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FEDERAL RESERVE BANK OF NEW YORK Fiscal Agent of the United States r Circular No. 5 2 5 0 "1 L November 1, 1962 J OFFERING OF $1,000,000,000 STRIP OF W EEK LY TREASURY BILLS To All Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal Reserve D istrict: Following is the text of a public notice issued by the Treasury Department, released for publication today: The Treasury Department, by this public notice, invites tenders for additional amounts of ten series o f Treasury bills to an aggregate amount of $1,000,000,000, or thereabouts, for cash. The additional bills will be issued November 15, 1962, will be in the amounts, and will be in addition to the bills originally issued and maturing, as follows: Amount of additional issue $100,000,000 100,000,000 100,000,000 100,000,000 100,000,000 100,000,000 100,000,000 100,000,000 100,000,000 100,000,000 Original issue dates 1962 July 19 July 26 August 2 August 9 August 16 August 23 August 30 September 6 September 13 September 20 Maturity Dates 1963 Days from Nov. 15,1962 to maturity January 17 January 24 January 31 February 7 February 14 February 21 February 28 March 7 March 14 March 21 63 70 77 84 91 98 105 112 119 126 Amount currently outstanding ( in millions) $2,000 2,003 2,001 700 704 700 700 700 701 700 $1,000,000,000 The additional and original bills will be freely interchangeable. Each tender submitted must be in the amount of $10,000, or an even multiple thereof, and the amount tendered will be applied to each of the above series of bills on the basis of the ratio of each scries to the total of all series. (F or example, an accepted tender for $50,000 will be applied $5,000 to the issue with original date of July 19, 1962, and $5,000 to each of the additional weekly issues through the issue with original date of September 20, 1962.) The bills offered hereunder will be issued on a discount basis under competitive and noncompeti tive bidding as hereinafter provided, and at maturity their face amount will be payable without inter est. 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, onethirty p.m., Eastern Standard time, Wednesday, November 7, 1962. Tenders will not be received at the Treasury Department, Washington. In the case of competitive tenders the price offered must be expressed on the basis o f 100, with not more than three decimals, e.g., 99.925. Fractions may not be used. A single price must be submitted for each unit of $10,000, or even multiple thereof. A unit represents $1,000 face amount of each issue of bills offered hereunder, as previously described. 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 and Branches on application therefor. ( over) Banking institutions generally may submit tenders for account of customers provided the names of 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 incorpo rated 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. 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 submitting tenders will be advised of the accept ance 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. Noncompetitive tenders for $100,000 or less (in even multiples of $10,000) without stated price from any one bidder will be accepted in full at the average price (in three decimals) of accepted competitive bids, provided, however, that if the total of noncompetitive tenders exceeds $200,000,000, the Secre tary of the Treasury reserves the right to allot less than the amount applied for on a straight per centage basis with adjustments where necessary to the next higher multiple of $10,000. Settlement for accepted tenders in accordance with the bids must be made or completed at the Federal Reserve Bank or Branch in cash or other immediately available funds on November 15, 1962. The income derived from Treasury bills, whether interest or gain from the sale or other disposi tion 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 treatment, 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 taxation 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 o f 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. Accord ingly, the owner of Treasury bills (other than life insurance companies) 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. Purchasers of a strip of the bills offered hereunder should, for tax purposes, take such bills on to their books on the basis of their purchase price prorated to each of the ten outstanding issues, using as a basis for proration the closing market prices for each of the issues on November 15, 1962. (Federal Reserve Banks will have available a list of these market prices, based on the mean between the bid and asked quotations furnished by the Federal Reserve Bank of New York.) 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, Novem ber 7, 1962, at the Securities Department of its Head Office and at its Buffalo Branch. Please use the enclosed tender form to submit a tender, and return it in the enclosed pink envelope marked “ Tender for Strip of Weekly Treasury Bills.’ ’ Tenders may be submitted by tele graph, subject to written confirmation; they may not be submitted by telephone. Payment for accepted tenders must be made in cash or other immediately available funds; payment cannot be made by credit through Treasury Tax and Loan Account. A l f iie d I I ayes, President. No. TENDER FOR STRIP OF 10 SERIES OF TREASURY BILLS TO BE ISSUED NOVEMBER 15, 1962 MATURING W EEKLY FROM JANUARY 17, 1963 TO MARCH 21, 1963 A dditional Amounts of Outstanding Series Dated W eekly From ju ly 19, 1962 to September 20, 1962) To F ed era l R eserve B an k o f N ew Dated at Y ork , Fiscal Agent of the United States. 1962 Pursuant to the provisions of Treasury Department Circular No. 418, Revised, and to the provisions of the public notice issued by the Treasury Department and printed in your Circular No. 5250, dated Novem ber 1, 1962, the undersigned hereby offers to purchase the Treasury bills described in said public notice in the aggregate amount indicated below, and agrees to make payment therefor at your Bank on or before the issue date at the price indicated below: COMPETITIVE TENDER (In multiples of $10,000) t Do not fill in both Competitive and Noncompetitive tenders on one form $ ........................................................ (maturity value), or any lesser amount that may be awarded. Price: .................................. per 100. (Price must be expressed zvith not more than three decimal places, for example, 99.925) j I NONCOMPETITIVE TENDER (In multiples of $10,000) $ .................................................... (maturity value). (N ot to exceed $100,000 for one bidder through all sources) at the average price of accepted competitive bids. Please issue and make delivery of the bills as instructed below: (If the same denominations are desired for all series, indicate here only the denominations for a single series. Otherwise, use reverse side.) $1,000 $5,000 $10,000 $50,000 $100,000 $500,000 $ 1, 000,000 Pieces □ 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: (N o changes in delivery instructions will be accepted) Payment will be made as follows: □ □ By charge to our reserve account By cash or other immediately available funds (Payment cannot be made through Treasury Tax and Loan Account) ♦If this item is checked, the undersigned certifies that the allotted bills will be owned solely by the undersigned. Tender submitted by . . . In s e rt this te n de r in p in k en velop e m a rk e d “ T e n d e r fo r S t r ip o f W e e k ly T re a s u ry B ills ” By .................................. (Please print) By (Official signature(s) required) Title ...................................................................... T itle ............... Address (Banks submitting tenders for customer account must indicate name on line below, or attach a list) (Name of Customer) (Name of Customer) IN S T R U C T IO N S : 1. Tenders must be submitted in units o f $10,000 or multiples thereof. A unit represents $1,000 face amount of each series of bills offered hereunder. A single price must be submitted for each unit of $10,000 or multiple thereof. Amounts issued on accepted tenders will be applied equally to each of the 10 separate series included in the offering. 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. 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 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, who should sign in the form “ ............................................................................................ a copartnership, by ........................................................................................................... . a member o f the firm.” 4. Tenders will be received without deposit from 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 of Treasury bills applied for, unless the tenders are accompanied by an express guaranty of payment by an incorporated 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 STRIP OF WEEKLY TREASURY BILLS (DO NOT USB THIS ENVELOPE FOR OTHER PURPOSES) New York 45, N . Y F eder al . R e s e r v e B a n k of New Y ork NOTICE OF ALLOTMENT OF UNITED STATES OF AMERICA TREASURY BILLS November 8, 1962. Your □ competitive □ noncompetitive tender for— A STRIP OF UNITED STATES OF AMERICA TREASURY BILLS TO BE ISSUED NOVEMBER 15, 1962, MATURING WEEKLY FROM JANUARY 17, 1963 THROUGH MARCH 21, 1963 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 at the Federal Reserve Bank of New York on or before November 15, 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 November 15, 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 November 15, 1962 if you so indicated. If you did not submit such instructions, a Letter of Instructions form is enclosed; please complete the letter in triplicate and return it promptly to this Bank. F ederal R eserve B a n k of N ew ' Y ork Fiscal Agent of the United States Checked by (This letter of instructions, accompanied by attached duplicate and triplicate copies, should be filled in and returned to Federal Reserve Bank of New York) LETTER OF INSTRUCTIONS To F ederal R eserve B an k of N ew Y 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— A STRIP OF UNITED STATES OF AMERICA TREASURY BILLS TO BE ISSUED NOVEMBER 15, 1962, MATURING WEEKLY FROM JANUARY 17, 1963 THROUGH MARCH 21, 1963 (per 100), in the amount of— which has been accepted at the price of I i .d9ri - 0 I (maturity value) Please issue and make delivery of the bills as instructed below: (If the same denominations are desired for ail series, indicate here only the denominations for a single series. Otherwise, use reverse side.) $1,000 $5,000 $10,000 $50,000 $100,000 $500,000 $1,000,000 Pieces □ 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 follows: IB <' □ By charge to our reserve account □ By cash or other immediately available funds ( Payment cannot be made through Treasury Tax and Loan Account) * If this item is checked, the undersigned certifies that the allotted bills will be owned solely by the undersigned. This letter of instructions must be signed Submitted by officially in the space provided and returned immediately to By Federal Reserve Bank of New York, Title (riease print) ............By .............. (Authorized signature(s) required) ...................................................................... Title ............... Fiscal Agent o f the United States. Address ................................................................................................. (Spaces below are for the use of the Federal Reserve Bank of New York) Government Bond Safekeeping Division Division DELIVERY 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. Pntr f3iih<3''HVir>r Rv. Issue $ 1 ,0 0 0 $ 5 ,0 0 0 $ 1 0 ,0 0 0 $50,000 $100,000 $500,000 $ 1 ,ooo.ooc July 19-Jan. 17 July 26-Jan. 24 Aug. 2-Jan. 31 ■j Aug. 9-Feb. 7 Aug. 16-Feb. 14 $ Aug. 23-Feb. 21 Aug. 30-Feb. 28 Sept. 6-Mar. 7 Sept. 13-Mar. 14 Sept. 20-Mar. 21 ■ ___________ v o 9<f i i i w a lltd b a J i o I f a ( jI-i o Y to J c a fl i s i 9 b ? 'i tdi Ifdi i s B i h ; I 'iiy. ' ’■ , (D U PLICATE FOR USE OF FE D E R A L RESERVE BANK OF NEW YORK) LETTER OF INSTRUCTIONS To F ederal R eserve B ank of N ew Y ork, Fiscal Agent of the United States, Federal Reserve P. O. Station, New York 45, N. Y. Attention: Government Bond Division— 2nd Floor Dated a t ............ .1962 On our □ competitive □ noncompetitive tender for— A S T R IP O F U N IT E D S T A T E S O F A M E R IC A T R E A S U R Y BILLS T O BE ISSU E D N O V E M B E R M A T U R IN G W E E K L Y F R O M J A N U A R Y 17, 1 9 6 3 T H R O U G H M A R C H 2 1 , 19 6 3 which has been accepted at the price of 15, 1 9 6 2 , (per 100), in the amount of— (maturity value) Please issue and make delivery of the bills as instructed below : ( I f the sam e d e n om in a tion s are d es ire d f o r all series, in d ica te h ere on ly the d en om in a tion s fo r a sin gle series. rev e rse s id e .) $ 5 ,0 0 0 $ 1 ,0 0 0 $ 1 0 ,0 0 0 $ 5 0 ,0 0 0 $ 1 0 0 ,0 0 0 $ 5 0 0 ,0 0 0 O th e rw ise , use $ 1 ,0 0 0 ,0 0 0 Pieces □ 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 follows: □ □ By charge to our reserve account By cash or other immediately available funds (Payment cannot be made through Treasury Tax and Loan Account) * I f this item is c h e ck e d , the u n d ersig n ed certifies that the a llo tte d bills w ill b e o w n e d s o le ly b y the 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) ............, By ........... (Authorized signature(s) required) Title Title . . Fiscal Agent o f the United States. Address (S p a c e s b e lo w are fo r the use o f the F ed era l R eserv e Bank o f N ew Y o r k ) Safekeeping Division Government Bond Division Payment received ..................... Checked . Deliver against payment of $ Delivered D ELIVERY 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. D lto Rnb«!''ri>ier. Bv. ! Issue $ 1 ,0 0 0 July 19-Jan. 17 July 26-Jan. 24 Aug. 2-Jan. 31 Aug. 9-Feb. 7 Aug. 16-Feb. 14 Aug. 23-Feb. 21 Aug. 30-Feb. 28 Sept. 6-Mar. 7 Sept. 13-Mar. 14 Sept. 20-Mar. 21 $ 5 ,0 0 0 $ 1 0 ,0 0 0 $ 5 0 ,0 0 0 $ 1 0 0 ,0 0 0 $ 5 0 0 ,0 0 0 $ 1 ,0 0 0 ,0 0 0 (TR IPLIC A TE FOR USE OF FED ER AL RESERVE BANK OF NEW YO RK ) LETTER OF INSTRUCTIONS T o F' e d e r a l R e s e r v e B ank of N ew Y ork, Fiscal Agent of the United States, Federal Reserve P. O. Station, New York 45, N. Y. Attention: Government Bond Division— 2nd Floor Dated a t ............ .1962 On our □ competitive □ noncompetitive tender for— A S T R IP O F U N IT E D S T A T E S O F A M E R IC A T R E A S U R Y BILLS T O BE ISSU E D N O V E M B E R M A T U R IN G W E E K L Y F R O M J A N U A R Y 17, 1 9 6 3 T H R O U G H M A R C H 2 1 , 1 9 6 3 which has been accepted at the price of 15, 1 9 6 2 , (per 100), in the amount of(maturity value) Please issue and make delivery of the bills as instructed below ( I f the sam e d en o m in a tion s a re d e s ire d fo r all series, in d ica te h ere on ly the d en om in a tion s fo r a sin g le series. re v e rs e s id e .) $ 5 ,0 0 0 $ 1 ,0 0 0 $ 1 0 ,0 0 0 $ 5 0 ,0 0 0 $ 1 0 0 ,0 0 0 $ 5 0 0 ,0 0 0 O th e rw ise , use $ 1 ,0 0 0 ,0 0 0 Pieces □ 1. Deliver over the counter to the undersigned □ 2. Ship to the undersigned O 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 follows: □ By charge to our reserve account □ By cash or other immediately available funds (Payment cannot be made through Treasury Tax and Loan Account) * I f this item is ch e ck e d , the u n d ersig n ed certifies that the a llo tte d bills w ill be ow n ed so le ly b y the u n d ersig n ed . This letter of instructions must be signed Submitted by officially in the space provided and returned immediately to ................ Federal Reserve Bank of New York, Title (Please print) ......By .................... (Authorized signature(s) required) ...................................................................... Title ............... Fiscal Agent of the United States. Address ................................................................................................. (S p a c e s b elow are fo r the use o f the F ederal R e serv e Bank o f New Y o r k ) Government Bond Division Safekeeping Division Payment received ..................... Cheeked . Deliver against payment of $ Delivered DELIVERY 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. Dnto . SnhQ'Tiher Bv. PENDING DELIVERY TICKET FOR GOVERNMENT BOND DIVISION Your □ competitive □ 5 noncompetitive tender for— A S T R IP O F U N IT E D S T A T E S O F A M E R IC A T R E A S U R Y BILLS T O BE ISSU E D N O V E M B E R 15, 1 9 6 2 , M A T U R IN G W E E K L Y F R O M J A N U A R Y 17, 1 9 6 3 T H R O U G H M A R C H 2 1 , 1 9 6 3 price of $ Issue 7 / 1 9 — 1 /1 7 A m ou n t $ M ETHOD OF PAYM ENT P U R C H A S E P R IC E C h e ck o r C ash 7 / 2 6 — 1 /2 4 R e s e rv e A c c o u n t 8 / 2 — 1 /3 1 8 / 9 — 2 /7 8 / 1 6 — 2 /1 4 8 / 2 3 — 2 /2 1 MASTER M A T U R IT Y V A L U E D e liv e ry T e lle r F o re ig n O p er. D iv. 8 / 3 0 — 2 /2 8 9 /6 — 3 /7 F orm 12 P U R C H A S E P R IC E 9 / 1 3 — 3 /1 4 9 / 2 0 — 3 /2 1 TOTAL DISPOSITION Over the Counter Safekeeping Treasury Tax & Loan Ship Allotment Transfer • AMOUNT ALLOTMENT NOTICE FOR SECURITIES DEPARTMENT □ competitive □ noncompetitive A S T R IP O F U N IT E D S T A T E S O F A M E R IC A T R E A S U R Y BILLS T O BE ISSU E D N O V E M B E R M A T U R IN G W E E K L Y F R O M J A N U A R Y 17, 1 9 6 3 T H R O U G H M A R C H 2 1 , 19 6 3 6 price of $ 15, 1 9 6 2, ALLOTMENT NOTICE FOR SECURITY FILES □ 7 competitive □ noncompetitive A S T R IP O F U N IT E D S T A T E S O F A M E R IC A T R E A S U R Y BILLS T O BE ISSU E D N O V E M B E R M A T U R IN G W E E K L Y F R O M J A N U A R Y 17, 1 9 6 3 T H R O U G H M A R C H 2 1 , 19 6 3 price of $ 15, 1 9 6 2 ,
@FedFRASER