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FEDERAL RESERVE BANK OF NEW YORK Fiscal Agent o f the United States J” C ircular No. 4 4 4 3 L M arch 28,1957 T J O ffering o f $ 1 ,6 0 0 ,0 0 0 ,0 0 0 o f 92-D ay Treasury B ills D ated April 4, 1957 M aturing July 5, 1957 T o all Incorporated B anks and Tru st Companies, and Others Concerned, in the Second Federal R eserve D istrict: F ollow in g is the text of a notice published today: 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 ursd ay, M a rch 28, 1957. TREASU RY DEPARTM EN T W a sh in gton T h e T reasu ry D epartm ent, by this pu blic notice, invites tenders fo r $1,600,000,000, or b ills, for cash and in exch a n ge for T reasu ry bills m aturing A p ril 4, 1957, in the am ount a discou nt basis under com petitive and n on com petitive b idd ing as h ereinafter provided . T he A p ril 4, 1957, and w ill mature July 5, 1957, when the fa ce am ount w ill be payable issued in bearer form only, and in denom inations o f $1,000, $5,000, $10,000, $100,000, $500,000 thereabouts, o f 92-day T reasu ry o f $1,599,988,000, to be issued on bills o f this series w ill be dated w ithout interest. T h ey w ill be and $1,000,000 (m aturity v a lu e ). T en ders w ill be received at Federal R eserve Banks and Branches up to the closin g hour, on e-thirty o ’c lo ck p.m., E astern S tandard time, M on day, A p ril 1, 1957. T en ders w ill not be received at the T reasu ry Department, W a sh in gton . E ach tender must be fo r an even m ultiple o f $1,000, and in the case o f com petitive tenders the price offered must be expressed on the basis o f 100, w ith n ot m ore than three decim als, e.g., 99.925. F raction s m ay not be used. It is urged that tenders be m ade on the printed form s and forw a rd ed in the sp ecia l envelopes w hich w ill be supplied b y F ed eral R eserve Banks or B ranches on application therefor. O thers than banking institutions w ill not be perm itted to subm it tenders excep t fo r their ow n account. 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 in vestm ent securities. T en ders from others must be accom panied by paym ent o f 2 percent o f the face am ount o f T reasu ry bills applied fo r, unless the tenders are accom panied by an express guaranty o f paym ent 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 p u blic announcem ent w ill be made by the T reasu ry D epartm ent o f the am ount and price range o f a ccepted bids. T h ose subm itting tenders w ill be advised o f the acceptance or rejection thereof. T he Secretary o f the T reasu ry exp ressly reserves the righ t to accep t o r reject any or all tenders, in w hole o r in part, and his action in any such respect shall be final. S u bject t o these reservations, noncom petitive tenders fo r $200,000 or less w ith ou t stated price from any one bidder w ill be accepted in fu ll at the average price (in three decim a ls) o f accepted com petitive bids. Settlem ent fo r accepted tenders in a ccord a n ce w ith the bids must be made or com pleted at the Federal R eserve Bank on A p ril 4, 1957, in cash or oth er im m ediately available funds o r in a like face am ount o f T reasu ry bills m aturing A p ril 4, 1957. Cash and exchange 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 an ge and the issue price o f the new bills. T h e in com e derived from T reasu ry bills, w hether interest or gain from the sale or oth er disp 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 ode o f 1954. T he b ills are subject to estate, inheritance, g ift or oth er excise taxes, w hether F ed eral o r State, but are exem pt from a ll taxation n o w 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 b y any loca l ta x in g authority. F o r purposes o f taxation the am ount o f discou nt at w hich T reasu ry bills are o rigin a lly s o ld by the U nited States is con sidered to be interest. U nder Sections 4 5 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 sid ered to accrue until such bills are sold, redeem ed or oth erw ise disposed of, and such bills are exclu ded from con sideration as capital assets. A cco rd in g ly , the ow ner o f T reasu ry bills (oth er than life insurance com pa n ies) issued hereunder need include in his incom e ta x return on ly the difference between the price paid 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 or redem ption at m aturity du rin g the taxable year fo r w hich the return is m ade, as ord in a ry ga in or loss. T re a su ry Departm ent C ircu lar N o. 418, Revised, and this notice, prescribe the terms o f the T rea su ry bills and govern the con d ition s o f their issue. Copies o f the circu la r m ay be obtain ed from any Federal Reserve Bank or Branch. This Bank will receive tenders up to 1 :30 p.m., Eastern Standard time, M onday, A pril 1, 1957, at the Securi ties Department o f its H ead 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 not be submitted by telephone. P a ym en t jo r the T reasury bills cannot be made by credit through the T reasury T a x and L oan A ccou n t. im m ediately available funds or in maturing T rea su ry bills. S ettlem en t m ust be made in cash or other A R esu lts o f last o ffe r in g o f T r e a su ry h ills T ota l applied for $2,647,593,000 $1,600,054,000 (inclu des $347,220,000 entered on a n oncom petitive basis and accepted in fu ll at the aver age price show n b elow ) Range o f accepted com petitive b id s : H igh ....................... 99.243 E quivalent rate o f discount approx. 2.995% per annum L o w ......................... 99.229 E quivalent rate o f discount approx. 3.050% per annum A v e r a g e ................. 99.233 E quivalent rate o f discount approx. 3.034% per annum H ayes , President. (9 1 -d a y b ills d ated M a r c h 2 8 , 1 9 5 7 , m a tu r in g Ju n e 2 7 , 1 9 5 7 ) T ota l accepted . . . (3 percent o f the am ount bid fo r at the low price w as accepted) lfred Federal R escrz’e District B oston ......................... . . N ew Y o rk ................. Philadelphia ............. C leveland ................... R ich 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 Applied jo r $ 47,126,000 1,829,027,000 40,300,000 80,319.000 22,176,000 47,587,000 303,043,000 34,224,000 14,804,000 54,117,000 45,349,000 129,521.000 $2,647,593,000 Total A ccepted $ 35,876,000 919,661,000 24,425.000 49,343,000 20,837,000 34,263.000 284.130,000 33,830,000 14,804,000 48,080,000 34,033,000 100,772,000 $1,600,054,000 Please note that th e current offering is fo r 92-day Treasury bills. ( over) 37 C IM P O R T A N T — Please note that this offering is fo r 92-day Treasury bills, which will mature on Friday, July 5, 1957, because Thursday, July 4, w ill be Independence Day. IM P O R T A N T — I f you desire to bid on a com p etitive basis, fill in rate per 100 and maturity value in paragraph headed “ C om petitive B id .” I f you desire to b id on a n on com petitive basis, fill in on ly the maturity 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 ow n and their customers’ accounts may subm it one tender fo r the total amount b id at each price, provided a list is attached showing the name o f each bidder, the amount bid fo r his account, and m ethod o f paym ent. Forms fo r this purpose w ill be furnished u pon request. N o. T E N D E R F O R 9 2 -D A Y T R E A S U R Y B IL L S Dated A p ril 4, 1957 To F e d e ra l R eserve B ank o f N ew Maturing July 5, 1957 Dated a t ....................... Y ork, Fiscal Agent o f the United States. 1957 C O M P E T IT IV E BID Pursuant to the provisions o f Treas ury Department Circular No. 418, Revised, and to the provisions o f the public no tice on March 28. 1957. as issued by the Treasury Department, the undersigned offers N O N C O M P E T IT IV E BID Pursuant to the provisions o f Treasury De partment Circular No. 418. Revised, and to the provisions o f the public notice on March 28. 1957, as issued by the Treasury Department, the undersigned offers a noncompetitive tender ............................................ * for a total amount of fo r a total amount o f $ .............................................. (Rate per 100) (Not to exceed $200,000) $ ....................................................... (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 : □ (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 ..................... $----------------------------------□ By surrender o f maturing Treasury bills amounting t o ..................... $_______________________ By cash or other immediately available funds □ By cash or other immediately available funds * P r ice must be expressed on the basis o f 100, w ith not m ore than three decimal places, fo r exam ple, 99.925. T he Treasury bills for which tender is hereby made are to be dated A pril 4, 1957, and are to mature on July 5, 1957. This tender will be inserted in special envelope marked “ Tender fo r Treasury Bills.” Nam e o f B id der ........................................................................................................................................... (Please print) By (Official signature required) Street A d d ress (Title) ...................................... (City, Town or Village, P. O. No., and State) If this tender is submitted by a bank for the account of (Name of Customer) a customer, indicate the customer’s name on line below : (City, Town or Village, P. O. No., and State) IM P O R T A N T IN STR U CTIO 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 aturity va lu e). 2. I f the person m akin g the tender is a corp ora tion , the tender should be signed b y an officer o f the corp ora tion 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 by him that he has been so authorized. I f the ten der is made by a partnership, it should be sign ed by a m em ber o f the firm, w ho should sign in the form “ ............................................................................................................... a copartn ersh ip, 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 fro m others must be accom panied b y 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 panied by an express guaranty o f paym ent by an in corpora ted bank or trust com pany. 4. I f the language o f this tender is changed in any respect, w hich, in the opinion o f the Secretary o f the T reasu ry, is m aterial, the tender m ay be disregarded. P aym ent b y credit through Treasury Tax and Loan A ccou n t w ill n ot b e perm itted. T E N T B — 1396-a (O V ER )
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