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FEDERAL RESERVE BANK OF NEW YORK [ CiroctobM 7,»SB4 7 ] F is c a l A g e n t o f th e U n ite d S ta te s O ffe r in g o f $ 1 ,8 0 0 ,0 0 0 ,0 0 0 o f 9 1 -D a y T r e a s u r y B ills Dated October 16, 1958 Maturing January 15, 1959 T o all In corporated Banks and Trust Companies, and O thers Concerned, in the Second Federal R eserv e D istrict: F o l l o w i n g is th e t e x t o f a n o t ic e p u b lis h e d t o 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 , Tu esday, O cto b e r 7, 1958. TREASU RY W ash ington DEPARTM ENT T h e T reasu ry D epartm ent, by this public notice, invites tenders fo r $1,800,000,000, or thereabouts, o f 91-day T reasu ry bills, f o r cash and in exch a n ge fo r T reasu ry bills m aturing O ctob er 16, 1958, in the am ount o f $1,699,154,000, to be isfu ed on a discou n t basis under com petitive and n on com petitive bid d in g as h ereinafter provided . T h e bills o f this series w ill be dated O cto b e r 16, 1958, and w ill mature January 15, 1959, w hen the face am ount w ill be payable w ithout interest. T h ey w ill be issued in bearer form on ly, and in denom inations o f $1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,000 (m atu rity va lu e). T en ders w ill be received at Federal R eserve Banks and B ranches up to the clo s in g hour, tw o o ’c lo ck p.m., Eastern D a yligh t S a vin g time, F rida y, O ctob er 10, 1958. T en ders w ill not be received at the T reasu ry Departm ent, W a sh in gton . E ach tender must be fo r an even m ultiple o f $1,000, and in the case o f com petitive tenders the price offered must be expressed on the basis o f 100, w ith not m ore than three decim als, e.g., 99.925. F raction s m ay n ot 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 h ich w ill be supplied by Federal R eserve Banks or B ran ches on a pp lication therefor. O thers than banking institutions w ill n ot be perm itted to subm it tenders excep t for their ow n account. T en ders 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 amount o f T reasu ry bills applied for, unless the tenders are accom pa n ied by an express guaranty o f paym ent by an incorporated bank o r trust com pany. Im m ediately after the closin g hour, tenders w ill be opened at the Federal R eserve Banks and B ranches, fo llo w in g w hich public 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 o se subm itting tenders w ill be advised o f the acceptance o r rejection thereof. T h e Secretary o f the T reasu ry exp ressly reserves the righ t to accep t o r reject any o r all tenders, in w hole o r in part, and his action in any such respect shall be final. S u b ject 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 a ls) o f accepted com petitive bids. Settlem ent fo r accepted tenders in a ccord a n ce w ith the bids must be made or com pleted at the Federal R eserve Bank on O ctob er 16, 1958, in cash or other im m ediately availa b le funds o r in a like face am ount o f T reasu ry bills m aturing O ctob er 16, 1958. Cash and exch ange tenders w ill receive equal treatment. Cash adjustm ents w ill be m ade for differences between 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 ga in from the sale or 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 bills are subject to estate, inheritance, g ift or oth er ex cise 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 or interest th ereof by any State, o r any o f the possessions o f the U n ited States, o r by any loca l ta x in g authority. F o r purposes o f taxation the am ount o f discou nt at w hich T reasu ry bills are origin a lly sold by the U nited States is con sidered to be interest. Under S ections 4 5 4(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 until such bills are sold, redeem ed or otherw ise disposed o f, and such bills are exclu ded from con sideration as capital assets. A ccord in g ly , the ow ner o f T reasu ry bills (oth er than life insurance com pan ies) issued hereunder need include in his incom e ta x return on ly the differen ce betw een the price paid fo r such b ills, whether 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 during the taxable year fo r w hich the return is m ade, as ord in a ry gain or loss. T reasu ry D epartm ent C ircu la r N o. 418, R evised, and this notice, prescribe the term s o f the T reasu ry bills and govern the con dition s o f their issue. Copies o f the circu la r m ay be obtain ed from any Federal R eserve Bank or Branch. T h i s B a n k w ill r e c e iv e t e n d e r s u p t o 2 p .m ., E a s t e r n D a y l i g h t S a v i n g t i m e , F r i d a y , O c t o b e r 10, 1 9 5 8 , a t th e S e c u r it ie s D e p a r t m e n t o f its H e a d O f fic e a n d a t its B u f f a l o B r a n c h . P le a s e u s e t h e f o r m o n t h e r e v e r s e s id e o f t h is c i r c u l a r t o s u b m it a t e n d e r , a n d r e t u r n it in a n e n v e l o p e m a r k e d “ T e n d e r f o r T r e a s u r y B i l l s . ” T e n d e r s m a y b e s u b m it t e d b y t e l e g r a p h , s u b j e c t t o w r it t e n c o n f i r m a t i o n ; t h e y m a y n o t b e s u b m itt e d b y te le p h o n e . P a y m e n t j o r t h e T r e a s u r y b il l s c a n n o t b e m a d e b y c r c d i t t h r o u g h t h e T r e a s u r y T a x a n d L o a n A c c o u n t . S e t t l e m e n t m u s t b e m a d e in c a s h o r o t h e r im m e d i a t e l y a v a i l a b le f u n d s o r i n m a t u r in g T r e a s u r y b ills . A l f r e d H a y e s , P r e s id e n t . (C L O S I N G DAY FOR R E C E IP T T H IS C IR C U L A R SU LTS OF DATED TH OSE THE OF W A S P R IN T E D B E F O R E T H E B ID D IN G OCTOBER RESU LTS RELEASE BY T E N D E R S IS F R I D A Y , O C T O B E R 9, 1958 W IL L THE FOR BE TREASURY W ERE RE B IL L S A V A IL A B L E ; ANNOUNCED TREASURY 10 , 19 5 8 ) AFTER DEPARTM ENT. ( over) I M P O R T A N T — P le a s e n o t e t h a t t e n d e r s f o r t h is is s u e m u s t b e r e c e i v e d n o t l a t e r t h a n t w o o ’ c l o c k p .m ., E a s t e r n D a y l i g h t S a v in g t i m e , F r i d a y , O c t o b e r 1 0 , 1 9 5 8 . N o ................................... TE N D E R FOR 91-DAY TREASURY BILLS Closing time for receip t of tenders is 2 p.m ., Eastern D a y lig h t Saving tim e, Friday, October 10,1958 D a te d O c to b e r 16, 1958 To F ederal M a tu r in g J a n u a r y 15, 1959 D a t e d at R eserve B a n k o f N e w Y o r k , 19. F is c a l A g e n t o f th e U n it e d S ta te s . P u r s u a n t t o th e p r o v is io n s o f T r e a s u r y D e p a r t m e n t C ir c u la r N o . 4 1 8 , R e v is e d , a n d t o th e p r o v is i o n s o f th e p u b lic n o t ic e is s u e d b y th e T r e a s u r y D e p a r t m e n t a n d p r in t e d o n th e r e v e r s e s id e o f th is te n d e r , th e u n d e r s ig n e d h e r e b y o f f e r s t o p u r c h a s e th e a b o v e d e s c r ib e d T r e a s u r y b ills in th e a m o u n t in d ic a t e d b e lo w , a n d a g r e e s t o m a k e p a y m e n t t h e r e f o r a t y o u r B a n k o n o r b e f o r e th e is s u e d a te a t th e p r ic e in d ic a t e d b e l o w : C O M P E T IT IV E [ TENDER D o not fill in both Com petitive and ^ N on com petitive tenders on one fo rm $ .......................................................................... ( m a t u r it y v a l u e ) , o r a n y le s s e r a m o u n t th a t m a y b e a w a r d e d . N O N C O M P E T IT IV E TENDER $ .......................................................................... ( m a t u r it y v a l u e ) . (N o t to ex ceed $200,000 f o r one bidder through all sou rces) P r i c e : ............................................. p e r 100. (P rice must be exp ressed with not m ore than three decimal places, f o r exam ple, 99.925) A t th e a v e r a g e p r ic e o f a c c e p t e d c o m p e t it iv e b id s . S u b je c t to a llo tm e n t, p le a s e is s u e , d e liv e r , a n d a c c e p t p a y m e n t f o r th e b ills a s in d ic a te d b e l o w : Pieces Denomination $ M aturity value 1,000 5,000 10,000 □ 1. Deliver 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 only) □ 4. Allotment attached) □ 5. Special instructions: 100,000 500,000 transfer (see list 1,000,000 (N o changes in delivery instructions will be accepted) Total s- Payment will be made as fo llo w s : □ B y charge to our reserve account □ By cash o r other immediately avail able funds □ By 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 Treasury T a x and Loan A cco u n t) T h e u n d e r s ig n e d ( i f a b a n k o r tr u s t c o m p a n y ) h e r e b y c e r t ifie s th a t th e T r e a s u r y b ills w h i c h y o u a re h e r e b y in s t r u c t e d t o d is p o s e o f in th e m a n n e r in d ic a t e d in ite m 3 a b o v e a re s o le ly o w n e d b y th e u n d e r s ig n e d . 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 B ills” _ (Please print) By .................................. T i t l e ............................... A d d re s s .................» B y ............ (Official signature(s) required) T itle ......................................................................................................... (B anks submitting tenders f o r customer account must indicate name on line below, o r attach a list) (Name of customer) (Address) IN S T R U C T IO N S : 1. N o ten der f o r le s s than $1,000 w ill be co n sid e re d , and each ten d er m u st b e fo r an ev en 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 ot be p erm itted to subm it ten ders e x c c p t f o r their o w n a ccou 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 co n so lid a te com p etitiv e tenders at the same price and m a y con 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 a tta ch ed s h o w in g the nam e o f each b id d er, the a m ou n t bid fo r his a cco u n t, and m e th o d o f pa ym en t. F o r m s f o r this p u rp ose w ill b e 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 c o 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 der, and th e sig n in g o f th e ten der b y an officer o f th e co 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 a u th 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 e m b e r 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 fr o m in co rp o ra te d banks a n d trust co m p a n ie s and from re s p o n sib le and re co g n iz e d dealers in in vestm en t securities. T e n d e rs fro m oth ers m u st be a cco m p a n ie d 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 rea su ry bills a pp lied fo r , u nless the ten ders are a cco m p a n ie d b y an ex p re s s 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 la n g u a ge o f this ten der is ch a n g ed 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, the ten der m a y be disreg arded. ( over)
@FedFRASER