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FED ERAL RE SE R V E BANK O F N EW YO RK f Circular No. 4 3 1 2 1 I F e b ru a ry 2 3 ,1 9 5 6 J Fiscal Agent o f the United States Offering of $1,600,000,000 of 91-Day Treasury Bills D ated M arch 1, 1956 M aturing M ay 31, 1956 To all Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal Reserve District: Following is the text o f 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 u r s d a y , F e b r u a r y 2 3 , 1956. TREASURY DEPARTM ENT W a s h in g to n T h e T r e a s u r y D e p a r tm e n t , b y t h is p u b lic n o t ic e , in v it e s te n d e r s f o r $1,600,000,000, o r t h e r e a b o u ts , o f 9 1 -d a y T r e a s u r y b ills , f o r c a s h a n d in e x c h a n g e f o r T r e a s u r y b ills m a t u r in g M a r c h 1, 1956, in t h e a m o u n t o f $ 1 ,601 ,218 ,000 , t o b e is s u e d o n a d is c o u n t b a s is u n d e r c o m p e t it iv e a n d n o n c o m p e t it iv e b id d in g a s h e r e in a fte r p r o v id e d . T h e b ills o f t h is s e r ie s w ill b e d a te d M a r c h 1, 1956, a n d w ill m a tu r e M a y 31, 1956, w h e n th e fa c e a m o u n t w ill b e p a y a b le w it h o u t in te r e s t. T h e y w ill b e is s u e d in b e a r e r f o r m o n l y , a n d in d e n o m in a t io n s o f $1,000, $ 5 ,000 , $10,000, $ 1 00,0 00, $5 00,0 00 a n d $1,000 ,000 (m a t u r it y v a lu e ) . T e n d e r s w ill b e r e c e iv e d a t F e d e r a l R _eserve B a n k s a n d B r a n c h e s u p to th e c lo s i n g h o u r , o n e - t h ir t y o ’ c l o c k p .m ., E a s t e r n S ta n d a r d tim e , M o n d a y , F e b r u a r y 2 7 , 1956. T e n d e r s w ill n o t b e r e c e iv e d at th e T r e a s u r y D e p a r t m e n t , W a s h i n g t o n . E a c h t e n d e r m u s t b e f o r a n e v e n m u lt ip le o f $1 ,000 , a n d in t h e c a s e o f c o m p e t it iv e t e n d e r s t h e p r ic e o f f e r e d m u s t b e e x p r e s s e d o n t h e b a sis o f 100, w it h n o t m o r e th a n t h r e e d e c im a ls , e. g ., 99 .925 . F r a c t io n s m a y n o t b e u s e d . I t is u r g e d th a t t e n d e r s b e m a d e o n th e p r in t e d f o r m s a n d f o r w a r d e d in t h e s p e c ia l e n v e lo p e s w h ic h w ill b e s u p p lie d b y F e d e r a l R e s e r v e B a n k s o r B r a n c h e s o n a p p lic a t io n t h e r e fo r . O t h e r s th a n b a n k in g in s tit u t io n s w ill n o t b e p e r m it t e d t o s u b m it t e n d e r s e x c e p t f o r th e ir o w n a c c o u n t . T e n d e r s w i ll b e r e c e iv e d w it h o u t d e p o s it f r o m in c o r p o r a t e d b a n k s a n d t r u s t c o m p a n ie s a n d f r o m r e s p o n s ib le a n d r e c o g n i z e d d e a le r s in in v e s t m e n t s e c u r it ie s . T e n d e r s f r o m o t h e r s m u s t b e a c c o m p a n ie d b y p a y m e n t o f 2 p e r c e n t o f t h e fa c e a m o u n t o f T r e a s u r y b ills a p p lie d f o r , u n le s s t h e t e n d e r s a r e a c c o m p a n ie d b y a n e x p r e s s g u a r a n t y o f p a y m e n t b y a n in c o r p o r a t e d b a n k o r t r u s t c o m p a n y . I m m e d ia t e ly a fte r t h e c l o s i n g h o u r , te n d e r s w i l l b e o p e n e d a t th e F e d e r a l R e s e r v e B a n k s a n d B r a n c h e s , f o l l o w i n g w h ic h p u b lic a n n o u n c e m e n t w ill b e m a d e b y th e T r e a s u r y D e p a r t m e n t o f th e a m o u n t a n d p r ic e r a n g e o f a c c e p t e d b id s . T h o s e s u b m it t in g t e n d e r s w ill b e a d v is e d o f th e a c c e p t a n c e o r r e je c t io n t h e r e o f. T h e S e c r e t a r y o f th e T r e a s u r y e x p r e s s ly r e s e r v e s t h e r ig h t t o a c c e p t o r r e je c t a n y o r a ll t e n d e r s , in w h o le o r in p a r t, a n d h is a c t io n in a n y s u c h r e s p e c t s h a ll b e fin a l. S u b je c t t o t h e s e r e s e r v a t io n s , n o n c o m p e t it iv e t e n d e r s f o r $ 2 00,0 00 o r le s s w it h o u t s t a t e d p r ic e f r o m a n y o n e b id d e r w ill b e a c c e p t e d in fu ll a t th e a v e r a g e p r ic e ( i n t h r e e d e c i m a l s ) o f a c c e p t e d c o m p e t it iv e b id s . S e tt le m e n t f o r a c c e p t e d t e n d e r s in a c c o r d a n c e w ith t h e b id s m u s t b e m a d e o r c o m p le t e d a t th e F e d e r a l R e s e r v e B a n k o n M a r c h 1, 1956, in c a s h o r o t h e r im m e d ia t e ly a v a ila b le fu n d s o r in a lik e fa c e a m o u n t o f T r e a s u r y b ills m a t u r in g M a r c h 1, 1956. C a s h a n d e x c h a n g e t e n d e r s w i ll r e c e iv e e q u a l tr e a tm e n t. C a s h a d ju s t m e n t s w ill b e m a d e f o r d iffe r e n c e s b e t w e e n th e p a r v a lu e o f m a t u r in g b ills a c c e p t e d in e x c h a n g e a n d t h e is s u e p r i c e o f t h e n e w b ills . T h e i n c o m e d e r iv e d f r o m T r e a s u r y b ills , w h e t h e r in te r e s t o r g a in f r o m th e s a le o r o t h e r d is p o s it io n o f th e b ills , d o e s n o t h a v e a n y e x e m p t io n , a s s u c h , a n d l o s s f r o m th e s a le o r o t h e r d is p o s it io n o f T r e a s u r y b ills d o e s n o t h a v e a n y s p e c ia l t r e a t m e n t, a s s u c h , u n d e r t h e I n t e r n a l R e v e n u e C o d e o f 1954. T h e b ills a re s u b je c t t o e s ta te , in h e r it a n c e , g i f t o r o t h e r e x c is e ta x e s , w h e th e r F e d e r a l o r S ta te , b u t a r e e x e m p t f r o m a ll t a x a t io n n o w o r h e r e a fte r im p o s e d o n th e p r in c ip a l o r in t e r e s t t h e r e o f b y a n y S ta te , o r a n y o f t h e p o s s e s s io n s o f th e U n it e d S ta te s , o r b y a n y l o c a l t a x in g a u th o r it y . F o r p u r p o s e s o f t a x a t io n th e a m o u n t o f d is c o u n t a t w h ic h T r e a s u r y b ills a r e o r ig in a lly s o ld b y t h e U n it e d S ta te s is c o n s id e r e d t o b e in t e r e s t U n d e r S e c t io n s 4 5 4 ( b ) a n d 1 2 2 1 (5 ) o f t h e I n t e r n a l R e v e n u e C o d e o f 1954 t h e a m o u n t o f d is c o u n t at w h ic h b ills is s u e d h e r e u n d e r a re s o ld is n o t c o n s id e r e d t o a c c r u e u n til s u c h b ills a r e s o ld , r e d e e m e d o r o t h e r w is e d is p o s e d o f , a n d s u c h b ills a r e e x c lu d e d f r o m c o n s id e r a t io n a s c a p ita l a s s e ts . A c c o r d i n g l y , th e o w n e r o f T r e a s u r y b ills ( o t h e r th a n life in s u r a n c e c o m p a n ie s ) is s u e d h e r e u n d e r n e e d in c lu d e in h is in c o m e t a x re tu rn o n ly th e d iffe r e n c e b e t w e e n t h e p r ic e p a id f o r su ch b ills , w h e t h e r o n o r ig in a l issu e o r o n s u b s e q u e n t p u r c h a s e , a n d th e a m o u n t a c t u a lly r e c e iv e d e it h e r u p o n sa le o r r e d e m p t io n a t m a t u r it y d u r in g th e t a x a b le y e a r f o r w h ic h th e r e tu r n is m a d e , a s o r d in a r y g a in o r lo s s . T r e a s u r y D e p a r t m e n t C ir c u la r N o . 418, R e v is e d , a n d t h is n o t ic e , p r e s c r ib e t h e t e r m s o f t h e T r e a s u r y b ills a n d g o v e r n t h e c o n d i t i o n s o f th e ir issu e . C o p ie s o f th e c ir c u la r m a y b e o b t a in e d fr o m a n y F e d e r a l R e s e r v e B a n k o r B r a n c h . This Bank will receive tenders up to 1 :30 p.m., Eastern Standard time, Monday, Februaiy 27, 1956, at the Securities Department o f its Head 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 written confirmation; they may not be submitted by telephone. Payment fo r the Treasury bills cannot be made by credit through the Treasury Tax and Loan Account. Settlement must be made in cash or other immediately available funds or in maturing Treasury bills. A l l a n S p r o u l , President. Results o f last offering o f Treasury bills (91-day bills dated February 23, 1956, maturing May 24, 1956) T otal applied f o r ----- $2,450,122,000 T ota l a c c e p te d ............. $1,601,349,000 (includes $241,424,000 entered on a noncompetitive basis and accepted in full at the average price shown below ) A vera ge p r i c e ___ 99.386 Equivalent rate o f discount approx. 2.42995- per annum Range o f accepted com petitive b id s : (excep tin g tw o tenders totaling $300,000) H igh ................... 99.403 Equivalent rate o f discount approx. 2.362% per annum L o w ..................... 99.384 Equivalent rate o f discount approx. 2.437% per annum (96 percent o f the amount bid fo r at the low price was accepted) Federal Reserve District Boston ............................ . . . N ew Y o r k ..................... . Philadelphia ................. C le v e la n d ....................... Richmond ..................... Atlanta ............................ Chicago ......................... St. Louis ......................... M inneapolis ................. Kansas C ity ............. D a l l a s ............. .................. San Francisco ........... T o t a l ..................... Total A pplied for $ 26,887,000 1,697,957,000 41,927,000 87,145,000 22.982,000 37,135,000 261,757,000 26,522,000 10.311,000 52,576,000 34,324,000 130,599,000 $2,450,122,000 Total Accepted $ 26,387,000 967,305,000 18,901,000 81,802,000 22,982,000 34,447,000 193,247,000 26,188,000 10,011,000 48,456,000 48,244,000 123,379,000 $1,601,349,000 ( over) 34 X IM PORTANT— I f you desire to bid on a c o m p e titiv e basis, fill in rate per 100 and maturity value in paragraph headed "Competitive Bid.” I f you desire to bid on a n o n c o m p e titiv e basis, fill in only the m aturity value in paragraph headed "Noncompetitive Bid.” DO N O T fill in b o th para grap h s on one fo r m . A separate tender must be used fo r each bid, except that banks submitting bids on a competitive basis for their own and their customers’ accounts may submit one tender for the total amount bid at each price, provided a list is attached showing the name o f each bidder, the amount bid fo r his account, and method o f payment. Forms for this purpose will be furnished upon request. No.......................... TENDER FOR 9 1-D A Y TREASURY BILLS Dated March 1, 1956 To Maturing May 31, 1956 Dated at F ederal R eserve B a n k of N e w Y o rk , Fiscal Agent o f the United States. 1956 COMPETITIVE BID NONCOMPETITIVE BID Pursuant to the provisions o f Treasury Department Circular No. 418, Revised, and to the provisions o f the public notice on February 23, 1956, as issued by the Treasury Department, the Pursuant to the provisions o f Treasury Department Circular No. 418, Revised, and to the provisions o f the public notice on February 23, 1956, as issued by the Treasury Department, the undersigned offers a noncompetitive tender undersigned offers for a total amount o f $ ............................................ (R ate per 100) total amount o f $ .......... ............... . (maturity value) o f the Treasury 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 o f maturing Treasury bills (N ot to exceed $200,000) (maturity value) of the Treasury 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 o f maturing Treasury bills amounting to .................. $_____________________ amounting to .................. $_____________________ □ □ By cash or other immediately available funds By cash or other immediately available funds * P rice m ust be exp ressed on the basis o f 100, w ith not m o re than th ree decim al places, f o r exam ple, 99.925. The Treasury bills for which tender is hereby made are to be dated March 1, 1956, and are to mature on May 31, 1956. This tender will be inserted in special envelope marked “ Tender fo r Treasury Bills” N a m e o f B id d er ........................................................................................................................................... (Please print) B y. (Official signature required) (T id e ) S treet A d d ress (C ity, T ow n or V illage, P . O . N o., and State) If this tender is submitted by a bank for the account of a customer, indicate the customer’s name on line below: (N am e o f Customer) (C ity, T ow n or V illage, P. O . N o., and State) IM PORTANT INSTRUCTIONS: 1. N o ten der fo r less than $1,000 w ill be con sid ered , a n d each ten der m u st b e fo r an even m u ltip le o f $1,000 (m a tu rity v a lu e ). 2. I f th e p erson m a k in g th e ten der is a co rp o ra tio n , th e ten der sh ou ld b e sign ed b y an officer o f the c o rp o ra tion a u th orized t o m a ke the tender, and th e sig n in g o f th e ten der b y an o ffice r o f th e corp o ra tio n w ill be con stru ed as a represen tation b y h im that he has been s o auth orized. I f the ten d er is m ade b y a partnersh ip, it sh ou ld b e sig n e d b y a m em b er o f the firm , w h o sh ou ld sign in the fo r m “ ....................................................................................................., a cop artn ersh ip , b y .......................................................................................................................................... a m em b er o f th e firm .” 3. T e n d e rs w ill be receiv ed w ith ou t d ep osit fro m in corp ora ted banks and trust com p a n ies and fro m re sp o n sible a n d r e co g n iz e d dealers in investm ent securities. T en d ers fr o m o th ers m u st be a cco m p a n ie d b y p a y m en t o f 2 p ercen t o f the fa ce a m o u n t o f T r e a s u ry bills applied fo r , unless th e tenders are a ccom p a n ied b y an exp ress gu a ra n ty o f paym ent b y an in co rp o ra te d b a n k o r trust com p a n y . 4. I f th e language o f this ten der is ch a n g ed in a n y respect, w h ich , in th e op in ion o f the S ecreta ry o f the T re a s u ry , is m aterial, th e ten der m a y b e disregarded. P a y m en t b y c r e d it th r o u g h T r e a s u r y T a x and L oan A c c o u n t w ill n o t b e p e r m itte d . http://fraser.stlouisfed.org/ T E N T B — 1339-a (O V E R ) Federal Reserve Bank of St. Louis
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