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FEDERAL RESERVE BANK OF NEW YORK Fiscal Agent of the United States f C ircu lar N o . 4 9 8 3 1 J an u ary 5 , 1 9 6 1 L J Offering of $1,500,000,000 of Special 365-Day Treasury Bills Dated January 15, 1961 Maturing January 15, 1962 To A ll B anking Institutions, and Others Concerned, in the Sccond Federal R eserv e D istrict: Following is the text o f a notice issued by the Treasury Department for 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 January 15, 1961, in the amount of $1,503,740,000, to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be dated January 15, 1961, and will mature January 15, 1962, when the face amount will be payable without interest. They will be issued in bearer form only, and in denominations of $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 Standard time, Wednesday, January 11, 1961. 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. (Notw ith 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 of any bills of this issue, until after one-thirty o ’clock p.m., Eastern Standard time, Wednesday, January 11, 1961. 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 of the acceptance or rejection thereof. The Secretary of 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 January 16, 1961, in cash or other immediately available funds or in a like face amount of Treasury bills maturing January 15, 1961. 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 of the bills, does not have any exemption, as such, and loss from the sale or other disposition of Treasury bills does not have any special treat ment, as such, under the Internal Revenue Code of 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 of the circular may be obtained from any Federal Reserve Bank or Branch. This Bank will receive tenders up to 1:30 p.m., Eastern Standard time, Wednesday, January 11, 1961, 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 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. P a y m e n t f o r th e T r e a s u r y bills ca n n o t b e m a d e b y c re d it th rou g h th e T r e a s u r y T a x and L o a n A c c o u n t. S e ttle m e n t m u st b e m a d e in cash o r o th e r im m ed ia tely availab le fu n d s o r in m a tu rin g T r e a s u r y bills. A lfred H a y e s , President. ( o v e r )- IM P O R T A N T — T h e discount rate on the bills of this issue w ill be com puted on a bank discount basis o f 3 6 0 d a y s, as is currently the practice on all issues o f Treasury bills. No.................................. TENDER FOR SPECIAL 365-DAY TREASURY BILLS Dated January 15, 1961 To F ed era l R eserve B an k o f N ew Maturing January 15, 1962 Dated at ........................................................ ....................................... ....................... , 1961 Y ork , Fiscal Agent o f the United States. Pursuant to the provisions of 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 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 : C O M P E TIT IV E TEN DER [ D o not fill in both Com petitive and N oncom petitive tenders on one form $ ............................................................ (maturity value), or any lesser amount that may be awarded. Price: .....................................per 100. ( P r ice must be exp ressed zvith not m ore than three decimal places, f o r exam ple, 99.925) i J N O N C O M PE TITIVE TEN DER $ ............................................................ (maturity value). (N o t to exceed $400,000 fo r one bidder through all sources) A t 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 1,000 □ 5,000 □ □ 10,000 □ 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 only) 4. Allotm ent transfer (see list attached) 5. Special instructions: Payment will be made as fo llo w s : □ By charge to our reserve account □ By cash or other immediately avail able funds □ B y surrender o f $ .............................. (maturity value) of maturing Treasury biiis. Pay cash adjust ment, if any— 500,000 1,000,000 By check □ B y credit to our reserve account (P aym en t cannot be made through Treasury T a x and Loan A ccoun t) 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 o f in the manner indicated in item 3 above are owned solely by the undersigned. W e h er eb y a g r e e n o t to b u y o r to sell, o r to m a k e a n y a g re em en ts zvith r e s p e c t to th e p u rch a se o r sale o r o th e r d isp o sitio n o f an y bills o f this is s u e ’ u ntil a fte r o n e-th irty o ’ clo ck p .m ., E a stern S tan dard tim e, W ed n es d a y , Janu ary 1 1 , 1961. Name of subscriber ............................................................................................................... I n s e r t th is t e n d e r in y e l l o w e n v e lo p e m a rk ed “ T en d er fo r (Please print) . By .................................................................................. By (O fficial signature(s) required) Title ....................... Title ............. S p e c ia l T r e a s u r y B ills ’ Address ....................................................................................... (Banks submitting tenders for customer account must indicate name on line below, or attach a list) (N am e o f customer) (Address) IN S T R U C T IO N S : 1. N o tender for less than $1,000 will be considered, and each tender must be for an even multiple o f $1,000 (maturity value). 2. Others than banking institutions will not be permitted to submit tenders except fo r their ow n account. Banks submitting tenders fo r 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 o f payment. Form s 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 o f the corporation authorized to make the tender, and the signing o f the tender by an officer o f the corporation w ill 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 o f the firm, w ho should sign in the form “ ...................................................................................................... . a copartnership, by ...................................................................................................................... a member o f the firm.” 4. Tenders will be received without deposit fro m 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 o f the face amount o f Treasury bills applied for, unless the tenders are accompanied by an express guaranty o f payment by an incorporated bank or trust company. 5. I f the language o f this tender is changed in any respect, which, in the opinion o f the Secretary o f the Treasury, is material, the tender m ay be disregarded. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis 1 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 NOTICE OF ALLOTMENT OF U N ITED STATES OF A M E R IC A SPECIAL T R E A S U R Y BILLS January 12, 1961 Y ou r □ 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 5 -D A Y D A T E D J A N U A R Y 15, 1961, D U E JA N U A R Y has been accepted at the price o f TREASURY B IL L S 15, 1962 (per 100), in the amount o f— $ (m aturity value) Settlement therefor must be made in cash or other immediately available funds or in a like face amount o f the maturing issue o f Treasury bills at the Federal Reserve Bank o f New Y ork on or before January 16, 1961. 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 fo r collection on January 16, 1961, otherwise it will be necessary fo r the bidder to pay for the securities allotted at the price computed on the rate o f discount on such securities to the date o f collection. Delivery o f 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. I f additional instructions are required, the attached Letter o f Instructions form should be com pleted in duplicate and returned prom ptly to the Federal Reserve Bank o f New York. F e d e ra l R eserve B a n k o f N ew Y ork Fiscal A gent o f the United States. Checked 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 r a l R e s e r v e B a n k o f N e w Y o r k , 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 r k 45, N. Y . A tte n tio n : G overn m en t B o n d D iv ision — 2n d F lo o r D ated a t ............................................................. ........................................................................ 1961 O n ou r □ com p etitive □ n oncom p etitive tender 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 J A N U A R Y 15, 1 9 61 , DUE J A N U A R Y 15, 1962 a ccep ted at the p rice o f (p e r 1 0 0 ), in the a m ou n t o f— $ (m a tu rity v a lu e) Please issue an d m ake d eliv ery o f the bills as in stru cted b e lo w : D e n o m in a t io n P ie c e s $ P lease D o N M a t u r i t y V a lu e ot U se T h is S pace 1,000 5,000 10,000 100,000 500,000 1,000,000 Totals— □ 1. D e liv e r over the cou nter to the u nd ersigned □ □ 2. 3. P a y m en t w ill be m ade as fo llo w s : □ S h ip to the u nd ersigned H o ld in safek eepin g (f o r a ccou n t o f m em ber bank o n ly ) 4. A llotm en t tra n sfer (see list attached) □ 5. S p ecia l in stru ction s: □ B y ch arge to o u r reserve a ccou nt □ □ B y cash or other 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 adju stm ent, if an y— □ B y check □ B y cre d it to ou r reserve a ccou nt ( Paym ent cannot be made through Treasury Tax and Loan A ccou n t) (N o changes in delivery instructions will be accepted) Th e 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. This letter o f instructions must be signed ^ . *•, • . i officially m the space provided and re, turned immediately to Subm itted b y ^ liy .................................................. ................. ........................ (Please print) ...................................................................................... . B y .................. (Authorized signature(s) required) T it le .......................................................................................... T it le ................ Federal Reserve Bank o f New York, F i s c a l A g e n t o f t h e U n it e d S t a t e s . A d dress ........................................................................................................................ (Spaces below are for the use of Federal Reserve Bank of New York) S a f e k e e p i n g D i v is i o n G o v e r n m e n t B o n d D iv is io n Payment received.................. C h eck ed D e l i v e r a g a i n s t p a y m e n t o f $. D e liv e r e d D E L IV E R Y R e c e iv e d f r o m F e d e r a l R e s e r v e B a n k o f N e w in d i c a t e d a b o v e . Date............................. Y o r k , F is c a l A g e n t o f . R E C E IP T t h e U n i t e d S t a t e s , t h e a b o v e d e s c r i b e d s e c u r it ie s a l lo t t e d in t h e a m o u n t Subscriber..................................................................... By...................................................................... . 3 (DUPLICATE FOR USE OF FEDERAL RESERVE BANK OF NEW YORK) LETTER OF INSTRUCTIONS To F ed eral R eserve B a n k o p N e w Y F isca l A g e n t o f the U nited States, F ed era l R eserve P . O. Station, N ew Y o rk 45, N. Y . ork , A tte n tio n : G overn m en t B o n d D iv ision — 2nd F lo o r D a ted a t ............................................................. ........................................................................ 1961 O n ou r □ com petitive □ n oncom petitive tender f o r — UNITED S T A T E S OF A M E R IC A SP ECIAL 3 6 5 -D A Y T R E A S U R Y BILLS D A T E D J A N U A R Y 15, 1961, DUE J A N U A R Y 15, 1962 accepted at the p rice o f (p e r 1 0 0 ), in the am ount o f— $ (m a tu rity valu e) Please issue a n d make delivery o f the bills as in stru cted b e lo w : P ie c e s D e n o m in a t io n $ P M a t u r it y V a lu e 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— P aym en t w ill be m ade as fo llo w s : □ 1. □ □ □ 2. S h ip to the undersigned 3. H o ld in safekeeping ( f o r accou nt o f m em ber bank o n ly ) 4. A llotm en t tra n sfer (see list attached) D eliv er over the cou n ter to the undersigned □ 5. S pecial in stru ction s: □ B y charge to o u r reserve accou nt □ □ B y cash or other im m ediately available fu n d s B y su rrender o f $ .............................. (m a tu rity valu e) o f m aturing T reasu ry bills. P a y cash adjustm ent, if any— □ B y check □ B y cred it to ou r reserve account (Paym ent cannot be made through Treasury Tax and Loan A ccoun t) (N o changes in delivery instructions will be acccpted) 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. This letter o f instructions must be signed officially in the space provided and re S u b m it t e d (Please print) By turned immediately to by By ..................... (Authorized signature(s) required) T it le .......................................................................................... T it le ................ Federal Reserve Bank o f New York, F is c a l A g e n t o f th e U n ite d S ta te s. A d dress ......................................................................................................................................... (Spaces below are for the use of Federal Reserve Bank of New York) G o v e r n m e n t B o n d D iv is io n S a f e k e e p i n g D iv is io n D E L IV E R Y R e ce iv e d fr o m F e d e ra l R eserve B an k o f N ew in d ic a te d a b o v e . http://fraser.stlouisfed.org/ Date. Federal Reserve Bank of St. Louis Subscriber. Y o r k , F is c a l A g e n t o f R E C E IP T th e U n i t e d S t a t e s , t h e a b o v e d e s c r ib e d s e c u r it ie s a l lo t t e d in t h e a m o u n t By. PENDING DELIVERY TICKET FOR GOVERNMENT BOND DIVISION Your □ com p etitive □ 4 n oncom petitive ten der fo r — U N ITE D S T A T E S OF A M E R IC A SPECIAL 3 6 5 -D A Y T R E A S U R Y BILLS D A T E D J A N U A R Y 15, 19 61 , D UE J A N U A R Y 15, 19 62 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 A T U R IT Y V A L U E PRINCIPAL DISPOSITION □ Over the Counter □ Safekeeping □ Ship 0 Treasury Tax & Loan Q Allotment Transfer SPLIT D ISPO SITIO N M ETHOD OF PAYM EN T □ Reserve Account □ Check or Cash □ Delivery Teller □ Foreign Oper. Div. □ 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 5 - D A Y T R E A S U R Y B IL L S D A T E D JA N U A R Y 1 5 , 1 9 6 1 , D U E JA N U A R Y 1 5 , 1 9 6 2 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 5 - D A Y T R E A S U R Y B IL LS D A T E D JA N U A R Y 1 5 , 1 9 6 1 , D U E JA N U A R Y 1 5 , 1 9 6 2 Federal Reserve Bank of New York Securities Department (9th Floor) 33 Liberty Street TENDER FOR SPECIAL t r e a s u r y b ills (D O N O T U SB T H IS K N V B L O P E P O S O T H E R P U R P O S E S ) New York 45, N. Y.
@FedFRASER