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FE D E R A L R E SE R V E BANK OF NEW YORK F is c a l A g e n t o f th e U n ite d S tates r C ir c u la r N o . 4 0 0 8 L J u ly 5 ,1 9 6 0 Offering of $ 1 ,5 0 0 ,0 0 0 ,0 0 0 of Special 365-D ay Treasury Bills Dated July 15, 1960 Maturing July 15, 1961 To All Incorporated Bonks and Trust Companies, and Others Concerned, in the Second Federal Reserve District: F ollow in g is the text o f a notice issued by the T reasu ry Department fo r release today: The Treasury Department, by this public notice, invites tenders for $1,500,000,000, or thereabouts, of 365-day Treasury bills, for cash and in exchange for Treasury bills maturing July 15, 1960, in the amount o f $2,000,876,000, to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be dated July 15, 1960, and will mature July 15, 1961, when the face amount will be payable without interest. They will be issued in bearer form only, and in denominations o f $1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,000 (maturity value). Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty o ’clock p.m., East ern Daylight Saving time, Tuesday, July 12, 1960. Tenders will not be received at the Treasury Department, Washington. Each tender must be for an even multiple of $1,000, and in the case of competitive tenders the price offered must be expressed on the basis of 100, with not more than three decimals, e.g., 99.925. Fractions may not be used. (Notwith standing the fact that these bills will run for 365 days, the discount rate will be computed on a bank discount basis of 360 days, as is currently the practice on all issues of Treasury bills.) It is urged that tenders be made on the printed forms and forwarded in the special envelopes which will be supplied by Federal Reserve Banks or Branches on application therefor. Others than banking institutions will not be permitted to submit tenders except for their own account. Tenders will be received without deposit from incorporated banks and trust companies and from responsible and recognized dealers in investment securities. Tenders from others must be accom panied by payment of 2 percent of the face amount of Treasury bills applied for, unless the tenders are accompanied by an express guaranty of payment by an incorporated bank or trust company. All bidders are required to agree not to purchase or to sell, or to make any agreements with respect to the purchase or sale or other disposition o f any bills of this issue, until after one-thirty o ’clock p.m., Eastern Daylight Saving time, Tuesday, July 12, 1960. Immediately after the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, following which public announcement will be made by the Treasury Department of the amount and price range of accepted bids. Those sub mitting tenders will be advised o f the acceptance or rejection thereof. The Secretary o f the Treasury expressly reserves the right to accept or reject any or all tenders, in whole or in part, and his action in any such respect shall be final. Subject to these reservations, noncompetitive tenders for $400,000 or less without stated price from any one bidder will be accepted in full at the average price (in three decimals) of accepted com petitive bids. Settlement for accepted tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on July 15, 1960, in cash or other immediately available funds or in a like face amount of Treasury bills maturing July 15, 1960. Cash and exchange tenders will receive equal treatment. Cash adjustments will be made for differences between the par value of maturing bills accepted in exchange and the issue price of the new bills. The income derived from Treasury bills, whether interest or gain from the sale or other disposition o f the bills, does not have any exemption, as such, and loss from the sale or other disposition o f Treasury bills does not have any special treat ment, as such, under the Internal Revenue Code o f 1954. The bills are subject to estate, inheritance, gift or other excise taxes, whether Federal or State, but are exempt from all taxa tion now or hereafter imposed on the principal or interest thereof by any State, or any of the possessions of the United States, or by any local taxing authority. For purposes of taxation the amount of discount at which Treasury bills are originally sold by the United States is considered to be interest. Under Sections 454(b) and 1221(5) of the Internal Revenue Code of 1954 the amount of discount at which bills issued hereunder are sold is not considered to accrue until such bills are sold, redeemed or otherwise disposed of, and such bills are excluded from consideration as capital assets. Accordingly, the owner of Treasury bills (other than life insurance com panies) issued hereunder need include in his income tax return only the difference between the price paid for such bills, whether on original issue or on subsequent purchase, and the amount actually received either upon sale or redemption at maturity during the taxable year for which the return is made, as ordinary gain or loss. Treasury Department Circular No. 418, Revised, and this notice, prescribe the terms of the Treasury bills and govern the conditions of their issue. Copies o f the circular may be obtained from any Federal Reserve Bank or Branch. T h is Bank w ill receive tenders up to 1 :30 p.m ., Eastern D aylight Saving time, T uesday, July 12, 1960, at the Securities Departm ent o f its H ea d Office and at its B u ffa lo Branch. Please use the form on the reverse side of this circular to subm it a tender, and return it in the enclosed y ellow envelope marked “ T en d er fo r Special Treasury B ills.” T en d ers m ay be submitted by telegraph, su bject to written con firm ation ; they may not be submitted by tele phone. P a ym en t fo r the T rea su ry bills cannot b e made b y cred it through the T rea su ry T a x and L oan A ccou n t. S ettlem en t m ust be made in cash or oth er im m ediately available funds or in m aturing T rea su ry bills. A l f r e d H a y e s , President. (o v e r ) IM P O R T A N T — The discount rate on the bills of this issue will be computed on a bank discount basis of 360 days, as is currently the practice on all issues of Treasury bills. No.................................. TENDER FOR SPECIAL 365-DAY TREASURY BILLS Dated July 15, 1960.................................................. Maturing July 15, 1961 To F ed era l R eserve B a n k o f N ew Y ork , Dated at Fiscal A g e n t o f the U nited States. 1960 Pursuant to the provisions o f T reasu ry Departm ent C ircular N o . 418, R evised, and to the provisions of the public notice issued b y the T reasu ry Departm ent and printed on the reverse side o f this tender, the under signed hereby offers to purchase the above described T reasu ry bills in the am ount indicated below , and agrees to m ake paym ent th erefor at y o u r Bank o n or before the issue date at the p rice indicated below : C O M P E T IT IV E T E N D E R r Do not fill in both Competitive and Noncompetitive tenders on one form $ ................................................................ (m aturity v a lu e), or any lesser am ount that m ay be awarded. ] N O N C O M P E T IT IV E T E N D E R $ ................................................................ ( maturity value) . (Not to exceed $400,000 for one bidder through all sources) P r ic e : ....................................... per 100. A t the average price o f accepted com petitive bids. (Price must be expressed with not more than three decimal places, for example, 99.925) S u bject to allotment, please issue, deliver, and accept payment for the bills as indicated b elow : Pieces Denomination $ Maturity value 1,000 5,000 □ 0 By charge to our reserve account 0 2. Ship to the undersigned 0 □ 3. Hold in safekeeping (for ac count of member bank only) By cash or other immediately avail able funds 0 □ 4. Allotment transfer attached) By surrender of $ ............................ (maturity value) of maturing Treasury bills. Pay cash adjust ment, if any— □ 5. Special instructions: 10,000 100,000 500,000 1,000,000 (see list 0 (No changes in delivery instructions will be accepted) Totals Payment will be made as follows: 1. Deliver over the counter to the undersigned By check 0 By credit to our reserve account (Payment cannot be made through Treasury Tax and Loan Account) T h e undersigned ( i f a bank o r trust com pan y) hereby certifies that the T reasury bills which you are hereby instructed to dispose o f in the manner indicated in item 3 above are ow ned solely b y the undersigned. W e h ereb y agree n ot to buy o r to sell, o r to m ake any agreem ents w ith resp ect to the purchase or sale o r oth er disposition of any bills o f this issue, until after one-thirty o’ clock p.m ., E astern D aylight Saving time, T uesday, July 12, 1960. Name of subscriber ...................................................................................................................... Insert this tender in yellow en velop e marked “ T ender fo r Special Treasury Bills’ (Please print) By By (Official signature(s) required) Title ................................................................... Title ............ Address (Banks submitting tenders for customer account must indicate name on line below, or attach a list) (N am e of custom er) (A d d r e s s ) IN S T R U C T IO N S : 1. No tender for less than $1,000 will be considered, and each tender must be for an even multiple of $1,000 (maturity value). 2. Others than banking institutions will not be permitted to submit tenders except for their own account. Banks submitting tenders for customer account may consolidate competitive tenders at the same price and may consolidate noncompetitive tenders, provided a list is attached showing the name o f each bidder, the amount bid for his account, and method of payment. Forms for this purpose will be furnished on request. 3. If the person making the tender is a corporation, the tender should be signed by an officer of the corporation authorized to make the tender, and the signing of the tender by an officer o f the corporation will be construed as a representation by him that he has been so authorized. If the tender is made by a partnership, it should be signed by a member of the firm, who should sign in the form “ .......................................................................................a copartnership, by .................................................................................................. a member of the firm.” 4. Tenders will be received without deposit from incorporated banks and trust companies and from respon sible and recognized dealers in investment securities. Tenders from others must be accompanied by payment of 2 percent of the face amount of Treasury bills applied for, unless the tenders are accompanied by an express guaranty of payment by an incorporated bank or trust company. 5. If the language of this tender is changed in any respect, which, in the opinion of the Secretary of the Treasury, is material, the tender may be disregarded. Federal Reserve Bank of New York Securities Department ( 9th Floor) 33 Liberty Street TENDER FOR SPECIAL TREASURY BILLS (D O N O T U SE T H IS E N V E L O P E F O R O T H E R P U R P O S E 8 ) New York 45, N. Y 1 F ederal R e ser v e B a n k op New Y ork NOTICE OF ALLOTMENT O F U N IT E D S T A T E S O F A M E R IC A S P E C IA L T R E A S U R Y B IL L S J u ly 13, 1960. Y our □ com p etitive □ n oncom p etitive ten der fo r — U N ITED S T A T E S O F A M E R IC A SP E C IA L 3 6 5 -D A Y T R E A S U R Y BILLS D A T E D JULY 15, 1 9 6 0 , D U E JULY 15, 1961 lias been a ccep ted at the p rice o f (p e r 1 0 0 ), in the am ount o f— $ (m a tu rity valu e) Settlem ent th e re fo r must be m ade in cash or oth er im m ediately available fu n d s o r in a like fa ce a m ou n t o f the m aturing issue o f T rea su ry b ills at the F e d era l R eserve B ank o f N ew Y o rk on or b efore J u ly 15, 1960. I f settlem ent is to be m ade b y check o n a bank oth er than the F ed era l R eserve B ank o f N ew Y o rk , su ch check should be received b y us in tim e f o r collection on J u ly 15, 1960, otherw ise it w ill be n ecessary fo r the b id d e r to p a y fo r the securities allotted at the p rice com p u ted on the rate o f d iscou n t on such securities to the date o f collection. D e liv e ry o f the T rea su ry b ills w ill be made in accord an ce w ith instru ction s given o n y o u r ten der fo rm and y o u r reserve a ccou n t w ill be ch arged on the issue date i f y o u so in d ica ted . I f a d d ition al in stru ction s are requ ired, the attached L etter o f In stru ction s fo rm sh ou ld be com p leted in d u p lica te an d retu rn ed p ro m p tly to the F e d e ra l R eserve B ank o f N ew Y ork . F ederal R eserve Bank of New Y ork F isca l A g e n t o f the U n ited States. C hecked by. 2 (This letter o f instructions, accompanied by attached duplicate copy, should be filled in and returned to Federal Reserve Bank o f New Y o rk ) LETTER OF INSTRUCTIONS To F e d e ra l R eserve B a n k o f N ew Y ork , F isca l A g e n t o f the U n ited States, F ed era l R eserve P . 0 . Station, N ew Y o rk 45, N. Y . A tte n tio n : G overn m en t B o n d D ivision — 2 n d F lo o r Dated at ............................................................. ........................................................................ 1960 O n ou r □ com petitive □ n oncom p etitive ten d er fo r — U N ITED S T A T E S OF A M E R IC A SP EC IAL 3 6 5 -D A Y T R E A S U R Y BILLS D A T E D JULY 15, I 9 6 0 , DUE JULY 15, 1961 a ccep ted at the p rice o f (p e r 1 0 0 ), in the am ount o f— $ (m a tu rity v a lu e) P lease issue a n d m ake d eliv ery o f the bills as in stru cted b e lo w : Pieces Denomination $ M aturity Value P lease D o N ot U se T h is S pace 1,000 5,000 10,000 100,000 500,000 1,000,000 T otals— □ □ □ □ □ 1. D eliv er over the cou nter to the u n d ersigned 2. S h ip to the u nd ersigned 3. H o ld in safek eep in g (f o r account o f m em ber bank o n ly ) 4. A llotm en t tran sfer (see list attached) 5. S p ecial in stru ction s: (No changcs in delivery instructionswill be accepted) P aym en t w ill be m ade as fo llo w s : □ B y ch a rge to ou r reserve a ccou nt □ B y cash or oth er im m ediately available fu n d s □ B y su rren der o f $ .............................. (m a tu rity valu e) o f m a tu rin g T reasu ry bills. P a y cash a d ju stm ent, i f an y— □ B y check □ B y cr e d it to ou r reserve a ccou n t (P a y m e n t can not be m ade th rou gh T rea su ry T a x and L o a n A c c o u n t) The undersigned, if a bank or trust company, hereby certifies that the Treasury bills which you are hereby instructed t o dispose o f in the manner indicated in item numbered 3 above are owned solely by the undersigned. This le t t e r o f instructions must be signed officially in the space provided and re- Submitted b y ................................................. (Pi t .................... ^ t u r n e d immediately t o (Authorized signature(s) required) Title .............................................................................. Title Federal Reserve Bank o f New York, Fiscal A gent o f the United States. Address ....................................................................................... (Spaces below are for the use of Federal Reserve Bank of New York) Government Bond Division Safekeeping Division D E L IV E R Y R E C E IP T Received from Federal Reserve Bank o f New York, Fiscal A gen t o f the United States, the above described securities allotted in the amount indicated above. D a t e ................................................... S u b s c r i b e r ........................................................................................................................ B y .................................................................................................................................. 3 (D U P L IC A T E F O R 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 ) LETTER OF INSTRUCTIONS To F ederal R eser v e B a n k of New Y ork, F isca l A g e n t o f the U nited States, F ed eral R eserve P . 0 . Station, New Y o rk 45, N. Y . A tte n tio n : G overnm ent B o n d D iv ision — 2n d F lo o r D ated at ............................................................. ................................................................... 1960 O n ou r □ com p etitive □ n oncom p etitive ten der fo r — U N ITE D S T A T E S O F A M E R IC A SP EC IAL 3 6 5 -D A Y T R E A S U R Y BILLS D A T E D JULY 15, 1 9 60 , DUE JULY 15, 1961 accepted at the p rice o f (p e r 1 0 0 ), in the am ount o f— $ (m a tu rity v a lu e) P lease issue and m ake d eliv e ry o f the bills as in stru cted b e lo w : Pieces Denomination $ M aturity Value P lease D o N ot U se T h is S pace 1,000 5.000 ] 0,000 100,000 500.000 1,000,000 Totals— □ □ □ □ □ 1. D eliver over tlie cou n ter to the undersigned 2. S h ip to the undersigned 3. H old in safek eepin g ( f o r a ccou nt o f m em ber bank on ly ) 4. A llotm en t tran sfer (see list attached) 5. S p ecial in stru ction s: (No changes in deliveryinstructionswill be accepted) P aym en t w ill be m ade as fo llo w s : □ □ B y ch arge to o u r reserve a ccou nt B y cash or oth er im m ediately available fu n d s □ B y su rren der o f $ .............................. (m a tu rity valu e) o f m a tu rin g T reasu ry bills. P a y cash a d ju stm ent, i f an y— □ B y check □ B y cre d it to ou r reserve a ccou nt ( P a ym en t can not be m ade th rou g h T rea su ry T a x L o a n A c c o u n t) and The undersigned, if a bank or trust company, hereby certifies that the Treasury bills which you are hereby instructed to dispose o f in the manner indicated in item numbered 3 above are owned solely by the undersigned. T h is l e t t e r o f instructions m ust b e sig n e d officia lly in th e sp a ce p r o v id e d a n d r e tu rn ed im m e d ia te ly t o Subm itted b y ea.e print ‘ F ed era l R e se rv e B an k o f N e w Y o r k , F iscal Ajjent of the United States. ................................................................... ........................ .............................................. (Authorized signatures) T itle .............................................................................. Address required) Title ................................................................................ (Spaces below are for the use of Federal Reserve Bank of New York) Government B ond Division S afekeeping Division Paym ent r e c e iv e d ...................... Checked . Deliver against paym ent o f $. Delivered D E L IV E R Y R E C E IP T Received from Federal Reserve Bank o f N ew Y ork, F iscal A gen t o f the United States, the above described securities allotted in the amount indicated above. D a te.................................... Su bscriber..................................................................................... B y .............................................................................................. PENDING DELIVERY TICKET FOR GOVERNMENT BOND DIVISION Y our □ com p etitive □ 4 n on com p etitive ten d er fo r — UNITED STATES OF AMERICA SPECIAL 365-D A Y TREASURY BILLS DATED JULY 15, I960, DUE JULY 15, 1961 w hich has been a ccep ted at the p rice o f (p e r 1 0 0 ), in the am ount o f— PRINCIPAL MASTER M ATURITY VALUE PRINCIPAL DISPOSITION □ Over the Counter □ Safekeeping □ Ship □ Treasury Tax & Loan □ Allotment Transfer SPLIT DISPOSITION METHOD OF PAYMENT □ □ □ □ □ Reserve Account Check or Cash Delivery Teller Foreign Oper. Div. Form 12 ALLOTMENT NOTICE FOR SECURITIES DEPARTMENT □ com p etitive □ n oncom p etitive UNITED STATES OF AMERICA SPECIAL 365-D A Y TREASURY BILLS DATED JULY 15, 1960, DUE JULY 15, 1961 ALLOTMENT NOTICE FOR SECURITY FILES □ competitive □ noncompetitive UNITED STATES OF AMERICA SPECIAL 365-D A Y TREASURY BILLS DATED JULY 15, 1960, DUE JULY 15, 1961 $ 6
@FedFRASER