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FE D ER AL R E SE R V E BANK O F N E W YORK Fiscal Agent of the United States r Circular No. 5 1 7 2 1 L April 3, 1962 J Offering of $2,000,000,000 of Special 365-Day Treasury Bills Dated April 15, 1962 Maturing April 15, 1963 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: 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 April 15, 1962, in the amount of $2,000,462,000, to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be dated April 15, 1962, and will mature April 15, 1963, 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, $50,000, $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 p.m., Eastern Standard time, Tuesday, April 10, 1962. Tenders will not be received at the Treasury Department, W ashington. Each tender must be for an even multiple o f $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. (Notwithstanding 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 form s and forwarded in the special envelopes which will be supplied by Federal Reserve Banks or Branches on application therefor. Banking institutions generally may submit tenders for account o f customers provided the names o f the customers are set forth in such tenders. Others than banking institutions will not be permitted to submit tenders except for their own account. Tenders will be received without deposit from incor porated 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 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, follow ing which public announcement will be made by the Treasury Department of the amount and price range o f 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) o f accepted com petitive bids. Settlement for accepted tenders in accordance with the bids must be made or com pleted at the Federal Reserve Bank on April 16, 1962, in cash or other immediately available funds or in a like face amount o f Treasury bills maturing April 15, 1962. Cash and exchange tenders will receive equal treatment. Cash adjustments will be made for differences between the par value o f maturing bills accepted in exchange and the issue price of the new bills. The incom e 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 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 im posed 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) o f the Internal Revenue Code of 1954 the amount o f 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. A ccordingly, the owner o f Treasury bills (other than life insurance com panies) issued hereunder need include in his incom e 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 (current revision) and this notice, prescribe the terms o f the Treasury bills and govern the conditions o f their issue. Copies o f 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, Tuesday, April 10, 1962, 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) Federal Reserve Bank of New York Securities Department (9th Floor) 33 Liberty Street TENDER FOR SPECIAL TREASURY BILLS (D O N OT USE T H IS E N V E L O P E F O R O T H E R P U R PO SE S) New York 45, N. Y. F eder al R eserve B a n k of N ew Y 1 ork NOTICE OF ALLOTMENT OF UNITED STATES OF AMERICA SPECIAL TREASURY BILLS April 11, 1962. Your □ competitive □ noncompetitive tender for— UNITED STATES OF AMERICA SPECIAL 365-D A Y TREASURY BILLS DATED APRIL 15, 1962, DUE APRIL 15, 1963 has been accepted at the price of (per 100), in the amount of— $ (maturity value) Settlement therefor must be made in cash or check in 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 April 16, 1962. 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 April 16, 1962; 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 April 16, 1962 if you so indicated. If you did not submit such instructions, a Letter of Instructions form is enclosed; please com plete the letter in duplicate and return it promptly to this Bank. F e d e r a l R eserve B a n k o f N ew Y o r k 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 r a l R eserve B a n k o f N ew Y o rk , 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 ............. .1962 On our □ competitive □ noncompetitive tender for— UNITED STATES OF AMERICA SPECIAL 365-D A Y TREASURY BILLS DATED APRIL 15, 1962, DUE APRIL 15, 1963 (per 100), in the amount of- accepted at the price of ( maturity value) Please issue and make delivery of the bills as instructed below: Pieces Denomination $ Maturity Value P lease Do N ot U se T h i s S pace 1,000 5,000 10,000 50,000 100,000 500,000 1,000,000 Totals— * 1. Deliver over the counter to the undersigned 2. Ship to the undersigned 3. Hold in safekeeping (for account 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 follow s: □ By charge to our reserve account □ By cash or check in 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) 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 numbered 3 above are owned 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 by (Please print) By By (Authorized signature(s) required) Title ......................................................................... Title ................. Fiscal Agent o f the United States. A d d re ss................................................................................................... (Spaces below are for the use of the Federal Reserve Bank of New York) Safekeeping Division Government Bond Division Payment received ................... Checked.. Deliver against payment o f $. Delivered. ] D ELIVERY RECEIPT i Received from Federal Reserve Bank of New York, Fiscal Agent o f the United States, the above described securities allotted in the amount indicated above. http://fraser.stlouisfed.org/ Date.Reserve Bank of St. Louis Subscriber. Federal By. (D U PLICATE FO R USE OF FE D E R A L RESERVE BANK OF N EW YO RK ) LETTER OF INSTRUCTIONS To F e d e r a l R eserve B a n k o f N ew Y o rk , 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 ............. .1962 On our □ competitive □ noncompetitive tender for— UNITED STATES OF AMERICA SPECIAL 365-D A Y TREASURY BILLS DATED APRIL 15, 1962, DUE APRIL 15, 1963 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 Denomination $ Maturity Value P lease Do N ot U s e T h is Space 1,000 5,000 10,000 50,000 100,000 500,000 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 follow s: □ By charge to our reserve account □ By cash or check in immediately available funds □ By surrender of $ .......................... (maturity value) of maturing Treasury bills. Pay cash adjustment, if any— □ By cheek □ By credit to our reserve account (Payment cannot be made through Treasury Tax and Loan Account) 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 numbered 3 above are owned solely by the undersigned. This letter of instructions must be signed Submitted by officially in the space provided and returned immediately to ............. Federal Reserve Bank of New York, (Please print) BJ (Authorized signature(s) required) Title ........................................................................ Title ................. Fiscal Agent o f the United States. A d d ress..................................................................................................... (Spaces below are for the use of the Federal Reserve Bank of New York) Safekeeping Division Government Bond Division Payment r e ce iv e d ................... Checked.. Deliver against payment of $. Delivered. D ELIVE RY RECEIPT Received from Federal Reserve Bank of New York, Fiscal Agent o f 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 PENDING DELIVERY TICKET FOR GOVERNMENT BOND DIVISION Your □ competitive □ noncompetitive tender for— UNITED STATES OF AMERICA SPECIAL 365-D A Y TREASURY BILLS DATED APRIL 15, 1962, DUE APRIL 15, 1963 which has been accepted at the price of (per 100), in the amount of— $ PRINCIPAL MASTER MATURITY VALUE PRINCIPAL SPLIT DISPOSITION DISPOSITION □ Over the Counter □ Safekeeping □ □ METHOD OF PAYMENT □ Reserve Account □ Check or Cash Ship □ Delivery Teller Treasury Tax & Loan □ Foreign Oper. Div. □ Form 12 i lippMM'IW., Q Allotment Transfer • _ 4 ALLOTMENT NOTICE FOR SECURITIES DEPARTMENT □ com p etitive □ n on com petitive UNITED STATES OF AMERICA SPECIAL 365-D A Y TREASURY BILLS DATED APRIL 15, 1962, DUE APRIL 15, 1963 ALLOTMENT NOTICE FOR SECURITY FILES □ com p etitive □ n on co m p etitiv e UNITED STATES OF AMERICA SPECIAL 365-D A Y TREASURY BILLS DATED APRIL 15, 1962, DUE APRIL 15, 1963 $ 6
@FedFRASER