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FED ERA L RESER V E BANK O F N EW YORK Fiscal Agent of the United States f C ircular N o 4 3 3 1 1 I A pril 26, 1956 J Offering o f $ 1 ,6 0 0 ,0 0 0 ,0 0 0 o f 91-D ay Treasury B ills Dated May 3, 1956 Maturing August 2, 1956 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 : TREA SU RY D E PA R T M E N T W ashington 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, April 26, 1956. 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 May 3, 1956, in the am ount of $1,600,505,000, to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. T he bills of this series will be dated May 3, 1956, and will m ature A ugust 2, 1956, when the face am ount will be payable w ithout interest. T hey 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). Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty o’clock p.m., E astern D aylight Saving tim e, Monday, April 30, 1956. T enders will not be received at the T reasury Departm ent, W ashington. Each tender m ust be for an even m ultiple of $1,000, and in the case of competitive tenders the price offered m ust be expressed on the basis of 100, w ith not m ore than three decimals, e. g., 99.925. Fractions may not be used. It is urged that tenders be made 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. T enders 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 made 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 without stated price from any one bidder will be accepted in full at the average price (in three decim als) of accepted competitive bids. Settlem ent for accepted tenders in accordance with the bids m ust be made o r completed at the Federal Reserve Bank on May 3, 1956, in cash or other immediately available funds or in a like face am ount of T reasury bills m aturing May 3, 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. The income derived from T reasury bills, w hether interest or gain from the sale or oth er 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 o r other excise taxes, w hether Federal o r 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 or purposes of taxation the ? m 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 at 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 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 redemption 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., E a ste rn D ay lig h t S aving tim e, Monday, April 30, 1956, at the Securities Department of 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 T reasury Bills.” Tenders may be submitted by telegraph, sub ject to written confirm ation; 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 l a n S p r o u l , President. R e s u lts o f la s t o ffe rin g o f T r e a s u r y bills ( 9 1 - d a y b ills d a te d A p ril 2 6 , 1 9 5 6 , m a tu r in g J u ly 2 6 , 1 9 5 6 ) Total applied for . .. $2,526,674,000 Total accepted ........ $1,601,671,000 (includes $268,315,000 entered on a noncom petitive basis and accepted in full a t the average price shown below) Average price . . . 99.295-)- Equivalent rate of discount approx. 2.788% per annum Range of accepted competitive bids: (excepting two tenders totaling $432,000) H igh ................ 99.300 Equivalent rate of discount approx. 2.769% per annum L o w .................. 99.293 Equivalent rate of discount approx. 2.797% per annum (31 percent of the am ount bid for at the low price was accepted) Federal Reserve District Boston ...................... New Y o r k ................ Philadelphia ............ Cleveland .................. Richmond ................ A tlanta ...................... Chicago .................... St. Louis .................. Minneapolis ............ Kansas City ............ Dallas ........................ San F ra n c is c o .......... Total Applied fo r $ 37,827,000 1,829,073,000 35,132,000 70,288,000 14,862,000 26,500,000 267,703,000 28,339.000 15.645.000 51,078,000 34,362,000 115,865.000 Total Accepted $ 23,327,000 1,087,183,000 16,136,000 65,095,000 13,871,000 20,570,000 179,681,000 22,600,000 15,507,000 39,268,000 26,812,000 91,621,000 Total .......... $2,526,674,000 $1,601,671,000 ( over) 35 G 9 9 * * T end ers w ill be received u p to 1 :3 0 p .m ., E astern D a y lig h t S a v in g tim e, M on d ay, A p ril 3 0 , 1 9 5 6 IM P O R T A N T — I f y o u d esire to bid on a co 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 o m p etitiv e B id.” I f y o u desire to b id 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 separate ten d e r m u st b e used fo r ea c h b id , 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 fo r th e ir o w n an d th e ir custom 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 bid 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 b id 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 p urpose w ill be fu rn ish ed u p on req u est. No. TENDER FOR 91 -DAY TREASURY BILLS D a te d M ay 3, 1956 To F ed era l R eserv e B a n k of M a tu rin g A u g u s t 2 , 1956 N ew Dated at Y ork, Fiscal Agent of the United 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 Treasury Departm ent Circular No. 418, Revised, and to the provisions of the public notice on April 26, 1956, as issued by the T reasury Department, the Pursuant to the provisions of Treasury Department Circular No. 418, Revised, and to the provisions of the public notice on April 26, 1956, as issued by the T reasury Department, the undersigned offers a noncompetitive tender undersigned o f f e r s .........................................* for a (R a te p e r 100) total amount of $ .................................... (m aturity value) of the T reasury bills therein described, or fo r 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 for a total amount o f $ ............................................... (N o t to exceed $200,000) (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 m aturing Treasury bills amounting to ................... $____________________ amounting to ................... $____________________ □ □ By cash o r other immediately available funds By cash or other immediately available funds *Price must be expressed on the basis of 100, with not more than three decimal places, fo r example, 99.925. T he T reasury bills for which tender is hereby made are to be dated M ay 3, 1956, and are to mature on A ugust 2, 1956. T his tender will be inserted in special envelope marked “Tender fo r Treasury B ills” N am e of Bidder ................................................................................... (P lease p rin t) By. (Official signature required) (T itle) Street Address (C ity, Tow n or V illage, P . O . No., and State) If this tender is subm itted by a bank for the account of a custom er, indicate the custom er’s nam e on line below: (N am e o f C ustom er) (C ity, Tow n or V illage, P . O . N o., an d 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 m aking the tender is a corporation, the tender should be signed by an officer of the corpora tion authorized to make 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 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. 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 a y m e n t b y c re d it th r o u g h T re a su ry T a x a n d Loan A c c o u n t w ill n o t be p e rm itte d . http://fraser.stlouisfed.org/ T E N T B — 1348-a (OVER) Federal Reserve Bank of St. Louis
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