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FED ERA L R ESER V E BANK O F N EW YORK 35] Fiscal Agent of the United States [ Cir°May io°i956 Offering o f $ 1 ,6 0 0 ,0 0 0 ,0 0 0 o f 91-Day Treasury B ills Dated May 17,1956 Maturing August 16, 1956 To all Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal Reserve District: Following is the text of a notice published to d ay : 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 R E A SU R Y D E P A R T M E N T T hursday, May 10, 1956. W ashington T he Treasury D epartment, by this public notice, invites tenders for $1,600,000,000, or thereabouts, of 91-day T reasury bills, for cash and in exchange for T reasury bills m aturing May 17, 1956, in the am ount of $1,600,052,000, to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be dated May 17, 1956, and will m ature A ugust 16, 1956, when the face am ount will be payable without interest. T hey will be issued in bearer form only, and in denominations of $1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,000 (m aturity value). Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty o’clock p.m., Eastern D aylight Saving time, Monday, May 14, 1956. T enders will not be received a t the T reasury Departm ent, W ashington. Each tender m ust be for an even multiple of $1,000, and in the case of competitive tenders the price offered m ust be expressed on the basis of 100, with not more than three decimals, e. g., 99.925. Fractions may not be used. It is urged that tenders be made on the printed form s and forwarded in the special envelopes which will be supplied by Federal Reserve Banks or Branches on application therefor. O thers than banking institutions will not be perm itted to submit tenders except for their own account. Tenders will be received without deposit from incorporated banks and tru st companies and from responsible and recognized dealers in invest m ent securities. Tenders from others m ust be accompanied by paym ent of 2 percent of the face am ount of T reasury bills applied for, unless the tenders are accompanied by an express guaranty of paym ent by an incorporated bank or tru st company. Immediately after the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, following which public announcem ent will be made by the T reasury D epartm ent of the am ount and price range of accepted bids. Those subm itting tenders will be advised of the acceptance or rejection thereof. T he Secretary of the T reasury 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 w ithout stated price from any one bidder will be accepted in full a t the average price (in three decimals) of accepted competitive bids. Settlem ent for accepted tenders in accordance with the bids m ust be made or completed at the Federal Reserve Bank on May 17, 1956, in cash or other immediately available funds or in a like face am ount of T reasury bills m aturing May 17, 1956. Cash and exchange tenders will re ceive equal treatm ent. Cash adjustm ents will be made for differences between the par value of m aturing bills accepted in exchange and the issue price of the new bills. T he income derived from T reasury bills, w hether 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 of T reasury bills does not have any special treat ment, as such, under the Internal Revenue Code of 1954. T he bills are subject to estate, inheritance, gift or other excise taxes, w hether 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 U nited States, or by any local taxing authority. F or purposes of taxation the am dunt of discount a t which T reasury bills are originally sold by the U nited S tates is considered to be interest. U nder Sections 454(b) and 1221(5) of the Internal Revenue Code of 1954 the am ount 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. Accordingly, the ow ner of T reasury 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, w hether on original issue or on subsequent purchase, and the am ount actually received either upon sale or redemption a t m aturity during the taxable year for which the return is made, as ordinary gain or loss. T reasury D epartm ent Circular No. 418, Revised, and this notice, prescribe the term s of the T reasury bills and govern the conditions of their issue. Copies of the circular may be obtained from any Federal Reserve Bank or Branch. T his Bank will receive tenders up to 1 :30 p.m., Eastern Daylight Saving time, Monday, May 14, 1956, at the Securi ties Departm ent of its H ead Office and a t 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 "T ender fo r T reasury Bills.” Tenders may be submitted by telegraph, subject to w ritten confirm ation; they may not be submitted by telephone. Paym ent fo r the Treasury bills cannot be made by credit through the Treasury T a x and Loan Account. Settlem ent m ust be made in cash or other immediately available fu n d s or in maturing Treasury bills. A llan S proul, President. R esu lts o f la st o fferin g o f T r ea su ry bills ( 9 1 -d a y b ills d a ted M ay 10, 1 9 5 6 , m a tu rin g A u g u st 9 , 1 9 5 6 ) Total applied f o r ......... $2,444,747,000 Total ac ce p te d ............. $1,600,616,000 (includes $235,235,000 entered on a noncompetitive basis and accepted in full at the average price shown below) Average price....... 99.362+ Equivalent rate of discount approx. 2.523% per annum Range of accepted competitive bids: H ig h ................... 99.366 Equivalent rate of discount approx. 2.508% per annum Low ................... 99.360 Equivalent rate of discount approx. 2.532% per annum (80 percent of the am ount bid for at the low price was accepted) Federal Reserve District Boston ........................... New Y ork ................... Philadelphia Cleveland ..... Richmond ..... A tlanta ......... Chicago .......... St. Louis ........ Minneapolis ... K ansas City .. Dallas ............. San Francisco T o t a l ....... Total Applied fo r $ 29,123,000 1,716,151,000 28.113.000 55.080.000 12.788.000 33.390.000 258.334.000 33.835.000 20.681.000 45.068.000 39.088.000 173.096.000 $2,444,747,000 Total Accepted $ 17,523,000 1,019,059,000 12.913.000 50.380.000 10.401.000 28.930.000 185.587.000 27.610.000 19.601.000 34.433.000 30.028.000 164.151.000 $1,600,616,000 (OVES) 35 I IM P O R T A N T — I f y o u d esire to b id on a c o m p e titiv e basis, fill in r a te p er 100 an d m a tu r ity v a lu e in p aragrap h h ead ed " C om p etitiv e B id .” I f y o u desire to b id o n a n o n co m p etitive basis, fill in o n ly th e m a tu r ity v a lu e in p a ra g ra p h h ead ed " N o n c o m p e titiv e B id .” DO N O T fill in b o th paragraphs on one fo r m . A separate ten d er m u st b e u sed f o r ea c h bid, e x c e p t th a t b an k s su b m ittin g bids on a c o m p e titiv e basis fo r th e ir o w n an d th e ir cu sto m ers’ a cco u n ts m a y su b m it on e ten d e r f o r th e t o ta l a m o u n t b id a t ea c h p rice, p ro v id ed a lis t is a tta c h e d sh o w in g th e n am e o f each b id d er, th e a m o u n t b id f o r h is a c c o u n t, an d m eth o d o f p a y m en t. Form s f o r th is p urpose w ill b e fu r n ish e d u p o n re q u est. N o_____________ TENDER FOR 9 1 -DAY TREASURY BILLS D a te d M ay 17, 19 5 6 To M a tu rin g A u g u s t 16, 1 9 5 6 Dated at F ederal R eserv e B a n k o f N e w Y o rk , Fiscal A gent of the U nited States. .1956 C O M P E T IT IV E B ID N O N C O M P E T IT IV E BID P ursuant to the provisions of Treas ury Departm ent Circular No. 418, Revised, and to the provisions of the public no tice on M ay 10, 1956, as issued by the Treasury Department, the undersigned offers ................................ .............* for a total amount of (R a te p er 100) P ursuant to the provisions of Treasury De partm ent Circular No. 418, Revised, and to the provisions of the public notice on May 10, 1956, as issued by th e T re a su ry D epartm ent, the undersigned offers a noncompetitive tender for a total amount of $----------------------------------(N o t t o e x ceed $200,000) $................................................. ....... (m aturity value) of the T reasury bills therein described, or for any less amount that may be awarded, settlement therefor to be made at your Bank, on the date stated in the public notice, as indicated below : □ By surrender of m aturing T reasury bills amounting t o ........................$----------------------------- (m aturity value) of the Treasury bills therein described, at the average price (in three deci mals) of accepted competitive bids, settlement therefor to be made a t your Bank, on the date stated in the public notice, as indicated below: □ By surrender of m aturing Treasury bills amounting t o ........................ $___________________ □ □ By cash or other immediately available funds By cash or other immediately available funds *Price must be expressed on the basis o f 100, with not more than three decimal places, fo r example, 99.925. The Treasury bills for which tender is hereby made are to be dated May 17, 1956, and are to mature on A ugust 16, 1956. This tender will be inserted in special envelope marked “Tender fo r Treasury Bills.” N am e of Bidder (P le a s e p r in t) B y ............ (O fficial s ig n a tu r e r eq u ired ) (T itle ) Street Address (C ity , T o w n o r V illa g e , P . O. N o., an d S ta te ) If this tender is subm itted by a bank for the account of a custom er, indicate the custom er’s nam e on line below: (N a m e o f C u stom er) (C ity , T o w n o r V illa g e , P . O. N o ., a n d S ta te ) IM P O R T A N T 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 m ust be for an even multiple of $1,000 (m aturity value). 2. If the person making the tender is a corporation, the tender should be signed by an officer of the corpora tion 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.” 3. T enders will be received without deposit from incorporated banks and tru st companies and from respon sible and recognized dealers in investm ent securities. T enders from others m ust be accompanied by paym ent of 2 percent of the face am ount of T reasury bills applied for, unless the tenders are accompanied by an express guaranty of paym ent by an incorporated bank or tru st company. 4. If the language of this tender is changed in any respect, which, in the opinion of the Secretary of the T reasury, is material, the tender may be disregarded. P a y m e n t b y c r e d it th r o u g h T r e a s u ry T a x a n d Loan A c c o u n t w ill n o t be p e rm itte d . http://fraser.stlouisfed.org/ T E N T B — 1350-a Federal Reserve Bank of St. Louis ( over)