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FEDERAL RESERVE BANK O F NEW YORK r Circular No. 4 6 5 4 1 Fiscal Agent o f the United States L October 23, 1958 J O f f e r i n 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 i ll s D ated O cto b e r 3 0, 1 9 5 8 M aturing January 29, 1959 To all Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal R eserv e D istrict: F o l l o w i n g i s t h 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 , T h u rsd a y, O c to b e r 23, 1958. TREASURY DEPARTM ENT W ashington T h e T re a su ry D epartm en t, b y this p u b lic n otice, in vites tenders fo r $1,800,000,000, or thereabouts, o f 9 1-d ay T reasu ry bills, fo r cash and in exch a n ge for T rea su ry bills m aturing O c to b e r 30, 1958, in the a m ou n t o f $1,700,297,000, to be issued on a d iscou n t basis under com p etitive and n on com p etitive bid d in g as hereinafter provided . T h e bills o f this series w ill be dated O c t o b e r 30, 1958, and w ill m ature January 29, 1959, w h en the face a m ou n t w ill be payable 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 va lu e). T e n d e rs w ill be received at F ed eral R eserve Banks and B ran ches up to the clo s in g h our, on e-th irty o ’ c lo ck p.m ., E astern Standard tim e, M on d a y , O c to b e r 27, 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 gton . E a ch tender m u st be fo r an even m u ltiple o f $1,000, and in the case o f com p etitive tenders the price offered m u st be expressed o n the basis o f 100, w ith n ot m ore than three decim als, e.g., 99.925. F ra ction s m ay n ot be used. It is u rged that tenders be m ade o n the printed fo rm s and forw a rd ed in the special en velopes w h ich w ill be supplied b y F ed eral R eserve B anks o r B ran ch es o n application therefor. O th ers than b ankin g institutions w ill n ot be perm itted to su b m it tenders ex cep t fo r their ow n a ccou n t. T en d ers w ill be receiv ed w ith ou t dep osit fro m in corpora ted banks and trust com pa n ies and fro m respon sib le and recog n ized dealers in invest m en t securities. T e n d e rs fro m oth ers m u st be a ccom p a n ied b y p a y m en t o f 2 p ercen t o f the face a m ou n t o f T rea su ry bills a pplied fo r, unless the tenders are a ccom p a n ied b y an exp ress gu aranty o f pa ym en t b y an in corp ora ted ba n k o r trust com pan y. Im m ed ia tely a fter th e clo s in g h our, tenders w ill be op en ed at th e F ed eral R eserve B anks 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 a m ou n t and price 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 reasu 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 a n y such resp ect shall be fin a l S u b je ct to these reservations, n on com p etitive tenders f o r $200,000 or less w ith ou t stated price fro m any on e b idder w ill be a ccep ted in full at the a vera ge price (in three decim a ls) o f a cce p te d 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 Federal R eserve B ank on O cto b e r 30, 1958, in cash o r oth er im m ediately available fu n ds o r in a like face a m ou n t o f T rea su ry bills m aturing O c to b e r 30, 1958. Cash and ex ch a n g e tenders w ill receiv e equal treatm ent. Cash a dju stm en ts w ill be m ade fo r d ifferen ces betw een the par value o f m aturing bills a ccep ted in exch a n ge a n d the issue price o f the new bills. T h e in co m e derived fr o m T rea su ry bills, w hether interest or ga in fro m the sale or oth er d isp osition o f the bills, does not h ave a n y exem p tion , as such, and loss fro m the sale o r oth er disp osition o f T rea su ry bills d oes n ot have a n y special treat m en t, as such, under th e Internal 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 p t fro m all taxation n ow or hereafter im p osed on the principal o r in terest th ere o f b y a n 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 loca l ta x in g authority. F o r pu rposes o f taxation the a m ou n t o f d iscou n t at w h ich T rea su ry bills are o rigin a lly sold 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 od e o f 1954 the a m ou n t o f discou n t at w hich bills issued hereunder are s o ld is n o t con sidered t o a ccru e until such bills are sold, red eem ed o r oth erw ise disp osed of, and such bills are exclu ded fr o m con sid era tion as capital assets. A c c o 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 h ereunder need include in his in com e ta x return on ly the differen ce betw een the p rice pa id fo r such bills, w hether on origin a l issue o r o n subsequen t purchase, and th e 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 h ich the return is m ade, as ord in a ry gain or 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 the T rea su ry bills and govern the con d itio n s o f their issue. C opies o f the circular m a y be obtain ed fr o m a n y F ed eral R eserve B ank o r B ranch. T h i s B a n k w i l l r e c e i v e t e n d e r s u p t o 1 :3 0 p .m ., E a s t e r n S t a n d a r d t i m e , M o n d a y , O c t o b e r 2 7 , 1 9 5 8 , a t t h 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 lo B r a n c h . P le a s e u se th e f o r m o n th e r e v e r s e s id e o f th is c i r c u la r t o s u b m it a te n d e r , a n d r e t u r n it in a n e n v e lo 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 ills .” T e n d e r s m a y b e s u b m itt e d b y t e le 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 it t e d b y te le p h o n e . Payment f o r the Treasury bills cannot be made by credit through the Treasury T ax and Loan Account. immediately available funds or in maturing Treasury bills. Settlement must be ittade m cash or other A lfr e d H ayes, President. Results o f the last offering o f Treasury bills (9 1 -d a y bills dated O ctober 23, 1958, m aturing January 22, 1959) T o t a l applied fo r ........$2,987,173,000 T o t a l a ccep ted ............ $1,800,112,000 (in clu d es $354,854,000 entered on a n on com p etitive basis and a ccep ted in full at the average price sh ow n b elow ) R a n g e o f a ccep ted com p etitive b id s: (e x ce p tin g fou r tenders totalin g $1,515,000) H i g h ..................... 99.300 E q u iva len t rate o f discou nt a p p rox. 2 .769% per annum L o w ..................... 99.289 E q u iva len t rate o f discou nt a p p rox. 2.813% per annum A v e r a g e ............... 99.291 E quivalent rate o f discou nt app rox. 2.804% per annum (31 percen t o f the am ou nt bid fo r at the low price w as a ccep ted ) Federal R eserv e D istrict B o s to n .............................. N e w Y o r k ........................ P h iladelphia ................... C le v e la n d .......................... R ich m on d ........................ A tlanta ............................ C h ica g o ............................ St. L ou is .......................... M in n ea p olis ................... K ansas C ity ................. .. D a lla s ............................ . San F r a n c is c o ................. T otal ........................ T otal A pplied f o r $ Total A ccepted 53,063,000 2,167,554,000 46,273,000 75,247,000 30,537,000 32,406,000 295,416,000 48,062,000 22,524,000 59,967,000 30,554,000 125,570,000 $ 41,851,000 1,181,157,000 25,173,000 64,706,000 26,157,000 25,966,000 204,383,000 43,164,000 17,734,000 45,767,000 20,454,000 103,600,000 $2,987,173,000 $1,800,112,000 (o v e r ) IM P O R T A N T — Please note that closing time is 1 :3 0 p.m ., Eastern Standard time. N o ________ T E N D E R F O R 9 1 - D A Y T R E A S U R Y B IL L S Dated October 30, 1958 To F ederal Maturing January 29 , 1959 Dated a t ................. . R eserve B a n k of N e w Y o rk , time, M onday, October 27, 1958 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 i s i o n s o f t h e p u b l ic 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 t e 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 TE N D E R C D o n ot fill in both Com petitive and NNon oncom competitive petitivetenders tenderson onone onefoforrmm $ .......................................................................... ( 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 . (P r ic e m ust b e exp ressed with not m ore than three decimal places, f o r exam ple, 99.925) Eastern p.m., is 1:30 for receipt of tenders time N O N C O M PE TITIV E TEN DER $ .......... .................................... ......................... ( 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) 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 t o a llo t m 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 t e d b e l o w : Pieces Denomination M aturity value 1,000 5,000 10,000 □ 1. D eliver over the counter to the undersigned □ 2. Ship to the undersigned □ 3. H old in safekeeping ( f o r a c count o f member bank on ly) □ 4. Allotm ent attached) □ 5. Special instructions: 100,000 Closing J1 P r i c e : ............................................. p e r 100. $ Standard 19... transfer (see list 500,000 1,000,000 (N o 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 □ 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 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 ic h y o u a re h e r e b y i n 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 r e 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 v elop e m a rk ed “ T e n d e r _ fo r Treasury Bills” _ (Please print) By .......B y -------------- ----(Official signature(s) required) T i t l e ............................................................................... T itle A d d re s s ......................................................................................................... (B anks submitting tenders fo 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 fo r less than $1,000 w ill b e co n sid ered , 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 o t be perm itted t o subm it ten ders e x ce p t fo r their o w n a cco u n t. B anks su b m ittin g ten ders fo r cu sto 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 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 bid f o 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 be fu rn ish ed on request. 3. I f th e p e rson m a k in g th e ten der is a c o rp o ra tio n , th e ten der s h ou ld b e sign ed b y an o ffice r o f th e co 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 c o n stru e d as a rep resen tation b y him that he h as been s o a u th orized . I f th e ten der is m ade b y a p a rtn ersh ip , it s h ou ld b e sig n ed b y a m e m b e r o f the firm , w h o s h o u ld sig n in the fo r m “ ................................................................................................f a cop a rtn ersh 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 be receiv ed w ith ou t d ep osit fr o m in co rp o ra te d banks and tru st co m p a n ie s and fro m resp o n sib le and re co g n iz e d d ea lers in in vestm en t 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 pa ym en t o f 2 p e rce n t o f the fa c e a m ou n t o f T r e a s u ry bills a pp lied fo r , u n less th e ten ders a re a cco m p a n ie d b y an ex p re s s gu a ra n ty 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 the 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 o p in io n o f the S ecreta ry o f the T re a su ry , is m aterial, th e ten der m a y be disreg arded. (o v e r )
@FedFRASER