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FEDERAL RESERVE BANK OF NEW YORK No. 4665*1 r cCircular i November 20, 1958 J I p Fiscal Agent o f the United States Offering o f $ 1 ,80 0,00 0,0 00 o f 90-Day Treasury Bills Dated November 28, 1958 Maturing February 26, 1959 T o all In corporated Banks and Trust Com panies, and O thers Concerned, in the Second Federal R eserv e D istrict: Following is the text o f a notice published today: 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 ay, N o vem b er 20, 1958. TREASURY W ash in gton DEPARTM ENT T h e T re a su ry Departm ent, by this pu blic notice, invites tenders fo r $1,800,000,000, or thereabouts, o f 90-day Treasu ry b ills, fo r cash and in exch a n ge for T rea su ry bills m aturing N ovem ber 28, 1958, in the am ount o f $1,799,938,000, to be issued on a discou n t basis under com petitive and n on com petitive b id d in g as h ereinafter provided . T h e bills o f this series w ill be dated N ovem ber 28, 1958, and w ill mature F ebru ary 26, 1959, when the fa ce 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 valu e). T en ders w ill be received at Federal R eserve Banks and Branches up to the clo s in g hour, on e-thirty o ’c lo ck p.m., Eastern Standard tim e, M on day, N ovem ber 24, 1958. T en ders w ill not be received at the T reasu ry Departm ent, W a sh in gton . Each tender m ust be fo r an even m ultiple o f $1,000, and in the case o f com petitive tenders the price offered m ust be exp ressed on the basis o f 100, w ith n ot 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 hich w ill be supplied b y Federal R eserve Banks or B ran ches on application therefor. O thers than banking institutions w ill n ot be perm itted to subm it tenders excep t fo r 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 oth ers must be accom pa n ied by paym ent o f 2 percent o f the fa ce am ount o f T rea su ry bills applied fo r, unless the tenders are accom pa n ied by an express guaranty o f paym ent b y an in corporated bank or trust com pany. Im m ediately a fter the closin g hour, tenders w ill be open ed at the F ed eral R eserve Banks and B ranches, fo llo w in g w hich pu blic announcem ent w ill be made by the T reasu ry D epartm ent o f the am ount and p rice range o f accepted bids. T h o se subm itting tenders w ill be advised o f the acceptance or rejection thereof. T h e S ecretary o f the T rea su ry exp ressly reserves the righ t to accept o r reject any or all tenders, in w hole o r in part, and his action in any such respect shall be final. S ubject to these reservations, noncom petitive tenders fo r $200,000 or less w ithout stated p rice 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 m ust be made or com pleted at the Federal R eserve Bank on N ovem b er 28, 1958, in cash o r oth er im m ediately available funds o r in a like face am ount o f T reasu ry bills m aturing N ovem ber 28, 1958. Cash and exch a n ge 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 a ccepted 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, w hether interest o r gain from the sale o r other disp osition o f the bills, does not have any exem ption, as such, and loss fro m the sale or oth er disposition 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 b ills are subject to estate, inheritance, g ift or other e x cis e 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 n t at w hich T reasu ry bills are o rigin a lly sold by the U nited States is con sid ered to be interest. U nder S ection s 454(b) and 1221(5) o f the Internal Revenue C ode o f 1954 the amount o f discou n t at w hich bills issued hereunder are so ld is not con sid ered to a ccru e until such bills are sold, redeem ed o r oth erw ise disp osed of, and such bills are exclu ded from con sideration as capital assets. A cco r d in g ly , the ow n er o f T rea su ry bills (oth er than life insurance com pa n ies) issued hereunder need in clude in his incom e ta x return on ly the differen ce between the price paid f o r such bills, w hether on origin al issue o r o n subsequent purchase, and the am ount actu ally receiv ed either upon sale o r redem ption at m aturity du rin g the ta x ab le year fo r w hich the return is m ade, as ord in a ry gain o r loss. T re a su ry Departm ent C ircu lar N o. 418, R evised , and this notice, prescribe the term s o f the T reasu ry bills and govern the con ditions o f their issue. Copies o f the circu la r m ay be obtain ed from any F ed eral R eserve Bank o r Branch. This Bank will receive tenders up to 1 :30 p.m., Eastern Standard time, Monday, November 24, 1958, at the Secur ities Department o f its Head Office and at its Buffalo Branch. Please use the form on the reverse side of this circular to submit a tender, and return it in an envelope marked “ Tender for Treasury Bills.” Tenders may be submitted by tele graph, subject to written confirmation; they may not be submitted by telephone. P a y m e n t f o r t h e T r e a s u r y bills c a n n o t be made by credit t h r o u g h the Treasury diately available f u n d s o r i n m a t u r i n g Tax and Loan Account. Settlement must be made in c a s h or other i m m e T r e a s u r y bills. A lfred H ayes, President. R esults o f the last offerin g o f T reasu ry b ills (9 1 -da y b ills d a ted N o v e m b e r 20, 1958, m aturing F e b ru a ry 19, 1959) T o ta l applied f o r .........$2,998,074,000 T ota l a c c e p t e d .............$1,802,871,000 (in clu des $301,272,000 entered on a noncom petitive basis and a ccepted in fu ll at the a ver age price show n b elow ) R ange o f accepted com petitive b id s : H i g h ....................... 99.300 E quivalent rate o f discount app rox. 2.769% per annum L o w .......................... 99.272 Equivalent rate o f discount 2.8807c per annum A v e r a g e ................. 99.273 Equivalent rate o f discount approx. 2.876% per annum (76 percent o f the amount b id fo r at the low price w as accep ted) Federal R eserve D istrict .. N ew Y o r k ................. ... Philadelphia .............. C leveland ................... R ich m on d ..................... Atlanta ....................... St. L ou is ................... M in n e a p o lis ............... K an sas C ity ............. San F ra n cisco ......... T o t a l ........................ Total A ccepted Total A pplied for .. $ 34,342,000 2,105,307,000 54,890,000 59,797,000 36,555,000 32,025,000 382,625,000 25,034,000 21,817,000 64,390,000 24,796,000 156,4%,000 $2,998,074,000 Please n o te that th e cu rren t o ffe rin g is fo r 90-day T rea su ry b ills. $ 16,087,000 1,165,596,000 19,055,000 31,538,000 20,755,000 27,923,000 326,095,000 21,301,000 16,853,000 34,930,000 23,846,000 98,892,000 $1,802,871,000 ( over) I M P O R T A N T — P le a s e n o t e t h a t t h is o f f e r i n g is f o r 9 0 - d a y T r e a s u r y b i l l s , w h i c h b e d a t e d Friday, N ovem b er 28, 1958. w ill N o............................ TENDER FOR 90-DAY TREASURY BILLS D a te d N o v e m b e r 28, 1958 To F R ederal eserve B a n k of N ew Y o r k M a tu r in g F e b r u a r y 2 6 , 1959 Dated at , Fiscal Agent o f the United States. 19. Pursuant to the provisions o f Treasury Department Circular No. 418, Revised, and to the provisions of the public notice issued by the Treasury Department and printed on the reverse side of this tender, the under signed hereby offers to purchase the above described Treasury bills in the amount indicated below, and agrees to make payment therefor at your Bank on or before the issue date at the price indicated below : 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 Non oncom competitive petitive tenders tenders on on one one fo form rm $ ........................................................ (maturity value), or any lesser amount that may be awarded. P r i c e :.................................. per 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) J N O N C O M P E T IT IV E T E N D E R $ ........................................................ (maturity value). (N o t to exceed $200,000 f o r one bidder through all sources) At the average price of accepted competitive bids. Subject to allotment, please issue, deliver, and accept payment for the bills as indicated below: 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 ac count o f member bank on ly) □ 4. Allotm ent attached) □ 5. Special instructions: 100,000 500,000 transfer (see list 1,000,000 (N o changes in delivery instructions will be accepted) Totals- 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 Treasu ry bills. P a y 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 L oan A cco u n t) The undersigned (if a bank or trust company) hereby certifies that the Treasury bills which you are hereby instructed to dispose of in the manner indicated in item 3 above are solely owned by the undersigned. N am e o f su b scrib er Insert this tender in special en velope m a rk ed **T e n d er __ fo r Treasury B ills” _ (P lease print) By .................................. T i t l e ............................... A d d re s s ......... . By . . . . . . . . (Official signature(s) required) T itle ......................................................................................................... (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 ddress) IN S T R U C T IO N S : 1. N o ten d er f o r less 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 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 ot be p erm itted t o subm it ten ders e x c e 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 c u sto 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 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 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 f o r his a cco u n t, and m e th o d o f p a ym en t. F o r m s f o r this p u rp o s e w ill be fu rn ish ed on request. 3. I f th e p e r s o n m a k in g the ten d er is a c o rp o ra tio n , th e ten der s h ou ld be sign ed b y an o ffice r o f th e co rp o ra tio n a u th o rize d to m a k e th e ten der, a n d the 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 h as been s o a u th orized . I f th e ten der is m ade b y a partnersh ip, it sh ou ld b e 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 th e firm .” 4. T e n d e r s w ill be receiv ed w ith o u 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 s p o n sib le a n d r e 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 ust 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 r e a s u ry bills a p p 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 pa ym en t b y an in co rp o ra te d ba 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 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 b e disreg arded. ( over) A t U665 FEDERAL RESERVE BANK O F NEW YORK November 20, 1958. T o A ll Banking Institutions in the Second F ederal R eserve D istrict: W e are pleased to announce that S a d d le B rook S ta te B ank, Saddle Brook, New Jersey, a newly organized bank which was admitted to member ship in the Federal Reserve System on June 2, 1958, has officially opened its doors fo r business today. The capital o f the bank is $150,000, and its surplus, $250,000. Officers of the bank a r e : F red W o its c h e c k Chairman I r w in W . S ilv e r m a n President F red Vice President S. W a lte r M. Jam es P au l E. C on rad G ray H oban M. G r e g o r io T h o m a s D in e e n Cashier Secretary Treasurer Assistant Cashier The A.B.A. transit number and check routing symbol o f Saddle Brook State Bank is 55-725 212 A lfred H ayes, President.
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