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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 .

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