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FEDERAL RESERVE BANK O F NEW YORK /■Circular N o. 4 3 8 2 1 I N ovem ber 1, 1956 J Fiscal Agent of the U nited States Offering o f $ 1 ,6 0 0 ,0 0 0 ,0 0 0 of 91-Day Treasury B ills Dated November 8, 1956 Maturing February 7, 1957 To all Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal Reserve District: Follow ing is th e te x t o f a notice published to d a y : 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 hursday, N ovem ber 1, 1956. TREA SU RY D E PA R T M E N T W ashington T he T reasury D epartm ent, by this public notice, invites tenders for $1,600,000,000, o r thereabouts, of 91-day T reasury bills, for cash and in exchange for T reasury bills m aturing N ovem ber 8, 1956, in the am ount of $1,600,112,000, to be issued on a discount basis _under competitive and noncom petitive bidding as hereinafter provided. T h e bills of this series will be dated Novem ber 8, 1956, and will m ature F ebruary 7, 1957, when the face am ount will be payable w ithout interest. T hey will be issued in bearer form only, and in denom inations of $1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,000 (m aturity value). T enders will be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty o’clock p.m., E astern S tandard tim e, Monday, N ovem ber 5, 1956. T enders will not be received a t the T reasu ry D epartm ent, W ashington. Each tender m ust be for an even m ultiple of $1,000, and in the case of com petitive tenders the price offered m ust be expressed on the basis of 100, w ith not m ore than three decimals, e.g., 99.925. F ractio n s m ay n ot be used. I t is urged th a t tenders be made on the printed form s and forw arded in the special envelopes w hich will be supplied by Federal Reserve Banks or Branches on application therefor. O thers than banking institutions will not be perm itted to subm it tenders except fo r their own account. T enders will be received w ithout deposit from incorporated banks and tru st com panies and from responsible and recognized dealers in invest m ent securities. T enders from others m ust be accom panied by paym ent of 2 percent of the face am ount of T reasury bills applied for, unless the tenders are accom panied by an express guaranty of paym ent by an incorporated bank o r tru st company. Im m ediately after the closing hour, tenders will be opened a t 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 at 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 com pleted at the Federal Reserve Bank on N ovem ber 8, 1956, in cash o r o th er imm ediately available funds or in a like face am ount of T reasury bills m aturing N ovem ber 8, 1956. Cash and exchange tenders will receive 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 h e 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 tre a t ment, as such, under the Internal Revenue Code of 1954. T h e bills are subject to estate, inheritance, gift or other excise taxes, w hether Federal or State, but are exem pt 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 ount of discount a t which T reasury bills are originally sold by the U nited States 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 a t which bills issued hereunder are sold is not considered to accrue until such bills are sold, redeemed o r otherw ise disposed of, and such bills are excluded from consideration as capital assets. Accordingly, the owner of T reasury bills (o th er than life insurance com panies) 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 o r redem ption a t m aturity during the taxable year for which the return is made, as ordinary gain o r loss. T reasury D epartm ent Circular No. 418, Revised, and this notice, prescribe the term s of the T reasury bills and govern th e conditions of their issue. Copies of the circular may be obtained from any Federal Reserve Bank o r Branch. This Bank will receive tenders up to 1:30 p.m., Eastern S tan d ard time, Monday, November 5, 1956, at the Securities Departm ent of 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 T reasury Bills.” Tenders may be submitted by telegraph, subject to written confirmation; they may not be submitted by telephone. Paym ent fo r the Treasury bills cannot be made by credit through the Treasury T ax 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 lf r e d H ayes, President. R e s u lts o f la s t o ffe rin g o f T r e a s u r y b ills ( 9 1 - d a y b ills d a te d N o v e m b e r 1, 1 9 5 6 , m a tu r in g J a n u a r y 3 1 , 1 9 5 7 ) Total applied f o r ___$2,674,659,000 Total accepted............$1,601,665,000 (includes $304,171,000 entered on a noncompetitive basis and accepted in full at the average price shown below) Average price ___ 99.270 Equivalent rate of discount approx. 2.889% per annum Range of accepted competitive bids: (excepting four tenders totaling $1,121,000) High ................... 99.280 Equivalent rate of discount annrox 2 848% ner annum T on ?ao J ; : ; ,.annun; Low ................... 99.269 Equivalent rate of discount approx. 2.892% per annum (81 percent of the amount bid for at the low price was accepted) Federal Reserve District Boston ............................. New Y o r k ....................... Philadelphia ................... C leveland......................... Richmond ....................... Atlanta ............................. Chicago ........................... M in iS S u '......................... Minneapolis .................... Kansas City .................... Dallas San Francisco " ii!! Total ............... Total Total Applied fo r Accepted $ 38,076,000 $ 26252,000 1,897,764,000 1,033,598,000 28,106,000 13,030,000 61,867,000 36,947,000 20,276,000 17,441,000 36,563,000 32,351,000 316,826,000 221,196,000 iJ n lo S S ^,506,000 16,059,000 15,959,000 41,658,000 37,638,000 ^ 1 ^ 7 000 ?o ioi nnn l^ ffio o o lO ^ O O O -------------------------------!__ $2,674,659,000 $1,601,665,000 ( over) IM P O R T A N T — P lea se n o te t h a t clo sin g tim e is 1 :3 0 p .m ., E a s te r n S ta n d a r d tim e. 36 H Closing time for receipt of tenders is 1:30 p.m., Eastern Standard time, Monday, November 5, 1956 IM PO 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 ara g ra p h h ead ed " C o m p etitiv e B id.” I f y o u desire to b id o n a n o n co m p etitive b asis, 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.” D O N O T fill in b o th p a ragraphs o n one fo r m . A separate ten d e r m u st b e u sed f o r ea ch b id , e x c e p t th a t b an k s su b m ittin g b id s o n a c o m p e titiv e basis f o r th e ir o w n a n d th e ir cu sto m ers’ a cc o u n ts m a y su b m it one ten d er f o r th e t o ta l a m o u n t b id a t ea c h p ric e, p ro v id ed a lis t is a tta c h e d sh o w in g th e nam e o f each b id d er, th e a m o u n t bid fo r his a c c o u n t, a n d m eth o d o f p a y m e n t. Form s fo r th is p urpose w ill b e fu r n ish e d u p on req u est. No............................ TENDER FOR 9 1 -DAY TREASURY BILLS D ated N ovem ber To 8 , 1956 F ed er a l R eserv e B a n k o f N e w M a tu rin g F eb ru a ry 7 , 1 9 5 7 Dated at Y ork, 1956 Fiscal Agent of the United States. C OM PETITIVE BID P ursuant to the provisions of Treasury Departm ent Circular No. 418, Revised, and to the provisions of the public notice on November 1, 1956, as issued by the T reasury Department, the undersigned o f f e r s * for a (R a te per 100) N O N C O M P E T IT IV E B ID P ursuant to the provisions of T reasury Departm ent Circular No. 418, Revised, and to the provisions of the public notice on November 1, 1956, as issued by the T reasury Department, the undersigned offers a noncompetitive tender for a total amount of $ ............................................... (N o t to exceed $200,000) total amount of $ ............................ .. (m aturity value) of the T reasury bills therein described, or fo r any less amount that may be awarded, settle m ent therefor to be made at your Bank, on the date stated in the public notice, as indicated below : bills (m aturity value) of the T reasury bills therein described, at the average price (in three decimals) 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 o f m aturing T reasury bills amounting to ........... . . .$.......................................... amounting to ................... $____________________ □ □ □ ....By surrender of maturing Treasury 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 T reasury bills for which tender is hereby made are to be dated November m ature on F ebruary 7, 1957. 8 , 1956, and are to T his tender will be inserted in special envelope marked “Tender fo r Treasury B ills” Name of Bidder By. (P lease p rin t) (Official sig n atu re required) (T itle ) Street Address (C ity, Tow n o r V illage, P . O. N o., and S tate) If this tender is subm itted by a bank for the account of a custom er, indicate the custom er’s name on line below: (N am e o f C ustom er) (C ity, Tow n or V illage, P . O . N o., and S tate) 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 fo r an even m ultiple of $1,000 (m aturity value). 2. If the person m aking the tender is a corporation, the tender should be signed by an officer of the co rpora tion authorized to m ake the tender, and the signing of the tender by an officer of the corporation will be construed as a representation by him th at he has been so authorized. If the tender is made by a partnership, it should be signed by a m em ber of the firm, who should sign in the form “ ......................................................................................., a copartnership, by ................................................................................................................... . a m em ber of th e firm.” 3. T enders will be received w ithout deposit from incorporated banks and tru st com panies and from respon sible and recognized dealers in investm ent securities. T enders from others m u st be accom panied by paym ent of 2 per cent of the face am ount of T reasury bills applied for, unless the tenders are accom panied by an express guaranty of pay m ent by an incorporated bank o r tru st company. 4. If the language of this tender is changed in any respect, which, in the opinion of the S ecretary of the T reasury, is m aterial, the tender m ay be disregarded. P a y m e n t b y c re d it th r o u g h T re a su ry T a x a n d Loan A c c o u n t w ill n o t b e p e rm itte d . T E N T B — 1375-a ( over)
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