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FED ERA L RESERV E BANK O F NEW YORK r C ircu lar No. 4 3 4 4 1 I J u n e 28.1056 J Fiscal Agent of the United States Offering o f $ 1 ,6 0 0 ,0 0 0 ,0 0 0 o f 91-Day Treasury B ills Dated July 5, 1956 Maturing October 4, 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 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 , TREA SU RY D E PA R TM EN T Thursday, June 28, 1956. W ashington 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 July 5, 1956, in the am ount of $1,600,109,000, to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be dated July 5, 1956, and will m ature O ctober 4, 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). T enders 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, July 2, 1956. T enders will not be received at the T reasury D epartment, W ashington. Each tender m ust be for an even multiple 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 more than three decimals, e. g., 99.925. Fractions may not be used. I t 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. O thers than banking institutions will not be perm itted to subm it 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 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. Immediately 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. 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 at the average price (in three decimals) of accepted competitive bids. Settlem ent for accepted tenders in accordance with the bids m ust be made or completed a t the Federal Reserve Bank on July 5, 1956, in cash or other immediately available funds or in a like face am ount of T reasury bills m aturing July 5, 1956. Cash and exchange tenders will re ceive 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. T he income derived from T reasury bills, w hether 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 T reasury bills does not have any special treat ment, as such, under the Internal Revenue Code of 1954. T he bills are subject to estate, inheritance, gift or other excise taxes, w hether 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 U nited States, or by any local taxing authority. For purposes of taxation the amount 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 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, 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., Eastern Daylight Saving time, Monday, July 2, 1956, at the Securi ties Department of its H ead 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, subject to written confirmation; 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. W il l ia m F. T r e ib e r , First Vice President. R esu lts o f la st offerin g o f T rea su ry bills ( 9 1 -d a y b ills d a ted J u n e 2 8 , 1 9 5 6 , m a tu rin g Septem ber 2 7 , 1 9 5 6 ) T otal applied f o r ......... $2,318,478,000 T otal ac c e p te d ............. $1,600,858,000 (includes $237,756,000 entered on a noncompetitive basis and accepted in full at the average price shown below) Average price....... 99.359-(- Equivalent rate of discount approx. 2.535% per annum Range of accepted competitive bids: Equivalent rate of discount H ig h ................... 99.390 approx. 2.413% per annum Low ................... 99.355 Equivalent rate of discount approx. 2.552% per annum (6 percent of the am ount bid for a t the low price was accepted) Federal Reserve District Total Applied fo r Boston ....................... .... $ 30,116,000 New Y o r k ................. .... 1,652,177,000 Philadelphia ............. 35,585,000 Cleveland ................. 63,253,000 Richmond ................. 12,387,000 35,768,000 257,940,000 St. Louis ................... 26,181,000 Minneapolis ............. 13,412,000 Kansas City ............. 48,908,000 50,903,000. San Francisco ......... 91,848,000 T o ta l ...................... .... $2,318,478,000 Total Accepted $ 19,646,000 1,040,887,000 20,585,000 61,373,000 12,387,000 35,768,000 197,180,000 26,181,000 13,412,000 48,908,000 33,623,000 ,, 90,908,000 $1,600,858,000 35 P IM P O R T A N T — I f y o u d esire to bid on a c o 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 om p etitiv e B id .” I f y o u desire to b id o n a n o n co m p etitive 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 headed " N o n co m p e titiv e B id .” DO N O T fill in b o th paragraphs on one fo r m . A separate ten d er m u st b e u sed f o r ea c h bid, e x c ep t th a t b an k s su b m ittin g bids on a c o m p e titiv e basis f o r th e ir o w n and th e ir cu sto m ers’ acco u n ts m a y su b m it one ten d er f o r th e t o ta l a m o u n t b id a t ea ch p rice, p ro v id ed a list 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 cc o u n t, an d m ethod o f p aym en t. Form s fo r th is purpose w ill be fu rn ish ed u p on req u est. N o_____________ TENDER FOR 9 1-DAY TREASURY BILLS D a te d J u ly 5, 1956 To M a tu rin g O ctob er 4 , 1956 Dated a t ...... F ederal R eserve B a n k o f N e w Y o r k , Fiscal A gent of the U nited States. .1956 C O M P E T IT IV E BID N O N C O M P E T IT IV E B ID Pursuant to the provisions of Treasury Department Circular No. 418, Revised, and to the provisions of the public notice on June 28, 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 June 28, 1956, as issued by the T reasury Department, the undersigned offers a noncompetitive tender undersigned offers ........................................* for a for a total amount of $......................................... .— (K ate p er 100) total amount of $............... —.................. (m aturity value) of the T reasury 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 : (N o t to e x ceed $200,000) amounting t o .......................$ ----------------------------- (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 t o ........................$----------------------------- □ □ 0 By surrender of m aturing Treasury bills By cash or other immediately available funds By cash or other immediately available funds *Pricc must be expressed on the basis o f 100, with not more than three decimal places, fo r example, 99.925. The T reasury bills for which tender is hereby made are to be dated July 5, 1956, and are to mature on October 4, 1956. This tender will be inserted in special envelope marked “Tender fo r Treasury Bills.” Name of Bidder (P le a se p r in t) B y ........... (O fficial s ig n a tu r e req u ired ) (T itle ) Street Address (C ity , T o w n o r V illa g e , P . O. N o., a n d S ta te ) If this tender is subm itted by a bank for the account of a custom er, indicate the customer’s name on line below: (N a m e o f C u sto m er) (C ity , T o w n o r V illa g e , P. O. N o., a n d S ta te ) IM P O R T A N T IN S T R U C T IO N S : 1. No 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 making 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 that he has been so authorized. If the tender is made by a partnership, it should be signed by a inem ber of the firm, who should sign in the form “........................................................................................... a copartnership, by ........................................................................................... . a member of the firm.” 3. T enders will be received w ithout deposit from incorporated banks and trust 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 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 ' Treasury, 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 r e a su ry T a x and Loan A c c o u n t w ill n o t be p e rm itte d . http://fraser.stlouisfed.org/ T B N T BBank — 1357-a Federal Reserve of St. Louis ( over)