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FED ERA L R E SER V E BANK O F NEW YORK Fiscal Agent of the United States £ Circjuiay 26°'i9456 523 Offering o f $ 1 ,6 0 0 ,0 0 0 ,0 0 0 o f 91-Day Treasury B ills Dated August 2, 1956 Maturing November 1, 1956 To all Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal Reserve District: Follow ing is the text of a notice published to d a y : FO R RELE A SE , M ORNING N E W S PA PE R S, TREA SU RY D E PA R T M E N T Thursday, July 26, 1956. Washington The T reasury Department, by this public notice, invites tenders for $1,600,000,000, or thereabouts, of 91-day Treasury bills, for cash and in exchange for Treasury bills m aturing August 2, 1956, in the amount of $1,599,603,000, to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be dated August 2, 1956, and will mature November 1, 1956, when the face amount will be payable without interest. They 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 Daylight Saving time, Monday, July 30, 1956. Tenders will not be received at the Treasury Department, Washington. Each tender must be for an even multiple of $1,000, and 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. 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 or Branches on application therefor. Others than banking institutions will not be permitted to submit tenders except for their own account. Tenders will be received without deposit from incorporated banks and trust companies and from responsible and recognized dealers in in vestment 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 incorporated 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 acceptance 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. Subject to these reservations, noncompetitive tenders for $200,000 or less without stated price from any one bidder will be accepted in full at the average price (in three decimals) of accepted competitive bids. Settlement for accepted tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on August 2, 1956, in cash or other immediately available funds or in a like face amount of Treasury bills m aturing August 2, 1956. Cash and exchange tenders will re ceive equal treatement. Cash adjustments will be made for differences between the par value of maturing bills accepted in exchange and the issue price of the new bills. The income derived from Treasury bills, whether 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 Treasury bills does not have any special treat ment, 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 is considered 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. Accordingly, the owner 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, whether on original issue or on subsequent purchase, and the amount actually received either upon sale or redemption at m aturity during the taxable year for which the return is made, as ordinary gain or loss. 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 B ank will receive tenders up to 1 :30 p.m., Eastern D aylight Saving time, M onday, July 30, 1956, at the Securi ties Departm ent of its Head Office and at its Buffalo Branch. Please use the form on the reverse side of this circular to subm it a tender, and return it in an envelope m arked “Tender for T reasury 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 T a x and Loan Account. Settlem ent must be made in cash or other immediately available funds or in maturing Treasury bills. W i l l i a m F. T r e i b e r , First Vice President. Results of last offering of T reasury bills (91-day bills dated July 26, 1956, m aturing O ctober 25, 1956) Total applied f o r ........$2,342,619,000 Total accepted ............$1,600,219,000 (includes $279,769,000 entered on a noncompetitive basis and accepted in full at the aver age price shown below) Average price......... 99.418 Equivalent rate of discount approx. 2.303% per annum Range of accepted competitive b id s: (Excepting two tenders totaling $550,000) H i g h ..................... 99.440 Equivalent rate of discount approx. 2.215% per annum L o w ....................... 99.412 Equivalent rate of discount approx. 2.326% per annum (30 percent of the amount bid for at the low price was accepted) Federal Reserve District Total Applied for B o s to n ....................... .. New York ................. Philadelphia ............ Cleveland ................. R ich m o n d................. Chicago ..................... St. Louis ................... Minneapolis ............ Kansas City ............ San Francisco ........ T o t a l ....................... .. $ 38,690,000 1,595.001.000 36,184.000 67,876,000 15,560,000 24,662,000 317.077.000 45,238.000 14,123,000 52,331,000 38,878,000 96,999,000 $2,342,619,000 Total Accepted $ 28,690,000 948,151,000 21,184,000 57,876,000 15,560,000 24,312,000 263,977,000 45,238,000 14,123,000 52,331,000 31,778,000 96,999,000 $1,600,219,000 (o ra ) 35 T IM PO R TA N T—If you desire to b id on a com petitive basis, fill in rate p er 100 and m atu rity value in paragraph headed “C om petitive B id.” If you desire to b id on a noncom petitive basis, fill in only th e m atu rity value in p arag rap h headed “N oncom petitive B id.” DO N O T fill in both paragraphs on one form . A separate tender m ust b e used for each bid, except th a t banks subm itting bids on a com petitive basis for th e ir own an d th e ir custom ers’ accounts m ay subm it one ten d er for th e to tal am ount b id at each price, provided a list is attached showing th e nam e of each bidder, th e am ount b id fo r his account, and m ethod of paym ent. Form s fo r this purpose will be furnished upon request. No.............................. TEN DER FOR 91-DAY TREASURY BILLS D ated A ugust 2, 1956 To F ederal R eserve B a n k of N ew M aturing N ovem ber 1, 1956 D ated at Y ork, Fiscal A gent of the U nited States. 1956 C O M PETITIV E BID P ursuant to the provisions of T reas ury D epartm ent C ircular No. 418, Revised, and to the provisions of the public no tice on Ju ly 26, 1956, as issued by the T reasury D epartm ent, the undersigned offers N O N CO M PETITIV E BID P ursuant to the provisions of T reasury De partm ent C ircular No. 418, Revised, and to the provisions of the public notice on July 26, 1956, as issued by the T reasury Departm ent, the undersigned offers a noncompetitive tender ............................................ * for a total am ount of for a total am ount of $. (R a te p er 100) (N o t to exceed $200,000) $ ....................................................... (m aturity value) of the T reasury bills therein described, or for any less am ount th a t may be aw arded, settlement therefor to be made at your Bank, on the date stated in the public notice, as indicated below : (m aturity value) of the T reasu ry bills therein described, at the average price (in three deci m als) of accepted com petitive bids, settlement therefor to be made at your Bank, on the date stated in the public notice, as indicated belo w : □ □ By surrender of m aturing T reasury bills am ounting t o ..................... $------------------------------□ By cash or other immediately available funds By surrender of m aturing T reasury bills am ounting t o ..................... $_____________________ □ By cash or other immediately available funds * Price must be expressed on the basis of 100, with not more than three decimal places, for example, 99.925. T h e T reasury bills for which tender is hereby made are to be dated A ugust 2, 1956, and are to m ature on November 1, 1956. T his tender will be inserted in special envelope marked “Tender for Treasury Bills.” Name of Bidder .......................................... By (P le a s e p rin t) (T itle ) (Official s ig n a tu re req u ired ) Street Address (C ity , T ow n or 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 am e o f C ustom er) (C ity , T o w n or V illa g e , P. O. N o., a n d S ta te ) IM PORTANT INSTRU CTIO N S: 1. No tender for less than $1,000 will be considered, and each tender must 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 corporation authorized to make the tender, and the signing of the tender by an officer of the corporation will be construed as a rep resentation by him that he has been so authorized. If the tender is made by a partnership, it should be signed by a mem ber of the firm, who should sign in the form “ ........................................................................................................ a copartnership, by ........................................................................................................ . a member of the firm.” 3. 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 of 2 percent of the face amount of T reasury bills applied for, unless the tenders are accompanied by an express guaranty of payment by an incorporated bank or trust company. 4. If the language of this tender is changed in any respect, which, in the opinion of the Secretary of the Treasury, is material, the tender may be disregarded. P aym ent b y credit through Treasury T ax and Loan A ccount w ill not be perm itted. http://fraser.stlouisfed.org/ T E N T B —1361-a Federal Reserve Bank of St. Louis ( oVEH)
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