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FE D E R A L R E S E R V E BANK OF NEW YORK Fiscal Agent of the United States f Circular N o. 5 3 7 4 1 L A ugust 21, 1963 J TREASURY OFFERS $1 BILLION OF ONE-YEAR BILLS To All Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal Reserve D istrict: The following statement was made public today by the Treasury Department: The Treasury Department today announced the introduction of a new pattern of Treasury billissues. Its oneyear Treasury bills will henceforth be offered on a monthly basis,rather than quarterly. The firstofthe new series will be offered in the amount of $1 billion, to be auctioned on Tuesday, August 27, for payment on Tuesday, Sep tember 3. It will mature on August 31, 1964. The amounts of each subsequent issue are expected to be in the general magnitude of $1 billion, rather than the magnitudes of $2.0-$2.5 billion that have been used in the quarterly issues of similar bills. On July 15, 1963, the Treasury announced that it was giving consideration to the establishment of monthly auctions of one-year Treasury bills, in the interest of a more orderly scheduling of its short-term maturities, and requested comments on the proposal from members of the financial community and other interested parties. On the basis of the many responses received from the public and its own studies, the Treasury concluded that a program of monthly auctions of one-year bills was not only feasible but also likely to meet a market need which is not currently being adequately met by other short-term money market instruments. The Treasury does not undertake, by this action, necessarily to auction a one-year bill every month, nor is it committed to the $1 billion amount, but a pattern of this sort is likely to develop as opportunities continue to arise to replace the outstanding quarterly issues with those issued monthly. Following is the text of the public notice of the offering, also released for publication today: The Treasury Department, by this public notice, invites tenders for $1,000,000,000, or thereabouts, of 363-day Treasury bills, to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be dated September 3, 1963, and will mature August 31, 1964, when the face amount will be payable without interest. T h 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 aylight Saving time, Tuesday, August 27, 1963. 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 o f 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 363 days, the discount rate will be computed on a bank discount basis o f 360 days, as is currently the practice on all issues o f 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. 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 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 o f the face amount o f Treasury bills applied for, unless the tenders are accompanied by an express guaranty o f payment by an incorporated bank or trust company, ^.11 se" ’ °.v or s-^-e ?Pe“ ficc bidders are required to agree not to purchase or to to make any agreements with respect to the purchase 01, ot^cr disposition o f any bills of this issue, at a rate ° r Pnc£ ’ u" tl1 aftAer ^ East ern D a^ g Saving time, 1 uesday, August 27, 1J63. . Immediately after the closing hour, tenders will be opened at tlie Federal Reserve Banks and Branches, follow ing which public announcement will be made by the Treasury Department o f the amount and price range of accepted bids. Those sub nutting tenders will be advised of the acceptance or rejection thereof. The Secretary o f the Treasury expressly reserves the n Sht 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 $200,000 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. Payment o f accepted tenders at the prices offered must be made or com pleted at the Federal Reserve Bank in cash or other immediately available funds on September 3, 1963. ( over ) The incom e 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 o f 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 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 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 of 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 Daylight Saving time, Tuesday, August 27, 1963, at the Securities Department of its Head Office and at its Buffalo Branch. Please use the enclosed form to submit a tender, and return itin 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 telephone. Payment for the Treasury bills cannot be made by credit through the Treasury Tax and Loan Account. Settlement must be tnade in cash or other immediately available funds. A lfred H ayes, President. IMPORTANT— 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 363-DAY TREASURY BILLS Dated September 3, 1963 To Maturing August 31, 1964 of N ew Y o r k , Dated at ................... Fiscal Agent of the United States. 1963 Pursuant to the provisions of Treasury Department Circular No. 418 (current revision) and to the provisions of the public notice issued by the Treasury Department and printed in your Circular No. 5374, dated August 21, 1963, 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 September 3, 1963 at the price indicated below: F ed er al R eserve B a n k COMPETITIVE TENDER [ 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 with not more than three decimal places, for example, 99.925) NONCOMPETITIVE TENDER ] $.................... (maturity value). (N ot to exceed $200,000 for one bidder through all sources) 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 1,000 □ □ □ 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: Payment will be made as follows : □ By charge to our reserve account □ By cash or check in immediately available funds 100,000 500,000 1,000,000 (N o changes in delivery instructions •will be accepted) Total (Payment cannot be made through Treasury Tax and Loan Account) * Ifthisitem ischecked, the undersigned certifiesthatthe allotted bills will be owned solely by the undersigned. W e hereby agree not to buy or to sell, or to make any agreements with respect to the purchase or sale or other disposition of any bills of this issue at a specific rate or price, until after one-thirty o’clock p.m., Eastern Daylight Saving time, Tuesday, August 27, 1963. 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) (N am e of custom er) 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. If 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 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 “ .................................................................................................... . 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. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis Federal Reserve Bank of New York Securities Department (9th Floor) 33 Liberty Street t e n d e r FOR sp e c ia l t r e a s u r y bills (D O N O T U SE T H I S E N V E L O P E F O R O T H E R P U R P O S E S ) New York, N. Y ’ 10045 F ederal Reserve Bank of New Y ork 1 N OTICE OF A LL O TM E N T OF UNITED STATES OF AMERICA TREASURY BILLS August 28, 1963 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 3 -D A Y T R E A S U R Y D A T E D S E P T E M B E R 3, 1 9 6 3 , D U E A U G U S T 3 1 , 1 9 6 4 has been accepted at the price of BILLS (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 September 3, 1963. 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 September 3, 1963; otherwise itwill be necessary for the bidder to pay for the securities allotted at the accepted price plus interest to the date of collec tion 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 September 3, 1963 if you so indicated. If 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 e d e r a l R e se r v e B a n k of New Y ork Fiscal Agent of the United States Checked by (T his letter o f instructions, accompanied by attached duplicate copy, should be filled in and returned to Federal Reserve Bank o f New Y o rk ) 2 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 Agent of the United States, Federal Reserve P. 0. Station, New York, N. Y. 10045 Attention: Government Bond Division— 2nd Floor Dated at................... ............................. 1963 On our □ competitive □ noncompetitive tender for— 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 3 -D A Y T R E A S U R Y BILLS D A T E D S E P T E M B E R 3, 1 9 6 3 , D U E A U G U S T 3 1 , 1 9 6 4 (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 D o N ot U s e T h i s S p a ce 1,000 5,000 10,000 50,000 100,000 500,000 1,000,000 Total— □ 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 check in immediately available funds (Payment cannot be made through Treasury Tax and Loan Account) & I f this item is ch e c k e d , the u n d ersig n ed certifies that the a llo tte d b ills w ill b e o w n e d s o le ly b y th e u n d ersig n ed . This letter o f instructions must be signed Submitted by (Please print) officially in the space provided and re turned immediately to .................. Federal Reserve Bank of New Y ork, Title ..................... , B y ..................... (Authorized signature(s) required) ....................................................................... 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 e d e ra l R e se rv e Bank o f N ew Y o r k ) Safekeeping Division Government Bond Division 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. ........... Subscriber................................................................................. Date. By. (D UPLICATE FOR USE OF F E D E R A L RESERVE B A N K OF N E W YOR K) LE T TE R 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 Agent of the United States, Federal Reserve P. 0. Station, New York, N. Y. 10045 Attention: Government Bond Division— 2nd Floor Dated at................... ....... ......................1963 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 3 -D A Y T R E A S U R Y BILLS D A T E D S E P T E M B E R 3, 1 9 6 3 , D U E A U G U S T 3 1 , 1 9 6 4 (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 D o N U se T h is S pace $ □ 1. □ 2. □ 3. □ 4. □ 5. □ 1,000 5,000 10,000 50,000 100,000 500,000 1,000,000 Total— Deliver over the counter to the undersigned Ship to the undersigned Hold in safekeeping (for account of member only)* Allotment transfer (see list attached) Special instructions: ot (No changes in delivery instructions will be accepted) Payment will be made as follows: □ By charge to our reserve account 0 By cash or check in immediately available funds (Payment cannot be made through Treasury Tax and Loan Account) I f this item is c h e c k e d , th e u n d e r sig n e d certifies th at the a llo tte d b ills w ill b e 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 re turned immediately to Federal Reserve Bank of New York, Submitted by (Please print) ....................., B y ........... .. 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 f o r the u se o f the F ed era l R e se rv e Bank o f N ew Y o r k ) Safekeeping Division Government Bond Division 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. D ate................................. Subscriber................................................................................... B y .......................................................... PENDING DELIVERY TICKET FOR GOVERNMENT BOND DIVISION 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 3 -D A Y T R E A S U R Y BILLS D A T E D S E P T E M B E R 3, 1 9 6 3 , D U E A U G U S T 3 1 , 1 9 6 4 which has been accepted at the price of (per 100), in the amount of— P R IN C IP A L M A S T E R M A T U R IT Y V A L U E P R IN C IP A L DISPOSITION □ Over the Counter □ Safekeeping □ Ship □ □ S P L IT D IS P O S IT IO N M ETHOD OF PAYM ENT □ Reserve Account □ Check or Cash □ Delivery Teller Treasury T ax & Loan □ Foreign Oper. Div. Allotm ent Transfer □ Form 12 4 A L L O T M E N T N O T IC E FO R SECURITIES D E P A R T M E N T □ competitive □ noneompetitive 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 3 -D A Y T R E A S U R Y BILLS D A T E D S E P T E M B E R 3, 1 9 6 3 , D U E A U G U S T 3 1 , 1 9 6 4 $ ALLOTMENT NOTICE FOR SECURITY FILES □ 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 3 -D A Y T R E A S U R Y BILLS D A T E D S E P T E M B E R 3, 1 9 6 3 , D U E A U G U S T 3 1 , 1 9 6 4 $ 6
@FedFRASER