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F E D E R A L R E S E R V E BANK O F N E W Y O RK Fiscal Agent of the United States r Circular No. 4 9 4 3 1 L October 6, 1960 J Offering of $1,500,000,000 o f Special 364-Day Treasury Bills Dated October 17, 1960 Maturing October 16, 1961 T o A ll Incorporated B onks and Trust Companies, and O thers Concerned, in the Second Federal R eserve D istrict: Following is the text of a notice issued by the Treasury Department for release 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 $1,500,000,000, o r thereabouts, o f 364-day T reasu ry b ills, fo r cash and in e x ch a n g e fo r T rea su ry bills m atu rin g O c to b e r 17, 1960, in the a m ou n t o f $2,006,582,000, to be issued on 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 provid ed . T h e bills o f this series w ill be dated O c t o b e r 17, 1960, and w ill mature O c t o b e r 16, 1961, w hen the face am ou nt w ill be p ayable w ith ou t interest. T h e y w ill be issued in bearer fo rm o n 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 an ks and B ran ch es up to the clo s in g h our, tw o o ’ c lo c k p.m ., E a st ern D a y lig h t S a v in g tim e, T u esd a y , O c to b e r 11, 1960. T en d ers w ill n o t be receiv ed at the T rea su ry D epa rtm en t, W a sh in g ton . E ach ten der m u st b e fo r an even m u ltiple o f $1,000, and in the case o f com p etitive ten ders the p rice o ffe re d m ust be exp ressed o n the basis o f 100, w ith n ot m ore than three d ecim als, e.g., 99.925. F ra ction s m a y n ot b e used. (N o tw it h sta n din g the fa ct that these bills w ill run fo r 364 days, the d iscou n t rate w ill be com 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 reasu ry b ills.) It is urged that tenders be m ade on the printed form s and fo rw a rd e d in the special en velop es w h ich w ill be supplied by Federal R e se rve B an ks or B ran ch es on a pp lica tion therefor. O th ers than b a n k in g institutions w ill n ot be perm itted to su b m it tenders e x ce p t fo r their ow n a ccou n t. T e n d e rs w ill be receiv ed w ith ou t dep osit fro m in corp ora ted banks and trust co m p a n ie s and fr o m resp on sib le and recog n ized dealers in in vestm ent securities. T e n d e rs fr o 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 re ss gu aranty o f pa ym en t b y an in corp ora ted bank o r trust co m p a n y . A ll bidd ers are required to agree n ot to pu rch ase or to sell, o r to m ake a n y agreem en ts w ith resp ect to the purchase or sale o r oth er d isp osition o f any bills o f this issue, until after tw o o ’c lo c k p.m ., E astern D a y lig h t S a vin g tim e, T u esd a y, O c t o b e r 11, 1960. Im m ed ia tely a fter the clo s in g h our, ten ders w ill be op en ed at the F ed eral R e se rve Banks and B ran ches, fo llo w in g w hich pu blic a n n ou n cem en t w ill b e m ade b y the T rea su ry D epartm 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 o r 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 reject any o r all tenders, in w h ole o r in part, and his action in a n y such resp ect shall be final. S u b je ct to these reservations, n on com p etitive tenders fo r $400,000 o r less w ith ou t stated price fro m a n y on e b idd er w ill be a ccep tcd in full at the a vera ge price (in three decim a ls) o f a ccep ted c o m petitive bids. S ettlem ent for a ccep ted ten ders in a cco rd a n ce w ith the b id s m u st be m ade or com p leted at the Federal R eserve B ank on O c to b e r 17, 1960, in cash or oth er im m ediately available funds or in a like face am ou nt o f T rea su ry bills m aturing O c to b e r 17, 1960. Cash and ex ch a n g e tenders w ill receive equal treatm ent. Cash adjustm ents w ill be m ade fo r d ifferen ces betw een the par value o f m aturing bills a ccep ted in ex ch a n g e and the issue price o f the n ew bills. T h e in com e derived fro m T rea su ry bills, w hether interest o r gain fro m the sale o r oth er disposition o f the bills, d o e s not have any exem p tion , as such, and loss fro m the sale o r oth er disp osition o f T rea su ry bills d oes n ot have a n y special treat m ent, as such, under the Internal R even u e C o d e o f 1954. T h e bills are su b ject t o estate, inheritance, g ift o r oth er excise taxes, w hether F ed eral o r State, but are exem p t fro m all taxa tion n o w or hereafter im p osed on the p rin cip a l or interest th ereof b y any State, or any o f the possession s o f the U nited States, o r b y any lo ca l taxing authority. F o r pu rp oses o f taxation the a m ou n t o f discou n t at w h ich T rea su ry bills are o rigin a lly sold b y the U n ited States is con sid ered to be interest. U n d er S ection s 4 5 4 (b ) and 1221(5) o f the In tern al R even ue C od e o f 1954 the a m ou n t o f d iscou n t at w h ich bills issued hereunder are sold is n ot con sid ered to a ccru e until such bills are sold, red eem ed o r oth erw ise disp osed o f, and such bills are ex clu d ed fro m con sidera tion as capital assets. A c co 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 pan 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 price paid for such bills, w hether on origin a l issue or on subsequent purchase, arid the a m ou n t actu a lly receiv ed either upon sale o r red em ption at m aturity d u rin g th e taxable yea r for w hich the return is made, as ord in a ry gain or 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 rea su ry bills and govern the con d ition s o f their issue. C opies o f the circu la r m ay be obtain ed fro m a n y F ed eral R eserve Bank o r Branch. This Bank will receive tenders up to 2 p.m., Eastern Daylight Saving time, Tuesday, October 11, 1960, 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. Payment for the Treasury bills cannot be made by credit through the Treasury Tax and Loan Account. Settlement must be made in cash or other immediately available funds or in maturing Treasury bills. A lfred H aves, President. (o v a ) IMPORTANT—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. N o..................................... TENDER FOR SPECIAL 364-DAY TREASURY BILLS Dated October 17, 1960 To F ederal R eserve B ank of N ew Y Maturing October 16, 1961 Dated at ork, 1960 Fiscal Agent of the United States. 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 below: COMPETITIVE TENDER [ D o not fill in both Com petitive and N on com petitive tenders on one form $ . .................................................... (maturity value), of any lessef amount that may be awarded. Price : . . . . >....................... per 100. (P r ic e iniist be exp ressed with not m ore than three decimal places, fo r exam ple, 99.925) j j NONCOMPETITIVE TENDER ........................(maturity value). (Not to exceed ',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 $ Maturity value 0 1,000 0 0 5,000 0 10,000 0 100,000 1. D eliver over the counter to the undersigned 2. Ship to the undersigned 3. H old in safekeeping (fo r ac: count o f member bank on ly) 4. Allotm ent transfer (see list attached) 5. Special instructions: 500,000 1,000,000 (N o changes in d elivery instructions will be accepted) T otals 0 B y charge to our reserve account 0 B y cash or other immediately avail able funds 0 .......................... B y surrender o f (maturity valu e) o f maturing Treasury bills, r a y cash adjust ment, if any— O B y check 0 B y credit to our reserve account (P aym en t cannot be made through T rea su ry T a x and Loan A ccou n t) 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 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 otht*r disposition of any bills of this issue, until after two o’clock p.m., Eastern Daylight Saving time, Tuesday, October 11, 1960. N am e o f subscriber Insert this tender in yellow envelope marked “T ender for Special Treasury Bills’ ................................. ..................................................................................................... (Please print). By T itle By (Official signature(s) required) . .................... ....................................... .............. T itle A dd ress (B a n k s subm itting tenders for cu stom er a ccou n t m ust in dicate nam e on line b e lo w , or attach a list) (Name of Customer) (Address) IN S T R U C T IO N S : 1. N o ten der fo r less than $1,000 w ill be co n sid ered , and each tender m u st be fo r an even m u ltiple o f $1,000 (m a tu rity v a lu e ). 2. Others than banking institutions will not be permitted to submit tenders except for their own account. Banks submitting tenders fo r customer account may consolidate competitive tenders at the same price and ttiay consolidate noncompetitive tenders, provided a list is attached showing the name of each bidder, the amount bid for his account, and method Of payment. Forms for this purpose will be furnished on request. 3. I f the person m a k in g the ten der is a corp ora tion , the ten der sh ou ld be sign ed b y an officer o f the corp o ra tio n a uthorized to m ake the tender, and the sign in g o f the ten d er b y an officer o f the co rp o ra tio n w ill be con stru ed as a represen tation b y h im that he has been so authorized. I f the tender is m ade b y a partnership, it sh ou ld be sign ed b y a m em b er o f the firm, Who sh ou ld sign in the fo r m “ .................................................................................................. . a cop artn ersh ip, b y j ........................................................................................... 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 fro m in co rp o ra te d banks and trust com p a n ies and fr o m re sp o n sible and re co g n iz e d dealers in in vestm en t 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 fa ce a m ou n t o f T rea su ry bills a pp lied for, unless the tenders are a ccom p a n ied b y an exp ress guaranty o f payment by an incorporated bank o r trust company. 5. I f the 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 a y be disregarded. 1 F e d eral R eserve B a n k o f N e w Y ork NOTICE OF ALLOTMENT OF UNITED STATES OF AMERICA SPECIAL TREASURY BILLS October 13, 1960 Your □ competitive □ noncompetitive tender for— 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 3 6 4 - D A Y T R E A S U R Y B IL LS D A TED O CTO BER 17, I9 6 0 , DUE OCTOBER 16, 1961 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 or in a like face amount of the maturing issue of Treasury bills at the Federal Reserve Bank of New York on or before October 17, 1960. If settlement is to be made by check on a bank other than the Federal Reserve Bank of New York, such check should be received by us in time for collection on October 17, 1960, otherwise it will be necessary for the bidder to pay for the securities allotted at the price computed on the rate of discount on such securities to the date of collection. Delivery of the Treasury bills will be made in accordance with instructions given on your tender form and your reserve account will be charged on the issue date if you so indicated. If additional instructions are required, the attached Letter of Instructions form should be com pleted in duplicate and returned promptly to the Federal Reserve Bank of New York. F ed eral R eserve B a n k o f N e w Y o rk Fiscal Agent of the United States. Checked by. 2 (This letter o f instructions, accom panied by attached duplicate copy, should be filled in and returned to Federal Reserve Bank o f New Y ork ) LETTER OF INSTRUCTIONS To F ed eral R eserve B a n k o f N e w Y o r k , Fiscal Agent of 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 □ noncompetitive tender for— 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 3 6 4 - D A Y T R E A S U R Y BILLS D A TED O CTO BER 17, 19 60 , DUE O CTO BER 16, 1961 accepted at the price of (per 100), in the amount of— (maturity value) Please issue and make delivery of the bills as instructed below: Denomination Pieces $ P le a s e D o N o t U se T h is S p ace M aturity Value 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 (for account of member bank only) □ 4. Allotment transfer (see list attached) □ 5. Special instructions: (No changes in delivery instructions will be accepted) Payment will be made as follows: □ By charge to our reserve account □ By cash or other immediately available funds □ By surrender of $ ......................... (maturity value) of maturing Treasury bills. Pay cash adjustment, if any— □ By check □ By credit to our reserve account (Payment cannot be made through Treasury Tax and Loan Account) T h e u n d e r s ig 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 tif ie s t h 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 i n s t r u c t e d to d is p o s e o f in th e m a n n e r i n d ic a te d in ite m n u m b e r e d 3 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 . o f instructions must be signed in the space provided and re immediately to T h is le t te r Subm itted by (Please print) o ffic ia lly tu rn ed Federal Reserve Bank o f New York, F isca l A gen t o f the United States. By B y .................... (Authorized signature(s) required) T i t l e ................ Address ........................... T itle .............. ...................................................................................................................... (S p a c e s b e lo w a r e fo r th e u se o f F e d e ra l R e se rv e B a n k o f N ew Y o r k ) Government B ond Division Safekeeping Division D eliver against payment o f $ .............................................................................................................................. D E L IV E R Y R E C E IP T Received from Federal Reserve Bank o f N ew York, Fiscal A gent o f the United States, the above described securities allotted in the amount indicated above. http://fraser.stlouisfed.org/ D ate. Federal Reserve Bank of St. Louis Subscriber. B y. 3 (DUPLICATE FOR USE OF FEDERAL RESERVE BANK OF NEW YORK) LETTER OF INSTRUCTIONS To F ederal R eserve B a n k of New Y ork, Fiscal Agent of 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 □ noncompetitive tender for— 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 3 6 4 -D A Y T R E A S U R Y BILLS D A T E D O C T O B E R 1 7 , 1 9 6 0 , D U E O C T O B E R 1 6 , 1961 accepted at the price of (per 100), in the amount of— $ (maturity value) Please issue and make delivery of the bills as instructed below: Pieces Deuomi nation $ P l e a s e D o N ot U s e T h i s S pa c e M aturity Value 1,000 5,000 10,000 100,000 500,000 1,000,000 T o ta ls — □ 1. Deliver over the counter to the undersigned □ 2. Ship to the undersigned □ 3. Hold in safekeeping (for account of member bank only) □ 4. Allotment transfer (see list attached) □ 5. Special instructions: (No changes in delivery instructions will be accepted) Payment will be made as follows: □ By charge to our reserve account □ By cash or other immediately available funds □ By surrender of $ ......................... (maturity value) of maturing Treasury bills. Pay cash adjustment, if any— □ By check □ By credit to our reserve account (Payment cannot be made through Treasury Tax and Loan Account) T h e u n d e rsig n e d , i f a b a n k o r trust co m p a n y , h e re b y c e r tifie s that 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 s e o f in th e m a n n er in d ica te d in item n u m b e re d 3 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 . official’ y in the space provided and re- ( Plea.e print) turned immediately to (Authorized signatures) required) Federal Reserve Bank o f New York, F isca l A e en t o f the United States. Address ................................................................... (S p a ces b e lo w are fo r the use o f Federal R eserve Bank o f N ew Y o r k ) Government B ond Division Safekeeping Division Deliver against payment o f $................................................... ........................................................................... D E L IV E R Y R E C E IP T Received from Federal Reserve Bank o f New York, Fiscal A gent o f the United States, the above described securities allotted in the amount indicated above. http://fraser.stlouisfed.org/ DateReserve Bank of St. Louis Federal Subscriber PENDING DELIVERY TICKET FOR GOVERNMENT BOND DIVISION 4 Your 0 competitive 0 noncompetitive tender for— 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 3 6 4 -D A Y T R E A S U R Y BILLS D A T E D O C T O B E R 1 7 , I 9 6 0 , D U E O C T O B E R 1 6 , 1961 which has been accepted at the price of (per 100), in the amount of— P R IN C IP A L MASTER M A T U R IT Y V A L U E P R IN C IP A L DISPOSITION 0 Over the Counter 0 Safekeeping 0 Ship 0 Treasury Tax & Loan 0 Allotment Transfer S P L IT D IS P O S IT IO N M ETHOD OF PAYM ENT □ Reserve Account □ Check or Cash □ Delivery Teller 0 Foreign Oper. Div. 0 Form 12 ALLOTMENT NOTICE FOR SECURITIES DEPARTMENT □ competitive □ noncompetitive 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 3 6 4 -D A Y T R E A S U R Y BILLS D A T E D O C T O B E R 1 7 , 1 9 6 0 , D U E O C T O B E R 1 6 , 1961 $ 5 ALLOTMENT NOTICE FOR SECURITY FILES □ competitive □ noncompetitive 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 3 6 4 -D A Y T R E A S U R Y BILLS D A T E D O C T O B E R 1 7 , 1 9 6 0 , D U E O C T O B E R 1 6 , 1961 Federal Reserve Bank of New York Securities Department (9th Floor) 33 Liberty Street TENDER FOR SPECIAL TREASURY BILLS (D O N O T U SB 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 S ) New York 45, N . Y.
@FedFRASER