The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
I *£ FEDERAL RESERVE BANK O F NEW YORK Fiscal Agent of the United States f C ir c u la r N o. 4 3 8 8 1 L N o v e m b e r 15,1956 J Offering o f $ 1 ,6 0 0 ,0 0 0 ,0 0 0 of 90-Day Treasury B ills Dated November 23, 1956 Maturing February 21, 1957 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 , TREA SU R Y D EPA R TM EN T Thursday, November 15, 1956. W ashington The Treasury Department, by this public notice, invites tenders for $1,600,000,000, or thereabouts, of 90-day Treasury bills, for cash and in exchange for Treasury bills maturing November 23, 1956, in the amount of $1,600,415,000, to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be dated November 23, 1956, and will mature February 21, 1957, 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 (maturity value). Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty o’clock p.m., Eastern Standard time, Monday, November 19, 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. I t 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. O thers than banking institutions will not be perm itted to submit tenders except for their own account. Tenders will be received w ithout deposit from incorporated banks and tru st companies and from responsible and recognized dealers in invest m 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 trust company. Immediately 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 submitting 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 without stated price from any one bidder will be accepted in full a t the average price (in three decimals) of accepted com petitive bids. Settlement for accepted tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on November 23, 1956, in cash or other immediately available funds or in a like face amount of Treasury bills maturing November 23, 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, 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 U nited States, or by any local taxing authority. For 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 or otherw ise 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 at 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 Treasury bills and govern the conditions of their issue. Copies of the circular may be obtained from any Federal Reserve Bank or Branch. This Bank will receive tenders up to 1 :30 p.m., Eastern Standard time, Monday, November 19, 1956, at the Securi ties Departm ent of its H ead 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 “T ender for Treasury 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 a x and Loan Account. Settlem ent must be made in cash or other immediately available fu n d s or in maturing Treasury bills. A lfred H ayes , President. R esu lts o f la st offerin g o f T r ea su ry b ills ( 9 1 -d a y bills d a ted N o v em b e r 15, 1 9 5 6 , m a tu rin g F eb ru ary 14, 1 9 5 7 ) Total applied f o r .......... $2,492,954,000 Total accepted................ $1,600,542,000 (includes $274,184,000 entered on a noncompetitive basis and accepted in full at the average price shown below) Average price.......... 99.247 Equivalent rate of discount approx. 2.979% per annum Range of accepted competitive bids: (excepting one tender of $400,000) High ...................... 99.280 Equivalent rate of discount approx. 2.848% per annum Low ....................... 99.243 Equivalent rate of discount approx. 2.995% per annum (26 percent of the amount bid for at the low price was accepted) Federal Reserve District Total Applied for Boston ......................... ...... $ 28,211,000 New York .................. ..... 1,746,435,000 Philadelphia ................ 29,457,000 Cleveland .................... 73,186,000 Richmond ................... 26,216,000 Atlanta ........................ 27,903,000 Chicago ....................... 267,493,000 St. Louis ...................... 25,674,000 Minneapolis ............... 17,572,000 Kansas City ................ 45,518,000 Dallas ......................... 45,898,000 San Francisco ............ 159,391,000 T o t a l ......................... ...... $2,492,954,000 Please n ote th a t th e c u r r e n t offerin g is f o r 9 0 -d a y T r ea su ry bills. Total Accepted $ 17,811,000 961,823,000 14,457,000 r 73,186,000 24,216,000 24,623,000 199,293,000 25,654,000 17,572,000 42,558,000 45,898,000 153,451,000 $1,600,542,000 ( over) 36 J IM P O R T A N T — P lease n ote th a t th is o fferin g is f o r 9 0 -d a y T r ea su ry b ills, 'which w ill be d ated F rid a y, N o v e m b e r 23, 1956. IM P O R T A N T — I f y o u d esire t o b id o n 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 d esire t o b id on 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 co 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 b id , e x c e p t t h a t bank s su b m ittin g bids on a c o m p e titiv e basis f o r th eir o w n an d th e ir cu sto m ers’ a cco u n ts m a y su b m it one ten d e r f o r th e t o ta l a m o u n t bid a t ea ch p rice, 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 idd er, th e a m o u n t b id fo r his a cc o u n t, an d m ethod o f p aym en t. Form s f o r th is purpose w ill be fu rn ish ed u p o n req u est. No.* TENDER FOR 90-D A Y TREASURY BILLS D a te d N o v em b e r 2 3 , 1956 M a tu rin g F eb ru a ry 2 1 , 1 9 5 7 Dated a t ....... To F ed er a l R eserv e B a n k o f N e w Y o r k , Fiscal A gent of the U nited States. .1956 C O M P E T IT IV E BED N O N C O M P E T IT IV E B ID P ursuant to the provisions of T reas ury Departm ent Circular No. 418, Revised, and to the provisions of the public no tice on November 15, 1956, as issued by the T reasury Department, the undersigned offers ............. ................................ * for a total amount of P ursuant to the provisions of T reasury De partm ent Circular No. 418, Revised, and to the provisions of the public notice on November 15, 1956, as issued by th e T re asu ry D epartm en t, the undersigned offers a noncompetitive tender (R a te per 100) for a total amount of (N o t to 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 T reasury bills therein described, at the average price (in three deci mals) 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 of m aturing T reasury 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 November 23, 1956, and are to mature on February 21, 1957. This tender will be inserted in special envelope marked. “Tender fo r Treasury Bills.” Name of Bidder (P le a se p r in t) B y ............ (O fficial s ig n a tu r e req u ired ) (T itle ) Street Address (C ity , T o w n o r V iU age, P . O. N o., a n d S ta te ) I f this tender is subm itted by a bank for the account of a custom er, indicate the customer’s nam e on line below: (N a m e o f C ustom er) (C ity, T o w n o r V illa g e , P. O. N o., an 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 cf the firm.” 3. T enders will be received w ithout deposit from incorporated banks and trust companies and from respon sible and recognized dealers in investment securities. T en d ers 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 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 T reasury, is material, the tender may be disregarded. P aym ent b y credit through T reasury T a x and Loan A ccount w ill not be perm itted. http://fraser.stlouisfed.org/ T E N T B — 1377-a Federal Reserve Bank of St. Louis ( over)
@FedFRASER