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F E D E R A L R E S E R V E BANK OF NEW YORK Fiscal Agent of the United States r Circular No. 5 4 0 2 1 L October 16, 1963 J OFFERING OF $1,000,000,000 STRIP OF W EEKLY 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 Dejjartment, released for publication today: The Treasury Department, by this public notice, invites tenders for additional amounts of ten series of Treasury bills to an aggregate amount of $1,000,000,000, or thereabouts, for cash. The additional bills will be issued October 28, 1963, will be in the amounts, and will be in addition to the bills originally issued and maturing, as follows: Amount of additional issue Original issue dates 1963 Maturity Dates 1964 $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 August 8 August 15 August 22 August 29 September 5 September 12 September 19 September 26 October 3 October 10 February 6 February 13 February 20 February 27 March 5 March 12 March 19 March 26 April 2 April 9 Days from Oct. 28,1963 to maturity 101 108 115 122 129 136 143 150 157 164 Amount currently outstanding (in millions) $801 800 801 800 802 800 801 800 798 800 $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. (For example, an accepted tender for $50,000 will be applied $5,000 to the issue with original date of August 8, 1963, and $5,000 to each of the additional weekly issues through the issue with original date of October 10, 1963.) 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 Daylight Saving time, Tuesday, October 22, 1963. 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 of 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 October 28, 1963. 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 of discount at which Treasury bills are originally sold by the United States isconsidered 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 October 28, 1963. (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 Daylight Saving time, Tuesday, October 22, 1963, 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 telegraph, subject to written confirmation; they may not be submitted by telephone. P aym en t fo r accepted tenders m ust be made in cash or other im m ediately available fu n d s; paym ent cannot be made b y credit through T rea su ry T a x and Loan Account. A lfred H ayes, President. 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 POE OTHEB PURPOSES) New York 45, N. Y. No. TENDER FOR STRIP OF 10 SERIES OF TREASURY BILLS TO BE ISSUED OCTOBER 28, 1963 MATURING W EEK LY FROM FEBRUARY 6, 1964 TO APRIL 9, 1964 (Additional Amounts of Outstanding Series Dated W e e k ly From August 8, 1963 to October 10, 1963) To F ederal R F is ca l e se r v e Bank of N ew Y Dated at ork, Agent of the United States. 1963 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. 5402, dated October 16, 1963, 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) D o 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 1 (In multiples of $10,000) $................... (maturity value). (N ot to exceed $100,000 fo r one bidder through all sources) at the average price of accepted competitive bids. Please issue and make delivery of the billsas instructed below: ( I f th e sam e d e n o m in a tio n s are d e sire d f o r all series, in d ica te h ere o n ly the d en om in a tion s fo r a sing le series. O th e rw ise , use r e v e rs e s id e .) $ 1 ,0 0 0 $ 5 ,0 0 0 $ 1 0 ,0 0 0 $ 1 0 0 ,0 0 0 $ 5 0 0 ,0 0 0 $ 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 listattached) □ 5 . S p e c i a l i n s tructions: □ (No changes in delivery instructions will be accepted) * $ 5 0 ,0 0 0 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 theallottedbillswillbe owned solelyby theundersigned. Tender submitted by . . . In sert in p in k m a rk ed S tr ip (Please print) th is te n d e r e n v e lo p e By ............ “ T e n d e r fo r o f W e e k ly T r e a su r y B ills ...................... 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 o f 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 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 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 o f 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. 5. If the language o f this tender is changed in any respect, which, in the opinion o f the Secretary of the Treasury, is material, the tender may be disregarded. Federal R eserve Bank of New Y ork 1 NOTICE OF ALLOTMENT OF UNITED STATES OF AMERICA TREASURY BILLS October 23, 1963. Your 0 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 O C T O B E R 2 8 , 1 9 6 3, M A T U R IN G W E E K L Y F R O M F E B R U A R Y 6, 1 9 6 4 T H R O U G H A P R IL 9, 1 9 6 4 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 October 28, 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 October 28, 1963; otherwise itwill 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 October 28, 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 ederal R e se r v e B a n k of N e w Y ork Fiscal Agent of the United States Checked by (This letter o f instructions, accompanied by attached duplicate copy, should be filled in and returned to Federal Reserve Bank of New Y o rk ) LETTER OF INSTRUCTIONS To F e d e r a l R e se r v e B a n k of 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 ft 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 O C T O B E R 2 8 , 1 9 6 3 , M A T U R IN G W E E K L Y F R O M F E B R U A R Y 6, 1 9 6 4 T H R O U G H A P R IL 9, 1 9 6 4 (per 100), in the amount of- which has been accepted at the price of (maturity value) Please issue and make delivery of the bills as instructed below: ( I f the sam e d e n o m 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 f o r a sin g le series. O th e rw is e , use re v e rs e s id e .) $ 1 ,0 0 0 $ 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 Pieces □ 1. Deliver over the counter to the undersigned □ 2. Ship to the undersigned n 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 carmot 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 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) .................. .............> 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 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 Payment received ..................... Checked . Deliver against payment of $. Delivered D ELIVE RY RECEIPT Received from Federal Reserve Eank of New York, Fiscal Agent o f the United States, the above described securities allotted in the amount indicated above. Date. Subscriber. By. Issue $ 1 ,0 0 0 Aug. 8-Feb. 6 Aug. 15-Feb. 13 OCi........ . Aug. 22-Feb. 20 Aug. 29-Feb. 27 Sept. 5-Mar. 5 Sept. 12-Mar. 12 Sept. 19-Mar. 19 Sept. 26-Mar. 26 Oct. 3-Apr. 2 Oct. 10-Apr. 9 $ 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 $i,ooo,ooc (D U PLICATE FOR USE OF FE D E R A L RESERVE BANK OF N EW Y O RK ) LETTER OF INSTRUCTIONS To F e d e r a l R e s e r v e B a n k o p 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 ft 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 O C T O B E R 2 8 , 1 9 6 3 , M A T U R IN G W E E K L Y F R O M F E B R U A R Y 6, 1 9 6 4 T H R O U G H A P R IL 9, 1 9 6 4 (per 100), in the amount of- which has been accepted at the price of (maturity value) Please issue and make delivery of the bills as instructed below: ( I f the sam e d e n o m in a tion s are d e s ire d f o r all series, in d ica te re v e rs e s id e .) $ 1 ,0 0 0 $ 5 ,0 0 0 $ 1 0 ,0 0 0 h ere on ly the d en om in a tion s f o r a sin gle series. $ 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 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 Submitted by (Please print) officially in the space provided and re turned immediately to .................. Federal Reserve Bank of New York, ............By .............. (Authorized signature(s) required) Title .. Title Fiscal Ageut o f 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 B ank o f N ew Y o r k ) Government Bond Division Safekeeping Division Payment received ..................... Checked . Deliver against payment of $. Delivered DELIVE 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. Date................................. Subscriber................................................................................... B y .......................................................................................... Issue $ 1 ,0 0 0 $ 5 ,0 0 0 $ 1 0 ,0 0 0 Aug. 8-Feb. 6 Aug. 15-Feb. 13 Aug. 22-Feb. 20 Aug. 29-Feb. 27 Sept. 5-Mar. 5 Sept. 12-Mar. 12 Sept. 19-Mar. 19 Sept. 26-Mar. 26 Oct. 3-Apr. 2 Oct. 10-Apr. 9 • $ 5 0 ,0 0 0 $ 1 0 0 ,0 0 0 $ 5 0 0 ,0 0 0 $ 1 ,0 0 0 ,0 0 < PENDING DELIVERY TICKET FOR GOVERNMENT BOND DIVISION 4 Your B 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 O C T O B E R 2 8 , 1 9 6 3 , M A T U R IN G W E E K L Y F R O M F E B R U A R Y 6, 1 9 6 4 T H R O U G H A P R IL 9, 1 9 6 4 price of $ Issue 8 / 8 — 2/6 A m ount $ M ETH O D OF P A Y M E N T P U R C H A S E P R IC E C h eck or Cash 8 / 1 5 — 2 /1 3 R e s e rv e A c c o u n t 8 / 22 — 2/20 8 / 2 9 — 2 /2 7 9 / 5 _ 3 /5 9 / 1 2 — 3 /1 2 MASTER M A T U R IT Y V A L U E D e liv e ry T e lle r F oreig n O p e r. D iv. 9 / 1 9 — 3 /1 9 9 / 2 6 — 3 /2 6 F orm 12 P U R C H A S E P R IC E 1 0 /3 — 4 / 2 1 0 /1 0 — 4 / 9 TOTAL DISPOSITION Over the Counter Safekeeping Treasury T ax & Loan Ship Allotm ent Transfer AM OUNT ALLOTMENT NOTICE FOR SECURITIES DEPARTMENT tl 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 O C T O B E R 2 8 , 1 9 6 3 , M A T U R IN G W E E K L Y F R O M F E B R U A R Y 6, 1 9 6 4 T H R O U G H A P R IL 9, 1 9 6 4 $ 5 ALLOTMENT NOTICE FOR SECURITY FILES £5 competitive □ noncompetitive A STRIP OF UNITED S T A T E S OF A M E R IC A T R E A S U R Y BILLS T O BE ISSUED O C T O B E R 28, 1963, M ATU R IN G W EE K LY FROM FE B RU A RY 6, 1964 TH R O U G H A PR IL 9, 1964 $ 6
@FedFRASER