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F ED ER A L R E SE R V E BANK O F N EW YORK Fiscal Agent of the United States J" Circular N o. 4 7 0 1 T L February 9, 1959 J Offering of $1,500,000,000 of 217-Day Treasury Bills To Be Designated “ Tax Anticipation Series” Dated February 16, 1959 Maturing September 21, 1959 T o A ll Incorporated B anks and Trust Companies, and O thers Concerned, in the Second Federal R eserv e D istrict: Following is the text of a notice published tod ay: R E L E A S E , A. M. N E W S P A P E R S , M o n d a y , F eb ru a ry 9, 1959. TREASURY DEPARTM ENT 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 for $1,500,000,000, o r thereabouts, o f 2 1 7 -d ay T rea su ry bills, to be issued o n a d iscou n t basis u nder com p etitive and n on com p etitive b id d in g as h ereinafter p rov id ed . T h e bills o f this series w ill be design ated T a x A n ticip a tion Series, th ey w ill be dated F eb ru a ry 16, 1959, and th ey w ill m ature S ep te m ber 21, 1959. T h e y w ill be a ccep ted at face value in pa ym en t o f in co m e and profits ta xes due on S ep tem ber 15, 1959, and to the exten t th ey are n o t presen ted for this pu rp ose the fa ce a m ou n t o f these bills w ill be payable w ith ou t in terest at m aturity. T a x p a y e rs d esirin g to app ly these bills in p a ym en t o f S ep tem ber 15, 1959, in com e a n d profits taxes have the p riv ileg e o f surren d erin g th em to a n y F ed eral R eserve B ank o r B ra n ch o r t o the O ffice o f the T reasu rer o f the U n ited States, W a sh in g to n , n ot m o re than fifteen days b e fo r e S ep tem ber 15, 1959, and receiv in g receip ts th erefor sh ow in g th e fa ce a m ou n t o f the bills s o surrendered. T h ese receip ts m a y b e subm itted in lieu o f the bills on o r b e fo re S ep tem ber 15, 1959, t o th e D istrict D ire cto r o f In tern al R even u e fo r the district in w h ich such taxes are payable. T h e bills 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 va lu e). T e n d e rs w ill be receiv ed at Federal R e serv e B anks and B ra n ch es up to the clo s in g h our, o n e-th irty o ’ c lo c k p.m ., E astern Sta n da rd tim e, W e d n e s d a y , F eb ru a ry 11, 1959. T h e tenders w ill n ot be receiv ed at the T r e a s u ry D epartm 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 etitive ten ders the price o ffe re d m u st b e exp ressed o n 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 used. It is u rg ed that tenders be m ade o n th e p rin ted fo rm s and forw a rd ed in th e special en velopes w h ich w ill b e supplied b y F ed era l R e serv e B anks o r B ra n ch es o n a pp lica tion th erefor. O th ers than b a n k in g institutions w ill n ot b e perm itted t o subm it ten ders e x ce p t fo r their o w n a ccou n t. T e n d e rs w ill be receiv ed w ith ou t d ep o sit fr o m in corp ora ted banks a n d trust com p a n ies and fro m resp on sib le and r e co g n iz e d dealers in in vest m en t securities. T e n d e rs fro 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 the fa ce a m ou n t o f T r e a s u ry bills applied fo r, unless th e tenders are a ccom p a n ied b y an express gu a ra n ty o f p a ym en t b y an in corp ora ted b a n k o r trust com p a n y . A ll b id d ers are req u ired to a gree n o t to pu rch a se o r to sell, or to m ake a n y agreem en ts w ith resp ect to the pu rch a se o r sale o r o th e r d isp osition o f a n y bills o f this issue, until after o n e-th irty o ’ c lo c k p.m ., E astern Standard tim e, W ed n esd a y , F eb ru a ry 11, 1959. Im m ed ia tely a fter the clo s in g hour, ten ders w ill be o p e n e d at the F ed eral R eserve B anks a n d B ran ches, fo llo w in g w h ich p u b lic an n ou n cem en t 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 p rice ran ge o f a ccep ted bids. T h o s e su b m ittin g ten ders w ill be advised o f the a ccep ta n ce or reje ctio n th ereof. T h e S ecreta ry o f th e T r e a s u ry exp ressly reserves the rig h t to a ccep t o r re je ct a n y or all tenders, in w h o le or in part, and his a ction in a n y su ch resp ect shall be final. S u b je ct to these reservations, n on com p etitive tenders fo r $300,000 o r less w ith ou t stated p rice fr o m a n y o n e b idder w ill be a cce p te d in fu ll at the a vera ge p rice (in three d ecim a ls) o f a ccep ted com p etitiv e bids. P a ym en t o f a ccep ted tenders at the p rices o ffe re d m u st be m ade or com p leted at the F ed era l R e serv e B ank in cash o r oth er im m ed iately available funds o n F eb ru a ry 16, 1959, provid ed , h ow ev er, a n y qualified d ep osita ry w ill be perm itted to m ake p a ym en t b y cred it in its T re a su ry T a x and L o a n A c c o u n t fo r n ot m o re than 75 p ercen t o f th e a m ou n t o f T r e a s u ry bills a llotted to it fo r itself and its cu sto m e rs up to a n y a m ou n t fo r w h ich it shall be qualified in e x cess o f e x istin g dep osits w h en s o n otified b y the F ed eral R e se rve B ank o f its district. T h e in co m e derived fr o m T rea su ry b ills, w hether, interest or gain fr o m the sale or oth er d isp osition o f the bills, d o e s n o t have a n y e x e m p tion , as such, and loss fr o m the sale o r oth er d isp osition o f T r e a s u ry b ills d oes n ot have a n y special treat m ent, as such, u nder the Internal R even u e C o d e o f 1954. T h e bills are s u b je ct to estate, inheritance, g ift o r oth er excise taxes, w hether F ed era l o r State, but are ex em p t fro m all ta x ation n o w or 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 lo ca l ta x in g authority. F o r pu rp oses o f taxation the a m ou n t o f d iscou n t at w h ich T r e a s u ry bills are o rig in a lly sold b y the U n ited States is con sidered t o b e interest. U n d e r S e ctio n 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 the a m ou n t o f d iscou n t at w h ich bills issued hereun der are s o ld is n ot con sid ered to a ccru e u ntil such bills are sold , red eem ed o r oth erw ise d isp osed o f, and such bills are exclu d e d 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 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 co m e ta x return o n ly the differen ce betw een the price paid fo r such bills, w h eth er o n origin a l issue o r on subsequen t pu rch ase, and th e a m ou n t actu a lly receiv ed either u pon sale o r red em p tion at m atu rity d u rin g the taxable year fo r w h ich the return is m a d e, as ord in a ry gain o r loss. T r e a s u ry D ep a rtm en t C ircu lar N o . 418, R evised , a n d this n otice, p rescrib e th e term s o f the T rea su ry bills and g o v e rn the co n d itio n s o f their issue. C opies o f the circular m a y b e ob ta in ed fr o m any F ed era l R eserve B a n k o r B ranch. This Bank will receive tenders up to 1 :30 p.m., Eastern Standard time, Wednesday, February 11, 1959, at the Securi ties Department of 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— T a x Anticipation Series.” Tenders nay be submitted by telegraph, subject to written confirmation; they may not be submitted by telephone. Settlement for accepted tenders must be made in cash or other immediately available funds, except that any qualified depositary may make payment by credit in its Treasury T ax and Loan Account for not more than 75 percent of the amount of Treasury bills allotted to it for itself and its customers, up to any amount for which it shall be qualified in excess of existing deposits. A lfred H a y e s , President. ( over) No. TENDER FOR 217-DAY TREASURY BILLS TO BE DESIGNATED “ TAX ANTICIPATION SERIES” Dated February 16, 1959 T o F e d e r a l R e se r v e B a n k of N ew Y Maturing September 21, 1959 Dated at ork, Fiscal Agent o f the United States. 1959 Pursuant to the provisions o f Treasury Department Circular N o. 418, Revised, and to the provisions of the public notice issued by the Treasury Department and printed on the reverse side o f 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 b e lo w : COMPETITIVE TENDER [ Do not fill in both Competitive and Noncompetitive tenders on one form 1 $ ............................................................ (maturity value), or any lesser amount that may be awarded. P r i c e : .....................................per 100. (Price must be expressed with not more than three decimal places, for example, 99.925) NONCOMPETITIVE TENDER $ ............................................................ (maturity value). (N o t to exceed $300,000 fo r one bidder through all sources) A t the average price o f accepted competitive bids. Subject to allotment, please issue, deliver, and accept payment for the bills as indicated below : Pieces □ 1. D eliver over the counter to the 1,000 □ 2. Ship to the undersigned 5,000 □ 3. H old in safekeeping ( f o r ac count o f member bank on ly) 10,000 □ 4. H o ld as collateral fo r Treasury T a x and Loan Account 100,000 □ 5. Denomination $ M aturity value undersigned Paym ent will be made as fo llo w s : Special instructions: 500,000 1,000,000 □ B y credit to Treasury T a x and Loan A ccou nt o f not more than 75 per cent o f amount payable and re mainder in cash as indicated below □ By charge to our reserve account □ B y cash or other immediately avail able funds (N o changes in delivery instructions w ill be accepted) T otals- 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 or 4 above are owned solely by the undersigned. W e hereby agree not to buy or to sell, or to make any agreements with respect to the purchase or sale or other disposition of any bills of this issue, until after one-thirty o’clock p.m., Eastern Standard time, W ednes day, February 11, 1959. Name o f subscriber ............................................................................................................................................ Insert this tender in special envelope marked “Tender for Treasury Bills — _Tax Anticipation Series” (P le a s e p rin t) By ............................................................By ( O ffic ia l s ig n a tu r e (s ) req u ired ) Title .......................Title ................. Address ......................................................................................................................... (B a n k s su b m ittin g tenders fo r cu stom er a ccou n t m ust indicate nam e on line b elow , or attach a list) (N a m e o f cu s to 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 fo r less than $1,000 w ill be con sid ered , and each ten der m u st be fo r an even m u ltiple o f $1,000 (m a tu rity v a lu e ). 2. O th ers than b a n k in g institutions w ill n ot b e perm itted to subm it ten ders e x ce p t fo r th eir o w n a ccou n t. B ank s su b m ittin g ten ders fo r cu stom er a cco u n t m a y con solid a te com p etitiv e ten ders a t the same price and m a y con solid a te n o n co m p e titiv e ten ders, p r o v id e d a list is attached s h o w in g th e n am e o f each bidder, the a m ou n t b id f o r his a ccou n t, and m e th o d o f pa ym en t. F o r m s fo r this pu rp ose w ill be fu rn ish ed on request. 3. I f th e p erson m a k in g th e ten der is a corp ora tion , the ten der sh ou ld be sign ed b y an officer o f the co rp o ra tio n a u th orized to m ake the tender, and the sign in g o f the ten d er b y an officer o f the corp o ra tio n w ill b e con stru ed as a rep resen tation b y h im that he has b een s o authorized. I f the ten der is m ade b y a partnership, it sh ou ld be sign ed b y a m e m b e r o f th e firm , w h o sh ou ld sign in th e fo r m “ .................................................................................................. . a cop artn ersh ip, b y ............................. ................................................................................... a m e m b e r o f the firm .” 4. T e n d e rs w ill b e receiv ed w ith ou t dep osit fr o m in corp ora ted banks and trust com pa n ies and fro m re sp o n sible and re co g n iz e d dealers in in vestm ent securities. T e n d e rs fr o 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 the fa ce a m ou n t o f T rea su ry bills a pp lied for, u nless the ten ders are a cco m p a n ie d b y an ex p ress guaranty o f p a y m e n t b y an in corp ora ted 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 ged in a n y respect, w hich, in the op in ion o f the S ecreta ry o f the T rea su ry, is m aterial, the ten der m a y b e disregarded.
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