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FEDERAL R ESER V E BANK O F NEW YORK Fiscal A gent of the United States 956^343 £ CirCMay^,°i O ffering o f $ 1 ,6 0 0 ,0 0 0 ,0 0 0 o f 9 1 -Day Treasury B ills Dated May 10, 1956 Maturing August 9, 1956 To all Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal Reserve District: F ollow ing is the tex t of a notice published to d a y : F O R R ELEA SE, M O RN IN G N E W S PA PE R S, TREA SU R Y D E PA R T M E N T Washington Thursday, M ay 3, 1956. The T reasury Department, 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 10, 1956, in the amount of $1,600,805,000, to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be dated May 10, 1956, and will mature August 9, 1956, when the face am ount will be payable without interest. They 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 a t Federal Reserve Banks and Branches up to the closing hour, one-thirty o’clock p.m., Eastern Daylight Saving time, Monday, May 7, 1956. Tenders will not be received a t the Treasury Department, W ashington. Each tender must be for an even multiple of $1,000, and in the case of competitive tenders the price offered must be expressed on the basis of 100, with not more than three decimals, e. g., 99.925. Fractions may not be used. It is urged th at tenders be made on the printed forms and forwarded 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 permitted to submit tenders except for their own account Tenders will be received without deposit from incorporated banks and tru st companies and from responsible and recognized dealers in in vestment securities. Tenders from others m ust be accompanied by paym ent of 2 percent of the face amount of T reasury bills applied for, unless the tenders are accompanied by an express guaranty of payment by an incorporated bank o r tru st company. Immediately after the closing hour, tenders will be opened a t the Federal Reserve Banks and Branches, following which public announcement will be made by the Treasury Department of the am ount and price range of accepted bids. Those submitting tenders will be advised of the acceptance or rejection thereof. The 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 a t the average price (in three decimals) of accepted competitive bids. Settlement for accepted tenders in accordance with the bids m ust be made or completed at the Federal Reserve Bank on May 10, 1956, in cash or other immediately available funds or in a like face amount of Treasury bills m aturing May 10, 1956. Cash and exchange tenders will re ceive equal treatment. Cash adjustments 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 Treasury bills, whether interest o r 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 Treasury bills does not have any special treat ment, as such, under the Internal Revenue Code of 1954. The bills are subject to estate, inheritance, gift or other excise taxes, whether Federal or State, but are exempt from all taxation now or hereafter imposed on the principal o r interest thereof by any State, or any of the possessions of the United States, or by any local taxing authority. F or purposes of taxation the amount of discount a t which Treasury bills are originally sold by the United States is considered to be interest. U nder Sections 454(b) and 1221(5) of the Internal Revenue Code of 1954 the amount of discount at which bills issued hereunder are sold is not considered to accrue until such bills are sold, redeemed or otherwise disposed of, and such bills are excluded from consideration as capital assets. Accordingly, the owner of Treasury bills (other than life insurance companies) issued hereunder need include in his income tax return only the difference between the price paid for such bills, whether on original issue or on subsequent purchase, and the amount 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 Department Circular No. 418, Revised, and this notice, prescribe the terms of the T reasury bills and govern the conditions of their issue. Copies of the circular may be obtained from any Federal Reserve Bank o r Branch. T h is B ank will receive tenders up to 1 :30 p.m., E astern D aylight Saving time, M onday, M ay 7, 1956, a t the Securi ties D epartm ent of its H ead Office and at its Buffalo B ranch. Please use the form on the reverse side of this circular to subm it a tender, and return it in an envelope m arked “T ender for T reasury Bills.” Tenders may be subm itted by telegraph, subject to w ritten confirm ation; they may not be subm itted by telephone. Paym ent for 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 funds or in maturing Treasury bills. A l l a n S p r o u l , President. Results of last offering of T reasury bills (91-day bills dated May 3, 1956, m aturing A ugust 2, 1956) Total applied f o r ..........$2,478,745,000 Total acce p te d ............ $1,600,097,000 (includes $245,370,000 entered on a noncompetitive basis and accepted in full at the aver age price shown below) Average price.......... 99.307+Equivalent rate of discount approx. 2.741% per annum Range of accepted competitive b id s: (Excepting one tender of $700,000) H i g h ............... .. 99.317 Equivalent rate of discount approx. 2.702% per annum L o w ....................... 99.305 Equivalent rate of discount approx. 2.749% per annum (14 percent of the amount bid for at the low V v, ,, price was accepted) Federal Reserve District Total Applied for B o s to n ....................... .. New York ............... Philadelphia ............ Cleveland ................. Richmond ............... A tlanta ..................... Chicago ................... St. Louis ................. Minneapolis ............ Kansas City ............ Dallas ....................... San F ra n c is c o ........ T o t a l ....................... .. $ 27,965,000 1,817,615,000 32,386,000 65,928,000 18,762,000 36,597,000 268,005,000 19,810,000 17,168,000 38,035,000 27,740,000 108,734,000 $2,478,745,000 Total Accepted $ 17,535,000 1,091,258,000 17,386,000 57,188,000 18,512,000 34,597,000 178,992,000 19,760,000 16,668,000 36,315,000 24,504,000 87,382,000 $1,600,097,000 ( over ) 35 H IM PO R TA N T—If you desire to b id on a competitive basis, fill in ra te p er 100 and m atu rity value in p arag rap h headed “ C om petitive B id.” If you desire to b id on a noncompetitive basis, fill in only th e m atu rity value in p arag ra p h headed “N oncom petitive B id.” DO NOT fill in both paragraphs on one form. A separate ten d er m ust be used fo r each bid, except th a t banks subm itting bids on a com petitive basis for th e ir own and th e ir customers* accounts m ay subm it one tender fo r th e to tal am ount b id at each price, provided a list is attached showing th e nam e of each bidder, th e am ount b id fo r his account, and m ethod of paym ent. Form s fo r this purpose will be furnished u p o n request. N o.............................. TENDER FOR 91-DAY TREASURY BILLS M aturing A ugust 9, 1956 D ated May 10, 1956 To F e d e r a l R ese r v e B a n k of D ated a t ....................... N e w Y ork, Fiscal A gent of the U nited States. 1956 C O M PETITIV E BID P u rsu an t to the provisions of T reas ury D epartm ent C ircular No. 418, Revised, and to th e provisions of the public no tice on M ay 3, 1956, as issued by the T reasu ry D epartm ent, the undersigned offers P ursuant to the provisions of T reasury De partm ent C ircular No. 418, Revised, and to the provisions of the public notice on M ay 3, 1956, as issued by the T reasury Departm ent, the undersigned offers a noncom petitive tender .............................................* for a total am ount of for a total am ount of $. (R a te p e r 100) N O N C O M PETITIV E BID (N o t to ex ce e d $200,000) $ ....................................................... (m aturity value) of the T reasu ry bills therein described, or for any less am ount th at may be aw arded, settlement therefor to be made a t your Bank, on the date stated in the public notice, as indicated below: (m aturity value) of the T reasu ry bills therein described, at the average price (in three deci m als) of accepted com petitive bids, settlem ent 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 am ounting t o ..................... $------------------------------□ By cash or other im mediately available funds By surrender of m aturing T reasury bills am ounting t o ..................... $_____________________ □ By cash or other im mediately available funds * Price must be expressed on the basis of 100, with not more than three decimal places, for example, 99.925. T h e T reasury bills for which tender is hereby made are to be dated May 10, 1956, and are to m ature on A ugust 9, 1956. T h is tender zuill be inserted in special envelope m arked “T en d er fo r T reasury Bills.” Name of Bidder .............................................................................................................................. (P le a s e p rin t) B y ........ (O fficial s ig n a tu re req u ire d ) (T itle ) Street Address ........................................ (C ity , T ow n o r V illag e, P . O. N o., a n d S ta te ) 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 of C ustom er) (C ity , T o w n o r V illa g e , P . O. N o., a n d S ta te ) IM PO RTA N T INSTRUCTION S: 1. No tender for less than $1,000 will be considered, and each tender must 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 corporation authorized to make the tender, and the signing of the tender by an officer of the corporation will be construed as a rep resentation by him that he has been so authorized. If the tender is made by a partnership, it should be signed by a mem ber of the firm, who should sign in the form “ ........................................................................................................ a copartnership, by .......................................................................................................... a member of the firm.” 3. Tenders will be received without deposit from incorporated banks and tru st companies and from respon sible and recognized dealers in investment securities. Tenders from others m ust be accompanied by payment of 2 percent of the face amount 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 m aterial, the tender may be disregarded. Paym ent http://fraser.stlouisfed.org/ T E N T B —1349-a Federal Reserve Bank of St. Louis b y credit through Treasury Tax and Loan Account w ill not be permitted. ( over )
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