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FEDERAL
RESERVE
BANK O F N EW
YORK
Fiscal Agent of the United States
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O ffering o f $ 1 ,6 0 0 ,0 0 0 ,0 0 0 o f 91-D ay Treasury B ills
Dated May 31, 1956
Maturing August 30, 1956
To all Incorporated Banks and Trust Companies, and Others
Concerned, in the Second Federal Reserve District:
Follow ing is the text of a notice published to d a y :
F O R RELEA SE, M O RN ING N E W SPA PE R S,
TREA SU R Y D E PA R T M E N T
Thursday, May 24, 1956.
Washington
The T reasury Department, by this public notice, invites tenders for $1,600,000,000, or thereabouts, of 91-day Treasury
bills, for cash and in exchange for Treasury bills maturing May 31, 1956, in the amount of $1,604,441,000, to be issued on
a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be dated
May 31, 1956, and will mature August 30, 1956, when the face amount 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 at Federal Reserve Banks and Branches up to the closing hour, one-thirty o’clock p.m., Eastern
Daylight Saving time, Monday, May 28, 1956. Tenders will not be received at the Treasury Department, Washington. 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 that 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.
Others 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 payment of 2 percent of the face amount of Treasury bills
applied for, unless the tenders are accompanied by an express guaranty of payment by an incorporated bank o r trust company.
Immediately after the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, following which
public announcement will be made by the Treasury Department of the amount and price range of accepted bids. Those
submitting tenders will be advised of the acceptance or rejection thereof. The Secretary of the Treasury 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 decimals) of accepted competitive bids. Settlement for accepted tenders in accordance
with the bids must be made or completed a t the Federal Reserve Bank on May 31, 1956, in cash or other immediately
available funds o r in a like face amount of Treasury bills maturing May 31, 1956. Cash and exchange tenders will re
ceive equal treatment. Cash adjustments will be made for differences between the par value of maturing bills accepted in
exchange and the issue price of the new bills.
The income derived from Treasury bills, whether interest or 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 or 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 T reasury 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.
Treasury Department Circular No. 418, Revised, and this notice, prescribe the terms of the Treasury bills and govern
the conditions of their issue. Copies of the circular may be obtained from any Federal Reserve Bank o r Branch.
T his B ank will receive tenders up to 1 :30 p.m., E astern D aylight Saving time, M onday, M ay 28, 1956, at the Securi
ties Departm ent of its Head Office and at its Buffalo Branch. Please use the form on the reverse side of this circular
to subm it a tender, and return it in an envelope m arked “Tender for T reasury Bills.” Tenders m ay be subm itted
by telegraph, subject to written confirmation; they may not be submitted 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 24, 1956, m aturing August 23, 1956)
Total applied f o r ........$2,332,028,000
Total accepted ............$1,600,142,000 (includes $224,238,000
entered on a noncompetitive basis
and accepted in full at the aver
age price shown below)
Average price.......... 99.317-}-Equivalent rate of discount
approx. 2.702% per annum
Range of accepted competitive b id s:
H ig h ..................... 99.323 Equivalent rate of discount
approx. 2.678% per annum
Low....................... 99.314 Equivalent ra te of discount
approx. 2.714% per annum
(7 percent of the amount bid for at the low
price was accepted)
Federal Reserve
District
Boston ....................... ..
New York ...............
Philadelphia ...........
Cleveland .................
Richmond .................
Total
Applied for
$
C h ica g o .....................
St. Louis .................
M in n eap o lis.............
Kansas City ............
Dallas .......................
San Francisco ........
25,948,000
1,668,673,000
38,391,000
105,791,000
17,120,000
25,745,000
239,869,000
24,361,000
9,206,000
35,566,000
50,105,000
91,253,000
T o t a l .......................
$2,332,028,000
Total
Accepted
$
15,948,000
1,046,248,000
21,391,000
101,791,000
17,120,000
24,350,000
180,009,000
24,361,000
8,720,000
34,566,000
43,105,000
82,533,000
$1,600,142,000
(o\
35 K
IM PO R TA N T—If you desire to bid on a com petitive basis, fill in ra te per 100 and m aturity
value in p aragraph headed “C om petitive B id.” If you desire to bid on a noncom petitive
basis, fill in only th e m aturity value in p arag rap h headed “N oncom petitive B id.” DO
N O T 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 custom ers’
accounts m ay subm it one ten d er for th e total 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 upon request.
N o . .........................
T E N D E R FOR 91-DAY TR EA SU RY BILLS
D ated May 31, 1956
To
F ed era l R eserv e B a n k o f N e w
M aturing August 30, 1956
Dated at
Y ork,
Fiscal A gent of the U nited States.
1956
CO 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 the provisions of the public no
tice on May 24, 1956, as issued by the
T reasury 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 24,
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 $
(K a te per 100)
N O N CO M PETITIV E B ID
(N o t to exceed $200,000)
$ ....................................................... (m aturity value)
of the T reasury bills therein described, or for
any less am ount th at may be aw arded, settlement
therefor to be made at your Bank, on the date
stated in the public notice, as indicated below :
(m aturity value) of the T reasury bills therein
described, at the average price (in three deci
m als) of accepted com petitive bids, settlement
therefor to be made at your Bank, on the date
stated in the public notice, as indicated belo w :
□
□
By surrender of m aturing T reasury bills
am ounting t o ..................... $------------------------------□
By cash or other immediately available funds
By surrender of m aturing T reasury bills
am ounting t o ..................... $_____________________
□
By cash or other immediately 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 M ay 31, 1956, and are to
m ature on A ugust 30, 1956.
This tender will be inserted in special envelope marked “Tender for Treasury Bills.”
Name of Bidder .................................... ........................................................................................
(P le a s e p rin t)
By
(Official s ig n a tu re req u ire d )
(T itle )
Street Address
(C ity , T ow n or V*Hag 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:
(C ity , T ow n o r V illa g e , P. O. N o., a n d S ta te )
(N am e of C ustom er)
IM PORTANT IN STRU CTIO N S:,
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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 trust companies and from respon
sible and recognized dealers in investment securities. Tenders from others must 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 trust company.
4. If the language of this tender is changed in any respect, which, in the opinion of the Secretary of the
Treasury, is material, the tender may be disregarded.
P aym ent b y credit through Treasury Tax and Loan A ccount w ill n o t be perm itted.
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