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FEDERAL RESERVE BANK O F NEW YORK Fiscal Agent of the United States [ Cirjuu1" h 0'^ 421 Offering o f $ 1 ,6 0 0 ,0 0 0 ,0 0 0 of 91-Day Treasury B ills Dated June 21, 1956 Maturing September 20, 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 REL E A SE , M O RN ING N E W S PA PE R S, TREA SU R Y D E PA R T M E N T Thursday, June 14, 1956. Washington The Treasury 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 June 21, 1956, in the amount of $1,600,586,000, to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be dated June 21, 1956, and will mature September 20, 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, June 18, 1956. Tenders will not be received at the T reasury 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 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. 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 at the Federal Reserve Bank on June 21, 1956, in cash or other immediately available funds or in a like face amount of Treasury bills maturing June 21, 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. For purposes of taxation the amount of discount at which Treasury bills are originally sold by the United States is considered to be interest. Under 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 Treasury bills and govern the conditions of their issue. Copies of the circular may be obtained from any Federal Reserve Bank or Branch. T his Bank will receive tenders up to 1 :30 p.m.. E astern D aylight Saving time. M onday, June 18, 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 may be submitted 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 nuituring Treasury bills. W i l l i a m F. T r e i b e r , First Vice President. Results of last offering of T reasury bills (91-day b ills dated June 14, 1956, m aturing Septem ber 13, 1956) Total applied f o r ........$2,535,939,000 Total accepted ............$1,601,523,000 (includes $248,099,000 entered on a noncompetitive basis and accepted in full at the aver age price shown below) Average price.......... 99.348 Equivalent rate of discount approx. 2.581% per annum Range of accepted competitive b id s: H ig h ..................... 99.368 Equivalent rate of discount approx. 2.500% per annum L ow ....................... 99.346 Equivalent rate of discount approx. 2.587% per annum (78 percent of the amount bid for at the low price was accepted) http://fraser.stlouisfed.org/ tvvwi Federal Reserve Bank of St. Louis Federal Reserve District New York ............. Philadelphia ............ Cleveland ................. R ich m o n d ................. Total Applied for .. $ .. $2,535,939,000 Chicago ................... St. L o u is ................... Minneapolis ............ Kansas C i ty ............. San Francisco ........ T o t a l ....................... 36,366,000 1,798,080,000 29,074,000 76,155,000 21,077,000 53,563,000 278,127,000 27,292,000 11,461,000 62,702,000 29,496,000 112,546,000 Total Accepted $ 25,701,000 1,026,776,000 13,876,000 56,784,000 21,077,000 47,313,000 195,801,000 27,292,000 11,461,000 60,482,000 22,056,000 92,904,000 $1,601,523,000 ( over ) 35 N IM PO R TA N T—I f you desire to b id on a c o m p e titiv e 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 n o n c o m p e titiv e basis, fill in only th e m atu rity value in p arag rap h headed “N oncom petitive B id.” DO N O T fill in b o th p a ragraphs o n one fo rm . 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 an d th e ir custom ers’ accounts m ay subm it one ten d er for 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 w ill be furnished u p o n request. N o.............................. T E N D E R FO R 91-DAY TR EA SU RY BILLS D ated Ju n e 21, 1956 To F ed era l R eserv e B a n k o f N e w M aturing S eptem ber 20, 1956 D ated at Y ork, Fiscal A gent of the U nited States. 1956 C O M PETITIV E BID P u rsu ant to the provisions of T reas ury D epartm ent Circular No. 418, Revised, and to the provisions of the public no tice on June 14, 1956, as issued by the T reasury D epartm ent, the undersigned offers ............................................ * for a total am ount of (R a te p er 100) N O N CO M PETITIV E BID 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 June 14, 1956, as issued by the T reasury Departm ent, the undersigned offers a noncompetitive tender for a total am ount of $. (N o t to exceed $200,000) $ ....................................................... (m aturity value) of the T reasury bills therein described, or for any less am ount th a t may be aw arded, settlement th erefo r to be made at your Bank, on the date stated in the public notice, as indicated b elo w : (m aturity value) of the T reasury bills therein described, at the average price (in three deci mals) of accepted competitive bids, settlem ent therefor to be made at your Bank, on the date stated in the public notice, as indicated b elo 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 reasu ry 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 he T reasury bills for which tender is hereby made are to be dated June 21, 1956, and are to m ature on Septem ber 20, 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 ired ) (T itle ) Street Address ........................................ (C ity , T ow n or V illa g e , P. O. N o., an 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 o f C ustom er) (C ity , T o w n or 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 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 a y m e n t b y c re d it th ro u g h T re a su ry T a x a n d L o a n A c c o u n t w ill n o t b e p e rm itte d . http://fraser.stlouisfed.org/ T E N T B —1355-a Federal Reserve Bank of St. Louis ( over )
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