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F E D E R A L R E S E R V E BAN K
O F N EW Y O R K
Fiscal Agent of the United States
r Circular No. 519 9
L
July 2, 1962
Offering of $2,000,000,000 of Special 365-Day Treasury Bills
Dated July 15, 1962
Maturing July 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
July 15, 1962, in the amount o f $2,003,516,000, 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, 1962, and will mature July 15, 1963, when
the face amount will be payable without interest. Th ey 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 D ay
light Saving time, Tuesday, July 10, 1962. Tenders will not be
received at the Treasury Department, W ashington. 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. (N otwithstanding the fact
that these bills will run for 365 days, the discount rate will be
computed on a bank discount basis o f 360 days, as is currently
the practice on all issues of Treasurj' 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 of customers provided the names of 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 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, follow ing which
public announcement will be made by the Treasury Department
o f 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 of the Treasury expressly reserves the
right to accept or reject any or all tenders, in w hole 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 com pleted at the Federal
Reserve Bank on July 16, 1962, in cash or other immediately
available funds or in a like face amount of Treasury bills
maturing July 15, 1962. 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 o f 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 o f 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 o f 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 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 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 a y e s ,
President.
( over)
IM PORTANT— 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.
No..............................
TENDER FOR SPECIAL 365-DAY TREASURY RILLS
Dated July 15, 1962
To
F ed era l R eserve B a n k o f N ew
Maturing July 15, 1963
Y ork ,
Fiscal Agent of the United States.
Dated at
...............................................
2962
Pursuant to the provisions ^oi Treasury Department Circular No. 418 (current revision) and to the
provisions of the public notice issued by the Treasury Department and printed on the reverse side of this
tender, the undersigned 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 16, 1962 at the price indicated
below:
^
COMPETITIVE TENDER
[
D o not fill in both Competitive and |
Noncobtpetitive tenders on one form J
$ .........................................................(maturity value),
or any lesser amount that may be awarded.
NONCOMPETITIVE TENDER
$ ........................................................ (maturity value).
(N ot to exceed $400,000 for one bidder through all sources)
P rice: ...................................per 100.
(Price must be expressed with not more than three
decimal places, fo r example, 99.925)
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
1,0(X)
□
5,000
□
□
10,000
□
50,000
□
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:
100,000
500,000
1.000,000
(N o changes in delivery instructions
ztrill be accepted)
Total
Payment will be made as follows:
□
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 adjust
ment, 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 3 above are owned solely by the undersigned.
Name of subscriber
( Please print)
Insert
this
tender
in yellow envelope
marked “ Tender for
By ............................
Title ........................
By
(Official signature(s) required)
................... . Title ............
Special Treasury Bills ”
Address
(Banks submitting tenders for customer account must indicate name on line below, or attach a list)
(Name of customer)
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 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 -ender should be signed by an officer of the corporation
authorized to make the tender, and the signing of the tender by an officer o f 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 “ ........................................................... -t.......................................* 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 o f 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 o f this tender is changed in any respect, which, in the opinion of the Secretary of the Treasury, is
material, the tender may be disregarded.
Federal Reserve Bank of New York
Securities Department (9th Floor)
33 Liberty Street
TENDER FOR SPECIAL
TREASURY BILLS
(D O NOT 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 ederal R eserve B a n k
op
New Y
ork
1
NOTICE OF ALLOTMENT
OF UNITED STATES OF AMERICA SPECIAL TREASURY BILLS
July 11, 1962.
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 5 -D A Y T R E A S U R Y
D A T E D JULY 15, 1 9 6 2 , D U E JU LY 15, 1 9 6 3
has been accepted at the price of
BILLS
(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 July 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 July 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 July 16, 1962 if you so indicated.
I f 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 ra l R eserve B a n k o f N ew
Y ork
Fiscal Agent of the United States
Checked by
I
(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 op 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—
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
D A T E D JU LY 15, 1 9 6 2 , D U E JU LY 15, 1 9 6 3
accepted at the price o f
BILLS
(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 se T h i s S p a ce
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 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 sig n e d ( i f a b a n k or trust c o m p a n y ) h e re b y ce rtifie s th at 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 se o f in the 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 .
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)
B? .........................................................., By ..........
(Authorized siguature(s) required)
Title .........................................................................
Title .................
Fiscal Agent o f the United States.
A d d re s s.....................................................................................................
(S p a c e s b e lo w are f o r the use o f the F ed era l R e s e rv e B ank o f N ew Y o r k )
Government Bond Division
Safekeeping Division
Checked...........
Deliver against payment of $............................................... .......................................................
“ T iT l above.
indicated
BeSe" e Blmk
Subscriber
» Date
Delivered.............
NeW T°rk’ FiSCaI Agent ° f ‘ he United States’ tl,e ab0,e des' ril>ea securities allotted in
i the amount
(DUPLICATE FOR USE OF FEDERAL RESERVE BANK OF NEW YORK)
LETTER OF INSTRUCTIONS
To F ederal R eserve B a n k
of
N ew Y
3
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 ...............................................
1962
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 5 -D A Y T R E A S U R Y
D A T E D JU LY 15, 1 9 6 2 , D U E JU LY 15, 1 9 6 3
accepted at the price o f
BILLS
(per 100), in the amount of—
$
(maturity value)
Please issue and make delivery o f the bills as instructed below:
Pieces
Denomination
$
Maturity Value
P lease
Do
N
ot
U se T h is 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 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 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 or trust c o m p a n y ) h e re b y ce rtifie s th at th e T r e a s u ry b ills w h ich y o u a re h e r e b y in stru cte d to
d is p o se o f in the m a n n er in d ica te d in item n u m b ered 3 a b o v e a re o w n e d s o le ly b y the u n d e rsig n e d .
This letter of instructions must be signed
officially in the space provided and
Submitted by
returned immediately to
By ..............
Federal Reserve Bank of New York,
(Please print)
By
(Authorized signatured) required)
Title .........................................................................
Title .................
Fiscal Agent o f the United States.
A d d re s s...................................................................................................
(S p a c e s b e lo w are f o r the use o f the F ed era l R e s e rv e B ank o f N ew Y o r k )
Government Bond Division
Safekeeping Division
Delivered.............
Received from Federal Reserve Bank of New York, Fiscal Agent o f the United States,
nV»mro
allotted
indicated above.
Digitized
Date for FRASER
Subscriber,
the above described securities all
hi the amount
PENDING DELIVERY TICKET FOR GOVERNMENT BOND DIVISION
Your □
competitive □
noncompetitive tender for—
UNITED S T A T E S OF A M ER ICA SPECIAL 36 5 -D A Y T R E A S U R Y BILLS
D A T E D JULY 15, 1962, DUE JULY 15, 1963
which has been accepted at the price of
(per 300), in the amount of
$
PRIN CIPAL
MASTER
MATURITY VALUE
PRIN CIPAL
SPLIT D ISPO SITIO N
DISPOSITION
Q
Over the Counter
- .... .
□
M ETH O D OF PAY M E N T
.
....
____
Safekeeping
□
Reserve Account
□
Check or Cash
□
Ship
□
Delivery Teller
Q
Treasury Tax & Loan
□
Foreign Gper. Div.
□
F orm 12
Q
Allotment Transfer
*
4
ALLOTMENT NOTICE FOR SECURITIES DEPARTMENT
□
competitive Q
noncompetitive
UNITED STATES OF AMERICA SPECIAL 365-DAY TREASURY BILLS
DATED JULY 15, 1962, DUE JULY 15, 1963
$
5
ALLOTMENT NOTICE FOR SECURITY FILES
□
competitive □
noncompetitive
UNITED STATES OF AMERICA SPECIAL 365-DAY TREASURY BILLS
DATED JULY 15, 1962, DUE JULY 15, 1963
$
6