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FEDERAL RESERVE BANK OF NEW YORK C ir cu la r N o. 4 6 2 5 J u ly 31, 1958 Fiscal Agent o f the United States Offering o f $1,700,000,000 o f 91-Day Treasury Bills Dated August 7, 1958 Maturing November 6, 1958 T o all Incorporated B anks 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 tod a y : TREASU RY DEPARTM EN T W ashington 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, Ju ly 31, 1958. T h e T re a su ry D epartm en t, b y this pu blic n otice, invites tenders for $1,700,000,000, o r thereabouts, o f 91-day T rea su ry b ills, fo r cash and in exch a n ge fo r T rea su ry bills, m a tu rin g A u g u s t 7, 1958, in the am ou nt o f $1,700,410,000, to be issued on a d isco u n t basis under com p etitive and n on com p etitive b id d in g as h ereinafter provided . T h e bills o f this series w ill be dated A u g u s t 7, 1958, and w ill m ature N o v e m b e r 6, 1958, w h en the face am ou nt 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 a tion s o f $1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,000 (m atu rity v a lu e ). T e n d e rs w ill be received at F ed eral R e serv e Banks and B ran ches up to the clo s in g h our, on e-th irty o ’ c lo ck p.m ., Eastern D a y lig h t S a vin g tim e, M on d a y, A u g u st 4, 1958. T en d ers w ill n ot be received at the T rea su ry D epartm en t, W a sh in g ton . 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 ore than three decim als, e .g ., 99.925. F ra ction s m a y n ot be used. It is u rged that tenders be m ade on the printed fo rm s and forw a rd ed in th e special en velop es w h ich w ill be supplied b y F ed eral R eserve Banks or B ran ch es o n application therefor. O th e rs than b ank in g institutions w ill n ot be perm itted to subm it tenders e x cep t fo r their o w n a ccou n t. T en d ers w ill be received w ith ou t d ep o sit from in corp ora ted banks and trust com panies and fro m respon sib le and re co g n iz e d dealers in invest m en t securities. T en d ers fro m oth ers m u st be a ccom p a n ied b y p a ym en t o f 2 percent 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 exp ress gu aranty o f p a ym en t b y an in corp ora ted b a n k or trust com pan y. Im m ed ia tely after the clo s in g h our, tenders w ill be op en ed at th e Federal R eserve B anks and B ra n ch es, fo llo w in g w hich pu blic a nn oun cem ent w ill be m ade b y the T rea su ry D ep a rtm en t o f the a m ou n t and p rice range o f a ccep ted bids. T h o s e subm itting te n d e rs w ill be advised o f the a ccep ta n ce o r rejection th ereof. T h e S ecreta ry o f the T reasu ry exp ressly reserves the righ t to a ccep t o r reject any o r all tenders, in w h ole or in part, and his a ction in a n y such resp ect shall be final. S u b ject to th ese reservations, n on com p etitive tenders fo r $200,000 or less w ith ou t stated price fro m any o n e bidder w ill be accepted 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 o r com p leted at the Federal R eserve B ank on A u g u st 7, 1958, in cash or oth er im m ediately available fun ds o r in a like face a m ou n t o f T rea su ry bills m aturing A u g u st 7, 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 atu rin g 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 g a in from the sale or oth er d isp osition o f the bills, does not have any exem p tion , as such, and loss fro m the sale or oth er disposition o f T reasu ry bills d oes n ot have a n y special treat m en t as such, under 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 o r oth er excise taxes, w hether Federal o r State, but are exem p t fro m all ta xation n o w or hereafter im p osed on the principal or in terest th ereof b y any 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 loca l taxing authority. F o r pu rposes o f taxation the am ou nt o f discou n t at w h ich T rea su ry bills are origin a lly sold b y the U n ited States is con sidered 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 ode o f 1954 the am ou nt o f discou nt at w h ich bills issued hereunder are so ld is n ot con sidered to a ccru e until such bills are sold, redeem ed or oth erw ise disp osed of, and such bills are exclu ded fr o m con sideration as capital assets. A c co r d in g ly , the ow n er o f T r e a s u ry bills (o th e r than life insurance co m p a n ie s ) issued h ereunder need include in his in com e ta x return on ly the difference betw een the price paid fo r such bills, w h eth er on origin al 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 yea r fo r w hich the return is m ade, as ordinary gain or loss. T re a su ry D epartm en t Circular N o. 418, R evised , and this n otice, prescribe the term s o f the T rea su ry bills and go v e rn the con d ition s o f their issue. C opies o f the circular m a y be obtain ed fro m any Federal R eserve B ank o r B ran ch. T h is Bank will receive tenders up to 1 :30 p.m ., Eastern Daylight S aving time, M on day, A u gu st 4, 1958, at the S ecuri ties Departm ent o f its H ead Office and at its B uffalo Branch. Please use the fo rm on the reverse side o f this circular to subm it a tender, and return it in an envelope marked “ T e n d er fo r T reasu ry Bills.” Tenders m ay be submitted b y telegraph, su bject to written confirm ation; they may n ot be subm itted by telephone. P a y m e n t f o r t h e T r e a s u r y bills cannot be m a d e immediately b y credit t h r o u g h available f u n d s the T r e a s u r y o r in maturing Tax and Treasury Loan Account. Settlement must be made in cash or other bills. A l f r e d H a y e s , President. R esults o f the last offe rin g o f T re a su ry bills (9 1 -d a y bills d a ted J u ly 31, 1 958, m a tu rin g O cto b e r 30, 1 9 5 8 ) T o ta l applied fo r ........$2,754,152,000 T o ta l a ccep ted ............ $1,700,497,000 (in clu des $255,801,000 entered on a n on com p etitv e basis and a ccep ted in full at the average price sh ow n b elow ) R a n g e o f a ccepted com p etitive b ids: H i g h ..................... 99.767 L o w ..................... 99.746 A v e r a g e ............... 99.751 E quivalent rate approx. 0.922% E q u iva len t rate approx. 1.005% E quivalent rate a pp rox. 0.984% o f discount per annum o f discou nt per annum o f discount per annum (47 percent o f the am ou nt bid for at the low price was a ccep ted ) Federal R eserve D istrict Total A pplied f o r .... N ew Y o r k ................. .... P h iladelphia ............. C leveland ................... R ich m o n d ................... Atlanta ........................ St. L ou is ..................... M in n eap olis .............. K an sas C ity .............. San F ra n cisco .......... T o t a l ........................ .... $ 37,294,000 1,978,147,000 40,033,000 72,071,000 17,528,000 30,472,000 304,329,000 35,728,000 16,823,000 43,082,000 26,436,000 152,209,000 $2,754,152,000 Total A ccepted $ 25,294,000 1,049,192,000 23,443,000 67,421,000 16,528,000 30,172,000 224,269,000 ' 35,728,000 * 16,723,000 43,082,000 17,436,000 151,209,000 $1,700,497,000 ( over ) No...... T E N D E R F O R 91 -D A Y T R E A S U R Y BILLS D a te d A u g u s t 7 , 1958 M a tu rin g N o v e m b e r 6, 1958 Dated a t ......................... T o F e d e ra l R eserve B a n k o f N ew Y ork , Fiscal A gen t o f the U nited States. 19... Pursuant to the provisions o f T reasu ry Departm ent Circular N o. 418, Revised, and to the p rovisions o f the public notice issued by 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 Treasury bills in the amount indicated below , and agrees to make paym ent th erefor at you r Bank on o r b e fo re the issue date at the p rice indicated b e lo w : C C O M P E T IT IV E T E N D E R D o not fill in both Competitive a n d Noncompetitive Noncompetitive tenders tendersoonn one oneffoorrmm $ ................................................................( maturity valu e), or any lesser am ount that m ay be awarded. JJ N O N C O M P E T IT IV E T E N D E R $ ................................................................(m aturity va lu e). ( N o t to exceed $200,000 for one bidder through all sources) P r i c e : ....................................... per 100. (Price m u s t be expressed with not m o r e than three decimal places, for example, 99.925) A t the average price o f accepted com petitive bids. S u bject to allotment, please issue, deliver, and accept payment fo r the bills as indicated b elow : Pieces Denomination $ Maturity value 1,000 5,000 10,000 □ 1. Deliver ov er the counter to the undersigned □ 2. □ 3. H old in safekeeping ( f o r ac count o f member bank on ly) □ 4. Allotm ent attached) □ 5. 100,000 500,000 Ship to the undersigned transfer (see list Special instructions: 1,000,000 (No 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 □ By cash or other immediately avail able funds □ B y surrender o f $ ................. (m aturity value) o f maturing Treasu ry bills. P ay cash adjust ment, if any— □ B y check □ B y credit to our reserve account ( P a y m e n t cannot be m a d e through Trea s u r y T a x a n d L o a n Acc o u n t ) T h e undersigned ( i f a bank o r trust com p a n y) hereby certifies that the T reasu ry bills which y ou -a re hereby instructed to dispose o f in the manner indicated in item 3 above are solely ow ned b y the undersigned. 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 ” (P le a s e prin t) By .................................................................... . B .y. (O fficia l s ig n a t u r e (s ) re q u ire d ) T i t l e ............................................................................... T it le ........... 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 te n d e r fo r less than $1,000 w ill be co n sid ered , and each ten d er m u st b e fo r an ev en 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 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 s a m e price a n d 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 fo r his a ccou n t, a n d 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 fu rn ish ed on request. 3. I f th e p e r so n m a k in g the ten der is a co rp o ra tio n , th e ten der sh ou ld be sign ed b y an o ffice r o f the co r p o r a tio n a u th o rize d to m a k e th e 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 representation b y him that he has been 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 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 “ ................................................................................................f 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 o u 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 from resp o n sible a n d re c o 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 paym ent 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 th e ten ders are a ccom p a n ied b y an exp ress gu aranty o f p a 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 ed in a n y resp ect, w hich, in the op in io n o f the S ecreta ry o f the T re a s u ry , is m aterial, th e ten der m a y b e disregarded. ( over )
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