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FEDERAL RESERVE BANK O F NEW YORK Fiscal Agent of the United States 0 L f c,[?ul" J M a r c h 1 5 ,1 9 5 6 N o. 4319 Offering o f $1,600,000,000 of 91-Day Treasury Bills Dated March 22, 1956 Maturing June 21, 1956 T o all In corpora ted B anks and Trust Com panies, and O th ers 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 15, 1956. TREASURY DEPARTM ENT W a sh in g ton T h e T r e a s u ry D epartm en t, b y this public n otice, invites tenders fo r $1,600,000,000, o r th ereabouts, o f 91-day T rea su ry bills, fo r cash and in e x ch a n g e fo r T rea su ry bills m atu rin g M a rch 22, 1956, in the a m ou n t o f $1,600,947,000, to be issued on a d isco u n t basis u nder com p etitiv e and n on com p etitiv e b id d in g as h ereinafter provid ed . T h e bills o f this series w ill be dated M arch 22, 1956, and w ill m ature June 21, 1956, w h en the face a m ou n t w ill be pa ya b le w ith ou t interest. T h e y w ill be issued in bearer fo rm o n 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 ). Tenders w ill be received at Federal^ R eserve B anks and B ran ch es up to the clo s in g h ou r, on e-th irty o ’ c lo ck p.m ., E astern Standard tim e, M o n d a y , M arch 19, 1956. T en d ers 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 ten der m u st be fo r an even m ultiple o f $1,000, and in the ca se o f com p etitive tenders the p rice offered m ust be exp ressed on the basis o f 100, w ith n ot m o re than th ree decim a ls, e. g., 99.925. F ra ction s m ay n ot be u sed. I t is u rg ed that tenders be m a d e o n th e prin ted fo rm s and fo rw a rd e d in th e sp ecia l en velop es w h ich w ill be su p plied b y F ed era l R eserve B anks o r B ra n ch es o n a pp lica tion th erefor. O th e rs than b a n k in g in stitu tions w ill n ot b e perm itted t o subm it ten ders e x ce p t fo r their o w n a ccou n t. T en d ers w ill be receiv ed w ith o u t d e p o s it fro m in co rp o ra te d banks and trust com p a n ies a n d fr o m resp on sib le a n d re co g n iz e d dealers in in vest m e n t secu rities. T e n d e rs fr o m o th ers m u st be a cco m p a n ie d b y p a ym en t o f 2 p ercen t o f the fa c e a m ou n t o f T rea su ry bills applied fo r, unless th e tenders are a ccom p a n ied b y an exp ress gu a ra n ty o f pa ym en t b y an in co rp o ra te d b a n k or trust com p a n y . Im m e d ia te ly a fter the clo s in g h ou r, ten ders w ill be op en ed at the F ed era l R eserve B anks and B ra n ch es, 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 r e a s u ry D ep a rtm en t o f the a m ou n t a n d p r ice ra n ge o f a cce p te d bids. T h o s e su b m ittin g ten ders w ill be advised o f th e a cce p ta n ce o r rejection th ereof. T h e S ecreta ry o f th e T r e a s u ry e x p re s sly reserves th e righ t t o a cce p t o r re ject a n y o r all ten ders, in w h o le o r in part, and his a ction in a n y such re s p e ct shall be final. S u b ject to th ese reserva tion s, n o n com p etitiv e ten ders fo r $200,000 or less w ith ou t stated p rice fr o m a n y on e b id d er will be a ccep ted in fu ll at the a vera ge price (in th ree d e c im a ls ) o f a ccep ted com p etitiv e bids. S ettlem en t fo r a ccep ted ten ders in a ccord a n ce w ith the b id s m u st b e m ade o r com p le te d at the Federal R eserve Bank on M a rch 22, 1956, in cash or oth er im m ediately available funds o r in a like face a m ou n t o f T rea su ry bills m atu rin g M a rch 22, 1956. Cash and ex ch a n g e tenders w ill receive equal treatm ent. Cash adjustm ents w ill be m ade fo r d ifferen ces b etw een th e par valu e o f m a tu rin g bills a ccep ted in exch a n ge an d th e issue p r ice o f th e n ew bills. T h e in co m e derived fr o m T rea su ry bills, w h eth er interest or gain fr o m the sale o r o th e r d isp osition o f the bills, d oes n o t have a n y exem p tion , as such, and loss fr o m the sale o r oth er d isp osition o f T rea su ry bills d o e s n ot have a n y special treat m ent, as such, u nder the In tern al R even u e C o d e o f 1954. T h e bills are su b ject to estate, in heritance, g ift or oth er excise taxes, w hether F ed era l o r State, but are ex em p t fr o m all taxation n o w or h ereafter im p osed on the principal or interest th ereo f b y an y State, o r any o f th e possession s o f th e U n ited States, o r b y any lo ca l ta x in g authority. F o r pu rposes o f ta xation the a m ou n t o f discou n t at w h ich T rea su ry bills are o rigin a lly sold b y the U n ited States is con sid ered to be interest. U n der S ection s 4 5 4 (b ) and 1221(5) o f the In tern al R even u e C o d e o f 1954 the a m ou n t o f d iscou n t at w hich bills issued hereun der are so ld is n o t co n sid e re d to a ccru e until such bills are sold, red eem ed or oth erw ise d isp osed of, and such bills are exclu ded fro m con sidera tion as capital assets. A c c o r d in g ly , th e ow n er o f T rea su ry bills (o th e r than life insurance co m p a n ie s ) issued h ereunder need in clu d e in his in co m e ta x 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 subsequent pu rch ase, and th e a m ou n t actu a lly receiv ed either u pon sale o r red em ption at m aturity d u rin g the taxable yea r fo r w h ich the return is m ade, as ord in a ry gain or loss. T r e a s u ry D e p a rtm e n t C ircu lar N o . 418, R ev ised , and this n otice, p rescrib e th e term s o f th e T r e a s u ry bills and g o v e rn the co n d itio n s o f their issue. C op ies o f th e circu la r m ay be ob ta in ed fro m a n y F ed era l R e serv e B a n k o r B ran ch. T h is Bank will receive tenders up to 1 :30 p.m., Eastern Standard time, M on d ay, M arch 19, 1956, at the Securities 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, sub ject to written confirmation; they may not be submitted by telephone. Payment fo r 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 p r o u l , President. Results o f last offering o f Treasury bills (91-day bills dated March 15, 1956, maturing June 14, 1956) T o ta l a pplied fo r . . $2,424,396,000 T o ta l a ccep ted . . . .$1,600,206,000 (in clu d es $247,265,000 entered on a n on com p etitiv e basis and a ccep ted in fu ll at the average price sh ow n b e lo w ) A v e ra g e price . . . 99.400 E quivalent rate o f discou n t a p p rox . 2.374% p er annum R a n g e o f a ccep ted co m p etitive b id s : (e x c e p tin g six tenders a g g reg a tin g $3,675,000) H ig h .................. 99.410 E quivalent rate o f discou nt a p p rox. 2.334% per annum L ow .................. 99.394 E q u iva len t rate o f discou n t a p p rox. 2.397% p er annum (28 p ercen t o f the a m ou n t b id fo r at the low price w as a ccep ted ) F ed era l R eserv e D istrict B o s to n ............................. N ew Y o r k ...................... P h iladelp hia .................. C levelan d ........................ R ich m on d ...................... A tla n ta ............................. C h ica g o ........................... St. L o u is ......................... M in neapolis .................. K ansas C ity .................. D allas ............................... San F r a n cis co .............. T o ta l ........................ T otal A pplied f o r $ 31,832,000 1,733.323,000 33,008,000 72,903,000 13,005,000 69,840,000 222,505,000 27,363,000 16,397,000 62,279,000 25,865,000 116,076,000 $2,424,396,000 T ota l A ccep ted $ 21,832,000 1,036,673,000 12,393,000 57,903,000 12,005,000 67,540,000 159,305,000 27,363,000 15,997,000 60,254,000 19,865,000 109,076,000 $1,600,206,000 ( over) \ 35 A IM PORTANT— If you desire to bid on a competitive basis, fill in rate per 100 and maturity value in paragraph headed "Competitive Bid.” If you desire to bid on a noncompetitive basis, fill in only the maturity 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 o f each bidder, the amount bid fo r his account, and method o f payment. Forms fo r this purpose will be furnished upon request. No. TENDER FOR 91-D A Y TREASURY BILLS Maturing June 21, 1956 Dated March 22, 1956 To F ederal R eserve Ban k of N ew Y Dated at ork, 1956 Fiscal Agent o f the United States. COMPETITIVE BID NONCOMPETITIVE BID Pursuant to the provisions o f Treasury Department Circular No. 418, Revised, and to the provisions o f the public notice on March 15, 1956, as issued by the Treasury Department, the Pursuant to the provisions of Treasury Department Circular No. 418, Revised, and to the provisions of th e public notice on March 15, 1956, as issued by the Treasury Department, the undersigned offers a noncompetitive tender undersigned o f f e r s ...................................... * for a (R ate per 100) total amount o f $ .......... . ...................... (maturity value) o f the Treasury bills therein described, or for any less amount that may be awarded, settle ment therefor to be made at your Bank, on the date stated in the public notice, as indicated below: □ By surrender o f maturing Treasury bills for a total amount o f $ ............................................ (N ot to exceed $200,000) (maturity value) of the Treasury bills therein described, at the average price (in three decimals) o f 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 *Price must be expressed on the basis of 100, with not more than three decimal places, fo r example, 99.923. The Treasury bills for which tender is hereby made are to be dated March 22, 1956, and are to mature on June 21, 1956. This tender will be inserted in special envelope marked “ Tender fo r Treasury Bills.” N a m e o f B id d er ........................................................................................................................................... (Please print) By. (Official signature required) (T itle ) S treet A d d ress (C ity, T ow n o r V illage, P. O . N o., and State) If this tender is submitted by a bank for the account of a customer, indicate the customer’s name on line below: (N am e o f Customer) (C ity, T ow n or V illage, P . O . N o., and State) IM PORTANT INSTRUCTIONS: 1. N o ten der fo r less than $1,000 w ill b e con sidered, and each ten der m u st be fo r an even m u ltiple o f $1,000 (m a tu rity v a lu e ). 2. I f th e person m a k in g the ten der is a co rp o ra tio n , the ten der sh ou ld b e sign ed b y an officer o f the c o rp o ra tion a u th orized t o m ake th e tender, and the sig n in g o f the ten der b y an officer o f th e 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 a uthorized. If the ten der is m ade b y a partnersh ip, it sh ou ld be sign ed b y a m e m b e r o f th e firm , w h o sh ou ld sign in the fo r m “ ....................................................................................................., a cop artn ersh ip, b y .......................................................................................................................................... a m em b er o f the firm .” 3. T en d ers w ill be receiv ed w ith ou t d ep osit fro 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 iz e d dealers in in vestm ent securities. T en d ers fr o m oth ers m ust be a ccom p a n ied b y pa ym en t o f 2 p ercen t o f the fa ce a m ou n t o f T r e a s u ry bills a pplied for, unless th e ten ders are a ccom p a n ied b y an ex p ress gu a ra n ty o f paym ent b y an in co rp o ra ted bank o r trust com p a n y . 4. I f the la n g u a ge o f this ten der is ch a n g ed in any respect, w h ich , in th e op in ion o f the S ecreta ry o f the T re a s u ry , is m aterial, th e ten der m a y be disregarded. Payment by credit through Treasury Tax and Loan A ccount will not be permitted. T E N T B — 1342-a (OVER)
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