The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
FEDERAL RESERVE BANK O F NEW YORK r Circular No. 4 6 3 8 1 L September 4 , 1958 J Fiscal Agent o f the United States Offering o f $1,80 0,00 0,0 00 o f 91-Day Treasury Bills Dated September 11, 1958 Maturing December 11, 1958 To all Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal Reserve District: 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 , S ep tem ber 4, 1958. TREASU RY DEPARTM EN T W a s h in g to n T h e T r e a s u ry D epa rtm en t, b y this p u b lic n otice, invites tenders fo r $1,800,000,000, o r th ereabouts, o f 9 1-d ay 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 S ep tem ber 11, 1958, in the a m ou n t o f $1,700,209,000, t o be issued o n a d isco u n t basis u nder co m p etitiv e and n on com p etitiv e b id d in g as h erein a fter provid ed . T h e bills o f this series w ill b e dated S e p te m b e r 11, 1958, and w ill m ature D e ce m b e r 11, 1958, w h en the face a m ou n t w ill be pa ya b le w ith ou t in terest. T h e y w ill be issued in bearer fo r m on ly , and in den om in a tion s o f $1,000, $5,000, $10,000, $100,000, $500,000 a n d $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 an ks and B ra n ch es up to the c lo s in g h ou r, o n e-th irty o ’ c lo c k p.m ., E astern D a y lig h t S a v in g tim e, M on d a y , S ep tem ber 8, 1958. T e n d e rs w ill n ot be receiv ed at th e T rea su ry D epa rtm en t, W a s h in g to n . E a ch ten der m u st be fo r an even m u ltiple o f $1,000, and in th e case o f com p etitiv e ten ders th e p rice offered 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 ra ction s m a y n ot be u sed. It is u rged that ten ders be m a d e o n th e p rin ted fo rm s and forw a rd ed in th e special en velop es w h ich w ill b e su p plied b y F ed era l R e serv e B an ks o r B ra n ch es o n a p p lica tion th erefor. 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 ce p t fo r th eir o w n a ccou n t. T e n d e rs w ill be re ce iv e d w ith o u t d e p o s it fr o m in corp ora ted banks and trust com p a n ies a n d fro m resp on sib le and re co g n iz e d dea lers in in vest m en t secu rities. 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 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 ccom p a n ied b y an ex p re s s gu a ra n ty o f p a ym 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 clo s in g h our, ten ders w ill be op en ed at the F ed era l R e serv e B an ks and B ra n ch es, fo llo w in g w h ich p u b lic a n n o u n ce m e n t w ill be m ade b y th e T r e a s u ry D ep a rtm en t o f th e a m ou n t a n d p rice ran ge o f a cce p te d 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 th e righ t to a cce p t o r re je ct any o r all ten ders, in w h o le o r 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 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 a vera ge price (in three decim a ls) o f a ccep ted com p etitiv e bids. S ettlem ent fo r a ccep ted tenders in a ccord a n ce w ith the bids m u st be m ade or com p le te d at the Federal R e serv e Bank on S ep tem ber 11, 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 rea su ry bills m aturing S ep tem ber 11, 1958. Cash and ex ch a n g e ten ders w ill receiv e equal treatm ent. Cash adjustm ents w ill be m ade fo r d ifferen ces betw een the par value o f m aturing bills a ccep ted in ex ch a n g e 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 h eth er interest o r gain fr o m the sale o r oth er d isp osition o f the bills, d oes n o t have any e x e m p tion , as such, and loss fr o m th e sale o r oth er d isp osition o f T r e a s u ry b ills d o e s n ot have a n y special treat m en t, as such, under the 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 o r oth er excise taxes, w h e th e r F ed eral o r State, but are exem p t fr o m all taxation n o w o r hereafter im p osed o n th e principal o r interest 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 iscou n t at w h ich T rea su ry bills are o rig in a lly s o ld b y th e U n ited States is con sid ered t o be interest. U n d er 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, a n d such bills are exclu ded fr o m con sidera tion as capital 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 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 f o r such bills, w h eth er o n origin al issue o r o n subsequent purchase, and the a m ou n t actu a lly received either 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 re a su ry D epa rtm en t C ircu la r N o . 418, R evised , and this n otice, p rescrib e th e term s o f th e T rea su ry bills and g o v e rn the co n d itio n s o f their issue. C o p ie s o f th e circular m a y be obtain ed fr o m any F ed eral R e serv e B ank o r B ranch. T h is Bank will receive tenders up to 1 :30 p.m ., Eastern Daylight S aving time, M on day, Septem ber 8, 1958, at the S ecu ri 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 ender fo r T reasu ry Bills.” T enders m ay be submitted b y telegraph, subject to written con firm a tion ; they m ay not be submitted by telephone. Payment f or 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 Treasury bills (91 -day bills dated September 4 , 1958, maturing December 4 , 1958) T o ta l a pp lied fo r . . .$2,567,874,000 T o ta l a cce p te d ......... $1,800,427,000 (in clu d es $235,389,000 en tered on a n on co m p e titiv e basis and a ccep ted in fu ll at th e a vera ge p rice sh ow n b e lo w ) R a n g e o f a ccep ted co m p etitive b id s : (e x ce p tin g fou r ten ders tota lin g $800,000) E q u iva len t rate o f discou n t H ig h .................. 99.400 a p p rox . 2 .374% per annum L o w .................... E q u iva len t rate o f discou n t 99.369 a p p rox. 2 .496% p er annum E q u iva len t rate o f discou n t A v e ra g e ........... 99.378 a p p rox . 2 .462% p er annum (35 p ercen t o f th e am ou nt bid fo r at the lo w price w as a ccep ted ) Federal Reserve District 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 n eap olis ............. K an sas C ity ............. D allas ........................... San F r a n cis co ......... T o t a l ........... Total Applied fo r $ 28,214,000 1,913,223,000 32,873,000 60,384,000 13,878,000 36,280,000 240,826,000 26,345,000 13,383,000 55,591,000 19,791,000 127,086,000 $2,567,874,000 Total Accepted $ 25,214,000 1,224,623,000 22,608,000 52,134,000 13,878,000 32,730,000 207,844,000 26,345,000 12,583,000 42,591,000 19,791,000 120,086,000 $1,800,427,000 ( over ) N o............... TENDER FOR 91-DAY TREASURY BILLS Dated September 11, 1958 To F e d e ra l R eserv e B a n k o f N ew Maturing December 11, 1958 Dated a t .................................... Y o rk , 19... Fiscal A gen t o f the U nited States. Pursuant to the provisions o f Treasury Department Circular N o. 418, R evised, and to the provisions 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 o ffers to purchase the above described Treasury bills in the amount indicated below , and agrees to make payment th erefor at you r Bank on or b efore the issue date at the price 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 Com petitive and N on com petitive tenders on one fo rm $ ............................................................... (m aturity va lu e), o r any lesser amount that m ay be awarded. J 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 ex ceed $200,000 f o r one bidder through all sou rces) P r i c e : .......................................p er 100. (P r ic e m ust be expressed with n ot m ore than three decimal places, f o r exam ple, 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 $ M aturity 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 on ly) □ 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 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 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 T reasury T a x and Loan A ccou n t) 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 h ereby 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 ............................................... .................... , B y ................ (O fficia l s ig n a tu r e (s ) re q u ire d ) T i t l e ............................................................................. . T itle _ A d d re s s ........................................................................................................ (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 f o r less than $1,000 w ill be con sid e re d , and each ten der m u st be fo r an even m u ltiple o f $1,000 (m a tu rity va lu e). 2. O th e rs than b ankin 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 ow n a ccou n t. B an k s s u b m ittin g ten ders f o r cu sto m e r a cco u n t m a y co n so lid a te com p etitive 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 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 paym ent. F o r m s fo r this p u rp o s e w ill be fu rn ish ed o n 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 s h ou ld be 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 ke 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 be co 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 partn 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 “ ..............................................................................................., a cop a rtn ersh ip , b y ................................................................................................................... , a m em b er o f the firm .” 4. T e n d e rs 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 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 p a ym en t o f 2 p ercen t o f the fa ce a m ou n t o f T r e a s u ry bills a pp lied fo r, u nless the ten ders are a ccom p a n ied b y an exp ress gu aranty o f paym ent b y an in co rp o ra te d bank o r trust com p a n y . 5. I f th e lan gu age o f this ten der is ch a n g ed in any resp ect, 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 be disregarded. ( over)
@FedFRASER