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FED ERA L R ESER V E BANK O F NEW YORK Fiscal Agent of the United States [ Cirjuiyrn °i95646] Offering of $ 1 ,6 0 0 ,0 0 0 ,0 0 0 of 91-Day Treasury B ills Dated July 19, 1956 Maturing October 18, 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 : 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, July 12, 1956. TREA SU R Y D E PA R T M E N T W ashington T he T reasury Departm 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 Ju ly 19, 1956, in the am ount of $1,599,963,000, to be issued on a discount basis under competitive and noncom petitive bidding as hereinafter provided. The bills of this series will be dated Ju ly 19, 1956, and will m ature O ctober 18, 1956, when the face am ount will be payable without 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 time, Monday, July 16, 1956. Tenders will n o t be received a t the T reasury D epartm ent, 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 th at 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 fo r 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 o r tru st company. Im m ediately after the closing hour, tenders will be opened a t 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 decimals) of accepted competitive bids. Settlem ent for accepted tenders in accordance with the bids m ust be made or completed at the Federal Reserve Bank on July 19, 1956, in cash or other immediately available funds or in a like face am ount of T reasury bills m aturing July 19, 1956. Cash and exchange tenders will receive equal treatm ent. Cash adjustm ents will be m ade for differences between the p ar value of m aturing bills accepted in exchange an d the issue price of th e 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 n ot 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 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. F o r purposes of taxation the am ount of discount at which T reasury bills are originally sold by the U nited States is considered to be interest. Under Sections 454(b) and 1221(5) of the Internal Revenue Code of 1954 the am ount of discount a t 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 ow ner 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 redem ption a t 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 16, 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 w ritten 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 m ust be made in cash or other immediately available fu n d s or in maturing Treasury bills. W i l l i a m F. T r e i b e r , F irst Vice President. Results of last offering of T reasu ry bills (91-day bills dated Ju ly 12, 1956, m atu rin g O ctober 11, 1956) Total applied for ...$2,687,885,000 T otal accepted ........ $1,601,125,000 (includes $294,647,000 entered on a noncompetitive basis and accepted in full at the average price shown below) Average price . . . 99.397 Equivalent rate of discount approx. 2.387% per annum Range of accepted competitive bids: (excepting two tenders totaling $275,000) Equivalent rate of discount H igh ................ 99.410 approx. 2.334% per annum Equivalent rate of discount Low ................ 99.396 approx. 2.389% per annum (67 percent of the am ount bid for at the low price was accepted) Federal Reserve District Boston ...................... New Y ork ................ Philadelphia ............ Cleveland ................ Richmond ................ A tlanta ...................... Chicago .................... St. Louis .................. Minneapolis ............ K ansas City ............ Dallas ........................ San Francisco ........ T otal ........ Total Applied fo r $ 36.031,000 1,851,675,000 35,716,000 66,502,000 16,322,000 58,816,000 285,025,000 37,636,000 28,422,000 51,212,000 62,794,000 157,734,000 Total Accepted $ 25,531,000 1,038,724,000 16,752,000 52,491,000 13,392,000 55,312,000 166,289,000 26,092,000 14,958,000 36,141,000 28,069,000 127,374,000 $2,687,885,000 $1,601,125,000 ( over ) 35 R IM P O R T A N T — I f y o u desire to b id 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 bid on 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 h ead ed " N o n co 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 er m u st be u sed fo r ea ch b id , ex 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 a n d th e ir cu sto m ers’ a cc o u n ts m a y su b m it on e ten d er fo 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 lis t is a tta c h e d sh o w in g th e n am 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 e n t. Form s f o r th is p urpose w ill be fu rn ish ed u p on req u est. No............................ TENDER FOR 9 1 -DAY TREASURY BILLS M a tu rin g O cto b er 18, 1956 D ated J u ly 1 9 , 1956 To F ed era l R eserv e B a n k of N ew Y Dated at ork, 1956 Fiscal A gent of the U nited States. COM PETITIVE BED P ursuant to the provisions of T reasury Departm ent Circular No. 418, Revised, and to the provisions of the public notice on July 12, 1956, as issued by the T reasury Department, the undersigned o f f e r s .........................................* for a (R ate per 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 m ent therefor to be made at your Bank, on the date stated in the public notice, as indicated below : N O N C O M P E T IT IV E B ID P ursuant to the provisions of T reasury D epartm ent Circular No. 418, Revised, and to the provisions of the public notice on July 12, 1956, as issued by the T reasury Department, the undersigned offers a noncompetitive tender for a total amount of $ ............................................... (N o t to exceed $200,000) By surrender of m aturing T reasury bills (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 T reasury bills amounting to ................... $------------------------------- amounting to ................... $____________________ □ □ □ By cash or 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, for example, 99.925. The T reasury bills for which tender is hereby made are to be dated July 19, 1956, and are to mature on October 18, 1956. T his tender will be inserted in special envelope marked “Tender fo r Treasury Bills.” N am e of Bidder .......................................... (P lease p rin t) By. (Official sig n atu re required) (T id e ) Street A ddress (C ity, Tow n or V illage, P . O . N o., and State) I f this tender is subm itted by a bank for th e account of a custom er, indicate the custom er’s nam e on line below: (N am e o f Custom er) (C ity, T ow n or V illage, P . O . N o., an d State) 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 m ake 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 mem 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, th e tender may be disregarded. P a y m e n t b y c r e 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 . T E N T B — 1359-a (OVER)
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