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FE D E RA L RESER VE BANK O F N EW YO R K Circular No. 4 6 3 9 September 11, 1958 . Fiscal Agent o f the United States Offering o f $1,800,000,000 o f 91-Day Treasury Bills Dated September 18, 1958 Maturing D ecem ber 18, 1958 To all Incorporated Banks and Trust Companies, and O thers Concerned, in the Second Federal R eserv e D istrict: F ollow in g is the tex t 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, Sep tem ber 11, 1958. TREASURY DEPARTM ENT W ashington T h e T re a su ry D epartm en t, b y this pu blic n otice, invites tenders fo r $1,800,000,000, or thereabouts, o f 91-day T rea su ry bills, fo r cash and in exch a n ge fo r T rea su ry bills m atu rin g S ep tem ber 18, 1958, in the a m ou n t o f $1,701,012,000, t o be issued on a d iscou n t basis under com p etitive and n on com p etitive b idd ing as h ereinafter provid ed . T h e bills o f this series w ill be dated S ep tem ber 18, 1958, and w ill m ature D e ce m b e r 18, 1958, w hen the face a m ou n t w ill be payable w ith ou t interest. T h e y w ill be issu ed 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 a tu rity v a lu e ). T e n d e rs w ill be received at Federal R eserve Banks and B ran ch es up t o the clo s in g hour, on e-th irty o ’ c lo ck p.m ., E astern D a y lig h t Savin g tim e, M on d a y, Septem ber 15, 1958. T en d ers w ill n ot be receiv ed at the T rea su ry D epa rtm en t, W a sh in g to n . E a ch ten der m u st be for an even m u ltiple o f $1,000, and in the case o f com p etitive tenders the price o ffe re d m u st be exp ressed o n the basis o f 100, w ith n ot m o re 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 o n the printed form s and forw a rd ed in the special en velopes w h ich w ill be supplied b y F ed eral R e serv e B anks o r B ra n ch es o n application therefor. O th e rs than b ank in g institutions w ill n ot be perm itted to su b m it tenders e x ce p t fo r their ow n a ccou n t. T en d ers w ill be received w ith ou t dep osit from in corp ora ted banks and trust com panies and fr o m respon sib le and recog n ized dealers in in vest m en t securities. T e n d ers fro m others m u st be a ccom p a n ied b y p a y m en t o f 2 percen t o f the face a m ou n t o f T rea su ry bills applied fo r, 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 open ed at th e F ed eral R eserve Banks and B ran ches, fo llo w in g w hich p u b lic 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 am ou nt and p rice ran ge o f a ccep ted bids. T h o s e subm itting ten ders 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 rea su ry ex p ressly reserves the righ t to a ccep t o r re je ct any o r all tenders, in w h ole or in part, and his a ction in any such resp ect shall be final. S u b je ct to these reservations, n on com p etitive tenders fo r $200,000 or less w ith ou t stated p rice fro m any on e bidder w ill be a ccep ted in full at the a vera ge 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 or com p leted at the F ed eral R e serv e B ank on S ep tem ber 18, 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 a tu rin g S ep tem ber 18, 1958. Cash a n d exch a n ge ten ders w ill receiv e equal treatm ent. Cash adju stm en ts w ill be m ade fo r d ifferen ces betw een the pa r 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 fr o m the sale or oth er d isp osition o f th e bills, d oes n ot have a n y exem ption , as such, and loss fro m th e sale or oth er disp osition o f T rea su ry bills does n ot have a n y sp ecia l treat m en t, as such, under th e In tern al R even u e C od e o f 1954. T h e bills are su b ject to estate, inheritance, g ift or oth er excise taxes, w hether F ed eral o r State, but are exem pt fro m all ta xation n o w o r h ereafter im p osed on the principal o r interest th ereof b y a n 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 loca l ta x in g authority. F o r pu rposes o f taxation th e a m ou n t o f d iscou n t at w h ich T rea su ry bills are origin a lly s o ld b y the U n ited States is con sid ered t o be interest. U n der 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 a m ou n t o f discou n t at w h ich bills issued hereunder are s o ld is n o t con sid ered to a ccru e until such bills are sold , redeem ed o r oth erw ise disp osed o f, and such bills are exclu ded fro m con sid era tion 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 com p a n ies) issued hereunder need include in his in com e ta x return on ly the difference betw een the price pa id fo r such bills, w h eth er on origin a l issue o r o n subsequen t purchase, and the a m ou n t actu ally received either u pon sale or redem ption at m aturity d u rin g the taxable year fo r w hich the return is m ade, as ordinary gain o r loss. T re a su ry D epa rtm en t C ircu lar 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 th e con d ition s o f their issue. C opies o f the circular m a y be obtain ed fro m a n y F ed eral R e serv e B ank or B ranch. T his Bank will receive tenders up to 1 :30 p.m ., Eastern D aylight Saving time, M on day, Septem ber 15, 1958, at the Securities 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 cir cular to subm it a tender, and return it in an envelope marked “ T ender fo r T reasu ry B ills.” Tenders may be submitted b y telegraph, su bject to written con firm ation ; they m ay 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 or the Treasury in m a t u r i n g Tax and Treasury Loan Account. Settlement must be made in c a s h or other ....................... bills. A l f r e d H a y e s , President. R esults o f the last offerin g o f T re a su ry bills (9 1 -d a y bills d a ted Septem ber 11, 1958, m a tu rin g D e ce m b e r 11, 1 9 5 8 ) T o ta l applied fo r ........$2,549,532,000 T o t a l a ccep ted ............ $1,800,142,000 (in clu d es $353,790,000 entered on a n on com p etitive 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 ccep ted com p etitive b id s: H i g h ..................... 99.419 E quivalent rate o f discou nt a p p rox . 2.298% per annum L o w ..................... 99.398 E quivalent rate o f discou n t a p p rox. 2.382% per annum A v e r a g e ............... 99.404 E q u iva len t rate o f discou nt a p p rox. 2.359% per annum (96 p ercen t o f the am ou nt b id fo r at the low price w as a ccep ted) Federal R eserve D istrict B o s to n .............................. N e w Y o r k ....................... P h iladelphia ................... C leveland ....................... R ich m o n d ........................ A t la n t a .............................. C h ica g o ............................ St. L ou is .......................... M in neapolis ................... K ansas C ity ................... D allas .............................. San F r a n cis co ............... T o t a l ........................ Total A pplied f o r $ Total A ccepted 40,802,000 1,783,646,000 41,054,000 60,119,000 22,627,000 53,691,000 259,752,000 32,227,000 18,860,000 89,393,000 29,380,000 117,981,000 $ 30,802,000 1,127,456,000 30,734,000 60,119,000 22,627,000 48,359,000 222,162,000 32,227,000 18,252,000 74,293,000 25,770,000 107,341,000 $2,549,532,000 $1,800,142,000 ( over ) TENDER FOR 91 -D A Y TREASURY BILLS Dated September 18, 1958 To F ederal R eserve B a n k o f N e w Maturing December 18, 1958 Dated a t ......................... Y ork, 19... Fiscal A gen t o f the U nited States. Pursuant to the p rovisions o f T reasu ry Departm ent Circular N o. 418, R evised, and to the provision s o f the public notice issued by the T reasu ry Departm ent and printed on the reverse side o f this tender, the under signed hereby o ffers to purchase the above described T reasu ry 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 price indicated b e lo w : C O M P E T IT IV E T E N D E R E D o not fill in both Com petitive and NN o on « c com o m pe«,ive,enderS n oone n ' f fo o rrmm petitive tendersoon $ ................................................................(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 atu rity va lu e). (N o t to ex ceed $200,000 f o r one bidder through all sources) P r i c e : ....................................... p er 100. (P r ic e m ust be exp ressed with not m ore than three decimal places, f o r exam ple, 99.925) A t the average p rice o f accepted com petitive 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 a c count o f member bank on ly) □ 4. A llotm ent attached) □ 5. Special instructions: 100,000 500,000 Ship to the undersigned transfer (see list 1,000,000 (N o Totals changes in delivery instructions will be accepted) Paym ent 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 reasu ry bills. P ay cash adjust ment, if 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 p a n y) hereby certifies that the T reasu ry bills w hich y o u 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 prin 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 co n sid e re d , and each ten der m u st be fo r an even m u ltip le 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 p erm itted to 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 c u s to m e r a cco u n t m a y co n so lid a te com p etitiv e ten ders at the same price and 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 th e 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 fo r this p u rp ose w ill be fu rn ish ed o n request. 3. I f th e p e r so n m a k in g the ten d er is a c o rp o ra tio n , the ten der s h ou ld be sign ed b y an o ffice r o f th e c o r p o r a tio n a u th o rize d to 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 c o r p o r a tio n w ill be co n stru e d as a represen tation b y him that he has b een 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 “ ................................................................................................ , a co p a rtn e rsh 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 b e 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 fro m re s p o n sib le a n d re co g n iz e d dealers in in vestm en t securities. T en d ers fr o m o th e rs m u st b e a cco m p a n ie d b y pa ym en t o f 2 p e rce n 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 , u n less the ten ders are a cco m p a n ie d b y an ex p re s s gu a ra n ty o f pa 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 the 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 h ich , in the o p 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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