itio n s o f their issue. C op ies o f the circu la r m a y be ob ta in ed fr o m a n y F ed eral R eserve B a n k o r Branch. T h is Bank w ill receive tenders up to 1 :30 p.m ., Eastern D aylight Saving time, M onday, July 28, 1958, at the Securities Department o f its H ea d Office and at its B uffalo Branch. Please use the fo rm on the reverse side o f this circular to submit a tender, and return it in an envelope m arked “ T en d er fo r Treasury Bills.” T enders m ay be submitted b y telegraph, sub je c t to written con firm ation ; they m ay not be submitted b y telephone. P a y m e n t f o r the T r e a s u r y bills c a n n o t b e m a d e b y credit t h r o u g h the T r e a s u r y T a x and, L o a n Account. Settlement m u s t be m a d e in c a s h or other i m m e d i a t e l y available 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 bills. A lfr e d H a y e s , President. b ills d a t e d J u l y 2 4 , 1 9 5 8 , m a t u r i n g O c t o b e r 2 3 , 1 9 5 8 ) T o t a l a pplied fo r . . $2,593,331,000 T o t a l a cce p te d .........$1,700,341,000 (in clu d es $284,852,000 en tered on a n on com p etitiv e basis and a ccep ted in fu ll at the average price sh ow n b e lo w ) R a n g e o f a ccep ted co m p e titiv e b id s : (e x c e p tin g 2 tenders tota lin g $400,000) E quivalent rate o f discou n t 99.757 H ig h ........... a p p rox. 0.961% per annum 99.746 E quivalent rate o f discou n t L o w ........... a p p rox. 1.005% p er annum E quivalent rate o f discou n t A v e ra g e . . . . . . 99.750 a p p rox . 0.988% p er annum (2 per cent o f the a m ou n t b id fo r at th e low price w a s a ccep ted ) F edera l R eserv e D istrict Total A pplied f o r B o s to n ...................... . . . N e w Y o r k ................ P h iladelphia ........... C levelan d ................ R ich m o n d ................ A tla n ta .................... C h ica g o .................... St. L o u is .................. M in neap olis ........... K an sas C ity ........... D allas ...................... San F r a n cis co T o ta l ... $ 51,409,000 1,847,498,000 37,355,000 51,378,000 17,114,000 32,014,000 252,772,000 32,909,000 32,072,000 48,616,000 21,912,000 168,282,000 $2,593,331,000 T otal A ccep ted $ 51,409,000 1,078,348,000 18,395,000 48,378,000 13,134,000 31,214,000 210,012,000 32,709,000 32,072,000 33,656,000 16,912,000 134,102,000 $1,700,341,000 ( over ) No. TENDER FOR 91-DAY TREASURY BILLS Dated July 31, 1958 To F e d e ra l R e se rv e B a n k o f N ew Maturing October 30, 1958 Dated a t .................................... Y o rk , 19... Fiscal A gen t o f the United States. Pursuant to the provisions o f T reasury Department Circular N o. 418, R evised, and to the provisions o f the public notice issued b y the T reasu ry Department and printed on the reverse side o f this tender, the under signed hereby offers to purchase the above described T reasury bills in the amount indicated below , and agrees to make payment th erefor at you r Bank on o r b e fo re the issue date at the price indicated b e lo w : C O M P E T IT IV E T E N D E R Do not fill in both Competitive and Noncompetitive Noncompetitive tenders tenders on on one one form form JJ C $ ............................................................... (m aturity valu e), or any lesser amount that may be awarded. N O N C O M P E T IT IV E T E N D E R $ ............................................................... (m aturity valu e). (N ot to exceed $200,000 fo r one bidder through all sources) P r i c e : .......................................per 100. (P rice must be expressed with not more than three decimal places, f o r example, 99.925) A t the average price o f accepted competitive bids. S u bject to allotment, please issue, deliver, and accept payment fo r the bills as indicated b e lo w : Pieces Denomination $ Maturity value 1,000 5,000 10,000 □ 1. D eliver over the counter to the undersigned □ 2. □ 3. H old in safekeeping ( f o r ac count o f member bank only) □ 4. Allotment attached) □ 5. 100,000 500,000 Ship to the undersigned transfer (see list , 1 000,000 (N o changes in delivery instructions will be accepted) Totals 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 (Payment cannot be made through Treasury T ax and Loan Account) T h e undersigned ( i f a bank o r trust com pan y) hereby certifies that the T reasu ry bills which you are hereby instructed to dispose o f in the manner indicated in item 3 above are solely ow ned by the undersigned. 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 ” (P le a s e p rin t) By ............................. T i t l e ............................... A d d re s s By (O fficia l s ig n a tu r e (s ) re q u ire d ) ...................... . T it le ........... ........................................................................................................ (B anks submitting tenders f o r customer account must indicate name on line below, or 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 con sid e re d , a n d 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 a n k in g in stitu tions w ill n ot be perm itted to subm it ten ders e x ce p t fo r their o w n a ccou n t. B anks su b m ittin g ten ders fo r cu s to m e r a cco u n t m ay co n so lid a te com p etitive tenders at the same price and m ay con so lid a te n o n co m p e titiv e ten ders, 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 b id fo r his a ccou n t, and m e th o d o f pa ym en t. F o r m s f o r this pu rp ose w ill be furnished on request. 3. I f the p e r so 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 corp o ra tio n a u th orized to m a k e the ten d er, and the sign 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 be con stru e d as a representation b y him that he has been s o auth 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 sh ou ld sign in the fo r m “ ..............................................................................................., a cop a rtn ersh ip , b y ................................................................................................................... . a m em b er o f the firm .” 4. T e n d e r s w ill be receiv ed w ith ou t d e p o s it fro m in co rp o ra te d banks and trust com p a n ies and fro m re s p o n sible and re 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 pa ym en t o f 2 p ercen t o f the fa ce a m ou n t o f T rea su ry bills a pp lied fo r , unless the ten ders are a ccom p a n ied b y an ex p ress 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 the 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 rea su ry, is m aterial, the ten der m a y b e disregarded. ( over)
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