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FEDERAL RESERVE BANK OF NEW YORK Fiscal Agent of the United States £ C ircu lar N o . 5 0 9 2 ' O c to b e r 3 , 1961 Offering of $2,000,000,000 of Special 364-Day Treasury Bills Dated October 16, 1961 Maturing October 15, 1962 To All Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal Reserve District: Following is the text of a notice issued by the Treasury Department for release today: T h e T re a su ry D epartm en t, b y this pu blic n otice, invites ten ders fo r $2,000,000,000, or thereabouts, o f 364-day T reasu ry bills, fo r cash and in e x ch a n ge for T rea su ry bills m aturing O c to b e r 16, 1961, in the a m ou n t o f $1,502,165,000, to be issued on a discou n t basis under com p etitive and n on com p etitive b id d in g as h ereinafter p rovided . T h e bills o f this series w ill be dated O c t o b e r 16, 1961, and w ill mature O c to b e r 15, 1962, w hen the face am ou nt w ill be payable w ith ou t interest. T h e y w ill be issued in bearer fo rm on 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 atu rity va lu e). T e n d e rs w ill be receiv ed at Federal R eserve B anks and B ra n ch es up to the clo s in g hour, tw o o ’ c lo ck p.m ., E astern D a y lig h t S a vin g tim e, T u esd a y, O cto b e r 10, 1961. T en d ers w ill n ot be receiv ed at the T rea su ry D epartm en t, W a sh in g ton . E ach ten der m ust be fo r an even m ultiple o f $1,000, and in the case o f co m p etitive ten ders the price offered m ust be exp ressed on the basis o f 100, w ith n ot m ore than three decim als, e.g., 99.925. F ra ction s m a y n ot be used. (N o tw ith stan din g the fact that these bills w ill run fo r 364 days, the discou 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 rrently the practice on all issues o f T rea su ry b ills.) It is u rged that tenders be m ade on the printed form s and fo rw a rd e d in the special en velopes w h ich w ill be supplied b y F ed era l R e se rve B anks or B ran ches on application th erefor. O th ers than bank in g institutions w ill n ot be perm itted to subm it tenders e xcep t fo r their ow n a ccou nt. T en d ers w ill be receiv ed w ith ou t deposit fro m in corp ora ted banks and trust com p a n ies and fro m respon sib le and re co g n ize d dealers in in vestm en t securities. T en d ers fro m oth ers m ust be a c c o m panied b y pa ym en t o f 2 p ercen t o f the face a m ou n t o f T reasu ry bills a pplied for, unless the tenders are a ccom p a n ied b y an exp ress gu aranty o f paym ent b y an in corp ora ted bank or trust com pa n y. Im m edia tely after the closin g hour, tenders w ill be op en ed at the F ed eral R eserve B anks and B ran ches, fo llo w in g w hich pu blic a nn oun cem ent w ill be m ade b y the T rea su ry D epa rtm en t o f the am ou nt and price ran ge o f a ccep ted bids. T h o s e sub m ittin g tenders w ill be advised o f the a ccep ta n ce or rejection th ereof. T h e S ecreta ry o f the T rea su ry exp ressly reserves the right to a ccep t or reject any or all tenders, in w h ole or in part, and his a ction in any such respect 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 any one bidd er w ill be a ccep ted in full at the average price (in three d ecim a ls) o f a ccep te d c o m petitive bids. Settlem ent for a ccep ted tenders in a cco rd a n ce w ith the bids m ust be m ade or com p leted at the F ederal R eserve B ank on O c to b e r 16, 1961, in cash or oth er im m ediately available fun ds or in a like face am ou nt o f T rea su ry bills m aturing O c to b e r 16, 1961. 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 differen ces betw een the par value o f m atu rin g b ills a ccep ted in exch a n ge 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 h eth er interest or gain fro m the sale or oth er disp osition o f the bills, d oes not have any exem ption , as such, and loss fro m the sale o r oth er disp osition o f T rea su ry bills does n ot have any 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 or State, but are exem p t fro m all taxa tion n o w or hereafter im posed on the principal or interest th ereof b y any State, or any o f the possession s o f the U n ited States, or b y any loca l taxing authority. F o r p u rposes o f taxation the a m ou n t o f discou n t at w h ich T re a s u ry bills are origin 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 discou n t at w h ich bills issued hereunder are sold is n ot con sidered to a ccru e until such bills are sold, red eem ed or oth erw ise disp osed o f, and such bills are exclu d ed fro m con sideration as capital assets. A c co r d in g ly , the ow n er o f T rea su ry bills (oth er than life insurance c o m pan ies) issued hereunder need include in his in com e tax return on ly the differen ce betw een the price paid fo r such bills, w hether on origin a l issue or on subsequent purchase, and the am ou nt a ctu ally receiv ed either u pon sale or red em ption at m aturity du rin g the taxable year for w h ich the return is m ade, as ord in a ry gain o r loss. T rea su ry D epa rtm en t Circular N o. 418, R evised , and this n otice, prescribe the term s o f the T rea su ry bills and g o v e rn the con d ition s o f their issue. C opies o f the circular m a y be obtain ed from any Federal R eserve B ank or B ran ch. This Bank will receive tenders up to 2 p.m., Eastern Daylight Saving time, Tuesday, October 10, 1961, 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 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 360 days, as is currently the practice on all issues o f Treasury bills. No................................. TENDER FOR SPECIAL 364-DAY TREASURY BILLS Dated October 16, 1961 To F ederal R eserve B a n k of N e w .Y Maturing October 15, 1962 ork , Dated at Fiscal Agent of the United States. 1961 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 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 October 16, 1961 at the price indicated b elow : C O M P E TIT IV E T E N D E R [ D o not fill in both Com petitive and N oncom petitive tenders on one form J $ ............................................................ (maturity value), or any lesser amount that may be awarded. P r i c e : .....................................per 100. (P rice must be expressed with not m ore than three decimal places, fo r exam ple, 99.925) N O N C O M PE TITIV E TE 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 $ M aturity value 1,000 □ 5,000 □ □ 10,000 □ 100,000 □ 1. Deliver 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 : 0 B y charge to our reserve account □ B y cash or other immediately avail able funds □ B y surrender of $ ................................ (m aturity value) o f maturing Treasury bills. Pay cash adjust ment, if any— 500,000 1,000,000 (N o changes in delivery instructions will be accepted) Total □ B y check □ B y credit to our reserve account (P aym en t cannot be made through Treasury T ax 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 o f in the manner indicated in item 3 above are owned solely by the undersigned. Name o f subscriber Insert this tender in yellow en velope marked “ Tender fo r Special Treasury Bills’ By Title (Please print) By (Official signature(s) required) ....................... Title ............. Address (Banks submitting tenders for customer account must indicate name on line below, or attach a list) (N am e of customer) IN S T R U C T IO N S : 1. N o tender for less than $1,000 w ill be considered, and each tender must be for an even multiple o f $1,000 (m aturity valu e). 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 noncom petitive 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 w ill be furnished on request. 3. I f 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 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 o f the firm, w ho should sign in the form “ ............................................................................................................ . a copartnership, by ...................................................................................................................... a member o f the firm.” 4. Tenders w ill 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 o f 2 percent of the face amount o f Treasury bills applied for, unless the tenders are accompanied by an express guaranty o f payment by an incor porated bank or trust company. 5. I f the language o f this tender is changed in any respect, which, in the opinion of the Secretary o f the Treasury, is material, the tender may be disregarded. F ederal R eserve B ank of New Y ork NOTICE OF ALLOTMENT OF U N ITED STATES OF A M E R IC A SPE C IA L T R E A S U R Y BILLS October 11, 1961. Your O competitive Q 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 16, 1961, DUE O C T O B E R 15, 1962 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 16, 1961. I f 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 16, 1961, otherwise it will be necessary for the bidder to pay for the securities allotted at the accepted price, plus interest to the date of collection at the equivalent rate of discount. Delivery of the Treasury bills will be made in accordance with instructions submitted with your tender, and your reserve account will be charged on October 16, 1961 if you so indi cated. I f you did not submit such instructions, a Letter of Instructions form is enclosed; please complete the letter in duplicate and return it promptly to this Bank. F ederal R eserve B a n k of N e w Y ork Fiscal Agent of 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 ra l R eserve B a n k o f N ew Y ork , Fiscal A gent of the United States, Federal Reserve P. 0 . Station, New Y ork 45, N. Y . A ttention: Government Bond Division— 2nd F loor Dated a t .............. .1961 On onr Q competitive □ noncompetitive tender fo r— U N IT E D STATES DATED OF A M E R IC A S P E C IA L OCTOBER 16, 1961, DUE 3 6 4 -D A Y TREASURY OCTOBER accepted at the price of 15, B IL L S 1962 (per 100), in the amount of— $ (m aturity value) Please issue and make delivery o f the bills as instructed b elow : Pieces Denomination $ P le a s e Do 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. H old in safekeeping (fo r account of member bank only) 4. Allotm ent transfer (see list attached) 5. Special instructions: (No changes in delivery instructions will be accepted) Payment will be made as follow 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 (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 or tr u s t c o m p a n y ) h e r e b y c e r t if ie s th 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 in s tr u c te d d is p o s e o f in th e m a n n e r in d ic a te d in it e 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 l e l y b y th e u n d e r s ig n e d . This letter of instructions must be signed officially in the space provided and returned im m ediately to Federal Reserve Bank of New York, Submitted by ............... to (Please print) By (A uthorized signature(s) required) ...................... Title .......................................................................... Title .................. F iscal A gen t o f the United States. A d d r e s s .......................................................................................................... ( S p a c e s b e lo w a re f o r th e u s e o f th e 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 ) Safekeeping Division Government B ond Division Payment received ................. Checked. . Deliver against payment of $. Delivered. D E L IV E R Y R E C E IP T Received from Federal Reserve Bank o f New York, F iscal A gent o f the United States, the above described securities allotted in the amount indicated above. Date.............................................. Subscriber............................................................................. B y..................................................................... (D U P L I C A T E F O R U S E 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 ed era l R eserve B an k o f N ew Y ork , Fiscal Agent of the United States, Federal Reserve P. 0 . Station, New York 45, N. Y . A ttention: Government Bond Division— 2nd F loor Dated a t .............. .1961 On our 0 competitive Q noncompetitive tender for— U N IT E D STATES DATED OF A M E R IC A OCTOBER 16, S P E C IA L 1961, DUE 3 6 4 -D A Y TREASURY OCTOBER 15, B IL L S 1962 (per 100), in the amount of- accepted at the price of (maturity value) $ Please issue and make delivery o f the bills as instructed b elow : Pieces Denomination $ M aturity Value P l e a s e D o N ot U se T h i s S pac e 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. Allotment transfer (see list attached) 5. Special instructions: (No changes in delivery instructions will be accepted) 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— Q B y check □ B y 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 or tru st c o m p a n y ) h e r e b y c e r tifie s th a t th e T r e a s u r y b ills w h ic h y o u d is p o s e o f in th e m a n n e r in d ic a te d in it e 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 l e l y b y th e u n d e r s ig n e d . This letter of instructions must be signed officially in the space provided and returned immediately to Submitted by Federal Reserve Bank of New York, Title .............. ............. a r e h e r e b y in s tr u c te d to (Please print) ................ . By ................ (A uthorized signature(s) required) ....................... Title ................ Fiscal Agent o f the United States. Address ( S p a c e s b e lo w a r e f o r th e u s e o f th e 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 ) Safekeeping Division Government Bond 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 gent o f the United States, the above described securities allotted in the amount indicated above. B y ................................................................................ M - P E N D IN G D E L I V E R Y T I C K E T F O R G O V E R N M E N T B O N D D IV IS IO N 4 Your O competitive □ noncompetitive tender for— U N IT E D STATES DATED OF A M E R IC A S P E C IA L OCTOBER 16, 1961, DUE 3 6 4 -D A Y TREASURY OCTOBER which has been accepted at the price of 15, B IL L S 1962 (per 100), in the amount of— P R IN C IP A L M ASTER M A T U R IT Y V A L U E P R IN C IP A L D I S P O S I T I O N □ Over the Counter □ S P L IT D IS P O S IT IO N M ETHOD OF PAYM ENT □ Reserve Account Safekeeping □ Check or Cash □ Ship □ Delivery Teller □ Treasury Tax & Loan □ Foreign Oper. Div. □ Form 12 □ Allotment Transfer A L L O T M E N T N O T IC E F O R S E C U R IT IE S D E P A R T M E N T □ competitive □ noncompetitive U N IT E D S T A T E S O F A M E R I C 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 16, 1961, DU E O C T O B E R 15, 1962 $ A LLO TM E N T N OTICE FO R SE C U R ITY FILES □ competitive Q 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 16, 1 9 6 1 , D U E O C T O B E R 15, 1 9 6 2 $ 6 Federal Reserve Bank of New York Securities Department (9th Floor) ii Liberty Street TENDER FOR SPECIAL t r e a s u r y b ills (D O N O T U S E T H I S E N V E L O P E FO R O T H E R P U R P O SE 8) -vt y 1 A~ \ r y New York 45, N. Y.
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