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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 r Circular N o. 5 3 8 7 ~ 1 U September 17, 1963 J Offering of $ 1 ,0 0 0 ,0 0 0 ,0 0 0 of Special 365-Day Treasury Bills Dated October 1, 1963 Maturing September 30, 1964 To All Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal Reserve D istrict: 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 $1,000,000,000, or thereabouts, of 365-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 O ctober 1, 1963, and will mature September 30, 1964, when the face amount will be payable with out 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 D ay light Saving time, W ednesday, September 25, 1963. 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 m ore 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 o f 360 days, as is currently the practice on all issues of 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. mitting tenders will be advised of the acceptance 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. 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 of accepted tenders at the prices offered must be made or completed at the Federal Reserve Bank in cash or other immediately available funds on O ctober 1, 1963. Banking institutions generally may submit tenders for account of 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 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 incorporated bank or trust company. 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 o f 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 imposed on the principal or interest thereof by any State, or any o f 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 o f 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. A ccordingly, the owner of Treasury bills (other than life insurance com panies) 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. Immediately after 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 pricc range of accepted bids. Those sub 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 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, Wednesday, September 25, 1963, 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 telephone. 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. A lfred Hayes, President. IM P O R T A N T — The discount rate on the bills o f this issue w ill be com puted on a bank discount basis of 360 days, as is currently the practice on all issues o f Treasury bills. No.................................. TENDER FOR SPECIAL 365-DAY TREASURY BILLS Dated October 1, 1963 To F e d e ra l R eserve B ank of N ew Maturing September 30, 1964 Dated at ........................................................ .............................................................. , 1963 Y ork , Fiscal Agent of the United States. 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 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 October 1, 1963 at the price indicated b elow : C O M PE TITIVE TEN DER [~ Do not fi11 j n both Competitive and “j [_ Noncompetitive tenders on one form $ ............................................................(maturity value), or any lesser amount that may be awarded. P rice: .................................... per 100. (Price must be expressed with not more than three decimal places, for example, 99.925) N O NCO M PETITIVE TEN DER J $ ............................................................(maturity value). (N ot to exceed $200,000 for 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 $ Maturity value 1,000 □ □ □ 5,000 ---- 10,000 n 50,000 □ i. 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 follow s: □ 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) If this item is checked, the undersigned certifies that the allotted bills will be owned solely by the undersigned. _ Insert this tender in yellow en velope m arked “ Tender for Special Treasury Bills’ Name of subscriber ............................ (Please print) B y ............................................................................ By ................ (Official signature(s) required) T i t l e ........................................................................ Title ............ Address (Banks submitting tenders for customer account must indicate name on line below, or attach a list) * (Name of customer) IN STR U C TIO N S: 1. No tender for less than $1,000 will be considered, and each tender must be for an even multiple of $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 non competitive tenders, provided a list is attached showing the name of each bidder, the amount bid for his account, and method o f 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 o f the corporation authorized to make the tender, and the signing of 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 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 of 2 percent o f the face amount o f 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 of 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) (DO N O T TSB5S USE T H IS E N V E L O P E F O R O T H E R PUR PO SE S) 33 Liberty Street YOTk«• N - Y ' Federal Reserve Bank of New Y ork 1 NOTICE OF A LLO TM E N T OF U N ITED STATES OF A M E R IC A T R E A SU R Y BILLS September 26, 1963 Y ou r □ competitive □ noncompetitive tender fo r — 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 O C T O B E R 1, 1 9 6 3 , D U E S E P T E M B E R 3 0 , 1 9 6 4 has been accepted at the price of BILLS (p er 100), in the amount o f— $ (m aturity value) Settlement therefor must be made in cash or other immediately available funds at the Federal Reserve Bank of New Y ork on or before October 1, 1963. I f settlement is to be made by check on a bank other than the Federal Reserve Bank o f New York, such check should be received by us in time fo r collection on October 1, 1963; otherwise it will 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. D elivery of the Treasury bills will be made in accordance with instructions submitted with your tender, and your reserve account will be charged on October 1, 1963 if you so indicated. I f you did not submit such instructions, a Letter of Instructions form is enclosed; please complete the letter in duplicate and return it prom ptly to this Bank. F e d e r a l R eserve B a n k o f N ew Y ork Fiscal A gent of the United States Cheeked by (This letter of instructions, accompanied by attached duplicated 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 Bank o f N ew Y ork , Fiscal A gent o f the United States, Federal Reserve P. 0 . Station, New York, N. Y . 10045 A tten tion : Government Bond Division— 2nd Floor Dated a t ......................................................... ............................. 1963 On our □ competitive □ noncompetitive tender fo r— 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 BILLS D A T E D O C T O B E R 1, 1 9 6 3 , D U E S E P T E M B E R 3 0 , 1 9 6 4 accepted at the price of (per 100), in the amount of( maturity value) Please issue and make delivery of the bills as instructed b elow : Pieces Denomination $ Maturity Value P lease D o N ot U se T h is Space 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. H old in safekeeping (fo r account o f member bank o n ly )* 4. Allotment transfer (see list attached) 5. Special instructions: (N o changes in delivery instructions will be accepted) Payment will be made as follow s: □ □ B y charge to onr reserve account B y cash or check in immediately available funds (P aym ent cannot be made through Treasury Tax and Loan A ccou n t) I f this item is ch e c k e d , the u n d e rsig n e d certifies that the a llo tte d b ills 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 re turned immediately to Federal Reserve Bank of New York, Submitted by (Please print) ................ ........................, B y ........................ (Authorized signature(s) required.) Title Title Fiscal Agent of the United States. Address ............................................................................................................... (S p a c e s b e lo w a re 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 ) Safekeeping Division Government Bond Division Payment received ..................... Checked Deliver against payment of J. Delivered . D E L I V E R Y R E C E IP T Received from Federal Reserve Bank of New York, Fiscal Agent of the United States, the above described securities allotted in the amount indicated above. Digitized Subscriber. Date. for FRASER By. (DUPLICATE FOR USE OF FEDERAL RESERVE BANK OF N E W YORK) LETTER OF INSTRUCTIONS To F e d e ra l R eserve B ank of N ew Y ork , Fiscal A gent o f the United States, Federal Reserve P. 0 . Station, New York, N. Y . 10045 A tten tion : Government Bond Division— 2nd Floor Dated a t ......................................................... ................................................................... 1963 On our □ competitive □ noncompetitive tender fo r— 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 BILLS D A T E D O C T O B E R 1, 1 9 6 3 , DU E S E P T E M B E R 3 0 , 196 4 accepted at the price of (per 100), in the amount o f— $ (maturity value) Please issue and make delivery of the bills as instructed b elow : Pieces Denomination $ P Maturity Value 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 Total— □ □ □ □ □ 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 on ly )* 4. Allotm ent transfer (see list attached) 5. Special instructions: (N o 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 check in immediately available funds (Paym ent cannot be made through Treasury Tax and Loan A ccou n t) I f this Item is ch e c k e d , the u n d e rsig n e d certifies that the a llo tte d b ills w ill b e o w n e d so le ly b y the u n dersig n ed . This letter of instructions must be signed Submitted by officially in the space provided and re turned 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 e lo w are f o r the use o f the F ed era l R e s e rv e Bank o f N ew Y o r k ) Safekeeping Division Government Bond Division D E L I V E R Y R E C E IP T Received from Federal Reserve Bank of New York, Fiscal A gent of 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 Y our □ competitive □ noncompetitive tender fo r— 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 BILLS D A T E D O C T O B E R 1, 1 9 6 3 , D U E S E P T E M B E R 3 0 , 1 9 6 4 which has been accepted at the price of (per 100), in the amount o f— PRINCIPAL MASTER MATURITY VALUE PRINCIPAL DISPOSITION □ Over the Counter □ Safekeeping □ Ship □ Treasury Tax & Loan □ Allotment Transfer SPLIT DISPOSITION • METHOD OF PAYMENT □ Reserve Account □ Check or Cash □ Delivery Teller □ Foreign Oper. Div. □ Form 12 ALLOTMENT NOTICE FOR SECURITIES DEPARTMENT □ com p etitive □ n on co m p etitiv e 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 O C T O B E R 1, 1 9 6 3 , D U E S E P T E M B E R 3 0 , 1 9 6 4 BILLS A LL O TM E N T N OTICE FO R SE C U R ITY FILES ■ ' ) □ co m p etitiv e □ n on co m p etitiv e 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 BILLS D A T E D O C T O B E R 1, 1 9 6 3 , D U E S E P T E M B E R 3 0 , 1 9 6 4
@FedFRASER