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FE D ER A L R E S E R V E BANK O F N EW YORK Fiscal Agent of the United States f Circular N o. 4 7 1 7 T L March 23, 19S9 J Offering of $ 2 ,0 0 0 ,0 0 0 ,0 0 0 of Special 289-D ay Treasury Bills Dated A pril 1, 1959 Maturing January 15, 1960 T o A ll In corporated B anks and Trust Companies, and Others Concerned, in the Second Federal R eserve D istrict: Following is the text o f 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 on d a y , M a rch 23, 1959. TREASU RY D EPARTM EN T W a sh 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 ten ders for $2,000,000,000, o r thereabouts, o f 289-day T rea su ry bills, to be issued o n a d iscou n t basis under com p etitive and n on com p etitive bid d in g as h ereinafter provided . T h e bills o f this series w ill b e dated A p r il 1, 1959, and w ill m ature January 15, 1960, w hen the face am ou nt w ill be payable w ith ou t interest. T h e y 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 and $1,000,000 (m a tu rity v a lu e). T e n d e rs w ill be receiv ed at F ed eral R eserve B anks and B ra n ch es up to the clo s in g h our, o n e-th irty o ’ clo ck p.m ., E astern S tandard tim e, T h u rsd a y, M a rch 26, 1959. T e n d e rs w ill n ot be receiv ed at the T rea su ry D epa rtm en t, W a sh in g ton . E a ch ten der m u st be fo r an even m u ltiple o f $1,000, and in the case o f com p etitive ten ders the price offered m ust 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 ten ders b e m ade o n the printed fo rm s and fo rw a rd e d in the special en velop es w h ich w ill be sup plied b y F ed eral R e serv e B anks o r B ra n ch es o n a pp lica tion th erefor. O th e rs than b a n k in g institutions w ill n ot be perm itted t o su b m it ten ders e x ce p t fo r th eir ow n a ccou n t. T e n d e rs w ill be re ce iv e d w ith ou t d ep o sit fr o m in corp ora ted banks and trust com p a n ies and fr o m respon sib le and re co g n iz e d dealers in in vest m en t securities. T e n d e rs fr o 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 face am ou nt o f T r e a s u ry bills applied fo r, unless the tenders are a ccom p a n ied b y an exp ress gu a ra n ty o f pa ym en t b y an in corp ora ted bank o r trust com p a n y . A ll bidd ers are requ ired to a gree n ot to pu rch ase o r t o sell, o r to m ake any agreem en ts w ith resp ect t o the pu rch ase o r sale o r oth er d isp osition o f a n y bills o f this issue, u ntil a fter o n e-th irty o ’ c lo ck p.m ., E astern Standard tim e, T h u rsd a y, M a rch 26, 1959. Im m e d ia te ly a fter the clo s in g h our, ten ders w ill be o p e n e d at the F ed eral R e serv e B anks and B ranches, 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 r e a s u ry D ep a rtm en t o f th e 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 tenders w ill b e 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 t o a ccep t o r re je ct a n y o r all tenders, in w h o le or in part, and his a ction in a n y such resp ect shall be final. S u b je ct to these reservations, n on com p etitiv e tenders fo r $400,000 or less w ith ou t stated p rice fr o m any on e b idd er w ill be a cce p te d in fu ll at the a vera ge p rice (in th ree d ecim a ls) o f a ccep ted com p etitive b ids. P a ym en t o f a ccep ted tenders at the p rice s o ffe re d m u st be m ade o r com p leted at th e F ed era l R eserve B ank in cash o r oth er im m ediately available funds o n A p ril 1, 1959, provid ed , h ow ev er, a n y qualified d ep osita ry w ill be perm itted t o m ake paym ent b y cred it in its T rea su ry T a x and L o a n A c c o u n t fo r T rea su ry bills a llotted to it fo r itself and its cu stom ers up to a n y a m ou n t for w hich it shall b e qualified in e x ce ss o f e x istin g dep osits w h en s o n otified b y the F ed eral R es e rv e B ank o f its district. T h e in co m e derived fr o m T rea su ry bills, w h eth er in terest o r gain fr o m the sale o r oth er d isp osition o f the b ills, d o e s n o t h ave a n y e x e m p tion , as such, a n d loss fr o m the sale o r oth er d isp osition o f T r e a s u ry bills d oes n ot have a n y special treat m en t, as such, u nder the Internal R e v en u e C o d e o f 1954. T h e bills are su b ject to estate, inheritance, g ift o r oth er ex cise ta xes, w hether F ed era l o r State, b u t are ex em p t fro m all ta xation n o w or hereafter im p osed on the principal o r interest th e re o f b y a n y State, o r a n y o f the p ossession s o f th e U n ited States, or b y a n y lo ca l ta x in g authority. F o r pu rp oses o f ta xation 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 sid ered t o be interest. U n d e r S ection 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 discou n t at w h ich bills issued h ereun der are so ld is n ot con sid ered t o a ccru e u ntil such bills are sold, red eem ed o r oth erw ise d isp osed o f, and such b ills are exclu d e d fro m con sid era tion as capital assets. A c c o r d in g ly , the o w n e r o f T rea su ry bills (o th e r than life insurance c o m p a n ie s ) issued hereunder need in clude 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 e th e r o n o rigin a l issue o r on subsequen t pu rch ase, and the a m ou n t actu ally receiv ed either u pon sale o r red em p tion at m atu rity du rin g the taxable yea r f o r w h ich the return is m ade, as ord in a ry gain o r loss. T r e a s u ry D e p a rtm e n t C ircu la r N o . 418, R evised , a n d this n otice, prescrib e the term s o f the T rea su ry bills a n d g o v e rn the co n d itio n s o f their issue. C op ies o f th e circu la r m a y be ob ta in ed fr o m any F ed era l R eserve B ank or Branch. This Bank will receive tenders up to 1 :30 p.m., Eastern Standard time, Thursday, March 26, 1959, at the Securi ties 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 Special Treasury Bills.” Tenders may 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 a x and Loan Account for 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. (o v e r ) No............. TENDER FOR SPECIAL 289-DAY TREASURY BILLS Dated April 1, 1959 To F ed era l R eserve B a n k o f N ew Maturing January 15, 1960 Dated at ................................ Y ork , Fiscal Agent of the United States. 1959 Pursuant to the provisions of 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 b elow : C O M P E T IT IV E TE N D E R [ D o not fill in both Com petitive and N on com petitive tenders on one form $ ............................................................ (maturity value), or any lesser amount that may be awarded. P r i c e : .....................................per 100. (P r ic e must be expressed with not m ore than three decimal places, fo r exam ple, 99.925) N O N C O M PE TITIV E TE N D E R ] $ ............................................................ (maturity value). (N o t to ex ceed $400,000 f o r one bidder through all sou rces) 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. D eliver over the counter to the undersigned □ 2. Ship to the undersigned 5,000 □ 3. H old in safekeeping ( f o r ac count o f member bank only) 10,000 □ 4. H old as collateral fo r Treasury T a x and Loan A ccount 100,000 $ □ □ 5. Special instructions: 1,000 □ B y charge to our reserve account □ B y cash or other immediately avail able funds □ 500,000 1,000,000 Paym ent will be made as fo llo w s : By credit to Treasury T a x and Loan Account (N o changes in delivery instructions w ill be accepted) Totals------- 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, Thursday, March 26, 1959. Name o f subscriber ............................................................................................................................................ Insert this tender in special en velop e marked “ T ender fo r Special Treasury Bills’ (Please print) By . By (Official signature(s) required) 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 e lo w , or attach a list) (N am e o f custom er) (A ddress) 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 be perm itted to subm it ten ders e x ce p t fo r their o w n a ccou n t. B anks 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 etitive ten ders at the same price and m a y con solid a te n o n co m p e titive ten ders, p r ov id ed a list is attached s h o w in g th e nam e o f each bidder, th e a m ou n t b id fo r his a ccou n t, and m eth od o f paym ent. F o r m s fo r this pu rpose w ill be furn ished o n request. 3. I f the person m a k in g the tender is a corp ora tion , the ten der sh ou ld b e sign ed b y an officer o f the corp o ra tio n a uthorized t o m ake the tender, and the sig n in g o f the te n d e r b y an officer o f the co rp o ra tio n w ill b e con stru ed as a represen tation b y him that he has been 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 the firm , w h o sh ou ld sign in the fo r m “ ..................................................................................................., a cop artn ersh ip , b y ............................. .................................................................................. . a m em b er o f the firm .” 4. T e n d e rs w ill be received w ith ou t dep osit fr o m in corp ora ted banks and trust com pa n ies a n d fr o m re s p o n sible and re co g n iz e d dealers in investm ent 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 ym en t o f 2 p ercen t o f the face a m ou n t o f T rea su ry bills applied fo r, unless the ten ders 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 bank or 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 reasu ry, is m aterial, the ten der m a y b e disregarded.
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