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FEDERAL RESERVE BANK O F NEW YORK Fiscal A gen t o f the United States rCircular No. 4 4 3 3 L March 7, 1957 J Offering of $1,800,000,000 of 91-Day Treasury Bills D ated M arch 14, 1957 M aturing June 13, 1957 T o all Incorporated B anks and Trust Com panies, and Others Concerned, in the Second Federal R eserv e D istrict: F ollow in g is the text 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 h u rsd a y, M a rch 7, 1957. T h e T re a su ry D epartm ent, by b ills, fo r cash and in exch a n ge fo r a discou n t basis under com petitive M arch 14, 1957, and w ill mature issued in bearer fo rm on ly, and in TREASU RY DEPARTM ENT W a sh in gton this pu blic n otice, invites tenders for $1,800,000,000, or thereabouts, o f 91-day T reasu ry Treasury’ bills m aturing M arch 14, 1957, in the am ount o f $1,599,968,000, to be issued on and n on com petitive bid d in g as hereinafter provided . T h e bills o f this series w ill be dated June 13, 1957, w hen the face am ount w ill be payable w ith ou t interest. T h ey w ill be denom inations o f $1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,000 (m atu rity v a lu e ). T en ders w ill be received at F ed eral R eserve Banks and Branches up to the clo s in g hour, on e-th irty o ’c lo c k p.m., Eastern Standard tim e, M on d a y, M arch 11, 1957. T en ders w ill not be received at the T reasu ry D epartm ent, W a sh in gton . Each tender m ust be fo r an even m ultiple o f $1,000, and in the ca se _of com petitive tenders the p rice offered m ust be expressed on the basis o f 100, w ith not m ore than three decim als, e.g., 99.925. F raction s may n ot be used. It is urged that tenders be m ade o n the printed form s and forw a rd ed in the special envelopes w hich w ill be supplied b y F ed eral R eserve Banks or B ran ches o n application therefor. O thers than banking institutions w ill n ot be perm itted to subm it tenders excep t fo r their ow n a ccou nt. T en ders w ill be received w ith ou t deposit from in corporated banks and trust com panies and from responsible and recogn ized dealers in in vestm ent securities. T en ders from others must be accom panied by paym ent o f 2 percent o f the fa ce am ount o f T rea su ry bills applied for, unless the tenders are accom pa n ied b y an express gu aranty o f paymen/t by an in corporated bank o r trust com pany. Im m ediately after the closin g hour, tenders w ill be opened at the Federal R eserve Banks and B ranches, fo llo w in g w hich pu blic announcem ent w ill be made b y the T rea su ry D epartm ent o f the am ount and price range o f a ccep ted bids. T h ose subm itting tenders w ill be advised o f the accep tance o r rejection th ereof. T h e S ecretary o f the T reasu ry exp ressly reserves the right to accept o r reject any or all tenders, in w hole or in part, and his a ction in any such respect shall be final. S u b ject to these reservations, noncom petitive tenders fo r $200,000 or less w ithout stated price from any one b idd er w ill be accepted in fu ll at the average price (in three decim als) o f accepted com petitive bids. Settlem ent fo r a ccepted tenders in a ccord a n ce with the bids must be made or com pleted at the Federal R eserve Bank on M arch 14, 1957, in cash o r oth er im m ediately availa b le funds o r in a like face am ount o f T reasu ry bills m aturing M arch 14, 1957. Cash and exch a n ge tenders w ill re ceive equal treatment. Cash adjustm ents w ill be made fo r differences betw een the par value o f m aturing bills a ccepted in exch a n ge and the issue price o f the new bills. T h e in com e derived from T reasu ry b ills, w hether interest or ga in from the sale or other d isp osition o f the bills, does not have any exem ption, as such, and loss from the sale or other disposition o f T reasu ry bills does not have any special treat ment, as such, under the Internal Revenue C od e o f 1954. T h e b ills are subject to estate, inheritance, g ift or oth er excise taxes, whether Federal o r State, but are exem pt from a ll taxation n ow or hereafter im posed on the principal or interest th ereof by any State, o r any o f the possessions o f the U nited States, or by a n y loca l taxing authority. F o r purposes o f ta xation the am ount o f discou nt at w hich T reasu ry bills are origin a lly s o ld by the U nited States is con sid ered to be interest. U nder S ection s 45 4 (b ) and 1221(5) o f the Internal Revenue C ode o f 1954 the am ount o f discou nt at w hich bills issued hereunder are sold is not con sidered to accru e until such bills are sold, redeem ed or otherw ise disp osed o f, and such bills are exclu ded from con sidera tion as capital assets. A cco r d in g ly , the ow ner o f T reasu ry bills (oth er than life insurance com p a n ies) issued hereunder need in clude in his incom e ta x return on ly the difference between the price pa id fo r such bills, w hether on origin a l issue o r on subsequent purchase, and the am ount actu ally received either upon sale o r redem ption at m aturity du rin g the taxable year fo r w hich the return is made, as ord in a ry gain or loss. T reasu ry D epartm ent C ircu la r N o. 418, R evised, and this notice, prescribe the terms o f the T reasu ry bills and govern the con d ition s o f their issue. Copies o f the circu la r m ay be ob ta in ed from any F ed eral R eserve Bank or B ranch. This Bank will receive tenders up to 1:30 p.m., Eastern Standard time, Monday, March 11, 1957, at the Securi ties Department o f its Head Office and at its Buffalo Branch. Please use the form on the reverse side o f this circular to submit a tender, and return it in an envelope marked “ Tender for Treasury Bills.” Tenders may be submitted by telegraph, subject to written confirm ation; they may n ot be submitted by telephone. Payment for the Treasury bills cannot be made by credit through the Treasury T ax and Loan Account. Settlement must be made in cash or other immediately available funds or in maturing Treasury bills. A l f r e d H a y e s , President. Results o f last offering o f Treasury bills (91-day bills dated M arch 7, 1957, maturing June 6, 1957) T o ta l applied fo r . $2,768,718,000 T o ta l a ccepted ----- $1,800,389,000 (in clu des $309,053,000 entered on a noncom petitive basis and accepted in fu ll at the aver age price show n b elow ) R ange o f a ccepted com petitive b id s : H i g h ..................... 99.186 E quivalent rate o f discount approx. 3.220% per annum L o w ....................... . 99.178 Equivalent rate o f discount approx. 3.252% per annum A v e r a g e ................. 99.179 E quivalent rate o f discount approx. 3.246% per annum (68 percent o f the am ount bid fo r at the low price was accep ted) Federal R eserve District B oston ....................... . . New Y o rk ............... . . Philadelphia ............. C leveland ................... Rich m on d ................. A tlanta ....................... C h ica go ..................... St. L ou is ................... M inneapolis ............. K ansas C ity ........... D allas ......................... San F ra n cisco ......... T o t a l ...................... . . . Total A pplied jor Total A ccep ted $ 37,548,000 2,000.890,000 37,537.000 66,052,000 31.104.000 44.762.000 304,675,000 32,041,000 13,038.000 39.487.000 49.210.000 112,374,000 $ 21,398,000 1,289.909,000 17,739,000 39,464,000 14.799.000 33.305.000 210,216,000 28,085,000 11,338,000 31.457.000 27.142.000 75.537.000 $2,768,718,000 $1,800,389,000 ( over) 36 Z IM P O R T A N T — I f you desire to bid on a com petitive basis, fill in rate p er 100 and maturity value in paragraph headed “ Com petitive B id.” I f you desire to bid on a non com p etitive basis, fill in on ly the m aturity value in paragraph headed “ N oncom petitive B id.” DO N O T fill in b oth paragraphs on on e form . A separate tender must be used fo r each bid, except that banks submitting bids on a com petitive basis fo r their own and their customers’ accounts may subm it one tender for the total amount b id at each price, provided a list is attached showing the nam e o f each bidder, the amount b id fo r his account, and method o f payment. Forms fo r this purpose w ill be furnished u pon request. N o ............................... T E N D E R F O R 9 1 -D A Y T R E A S U R Y B IL L S Dated M arch 14, 1957 To F e d e ra l R eserve B ank o f N ew Maturing June 13, 1957 Dated at Y ork, Fiscal Agent of the United States. 1957 C O M P E TIT IV E BID Pursuant to the provisions o f Treasury Department Circular No. 418, Revised, and to the provisions o f the public notice on March 7, 1957, as issued by the Treasury Department, the undersigned offers .............................................* fo r a total amount o f (Rate per 100) $ ....................................................... (maturity value) o f the Treasury 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 b e lo w : □ By surrender o f maturing Treasury bills amounting t o ..................... $----------------------------------□ N O N C O M PE TITIV E BID Pursuant to the provisions o f Treasury De partment Circular N o. 418, Revised, and to the provisions o f the public notice on March 7, 1957, as issued by the Treasury Department, the undersigned offers a noncompetitive tender for a total amount o f $ .............................................. (Not to exceed $200,000) (maturity value) o f the Treasury bills therein described, at the average price (in three deci mals) o f accepted com petitive bids, settlement therefor to be made at your Bank, on the date stated in the public notice, as indicated b e lo w : □ By surrender o f maturing Treasury bills amounting t o ..................... $_______________________ B y cash or other immediately available funds □ By cash or other immediately available funds * P ricc must be expressed, on the basis o f 100, w ith not m ore than three decimal places, fo r exam ple, 99.925. The Treasury bills for which tender is hereby made are to be dated March 14, 1957, and are to mature on June 13, 1957. This tender will be inserted in special envelope marked “ Tender for Treasury B ills” N am e o f B id der ........................................................................................................................................... (Please print) By (Official signature required) Street A dd ress (Title) ...................................... . (City, Town or Village, P. O. No., and State) I f this tender is subm itted b y a bank fo r the accou n t o f a custom er, indicate the cu stom er’ s name on line b elow : (Name of Customer) (City, Town or Village, P. O. No., and State) IM P O R T A N T IN STR U C T IO N S: 1. N o tender fo r less than $1,000 w ill be con sid ered , and each tender must be fo r an even m ultiple o f $1,000 (m atu rity va lu e). 2. I f the person m aking the tender is a corp ora tion , the tender should be signed b y an officer o f the corp oration authorized to make the tender, and the sign in g o f the tender by an officer o f the corp ora tion w ill be construed as a rep resentation b y him that he has been so authorized. If the ten der is made by a partnership, it sh ou ld be signed by a m em ber o f the firm, w h o should sign in the form “ .............................................................................................................., a copartnership, by ...................................................................................................................... a m em ber o f the firm .” 3. T en ders w ill be received w ithout deposit from in corporated banks and trust com panies and from respon sible and recogn ized dealers in investm ent securities. T en d ers from others must be accom pa n ied by paym ent o f 2 percent o f the fa ce am ount o f T reasu ry bills applied fo r, unless the tenders are accom pa n ied b y an express guaranty o f paym ent by an in corporated bank or trust com pany. 4. I f the language o f this tender is changed in any respect, w hich, in the opin ion o f the S ecreta ry o f the Treasu ry, is m aterial, the tender m ay be disregarded. Payment by credit through Treasury Tax and Loan Account will not be permitted. T E N T B —1393-a ( over) AT UU33 Not handled by P u b lic a tio n s D iv is io n Federal R eserve NEW Ba n k YORK RECTOR F i s c a l A g e n t o f of N ew Yo r k 4 5 , N .Y . 2-5700 t h e U n i t e d S t a t e s March 8, 1957 To All Savings Bond Issuing Agents in the Second Federal Reserve District: The U. S, Treasury Department will probably make Series E Savings Bonds available only in punched card form sometime within the next six months. The proposed card bond will not require any issuing agent to change substan tially his operating techniques or procedures and no issuing agent will need punched card machines of any kind for processing the bond. As a matter of fact, it is the present intention of the Treasury not to permit issuing agents to do any key punching in the proposed card bond or original registration stub. When the card bond is placed in use the Treasury would like to dis continue the duplicate registration stub now furnished with types "A" and "B" bond assemblies. This change would result in a savings to the Treasury of about $150,000 a year. If you are now using either of these assemblies, please indicate under either items 1 or 2 on the reverse hereof whether you need to continue to receive the duplicate registration stub. If it is decided to elim inate the duplicate stub, Treasury regulations would be modified to make optional the present requirement that issuing agents maintain adequate records of their issues and agents would not be held liable to supply registration information with respect to any bond they would issue thereafter. If you are an issuing agent using type "D" assembly (E bond with related original registration stub only attached thereto) would you prefer to receive the punched card bond in such assembly interleaved with carbon paper or without such paper? Your choice should be indicated under item 3 on the reverse. If you use punched card machines and would like to be supplied with E bonds and related original registration stubs only in continuous form, please sc indicate on the reverse under item 4 and furnish a sample of the kind of form you would prefer to receive. If a sample of the form is not available, a de scription thereof should be furnished. Please keep in mind that both the bond and original registration stub will be furnished only in standard size tabulating cards, namely, 7“3/8" x 3-1/4". Your cooperation in this matter and return of the completed question naire on or before March 22 will be greatly appreciated by the Treasury and this Bank. Very truly yours, F» T. Davis Assistant Vice President Questionnaire Relative to Proposed Punched Card Series E Savings Bond (Please check applicable items) 1. The duplicate registration stub can be eliminated. 2. We need and prefer to continue to receive the duplicate registration stub. 3- We use the type "D" assembly and prefer to receive the new punched card bond: 4. A. With carbon paper B. Without carbon paper like to be supplied with the new punched card bond and related original registration stub only in continuous form. (Note: Attach sample of form desired or describe under "Remarks".) We_JWOuld Name __ Address
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