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FED ERAL RESERVE BAN K O F NEW Fiscal Agent o f the United States YORK f C ircular No. 4 3 9 8 T L D ecem ber 13, 1956 J O ffe rin g o f $ 1 ,6 0 0 ,0 0 0 ,0 0 0 o f 9 1 -D ay T re a s u ry B ills Dated December 20, 1956 Maturing March 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 , T hursday, D ecem ber 13, 1956. TREA SU R Y D E PA R T M E N T W ashington T h e 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 20, 1956, in the am ount of $1,600,404,000, 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 December 20, 1956, and will m ature M arch 21, 1957, when the face am ount will be payable w ithout interest. T h ey 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 Standard time, M onday, December 17, 1956. T enders will not be received at the T reasu ry D epartm 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. I t is urged th at tenders be m ade on the printed forms and forw arded 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 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 tru st company. Im m ediately 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 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 D ecem ber 20, 1956, in cash o r other imm ediately available funds or in a like face am ount of T reasury bills m aturing Decem ber 20, 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 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, o r by any local_ taxing authority. F o r purposes of taxation the am ount of discount at 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 (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 or redem ption 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 T reasury 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, December 17, 1956, at the Securities 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 “Tender for Treasury Bills.” Tenders may be submitted by telegraph, sub ject to w ritten 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. Settlement m ust be made in cash or other immediately available fund s or in maturing Treasury bills. A lf r e d H ayes, President. Results of last offering of T reasu ry bills (91-day bills dated Decem ber 13, 1956, m atu rin g M arch 14, 1957) T otal applied for ...$2,309,998,000 T otal accepted ........ $1,600,218,000 (includes $315,198,000 entered on a noncompetitive basis and accepted in full at the average price shown below) Average price . . 99.174 Equivalent rate of discount approx. 3.268% per annum .............. Range of accepted com petitive bids: H igh ................ 99.241 Equivalent rate of discount approx. 3.003% per annum t on 1£.( P . , . . , Low 99166 Equivalef ?0r^ e of dlscount approx. 3.299% per annum (60 percent of the am ount bid for at the low price was accepted) Federal ReserveTotal Total _____ District__ Applied for Boston .......................... $ 31,595000 New Y o rk .................... 1,618,910,000 Philadelphia ................ 32,176,000 Cleveland ...................... 56,092,000 Richmond .................... 25,631,000 A tlanta .......................... 58,240,000 Chicago ........................ 216,377,000 St. Louis ...................... 33,134,000 13,847,000 M in n e ap o lis.................. K ansas City ................ 60,729,000 Dallas ............................ 39!080;000 gan F ra n c is c o .............. 124,087,000 ------------- ---T o t a l .............. $2,309,998,000 Accepted * 21,495,000 1,021,210000 17,176,000 53,992,000 25,631 000 57,740,000 149,177,000 33,134,000 13,847,000 54,729,000 39;080,000 113,007,000 -----------------$1,600,218,000 ( over) 36 N 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 a n 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 bid on a n o n c o m p e titiv e 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 .” D O N O T fill in b o th p a ragraphs on one fo r m . A sep arate ten d e r m u st be u sed f o r ea ch bid, e x c e p t th a t b an 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 an d th eir cu stom ers' a cc o u n ts m a y su b m it one ten d er fo r th e to ta l a m o u n t b id 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 id d er, th e a m o u n t bid fo r h is a c c o u n t, an d m ethod o f p a y m en t. Form s fo r th is purpose w ill be fu rn ish ed u p o n req u est. v N o.................................. TENDER FOR 91 -DAY TREASURY BILLS D a te d D ecem b er 2 0 , 195 6 To M a tu rin g M arch 2 1 , 1 9 5 7 Dated at ................................................. F ederal R eserv e B a n k o f N ew Y ork, 1956 Fiscal Agent of the United States. 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 reasury Departm ent Circular No. 418, Revised, and to the provisions of the public notice on December 13, 1956, as issued by the T reasury Department, the P ursuant to the provisions of Treasury Department Circular No. 418, Revised, and to the provisions of the public notice on December 13, 1956, as issued by the T reasury Department, the undersigned offers a noncompetitive tender undersigned o f f e r s .........................................* for a (R ate per 100) 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 for any less amount that may be awarded, settle ment 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 (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 of maturing Treasury bills amounting to ................... $------------------------------ - amounting to ................... $_----------------------------- □ □ □ 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 arc to be dated December 20, 1956, and are to m ature on M arch 21, 1957. T his tender will be inserted in special envelope marked “Tender fo r Treasury Bills.” N am e of Bidder .............................................................................................................................. (P lea se p rin t) B y. (Official sig n atu re required) (T id e ) Street Address (C ity, Tow n or V illage, P . O . N o., a n d S tate) If this tender is submitted by a bank for the account of a customer, indicate the customer’s name on line below: (N a m e o f Custom er) (C ity, T ow 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 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 m ade 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 en d ers 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 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 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. P aym ent b y credit th ro u g h T reasury T a x and Loan A cc o u n t w ill n o t be perm itted. T E N T B — 1381-a (OVER)
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