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FEDERAL RESERVE BANK O F N EW YORK
Fiscal Agent o f the United States

[

17 ]

Offering o f $1,600,000,000 o f 91-Day Treasury Bills
D ated M arch 1 5 ,1 9 5 6

Maturing June 14, 1956

T o all Incorporated Banks and Trust Companies, and O thers
Concerned, in the Second Federal R eserv e D istrict:

Following is the text o f a notice published today:
F O R R E L E A S E , M O R N IN G N E W S P A P E R S ,
T h u rsd a y, M a rch 8, 1956.

,

TREASU RY DEPARTM EN T
W a sh in g ton

T h e T re a su ry D epa rtm en t, b y this p u b lic n otice, invites ten ders fo r $1,600,000,000, or thereabouts, o f 91-day T rea su ry
bills, fo r cash and in excn a n ge tor T reasu ry bills m aturing M a rch 15, 1956, in the a m ou n t o f $1,601,061,000, to be issued on
a d iscou n t basis under com p etitive and n on com p etitive b id d in g as h ereinafter provid ed . T h e bills o f this series w ill be dated
M a rch 15, 1956, and w ill m ature June 14, 1956, w hen the fa c e a m ou n t w ill be payable w ith ou t interest. T h e y w ill be
issued in bearer fo rm on ly , and in den om in a tion s o f $1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,000 (m a tu rity v a lu e ).
T e n d e rs w ill be receiv ed at F ed eral R e serv e B anks and B ra n ch es up to the clo s in g h our, on e-th irty o ’c lo ck p.m ., E astern
Standard tim e, M on d a y, M arch 12, 1956. T e n d e rs w ill n ot be receiv ed at the T rea su ry D epa rtm en t, W a sh in g ton . E ach
tender m u st be fo r an even m ultiple o f $1,000, and in the case o f com p etitive tenders the price offered m u st be exp ressed o n
the basis o f 100, w ith n ot m o re tnan th ree decim a ls, e. g ., 99.925. F ra ction s m ay n ot be used. It is u rged that tenders be
m a d e on the p rin ted fo rm s and forw a rd ed in the special en v elop es w h ich w ill be supplied b y F ed eral R eserve B anks o r
B ran ch es o n a pp lication th erefor.
O th ers than b ank in g institutions w ill n ot be perm itted t o subm it tenders excep t fo r their ow n a ccou n t. T en d ers w ill be
re ce iv e d w ith ou t d ep o sit fr o m in corpora ted banks a n d trust com p a n ies and fro m respon sib le and re co g n iz e d dealers in in vest­
m e n t securities. T e n d ers fro m others m u st be a ccom p a n ied b y paym ent o f 2 p ercen t o f the face a m ou n t o f T reasu ry bills
a pp lied fo r, unless the tenders are a ccom p a n ied b y an exp ress gu a ra n ty o f paym ent b y an in corp ora ted bank or trust com p a n y .
Im m ed ia tely after the clo s in g h our, tenders w ill be op en ed at the F ed eral R eserve B anks and B ran ches, fo llo w in g w hich
p u b lic a n n ou n cem en t w ill be m ade b y the T rea su ry D ep a rtm en t o f the a m ou n t and price range o f a ccep ted bids. T h o s e
s u b m ittin g tenders w ill be advised o f the a ccep ta n ce o r rejection thereof. T h e S ecreta ry o f the T rea su ry exp ressly reserves
the righ t t o a cce p t o r re je ct any or all tenders, in w h ole o r in part, and his action in any such resp ect shall be final. S u b ject
to th ese reservations, n on com p etitive tenders fo r $200,000 o r less w ith ou t stated price fro m a n y one bidder w ill be a ccepted
in fu ll at the a vera ge price (in three decim a ls) o f a ccep ted com p etitive bids. Settlem ent fo r a ccep ted tenders in a ccord a n ce
w ith the bids m u st b e m ade or com p leted at the F ed eral R es e rv e B ank on M a rch 15, 1956, in cash or oth er im m ediately
available fu n ds o r in a like face a m ou n t o f T rea su ry bills m aturing M arch 15, 1956. Cash and exch a n ge ten ders w ill re­
ceive equal treatm ent. Cash adjustm ents w ill be m ade fo r d ifferen ces betw een the par valu e o f m aturing bills a ccep te d in
e x ch a n g e and the issue price o f the n ew bills.
T h e in com e derived fro m T rea su ry bills, w hether interest o r gain fr o m the sale or oth er d isp osition o f the bills, d oes n ot
have a n y exem ption , as such, and loss fr o m th e sale o r oth er d isp osition o f T rea su ry bills does n ot have a n y special treat­
m ent, as such, u nder the Internal R even u e C od e o f 1954. T h e bills are su b ject t o estate, inheritance, g ift o r oth er excise taxes,
w h eth er F ed eral o r State, but are exem p t fro m all taxation n o w or hereafter im p osed on the principal or interest th ereof b y
a n y State, o r any o f the p ossession s o f the U n ited States, or b y any lo ca l ta x in g authority. F o r pu rposes o f taxation the
a m ou n t o f discou n t at w h ich T rea su ry bills are origin a lly sold b y the U n ited States is con sidered to be interest. U n der
S e ctio n s 4 5 4 (b ) and 1221(5) o f the Internal R even u e C od e o f 1954 the a m ou n t o f d iscou n t at w h ich bills issued hereunder
a re so ld is n o t con sidered to accru e until such bills are sold , red eem ed o r oth erw ise disp osed of, and such bills are exclu ded
fr o m con sideration as capital assets. A c co r d in g ly , the o w n e r o f T rea su ry bills (o th e r than life insurance com p a n ies) issued
h ereunder n eed in clude in his in com e tax return o n ly the differen ce betw een the price paid fo r such bills, w hether on original
issue o r o n subsequen t purchase, and the a m ou n t actu ally receiv ed either u p on sale or redem ption at m aturity d u rin g the
taxable year f o r w h ich the return is m ade, as ord in a ry gain or loss.
T re a su ry D epa rtm en t C ircu la r N o. 418, R evised , and this n otice, prescribe the term s o f the T rea su ry bills and g o v e rn
the con d ition s o f their issue. C opies o f the circular m a y be obtain ed fro m any F ed eral R eserve B ank or Branch.

This Bank will receive tenders up to 1 :30 p.m., Eastern Standard time, Monday, March 12, 1956, at the Securi­
ties Department o f 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 an envelope marked “ Tender for 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 or in maturing Treasury bills.
A

l l a n

S

prou l

,

President.

Results o f last offering o f Treasury bills (91-day bills dated March 8, 1956, maturing June 7, 1956)
T o ta l applied f o r .......... $2,155,908,000
T o t a l a c c e p te d ...............$1,600,068,000 (in clu d es $219,253,000
en tered on a n on com p etitive basis
and a ccep ted in full at the average
p rice sh ow n b e lo w )
A v e ra g e p rice ........ 99.451
E quivalent rate o f discou n t
a p p rox. 2.173% p er annum
R a n g e o f a ccep ted com p etitive b id s : (e x ce p tin g three ten­
ders a g g reg a tin g $900,000)
E q u iva len t rate o f discou nt
H i g h .......... .......... 99.464
app rox. 2 .120% per annum
E quivalent rate o f discou n t
L o w ..................... 99.426
a p p rox . 2.271% p er annum
(21 p e r c e n t o f th e a m o u n t b id f o r at th e l o w
p r ic e w a s a c c e p t e d )
FRASER

Digitized for


Federal R eserve
D istrict
......
N ew Y o r k .............. ......
Philadelphia ............
C leveland ..................
R ich m on d .................

St. L ou is ...................
M in n eap olis .............
K an sas C ity ............
San F ra n cisco ........
T

o tal

.................... ......

Total
A pplied for
$

39,537,000
1,556,101,000
28,406,000
46,224,000
20,448,000
37,978,000
219,317,000
27,297,000
7,474,000
43,689,000
30,285,000
99,152,000

$2,155,908,000

Total
A ccepted
$

39,537,000
1,029,551,000
18,406,000
46,224,000
20,448,000
37,878,000
204,317,000
27,297,000
7,474,000
43,689,000
26,095,000
99,152,000

$1,600,068,000
( over)

34 Z
IM P O R T A N T — I f you desire to bid on a com petitive basis, fill in rate per 100 and maturity
value in paragraph headed "Com petitive Bid.” I f you desire to bid on a noncompetitive
basis, fill in only the m aturity value in paragraph headed "Noncompetitive Bid.”
DO
N O T fill in both paragraphs on one form. A separate tender must be used fo r each bid,
except that banks submitting bids on a competitive basis for their own and their customers*
accounts may submit one tender for the total amount bid at each price, 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 w ill be furnished upon request.

No._

TENDER FOR 91-D A Y TREASURY BILLS
Dated March 15, 1956

To

F

ederal

R

eserve

B

a n k

of

N

ew

Y

o rk

Maturing June 14, 1956

Dated at

,

Fiscal Agent o f the United States.

.1956

COMPETITIVE BID

NONCOMPETITIVE BID

Pursuant to the provisions o f Treas­
ury Department Circular No. 418, Revised,
and to the provisions o f the public no­
tice on March 8, 1956, as issued by the
Treasury Department, the undersigned offers
________________________ * for a total amount of
(R a t e p e r 100)

for a total amount of $„
(N o t t o e x c e e d $200,000)

$______________________________ (maturity value)
of the Treasury bills therein described, or for
any less amount that may be awarded, settlement
therefor to be made at your Bank, on the date
stated in the public notice, as indicated below:
□

Pursuant to the provisions of Treasury De­
partment Circular No. 418, Revised, and to the
provisions of the public notice on March 8,
1956, as issued by the Treasury Department,
the undersigned offers a noncompetitive tender

By surrender of maturing Treasury bills

(maturity value) o f the Treasury bills therein
described, at the average price (in three deci­
mals) of accepted competitive bids, settlement
therefor to be made at your Bank, on the date
stated in the public notice, as indicated below:
□

By surrender of maturing Treasury bills

amounting to .......................$-------------------------------

amounting to .......................$____________________

□

□

By cash or other immediately available funds

By cash or other immediately available funds

* P rice must be exp ressed on the basis o f 100, w ith not
m ore than three decimal places, f o r exam ple, 99.925.

The Treasury bills for which tender is hereby made are to be dated March 15, 1956, and are to
mature on June 14, 1956.
This tender will be inserted in special envelope marked "Tender fo r Treasury Bills
N am e o f B id der ............................................................................................................................................
(P le a s e p r in t)

B y ......

(O fficia l s ig n a tu re r e q u ir e d )

(T itle )

Street A d d re s s ............................................
(C it y , T o w n o r V illa g e , P . O . N o ., a n d S ta te )

If this tender is submitted by a bank for the account of a customer, indicate the customer’s name on line below:
(N a m e o f C u s to m e r)

(C ity , T o w n o r V illa g e , P . O. N o ., a n d S ta te)

IM PORTANT INSTRUCTIONS:
1. N o ten der fo r less than $1,000 w ill be con sidered, and each tender m u st b e fo r an even m u ltiple o f $1,000
(m a tu rity v a lu e ).
2. I f the p erson m a k in g the ten der is a corp ora tion , the ten der should be sign ed b y an officer o f the co rp o ra ­
tion a u th orized t o m ake th e tender, and th e sig n in g o f the ten der b y an officer o f the co rp o ra tio n w ill be con stru ed as a
rep resen tation b y h im that he has been s o authorized. If the ten der is m ade b y a partnership, it sh ou ld be sign ed b y a
m em b er o f the firm , w h o sh ou ld sign in the fo r m “ ..................................................................................................... a copartn ersh ip, b y
...................................................................................................................... . a m em b er o f the firm .”
3. T e n d e rs w ill be received w ith ou t dep osit fr o m in corp ora ted banks and trust com p a n ies and fr o m re sp o n ­
sible and re co g n ized dealers in in vestm ent securities. T e n d e rs fro m oth ers m u st b e a ccom p a n ied b y paym ent o f 2 p ercen t
o f the fa ce a m ou n t o f T rea su ry bills applied for, unless th e tenders are a ccom p a n ied b y an exp ress gu a ra n ty o f paym ent
b y an in co rp o ra te d b a n k or trust com p a n y .
4. I f the language o f this tender is ch a n ged in a n y respect, w h ich , in the op in ion o f th e S ecreta ry o f the
T re a su ry , is m aterial, the ten der m a y be disregarded.

Payment b y credit through Treasury Tax and Loan A ccount tvUl not be permitted.

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( over)


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