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FED ER A L R E SE R V E BANK O F N E W YORK Fiscal Agent of the .United States r Circular N o. 4 8 3 5 ' L Decem ber 30, 1959 . Offering o f $2,000,000,000 of 166-Day Tax Anticipation Treasury Bills Additional Amount, Series Dated October 21, 1959, Maturing June 22, 1960 (T o Be Issued January 8, 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 o f a notice issued by the Treasury Department, released for publication today: T h e T re a su ry D epa rtm en t, b y this p u b lic n otice, invites tenders fo r $2,000,000,000, or thereabouts, o f 166-day Treasury bills (to maturity da te ), to be issued January 8, 1960, on a discount basis under com petitive and noncompetitive bidding as hereinafter provided. T h e bills o f this series will be designated T a x Anticipation Series and represent an additional amount o f bills dated October 21, 1959, to mature June 22, 1960, originally issued in the amount of $2,002,246,000. T h e additional and original bills will be freely interchangeable. T h e y w ill be accepted at face value in payment of income and profits taxes due on June 15, 1960, and to the extent they are not presented for this purpose the face amount of these bills w ill be p a ya b le w ith ou t interest at m aturity. T a x p a y ers d esirin g to a p p ly these bills in paym ent o f June 15, 1960, in co m e and profits taxes have the privilege o f su rrendering th em t o a n y F ed era l R e s e rv e B ank o r B ra n ch o r t o th e O ffice o f the T reasu rer o f the U n ited States, W a s h in g to n , n ot m ore than fifteen d a ys b e fo r e June 15, 1960, and re ce iv in g receipts th erefor s h o w in g the face a m ou n t o f the bills so surrendered. T h e se receip ts m a y be subm itted in lieu o f the bills on or b e fo re June 15, 1960, to the D istrict D ire cto r o f Internal R even u e fo r the D is trict in w h ich such taxes are payable. T h e bills 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 receiv ed at F ed era l R eserve B anks and Branches up to tfle closing hour, one-thirty o ’clock p.m., Eastern Standard time, Tuesday, January 5, 1960. Tenders w ill not be received at the Treasury Department, W ashington. Each tender must be fo r an even multiple o f $1,000, and in the case o f com peti tive tenders the price offered must be expressed on the basis o f 100, with not m ore than three decimals, e.g., 99.925. Fractions may not be used. It is urged that tenders be made on the printed forms and forw arded in the special envelopes w hich w ill be supplied by Federal Reserve Banks o r Branches on application therefor. 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. 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 fro m resp on sib le and recog n ized dealers in in vestm ent securities. T e n d e rs fro m oth ers m u st be a c c o m panied 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 reasu ry bills applied for, 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 required to a gree n ot to pu rch ase or to sell, o r t o m ake any agreem en ts w ith resp ect to the pu rch ase or sale o r oth er d isp osition o f a n y bills o f this addition al issue, until after o n e -th irty o ’ c lo ck p.m ., E astern Standard time, T u esd a y, January 5, 1960. Im m ed ia tely a fter the clo s in g h our, tenders will be op en ed at the F ed era l R es e rv e B an ks and B ran ches, fo llo w in g w hich p u b lic a n n ou n cem en t w ill b e 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 tenders w ill be a d vised o f the a ccep ta n ce o r reje ctio n th ereof. T h e S ecreta ry o f the T rea su ry e x p ressly reserves the righ t to a cce p t o r re je ct a n y o r all tenders, in w h ole 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, noncom petitive tenders fo r $400,000 o r less w ith ou t stated price fr o m a n y 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 c o m petitive bids. P a y m en t o f a ccep ted ten ders at the p rices o ffe re d m ust be m ade o r com p le te d at the F ed eral R es e rv e B ank in cash or other immediately available funds on January 8, 1960, p rov id ed , h ow ev er, a n y qualified d ep osita ry w ill b e perm itted t o m ake pa ym en t 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 s tom ers up to a n y a m ou n t fo r w hich it shall b e qualified in e x cess o f e xistin g dep osits w h en so n otified b y the F ed eral R e serv e B ank o f its D istrict. T h e in com e derived fr o m T rea su ry bills, w h eth er interest o r gain fro m the sale or oth er d isp osition o f the bills, d oes n ot have any exem p tion , as such, and loss fr o m th e sale or 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, under the In tern al R even u e C od e o f 1954. T h e bills are su b ject to estate, inheritance, g ift o r oth er excise taxes, w hether F ed eral o r State, but are ex em p t fr o m all taxa tion n o w or hereafter im p osed on the prin cip a l o r interest th ereof b y any State, or any o f the p ossession s o f the U nited States, o r b y a n y lo ca l ta x in g authority. F o r p u rp ose s 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 rigin a lly sold b y the U n ited States is co n sid e re d t o b e interest. U n d er 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 d iscou n t at w h ich bills issued h ereunder are sold is n ot con sidered to a ccru e u ntil such bills are sold, red eem ed o r oth erw ise disp osed o f, and su ch bills are ex clu d ed fr o 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 in su rance c o m pa n ies) issued hereunder need in clu d e in his in com e ta x return o n ly the differen ce betw een the p rice paid fo r such bills, w h eth er o n origin al issue or on subsequen t purchase, and the a m ou n t actu a lly receiv ed either u p on sale o r red em p tion at m aturity du rin g the taxable yea r for w h ich the return is m ade, as ord in a ry gain or loss. T rea su ry D ep a rtm en t C ircu lar N o . 418, R evised , and this n otice, prescrib e th e term s o f th e T r e a s u ry bills and go v e rn the con d ition s o f their issue. C op ies o f the circu la r m a y be ob ta in ed fro m any F ed era l R e serv e B a n k o r Branch. This Bank will receive tenders up to 1 :30 p.m., Eastern Standard time, Tuesday, January 5, 1960, at the Securities 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 the enclosed blue envelope marked “ Tender for Treasury Bills— Tax Anticipation Series.” Tenders may be submitted by telegraph, subject to written confirmation; they may not be sub mitted 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 ayes, President. (o v e b ) No............................... TENDER FOR 166-DAY TREASURY BILLS TO BE DESIGNATED “ T A X ANTICIPATION SERIES” Additional Amount, Series Dated October 21, 1959, Maturing June 22, 1960 (T o Be Issued January 8, 1960) To F ed era l R eserve B a n k o f N ew Y ork , Dated at ........................................................ .............................................................. . Fiscal Agent o f the United States. 19 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 f not m \n both Com petitive and 1 [_ N on com petitive tenders on one form J $ ............................................................ (maturity value), or any lesser amount that may be awarded. Price: .....................................per 100. ( P r ice must be exp ressed 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 f o 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 January 8, 1960, by cash or other immediately available funds or (in the case of 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 dispostion of any bills of this additional issue, until after one-thirty o’clock p.m., Eastern Standard time, Tuesday, January 5, 1960. Insert this tender in blue envelope marked “Tender for Treasury Bills— Tax Anticipation Series’ _ N am e o f subscriber By .............................................................................. (Please print) .................................................................................. B y ....................... (Official signature(s) required) T itle ............................................................................ . T itle ................ A d d re s s ...................................................................................................................... (B a n k s su b m ittin g tenders fo r cu stom er a cco u n t m u st in dica te nam e on line b e lo w , o r a ttach a list) (Name of customer) (Address) ( N ote. Successful bidders w ill receive a letter o f instructions form with their allotment notice to instruct us as to the disposition of, and m ethod o f payment fo r, 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 b e co n sid ered , and each tender m u st b e fo r an even m u ltiple o f $1,000 (m a tu rity v a lu e ). 2. O th e rs than b ankin g institutions w ill n ot b e p erm itted to subm it tenders ex cep t fo r th eir o w n a ccou n t. Banks su b m ittin g ten ders fo r cu stom er a ccou n t m ay 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 tenders, p rov id 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 f o 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 b e fu rn ish ed on request. 3. I f the p e rson 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 a n officer o f the corp ora tio n a u th orized to m a ke th e tender, and the sig n 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 been s o a uthorized. 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 e m b e r o f th e firm .” 4. T e n d e rs w ill b e receiv ed w ith ou t d ep osit fr o m in co rp o ra te d banks a n d trust com p a n ies and fro m resp o n sible and re c o g n iz e d dealers in in vestm ent securities. T e n d e r s fr o m oth ers m u st b e a ccom p a n ied b y p a ym en t o f 2 p ercen t o f th e fa c e a m ou n t o f T rea su ry bills applied fo r, unless the tenders are a ccom p a n ied b y an exp ress guaranty o f pa 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 re a su ry , is m aterial, the tender m ay be disregarded. 1 F ederal R eserve B a n k of N e w Y ork NOTICE OF ALLOTMENT OF UNITED STATES OF AMERICA TREASURY BILLS TAX ANTICIPATION SERIES January 6, 1960. Your □ competitive □ noncompetitive tender for— UNITED STATES OF AMERICA 166-D A Y TREASURY BILLS— T A X ANTICIPATION SERIES ADDITIONAL AMOUNT, SERIES DATED OCTOBER 21, 1959, DUE JUNE 22, 1960 (T O BE ISSUED JANUARY 8, 1960) has been accepted at the price of (per 100), in the amount of— $ (maturity 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 January 8, 1960. However, a qualified deposi tary may make settlement by credit to its Treasury Tax and Loan A ccount, provided the advice o f deposit on the enclosed letter o f 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 b y us in time fo r collection on January 8, 1960; otherwise it will be necessary fo r the bidder to pay fo r the securities allotted at the accepted price, plus interest to the date o f collection at the equivalent rate o f discount. On the enclosed letter o f instructions form , please fill in instructions as to payment and dis position fo r the total amount o f Treasury bills o f this additional issue awarded to you, and return the letter immediately to our Government B ond Division. F ederal R eserve B a n k op N e w Y ork Fiscal Agent of the United States. Checked by PENDING DELIVERY TICKET FOR GOVERNMENT BOND DIVISION 2 □ competitive □ noncompetitive UNITED STATES OF AMERICA 166-D A Y TREASURY BILLS— T A X ANTICIPATION SERIES ADDITION AL AM OUNT, SERIES DATED OCTOBER 21, 1959, DUE JUNE 22, 1960 (T O BE ISSUED JANUARY 8, 1960) price of PRINCIPAL MASTER M A TU R ITY VALUE PRINCIPAL DISPOSITION □ Over the Counter □ Safekeeping □ Ship □ Treasury Tax & Loan □ Allotment Transfer SPLIT DISPOSITION METHOD OF PAYMENT □ Treas. T . & L. Acc. □ Reserve Account □ Check or Cash □ Delivery Teller □ Foreign Oper. Div. □ Form 12 ALLOTMENT NOTICE FOR SECURITIES DEPARTMENT □ competitive □ noncompetitive UNITED STA TES OF AM ERICA 166-D A Y TREASURY BILLS— T A X ANTICIPATION SERIES ADD ITIONAL AM O UNT, SERIES D ATED OCTOBER 21, 1959, DUE JUNE 22, I9 6 0 (T O BE ISSUED JANUARY 8, 1960) price of * 3 ALLOTMENT NOTICE FOR SECURITY FILES □ competitive □ noncompetitive UNITED STATES OF AM ERICA 166-D A Y TREASURY BILLS— T A X ANTICIPATION SERIES ADDITIONAL AM OUNT, SERIES DATED OCTOBER 21, 1959, DUE JUNE 22, 1960 (T O BE ISSUED JANUARY 8, 1960) price of (Thi» letter of instructions, accompanied by attached duplicate copy, should be filled in for the total amount of Treasury bills of this issue awarded and returned to Federal Reserve Bank of New York) LETTER OF INSTRUCTIONS To F e d e r a l R e s e rv e B a n k op N e w Y o r k , 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 ....................................................... ................................................................ 1960 On our competitive and noncompetitive tenders for— UNITED STATES OF AMERICA 166-DAY TREASURY BILLS— T A X ANTICIPATION SERIES ADDITIONAL AMOUNT, SERIES DATED OCTOBER 21, 1959, DUE JUNE 22, 1960 (TO BE ISSUED JANUARY 8, 1960) accepted in the aggregate amount o f— $ (maturity value) Please issue and make delivery o f the bills as instructed below : Pieces Denomination $ Maturity Value P lease Do N ot U se T h is S pace 1,000 5,000 10,000 100,000 500,000 1,000,000 Totals— 1. Deliver over the counter to the undersigned 2. Ship to the undersigned 3. Hold in safekeeping (fo r account of member bank only) □ 4. Hold as collateral for Treasury Tax and Loan Account □ 5. Special instructions: □ □ □ Payment will be made as follow s: □ By charge to our reserve account □ By cash or other immediately available funds □ By credit to Treasury Tax and Loan Account on our books as indicated on the attached Advice of Deposit (N o changes in delivery instructions will be accepted) T h e u ndersigned ( i f a bank or trust co m p a n y ) h ereb y certifies that the Treasu ry bills w hich you are h ereb y instructed to dispose o f in the m anner in dica ted in item n um bered 3 or 4 a b ov e are ow n ed so le ly by the undersigned. 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 le a se print) By ............ By ( A u t h o r iz e d * ig n a t u r e ( s ) r e q u ir e d ) ...................... Title ............. Title ........... Address (S p a ce s b e lo w are fo r the use o f F ed eral R eserve Bank o f N ew Y o r k ) Safekeeping Division Government Bond Division D E L IV E R Y RECEIPT Received from Federal Reserve Bank o f New York, Fiscal Agont o f the United States, the above described securities allotted in indicuted above. D ate................................... Subscriber...................................................................................... th e amount B y .............................................................................................. W 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. A dvice of Deposit in Treasury Tax and Loan Account To Federal Reserve Bank o f New York Government Bond Division W e will deposit on January 8, 1960, $ (purchase price) to the credit o f 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) 166-day la x Anticipation Treasury bills, Additional Amount, Series dated October 21, 1959, due June 22, 1960 (To be issued January 8, 1960). (N a m e o f depositary) Address (C it y 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 s e 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 on d Division— 2nd F loor Dated a t .............. .1960 On our competitive and noncompetitive tenders fo r— U N IT E D S T A T E S O F A M E R IC A 1 6 6 -D A Y T R E A S U R Y B ILL S— T A X A N T I C I P A T I O N SE R IE S A D D I T I O N A L A M O U N T , S E R IE S D A T E D O C T O B E R 2 1 , 1 9 5 9 , D U E JU N E 2 2 , 1 9 6 0 ( T O BE IS S U E D J A N U A R Y 8 , 1 9 6 0 ) accepted in the aggregate amount o f— $ (m aturity value) Please issue and make delivery o f the bills as instructed b e lo w : Pieces Denomination $ Maturity Value P lease Do N ot U se T his Space 1,000 5,000 10,000 100,000 500,000 1,000,000 Totals— □ □ □ □ □ 1. Deliver over the counter to the undersigned 2. Ship to the undersigned 3. H old in safekeeping (fo r account o f member bank only) 4. H old as collateral fo r Treasury Tax and Loan A ccount 5. Special instructions: Paym ent will be made as fo llo w s : □ B y charge to our reserve account □ B y cash or other immediately available funds □ B y credit to Treasury Tax and Loan A ccou nt on our books as indicated on the attached A dvice o f Deposit (N o changes in delivery instructions will be accepted) T h e u n d e rsig n e d ( i f a b a n k o r trust c o m p a n y ) h e r e b y certifies th at th e T r e a s u ry b ills w h ich y o u a re h e re b y in stru cte d to d is p o se o f in th e m a n n er in d ic a te d in item n u m b e r e d 3 o r 4 a b o v e a re o w n e d s o le ly b y th e u n d ersig n ed . This letter of instructions must be signed officially in the space provided and re turned immediately to Submitted by By (P le a s e p rin t) By (Authorized signature(i) required) Title ............................................................................... T itle .............. Federal Reserve Bank of New York, (S p a c e s b e lo w a re f o r th e u se o f F e d e ra l R e s e rv e Bank f N ew Y o r k ) Safekeeping D ivision Government Bond Division DELIVERY RECEIPT Received from Federal Reserve Bank of New York, Fiscal Agent of the United States, the above described securities allotted in the amount indicated above. D ate. Subscriber. B y.
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