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FEDERAL RESERVE BANK OF N EW YORK Fiscal Agent of the United States r Circular N o. 5 0 5 4 1 L July 5, 1961 J Offering o f $2,000,000,000 of Special 365-Day Treasury Bills Dated July 15, 1961 Maturing July 15, 1962 T o A ll In corporated Banks 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: The Treasury Department, by this public notice, invites tenders for $2,000,000,000, or thereabouts, of 365-day Treasury bills, for cash and in exchange for Treasury bills maturing July 15, 1961, in the amount of $1,500,509,000, 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, 1961, and will mature July 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 Daylight Saving time, Tuesday, July 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 competitiye 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. (N otw 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. 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 July 17, 1961, in cash or other immediately available funds or in a like face amount of Treasury bills maturing July 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 Daylight Saving time, Tuesday, July 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 ot b e m a d e b y c r e d it th ro u 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 a v a ila b 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 ayes, President. ( over) IM P O R T A N T — The discount rate on the bills o f this issue w ill b e 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 July 15, 1961 Maturing July 15, 1962 T o F e d e r a l R eserve B a n k o f N e w Y Fiscal Agent o f the United States. ork, Dated at ...................................................... . ............................................................... . 1961 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 July 17, 1961 at the price indicated below : C O M P E T IT IV E T E N D E R r D o n ot fill in both C om petitive and N on com petitive tenders on one form $ ............................................................ (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, for exam ple, 99.925) N O N C O M P E T IT IV E T E N D E R ] $ ............................................................ (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 $ Maturity value 1,000 □ 5,000 □ □ 10,000 □ 100,000 □ 1. Deliver over the counter to the undersigned 2. Ship to the undersigned 3. Hold in safekeeping (for ac count of member bank only) 4. Allotment transfer (see list attached) 5. Special instructions: Payment will be made as follows: □ By charge to our reserve account □ By cash or other immediately avail able funds □ By surrender of $ ......................... .. (maturity value) of maturing Treasury bills. Pay cash adjust ment, if any— 500,000 1.000.000 (N o changes in delivery instructions w ill be accepted) Total □ By check □ By credit to our reserve account (P a ym en t cannot be made through Treasury T a x and Loan A ccou n t) The undersigned (if a bank or trust com pany) 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. Name of subscriber (Please print) In sert t h is ten d er in y e l l o w e n v e l o p e m a rk ed “ T en d er fo r By Title By (O fficial signature(s) required) ....................... 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 custom er) 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 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 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 of 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 responsible 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 incor porated 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. 1 F e d e ra l R e serve B a n k of New Y ork NOTICE OF ALLOTMENT O F U N ITED STATES OF A M E R IC A SPE C IA L T R E A S U R Y BILLS J u ly 12, 1961. Y our □ competitive □ noncompetitive tender fo r— UNITED S T A T E S O F A M E R IC A SPECIA L 3 6 5 -D A Y T R E A S U R Y BILLS D A T E D JULY 15, 1961, DUE JU LY 15, 1962 has been accepted at the price o f (per 1 00), 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 York on or before J uly 17, 1961. I f settlement is to be made b y 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 for collection on J u ly 17, 1961, otherwise it w ill 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. D elivery o f the Treasury bills will be made in accordance with instructions submitted with you r tender, and you r reserve account will be charged on J u ly 17, 1961 if you so indicated. I f you did not submit such instructions, a Letter o f Instructions form is enclosed; please com plete the letter in duplicate and return it prom ptly to this Bank. F ederal R eserve B ank of New Y ork Fiscal A gent o f the United States. Checked by. (This letter of instructions, accompanied by attached duplicate copy, should be filled in and returned to 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 gent o f the United States, Federal Reserve P . 0 . Station, New Y ork 45, N. Y . A tten tion: Government B ond Division— 2nd F loor Dated a t ......................................................... ....................................................................1961 On our □ com petitive Q noncompetitive tender fo r— UNITED S T A T E S O F A M E R IC A SPECIA L 3 6 5 -D A Y T R E A S U R Y BILLS D A T E D JULY 15, 1961, DUE JULY 15, 1962 accepted at the price o f (per 100), in the 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 T o ta ls — □ □ □ □ □ 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. Allotm ent transfer (see list attached) 5. Special instructions: ( N o c h a n g e s in d e li v e r y in s tr u c tio n s w ill b e a c c e p t e d ) Payment 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 surrender o f $ ............................ (m aturity value) o f maturing Treasury bills. Pay cash adjustment, if any— □ B y check □ B y credit to our reserve account ( P a y m e n t c a n n o t b e m a d e th r o u g h T r e a s u r y T a x a n d Loan A cco u n t) T h e undersigned, i f a bank o r trust com pany, hereby certifies that the Treasury bills which you are hereby instructed to dispose o f in the manner indicated in item num bered 3 above are ow ned solely by the undersigned. This letter of instructions must be signed officially in the space provided and returned immediately to Federal Reserve Bank of New York, Submitted b y .............................................................. (Pi'e^e’ ’ •Y By ............................................... (A u th o r iz e d s ig n a tu r e (s ) req u ired ) Title ............................................................................... Title .................. Fiscal Agent of the United States. A d d ress............................................................................................................. (S p a ces below are fo r the use o f the Federal R eserve Bank o f New Y o rk ) Safekeeping Division Government Bond Division Payment received ........................................................................................................................................... D E LIV E R Y 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. http://fraser.stlouisfed.org/ Date.................................................... Federal Reserve Bank of St. Louis Subscriber................................................................................... B y ........................................................................... (D U P L IC A T E F O R U SE 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 e d e r a l R e s e r v e B a n k o f N e w Y Fiscal A gent o f the United States, Federal Reserve P. 0 . Station, New Y ork 45, N. Y. ork, A tten tion: Government B ond Division— 2nd F loor Dated at .1961 On onr □ competitive □ noncompetitive tender for— UNITED S T A T E S O F A M E R IC A SPECIA L 3 6 5 -D A Y T R E A S U R Y BILLS D A T E D JULY 15, 1961, DUE JULY 15, 1962 accepted at the price o f (p er 100), in the 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 Do N ot U se T his S pace 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. H old in safekeeping (fo r account o f member bank only) 4. Allotm ent transfer (see list attached) 5. Special instructions: ( N o c h a n g e s in d e liv e r y in s tr u c tio n s w ill b e a c c e p t e d ) Payment 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 surrender o f $ ............................ (m aturity value) o f maturing Treasury bills. P ay cash adjustment, if any— □ B y check □ B y credit to our reserve account ( P a y m e n t c a n n o t b e m a d e th r o u g h T r e a s u r y T a x an d L oa n A cco u n t) T he undersigned, i f a bank or trust com pany, hereby certifies that the Treasury bills w hich you are hereby instructed to dispose o f in the manner indicated in item num bered 3 above are ow ned solely by the undersigned. This letter of instructions must be signed officially in the space provided and returned immediately to Federal Reserve Bank of New York, Submitted b y ............................................................................. By ............................................... (Authorized signature(s) required) Title ......................................................................... Title ................. Fiscal Agent o f the United States. A d d re ss..................................................................................................... (S p aces below are fo r the use o f the Federal R eserve Bank o f New Y o rk ) Safekeeping Division Government Bond Division D E LIV E R Y RECEIPT 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. http://fraser.stlouisfed.org/ D ate.................................................... Federal Reserve Bank of St. Louis Subscriber................................................................................... B y ........................................................................... PEN DIN G D E L IV E R Y T IC K E T FO R G O V E R N M E N T BOND D IVISION Y our □ 4 competitive Q noncompetitive tender fo r— UNITED S T A T E S O F A M E R IC A SPECIA L 3 6 5 -D A Y T R E A S U R Y BILLS D A T E D JU LY 15, 1961, DUE JULY 15, 1962 which has been accepted at the price o f (p e r 100), in the amount o f — PRIN CIPAL MASTER M ATURITY VALUE PRIN CIPAL DISPOSITION SPLIT D ISPO SITION M E TH O D O F PAY M E N T □ Over the Counter □ Reserve Account □ Safekeeping □ Check or Cash □ Delivery Teller □ Ship □ Foreign Oper. Div. □ Treasury Tax & Loan □ Form 12 [ ] Allotment Transfer i A LL O TM E N T N O TICE FO R SECURITIES D E P A R T M E N T □ competitive □ noncompetitive UNITED S T A T E S OF A M E R IC A SPECIA L 3 6 5 -D A Y T R E A S U R Y BILLS D A T E D JULY 15, 1961, DUE JULY 15, 1962 $ 5 A LL O TM E N T N O TICE FO R SE C U R ITY FILES Q competitive □ noncompetitive UNITED 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 JULY 15, 1961, DUE JULY 15, 1962 Federal Reserve Bank of N ew York Securities Department (9th Floor) 33 Liberty Street TENDER FOR SPECIAL t r e a s u r y b ills (D O NOT USB T H IS EN V E LOPE FOR OTHER PURPOSES) New York 45, N. Y.
@FedFRASER