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FED ERAL RESERVE BAN K O F NEW YORK Fiscal Agent of the United States r C ir c u la r N o. 4 3 9 5 1 L D e c e m b e r 6,1956 J Offering o f $ 1 ,6 0 0 ,0 0 0 ,0 0 0 of 91-Day Treasury B ills Dated December 13, 1956 M aturing M arch 14, 1957 To all Incorporated B anks and T rust Companies, and Others Concerned, in the Second Federal Reserve D istrict: Following is the tex t 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 RY D EPA RTM EN T T hursday, December 6, 1956. W ashington T he T reasury D epartm ent, 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 December 13, 1956, in the am ount of $1,600,383,000, to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. T he bills of this series will be dated December 13, 1956, and will m ature M arch 14, 1957, w hen the face am ount will be payable w ithout 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). T enders will be received a t Federal Reserve Banks and Branches up to the closing hour, one-thirty o’clock p.m., Eastern Standard time, Monday, December 10, 1956. Tenders will not be received a t the T reasury D epartm ent, W ashington. 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 subm it tenders except for their own acco u n t 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 tru st company. Im mediately after the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, following which public announcem ent will be m ade 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 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 w ithout stated price from any one bidder will be accepted in full at the average price (in three decimals) of accepted com petitive bids. Settlem ent for accepted tenders in accordance with the bids m ust be made or completed at the Federal Reserve Bank on December 13, 1956, in cash or other immediately available funds or in a like face am ount of T reasury bills m aturing December 13, 1956. Cash and exchange tenders will re ceive equal treatm ent. Cash adjustm ents will be m ade 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 United 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 United 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 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, 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 h is B ank w ill receive ten d ers up to 1 :30 p.m., E a ste rn S tandard tim e, M onday, D ecem ber 10, 1956, a t th e S ecuri ties Department 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 fo r 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 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 l f r e d H a y e s , President. Results of last offering of T reasu ry bills (91-day bills dated Decem ber 6, 1956, m atu rin g M arch 7, 1 9 5 7 ) T otal applied for......... $2,232,428,000 T otal accep ted ............. $1,600,088,000 (includes $281,482,000 entered on a noncompetitive basis and accepted in full at the average price shown below) Average price....... 99.216 Equivalent rate of discount approx. 3.102% per annum Range of accepted competitive bids: (excepting one tender of $15,000) H ig h ................... 99.224 Equivalent rate of discount approx. 3.070% per annum Low ................... 99.209 Equivalent rate of discount approx. 3.129% per annum (36 percent of the am ount bid for at the low price was accepted) Federal Reserve D istrict Boston ........................... New Y o r k ..................... Philadelphia ................. Cleveland ..................... Richmond ..................... A tlanta ......................... Chicago ......................... St. Louis ........................ Minneapolis ................. K ansas City ................. Dallas ............................ San Francisco ............. T otal Total Applied fo r $ Total Accepted 44,491,000 1,595,919,000 31,903,000 64,722,000 20,883,000 26,993,000 224,609,000 29,857,000 13,230,000 37,449,000 34,960,000 107,412,000 $ 34,491,000 1,053,419,000 16,703,000 54,722,000 20,883,000 26,493,000 177,329,000 29,857,000 13,030,000 36,809,000 32,560,000 103,792,000 ..................... $2,232,428,000 $1,600,088,000 ( over) 36 M IM P O R T A N T — I f y o u d esire t o 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 d esire to b id o n a n o n c o m p e titiv e 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 .” DO N O T fill in b o th paragraphs on one fo r m . A sep a ra te ten d er m u st b e u sed f o r ea ch bid, e x c e p t th a t b a n k s su b m ittin g bids on a co m p etitiv e basis f o r th e ir o w n a n 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 ea c h b id d er, th e a m o u n t b id f o r his a c c o u n t, an d m ethod o f p a y m en t. Form s f o r th is p urpose w ill be fu r n ish e d u p on req u est. N o_____________ TEN D ER FOR 91 -DAY TREASURY BILLS D a te d D ecem b er 1 3 , 1 9 5 6 To M a tu rin g M arch 14, 1 9 5 7 Dated at F ederal R eser v e B a n k o f N e w Y ork , 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 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 D ecem ber 6 , 1956, as issued b y th e T reasury Departm ent, the undersigned offers _______________________ * fo r a total amount of P ursuant to the provisions of T reasury De partm ent Circular No. 418, Revised, and to the provisions of th e public notice on D ecem ber 6 , 1956, as issued by th e T re a su ry D epartm en t, the undersigned offers a noncompetitive tender for a total amount of $„ (R a te p e r 100) (N o t to e x ce e d 5200,000) $____________________________ (m aturity value) of the T reasury bills therein described, or for any less amount that may be awarded, settlement therefor to be made at your Bank, on the date stated in the public notice, as indicated below : □ By surrender of m aturing T reasury bills amounting t o ........................$___________________ (m aturity value) of the T reasury bills therein described, at the average price (in three deci m als) 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 o r other immediately available funds * Price must be expressed on the basis o f 100, with not more than three decimal places, for example, 99.925. T h e T re a su ry bills for w hich tender is hereby m ade are to be dated D ecem ber 13, 1956, and are to m atu re on M arch 14, 1957. T his tender will be inserted in special envelope marked “Tender fo r Treasury Bills.” N am e of Bidder (P le a se p r in t) B y ............ (O fficial s ig n a tu r e req u ir e d ) (T itle ) S treet Address (C ity , T o w n o r V illa g e , P . O. N o., a n d S ta te ) If this tender is subm itted by a bank for the account of a customer, indicate the customer’s nam e on line below: (N a m e o f C u sto m 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 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 the firm.” 3. T enders will be received w ithout deposit from incorporated banks and tru st companies and from respon sible and recognized dealers in investm ent 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 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. Payment http://fraser.stlouisfed.org/ T E N T B — 1380-a Federal Reserve Bank of St. Louis b y credit through Treasury T ax and Loan Account w ill not be permitted. ( over)
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