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FE D E R A L R E SE R V E BANK O F N EW YORK Fiscal Agent of the United States Circular N o. 4 7 5 6 July 6, 1959 Offering of $2,000,000,000 of Special 366-Day Treasury Bills Dated July 15, 1959 Maturing July 15, 1960 T o A ll Incorporated Banks and Trust Companies, and O thers Concerned, in the Second Federal R eserv e D istrict: Following is the text of a notice issued by the Treasury Department, released for publication in morning news papers, Monday, July 6, 1959: 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 fo r $2,000,000,000, o r th ereabouts, o f 366-day T rea su ry bills, t o be issued o n a discou n t basis under com p etitiv e and n o n co m p e titiv e b id d in g as h ereinafter p rov id ed . T h e bills o f this series w ill be dated Ju ly 15, 1959, and w ill m ature Ju ly 15, 1960, 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 rm on ly, and in den om in ation 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 b e re ce iv ed at F ed era l R eserve Banks and B ran ch es up to the clo s in g hour, on e-th irty o ’ clo ck p.m ., E a st ern D a y lig h t S a v in g time, W ed n esd a y , Ju ly 8, 1959. T en d ers w ill n o t b e re ce iv e d 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 co m p e titiv e tenders the price offered m u st 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 a y n ot be used. (N o tw ith stan din g the fa ct that these bills w ill run fo r 366 days, the d isco u n t rate w ill be co m p u ted on a bank d iscou n t basis o f 360 days, as is cu rren tly the practice on all issues o f T rea su ry b ills.) It is u rged that tenders be m ade on the printed form s a n d fo rw a rd e d in the special en velopes w h ich w ill be supplied b y F ed era l R e se rve B anks or B ran ch es on 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 to subm it tenders 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 dep osit fr o m in corp ora ted banks and trust com p a n ies and fr o m resp on sib le and recog n ized dealers in in vestm ent securities. T e n d ers fr o m oth ers m u st be a c c o m panied b y paym ent o f 2 p ercen t o f the face am ou nt o f T rea su ry bills a pp lied fo r, unless the ten ders are a ccom p a n ied b y an exp ress gu a ra n ty o f p a ym en t b y an in corp ora ted bank or trust com p a n y . A ll bidd ers are requ ired to a gree n ot t o pu rch ase o r to sell, o r t o m ake a n y agreem en ts w ith resp ect to the purchase or 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 ck p.m ., E astern D a y lig h t S a v in g tim e, W e d n e s day, Ju ly 8, 1959. Im m ed ia tely after the clo s in g h our, ten ders w ill be open ed at the F ed eral R e se rve B anks and B ran ches, fo llo w in g w hich p u blic a n n ou n cem en t w ill be m ade b y the T rea su ry D epartm 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 su b m ittin g tenders w ill be advised o f the a ccep ta n ce or rejection thereof. T h e S ecreta ry o f the T rea su ry exp ressly reserves the righ t to a ccep t o r re je ct a n y o r all ten ders, in w h ole o r in part, and his action in a n y such resp ect shall b e final. S u b je ct to these reservations, n on com p etitive ten ders for $400,000 o r less w ith ou t stated price fr o m a n y on e b idd er w ill be a ccep te d in full at the a vera ge p rice (in three decim a ls) o f a ccep ted c o m petitive bids. P a ym en t o f a ccep ted ten ders at the p rices o ffe re d m u st be m ade o r com p leted at the F ed era l R e serv e B ank in cash o r oth er im m ediately available fu n ds on Ju ly 15, 1959, provid ed , h ow ev er, any qualified d ep osita ry w ill be perm itted to m ake pa ym en t b y cred it in its T rea su ry T a x and L oa n A c c o u n t fo r T rea su ry bills a llotted t o it fo r itself and its cu s tom ers up t o a n y a m ou n t fo r w h ich it shall be qualified in e x cess o f e xistin g dep osits w h en so n otified b y th e Federal R es e rv e B ank o f its D istrict. T h e in co m e d erived fr o m T rea su ry bills, w h eth er interest or gain fro m the sale o r oth er d isp osition o f the bills, d oes not have a n y exem ption , as such, and lo s s fr o m the sale o r oth er d isp osition o f T rea su ry bills d oes n ot have a n y special treat m ent, as such, u nder the In tern al R ev en 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 h eth er F ed eral o r State, b u t are ex em p t fr o m all taxa tion n o w o r hereafter im p osed on the prin cip a l o r interest th ereof b y any State, o r a n y o f the p ossession s o f the U nited States, or 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 rea su 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 er S ection s 4 5 4 (b ) and 1221(5) o f the In tern al R even u e C o d 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 until such bills are sold, red eem ed or oth erw ise disp osed of, and such bills are exclu d ed fr o m con sid era tion as capital assets. A c co r d in g ly , the ow n er o f T rea su ry bills (oth er than life insurance c o m pan ies) issued hereun der need in clude in his in co m e ta x return on ly th e differen ce betw een the p rice paid f o r such bills, w hether o n origin a l issue or on subsequen t pu rch ase, and the a m ou n t actu ally receiv ed either u p on sale o r red em p tion at m aturity d u rin g the taxable yea r fo r w h ich the return is made, as ord in a ry ga in o r loss. T rea su ry D epa rtm en t Circular N o . 418, R evised , and this n otice, p rescrib e the term s o f the T r e a s u ry bills and govern the con d ition s o f their issue. C op ies o f the circular m a y be obtain ed fr o m a n y F ed eral R e serv e B ank o r B ranch. This Bank will receive tenders up to 1 :30 p.m., Eastern Daylight Saving time, Wednesday, July 8, 1959, at the Securities 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 the enclosed yellow envelope marked “ Tender for Special Treasury Bills.” Tenders may be submitted by telegraph, subject to written confirmation; they may not be submitted by tele phone. 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. ( over) IM P O R T A N T — The discount rate on the bills o f this issue w ill be com puted on a bank discount basis o f 360 days, as is currently the practice on all issues o f Treasury bills. No..................................... TENDER FOR SPECIAL 366-DAY TREASURY BILLS Dated July 15, 1959 To F ederal R eserve B a n k of N ew Maturing July 15, 1960 Y o rk , Fiscal Agent o f the United States. Dated at ........................................................ ................................................................ 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 elow : COMPETITIVE TENDER f D o not fill in both Com petitive and N on com petitive tenders on one fo rm $ ............................................................ (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) NONCOMPETITIVE TENDER $ ............................................................ (maturity value). ( N o t to ex ceed $400,000 fo r one bidder through all sou rces) A t the average price o f accepted competitive bids. Subject to allotment, payment for these bills will be made at your Bank on July 15, 1959, by cash or other immediately available funds or (in the case o f a qualified depositary) by credit in Treasury T ax and Loan Account. 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 Daylight Saving time, Wednesday, July 8, 1959. Name of subscriber ............................................................................ Insert this (P lease print) tender in yellow envelope marked “ Tender for Special Treasury Bills’ By .................................................................................. B y ..................... (O fficial signature(s) required) T i t l e ................................................................................ T itle ................... Address (B a n k s su b m ittin g tenders fo r cu stom er a ccou n t m u st indicate nam e on line b e lo w , o r attach a list) (N am e o f custom er) (A ddress) ( N o t e . Successful bidders will receive a letter o f instructions form with their allotment notice to instruct us as to the disposition of, and method o f payment for, the bills allotted to them.) 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 Render m u st b e f o r an even m u ltiple o f $1,000 (m a tu rity v a lu e ). 2. O th e rs than ban kin g in stitu tions w ill n ot be perm itted t o subm it ten ders e x cep 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 ccou n t m ay con solid a te com p etitiv e ten ders at the sam e price and m a y con solid a te n o n co m p e titiv e tenders, p rovid ed a list is attached s h o w in g the nam e o f each bidd er, the 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 rp ose w ill be furn ished on request. 3. I f the person m a k in g the ten der is a corp ora tion , th e ten der sh ou ld be sign ed b y an officer o f the corp ora tio n a u th orized t o m ake the tender, and the sign in g o f the ten der b y an officer o f th e co rp o ra tio n w ill b e co n stru ed as a rep resen tation b y h im that he has been s o authorized. I f th e ten der is m ade b y a partnership, it sh ou ld b e sig n 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 receiv ed w ith ou t dep osit fr o m in corp ora ted banks and trust com p a n ies and fr o m re s p o n sible and re co g n iz e d dealers in in vestm en t securities. T e n d e rs fr o 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 r e a s u ry bills applied for, 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 bank o r trust com p a n y . 5. I f the language 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 re a s u ry , is m aterial, th e ten der m a y be disregarded. (This letter of instructions, accompanied by attached duplicate copy, should be filled in for the to ta l a m ou n t of Treasury bills of this issue awarded and returned to Federal Reserve Bank of New York) LETTER OF INSTRUCTIONS T o F e d e r a l R e serve B a n k of N ew Y ork. Fiscal Agent o f the United States, Federal Reserve P. 0 . Station, New York 45, N. Y. Attention: Government Bond Division— 2nd Floor Dated a t ....................................................... ................................................................ 1959 On our competitive and noncompetitive tenders for— U N IT E D S T A T E S O F A M E R I C A S P E C I A L 3 6 6 - D A Y T R E A S U R Y BILLS D A T E D JU LY 15, 1959, D U E JU LY 15, 19 60 accepted in the aggregate amount of— (maturity value) Please issue and make delivery of the bills as instructed below : Pieces Denomination $ Maturity Value P lease D o N ot U se T his S pace 1,000 5,000 10,000 100,000 500,000 1,000,000 Totals— □ 1. Deliver over the counter to the undersigned Payment will be made as follow s: □ 2. Ship to the undersigned □ B y charge to our reserve account □ 3. H old in safekeeping (for account of member bank only) □ By cash or other immediately available funds □ □ 4. Hold as collateral for Treasury Tax and Loan Account □ 5. Special instructions: By credit to Treasury Tax and Loan Account on our books as indicated on the attached Advice of Deposit (No changes in delivery instructions will be accepted) T h e u n d e r s ig n e d ( i f a b a n k o r tru s t c o m p a n y ) h e r e b y c e rtifie s th a t th e T r e a s u r y b ills w h ic h y o u a r e h e r e b y in s tr u c te 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 n u m b e re d 3 o r 4 a b o v e a r e o w n e d s o le ly b y th e u n d e r s ig n e d . This letter of instructions must be signed officially in the space provided and re turned immediately to S u b m itte d b y (P lease print) By By . (Authorized signature(s) required) ......................... T it le T it le .................... Federal Reserve Bank of New York, Fiscal Agent of the United States. A ddress.......................................................................................... ( S p a c e s b e l o w a r e f o r th e u s e o f F e d e r a l R e s e r v e B a n k o f N e w Y o r k ) Safekeeping Division Government Bond Division DELIVERY RECEIPT Received from Federal Reserve Bank of New York, Fiscal Agent o f the United States, the above described securities allotted in the amount indicated above. By. Subscriber. Date. If payment is to be made by credit to Treasury Tax and Loan Account, an advice of the deposit should be furnished this Bank on the form below. Advice of Deposit in Treasury Tax and Loan Account To Federal Reserve Bank o f New York Government Bond Division W e will deposit on July 15, 1959, $ (purchase price) to the credit of the Federal Reserve Bank of New York, Fiscal Agent of the United States, in the Treasury Tax and Loan Account, to be held subject to withdrawal on demand in payment for $ (maturity value) Special 366-day Treasury Bills, dated July 15, 1959, due July 15, 1960. (N a m e o f depositary) Address (C ity and State) (DUPLICATE FOR USE OF FEDERAL RESERVE BANK OF NEW YORK) LETTER OF INSTRUCTIONS To F e d e r a l R e se r v e B a n k o f N e w Y o r k . Fiscal A gen t o f the United States, Federal Reserve P. 0 . Station, New Y ork 45, N. Y . A tten tion: Government B ond Division— 2nd Floor Dated a t .............. .1959 On our competitive and noncompetitive tenders for— U N IT E D STATES OF DATED A M E R IC A JU LY 15, S P E C IA L 3 6 6 -D A Y 1959, DUE JU LY TREASURY B JLLS 15, 1960 accepted in the aggregate amount o f— $ (m aturity value) Please issue and make delivery o f the bills as instructed b elow : Pieces Denomination $ Maturity Value P lease D o N ot U se T his S pace 1,000 5,000 10,000 100,000 500,000 1,000,000 Totals— □ 1. Deliver over the counter to the undersigned Payment will be made as fo llo w s : □ 2. Ship to the undersigned □ B y charge to our reserve account □ 3. H old in safekeeping (fo r account o f member bank only) □ B y cash or other immediately available funds □ □ 4. H old as collateral fo r Treasury Tax and Loan A ccount □ 5. Special instructions: B y credit to Treasury Tax and Loan A ccount on our books as indicated on the attached A dvice o f Deposit (No changes in delivery instructions will be accepted) T h e u n d e r s i g n e d ( i f a b a n k o r t r u s t c o m p a n y ) h e r e b y c e r t ifie s t h a t t h e T r e a s u r y b ills w h ic h y o u a r e h e r e b y i n s t r u c t e d t o d i s p o s e o f in t h e m a n n e r i n d i c a t e d in it e m n u m b e r e d 3 o r 4 a b o v e a r e o w n e d s o le ly b y t h e u n d e r s ig n e d . This letter of instructions must be signed officially in the space provided and re turned immediately to Federal Reserve Bank of New York, Fiscal Agent o f the United States. Submitted by (P lease print) By (Authorized signature(s) required) Title ......................................................................... Title ................. By ................. Address ( S p a c e s b e l o w a r e f o r the use o f F e d e r a l R e s e r v e B a n k o f N e w Y o r k ) Safekeeping Division Government Bond Division Payment received ................... Checked.. Deliver against payment o f $. Delivered. D E L IV E R Y R E C E IP T Received from Federal Reserve Bank o f New York, Fiscal Agent o f the United States, the above described securities allotted in the amount indicated above. Date Subscriber 1 F e d e r a l R e se r v e B a n k of N e w Y ork NOTICE OF ALLOTMENT OF UNITED STATES OF AMERICA SPECIAL TREASURY BILLS July 9, 1959. Y ou r □ com petitive □ noncompetitive tender for— U N IT E D STATES O F A M E R IC A DATED has been accepted at the price o f JU LY 15, S P E C IA L 1959, DUE 3 6 6 -D A Y JU LY TREASURY B IL L S 15, 1960 (per 100), in the amount o f— $ (m aturity value) Settlement therefor must be made in cash or other immediately available funds at the Federal Reserve Bank o f New Y ork on or before July 15, 3959. However, a qualified depositary may make settlement by credit to its Treasury Tax and Loan Account, provided the advice o f deposit on the enclosed letter of instructions form is executed and returned immediately. I f settlement is to be made by check on a bank other than the Federal Reserve Bank o f New Y ork, such check should be received by us in time for collection on July 15, 1959, otherwise it will be necessary fo r the bidder to pay fo r the securities allotted at the price com puted on the rate o f discount on such securities to the date o f collection. On the enclosed letter o f instructions form , please fill in instructions as to paym ent and dis position for the total amount o f Treasury bills o f this issue awarded to you, and return the letter immediately to our Government B ond Division. F e d e ra l R eserve B a n k o f N ew Y o rk F is c a l Checked by A gent o f the United States. PENDING DELIVERY TICKET FOR GOVERNMENT BOND DIVISION Y ou r 0 com petitive 0 2 noncompetitive tender fo r— U N IT E D STATES OF DATED A M E R IC A JU LY S P E C IA L 3 6 6 -D A Y 15, 1959, DUE which has been accepted at the price o f JU LY TREASURY B IL L S 15, 1960 (p e r 100), in the amount o f— (m aturity value) P R IN C IP A L MASTER M A T U R IT Y VALUE P R IN C IP A L D IS P O S IT IO N □ Over the Counter □ Safekeeping □ Ship □ Treasury Tax & Loan Q Allotment Transfer S P L IT D IS P O S IT IO N M ETH OD OF PAYM ENT □ Treas. T . & L. Acc. □ Reserve Account □ Check or Cash □ Delivery Teller □ Foreign Oper. Div. □ Form 12 ALLOTMENT NOTICE FOR SECURITIES DEPARTMENT Y our □ competitive □ noncompetitive tender for— U N IT E D STATES O F A M E R IC A DATED which has been accepted at the price o f JU LY 15, S P E C IA L 3 6 6 -D A Y 1959, DUE JU LY TREASURY B IL L S 15, 1960 (p e r 100), in the amount o f— $ (m aturity value) ALLOTMENT NOTICE FOR SECURITY FILES Y ou r □ competitive □ noncompetitive tender for— U N IT E D STATES OF DATED which has been accepted at the price o f A M E R IC A JU LY S P E C IA L 3 6 6 -D A Y 15, 1 9 59, D U E JU LY TREASURY B IL L S 15, 1960 (per 100), in the amount of— $ (m aturity value)
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